Hotels In San Francisco – How Gratefully Will The Bell Boy Accept My Tip?

Why Do Many People Dislike Philadelphia?

I have never been to philadelphia but it seems like a nice city to me.
Its got 1.5 million people, a decent train that gets you around the city(not its suburbs), and its got a thriving nightlife. On top of that, it is quite cheap for a city of its size. The other cities with similar sizes are san francisco and chicago and man they are way more expensive. They have some good sports teams. The phillies won the world series last year, the eagles got to the afc championship, and the flyers were somewhere in the playoffs(I really dont watch hockey if you cant tell by now). Also, there are some very good universities in the city such as the famous ivy league university of pennsylvania. And the city is two hours from new york city and two hours from washington dc and is a bit of a drive from the ocean.
What is it that people dislike about philadelphia?

An Original Music Star is Born : Bay Area Rockers Zen Vendetta Win $10,000 Make A Star Web-to-TV Competition

Reality television seems to thrive on the worst kind of drama – unnecessary conflict by people so obnoxious it’s hard to find anyone you think deserves to be seen on TV. Then along came Make A Star, a new show syndicated on Fuse Saturday mornings for a 13 episode season that turned that stereotype around – exposing a wealth of unsigned American bands and solo artists to a national TV audience, and finishing it all off with two finalists competing for a $10,000 cash prize where the only shame was that one of them had to lose.

Make A Star’s concept was simple, but entirely unique in streamlining the Internet with TV – upload a music video for free to MakeAStar.com, compete for fan votes and the scores of music industry judges, and hope your video gets broadcast on the weekly show. Hundreds of acts in everything from hip-hop, country, electro, punk, pop, and metal entered, but at the end of the Hollywood Phase bracket only two bands were left – Fools & Horses and Zen Vendetta.

Fools & Horses formed in 2002 and have built up a huge fan base in the Baltimore / Washington D.C. area with a tireless schedule of gigs. This live excellence comes through on their Make A Star contest song “Selfish.” Singer/guitarist Matt Hutchison and band mates Kent Warren (bass), Steve Herrera (guitar) and Tim Hutchison (drums) blend layers of riffs, tempos and melodies into an euphoric energy that can set a wide range of dance floors on fire with ease. Fools & Horses make divisions within alternative rock seem to disappear, with influences from Britpop to American classic rock filling the stellar landscape of their critically acclaimed album I Am The Ghost. These guys are going to be big.

Make A Star flew Matt Hutchison out from Baltimore to Southern California on short notice for the final show, where he met up with Zen Vendetta singer Scott Eckardt and bassist Josh Wolfer, who hopped aboard the much shorter flight from Oakland to Orange County.

The show featured extended artist interviews, behind-the-scenes footage of both bands on the plane and arriving at their hotels, and special joint performances of each band’s contest song with the opponent joining in on each other’s songs.

Then came the winning announcement, as Russ Regan, the A&R legend who helped launch Elton John’s American success, signed Neil Diamond and gave Brian Wilson the idea to name his band The Beach Boys, stepped out to open the envelope. While both bands had huge fan turnouts and high judge scores, Zen Vendetta came out on top, taking home the $10,000 cash prize.

Matt Hutchison gracefully accepted the surprise $1,000 runners-up check, and his reflection on the whole process revealed a rising band with a refreshingly positive and mature disposition. “I can’t tell you how much fun the band and I had with Make A Star. Even though we were runners up, I left Orange County feeling very much a champion. From the production staff to the hosts and producer, I witnessed a class act unfold on camera. I foresee great things from Make A Star and was excited to be a part of it!”

For Zen Vendetta’s Scott Eckardt, it was a time to shine. The lead singer has shared the stage with several major hard rock acts over the course of his career, but has still remained mostly a well-kept secret outside the east bay town of Livermore, California, where he began his musical journey as vocalist for the band Us in the 1980s and still calls home today.

Livermore is of course just minutes away from the Altamont Speedway, site of the 1969 Rolling Stones free concert that holds some of rock and roll’s darkest memories. But Eckardt’s lyrics for their Make A Star contest song “I’m Alive” are a world removed from those ghosts – emotional, honest, and socially poignant, the song paints a reflective, positive image of love and courageous self-belief that makes it an emboldening anthem for the zeitgeist of 2009 America, yet delivered with a sense of poetic metaphor that will stand the test of time.

Musically, the song blends elements of classic rock and modern alternative rock cohesively, and the band sees the mix of “a veteran soul with modern blood” as a key to their success. Josh Wolfer (bass), Ben Sairin (guitar), & Chris Mabry (drums) can rock hard, strum softly and craft tight and catchy hooks, but what makes the band special is a sense that they all have slightly different tastes in music and revel in that diversity. There are hints of 1960s summer of love, of Led Zeppelin thundering in a stadium, of early U2 and Guns N’ Roses hanging out and enjoying each other’s music, of Pearl Jam’s finest moments, and it all begins to feel that a mini-history of rock and roll is weaved amongst the song’s textures.

Winning the Make A Star Original Music Contest is a huge step for the young band (who formed in 2006 with the final lineup set just last year), paving the way for their debut full length CD Out On The West Coast due in stores this month. Zen Vendetta have the ambitious goal to “create the rock sound of the future” and by winning the Make A Star contest, they’ve received a loud roar of approval that they’re well on their way – and the future looks bright, as Scott says “with all the negativity in the world, Zen Vendetta gives a glimpse of the sun shining through the rain.”

Granada is Ancient and Mysterious

The name Granada is ancient and mysterious. It may mean great castle, for the Roman fortress which once stood on the Albaicin Hill. When the Moors came here, the town was largely inhabited by Jews, for which they called it Granada of the Jews. The Jews are said to have been one of the first peoples to settle in Spain, even before the Romans.

At the foot of Sierra Nevada, between the Darro and Genil rivers, lies one of the most interesting cities in eastern Andalusia. An impressive Andalusian legacy meets architectural gems from the Renaissance and the most modern facilities, typical of the 21st century.

It was the last city reconquered by the Catholic Monarchs in 1492. Granada has an unmistakable Arab flavour. Its cuisine, crafts and urban layout are a consequence of the city’s glorious history. Fountains, viewpoints and the villas surrounded by gardens typical of the city, add to Granadas unforgettable charm.

Not in vain was one of its oldest districts, the Albaicin, declared a World Heritage Site, together with the Alhambra. An important cultural centre for centuries, both during Muslim and Christian rule, nowadays the city boasts an enviable calendar of cultural and leisure events.

Music, cinema and theatre seasons and festivals are listed, along with permanent and temporary exhibitions ranging over all fields of knowledge. Old Renaissance palaces are home to seminars, conferences and debates, while the most innovative infrastructures are ready for the bigger events.

Granadas excellent location and its mild climate make it possible to practice sports on pitches, tracks or courts as well as those in contact with nature.

The Municipal Sports Centre has facilities for playing basketball, handball, table tennis, volleyball, indoor football, martial arts and more. Granadas interest in sporting activities culminates in the holding of the long distance races that take place in different places throughout the province.

It has a large student community, and, for this reason, the city hosts a wide variety of leisure activities for young people. The calendars of cinemas, theatres, auditoriums and exhibition halls fill up with the many festivals that have chosen Granada to host their events.

Ceramics, silver and inlaid woodwork are just some of the most famous craft products from Granada. There is a wide range of shops in the streets of Granada, from workshops, franchises, traditional and prestigious shops to shopping centres and street markets, giving the visitor numerous different alternatives for a days shopping.

It has a vast network of accommodation, including historic buildings, such as the old convent of Santa Paula and the convent of San Francisco.

Due to its great communications, its marvellous climate, its beaches, and its snowy mountains, it is a unique destination for cultural, adventure and business travel.

Unique Ca Getaways are Trips to Remember

With hard-earned vacation time often in short supply, travelers want to make the most of every weekend or vacation they get. Sometimes that means trying something completely different – a getaway so unique that it will become Topic A around the Monday morning water cooler.

California is blessed with many such unique vacation adventures, and here are three of our favorites:

Luxury tent camping

If your memories of tent camping are crawling into a pup tent, zipping yourself into a sleeping bag, and then writhing all night on a hard piece of ground, we have good news: You can now get the back-to-nature tent camping experience but with a twist that is sure to appeal to all those who swore off tents back in their early 20′s.

About 17 miles west of Santa Barbara a place called El Capitan Canyon offers safari-style tents that have been outfitted with real beds, electricity and other conveniences you would expect in a hotel room. The tents are real tents, all right, and zip up just like the ones from your younger years, but they’re set up on a permanent wood deck that makes them feel more cabin-like, except that this still is a canvas tent.

There are 26 such tents at El Capitan Canyon – along with dozens of small cabins and yurts – and each one measures 12 feet by 14 feet and is furnished with either one queen bed or two double beds. You’ll get bed linens and towels, a small desk, chairs, a bedside table, heating, lights – in other words, considerably more amenities than you probably remember taking with you on that backpacking trip into the Sierra Nevada.

The setting at El Capitan is quite woodsy with groves of sycamore and oak trees, although there are large open areas of grass where the kids can play as well as barbecue pits and picnic tables for each of the tents, cabins or yurts. Just a mile or so down the road is the gorgeous Pacific Ocean and El Capitan State Beach where you can picnic and swim. There are also scenic hiking trails nearby including the Bill Wallace Trail.

We should note the word “luxury” here is a relative term – compared with your every-day garden-variety campground, El Capitan is definitely a couple of notches better and the tents are much more comfortable than any tent you would set up on your own. The cabins and yurts looked cozy as well. But remember, you’re going to be camping with no indoor plumbing and modern, clean bathrooms are a couple minutes walk from your tent. A heated swimming pool also is available.

Besides the comfortable accommodations, a big plus for El Capitan Canyon is the on-site Canyon Market that includes an excellent sandwich shop, light groceries and other provisions for your stay. The market has “barbecue kits” available for purchase that include all the meat and fixings for hamburgers, hot dogs, chicken, fish or even tri-tip. If you do decide to do your own cooking, you’ll need to pack kitchen supplies from home.

We found El Capitan Canyon to be quite enjoyable and quite different from many of the hotels and resorts we often visit. It was a way to return to our roots – that is, enjoy an outdoors experience but do it in a more civilized way with no sore backs in the morning and shower facilities close at hand to freshen up after a night in the “wilderness.”

For more information, go to www.elcapitancanyon.com or phone 866-352-2729.

Fire lookout

If you’re the type of traveler who truly likes to get away from people – who puts a high premium on quiet, uninterrupted peace, and who will not go into withdrawal if you have to go a night without television – then have we got the place. The Morton Peak Fire Lookout books overnight stays for people just like you.

The U.S. Forest Service views the lookout rental program as a way to generate a little good PR at a time when they have to keep telling people that services may be more limited or more expensive due to tight budgets.

We reserved our night by calling the Big Bear Lake Resort Association, which handles bookings for the Morton Peak Lookout, the only such facility in Southern California that is available for rentals. The lookout actually is just at the edge of the San Bernardino Forest and, if you’re coming from the Los Angeles area, it will save you about 45 minutes off the normal two-hour drive to Big Bear.

We noted that the last three miles are on a steep, rutted road but it wasn’t long before we came to a small clearing on a mountain top with, as advertised, a 30-foot tower and a 14X14 “cabin” on the top. Maybe a more apt description would be an aircraft control tower on stilts, as the cabin had windows running the length of every wall, offering views in every direction.

This particular tower, elevation 4624 feet, was built in the 1930′s, then burned down and rebuilt in 1960. It eventually went out of service and into disrepair as the Forest Service cut back on its paid lookout program, but was rebuilt in 2001 with a $5,000 government grant and a volunteer work force.

Soon we were ready for our night at the edge of the world. As the sun dipped slowly, the nearby mountains darkened while, at the same time, the city lights below us came alive. The juxtaposition seemed unusual – here we were perched on a mountainside all by ourselves, yet below us were the lights of nearly the entire Los Angeles basin.

The lookout is small, but comfortable for a couple or perhaps a couple with one or two small children. You’ll find just a couple of small beds but space for a child if you want to roll some blankets out out on the floor. There’s no running water in the cabin, no refrigeration, no power. Cooking is restricted to the picnic table outside and you must haul in your own gas stove because fires and charcoal briquettes are not allowed.

For more information on reservations at Morton Peak Lookout, call the Big Bear Resort Association at 1-800-4-BIG-BEAR or visit www.bigbear.com.

Historic paddle-wheeler

Who can resist the charm of an early 20th-century riverboat – a true paddle-wheeler that once offered prohibition-era drinking, jazz bands and gambling for its fun-loving passengers? Fortunately there’s no need to travel to the Mississippi – and no, we’re not talking Disneyland. The Delta King awaits your exploration dockside in Old Sacramento.

Just like passengers back in the 1920s, today’s guests enjoy enchanting river views, great food and drink and a cozy stateroom unlike any other accommodation you may have experienced. But unlike those early passengers, you will have to be content with scenery that remains pretty constant. The Delta King isn’t going anyplace anytime soon.

But then it doesn’t need to. This historic 285-foot boat is docked along the Old Sacramento riverfront which, today, has been turned into a hip collection of good restaurants, eclectic shops and trendy night spots that draw millions of tourists and local residents alike.

The Delta King and her identical twin, the Delta Queen, were christened in 1927, the same year that the vessels began voyages between San Francisco and Sacramento. The elegance and craftsmanship are apparent the moment one enters the lobby area where the rich red oak paneling and fixtures create an impression of opulence. The dining room, too, has that feeling of classic comfort, and a wide stairway and oak banisters bring to mind those images of the grand stairway in the Titanic.

We found the rooms to be small, but no smaller than expected for a stateroom on board an authentic riverboat. Our room had a queen bed on one side, a single bed on the other, and a tiny bathroom – with an unusual six-foot high toilet tank — in the middle. Color TV with cable was available on the queen bed side.

For history buffs, Old Sacramento also has a number of museums including the California State Railroad Museum, the California Military Museum, Discovery Museum History Center, the Old Sacramento Interpretive Center, the Old Sacramento Schoolhouse Museum and the Wells Fargo History Museum.

For more information on the Delta King, phone 1-800-825-5464 or go to www.deltaking.com.

Doctors Call for Changing Antibiotics in Treating Gonorrhea

The rates with which new drug-resistant types of gonorrhea spread across the United States have accelerated so much that the doctors are now switching to new types of antibiotics to fight the disease. Among heterosexual men infected with gonorrhea about 6.7 percent in were infected with a drug-resistant type in 2006, while only 0.6 percent had the same diagnosis five years earlier. Men going to STD clinics for test are subjected to standard gonorrhea tests too, while the data obtained in these tests is monitored. The results obtained from such clinics in 26 cities display that drug-resistant gonorrhea was found in 26 percent of heterosexual men infected with gonorrhea in Philadelphia and about than 20 percent in Honolulu and four areas in California, Long Beach, Orange County, San Diego and San Francisco. The growth rates of such diseases among gay men were higher, with 38 percent in 2006 in contrast to only 1.6 percent five years earlier. In the course of 14 years, the vast majority of gonorrhea cases were effectively treated with a type of antibiotics called fluoroquinolones. Today, many doctors start switching to another class of antibiotics called cephalosporins. But the doctors are concerned with the fact that there’s only one antibiotic class left to treat gonorrhea. And it is hard to say whether there will be another drug to treat the disease when it again develops resistance to the drugs currently put in use. Other diseases such as tuberculosis have recently leaped ahead in what concerns resistance to common medication and microbes like Pseudomonas aeruginosa, Klebsiella penumoniae and Acinetobacter species give the doctors new things to worry about. In the The United States about 700,000 sexually active people of all ages and genders get infected with gonorrhea each year. Thus, gonorrhea is the second common infectious disease, chlamydia being the first one. There was no resistance to to the cephalosporins from gonorrhea, so the STD centers are now recommended to prescribe ceftriaxone, sold as Rocephin, which is administered through injections. Cefixime, or Suprax, are also recommended for use. The above mentioned drugs will replace the three drugs that are currently used for treating gonorrhea: Cipro, Floxin and Levaquin. Those who are allergic to cephalosphins, can consider using Zithromax, which is successfully used as an alternative to common treatments for chlamydia. Over the years, gonorrhea has shown a steady development of resistance to most antibiotics that were used for treating it. First these were sulfa antibiotics, then penicillin and tetracyclines after that. The centers responsible for STD treatment have frequently called against using fluoroquinolones in cases of gonorrhea because of the steady development of resistance in different parts of the world. Now with only antibiotic class left in reserve doctors worry about what happens next, when they run out of options. It is early to state that there’s a gonorrhea epidemic coming anytime soon, but what if something like that happens when gonorrhea develops resistance to cephalosphins? Nobody knows.

Anti Poverty

                       

Anti Poverty in USA

                  

                          Even the wealthiest nation in the world like the United States does not escape the problem of poverty. This paper takes a critical look at poverty and anti-poverty policies in the United States. In this paper, I have argued that poverty is caused by several factors. This paper also discusses the liberal and conservative perspectives for reducing poverty in America. The conservatives have focused on individual factors such as wide wage gaps, breakdown of family, racial factors and other reasons while the liberals have focused on the structural transformation of the American economy to explain the persistence of poverty.  Since 1960, both the federal and state governments have been responding with policies that address the problem with mixed results. In this paper, I have analyzed the policies and have also recommended the possible ways to deal with this intractable nature of poverty.

                   According to Sen (1981), ‘the poor are those people whose consumption standards fall short of the norms, or whose income lie below that line’. The word “poverty” suggests destitution, an inability to provide a family with nutritious food, clothing, and reasonable shelter. Over thirty-six million Americans live below the official U.S. poverty line (Blank, 2007). This means a family of three earns less than less than $ 16,000 or a single individual earns $10,300 per annum (Blank, 2007, p. 17). Millions more struggle each month to pay for basic necessities, or run out of savings when they lose jobs or face health emergencies. Job cuts, high rates of unemployment, foreclosures and high food and gas prices continue to stimulate policy formulation designed to improve the condition of the poor.

                     Poverty is integrally associated with misery and suffering. The lost potential of children in poor households and the lower productivity and earnings of poor adults are all intertwined with poor health, increased crime and broken neighborhoods. Childhood poverty typically leads to poor health care and high crime neighborhoods. Persistent childhood poverty is estimated to cost the United States $500 billion each year, or about 4% of the nation’s gross domestic product (Blank, 2007, p.1).

                    One in eight Americans lives in poverty and poverty in the United States is far higher than in many developed nations (Rebecca Blank, 2007, p1). Inequality has reached record high. The richest 1 percent of Americans in 2005 held the largest share of the nation’s income (19%) since 1929 (Rebecca Blank, 2007, p. 2). At the same time the poorest 20% of Americans held only 3.4% of the nation’s income (Rebecca Blank, 2007, p.2).

                    Colorado in spite of being surrounded by the beautiful Rocky Mountains and experiencing a cool, mountain climate has many homeless people. Scholars have identified that, a growing number of single parent households, a shortage of jobs for lower wage workers and a low rate of high school graduation have contributed to the growth of poverty in Colorado. The Colorado poverty rate has increased from 9.2% in 2000-2001 to 10.6% in 2005-2006 while the poverty rate of United States has increased from 11.5% in 2000-2001 to 12.5 % in 2005-2006 (Center on Law and Policy, 2006, p.1).  Most of these ill-fated poor people suffer from mental and health problems. 

Causes of Poverty

                        Policy analysts are trying to explore numerous perceived direct and indirect causes of poverty in the United States to formulate effective policies to alleviate poverty. The work of scholars such as Corley (2003), Sowell ( 2004), Iceland (2006), Jencks (1992), James Tobin (1993) and others have shown that the intractable nature of poverty is a result of not any one factor but of the interaction of a variety of causes. The breakdown of family and other social causes as well as the structural changes in the economy, have all contributed to society’s failure to eradicate poverty inspite of ardent efforts by policy analysts.

                   Individual Explanation of poverty mainly stresses the attitudinal or motivational factors and human capital factors. Thus lack of motivation among indigents causes poverty. Generous welfare programs sometimes affect the mind-set of recipients and they prefer to stay at home and enjoy the benefits rather than work outside. Murray (1984) argues that individuals prefer to remain on welfare because of insufficient motivation to come out from public welfare programs.

                  Formulation and proliferation of policies to alleviate poverty has been a major concern of the United States Government since 1960. Educational attainment is necessary to get a high paying job. Elementary school education, as well as lack of adequate skills and motivation among indigents to come out of the situation is the major causes of poverty. People well equipped with technical skills get high salaried jobs while people who are school drop outs get low pay on an hourly basis. During the 1960s when the then- President of United States Lyndon Johnson began to implement the United States ‘war on poverty’, he placed great emphasis on education (Jencks, 1992). The Lyndon Johnson administration even invested in programs like Head Start and occupational training to upgrade the skills of the poor and also to prevent future generations from working in low-paying jobs. Scholars like Sowell (2004) and Corley (2003) have emphasized individual level factors as the central causes of poverty. They argue that a person’s compensation is based on his or her educational qualification and marketable skills. Sowell (2004) argues that the lack of appropriate skills has affected the ability of many indigents to climb out of poverty. He also argues that there has been an increase in the poverty rate of unskilled Americans, who have lost jobs to Asian immigrants. Corley (2003) also supports the above argument and regards ‘lack of educational attainment’ as one of the entrenched sources of poverty. Low quality education from poorly funded inner-city schools results in few marketable skills which leads to low-wage jobs and other miseries associated with it such as less ability to pay for housing, food, clothing, medical care, bad neighborhoods, funding problems for schools, and increased risk of serious illness (Corley, 2003). 

                          Many scholars have argued that structural changes are the primary reason for the persistence of poverty in the United States. Structuralists emphasize issues such as joblessness, discrimination in education, institutional racism and economic transformations in explaining the causes of poverty. Scholars argue that the inability to provide decent paying jobs for some American families and the ineffectiveness of American public policy to reduce poverty are basically the result of structural failures and processes. Poverty is rooted in the structure of American society. Rank, 2004 supports the above view and argues that lack of human capital tends to place individuals in a vulnerable state when events and crises occur. The incidence of these events like loss of a job, family break-up and ill-health often result in poverty. These ill-fated people unable to handle these situations often end up in paying more. Scholars also argue that the acquisition of human capital is strongly influenced by the impact of social class on this process (Rank, 2004). Apart from poor family, race and gender also play a role in the acquisition of human capital (Mark Robert Rank, 2004).

                          Globalization, the expansion of credit markets leading to greater indebtness and foreclosures leading to recession in 2008 all point to the growth of poverty.  Iceland (2006) primarily focused on economic factors and has argued that poverty is also the product of deindustrialization. As the U.S. shifts from a manufacturing, industrial society to a service-oriented, high-tech society, many of the blue-collar jobs that required little education but paid well are disappearing or are being outsourced. Rural areas, such as Appalachia, suffer losses of mining jobs, and cities such as Detroit lose many manufacturing jobs to automation or overseas factories. Some people are unable to follow the jobs or commute to work are left in neighborhoods without employment or tax-basis to support needed social functions, such as schools, public transportation, police departments, and so forth. Others simply cannot find jobs because of the shift towards a service-based economy; in economic terms these people are structurally unemployed due to the changing skills needed. Tobin (1993) supports the above viewpoint and emphasizes on the disappearance of jobs in the 1900s as the main reason for the country’s failure to eradicate poverty. Recent employment data shows that the US housing slump and the crisis in America’s credit markets are threatening to increase poverty levels. Isidore (2008) mentions that the job losses  are widespread, with the battered construction sector losing 51,000 jobs and manufacturing employment falling by 48,000 in the year 2008 . Retail employment dropped by 12,000 jobs, and business and professional service employers cut staff by 35,000. The unemployment rate jumped to 6.1% in September from 4.9 % in January (Bureau of Labor Statistics, 2008).

                         Kelso (1994), argues that over the last forty years, there has been a major shift of American firms first to the west and then to the south. Part of this shift was due to the rise of the Cold War and the decision of the government to enlarge U.S. military power (kelso, 1994). He argues that as America elected to invest more in defense and in the aerospace industry, cities like Seattle and Los Angeles on the West Coast began to boom while the growth of a high technology and information based technology led to the growing affluence of California and the San Francisco Bay area. Later with the expansion of inter-state highway system and growth of jobs, markets were created in the south.

                         Iceland (2006) also argues that although the service sector of the economy has generated millions of jobs, but again polarized earning distribution based on educational attainment separates better paying jobs from poorer paying jobs. He supports a Marxian analysis of class conflict and exploitation and emphasizes on business owners favor hiring inexpensive labor to maximize profit. This also accounts for the inflow of cheap labor to the United States from Mexico and other countries. Greater access to credit has put cars, computers, credit cards, and even homes within reach for many more of the working poor. But this remaking of the marketplace for low-income consumers has a dark side. Roubini notes that, “Having access to credit should be helping low-income individuals, but instead of becoming an opportunity for upward social and economic mobility, it becomes a debt trap for many trying to move up (Grow and Epstein, 2007).

                          Inspite of public assistance and wide initiatives taken by both Federal and State governments, poverty still exists. Meticulous analysis of the situation and effective formulation of policies is needed to solve the problem of poverty in the United States. Scholars like Rank (2004), Blank (2007) and others have shown that the United States Government spends fewer funds addressed towards poverty than any other industrialized country. Thus a major structural failure is found at the political level (Rank, 2004). Most European countries provide a wide range of insurance programs, unemployment assistance, and wide universal health coverage along with considerable support for child care (Rank, 2004). Such social programs are far more generous than those in the United States (Rank, 2004). While, low-income families in the United States work more than those in other countries, they are still not able to make up for lower governmental income support relative to their European counterparts (Blank, 2007, 141-142).

                          The gross disparities among impoverished people in the United States along racial lines have led many scholars to speculate that institutional racism is responsible for much of the poverty in the United States. Racial discrimination in employment and   education contribute to the growth of poverty. Some scholars like Massey and Denton (1993) interpret the statistics in terms of institutional racism while others like Kelso (1994) interpret the statistics as evidence of deficiencies and suffering of blacks.   In spite of efforts to remove racism, slavery and Jim Crow segregation, Massey and Denton (1993) argue that racial segregation still exists and that the fundamental cause of poverty among African Americans is segregation. They argue that segregation has created and perpetuated a black underclass by limiting educational and employment opportunities. Massey and Denton (1993) have shown that Blacks were shown homes in racially mixed areas or areas adjacent to predominantly black areas.

                           Also, changing patterns of family formation are more pronounced among racial and ethnic groups. Family patterns are also one of the causes of poverty in the United States. There is a wide gender gap in wages. In 2004 the median income of FTYR male workers was $40,798, compared to $31,223 for FTYR female workers (DeNavas-Walt et al, 2005) Pearce (1978) argues that ‘poverty is rapidly becoming a female problem’. Iceland (2006) supports this statement and showed that in 2000, the female poverty rate (12.5%) was 26% higher than the male poverty rate (9.9%) (Iceland, 2006). According to Iceland, women have fewer economic resources than men, and they are more likely to be the head of single- parent families. It also leads to the greater likehood that single, divorced or widowed women will be poorer than their male counterparts because of less social security income or other retirement income in addition to higher female life expectancies. Women’s lower wages, lower retirement benefits and the increasing number of single mothers have led some scholars to talk about the “Feminization of Poverty.”

Federal policies

                       After the Second World War, by 1963, creation of jobs by President John F. Kennedy’s tax policies could not remove the problem of poverty. Poverty was still recognized as a major national problem. President Lyndon B. Johnson’s War on Poverty led to a host of programs that included Medicare, Medicaid, Food Stamps, Aid to Families with Dependent Children, and others. These entitlements eventually consumed half the federal budget and could not alleviate poverty. The U.S. economy had been devastated by the recession of 1979-83 when the United Statess manufacturing infrastructure was shattered by the Federal Reserve’s skyrocketing interest rates causing unemployment to shoot up by sixty-five percent in four years (Cook, 2007). By the end of the 1980s the economy was in another recession, leading to the election of Bill Clinton who in 1992 replaced the incumbent George H.W. Bush. The investment boom of the 1990s was fueled by foreign capital lured in by the Treasury’s strong dollar policies. Jobs were created as the dot.com bubble expanded, trade barriers fell, and utility trading giants like Enron took off. NAFTA was enacted to promote free trade, welfare-to-work brought low-income women into the job market, and the Earned Income Tax Credit was extended. The party ended when the stock market crashed in December 2000 and millions of people lost their retirement savings and other investments. Recession was returning even as George W. Bush was being declared president by the U.S. Supreme Court in December 2000. The economic crisis deepened after the September 11, 2001 attacks when $1.4 trillion in wealth vanished during the worst five days of the stock market since the Great Depression (Cook, 2007). Cook (2007) argues that today, poverty is becoming a national catastrophe. Cook (2007) argues that from 2002 through 2006 the economy was floated by the housing bubble, with many lower income people getting into homes of their own through the proliferation of sub prime mortgages. With the financial woes in late 2008, many American citizens are left with inflated home prices and no way to pay for them.

                      The 1960’s policy initiatives and declaration of ‘unconditional war on poverty’ by the then president Lyndon Johnson marked a discrete change in the federal government’s willingness to intervene for the purpose of improving the economic situation of poor Americans. Despite the billions of dollars spent on programs like CETA (Comprehensive Employment Training Act), The Manpower Development and Training Act, Head Start, and the Elementary and Secondary Education Act, the government efforts to deal with the origins of poverty have met with minimal success. During this period, implementation of the Social Security old-age program insured virtually all retired workers against the risk of outliving their savings. The Social Security Act of 1935 sought to protect the incomes of those who did not work because of age or a poor economy by establishing a federal framework for unemployment insurance, old-age benefits, and assistance to women. In early 1964, the two most pressing priorities of President Johnson’s antipoverty agenda involved passing a massive tax cut designed to stimulate the economy and organizing a task force to shape the ‘War on Poverty’. The Economic opportunity Act (EOA) signed by Johnson created a long list of programs designed to help individuals develop marketable skills, political power, and civic aptitude. But this anti-poverty legislation oversaw other programs like Community Action Program, Job Corps, VISTA, Head Start (1965), Legal Services (1965) which were not included in its framework. While extensive programs like the Food Stamp Program, Medicare for elderly, Medicaid applied to qualified poor residents, the Elementary and Secondary Education Act for poor students overshadowed the EOA. The Higher Education Act eased the financial burdens of millions of college students. The Civil Rights Act opened up new spaces in the American marketplace, while the Voting Rights Act did the same for the political marketplace. The Fair Housing Act established an important base of law to combat housing discrimination. As a result the EOA slowly lost importance. Again, Murray (1984) argues that welfare benefits had soared so high so as to make living in poverty a meaningful option for the poor. Even Burton (1992) has supported the above viewpoint and argues that the programs have done more to cause poverty than to alleviate it.

                          When Nixon assumed power, he tried to deal with poverty in a more direct way than emphasizing social programs. . Although President Nixon expressed dislike for much of the War on Poverty, his administration responded to public pressure by maintaining most programs and by expanding the welfare state through the liberalization of the Food Stamp program, the indexing of Social Security to inflation, and the passage of the Supplemental Security Income (SSI) program for disabled Americans (Rank, 2004). The Nixon administration also endorsed a “New Federalism” in which the federal government shifted more authority over social welfare enterprises to state and local governments. His plan to implement the ‘Family Assistance Plan’ (FAP) consisted of various income provisions, work provisions, and training provisions for those below the poverty line (Rank, 2004). It failed to pass the Senate much like the ‘Programs for Better Jobs and Income’ initiated by President Carter in later years.                                       Welfare reform continued as a focus of federal policy debates even after the legislative defeat of FAP. Even though a cash ‘Negative income Tax’ (NIT) for all poor persons never passed, the Food Stamp program provided a national benefit in food coupons that varied by family size, regardless of state of residence or living arrangements or marital status. The number of AFDC recipients increased from about 6 million to 11 million and the number of food stamp recipients, from about 1 million to 19 million during the Nixon administration (Danziger, 1999, p. 8). Danziger (1999) also argues that as higher cash and in-kind benefits became available to a larger percentage of poor people, the work disincentives and high budgetary costs of welfare programs were increasingly challenged. The public and policy makers came to view increased welfare recipients as evidence that the programs were subsidizing dependency and encouraging idleness.

                        Despite the failure to enact a guaranteed income program, both the number of recipients and the amount of money spent on welfare programs increased substantially during the 1970’s (Rank, 2004). Rank (2004) has given an overview of Reagan’s policies and noted that Reagan emphasized individual action unhampered by government interference, rejected the social engineering of the 1960’s and also supported federalism, that is, returning power to the states rather than centralizing them within the federal government. Reagan tried to address the problem and set the tone for welfare reform that occurred in 1990 during his successor’s administration. The Reagan administration thought eligibility for welfare benefits had increased so much, that many persons who were not “truly needy” were receiving benefits. The Reagan Administration opposed simultaneous receipt of wages and welfare benefits. Rather, it proposed that welfare become a safety net, providing cash assistance only for those unable to secure jobs.

                    The Earned Income Tax Credit (EITC), enacted in 1975, provides families of the working poor with a refundable income tax credit (i.e., the family receives a payment from the Internal Revenue Service if the credit due exceeds the income tax owed). Thus the EITC raises the effective wage of low-income families, is available to both one- and two-parent families, and does not require them to apply for welfare. The maximum EITC for a poor family was $400 in 1975 and rose to $550 by 1986 (Danziger, 1999, p. 14). The 1986 Tax Reform Act increased the EITC so that by 1990 a low-income working parent received a maximum credit of $953 (Danziger, 1999, p. 14). The number of families receiving credits increased from between 5 and 7.5 million families a year between 1975 and 1986 to more than 11 million by 1988 (Danziger, 1999, p. 14). Danziger, 1999 argues that as the expanded EITC supplements low earnings, it became easier for policy makers to emphasize welfare reform policies that could place recipients into any job, rather than training them for “good jobs.” Thus he argues that if a nonworking recipient took a low-wage job, a substantial EITC could make work pay as much as a higher-wage job would have paid in the absence of an EITC.

                         The Family Support Act (FSA) of 1988 expanded the scope of the AFDC program for two-parent families, instituted transitional child care and Medicaid for recipients leaving welfare for work, and added funds and required states to establish programs to move greater numbers of welfare recipients into employment. When the welfare rolls jumped in the late-1980s and early-1990s, from about 11 to about 14 million recipients, dissatisfaction with welfare again increased ( Danziger, 1999).    

                        President Nixon identified the two main economic problems, inflation and unemployment, that justify the need for economic recovery to the American worker. Reagan has emphasized despair caused by unemployment combined with high inflation. Reagan’s rhetorical construction of welfare recipients and the welfare system was aimed at reducing anxiety among Americans caused by increasing taxes, inflation and the continuous fear of losing jobs. To end this victimization, Reagan proposed a plan for economic recovery (Rank, 2004). Apart from cutting government spending, specifically spending on social programs, Reagan also proposed to have State governments assume control of Aid to Families with Dependent Children (AFDC) and the food stamps program in exchange for the Federal Government control of Medicaid. Although this proposal failed to reach the Congressional floor, his presentation of the proposal to exchange AFDC and food stamp program with Medicaid made poverty a local concern (Mark Robert Rank, 2004).  

                       Liberals and conservatives still disagreed on other goals of welfare-to-work programs. Liberals thought welfare reform should expand opportunities for welfare mothers to receive training and work experiences that would help them raise their families’ living standards by working more and at higher wages. Conservatives emphasized work requirements, obligations welfare mothers owed in return for government support whether or not their families’ incomes increased (Mead, 1992). 

                       In later years President Clinton’s approach also emphasized empowerment as a way of helping welfare recipients and to accumulate more savings without being penalized and expanding the earned income tax credit (Blank, 2007). By the mid-1990s, the focus of policy concern shifted from fighting poverty to reducing welfare dependence. President Clinton’s signing of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (the PRWORA) ended the entitlement to cash assistance and dramatically changed the nature of the social safety net. The Act created the Temporary Assistance to Needy Families Program (TANF). TANF began on July 1, 1997, provides cash assistance to indigent American families with dependent children through the United States Department of Health and Human Services (The Center for American Progress Task Force on Poverty, 2007).  Danziger, 1999 argues that each state can now decide which families to assist, subject only to a requirement that they receive “fair and equitable treatment.”  In instituting a block grant program, the PRWORA granted states the ability to design their own systems, as long as states met a set of basic federal requirements. The bill’s emphasis on ending welfare as an entitlement program, places a lifetime limit of five years on benefits paid by federal funds, and also aims to encourage two-parent families and discourages out-of-wedlock births. In granting states wider latitude for designing their own programs, some states have decided to place additional requirements on recipients. Although the law placed a time limit for benefits supported by federal funds of no more than 2 consecutive years and no more than 5 years over a lifetime, some states have enacted more stringent limits. All states, however, have allowed exceptions with the intent of not punishing children because their parents have gone over the time limit. Federal requirements have ensured some measure of uniformity across states, but the block grant approach has led individual states to distribute federal money in different ways. Certain states more actively encourage education, others use the money to help fund private enterprises helping job seekers. The PRWORA offers no opportunity to work in exchange for welfare benefits when a recipient reaches her lifetime limit of 60 months of federally-supported cash assistance. But the reform has certain limits. States may not use federal block grant funds to provide more than a cumulative lifetime total of 60 months of cash assistance to any welfare recipient, no matter how willing she might be to work for her benefits, and they have the option to set shorter time limits. States can grant exceptions to the lifetime limit and continue to use federal funds for up to 20 percent of the caseload. The extent of work expectations has also been increased. Single-parent recipients with no children under age one will be expected to work at least 30 hours per week by FY 2002 in order to maintain eligibility for cash assistance (Danziger, 1999, p 20). States can require participation in work or work-related activities regardless of the age of the youngest child. Thus PRWORA emerged from research that sought both to reduce poverty and welfare dependency (Danziger, 1999).  In the 1990s, following Clinton’s call to “end welfare as we know it,” policy makers escalated their demands for recipients to work and reduced government obligations toward and funds to serve them (Danziger, 1999).

                     When Bush took office in 2001, the U.S. was experiencing a national surplus, unemployment and poverty had been on the decline for years, and the economy was booming. Now, almost six years later, poverty is on the rise, healthcare coverage is on the decline, and the country is faced with the largest national deficit in history. Lower middle class families are slowly slipping below the poverty line and the poorest are becoming even more destitute. Most of these families are headed by women.

                      President Bush has extended the TANF. There has been a general economic stimulus policy initiative during the Bush administration but nothing targeting low income Americans has been enacted. President Bush signed the economic stimulus package (H.R. 5140) into law with the hope that it will provide a much-needed boost to the lagging economy. The package includes tax rebates for individuals, tax breaks for businesses, and a temporary increase of the Federal Housing Administration loans from $417,000 to $729,750 (White House report, 2008). More than 130 million people are expected to get tax rebates ranging from $300 to $1,200 per household for individuals earning $75,000 or less and couples earning up to $150,000 (White House report, 2008). While the stimulus package will provide much needed financial help to millions of people, it fails to target those most in need as it will not include an extension of unemployment benefits, energy assistance, food stamp benefits, or fiscal relief to states for Medicaid.                       

                  From the above analysis, the question arises whether poor are responsible for their own condition. The above analysis implies that recipients become dependent and lethargic due to vast welfare measures. Scholars such as Murray (1984) and Kilty and Segal (2006) have emphasized on individual factors. They argue that welfare measures and lack of spirit and motivation among indigents contribute poverty. Danziger, 1999 argues that during the Nixon era increased welfare measures encouraged idleness. Kilty and Segal, 2006 also argues that poor people can come out into a state of self-sufficiency from dependency by learning proper work attitude and skills. Kilty and Segal, 2006 argue the importance of welfare reform and a ‘tough love’ approach would ultimately help the poor by making them conscious of their condition and forcing them to take their own responsibility. Bill Clinton’s emphasis on ‘personal responsibility’ and measures to ‘end welfare as we know it’ in 1992 all supports the above argument.

                     Due to the implementation of TANF, the numbers of people on welfare have decreased. As a result more funds are accumulated. In 1996 the number of ADFC recipients was 12,644,076 while in 2001, the number of TANF recipients was 5,91, 811 and the poverty rate also reduced from 13.7 to 11.3 ( Kilty and Segal, 2006) and while in 2008 it is 1,628,422  ( US Dept of Health and Human Services). The share of single mothers on welfare (based on administrative caseload counts divided by population numbers) rose from 38 percent in 1969 to 48 percent in 1980, but had fallen to 30 percent by 1998 ( Kilty and Segal, 2006). These caseload changes are widespread, with every state in the country experiencing substantial caseload decline. This decline has been widely hailed by politicians as an indication that policies designed to reduce dependence on public assistance and move less-skilled adults into the labor market have been extremely effective ( Blank, 2007). But however Blank argues that declines in welfare do not affect the poverty rate. The poverty rate in 2007 was 12.5 percent, increasing slightly from its level of 12.3 percent in 2006. The poverty rate increased for four straight years from 2000 to 2004. In 2007, the poverty rate was 1.2 percentage points higher than it was in 2000 (Blank, 2007).     

States welfare initiatives

                      Most states took a significant decision about reform, and this decision was sensible in light of state goals and experience. A few states did not seriously make reform policy. New York was so deeply divided that it took no serious decisions about AFDC (Mead, 2002). Alabama and Missouri were pushed into reform by federal action and appeared to have little welfare policy of their own (Mead, 2002). In several other Southern states (Florida, North Carolina), policymaking appeared to be casual and personalized, with the governor or legislators offering reform plans with, apparently, little inquiry or evidence behind them( Mead, 2002) . Texas policymaking was incoherent as the state claimed to pursue work first but based its policy on an experimental program and focused far more on education and training (Mead, 2002). States have always emphasized on reform. But sometimes lower contribution towards these plans result in total failure of the program. Mead (2002) argues that in Florida and Georgia, however, officialdom was dragged into reform but showed little commitment to it. In Arizona and California, the agency or major localities had been heavily committed to a skills-oriented approach to welfare and resisted the shift toward work first. In Texas, welfare reform was a lower priority to administrators than rebuilding non-welfare employment programs and other initiatives. In Colorado and New Jersey, local agencies had a history of defiance toward the state government, and this prevented them from fully endorsing reforms decided in the capital. Mead (2002) argues that inspite of establishment of Employment Service (ES), a federally-funded job placement agency, and training programs under the federal Job Training Partnership Act (JTPA), poverty rate did not improve. After national welfare work programs were first enacted in 1967, the ES engaged in welfare practices. But because the ES’s routine stressed serving job seekers who came to it voluntarily, it generally performed poorly with welfare clients (Mead, 2002). These jobseekers came to it on a mandatory basis, as a condition of receiving aid. To succeed with them, the agency had to enforce work but also support employment with special services. The ES often found both these roles uncongenial (Mead, 2002). The ES was denoted to the role of contractor to welfare and later in 1988 the Workforce Investment Act (WIA) merged the ES, JTPA, and other non-welfare work programs. But this merging also created confusion. The problems included lack of clear procedures to refer clients to WIA, to serve them there, or to report results back to welfare. The states that lacked coordination and inadequate management information systems (MIS) were Massachusetts, Rhode Island, Tennessee, Washington, West Virginia, Florida, Georgia, and Tennessee.      

                         Colorado’s public reform has been associated with decline in poverty rate. By the close of 2000, Colorado’s unemployment rate dropped to 2.6 percent, personal income showed steady gains, state welfare cases declined dramatically, and State legislators wrestled with an estimated $833 million revenue surplus (Colorado Fiscal Policy Institute, 2001). But inspite of all the above facts poverty still persists as expenses like child care, out-of-pocket medical expenses and geo-graphic differences in housing costs increased. The increases occurred even after adjusting for income support such as tax relief, food stamps and school lunch programs, housing subsidies and energy assistance. A report published in 2001 by the Colorado Fiscal Policy Institute determined that a single parent with two small children living in Denver County would need to earn an annual salary of approximately $39,924 in order to meet their basic needs such as housing, food, health care, childcare and transportation without public or private assistance. Even child poverty rate is high in Colorado. About 180,000 children, 15.7 percent of the state total was living in poverty in Colorado in 2006, a 73 percent increase since 2000 (Frosch, 2008). The state of Colorado purchases childcare for income eligible families through the Colorado Child Care Assistance Program (CCCAP). The state allows individual counties to set the purchase price of childcare and make payments to providers from a combination of parental fees and federal, state and county funds. However, the Colorado Office of Resource and Referral Agencies (CORRA) found in a 2001 study that the average county payment fell below 75 percent of market value (Colorado Fiscal Policy Institute, 2001, pp 9). As a result counties forced providers to subsidize the cost of service to low-income families, which many were simply unwilling to do when limited slots could be filled with families that could afford to pay full rates. Other providers that chose not to simply refuse service to CCCAP families saved money by limiting the number of children on CCCAP that they would accept, cutting programs, or reducing workers’ wages. All of these actions limited availability and sacrificed quality of care to low-income children. Poverty still exists in Colorado despite initiatives to alleviate poverty as too many working families lives with incomes below the poverty line and more families earn wages simply too low to afford their basic needs. The Colorado government started the Common Good Caucus in 2007 to develop a 2009 agenda, emphasizing on K-12 education and determined to bring technologies out of the laboratory and into the marketplace by investing $4.5 million dollars in bioscience industry, supporting the Clean Energy fund to reduce high family utility costs , creating the Colorado Solar Incentive Program with $2 million to provide rebates for photovoltaic and solar thermal systems to help Coloradans join the new energy economy and cut their utility bills ( State Rep. Kerr Andy, 2008). Poor people cannot pay the full cost of heating and lighting their homes. Governments and social service agencies have long assisted low-income ratepayers in paying their bills through such programs as the Low Income Home Energy Assistance Program (LIHEAP), charitable fuel funds, levelized billing, discounts, home weatherization, energy efficiency, energy usage education and debt management. If all Americans live in weatherized and energy efficient homes and have the income to pay their full share of utility bills, all other ratepayers would save nearly $6 billion in poverty costs, including fuel assistance, lifeline and other rate assistance, weatherization and efficiency costs, the costs of late payments and service disconnections (Oppenheim and MacGregor, 2007).      

                                      

Recommendations  

              From the above analysis it is clear that poverty remains pervasive due to the economic system, social stratification and welfare measures. According to Iceland (2003) on one hand, economic growth and technological changes contribute to increase in wages and overall standard of living. Economic growth accompanied by rising education levels improves the condition of people. On the other hand, the market economy often exerts a contrary effect on poverty levels (Iceland, 2003). To maximize profits, businesses usually seek to pay low wage to workers which increase inequality and poverty. Again policy may increase or decrease the harmful effects of inequality. Combining the factors emphasized by both liberals and conservatives, poverty is multifaceted. I believe that a strong national effort would alleviate poverty. Employment opportunities for all so that that worker and their families can avoid poverty, meet basic needs and save for the future. Increasing hourly wages would definitely improve the condition of these people. A smaller share of unemployed low-wage workers, receive unemployment insurance benefits. I believe that states (with federal help) should reform “monetary eligibility” rules that screen out low-wage workers, broaden eligibility for part-time workers and workers who have lost employment as a result of compelling family circumstances. Workers should use this period of unemployment and the money received from the Unemployment Insurance System and upgrade their skills and qualifications. Thus adults should have opportunities throughout their lives to connect to work, get more education, and live in a good neighborhood and move up in the workforce.

                         Child care assistance to low-income families and emphasis on K 12 education would definitely reduce the rate of poverty in the United States.                          Low-income youth hardly attend college than their higher income peers. Pell Grants play a crucial role for lower-income students. Simplification of the Pell grant application process, and encouragement of institutions to do more to raise student completion rates would definitely improve the condition. Expansion of Pell Grants would make higher education accessible to residents of each state. The states at the same time should also develop strategies to make postsecondary education affordable for all residents. Expansion of the Saver’s Credit would encourage saving for education, homeownership, and retirement. As a result all Americans would have assets that would allow them to weather periods of volatility and to have the resources that may be essential for upward economic mobility. Apart from Saver’s credit, expansion of Earned Income Tax Credit would raise incomes and helps families build assets. Thus there should be opportunity for all so that children grow up in conditions that maximize their opportunities for success.

          

  

                           

                       

                                   

                            

                            

                      

                             

References:

Blank Rebecca (2007); Poverty to Prosperity; Center for American task force on Poverty;

www.americanprogress.org/issues/2007/04/pdf/poverty_report.pdf – Similar pages

Colorado Statewide Homeless Count (2007), School of Public Affairs, University of Colorado, denver.www.dola.state.co.us/cdh/Publications/Winter_2007_Statewide_PIT.pdf – Similar pages

Cook Richard (2007), Poverty in America

www.globalresearch.ca/index.php?context=va&aid=5905 – 61k – Cached – Similar pages

Corley Mary Ann (2003); Poverty, Racism and Literacy; ERIC Clearinghouse on Adult Career and Vocational Education

Danziger Sheldon (1999), Welfare Reform Policy from Nixon to Clinton, Institute for  for Social Research, University of Michigan.

De Navas-Walt, et al., “Income, Poverty and Health Insurance in the United States: 2005.

Diana Pearce Diana Pearce (1978) “The Feminization of Poverty: Women, Work, and Welfare,” Urban and Social Change Review.

Iceland John (2006); Poverty in America; University of California Press

Isidore Chris (2008); the Trillion-Dollar Mortgage Bomb,

money.cnn.com/2008/04/21/news/economy/fannie_freddie/?postversion=2008042103 – 66k –

James Tobin (1993); Poverty in Relation to macroeconomic Trends, Cycles and Policies; Cowles foundation discussion paper.

                  

Online Travel Bargain

Are holiday bargains for true or have catches hidden?

REMEMBER YOUR LAST CONVERSATION WITH THAT family relative who couldn’t talk enough of how much they saved on their last holiday package deal? Or that colleague bragging about his $59 round- trip flight to Las Vegas and his stay in a 5-star hotel at $89 a night? Have you found yourself staring wistfully (and suspiciously) at a $399 package deal for two for Hawaii?

Just because your email seems flooded at times with seemingly impossibly priced travel offers, and you find Internet search engines are flooded with 1000’s of sites selling internet travel besides big hotel brands and branded distribution sites don’t discount them all.

Who can you count on?
Just four or five years ago, when you looked for travel discounts you could choose between a travel agent, the airline offices and the hotels themselves, and maybe, if you were lucky, some travel guru down the street. Today, there’s a massive range of things you can do online, and a lot of them can save significant amounts of money.

The reality is:

• Nine out of 10 online travelers now have some history of shopping for travel online, and nearly 15% of all Americans purchased travel online last year – that’s five times the penetration rate of 1998. (PhoCusWright Consumer Travel Trends Survey)• Nearly one-third of online travel buyers say the Internet was responsible for their travel purchases last year.

• In 1998, six million consumers bought travel online in the U.S. Jump ahead to 2002 when 30 million Americans purchased travel online in the last year. Half of them only buy their travel online. (PhoCusWright Consumer Travel Trends Survey)

• Online travel bookings exceeded $23 billion in 2001, and are expected to reach $63 billion by 2005.

• Internet bookings in the first three quarters of 2002 accounted for over 23% of rooms sold in New York, and over 15% in Los Angeles, Chicago, and San Francisco. Anecdotally, for some properties, hotel managers are reporting Internet bookings ranging from 30% to 50% of all room nights in 2002. (Smith Travel Research and Travel Click)

What does this mean?

This means that online distribution channel is extremely successful in reaching buyers and buyers are finding it more confirmable to shop online. They are seeing a broader range of travel options and variety of products and packages. And it’s more likely that consumer wants to control that transaction through access to more competitive pricing. Pricing is becoming key factor to determine the sale.

Key factors: Why travelers prefer to book online

• Competitive Price
• Ability to compare product and Prices
• Ability to plan last minute
• Availability of Range of options

Online travel shoppers are not very loyal on where they shop—65 percent of online travelers do not view themselves as brand-loyal. As much as they love to shop online and spend their time researching what suits their needs, they are not loyal to the companies from which they buy.

The above scenario indicated that the travel suppliers have no choice but to participate in this online distribution channel. The suppliers are realizing that the traditional channels like GDS (Global Distribution System)/travel agent and call center/reservation office is somewhat inefficient and expensive, especially when the economy is weak. Ignoring online distribution channel and concentrating only on traditional distribution channels will result in lower occupancy, and higher distribution and operational costs for travel suppliers. As online channels become more popular among suppliers their participation is increasing.

How Pricing and Distribution Become Key

9/11 caused a dramatic shift in how consumers booked their travel. The instability caused a large drop in demand for airlines, hotels and car rentals leading to ever-lower prices. This low demand factor forced travel suppliers to introduce unprecedented discounts. Travel suppliers struggled to sell seats, rooms, car rentals to a significantly shrunk leisure and business travel market. Every air seat, room and auto not booked cost their companies money. Better to sell dirt cheap than not to sell at all. But how to get the word out?

Smart, proactive suppliers adopted the Wal-Mart business model—sell low and distribute inexpensively and efficiently. But how?

The Internet allowed them to reach consumers, sell inventory outstrips their less progressive competition. Those suppliers who had no clear Internet strategy or understanding of how the Web and online distribution works suffered.

Discount hotel sites attract millions of buyers with their special rates leading to stratospheric sales through these channels. They thrive on hoteliers selling their distressed inventory at a fraction of their normal rates. Occupancy is the lowest it’s been in years, hoteliers continue to work with leading online retailers to move inventory at lower price.

The $6.3 billion in online hotel sales (2002) with are split roughly evenly between discount agency sites and hotel Web sites. PhoCusWright projects that around 75% of discount agency hotel site sales are via the merchant model, where the agency typically takes a 20-30% “margin” on the hotel net rate (instead of the usual 10% commission). This approach has helped profits at Expedia and Hotels.com, who have roughly 60% of online discount agency hotel sales. Travelocity and Orbitz are instituting the same successful approach. Other notable players thriving in this arena are Hotwire.com, http://www.hotels-and-discounts.com , Lodging.com and Travelweb.com.

What is the Future?
Online travel growth will continue to grow in 2003-2005, but it will slow down year by year compared to the record gains see so far. However millions of travelers haven’t yet made their first purchase so the market is not near saturation. Technological improvements will soon make it possible to more easily dynamically package vacation deals including air, hotel and car leading to even lower prices but higher average sales. So growth is projected to come from customers buying more, higher-ticketed products online.

The growth of the online distribution channel will prove beneficial to the end user when the suppler finds it easier and more cost-effective to distribute their inventory there than over the traditional distribution channels. As technology becomes mature in the online distribution sector, it will become more effective and user friendly for the Buyers and thus will attract more Suppliers. Due to its low cost of distribution and emerging ability to package and cross sell inventory, prices will be attractive for years to come, until this channel eventually becomes a commodity.For more useful tips & hints, please browse for more information at our website :- <a onClick=”javascript:pageTracker._trackPageview(‘/outgoing/article_exit_link’);” href=”http://www.adsence-dollar-factory.com”>http://www.adsence-dollar-factory.com</a>                                     
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Pre-concert dinner in Nob Hill area

Chowhound’s Latest » San Francisco Bay Area — Sun Nov 01 12:00:00 UTC 2009 Before the concert at Palace of Fine Arts we went to Liverpool Lil's – easy walking distance, great burgers and fries, very good draft beer options, unpretentious pub atmosphere. Fish looked good too

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Pre-concert dinner in Nob Hill area

Aziza

Chowhound’s Latest » San Francisco Bay Area — Sun Nov 01 12:00:00 UTC 2009 What restaurant last night where the large size portions were a turnoff? about: Aziza What restaurant Restaurant at: Aziza

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Aziza

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