Effingham CEO

Posted by Bob Schultz at 5/11/2010 12:01 PM
Categories: uncategorized
I will be blogging on an intermittent basis for the next two weeks.  Please keep checking back.

Last night I had the pleasure of attending the Effingham CEO (Creating Entrepreneurial Opportunities) Trade Show.  This innovative class, comprised of high school juniors and seniors from 6 county high schools, meets every weekday from 7:30 - 9:00 am.  The class is devoted to providing a host of enriching entrepreneurial experiences and education for the students. 

The trade fair offered the students the opportunity to showcase some of the businesses they were starting.  It was an impressive array of ideas.  One student figured out that he could purchase high end guitars, at retail prices, and sell off the parts (online) while making a tidy profit!  Another has designed an innovative product for the footwear industry. One young man has started a firm in which he can reproduce cds for musical artists.  His technology allows him to produce just a single cd for minimal costs.  Thus he carries little inventory of completed cds. He represents an Australian band that has an international following.  The young entrepreneur can produce single cds (with cover art) and ship anywhere in the world.  His US location allows him to do order fulfillment for a cheaper price than the Australian band can do it themselves.  He went live just five days ago, and already has seven orders!  Other bands are contacting him.

Finally, a young entepreneuer is one that has contributed items for the Republican Reporter.  Justin Stock is a senior at Effingham High School.  He's started a twice-a-month newsletter on financial and political topics.  His most recent issue is fascinating.  
He explores, in depth, the "unknown recession".  It is the economic collapse that gripped the US in 1920. 
The recession of 1920, in economic terms, was almost as bad as the Great Depression.  It was far worse than our current recession. 

                                    1920 Recession            2008 Recession
   GNP                            Fell by 24%                        Fell by 2.9%
    Unemployment        12%                                    10.1%


Justin's thoughtful analysis shows precisely what our federal government did to get out of the economic downturn.  
        1. They lowered taxes
        2. They slashed government spending by 65%!
            That's right, they cut the federal budget by more than half.

The results were incredible.  In a little over a year, the country was, once again, enjoying economic prosperity.  

Ironic that with reduced government spending and lower taxes, economic recovery occurred in less than 12 months in the 1920's.  Just 10 years later, FDR, ignoring economic history, fought off the Great Depression by raising taxes and increasing government spending.   The economy remained stagnant for 10 more years. 

Clearly a valuable lesson to be learned here.  But I suspect that the liberal historians would prefer to ignore this clear example of success.

Justin writes great stuff.  A subscription is only $24/year.  I strongly encourage you to get his report.  It's something you won't find anyplace else.  You can get your subscription at j.stock.07@gmail.com.  I'm a proud subscriber!

 
 

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