Explaining Southern California's economy

The New Yorker says that AEG's Philip Anschutz owns LA

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AEG

Thanks to LAObserved for pointing to this summary of Connie Bruck's big profile of Philip Anschutz and AEG, in the current issue of The New Yorker. The title says it all: "The Man Who Owns L.A." And for the man who owns LA, it's all about getting an NFL team to betray its current fans and commit to the Southland:

Anschutz, who lives in Denver, is intensely private and does little to publicize his ownership of A.E.G. or any of his other business activities. [AEG President Tim] Leiweke wants to create what he calls “the final piece of the puzzle for L.A. Live”: an N.F.L. stadium, to be built adjacent to Staples Center. With a deployable roof, the stadium is intended to house—in addition to football games and Super Bowls—concerts, international soccer games, wrestling and boxing matches, N.C.A.A. Final Fours, and major religious gatherings. Los Angeles has not had an N.F.L. team since 1995, when the Rams and the Raiders, tired of playing in antiquated stadiums, left the city. Leiweke began his campaign last February, with a lavish public event to announce a deal he had made with the Farmers Insurance Company: in exchange for a reported seven hundred million dollars over thirty years, the planned stadium would be named Farmers Field. It was the largest naming-rights deal in sports. The next step will be the most challenging. Anschutz has pledged to spend more than a billion dollars to build the stadium, but he and Leiweke must reach a deal both with the N.F.L. and with one or two teams to move to L.A.

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Unemployment crisis: More jobs means more networking

LinkedIn Corp.'s IPO Awaited On Wall Street

Justin Sullivan/Getty Images

I went on "The Patt Morrison Show" today, joining Heidi Shierholz of the Economic Policy Institute to discuss the good December 2011 jobs report from the Bureau of Labor Statistics. We spent some time talking about how to go about looking for a job, in industry where there's hiring happening — such as sales and technology. 

Networking is essential. But you have a lot of networking options these days. You probably don't want to neglect any of them. Good old-fashioned "pressing the flesh," making sure you talk to friends and professional contacts, still makes sense. But taking advantage of social networking can also connect job-seekers with employers.

LinkedIn — the business-oriented social network that staged an IPO in 2011 — has become an extremely useful in this respect. It's optimized to present candidates to HR folks who like to see references, resumes, and take a gander at the kinds of connections that prospective employees have developed.

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Barnes & Noble Nook: That other tablet — and a $1 billion business

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orb9220/Flickr Creative Commons

As I and others have argued, there is no tablet market — there's an Apple iPad market. That said, the Amazon Kindle Fire has come on strong, suggesting that there may be room for an iPad competitor at lower price points (the Kindle Fire sells for $199). We know that consumers will go ga-ga over a cheap tablet that as designed to compete with the iPad. This is why the HP Touchpad found life at $99 and why the BlackBerry PlayBook may gain users if it goes on sale for around the same price. But these were tablets that were envisioned as $500 iPad killers. Who wouldn't want one at a monster discount?

Then there's Barnes & Noble's Nook. There are several models, but the Kindle Fire/iPad competitor (in as much as the iPad can really have a competitor) is the Nook Tablet, priced at $250. Here's where things get interesting. B&N is talking about spinning the Nook off as it's own company. And as DealBook reports, Nook Inc. could be worth almost $1 billion:

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Wine Report: Red wine may prevent cancer in women

KPCC's Stephanie O'Neill reported today in a new study that suggests moderate red wine consumption may reduce the risk of breat cancer for women. This finding contests previous research that indicated alcohol raised women's cancer risk.

I've actually been watching the back-and-forth over the health benefits of moderate wine consumption for more than decade now. I'm very glad to see that real science is being focused on the issue. But I also strongly (and unscientifically) believe that one of the best things about drinking wine is that it creates a context for reduced stress.

Yes, there may be compounds in wine that lead to better health. But wine also compels people to stop, relax, sip, mellow out, spend time with friends. This gets even better when wine is consumed with food at meals. The idea is that you unplug for a while and concentrate on the human-ness of being human.

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California's 'structural deficit': What does it mean?

California Gov. Jerry Brown released his 2012 budget plan yesterday. It contains a lot of numbers, but one set of them is especially important: the size of the "structural deficit." The 2011-12 fiscal year is projected to end up $4.1 million the red. If there are no new taxes or cuts to spending in 2012-13, as Brown has proposed, the shortfall is expected to be $5.1 million. That makes the total deficit for 2012-13 $9.2 billion. 

The chart above shows what this looks like over time. 

So what exactly is a structural deficit? Basically, it's the deficit you can't escape. Here's a snappy defintion, from DaveManuel.com:

In a structural deficit, things are so out of balance that a country (or state, or municipality, etc.) will post a deficit regardless of how well the economy is doing. In a strong economy, revenues (tax receipts, etc) rise due to increased economic activity (more jobs, more spending, etc). With a structural deficit, the strength of the economy is irrelevant - a deficit will be posted regardless.. 

How do countries get rid of structural deficits? 

1. Cut spending. 

2. Raise revenues (usually through tax increases). 

Neither of these options are too appealing for politicians, which is why many structural deficits continue to linger. 

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