Business & Entrepreneurship

The School of Law’s 12th annual Public Interest Law & Policy Speakers Series continues Jan. 20 with the Dr. Martin Luther King Jr. Commemorative Lecture featuring John Payton, J.D., the director of the NAACP’s Legal Defense and Education Fund.

Steve Fazzari What will generate the growth necessary to put many of the unemployed back to work again?  That’s the question economist Steve Fazzari is asking as we move past the first recession of the 21st century.  “In the deep downturns of the 1970’s and early ’80’s, strong consumer spending growth led to strong recoveries. Unfortunately, I just don’t see that happening this time”  says Fazzari.  Includes video interview.

Banks and borrowers went on a leveraged consumption binge that led to the financial crisis in 2008 according to Anjan Thakor. And the entire economy is still feeling the hangover pain from the credit-fueled party that caused bank failures and forced foreclosures across the country. Thakor’s new research examines the cycles of leveraged borrowing by banks and consumers as a possible cause of the crisis. His new theory of ‘infectious leverage’ could help prevent future financial meltdowns.

Fed Chairman Ben Bernanke coined the phrase “the Great Moderation” back in 2004 to refer to the relative stability of the U.S. economy over the previous two decades. Many believe “The Great Recession” of the past two years has jolted the economy out of its moderate mode and back into a state of high volatility. Washington University in St. Louis economist James Morley disagrees. He argues the Great Moderation is alive and well and will help the economy recovery from this latest financial shock.

Olin Business School is taking its executive education programs on the road and due west on I-70. Destination: Kansas City. Senior faculty will offer the same top-ranked seminars and the 20-month Executive MBA degree program to Kansas City-based professionals as those offered on the St. Louis campus. Olin’s executive MBA program was established in 1983 and has been offered in conjunction with Fudan University in Shanghai, China since 2002. 

An international gathering of business executives will don caps and gowns for their graduation ceremony at the Olin Business School. Strobe Talbott, president of the Brookings Institution will deliver the keynote speech.

Human guinea pigs do their homework before volunteering for high-paying clinical trials. New research shows that people equate large payments for participation in medical research with increased levels of risk. And when they perceive studies to be risky, potential participants spend more time learning about the risks and nature of the study. Findings published this month in Social Science and Medicine, suggest there is a “mismatch” between current research guidelines for setting compensation levels and the assumptions participants make about the levels of pay and risk.

A record number of aspiring entrepreneurs entered 45 ideas for new ventures in the annual Olin Cup business plan competition this fall. As the race toward $75,000 in seed money enters its last stage, seven finalists are crunching numbers and honing their plans for the crucial final presentation to judges in January.

Seven entrepreneurs enter the final round of the Olin Cup business plan competition this month as they vie for $75,000 in seed money. Ken Harrington, managing director of the Skandalaris Center, co-sponsor of the Olin Cup, emceed the recent “Elevator Pitch” event where 17 semi-finalists had two minutes each to present their business plans. The teams presented privately in front of 16 judges, then presented publicly in front of an audience. Harrington said, “the judges, audience, and I were very impressed with the quality of this year’s pitches and ideas. We look forward to the next phase in the competition and seeing their full business plans.” Winners will be announced in February. Video report on the competition included.

GM releases its first quarterly results post-bankruptcy on Nov. 16. U.S. auto sales in October equaled an annualized rate of 10 million vehicles. That’s a steep drop from the 17 million cars sold each year from 1991-2007. Not even a robust recovery from the recession is expected to boost sales near previous highs. Bailouts, bankruptcies and cash for clunkers have helped keep the industry afloat this year. Yet, the reality of too many factories and workers remains as demand continues to dip. Supply chain expert Panos Kouvelis says auto makers need to keep the brakes on production and proceed with caution. Video available.