A day in the life: microfinance

While I thoroughly enjoy the more hands-on, humanitarian work, I'm a bean-counter. That's the main reason that I'm here. I count beans.

Nonetheless, I do try to have an impact in other ways. One of the things that's fascinated me for a while is microfinance. So when I arrived, that was one of the topics I kept asking about. Does it work? Can we do it?

Unfortunately, while there are some great organizations, such as Kiva and Oxfam, it's a very difficult form of aid to both:

1) provide in a needs-based manner; and
2) properly track and review performance.

Heck, it's difficult to do this in the USA where most of our financial transactions are automated. But much of the world -- particularly where a $25 microloan has a great impact -- has virtually nonexistent automated financial services. And although that's rapidly changing due to improvements in technology, such as cellphone banking, it's still a major hurdle to microloans for many.

Nonetheless, on Friday I was fortunate to help this lady and her daughter in a small way. More specifically, her benefactor in the US helped her with some money to start / expand a business... and also helped a young man with repairs to his motorbike that he uses as a taxi service here in town. And while I'm not getting into the details, I will followup to ensure that the money was spent on the reason for which it was granted.

Again, I'm not getting into great detail on this. And it was a gift, not a loan. But that's the reality of microfinance. While it can work well, it's so incredibly time-consuming... at times it's simpler to offer a gift, then simply followup to make sure the money is getting used properly... rather than reviewing financial records and requiring reimbursement.

From my perspective, the key issue is ensuring the money is used properly and to better someone for a lifetime.

For more on microfinance, see here.

And here's a picture of the mother and daughter who intend to start / expand the family business with some newfound financing:

Tim White

Paul Krugman: This is not a recovery

Paul Krugman opines on Ben Bernanke's possible Friday comments:

But we can safely predict what he and other officials will say about where we are right now: that the economy is continuing to recover, albeit more slowly than they would like. Unfortunately, that’s not true: this isn’t a recovery, in any sense that matters.

Krugman continues:

...policy makers are in denial.

After its last monetary policy meeting, the Fed released a statement declaring that it “anticipates a gradual return to higher levels of resource utilization” — Fedspeak for falling unemployment. Nothing in the data supports that kind of optimism. Meanwhile, Tim Geithner, the Treasury secretary, says that “we’re on the road to recovery.” No, we aren’t.

I disagree with the Nobel-winning economist on the patient's treatment. But I fully agree with his diagnosis.

Tim White

129 layoffs coming at Pratt & Whitney

From the MRJ:

Jet engine maker Pratt & Whitney will lay off 129 hourly workers at the company's Cheshire engine repair plant. The job cuts are needed, the company said, because there is not enough work....

The International Association of Machinists, which represents the workers, questioned the job cuts, saying in a prepared statement that hourly workers have been putting in 10-hour days, instead of the usual 8-hour shifts, and have been asked to come in on Saturdays.

And here's an interesting Daily Kos youtube clip on America's recent jobs trend:



Tim White

Krugman: America's Third Depression

From his Sunday NYTimes editorial, Paul Krugman writes:

Recessions are common; depressions are rare. As far as I can tell, there were only two eras in economic history that were widely described as “depressions” at the time: the years of deflation and instability that followed the Panic of 1873 and the years of mass unemployment that followed the financial crisis of 1929-31.

Neither the Long Depression of the 19th century nor the Great Depression of the 20th was an era of nonstop decline — on the contrary, both included periods when the economy grew. But these episodes of improvement were never enough to undo the damage from the initial slump, and were followed by relapses.

We are now, I fear, in the early stages of a third depression. It will probably look more like the Long Depression than the much more severe Great Depression. But the cost — to the world economy and, above all, to the millions of lives blighted by the absence of jobs — will nonetheless be immense.

I disagree with his prescribed medicine -- that more government spending is the right policy -- but his diagnosis is fair.

Tim White

CT Mirror: A job posting and Murphy's dilemma

If you're looking for work as a reporter, the CT Mirror is hiring for coverage in both education and healthcare.

And speaking of the CT Mirror, Deirdre Shesgreen recently reported for them on a quandary facing Chris Murphy:

During a recent meeting with labor leaders, Rep. Chris Murphy was pressed by the head of an influental teachers' union to support a $23 billion education rescue package pending in Congress...

Murphy was sympathetic to the teachers' concerns, but he didn't make any promises. After all, he's also under pressure from another constituency: voters in his 5th District who are worried about runaway federal spending and spiraling deficits.

"I've got cities in my district about to lay off 135 teachers-New Britain, for example-and class sizes could balloon to 40 kids per class," Murphy said in an interview Wednesday. "At the same time, I represent a very fiscally conservative district, and I'm reluctant to support additional funding that's not paid for."

If Chris votes for the proposed spending, I hope he upholds his 2007 "pay-go" promise and cuts elsewhere... maybe he could start with all the war funding?

Tim White

Zentek Farms expands to West Main Street

The MRJs Jesse Buchanan reports:

Joseph Zentek, son of Zentek Farms owner Paul Zentek is running the flower stand on 831 W. Main St. formerly called Johnny Jacaruso's Flower Stand.

Paul Zentek said he bought the stand in January to give his son a chance at running a business - with family help - and getting another retail outlet.

Tim White

Rite Aid development moving forward

From the NHRs Luther Turmelle:

A Middletown developer has taken out a $4.4 million loan with Liberty Bank so it can begin building a nearly 15,000-square-foot drugstore at West Main Street, Maple Avenue and Main Street.

Tim White

Everybody's not for sale

Someone started a rumor that Irv Morris is selling Everybody's, but his attorney denied it.

I find it difficult to believe he wants to sell it. He does fun stuff, such as the Christmas party. To organize and fund events like that says to me that he really loves it... and wouldn't want to sell it.

Tim White

EDC - Focus Group Meeting - Retailers & Restaurants

I got an update from David Schrumm about an October 13 Economic Development Commission meeting. I found it to be interesting reading.

Everyone present discussed how the economy is affecting his or her business. Some businesses have seen the effects now for over 2 years and other are just starting to feel the pinch. The businesses represented today range from 2 years in existence to 35 years +.

Some of the representatives talked about how quantity is taking a priority over quality of products and services in this difficult economy. Also discussed was the impact that overhead costs have on businesses. With health care rates rising 20%, minimum wage increasing at a steady level, taxes increasing in addition to material price increases, businesses are suffering.

A common theme discussed during the meeting was how special Cheshire is and how it should be highlighted to draw in people from other communities to come and spend some time exploring the town. Cheshire should be a destination to go to and spend a day shopping, dining, apple picking, etc.

Some suggestions to attract people to the current gems in Cheshire were: highlighting a business or businesses on the Town web site, adding some signs along the Linear Trail to alert visitors to other “destinations” in Cheshire, create a special “shop & dine in Cheshire week”, create a business to business coupon “trade off” that would highlight another local business at your business for a week, and vice versa or a progressive business to business night that could help to get people into a business they may not have visited before.

A few of the representatives talked about the need to expand the stores and restaurants in Cheshire to help attract people to Town, similarly to what Southington has down with their downtown area. Others expressed concern that the proposal by W/S Development for a large shopping center on the north end of town would wipe out their business.

A topic that many of the businesses represented today were interested in was how to do business with the Town government departments, notably the schools. Also, all present expressed a desire for the Town to think hard about imposing higher taxes on businesses, especially since many of these local business owners live in Town. Anything that can be done to reduce the tax burden on local businesses would be helpful and greatly appreciated.

Tim White

An idea for a New Year's resolution

The more things change... the more they stay the same.



Go Bernie Sanders!

In one sign of the times, I've had more people ask me about job leads in 2009 than I had in my previous five years on the Council. Thankfully though, most people still had something... they just aren't making enough.

Tim White

Cheshire Chamber Annual Meeting - Jan 14

Gaffey on the State of CT and the economy

The MRJ ran this opinion piece by State Senator Tom Gaffey. Senator Gaffey is presently serving his eighth term representing residents of the 13th District, which includes Cheshire, Meriden, Middlefield and Middletown. Here is an excerpt:

For twenty years Connecticut has experienced zero job growth. Numerous recent business stories confirm and quantify what is self-evident throughout Connecticut: economic recovery remains elusive and many residents are reeling after layoffs and laggardly job growth. New jobless claims continue to outpace new job creation.

The fallout from this threatens stability in our cities and towns. The state's official unemployment rate has climbed to 8.8 percent, less than the 10.2 percent national average but distressing nevertheless. Delinquent mortgages and foreclosures in our state hover near 7 percent, again less than the national average, but still the high water mark over the past 30 years.

It is obviously time to do things differently.

I wonder if Senator Gaffey wants to eliminate some of the bonding he champions Under the Gold Dome?

Tim White

NHR editorial on Pratt & Whitney plant closing

From the NHRs editor:

The decision by Pratt & Whitney to close two state plants and throw some 1,000 workers onto the unemployment lines only adds to the pain of a recession in which Connecticut has already lost 79,100 jobs. With decisions such as Pratt’s, economists project a loss of some 100,000 state jobs before Connecticut’s job numbers start to grow again.

I think we need to improve the business climate in CT. Just last week, Forbes ranked CT 35th (among the 50 states) for doing business. That included a rank of 45 for business costs.

Tim White

Machinists union suing Pratt & Whitney

From the AP:

The Machinists union asked a federal judge Tuesday to block Pratt & Whitney from moving 1,000 jobs from Connecticut, accusing the jet engine maker of negotiating in bad faith.

The International Association of Machinists said in court papers filed in U.S. District Court in Hartford that Pratt & Whitney executives failed to make "every reasonable effort" to preserve the jet engine repair jobs in Connecticut.

The subsidiary of United Technologies Corp. announced Monday it will shut its Cheshire plant by early 2011 and shift some operations from its East Hartford facility beginning in the second quarter of next year. Work will be moved to Columbus, Ga., Singapore and Japan.

Tim White

Pratt & Whitney leaving Cheshire by early 2011

Early this afternoon the Town Council was notified by the TM that Pratt & Whitney would be leaving Cheshire by early 2011. I'm sure there'll be plenty of press reports, but here's one troubling fact that P&W included in their "fact sheet:"

ISSUE #3: REMAINING VIABLE IN A HIGH-COST/HIGH-WAGE STATE

Current shop costs at the Cheshire Engine Center are approximately 40 percent higher than the Columbus Engine Center in Georgia. Current shop costs at CARO are about 40 percent higher than Japan Turbine Technologies and 170 percent higher than Turbine Overhaul Services in Singapore.

Since I started knocking on doors back in 2001, I've heard a steady drumbeat from small business owners that they can't afford to keep their shops open in CT. To me, this closure takes this discussion to a whole new level.

Tim White

A review for Craig Houghton's Nutmeg Muse Photography

A fellow Cheshire blogger, Craig Houghton, has gotten the first review of his wedding photography business.

Tim White

Cheshire's award-winning spice: Salemme Pepper

While knocking on doors this weekend, I learned that Cheshire is home to the winner of the 2008 Hot Pepper Award. The Executive Spice President:even gave me a taste test of the Salemme Pepper Co's award-winning spice.

I like it.

Tim White

CT offers $100 million tax incentive to UTC

From the NHR:

Gov. M. Jodi Rell offered $100 million in incentives Thursday to jet engine maker Pratt & Whitney to prevent the possible loss of about 1,000 jobs.

The five-year plan includes lifting a cap on tax credits for parent corporation United Technologies Corp., providing training assistance, establishing a job retention tax credit, making investments in machinery and equipment and building an Engineering Center for Excellence for engineers at Pratt & Whitney and other aerospace companies.

Tim White

WSJ: Is commercial real estate the next crisis?

Don't expect the mall anytime soon.

Tim White

Action Sports is closing

The NHRs Luther Turmelle reported that Action Sports (in the Richlin's / Staples plaza) is closing:

Action Sports has been in town since 1992, but the recession has forced owner Paul von Maffei to close the South Main Street store in order to keep his Branford and Old Saybrook locations open.

“We were not even breaking even there and it had been that way since last winter,” von Maffei said.

Luther also reports that the consignment shop is relocating to the same plaza - where CVS used to be.

Tim White