Tag: USC Marshall

The Key to JFK’s Leadership: Inspiration

WARREN BENNIS, USC Leadership Institute, USC Marshall School of Business.

This op-ed originally appeared at CNN on Nov. 21

I vividly recall those 13 days in the fall of 1962, watching President John F. Kennedy on our black and white television in Cambridge, Massachusetts. I was a professor at MIT focusing on the emerging field of leadership studies, and the Cuban Missile Crisis was about leadership writ large for the world to witness.

Fifty years after the Kennedy assassination, there is conversation everywhere about JFK’s unrealized potential. Amid the wave of sentimental reflection this year, there has been much focus on the mythical elements of Camelot or too many details about that tragic day in Dallas, and not enough on the real-world challenges of the JFK presidency.

Property Owners Get a New Legal Weapon

ROBERT BRIDGES, clinical professor of finance and business economics, USC’s Marshall School of Business

This op-ed originally appeared at Forbes on July 2.

Nearly unnoticed among the marquee decisions by this year’s Supreme Court session is Koontz v. St. John’s Water Management District. The decision granted the plaintiff the right to sue a governmental agency that required a payment – or ‘exaction’ – for public facilities miles away from his property as a contingency for approval of a building permit.

The headlines the morning after the decision heralded the ‘bolstering of property rights,’ but it’s doubly ironic that the integrity of rights in real property have been so badly eroded that it would take an act by the highest court of the land to simply grant the right of an individual to challenge a clearly confiscatory act, and that other forms of exactions – unforced, implied, or provided voluntarily – are an unfortunate but normal part of today’s real estate development process.

Deconstructing the Sandy Relief Numbers

LARRY HARRIS, professor of finance, USC’s Marshall School of Business.

This op-ed originally appeared in the Wall Street Journal on Jan. 11.

President Obama asked Congress for $61 billion for various relief programs following Hurricane Sandy. The Senate approved the full request late last month, but so far the House has approved just $9.7 billion, for flood-insurance claims. The House will soon vote on the remaining $51 billion in proposed aid.

Sandy was an unusually large storm that did substantial damage to the Eastern Seaboard. More than eight million people lost power and perhaps as many as 100,000 were left homeless. Thousands of buildings were destroyed or damaged along the coastline from Maryland to Maine.

Many people don’t appreciate how large these numbers are, in particular the size of the proposed relief. Consider some simple comparisons. The $61 billion aid package represents:

L.A.’s Future Economic Engine: Silicon Beach

LUCY HOOD, executive director of the Institute of Communication Technology Management, USC’s Marshall School of Business.

This op-ed originally appeared in the Los Angeles Times on Jan. 9.

What’s the future of L.A.’s economy? That’s a question that should be at the center of this year’s mayoral campaign. Key to that discussion should be recognition that Los Angeles, despite all its economic problems, is an increasingly prominent home to the next generation of technology companies that will drive the digital revolution in the 21st century.

Los Angeles’ tech awakening is unfolding in a slice of territory — dubbed “Silicon Beach,” which initially referred to Venice and Santa Monica and then expanded to Hollywood and downtown — where established giants such as Google and Apple have opened offices and where some 500 newcomer ventures have taken root. Silicon Beach culture, unlike Silicon Valley’s, is more consumer-oriented, drawing on art, entertainment and commerce to explore the intersections between technology and gaming, fashion, advertising and video.

A Housing Recovery That Leaves the Middle Class on the Sidelines

ROBERT BRIDGES, assistant professor clinical finance, business economics, USC’s Marshall School of Business.

This op-ed originally appeared at Forbes.

It would seem that a government seeking to display a true populist streak by helping its citizens buy houses would do so in a way to ensure prices as low as possible. For those who are not yet homeowners, how is it populism when recovery makes houses more expensive rather than more affordable?

For some time now, demand for houses has been artificially boosted by federal and state tax policies, rising governmental involvement in residential-debt financing, and persistently low interest rates orchestrated by the Federal Reserve. This intensified demand has not been relieved by sufficient new supply of houses, resulting in intractable upward pricing pressure that has put home-ownership beyond the reach of growing numbers of moderate-income buyers. Future housing markets are likely to be increasingly vulnerable to destructive price swings if credit-fueled demand and no-growth sentiment continue to flourish.

How to Save the Euro: A Little More Inflation in Germany, Please

ARIS PROTOPAPADAKIS, professor of business and finance, USC Marshall School of Business.

This op-ed originally appeared at the Huffington Post.

Euro zone leaders’ latest plan to rescue the euro, agreed to late last month, focuses on two crises: the continent’s ailing banks and the sovereign-debt woes of Europe’s southern peripheral economies. Unfortunately, their blueprint neglects a third crisis that continues to grow and could bring down the euro zone: Greece, Ireland, Italy, Portugal and Spain are becoming increasingly uncompetitive economically relative to Germany.

Most economists agree that renewed economic growth is essential for saving the euro. The problem is that the effects of measures such as creating a banking union, the centerpiece of the recent summit’s rescue plan, may save the banking system but will do nothing to reverse the loss of competitiveness among the region’s economies. The euro zone can’t wait much longer, as the steadily rising borrowing costs of Spain and Italy demonstrate. It needs to start growing now, and the fastest and surest way to stimulate growth without increasing deficits is for Germany to accept a much looser monetary policy and the consequent higher inflation to help restore the competitiveness of Europe’s peripheral economies.

Should We Punish Inside Traders?

LARRY HARRIS, professor of finance and business economics: “Most people believe that insider trading is simply unfair. … But what seems cut and dried to the public is a more nuanced issue to market experts, economists and legal scholars. Their…

The Smartphone Revolution: The Great Equalizer

LUCY HOOD, executive director, Institute for Communication Technology Management, USC Marshall School of Business: “Federal regulators weighing the proposed AT&T and T-Mobile merger must not ignore a significant but quietly unfolding revolution in how Americans connect to the Internet for…