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Unemployment still above 8%, Small Biz Tax Cut Act could help

Although unemployment numbers show signs of improving, in order to fall below the 8.0 percent barrier, more than just a weak spring of hiring could be necessary, but in an election year, it is unlikely the nation will see much action on the Hill.

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Unemployment making slight improvements

As a measure of the pace of layoffs, the number of people applying for unemployment benefits slid slightly last week by 1,000, according to the U.S. Labor Department who also reports that the four week average experienced its first decline since late March, marking a drop of 5,250 applications which many believe is a less volatile indicator than the weekly numbers.

When applications for unemployment benefits stay below 375,000 consistently, the implication is that job growth is strong enough to lower the unemployment rate, which has dropped a full percentage since August, but unemployment for April sits at 8.1 percent, still unable to break the 8.0 percent barrier.

This winter saw improvements in hiring, and the weak April has some worried that the gains from previous months may be lost as hiring remains weak this spring.

The Small Business Tax Cut Act

Representative Joe Bonner (R-AL) opined1, “Even as President Obama continues to push questionable government spending as the cure for an anemic job market, the House of Representatives has prescribed a robust treatment targeted to stimulate the country’s principal employers, small businesses. On April 19, the House passed the Small Business Tax Cut Act – the latest in more than two dozen bills also passed by the House since January 2011 to spur job growth.”

Rep. Bonner added, “Small businesses are the heart and soul of America’s economy — they are everywhere and form the backbone of our local communities. Collectively, they represent 99.9 percent of the country’s 28 million businesses and employ half of all private sector employees. Small businesses with less than 500 workers created 65 percent of all new jobs in America during the last 17 years.”

Concluding, Rep. Bonner said, “The Republican House’s latest effort to restore small business confidence is the passage of a 20 percent tax cut for businesses with fewer than 500 employees. The Small Business Tax Cut Act, which I supported, allows employers of less than 500 workers to take a tax deduction equal to 20 percent of their active business income.”

Job openings at four year high

Business Week reports2that the number of open job positions in America grew by 172,000 in April to 3.74 million, the most since July 2008, and that small companies were more optimistic on their outlook. BW notes that “more vacancies are a sign American companies were planning to expand at the end of the first quarter, undaunted by the jump in fuel costs or concerns that global economic growth will slow.”

Economist Lou Crandall told BW that the pickup is a “positive” development after a report last week showed payrolls in April grew at the slowest pace in six months.

“Businesses were becoming a bit more willing to commit to new hires,” Crandall told BW. “The progress is incremental at best and the levels are still very low.”

1 Rep. Bonner’s statement
2 Business Week report

Marti Trewe reports on business and technology news, chasing his passion for helping entrepreneurs and small businesses to stay well informed in the fast paced 140-character world. Marti rarely sleeps and thrives on reader news tips, especially about startups and big moves in leadership.

Business News

Supreme Court okays trademarking for ‘generic’ name URLs

(BUSINESS NEWS) Generic name trademarks have helped to stave off monopolies of broad products and services, but the Supreme Court just ruled that generic company names like Booking.com, can now be trademarked.

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generic trademark

For years, The United States Patent and Trademark Office has denied rights to names termed as “generic.” This was previously used to prevent generic terms from monopolizing a section of the market. It has prevented many companies from doing that as well.

However, as we move into the 21st century we begin to see things that may not be so cut and dry. As usual life gets messy and things are far more grey than they previously have been.

Recently, the US Supreme Court ruled that website names are eligible for a change to the previous trademark rules. The website that pushed for this privilege first, Booking.com that is owned by Booking Holdings Inc., argued that they needed this ruling to stop consumers from following copycats down a rabbit hole and away from their business.

The decision, heavily weighted at 8-1, gives Booking.com, nationwide legal protection against competing companies trademarks.

A remark released later by Justice Ruth Bader Ginsburg and the Supreme Court states, “We have no cause to deny Booking.com the same benefits Congress accorded other marks qualifying as nongeneric.” An argument quoted from the decision continues as since, “‘Booking.com’ is not a generic name to consumers, it is not generic.”

This stance, taken by the majority, exemplifies a firm position on the rights of the individual companies’ abilities to identify themselves as they see fit.

The lone dissenting vote coming from Justice Stephen Breyer who argued that he fears that this decision “will lead to a proliferation of ‘generic.com’ marks, granting their owners a monopoly over a zone of useful, easy-to-remember domains.”

Honestly, if you can’t come up with your own domain that either incorporates, but doesn’t copy, or gets your point across without being too generic, you may need to hire a PR person.

This move forward from the Supreme Court opens up a lot of possibilities for people to be creative with their businesses. If generic and simple names will be the norm, then people will have to think outside the box in the future. Bring on the challenges.

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Business News

New company beats Amazon with next morning delivery?

(BUSINESS NEWS) Amazon has a new competitor in South Korea: Coupang, with faster shipping than Prime.

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delivery services

What if I told you Amazon Prime’s, 1-3 day guaranteed delivery time isn’t the fastest e-commerce service the world has to offer? You would think I’m lying right?

Coupang, one of the world’s fastest delivery services located in South Korea, allows you to order any item, anytime before midnight, promising that it will be at your doorstep by 7am! (I wasn’t lying!) With 70% of its employees living within a 10 minute radius of a Coupang center, 80% of residents residing in populated cities and 95% of it’s population owning a smartphone, South Korea has become the perfect e-commerce epicenter. Coupang employees over 10,000 people who together deliver 99.3% of all orders within 24 hours. Imagine it’s Tuesday night, you’re falling asleep and suddenly remember you forgot to get your wife a present for her 50th birthday tomorrow. You have two options: accept your fate of being put in the dog house for three long weeks, or quickly order a few great items off Coupang’s website that’ll be delivered BEFORE she even wakes up!

Like Amazon, Coupang allows its customers to create a profile, store desired products in a list, and check out using your saved payment method. Half of South Korea’s total population of 51.6 million has installed Coupang’s app with a surge of people trying Coupang for the first time during stay at home orders due to the Coronavirus pandemic. The company struggled to meet fulfillment demands, especially those including PPE, household cleaning products, and children’s necessities. While many companies are struggling to stay afloat, Coupang is quickly adapting to meet consumer demands. In March, the company opened a new logistics center to expand its overnight/same day delivery services and is currently working to reach an even broader population.

Believe it or not, right before Coupang received a $2 Billion investment from SoftBanks, its founder, Kim Bom debated walking away from it all. Bom founded the company in 2010, receiving the investment in 2018 and is expected to pursue an IPO by the end of 2020. So for all of you entrepreneurs wondering if you should give up on that decade long dream…DON’T. Coupang went from selling a few hundred items each day to 3.3 million. Now that’s what you call entrepreneurism!

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Business News

Google plans to pay publishers for content (a little too late)?

(BUSINESS NEWS) Google will finally pay publishers for news, but only a few, and they have to meet Google standards.

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google, bad

I mean…could you get any greedier Google? (Chandler Bings voice).

After years and years of pressure and complaints from publishers that Google’s search feed doesn’t properly recognize them or the news they work so hard to report, Google has finally announced that they will begin to pay publishers for content. But only some.

WHAT A LOAD OF BS.

According to the News Media Alliance, Google profited 4.7 BILLION in 2019 as a search engine for the news industry. So now, not only is Google fleecing its content providers and the writers who are working to create material for them, but it’s quite likely that Google’s algorithm is pushing paid news to the top of its search feed. What does this mean for users? It means that for one, you will see what they want you to see, but most importantly, it means that Google HAS the money to pay its publishers but chooses not too!

Google’s announcement to start paying publishers excludes all publishers outside Brazil, Germany, and Australia. Even within the countries that Google closed a deal with, there are many that do not meet its “high quality content” requirement for a paid position. The problem with all this nonsense is that we stopped letting the news come from others like us, and instead, according to the U.S News Media Alliance, the news is entirely owned by a handful of companies. You may have 635 channels on your TV, but if you google…or maybe you should duck duck go it, you’ll find that all those channels lead back to one huge organization.

SO WHAT THE HELL IS GOING ON?

Google has definitely been pressured to make some big changes, and while paying publishers is a good first step in the right direction, is it enough to make up for years of damage?

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