| A.
R. Kakhsaz Company
an accountancy corporation
Member
American Institute of
Certified Public Accountants
International associates:
Tavana & Co.
Chartered Accountants
Toronto, Canada
Tel.416-229-2221
|
IN A TIGHT JOB
MARKET, employers swap expensive labor with lower-paid workers.
The approach is legal, doesn't eliminate the position but rather the
high-paid person in it. The technique is specially attractive to
service businesses. On that "Bloody Wednesday," recently,
at Circuit City stores 3,900 highly paid sales people, faulted simply for
making too much money, were replaced with 2,100 lower-paid workers.
With the unemployment rate at 6.4%, the highest since 1994, a wide range
of workers from well-educated professionals to young unskilled laborers,
scramble for employment.
SAME-SEX MARRIAGES ARE NOW LEGAL IN Belgium, Holland and Canada.
DEFLATION is the phenomenon of a sustained period
of falling prices. In recent years, deflation ravaged Japan,
plunging the second largest economy after the U.S. into 13 years of
slump. Now it is beginning to bite into the German economy, the
world's third largest. The U.S. is also feared for being headed for
deflation. Both U.S. and German officials are playing down the risks
of deflation, perhaps out of fear that the problem could become
self-fulfilling. And those who admit a risk, promise deflation won't
be as pronounced as in Japan. Alan Greenspan says the chance of
deflation in the U.S. is small. But he says that the consequences of
deflation are so dangerous that the Fed will do all it can to prevent
it. And the president of the German central bank says: "Mild
deflation id fairly likely to take hold in Germany." What to
do? Hold on to cash. Cash is king during deflationary
times.
FOR MORE OF theGeneralists,
visit our Website at ARKCPA.COM
THE RISK OF DEFLATION OUTWEIGHTS THAT OF inflation, said the
Federal Reserve Board in June, when it cut the federal funds rate by a
quarter point to 1%, the lowest in 45 years. The stock market didn't
react positively as it had already priced in an expected half a point cut.
THE TOP FIVE STATE ECONOMIES
based on the year 2001: (a) Gross state product, in
trillions of dollars, as a (b) Percentage of total U.S. gross
domestic product:
|
(a) |
(b) |
|
| California |
1.36 |
13.4 |
% |
| New York |
.83 |
8.2 |
|
| Texas |
.76 |
7.5 |
|
| Florida |
.49 |
4.8 |
|
| Illinois |
.48 |
4.7 |
|
|
COMMERCIAL DIALYSIS CENTERS have an 8% higher risk of
kidney-failure deaths than non-profit ones. Financial
pressures is being blamed as the reason.
IMPATIENCE: "Waiting in a hurry."
theGeneralist, a one-page monthly
publication of the accounting firm of A. R. Kakhsaz Company,
is in its ninth year of providing information, presented fairly and
accurately, from sources we can depend upon and trust.
THE UNITED STATES is experiencing the most protracted
job-market downturn since the Great Depression. A remarkably
wide range of workers are unemployed. From young to old, and
from high-school dropouts to the highly educated. And that's
even as the economy has started growing again. Since March
2001, when the recession began, the U.S. economy has lost 2.1
million jobs. The total number of people unemployed, including
discouraged workers who would prefer to work but have stopped
looking, is 9.2 million. And the number of people who are
working part time because they can't find full-time work is 4.8
million, up 46% since 2001. Why? Intensifying
competition from abroad, slow growth at home and relentless push for
productivity are believed to be the main reasons . Since the
fourth quarter of 2001, the U.S. gross domestic product has expanded
at an average annual rate of 2.7% but the productivity of the
nation's work force has expended at a much faster rate of
4.2%. Such a mismatch is unprecedented.
TAX DEDUCTIBLE ? YES: Any expediture for
which the primary purpose is to find a job is tax deductible.
That includes travel and entertainment, business gifts, printing and
sending resumes, employment agency fees, and the like.
Nondeductible is clothing, like a suit. Also if you're
changing professions, no job-search expenses are deductible.
24-HOUR COVERAGE OF SUMMER OLYMPICS: NBC will show 807
hours of the 17-day long Olympicson five networks: NBC, CNBC, MSNBC
and Bravo and the Spanish-language Telemundo network. NBC has
the U.S. television rights to the 2004, 2006 and 2008
Olympics.
-
WE SEE
MORE IN NUMBERS than just numbers…
Ali R. Kakhsaz, CPA, MAcc
www.arkpca.com
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