INCOME INEQUALITY VERSUS PROSPERITY—DEFINING OUR FOCUS

By: Dr. Lynn Reaser

It has been nearly three years since the “Great Recession” officially ended, but many Americans are gripped by a sense of malaise.  Unemployment has eased but is still high.  Recent attention has also focused on the gap between the rich and the poor.  Some are asking the question:  “Is income inequality a threat to our prosperity?”

While the frustration of those asking the question is understandable, the answer is “no”.  America’s core values do embrace equal opportunities, but this does not imply equal outcomes.  Some will work harder than others, incur greater risks with new ideas and businesses, or just possess greater talents than others that will be rewarded.

A company where everyone is paid the same regardless of how well they perform would certainly give little incentive to be one’s best.  Taking such a model nationwide would be a recipe for mediocrity not prosperity.

America does need to do a better job in lifting the incomes of the poor by improving a woefully inadequate education system.  That should be the focus, not dissuading those who would strive for excellence. 

A Bittersweet Goodbye from the FBEI

As graduation arrives in a mere 3 days, I have spoken to many undergraduate and MBA students who are experiencing a strange mixture of joy at their accomplishments but also anxiety, concern and fear. Certainly, they enter into this next chapter of their lives in a challenging business, economic, and political era, but the source of this anxiety is something much more personal and touching.

Many conversations with graduating students have focused on the great relationship built up over these past years in school, either at our lovely ocean front campus or at Mission Valley. The rhythm and routine of the certainty created by an academic schedule is now being replaced, and often with something far less certain. For some, it means a move away and the knowledge that we will see each other again only if circumstances allow.

The first year I sat as a faculty member in graduation, I was profoundly moved by watching the festivities around me but even more so by the embraces, photos, and introductions to families and friends who were there to celebrate a great accomplishment. Those are great memories and for those whom I stay in contact with, across many industries and parts of the world, these relationships have grown even deeper. Ultimately, graduation proves to be a very bittersweet experience for us all.

So to all of our pending graduates I say to each of you ‘well done!’ Finish strong in these final days and know that many of us are praying, supporting, and hoping the best for you both now and in the future.

Sincerely,
Randy Ataide
Executive Director

Cathy Gallagher – Director
Commencement truly is a bittersweet moment for us as we have been blessed to get to know many of you in different settings and on varying levels. We are so excited at what the future has in store for each of you, yet saddened by the thought that life may somehow get in the way of continuing the relationship we have worked so hard to build. Please know nothing give us greater joy at the FBEI then when we reconnect with our alums, whether it be a week, month, or year after they graduate. We want to maintain contact with you, have coffee, lunch, take a moment to catch up on what is going in your life, and celebrate accomplishments with you. We want you coming back to give a bit of yourself, share your experiences with those who are following behind you, and provide connections within your own network, or tap back into our network. So as you go on your way, wherever life is taking you beyond PLNU, take a moment to look over your shoulder now and again and say hello to those who remember you, brag about you, pray for you, and wish you well.

Lynn Reaser – PLNU Chief Economist
You are entering a world that holds both unprecedented opportunities and challenges.  Stay true to your values and you will never go astray.  Strive for excellence and work for a better world.  We are extremely proud of you.  Stay in touch and know that we will be here for you.

Dieter Mauerman – Economic Research Assistant
We are proud of each of you. In your future careers make the most of each opportunity you are presented with.  Don’t be afraid to go against the norm and be yourself.  Relationships made in school are often times the most rewarding, so come visit us and don’t forget to stay in touch.

Emily Gallentine – Manager
Over the past year as Manager of the FBEI, I have gotten the sincere pleasure of walking with many of you through opportunities, successes, trials, stresses, fears, and professional growth. At the FBEI, we get the distinct joy of completely understanding what our business partners mean when they say to us, “There’s just something about those PLNU students.” “That something” they are speaking of will take you far in life. We are proud of you and are honored to know you. Although this time is bittersweet for us all, we continue to be your biggest fans and will be here to support you today and in the future. Best of luck and congratulations PLNU Class of 2012!

Another Shock to the World Economy

by Dr. Lynn Reaser

Fears over the Middle East, oil prices, European sovereign debt, and China’s efforts to slow its economy were already weighing on the global economy.  Japan’s 8.9 earthquake has delivered another potential blow.

The devastation to lives and property has been alarming from Japan’s worst earthquake on record.  The destruction of productive capacity and infrastructure together with the disruption of economic activity will hit the economy’s real gross domestic product (GDP) hard in the short-run.  However, a process of massive rebuilding should shortly ensue that will be highly stimulative.  These efforts should arrest some of the deflation threat that the country has been trying to reverse.

The experience of the 1995 Kobe 7.2 earthquake, which killed 6,400 people, is instructive.  Industrial production fell sharply in January, the month of the earthquake, but then bounced back in February and March.  Significantly more industrial activity was concentrated in Kobe, than in the epicenter of the recent earthquake that is largely rural along the northern Pacific coast.

The 2011 earthquake has disrupted supply chains of such industries as autos and semiconductors.  The biggest economic risk at this juncture involves the extent of damage to the area’s nuclear facilities.  Energy supply dislocations could cause power brown-outs in Tokyo.

Re-insurance firms will incur significant obligations and losses.  At the same time, they are likely to boost rates, implementing a strategy already contemplated following the recent earthquake in New Zealand.

Japan’s central bank has moved to inject large amounts of liquidity to the economy to insure that firms have access to credit.  The federal government will also pass a supplemental budget to include rebuilding funds that are expected to be actively deployed in the second half of the year.

World economic growth is likely to see minimal impact over two to three quarters of time.  Interest rates could be slightly higher in the second half of 2011 as economic activity accelerates and Japan’s debt burden rises from the 200% of GDP already existing.

The Japanese yen will move higher in the short-run, as insurance firms sell assets to pay claims and foreign assistance money flows into the country.  The shut-off of some of Japan’s nuclear generating capacity will increase the country’s demand and importation of diesel fuel and liquefied natural gas (LNG).  Overall commodity prices are likely to see little impact as the solid trend of global growth continues.

Japan’s tragedy should remind us of the unexpected risks we continually face.  It also should help us appreciate the resilience of a nation’s individuals and the generosity of people around the world to help those in need.

Walking on Water Fundraiser Banquet!

Former professional surfer Bryan Jennings graduated from PLNU in 1998 and has since founded and become the executive director of Walking on Water Ministry (W.O.W.).  Bryan was also one of the 2010 Alumnus of PLNU Award recipients highlighted in the most recent issue of the Viewpoint!

Now  Bryan wants to extend an invitation to the PLNU community for an upcoming fundraiser dinner on Friday, November 12 at 6:30 pm. This fundraiser is complimentary and there is no obligation whatsoever to give financially. Bryan mainly just wants to raise awareness of his ministry and increase prayer support.

This is a great opportunity to go out and support PLNU alumni out in the community so be sure not to miss this event!!

The Most Important Thing in Business

By Randy Ataide

This will be an unusual blog post.

I just returned last night from several days at the National Association for Business Economics (NABE) annual meeting, where our very own Lynn Reaser presided over the four day event in her role as the outgoing President of this most prestigious organization. I was joined by Cathy Gallagher, Jose Munoz and Dieter Mauerman in our foray to Denver very early Saturday morning, and this was the third major NABE event I had attended. And it was there on Monday afternoon that the most important thing in business was made clear to me once again.

What is it like to rub shoulders with the economists and executives of the leading companies in the world including Google, Ford Motor, DuPont and FedEx? What about hearing first hand on government policy from the highest leaders of the Federal Reserve and the National Economic Council? Certainly, the counsel of Nobel and Pulitzer Prize winners is of supreme importance, correct? This seems like the ideal place to draw deeply from the incredible depth, experience and wisdom that is present at such functions. Right?

Well, not exactly. In many ways, I was inspired by what I heard from these people and many more. There are formidable challenges and issues facing all of us, and these are not mere academic exercises as was made clear by many presentations and discussions. Understanding economics, even on a basic level of supply, demand and the fundamental economic and policy forces, choices and decisions that are at play in all economies affect every person every day on the earth, and those to come after us. The need for economic literacy is more important than ever.

But what about the most important thing in business? Stated simply, it is about people, and finding, listening to, learning from and to use a biblical word, “imitating” people of quality. I say frequently in my classes at both the undergraduate and MBA level or in my public speaking that “You need to hang around smart people.” This is simply saying that based upon my own experience, observation and career, the role of mentoring is foundational. But this applies to not only the college undergraduate trying to make his or her way into a difficult job market, or the aspiring entrepreneur. It applies to all of us regardless of our career status, professional achievements and financial success. And while smart is important, when one finds smart and character in a mentor or role model, one is doubly blessed.

Yesterday during the NABE Presidential Address Luncheon, the four of us and hundreds of others sat and listened to Lynn give her perspective on the topic of what is permanent and what is transitional in the “New Economic Reality.” In her presentation we observed once again her extraordinary capacity to explain economics in a way, which in my opinion, is reserved to a few people in the world. It was interesting, understandable, timely and presented in such a way that the readers were engaged and inspired. What a gift PLNU, the FBEI, our students, faculty, staff, alumni and stakeholders have in Lynn!

But when the official “changing of the guard” came during the Luncheon, and NABE incoming President Richard Wobbekind of the University of Colorado came to the microphone to speak of Lynn and her qualifications, capacity and superb leadership of the NABE at a critical moment in its history, spearheading key initiatives to improve the relevancy, voice and membership of NABE, his voice cracked. In front of a silent room of the leaders of global economics, Richard spoke with an emotional voice of not only of these efforts of Lynn but also on her humility, grace, dignity, strength of character and other attributes that touched him so very deeply this past year.  Cathy, Jose, Dieter and I sat silently in agreement and inside knowledge, smiling as we knew what Richard was sharing was what we see in her every day, and have the supreme privilege of working with one of the most incredible people any of us have ever met.

So the people we meet of great character and capacity is really the most important thing in business. It is timeless and transcends organizations, eras and the ordinary measures of success or failure. I was reminded of the blessing we have of the choice of PLNU as where Dr. Lynn Reaser has chosen to work, and the positive impact she is making on many hundreds of people. Lynn, on behalf of all of us, thank-you for the privilege of working with you!

Brand YOU: How to Rise Above the Rest

Learn how to stand out as a well defined brand by taking control of how other people view you!

Fermanian Business & Economic Institute
presents

A Professional Development Event

BRAND YOU
Rising Above the Rest

Monday, October 18, 2010
Burnham Event Plaza, Fermanian Boardroom & Conference Center

6:00 p.m. – 8:00 p.m.
Dinner and Panel Discussion
  
RSVP HERE

 Panelists

Leah Swearingen, APR
Swearingen Communications

Jill Eastman
Real Estate Broker
Magnus Realty Group, Inc

Rachel Segina
Recruiting Coordinator
Moss Adams LLC

Dave Wegmann
Director, Open Systems
Northrop Grumman

Entrepreneur Enrichment Program (EEP) Expo

Fermanian School of Business & Conference Center presents

Entrepreneur Enrichment Program Expo

Wednesday, October 6th, 2010

5:30 P.M. – 8:30 P.M.

Seating is limited. Please RSVP to courtneyhamad@pointloma.edu.

The Entrepreneur Enrichment Program (“EEP”) seeks to encourage, stimulate and nourish the entrepreneurial process in any full or part-time student and in all academic disciplines at PLNU by providing specific personal, business and professional counsel for student-entrepreneurs’ business plans from recognized industry leaders, entrepreneurs, and financiers.

The following are the presentations and entrepreneurial ideas presented by PLNU undergraduates and MBAS:

Project: Leed Generators

Travis Albaugh, Senior
Managerial Organizational Communications Major

Project: Gourmet Humus

Ivan Arabo, 2nd Year
Master of Business Administration

Michael Riendeau, 2nd Year
Master of Business Administration

Project: The Sports Club

Diana Calderon, Junior
International Development Students Major

Project: Bordertraffic.com

John Cosby, 2nd Year

Master of Business Administration

Project: Hayden’s Clothing

Jeff Davis, 2010 Alum
Business Administration Major

Joe Davis, Junior
Business Administration Major

Project: webdev 2.0

Carl Gardner, 2010 Alum
Business Administration

Project: eHipp

Luke Harmon, Senior
Business Administration Major

Project: Fortegigs.com

Derek Jackson, Senior
Business Administration / Music Major

Project: Out Stories Connected

Maxwell Trzcinski, Senior
Business Administration Major

Point Loma Nazarene University Honors Dealmakers of the Year

(San Diego, Calif. – Sept. 8, 2010) – The Fermanian Business & Economic Institute (FBEI) at Point Loma Nazarene University (PLNU) and title sponsor Solar Turbines are pleased to announce the recipients of the 2010 “Dealmakers of the Year” awards, which honor San Diego individuals and firms that are creating significant long-term value for the region. This year’s event took place on Friday, Sept. 3 at the Sheraton San Diego Hotel & Marina and featured keynote speaker Jim Owens, chairman of Caterpillar Inc.  Special guests included Assemblyman Nathan Fletcher of the 75^th District and RADM (Ret) Len Hering, recipient of the 2008 Individual Dealmaker of the Year award.

The recipient for the individual category was Father Joe Carroll, president of Father Joe’s Villages, for decades of servant leadership in helping the needy in our community through entrepreneurial and strategic initiatives in expanding the social services network in the San Diego region. The other two finalists in the individual category were Chris Crane of EduLeap and Dr. Jay Lichter of Avalon Ventures.

AMSOLAR won for the firm dealmaker of the year for negotiating financing for 20 megawatts of solar installations on school campuses throughout the San Diego region. They work to create partnerships with local school districts to bring affordable solar installations and long-term savings programs for schools. Firm finalists included Archi’s Acres and Neurocrine Biosciences.

High Tech High took home the award for collaboration of the year for fostering a textbook-free, multi-site education model of personalized project learning, and connecting students to local businesses, which has expanded their institution from a single school to a network of eight schools serving 2,500 students. CONNECT and CleanTECH San Diego were the other finalists in this category.

The Business Partner of the Year Award went to Mr. Stephen Bothwell who was honored for his generosity and counsel to the FBEI leadership, most of it done anonymously. Previous recipients have included Joanne Pastula and Marion Paul of Junior Achievement in 2007, Richard Bartell of Bartell Hotels in 2008, and Gary Bleakley of Northwestern Mutual in 2009.

Now in its fourth year, the 2010 event was the largest ever Dealmaker Breakfast. Approximately 500 people were in attendance including more than 250 business professionals representing over 80 companies and 200 PLNU students, as well as many PLNU business faculty, staff and administrative leaders of PLNU.

The director of the FBEI Cathy Gallagher said, “We were excited for such a great turn out from the San Diego business community.  This year’s event exceeded our expectations as it created invaluable networking opportunities for our students as well as gave the broader business community a clearer understanding of the work of the FBEI and the quality of our students at PLNU.”

Earlier this year, the FBEI sponsored a luncheon in Washington, D.C. at the National Association of Business Economics where Jim Owens was the guest speaker. “We had been in dialogue with Mr. Owens after the Washington event and we are very grateful that he chose to come to San Diego and address the business community,” said Gallagher.

Executive director of the FBEI Randy Ataide said, “The nominees this year were exceptional and the advisory board which votes on the nominees obviously felt the same way because results came in as a photo finish for every category.  The strong response of the business community this year underscores the rising value and prominence of the Dealmaker awards.”

In addition to Solar Turbines as title sponsor, gold sponsors included Bartell Hotels, Nielsen Construction, and the San Diego Daily Transcript.  Silver sponsors were CDC Small Business Finance, Lusardi Construction, SPG Solar, San Diego Zoo, Northwestern Mutual Financial Network, and Moss Adams, LLP. Table sponsors included Junior Achievement, San Diego Regional Chamber of Commerce, World Trade Center San Diego, Gatto, Pope, & Walwick, LLP, Duhs Commercial Real Estate, Genlantis, Father Joe’s Villages, Hawthorne Machinery Co., General Dynamics, and the Institute of Real Estate Management.  Additionally, Hawthorne Machinery placed a new Caterpillar loader at the front entrance to the event to greet Mr. Owens and the attendees.

Additional information about the Dealmakers of the Year Business Breakfast is available at www.pointloma.edu/FBEI, or by contacting Ms. Cathy Gallagher at (619) 849-2564 or cathygallagher@pointloma.edu.

# # #

Point Loma Nazarene University is a selective liberal arts university located in San Diego, California, and sits on a 90-acre campus overlooking the Pacific Ocean. In addition to more than 50 undergraduate areas of study, PLNU offers graduate program regional centers in Bakersfield, Arcadia, Mission Valley (San Diego) and the Inland Empire. Founded in 1902, PLNU serves more than 3,500 students.

Technology, Sustainability and Entrepreneurship Dominate Point Loma Nazarene University’s 2010 “Dealmakers of the Year”

FOR IMMEDIATE RELEASE

Contact:
Sharon Ayala
Media Relations
Point Loma Nazarene University
(619) 849-2988
sharonayala@pointloma.edu

Caterpillar, Inc. Chairman Jim Owens to speak at event

(San Diego, Calif. – Aug, 5, 2010) – The Fermanian Business & Economic Institute (FBEI) at Point Loma Nazarene University (PLNU) and title sponsor Solar Turbines are pleased to announce the finalists for the 2010 “Dealmakers of the Year” awards, which honor San Diego individuals and firms that are creating significant long-term value for the region. This year’s event will feature guest speaker Jim Owens, chairman of Caterpillar Inc., on Friday Sept. 3, 2010, from 7:30 to 9:30 a.m. at the Sheraton San Diego Hotel & Marina.  In addition to Solar Turbines as title sponsor, other sponsors include Bartell Hotels, Nielsen Construction, CDC Small Business Finance, Lusardi Construction, SPG Solar, San Diego Zoo, and Northwestern Mutual Financial Network. Table sponsors include Junior Achievement, San Diego Regional Chamber of Commerce, World Trade Center San Diego, and Gatto, Pope, Walwick, LLP.

Nominations were solicited from the general public and a formal nominating committee, including a group of San Diego business leaders, PLNU alumni, and FBEI and Fermanian School of Business faculty and staff.  From approximately 40 total nominations received and reviewed by the committee, three finalists were chosen in each category. 

In mid-August, the nominating committee will submit, by secret ballot, their selection for each category. The winners will be announced on Sept. 3, 2010, at the breakfast. 

Director of the FBEI Cathy Gallagher said, “We are excited to have the opportunity to bring a prominent business leader of Mr. Owens’ stature to the San Diego business community. It’s an honor to have the former CEO of a Fortune 500 company share his thoughts and expertise on finishing strong both domestically and internationally in a challenging economic climate.”

By category, the finalists are:

Individual Dealmakers of the Year

*Father Joe Carroll, president of Father Joe’s Villages, for leadership in strategic initiatives for running and expanding the social services network in San Diego and throughout the Southwest, by effectively managing five corporations, 550 employees, and $200 million worth of properties.

*Chris Crane, founder, president and CEO of EduLeap, for his visionary leadership in the field of entrepreneurship, microfinance and now with EduLeap, spearheading efforts to provide low-cost, high-quality Christian education in the developing world.

*Dr. Jay Lichter, serial entrepreneur, inventor, and managing member of Avalon Ventures, for providing long-term value for San Diego companies in life sciences, wireless communications, and Web 3.0 through the $150 million Avalon fund and additional 35 active companies Avalon has sustained.

Firm Dealmakers of the Year

*AMSOLAR, for negotiating financing for 20 megawatts of solar installations on school campuses averaging $100 million. The first project is a 1.23-megawatt system currently underway at the University of San Diego.

*Archi’s Acres, for providing veterans sustainable training in organic agriculture, grove management, and hydroponic techniques that are energy and water efficient. This program is designed to give veterans an opportunity to transition back into the private sector and employment.

*Neurocrine Biosciences, a San Diego-based biopharmaceutical company, for the continued development and commercialization of innovative products that treat various medical needs. Neurocrine has gained worldwide recognition, resulting in multi-million dollar deals.

The Collaborative Deal of the Year

*CleanTECH, for its successful collaboration of members who seek to accelerate San Diego as a world leader in the clean technology economy, and to stimulate innovation of clean technologies and sustainable industry practices for the economic, environmental and social benefits of the greater San Diego region.

*CONNECT, for the collaborative initiative to serve San Diego, accelerating innovation in the region through various programs and events that offer new sources of capital, assisting to increase the number of new businesses, and providing entrepreneur education.

*High Tech High, for fostering a textbook-free, multi-site education model by personalized project learning, and connecting students to local businesses, which has expanded their institution from a single school to a network of eight schools serving 2,500 students.

Executive Director of the FBEI Randy Ataide said, “We very much appreciate the nominating committees’ dedication, and the individuals and businesses who submitted nominations.  Each nominee is carefully considered and researched by the committee to ensure they meet the criteria and represent the spirit and intent of the Dealmakers of the Year Awards well.”

Additional information about attending or sponsoring the Dealmakers of the Year Business Breakfast is available at www.pointloma.edu/FBEI, or by contacting Ms. Cathy Gallagher at (619) 849-2564 or cathygallagher@pointloma.edu.

# # #

Point Loma Nazarene University is a selective liberal arts university located in San Diego, California, and sits on a 90-acre campus overlooking the Pacific Ocean. In addition to more than 50 undergraduate areas of study, PLNU offers graduate program regional centers in Bakersfield, Arcadia, Mission Valley (San Diego) and the Inland Empire. Founded in 1902, PLNU serves more than 3,500 students.

Executive Development Event: “An Evening With Dr. David Gill”

Last night the MBAs gathered for an evening of good food, conversation, and discussion between Prof Randy Ataide and Dr. David Gill. Gill is an ethics writer and teacher based in Oakland and Berkeley, California.  His vocational mission in life has two foci:  first is “understanding and promoting the values and ethics of Jesus Christ in the life and work of the Christian community” (www.davidwgill.org); second is “building ethically healthy organizations in a complex, diverse, global marketplace” (www.ethixbiz.com). Many of the students were able to purchase his book, It’s About Excellence: Building Ethically Healthy Organizations.

 

MBA Student Leon Shen captured the evening with his video recording on his new iPhone 4. This was shot completely using the phone and editing with iMovie within the phone. Thanks Leon!
http://www.youtube.com/watch?v=kBbypk5Rd5k