Business Briefs – January 11, 2017

World Economic Forum Says Capitalism Needs Urgent Change

LONDON (AP) – Reforming the very nature of capitalism will be needed to combat the growing appeal of populist political movements around the world, the World Economic Forum said Wednesday.

Getting higher economic growth, it added, is necessary but insufficient to heal the fractures in society that were evident in the election of Donald Trump as U.S. president and Britain’s vote to leave the European Union.

In a wide-ranging report from the organizer of the annual gathering of political and business leaders in the Swiss resort of Davos, the WEF identified “rising income and wealth disparity” as potentially the biggest driver in global affairs over the next ten years.

Deficits and Debt Seem Not Atop GOP Priorities These Days

WASHINGTON (AP) – For decades, congressional Republicans have pushed to slash the budget and reduce the size of the federal government, especially during the eight years Democratic President Barack Obama was in office.

Now that Republican President-elect Donald Trump is poised to take charge, deficits and debt have slid down the GOP’s list of priorities.

The first significant piece of legislation under unified Republican rule is a budget measure that, as a prerequisite for a speedy repeal of the Affordable Care Act, endorses deficits adding almost $10 trillion to the debt over the coming decade.

No Wiggle Room: Many Companies Don’t Keep Enough Cash

NEW YORK (AP) – When Rafael Romis started his website design company five years ago, he kept enough cash on hand to last about two weeks. That worked well until the company’s income taxes had to be paid.

Romis, whose company is located in Los Angeles, had to use personal savings to restore Weberous’ cash reserves.

Companies with cash problems often have overestimated how much revenue they’d have and underestimated expenses. It’s especially a problem for new owners. These owners may also not be adequately prepared for the seasonality of their business, or for the slow payment practices of their customers — particularly if the customer is a government.