Strome Business Minute With Dr. Jeff Tanner

Virginia is one of the laxest states when it comes to payday loans, according to a recent Pew Research report. The report examined the effects of such loans and found that one in eight Virginians have a vehicle repossessed every year, one of the highest rates in the country. And four out of five repossessed vehicles are sold because the owner can’t afford to reclaim them. Virginia’s small loan laws are among the weakest in the country, with no limit on interest rates, which leads to three times the interest charged in other states. Other states like Ohio and Colorado have more stringent laws, reducing borrowers’ costs and protecting consumers who are unable to save sufficient amounts must borrow small amounts when emergencies arise.

Consumers, like it or not, make choices based on CEOs. Recently, a school rejected a free lunch from Chick-fil-A because of the owner’s anti-LGBT stance. The company has tried to stay out of the fray over the owner’s conservative values, but the reality is the company is privately-held and reflects the owner’s values. But does a public company deserve consumer backlash? Public company Papa John’s lost sales over its founder’s racist comments. Dick’s Sporting Goods CEO ordered the removal of assault-style weapons from stores, destroying over five million dollars in inventory rather than allow someone else to sell them. Sales declined two hundred and fifty million dollars afterward as some consumers protested the move. Like it or not, consumers do make choices based on CEO actions.

The Regional Greenhouse Gas Initiative, or RGGI, generated $315,000,000 last year for 9 states from Maryland north to reduce greenhouse-gas emissions and fund resiliency. Companies purchase carbon allowances to offset their CO2 emissions and decide how to meet a regionally set cap. Quarterly auction proceeds return to the states. Joining RGGI could generate $50,000,000 annually for Virginia, money that could be used for developing clean energy while reducing greenhouse gases. Governor Northam has listed joining RGGI as a top priority for the 2020 General Assembly. Funds generated by it could be used to spur investment in offshore wind, helping Virginia become the East Coast hub for offshore wind production.

Costco is building a chicken processing plant to keep the cost of their rotisserie chicken to four ninety nine. Such a move is called vertical integration. Jeff Tanner, Dean of the Strome College of Business at Old Dominion University, explains.

Virginia Business magazine reports that consumer goods company SRP is consolidating its distribution centers from Oklahoma, Philadelphia, and Utah to Virginia Beach.

Jeff Tanner, Dean of the Strome College of Business at Old Dominion University, explains selling shares.

The UAW strike at GM is said to be costing the company 90 million dollars per day, but that's not the only strike. The BAE Radford Army Ammunition Plant here in Virginia is locked in a labor negotiation over jobs.

Virginia Business dot com reports that CEO’s of Virginia’s 40 largest companies enjoyed a 12.5 percent raise in earnings in 2018, averaging just over 8 million dollars in total compensation, including bonuses and stock options.

You may have seen that the ship that skims plastic out of the ocean finally seems to work after a number of engineering changes. That's good news, but now what do we do with all of that plastic?

Dollar Tree is planning to hire 25,000 temporary workers for the holiday shopping season nationwide, according to Bloomberg News. Sounds like a lot, but not when you realize that’s less than 2 people per store as the company has over 15,000 stores.

GOBankingRates released a report showing 5 cities in Hampton Roads with higher than average rates of underwater mortgages. A mortgage is said to be underwater when the value of the home falls below the amount still owed on it.

Johnson and Johnson made the raw opium used in opioid manufacture, and there are over 2,000 lawsuits regarding the epidemic with more being added. Last week, the company agreed to pay 20.4 million dollars to two counties in Ohio.

Hemp is the plant that provides CBD oil, which is being touted as the new wonder supplement. Hemp is in the top 20 farm products produced in Virginia. But up to now, hemp farmers cannot buy insurance.

California's new law allowing amateur athletes to retain their amateur status, while receiving financial benefits from the use of their name and image, is shaking the foundation of the NCAA.

Hampton Roads has finally begun to enjoy the type of economic growth that others have following the great recession.