Posts Tagged ‘University of Chicago’

A Fitting Farewell to 25 Years of Oprah

Tuesday, May 31st, 2011

Twenty-five years in the bat of an eye.  I was fortunate enough to attend the final extravaganza at Chicago’s United Center to bid farewell to “The Oprah Winfrey Show” as it concluded its quarter-century run.  Winfrey’s gala farewell as the “Queen of Talk” was attended by more than 20,000 fans and it was the hottest ticket in town.

Aside from the growth of Oprah’s Harpo Studios and her creation of the Oprah Winfrey Network, Chicago has reaped countless economic benefits from her presence. Writing in Illinois Issues, John Carpenter says that “Most seem to agree that the surrounding West Loop neighborhood has developed to the point that the loss of the show won’t hurt too much.  And Harpo Studios will still be in business there, taping other shows.  As for the city as a whole, the loss will be more psychological and hard to define.”  Lee Bey, executive director of the Chicago Area Central Committee and a former deputy chief of staff to former Mayor Richard M. Daley, agrees.  “The three things people talk about when you travel and tell them you are from Chicago are Michael Jordan, Mayor Daley and Oprah,” he said.

According to Carpenter, “More directly in Chicago, though, Oprah brings people here. There is no definitive study of how much economic activity the ‘Oprah Winfrey Show’ creates in Chicago.  But even a very simple, decidedly inexpert look at the numbers shows the impact to be significant.  Oprah tapes 140 shows in Chicago every year, with a studio audience of 325 for each one. ‘Oprah Winfrey Show’ spokesperson Jamie Goss estimates that about two-thirds of audience members are traveling to Chicago from out of town.  That means about 30,000 tourists every year, coming to see the show. Figure that each one is staying in a hotel — or at least sharing a hotel room — eating a few meals, riding a few cabs and hitting a few stores, and the dollars spent by show attendees quickly passes $15 million.”  Additionally, Harpo Studios currently employs 400 people.

By establishing her Harpo Studios in Chicago’s West Loop, Oprah led the revitalization of a down-on-its-heels section of town that today is home to dozens of Chicago’s hippest clubs, restaurants and art galleries.  University of Chicago economist Charlie Wheelan believes that the yearly impact of Harpo is easily in the millions.  “At bottom, the most significant thing that Oprah did was to produce a show that people wanted to watch more than they wanted to do anything else for that hour that it was on.  So at the end of the day, that’s the supreme accomplishment here and she did it for decades.  That’s an enormous economic value,” Wheelan said.

Additionally. Oprah is a long-time Chicago philanthropist and helped fund downtown Chicago’s Millennium Park, a Michigan Avenue showpiece. Oprah donated $1 million dollars to build the park, but that’s just a fraction of her largesse.  The exact figures for Oprah’s philanthropic impact in Chicago are impossible to pin down, but one person with some insight – is former Mayor Daley, who said “In so many different ways she’s given.  Also quiet ways that no one really knows about.  She doesn’t have to have great accolades about this.  She just does it.”

The gala evening was full of surprise celebrity appearances, musical acts, and moving video montages of the Oprah show through the years.  Hosted by Tom Hanks and Will Smith, Oprah was guided through numerous tributes to her work at the Oprah show as well as her charitable work around the world.  The show was heartfelt and sincere and surprisingly spiritual. Highlights include Stevie Wonder singing “Isn’t She Lovely” and Jerry Seinfeld’s stand-up routine on the male perspective on “The Oprah Winfrey Show.”  Rosie O’Donnell, who will be recording at Oprah’s Harpo Studio, presented a chorus-line song and dance routine along with Dr. Phil, Nate Berkus, Dr. Laura and Dr. Oz.  Oprah was visibly moved by the appearance of 400 Morehouse College graduates who received scholarships from Oprah when they stood on stage to thank her for helping them.  It was announced the Morehouse alums had established a scholarship fund of $300,000 Maya Angelou read a poem she wrote for Oprah while Alicia Keys accompanied her on the piano.  The show ended with Aretha Franklin singing a soul-stirring rendition of “Amazing Grace” and hip-hop artist Usher leading everyone back on-stage for gospel classic “Oh Happy Day”.

Employees Are Saying “I Quit” Again

Monday, June 28th, 2010

Workers say “I quit”; a sign that the economy is improving.  Two short words are being heard in offices that have been absent for some time.  The words are:  “I quit.”   In the last three months, more Americans have quit their jobs than were laid off, a sharp contrast with the last few years that points to a gradually thawing jobs market. Although some of the quitters have accepted new jobs when they resign, others have no firm offers except for a new-found confidence that they will be able to find employment quickly.  “There is a century’s worth of evidence that bears out this view that quits rise and layoffs fall as the job market improves,” said Steven Davis, a University of Chicago economist.

Long-term trends point to a job market that can only improve.  Already this year, the economy has created a net 982,000 jobs following a recession that wiped out more than eight million jobs.  According to the federal government, the number of people who quit their jobs in April rose to nearly two million, the most in more than a year and a 12 percent increase over January.  Workers were afraid to quit during the darkest months of the recession, and with good reason.  Jobs were in short supply; others feared facing layoff because of the “last hired, first fired” principle.

Fear kept many people in their jobs, according to David Adams, vice president of training at Adecco, a national staffing firm, who says that his firm had trouble recruiting people for open jobs during the recession.  Now, Adams is seeing more people who have jobs looking to interview versus laid-off workers searching for employment.  “The hangover is over.  It’s really starting to move toward a market where the employee can have a lot more confidence making a move.”

Residential Sector Delivers Positive News

Tuesday, May 18th, 2010

Residential market recovery appears to be steady as she goes.  The latest numbers on housing starts, new home sales and rising prices indicate that the residential recovery is for real.  Because the housing crash was a primary cause of the Great Recession, word that the sector is rebounding is good news.  Housing permits and starts have increased in the last several months, and new house sales increased in March.

Even though the Case-Shiller home price index showed mixed numbers for January and February, there was better news found in a recent government report on the producer price index for single-family residential construction through March.  This measure of the average change in the cost of materials for new home construction has risen three percent since last summer.  Economists are interested in the producer price index because it is a critical factor in the pricing of existing homes.  Inflation hawks may claim that this statistic is a portent of rising prices in the general economy.

According to Casey B. Mulligan, an economist at the University of Chicago, a little inflation is not a bad thing for housing.  “It’s quite possible that inflation-adjusted housing prices will not significantly increase, but even if a housing price increase resulted merely from general inflation, it would be welcome because anything that raises housing prices can help alleviate the extraordinary prevalence of foreclosures that derives largely from the fact that debt-strapped homeowners can no longer sell their homes for enough to cover their mortgage,” Mulligan said.

Bernanke Edges Closer to Closing the Cash Floodgates

Wednesday, February 17th, 2010

The Fed needs to start paying its own bills from the financial bailout.  Federal Reserve Chairman Ben Bernanke is starting to look at ways to back off from the central bank’s heroic efforts to keep the nation’s economy afloat through the financial crisis of the past 18 months. The trick to raising short-term interest rates, which have been at historic lows for more than a year, is to time them with extraordinary precision to avoid new damage to the still-fragile economy.

At present, the Fed has $2.29 trillion on its balance sheets, an increase from the $934 billion reported in September, 2008, when the financial crisis was at its worst. Bernanke plans to sell some of the Fed’s mortgages, Treasuries and debt by offering reverse repurchasing agreements.  Under these arrangements, the Fed sells its securities to a third party while agreeing to re-buy them at some point in the future.

The Fed’s next step is to sell banks and financial firms the equivalent of certificates of deposit.  In these cases, the Fed gets a portion of the bank’s reserves in exchange for paying interest at a fixed rate.  Called a “term deposit facility,” these deposits would be auctioned off and banks couldn’t count their investment in the Fed as cash or reserves.

“These programs, which imposed no cost on the taxpayer, were a critical part of the government’s efforts to stabilize the financial system and restart the flow of credit,” Bernanke said in testimony at a Capitol Hill hearing.  “As financial conditions have improved, the Federal Reserve has substantially phased out these lending programs.”