By John Temple LigonLess than projected

The budget deficit for the 2004 fiscal year ending September 30 came to “just” $413 billion. February’s projection was $521 billion, so we came out $108 billion cheaper than forecast. Considerably more is $413 billion, more than last year’s deficit of $377 billion, but $413 billion is only 3.6% of the gross domestic product (GDP). Even though we have just achieved a record deficit in dollar terms, over 20 years ago in 1983 we had a deficit of 6% of GDP, the all–time percentage record.

More than projected

The August trade gap, the monthly difference in the US between imports and exports, was predicted to be a deficit of $51.5 billion. It came in at $54 billion. We exported $96 billion, and we imported $150 billion.

Japan, on one hand

Japan’s trade surplus hit over $13 billion in August with exports of almost $42 billion.

China, on the other hand

For the second year in a row, China was the world’s favorite investment destination last year. The US was second both years behind China, and India was third last year. Since 2000, when the US was first and $1.4 trillion crossed borders worldwide for capital spending, mergers, and acquisitions, the money flow has been declining. Last year, foreign direct investment fell to $565 billion.

Sonoco gives $3 million

Hartsville’s Sonoco last week gave USC’s Moore School of Business $3 million for its international business department which is set to be named in honor of Sonoco.

Five for $600,000/year or $300/hour

Charles Austin, city manager, and his four assistant city managers total $600,000 in annual salaries. Assuming a 40–hour work week with 50 weeks on the job for the year, these five sit through city council meetings at a cost of $300 an hour plus fringe benefits and general overhead. Don’t complain. By all accounts, they’re worth it. Besides, there is always a lawyer in the audience who alone charges $300 an hour.

Pensions

SC has just short of $26 billion in its state employee pension fund, and by a 1998 law 40% of the money can be at risk in equities – invested in the stock market, in other words. In 2002, the SC pension plan was reportedly the only one in the US that turned a profit. In California they have $166 billion in their state pension fund called Calpers. A group of news organizations sued Calpers in state court last month to disclose the management and advisory fees – assumed to be as much as $500 million – paid to private equity and hedge funds and other alternative investments. As SC gets more adventuresome and shoots for higher returns, expect similar shenanigans here. Follow the money.

Benedict makes The Wall Street Journal

On the editorial page of Monday’s Wall Street Journal , Benedict College was singled out for its social promotions in higher education. Benedict President David Swinton calls the program Success Equals Effort, or SEE. Freshmen are graded on a 60–40 formula where 60% of the grade comes from effort. Academics count for the other 40%. Just pay the tuition, show up for class and pass. SEE?

Savannah outside the squares

Gulfstream Aerospace in Savannah is hustling to score a $3 billion development project to build 300 $80 million supersonic business jets. That’s $24 billion in sales. Charleston is chasing a manufacturing installation to work with Boeing on their next generation of passenger jets. There could be an aerospace cluster developing in the Lowcountry.

Hong Kong property prices in perspective

In an upmarket residential area of Kowloon, the mainland side of Hong Kong, one plot of over four acres is due for auction this week. The expected price is $860 million, which is $4,500 per square foot. That would bring the lot USC just auctioned at 1719 Pendleton Street to over $65,000,000, not the $206,000 paid.

Health–care cost

In 1997, the total annual health–care cost per worker in the US was about $4,000; in 2001, $4,500; and projected for 2005, just under $7,800. But that’s all from a survey of 200 of America’s biggest employers. On the government side, Medicare alone is expected to take 35% of all federal spending by 2030, up from 13% now. The system is unsustainable.

Wealth gap

The median net worth of Hispanic households in 2002 was $7,932, down 24% from 1999. Over the same period the net worth of African–Americans was $5,988, down 32% from 1999. For white households the net worth in 2002 was $88,651, up 2.6% since 1999. In 2002, slightly less than half of all Hispanics and African–Americans were homeowners compared with 74% of whites.

Flu season can cost

With the shortage of flu vaccine, this winter could suffer an outbreak of the flu, and the economy could suffer a loss of $20 billion due to the outbreak, according to a Harvard economics study reported in The Wall Street Journal . Warning: Flu is spread by vapor droplets due to coughing or sneezing, far more so than by skin contact.

Capitalizing with the communists

China invested $2.85 billion overseas in 2003, with state–owned companies accounting for 43%. The rest of the world invested $53.5 billion in China. TCL International of China merged its television and DVD operations with Thomson SA of France last year to form the world’s largest television manufacturing concern. The French can’t be cheap, not with their social contract. You understand that, Mr. Milliken?

Continental’s merger with United

Continental’s outgoing chairman wants it. Could be possible after awhile.

The Bridge back on track

Wait awhile longer.

Delta’s bankruptcy filing

Soon.

City council’s empowerment zone scandal

Sooner.