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~ USA Headed for a 5th Revolution! Why?

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Author Archives: Jordan Abel

#190 Big Bang Theory at a Bottling Plant? (Part #2)

27 Sunday Mar 2016

Posted by Jordan Abel in Diversions, Personal Stories

≈ Leave a comment

First-time readers, this blog is set in the future (sometime after the year 2020).  Each entry assumes there has been a 5th revolution in the US — the Revenge Revolution.  More about Revenge Revolution and author, Entry #1.  List and general description of entries to date.  Annual assessment whether Revolution plausible.

Note: most characters appear in a number of entries, with many entries building on previous conversations.  Profile of characters.  You’ll catch on quickly.  Thanks for your time and interest…and comments. 

Scene: Jordan invited to dinner at the White House. POTUS’ family is away and he and Jordan are having dinner in the living quarters. POTUS asked the conversation not be about politics and suggested discussing a more fun topic such as the formation of the universe. Conversation begins #189.

Jordan: “By the way, what’s for dinner?”

PigsPOTUS: “For you, North Carolina pork BBQ. Just kidding. But we are having beef BBQ – Texas style.”

Jordan: “What a pleasant surprise. But I never think of BBQ and White House dinners in the same sentence.”

POTUS: “Usually not. In the living quarters, life is different. We try to eat like real people.”

Jordan: “Funny you mention that.”

092615_2031_Characters10.gifPOTUS: “You mean real people or food?”

Jordan: “Both. The other day someone asked me about the most fun time I could remember when food was involved.”

POTUS: “…and?”

Jordan: “I could remember the occasion but not what food was involved. What stuck Turtleneckwith me was the fun with friends, not what we ate.”

POTUS: “So food doesn’t really matter?”

Jordan: “I’m no one’s connoisseur of food or wine. But I’ve eaten all over the world — in some great restaurants and not so great restaurants.”

POTUS: “So the food doesn’t really matter to you.”

Jordan: “The food can’t be awful. For me, though, the best part is being with friends.”

POTUS: “You told me one time about a group of friends that got together for dinner pizza-007once a month. Some or all of the group met during the week for pizza. You had a funny name for those pizza dinners.”

Jordan: “We’d meet on Tuesday and the dinners were known as Crappy Pizza Tuesday.”

POTUS: “That’s it, Crappy Pizza Tuesday. Was the pizza that bad?”

Jordan: “Not really. We needed a name for the evening and Crappy Pizza Tuesday seemed to stick.”

POTUS: “Give me another example where you ate out, but food didn’t matter.”

Jordan: “When I worked in Manhattan and we lived in Connecticut, a group of guys diner-counter-fifties-sixties-complete-accessories-36259280used to meet Saturday mornings at the Driftwood Diner in Darien.”

POTUS: “Sounds like fun.”

Jordan: “It was great. We still see each other periodically but also all miss kibitzing at the diner.”

Waiter: “Mr. Abel, another glass of wine?”

Jordan: “Yes, Andrew, please. And where did that wine come from?”

Andrew: “Another one of your spots, sir. Sonoma County.”

napa_2_139373Jordan: “It’s very good. Do either of you know what they make in Napa?”

Andrew: “Wine, sir?”

Jordan: “Nope. They make auto parts. An old Sonoma County joke.”

POTUS: “On that note, let’s eat and get back to our earlier conversation about the universe.”

Jordan: “Alright, back to using my brain again.”

POTUS: “Your question about where the matter for the Big Bang came from – when did you first think about that? Some physics class?”

Jordan: “Want the truth?”

POTUS: “Please.”

Jordan: “During summers when I was in undergrad, I worked in a Pepsi bottling plant.”

Pepsi_LogoPOTUS: “A real mentally taxing job.”

Jordan: “With one year of college I had more education than everyone on the floor except the plant manager. But I liked the guys and we had great fun.”

POTUS: “What’d you do at the plant?”

Jordan: “I moved up from loading trucks by hand to lift-truck operator. We worked lots of overtime so I would switch jobs occasionally. One night I was monitoring bottles coming out of the giant washer…”

POTUS: “…sounds really boring.”

Jordan: “It was boring. So I used the time to think about different things.”

BigBangTheoryPOTUS: “That’s when the question about the Big Bang hit?”

Jordan: “Sort of an odd place to think about how the universe was formed, but, yes, that’s when the question hit me.”

POTUS: “You’re not the first guy to ask the question.”

Jordan: “Of course not. So far no one seems to have a credible answer.”

POTUS: “Some people might argue a higher being as responsible.”

Jordan: “I agree with that idea. Still the question remains, where did the higher being get the stuff for the Big Bang?”

POTUS: “If I interpret you correctly, you think earth could be part of an experiment in some being’s laboratory?”

Jordan: “Think about it. The universe is, in many ways, structured like a bunch of atoms and sub-atomic particles. The primary difference is size.”

Milky WayPOTUS: “Interesting point. We think sub-atomic particles are small and the universe as large. To someone else the universe could be small.”

Jordan: “Ever look through a microscope at say water from a murky pond?”

POTUS: “I did in biology class. Amazing all the little creatures that live in a few drops of water.”

Jordan: “To those little guys, how big does the pond seem…let alone a lake or ocean?”

amoeba_14653_lgPOTUS: “Huge. To an amoeba, the distance from one side of a pond to another must measure billions of something.”

Jordan: “Distance is a relative measure. To the amoeba, the pond might as well be the Milky Way, maybe larger.”

POTUS: “Never thought about it before but what if humans are amoebas to some other set of beings?”

Jordan: “That’s my point. We don’t know. A lot of people on earth think humans are the highest level in the food chain – and the smartest.”

POTUS: “They also believe no human-like creatures exist anywhere else in the universe.”

chanceJordan: “To those who believe humans are unique, I have two questions: (i) what do you think the probability is that life exists only on one planet out of how many universes – millions, if not billions?”

POTUS: “Chances are just about zero. What’s the second question?”

Jordan: “Why should earthlings be the most advanced?”

POTUS: “You’re saying if there are 100 planets in the various universes that have life — 100 is probably low number but stick with it — then earth would have 1 in 100 chance of being the most advanced.”

Jordan: “Now you got it.”

POTUS: “All this while watching Pepsi bottles coming out of a washer?”

Jordan: “Strange, huh? Andrew, could you please…”

.

#189 A Diversion. Questions about the Universe. (Part #1)

20 Sunday Mar 2016

Posted by Jordan Abel in Diversions

≈ 2 Comments

First-time readers, this blog is set in the future (sometime after the year 2020).  Each entry assumes there has been a 5th revolution in the US — the Revenge Revolution.  More about Revenge Revolution and author, Entry #1.  List and general description of entries to date.  Annual assessment whether Revolution plausible.

Note: most characters appear in a number of entries, with many entries building on previous conversations.  Profile of characters.  You’ll catch on quickly.  Thanks for your time and interest…and comments. 

Scene: Jordan has returned to Washington after recovering from surgery. During an earlier call, POTUS asked Jordan to let him know when he had returned.

Jordan: “Gelly, could you please let POTUS’ staff know I’ve returned? I’d call but I’m not sure they know who I am. And you know most of them.”

092615_2031_Characters7.gifGelly: “They know who you are, Jordan. But, yes, I’ll call. When should I book the meeting?”

Jordan: “Any time. I’ll work around POTUS’ schedule, of course.”

Gelly: “Nice to hear you’re so accommodating to the president.”

Gelly: (30 minutes later.) “You’re set for tomorrow night. You’re going to have dinner at the White House.”

Jordan: “Informal dinner, I hope.”

Gelly: “Yes, in the living quarters. You must be a big dog now.”

092615_2031_Characters10.gif(Next evening Jordan is escorted to a private dining room in the White House.)

POTUS: “Good evening, Jordan. Glad you’re feeling better. And glad you are back in the land of make believe…I mean Washington.”

Jordan: “Thanks, Mr. President. Looking forward to chatting. Where is everyone?”

POTUS: “We’re it. The family is at some function where my presence would cause too much disruption…or at least that’s what I’m told. So, I get to kick back, relax and have dinner with a friend.”

TurtleneckJordan: “Well, I’m honored. This should be a fun evening.”

Waiter: “Your usual cabernet, Mr. Abel?”

Jordan: “Yes, Andrew, please. Nice to see you again.”

Andrew: “Nice to see you, too, sir.”

POTUS: “Jordan, so here’s the agenda for the evening…”

Jordan: “Discuss plans to rebuild US manufacturing and the middle class?”

POTUS: “Nope. Not tonight. We’re going to discuss fun stuff. No politics, no Rantcomments about Senate Republicans ranting about a qualified Supreme Court nominee, no discussion of some long-term economic plan. Nothing serious…or at least nothing we can do anything about.”

Jordan: “Ok, then are we talking sports?”

POTUS: “We could. What about something a little more cerebral…like the universe?”

Jordan: “Huh? The universe? Where’s this headed?”

122913_1337_14BringingU2.pngWaiter: “Your cabernet, sir.”

Jordan: “Andrew, you arrived just in time. My head was starting to spin.”

POTUS: “Well it was Pi Day a few days ago.”

Jordan: “You serious about not being serious?”

POTUS: “Yes, Yogi, I am serious about not being serious. Now, let’s talk about the universe.”

Jordan: “What prompted this discussion, anyway?”

POTUS: “Seems as if every few weeks or months anyway there is another revelation about the vastness of the universe. It’s really mind-boggling.”

albert-einsteinJordan: “I hear you. A few years ago – what 2015 or 2016 – they confirmed Einstein’s theory about black holes. The data came from some galaxy that was a few billion light-years away.”

POTUS: “That’s what I mean. How far back does a million years go, let alone a billion?”

Jordan: “A million years ago we’d be more concerned about dinosaurs than crazy politicians.”

POTUS: “Think about what we call space. Billions of light years in diameter.”

Jordan: “Wonder if the circumference is 3.14 times the diameter?”

POTUS: “Makes me realize how small and insignificant we all are.”

Jordan: “Tell that to some congressional reps.”

POTUS: “So here’s earth, just a very small party of the Milky Way. And then there are Milky Waymillions, if not billions of other galaxies.”

Jordan: “Some of the galaxies must be like the Milky Way.”

POTUS: “With some type of functioning inhabitants…like on earth. And some of those inhabitants are likely far more advanced than humans.”

Jordan: “Here’s what I’ve never been able to understand. Really two things I can’t understand.”

POTUS: “Only two things you don’t understand? That was too easy, Jordan. I couldn’t pass it up. OK what are they?”

BigBangTheoryJordan: “If there was a big bang, which seems to be the prevailing theory, then where did the matter come from that exploded for the big bang? There had to be some matter. So where did it come from?”

POTUS: “What’s the second item?”

Jordan: “How did plants and animals evolve?”

POTUS: “Can we hold those questions. Andrew says dinner is ready.”

(To be continued)

#188 Is Pushing Diversity Like Pushing on a String? (Part #12)

09 Wednesday Mar 2016

Posted by Jordan Abel in Gov't Policy, Innovative Thinking: Ideas and Products, Rebranding Black Community, Societal Issues

≈ Leave a comment

First-time readers, this blog is set in the future (sometime after the year 2020).  Each entry assumes there has been a 5th revolution in the US — the Revenge Revolution.  More about Revenge Revolution and author, Entry #1.  List and general description of entries to date.  Annual assessment whether Revolution plausible.

Note: most characters appear in a number of entries, with many entries building on previous conversations.  Profile of characters.  You’ll catch on quickly.  Thanks for your time and interest…and comments. 

Scene: Jordan and Rock Man, a long-time friend, are having coffee. Rock Man is visiting relatives near Charlotte. Earlier Jordan and POTUS began conversation about rebuilding US manufacturing and the middle class. Series starts #177; conversation with POTUS, #179.

092615_2031_Characters5.pngRock Man: “Jordan, really nice to see you. Glad you are on the mend.”

Jordan: “Nice to see you, Rock Man. Yeah, I’m pleased with progress on recovering. Enough about me. What’s new with you?”

Rock Man: “All is OK on the home front. Aside from the family, I’ve been working with a group to promote diversity.”

Jordan: “Diversity in what?”

Rock Man: “You know, get companies and organizations to be more diverse — more inclusive and more balanced.”

TurtleneckJordan: “You mean like the effort to make the Academy Awards include more ethnic groups?”

Rock Man: “Yes, good example.”

Jordan: “And what do you hope to accomplish with all this diversity?”

Rock Man: “Have people understand issues facing minorities. And give minorities a better chance.”

Jordan: “Better chance at what?”

Rock Man: “Being successful.”

Jordan: “Pardon me for sounding like some curmudgeon, but what’s holding people back now?”

Rock Man: “Racism.”

Jordan: “Surely you jest.”

TrumpRock Man: “You sound like some old white guy. You vote for Trump?”

Jordan: “Rock Man, racism has been around for thousands of years. And you know what?”

Rock Man: “Racism is going to continue for a few thousand more years?”

Jordan: “Well, well, now he gets it. Besides blacks aren’t the only group that’s been subject to racism. When you were in central Africa…”

Rock Man: “…I know, the roles were reversed. Blacks were the majority and whites were discriminated against.”

Jordan: “I sound like a broken record, but every ethnic group in this country has been discriminated against. And all but one of those groups has moved on.”

Rock Man: “You’re being awfully harsh. Blacks face special problems.”

Jordan: “Like what?”

Rock Man: “Blacks were slaves.”

Jordan: “So were some other groups. Besides, blacks haven’t been slaves for 150+ years. Now, tell me the next issue.”

Rock Man: “Why do you not understand?”

Jordan: “I do understand.  To me the issue seems rather straightforward.”

PoliceRock Man: “Well, then, how are we going to stop racism?”

Jordan: “That’s the issue.  You are going to stop it. So rather than spend time on a issue that’s not going away, focus efforts on solutions to get blacks out of poverty.”

Rock Man: “We’ve had this discussion before. Bottom line is blacks need jobs.”

Jordan: “OK, then take the long view and start educating blacks to become more valuable to prospective employers.”

Rock Man: “We need jobs now.”

Jordan: “So do a lot of people need jobs now. You want some advice?”

Rock Man: “Not sure. What’s the advice?”

WhiningJordan: “Quit whining about being black and start working toward getting citizens out of poverty.”

Rock Man: “It would be a lot easier if…”

Jordan: “…easy it won’t be. I can guarantee that the continued whining and demanding more inclusion – really quotas in disguise – won’t result in any progress. In fact, all the emphasis on quotas…”

Rock Man: “…diversity, not quotas.”

Jordan: “C’mon. You might want me to be politically correct. Diversity implies quotas. If you’re not careful, the whole diversity effort will backfire. What would really be ironic is if the public started demanding more white guys in the NBA and NFL.”

Rock Man: “OK, then smart guy, if emphasizing diversity is like pushing on a string, then how do we make this work?”

Jordan: “POTUS has a project to bring more manufacturing jobs back to the US. If I were you, I’d spend my time trying to get jobs back in Detroit, Flint, Chicago, Cleveland and other cities with high percentage of blacks.”

Rock Man: “How do I start? What’s the first step?”

Jordan: “To me, the first step is getting black leaders – and even unions in those cities — to recruit skilled black workers. Then contact companies that need skilled workers and demonstrate how you can help the companies.”

Rock Man: “The program seems so simple. Will it work?”

Jordan: “I don’t know. But the program is a start. A good model is what’s going on at some universities to admit students who might not qualify otherwise.  Here’s an article from the NY Times.  You might recognize a couple of schools noted — Davidson and UNC-Chapel Hill.”

Rock Man: OK.  I’ll take a look.  Davidson, huh?  They’ve come a long way.”

Jordan:  “Any effort to recruit minority skilled trades and other qualified workers should gain support from both sides of the political aisle. POTUS is looking for practical ideas that can be implemented without a bunch of government involvement.”

Rock Man: “If I can get the project going, can you get to POTUS?”

Jordan: “No guarantees…but very likely.”

Rock Man: “OK, I need a refill.”

#187 Protecting National Security with Domestic Oil (Part #11)

02 Wednesday Mar 2016

Posted by Jordan Abel in Economics, Federal Budget, Societal Issues

≈ Leave a comment

First-time readers, this blog is set in the future (sometime after the year 2020).  Each entry assumes there has been a 5th revolution in the US — the Revenge Revolution.  More about Revenge Revolution and author, Entry #1.  List and general description of entries to date.  Annual assessment whether Revolution plausible.

Note: most characters appear in a number of entries, with many entries building on previous conversations.  Profile of characters.  You’ll catch on quickly.  Thanks for your time and interest…and comments. 

Scene: Jordan still in Charlotte while recovering from prostate surgery. Earlier Jordan and POTUS began conversation about rebuilding US manufacturing and the middle class. Series starts #177; conversation with POTUS, #179.

Jordan: (Phone rings) “Jordan Abel.”

021214_1242_24Resultsof1.gifPOTUS: “Jordan, POTUS. Sorry to bother you. Gotta couple of minutes?”

Jordan: “Absolutely, Mr. President.”

POTUS: “Good. I read your email on reconfiguring US manufacturing. Like the positioning – to make US smarter and more competitive. Forwarded the email to the staff for review and comments.”

TurtleneckJordan: “What else may I help with?”

POTUS: “Oil and gas production.”

Jordan: “In what way?”

POTUS: “The US has spent many years and billions of dollars trying to increase domestic oil production and free ourselves from OPEC. Now, OPEC continues to pump oil and deflate prices. As a result a bunch of US oil companies are ready to declare bankruptcy. They’re upside down on the cost of production for many oil and gas fields and running out of cash.”

oil-clip-art-2589801-illustration-of-oil-rigJordan: “So, the concern is if these companies go BK and US production declines, then the country will again become more dependent on OPEC.”

POTUS: “Exactly. Long-term we can solve the problem with other energy sources but long-term is 25-30 years. I’m looking for ideas how to balance national security and ensure domestic oil and gas production continues, even if oil is $30-35/bbl.”

Jordan: “One approach – and I know this will create angst with certain Republicans – is a national oil tax.”

POTUS: “How much and used for what?”

Tax CutsJordan: “Tax would be enough to bring oil up to at least $60/bbl immediately and $100/bbl longer term.”

POTUS: “That’s a big tax.”

Jordan: “Yes, but recall oil was $140 sometime in what CY2014 and then near $100 for a number of months after. And what happened to the economy? It continued to grow.”

POTUS: “OK, so let’s say we target $100 as the long-term price. Now what do we use the tax revenues for?”

metro-north1Jordan: “Two primary uses. #1 is the email your staff is reviewing — reconfiguring US manufacturing and infrastructure to become more competitive and spur economic growth. The country has lots of highways, railroads, airports and waterways to fix…plus we need to expand high-speed internet. And #2 is…”

POTUS: “…don’t tell me, subsidize the cost of oil and gas production?”

Jordan: “You got it.”

POTUS: “Subsidizing oil companies is such bad PR. No one likes oil companies other than people in Texas and Oklahoma…and some conservative groups. You feeling OK?”

Jordan: “I feel fine and yes, I know all the crap that’s going to fly. But the cost of funding of drilling and operating a new well can easily exceed $50/bbl. People forget the land owner gets 20-25% right off the top. States are not shy about taxing oil and gas production. Plus, you have to transport the stuff to a refinery.”

POTUS: “Point well taken. I’m not shedding tears for the oil companies but we’ve got to keep the US free from OPEC.”

Jordan: “There’s a bunch of oil available in the US. I’ll bet the amount of oil available on shore – not off shore – is 5x what’s been produced so far.”

PigsPOTUS: “That’s encouraging to hear. I know the drilling cost can be high but somehow we need to control the subsidies. We don’t want to oil companies thinking they’re at an ‘all-you-can-eat’ feeding trough.”

Jordan: “If we cap the market price at $100/bbl and limit imports, then the oil companies will have an incentive to continue to find new oil. We also need to encourage the companies to use newer technology for exploration and production.”

POTUS: “Like what?”

questionJordan: “First step would be more integration of software, updated drilling techniques and electronic sensors. Based on my thimbleful of knowledge of the oil and gas industry, they need to think more about how to incorporate newer technologies.”

POTUS: “So the companies that incorporate more technology to find oil…and to minimize environmental damage…would become the winners.”

Jordan: “Call it a ‘modified’ free market. But a market that encourages responsible production and reaps the benefits of lower cost.”

POTUS: “What about developing alternative energy – wind and solar?”

Jordan: “Both of those sources are free and independent of any foreign source. Some of the incentive dollars – oil-tax dollars – should be directed at solar and wind.”

POTUS: “I can hear the Republican protests now. ‘More government subsidies.'”

Jordan: “Maybe it’s time you had a heart-to-heart talk with the American people about fdr_~Fdrwho’s really getting subsidies. You know, an updated version of FDR’s fireside chat.”

POTUS: “Like explaining subsidies to defense contractors, followed closely by farmers. You mean like that?”

Jordan: “I’m not suggesting we stop such subsidies. What people need to understand is why such subsidies exist and how much the subsidies really cost.”

POTUS: “Defense contractors and farmers are needed for national security.”

Jordan: “And so is energy production needed for national security. To make the idea of subsidies more palatable, why not create an institute of technology…but one that’s focused on energy production.”

POTUS: “An institute of technology. (Laughing) Just don’t name the institute of technology for Texas or Sam Houston. People in Washington would have a field day with those acronyms.”

Jordan: “Those names would be funny. I’m certain your staff guys can come up with a good name.”

POTUS: “Let me think about your idea. I’ve got yet another meeting I’m off to. By the way, Jordan, are you back in town soon? We need to sit down away from the maddening crowd and have coffee.”

Jordan: “Should be back in a couple of weeks.”

POTUS: “Good. Let me know when and we can meet. Thanks for your time.”

Jordan: “You’re welcome Mr. President.”

#186 Reconfiguring US for “Smart” Manufacturing and “Smart” Infrastructure (Part #10)

24 Wednesday Feb 2016

Posted by Jordan Abel in Gov't Policy, Possible Solutions, Societal Issues

≈ 1 Comment

First-time readers, this blog is set in the future (sometime after the year 2020).  Each entry assumes there has been a 5th revolution in the US — the Revenge Revolution.  More about Revenge Revolution and author, Entry #1.  List and general description of entries to date.  Annual assessment whether Revolution plausible.

Note: most characters appear in a number of entries, with many entries building on previous conversations.  Profile of characters.  You’ll catch on quickly.  Thanks for your time and interest…and comments. 

Scene: Jordan still home recovering from surgery. He anticipates returning to Washington soon. He’s drafting a note as follow-up to a request from POTUS.  Series starts #177; conversation with POTUS, #179.

TurtleneckJordan (thinking out loud): “Maybe I should send POTUS an email with the basic tenants of the plan. That way he can review it and forward to others for review.”

To: POTUS@wh.gov, Subject: Ideas to Reconfigure US Manufacturing to be “Smart.”

Mr. President: this note outlines the framework of a plan to help reconfigure US manufacturing and infrastructure to be “smart.”  Being smarter will help US manufacturing become more  competitive and help restore the middle class.

021214_1242_24Resultsof1.gifThe program is also designed to be fair to US trading partners while recognizing this country needs to rebuild wealth generation capability.  The “working name” for the program is “ACT FAIRLY.”  One of your speech writers can come up with a sexier name.  My preference is “Get Smart” but could not make the acronym work.

The acronym FAIRLY stands for:

  • “F” – Favor US manufactured goods in government purchases. “US manufactured” would require 75.0% or more local content.
  • “A” – Allow foreign investment but limit the percent foreign market share in any one industry to 25.0%
  • “I” – Infrastructure – rebuild existing infrastructure and expand to be “smarter” and support additional manufacturing
  • “R” – Rebuild US factories to be “smarter” and retrain US workers to be “smarter.”
  • “L” – Legislation passed supporting the proposed program rather than implementing through an Executive Order
  • “Y” – “You” are responsible to implement. “You” refers to individuals, organizations and government entities.

carnacThe proposed program is admittedly more of a vision than a detailed plan. Think of yourself as the Great Carnac.  However, I do believe this type program needs a clear vision that is easily understood and one that can guide activities at multiple levels.

I like the an acronym like “FAIRLY” because the country has been so divided economically and socially. While each person might have a different view of how to “act fairly,” I think the outer boundaries of “fair behavior” are likely much closer together than if no reference points are set.  We need to mesh the combination of “fairly” and “smart.”

The following paragraphs provide a bit more detail. No doubt you will want to tweak for your own style. Thought this might be a good starting point.

F — Favor US Manufactured Goods. To me the Federal government and state governments should lead the way toward buying US-manufactured goods. One issue is 75 percentthe minimum level of “local content” to qualify for labeling as “US Manufactured.” My suggestion is 75.0% of the wholesale cost must be US content. The content can be raw material or labor or some combination. What cannot be labeled as “US Manufactured” is a product where most of the work is completed outside the US with only final assembly in the US. Final assembly creates little value add and does not create many higher-paying jobs.

Allow Foreign Companies in US. The 75.0% local content requirement still allows foreign companies to have a major US presence. However, the foreign share of any key US market should not exceed 25.0%. For example, virtually all the electronics sold in the US are manufactured outside the US. My question is ‘why?’ when the labor content of electronics is such a low percentage of total cost. If the foreign companies want to work with a US partner, OK, as long as local content is at least 75.0% of the wholesale cost.

The US is a huge market and 25.0% represents a very attractive opportunity for most companies. 25.0% of the US market is greater than 100.0% of most other countries. In addition, foreign companies can partner with US companies and be part of a “US Manufactured” product.

Infrastructure. President Eisenhower led the nation to build the interstate highway dwight_d_eisenhowersystem. You can lead the charge to rebuild physical transportation – roads, rail, air and water – and electronic transportation – the internet. Without the upgraded infrastructure, the economic effect of rebuilding the US manufacturing base will be much less. The transportation infrastructure needs to be more than just highways as favored by too many Congressional reps. The entire infrastructure needs to be rebuilt to be “smart,” allowing for smart/driverless cars, smart trains, smart planes and smart watercraft on inland waterways.

Like Eisenhower, you can position infrastructure rebuilding as part of national defense. Since every state will benefit from the improved infrastructure rebuilding program, Congressional support should be less of a hurdle.

Rebuild US Factories and Retrain Workers. As we’ve discussed, much of what is labeled in this country as “economic development” is really a wealth transfer from the public sector to a small group in the private sector. The ACT FAIRLY program needs to factory_07point out the cost penalties (i) associated with US-based companies relocating within the US; (ii) building greenfield facilities; and  (iii)abandoning existing facilities in another location. I think ACT FAIRLY should ban incentives for any intra-US relocation. ACT FAIRLY should also include payment to the existing host city for companies that relocate.

Why should US taxpayers subsidize companies to relocate when existing manufacturing facilities are available in Flint, Detroit, Cleveland, Buffalo, Chicago, New York and a host of other locations? Rebuild the facilities in these cities first before we allow greenfield facilities elsewhere. The greenfield plants need infrastructure. Why build new infrastructure when existing infrastructure exists? If taxpayers understood the true economics, they would not allow such shenanigans.

manufacturing-production-operations-jobsRe-educating workers is critical also. People are smarter and more willing to learn than we…societal we…give them credit for. If someone is offered a retraining opportunity and turns it down, then go to the next person in line. There are many people looking to improve their economic standing.

The retraining needs to include providing more access to classes in “skilled trades,” especially for high school students. College sounds glamorous but not everyone is suited for college nor interested in college. Besides “skilled trades” does not mean the person is not smart or well-educated.

TOH LogoOne of my “heroes” is Tom Silva on This Old House. Tom is an absolute master at solving complex problems using basic math in a very practical way. What’s his formal education? As I recall his profile on the TOH website, Tom graduated high school but did not attend college.

Legislation. While you might be able to issue an Executive Order to mandate the Federal government buys only goods with 75.0% US content, doing so would create Congressanother firestorm of charges of “overreach” and “dictator.” Provide the vision and the framework for the idea, then put the pressure on Congress to pass legislation. Some will squawk but the pressure from constituents will be considerable. People expressed their great frustration by initiating the Revenge Revolution. ACT FAIRLY is an excellent, low-risk opportunity for the House and Senate to start acting like adults.

You – Personal Responsibility. Using the bully pulpit I think you can begin to have mirror-clipart_jpgpeople look in the mirror and then begin changing their minds about why they should buy US-made products. Some companies will claim costs of US products will be higher and therefore not competitive,  However, when people start buying products that qualify as “US Manufactured” then the naysayer companies will begin changing. Same with government. People will begin to demand taxpayer dollars are spent on US-manufactured products and not products manufactured elsewhere.

Summary. Obviously the proposed program needs more discussion and analysis…and name tweaking. However, I caution those who might get involved not to get caught up in paralysis from analysis. Or, as my mother-in-law told her daughters when they were growing up, “Don’t get your panties in a wad.”

The ACT FAIRLY concept is sound and can be implemented. As POTUS you have a great opportunity to lead the transition from the Revenge Revolution to a more dynamic country and fair society. People want a change.

I’m available if you want to chat. Should be back in Washington in a couple of weeks. Thanks for the opportunity to present my ideas.

Best regards, Jordan

#185 One Person Can Make a Difference (Part #9)

17 Wednesday Feb 2016

Posted by Jordan Abel in Corporate Policy, General Motors, Personal Stories, Societal Issues

≈ Leave a comment

First-time readers, this blog is set in the future (sometime after the year 2020).  Each entry assumes there has been a 5th revolution in the US — the Revenge Revolution.  More about Revenge Revolution and author, Entry #1.  List and general description of entries to date.  Annual assessment whether Revolution plausible.

Note: most characters appear in a number of entries, with many entries building on previous conversations.  Profile of characters.  You’ll catch on quickly.  Thanks for your time and interest…and comments. 

Scene: Jordan still in Charlotte and on limited work schedule while recovering from prostate surgery. Jordan calls his office and talks to Gelly, his assistant. Earlier Jordan and POTUS began conversation about rebuilding US manufacturing and the middle class. Series starts #177; conversation with POTUS, #179.

Jordan: “Gelly, could you do me a favor, please?”

092615_2031_Characters7.gifGelly: “Yes, but only because you are so helpless.”

Jordan: “C’mon. I’m not helpless. I’m just a little slow getting around that’s all.”

Gelly: “I must say. Your recovery seems to be progressing more quickly than I anticipated. You pleased with progress?”

Jordan: “I’m pleased with progress and so is the doctor. I just need to make sure my expectations don’t race too far ahead.”

Gelly: “OK, so what do you want me to do?”

TurtleneckJordan: “POTUS called me at home. By the way, did you tell him about my surgery?”

Gelly: “I’ll never tell. And he certainly doesn’t need me to tell him what’s going on in your life.  Isn’t that what those agencies are for?”

Jordan: “We had a nice chat about the technology used in surgery.”

Gelly: “Only guys would talk about the machines and software used to cut them open and remove parts. OK, I’ll stop and listen.”

Jordan: “What we never got around to was a story I had promised to tell him. He said to call when I was feeling better.”

Gelly: “So, now you’re feeling better and want me to find out a good time for him to chat, right?”

pajamas-cJordan: “Yes, please. Earlier in the day is better for me. Thanks.”

Gelly: “I’ll make sure Little Jordan is not in his jammies when POTUS calls.”

Jordan: “You’re tough, Gelly.”

Gelly: “I harass you because I like you Jordan. When I stop harassing you is when you should be concerned.”

Next day Jordan receives call at home.

Jordan: “Jordan Abel, may I help you.”

white-house-clip-art1POTUS: “He doesn’t get it. Relax dude.”

Jordan: “Alright, Mr. President, I’ll relax. I’m just so programmed to answer the phone a certain way.”

POTUS: “I hear you. Gelly said you were ready to tell me the second story, which is about how one person can make a difference. If you have time, I’m ready. Is this another Buick story?”

Jordan: “Yes. Here’s the background. Buick spends lots of money modernizing an old Buickassembly plant. Production then resumes but quality lags.”

POTUS: “How bad was it?”

Jordan: “Second worst plant in North America.”

POTUS: “You mean 2nd worst for Buick?”

Jordan: “No, 2nd worst of any assembly plant in the industry. That’s all domestic plants down chartand all foreign-owned plants.”

POTUS: “Quality was that bad after all the money was spent modernizing the plant?”

Jordan: “Yes.”

POTUS: “Big problem.”

Jordan: “The main character in this story works in the Buick service department. Mid-level salary guy but his family is…”

POTUS: “…Let me guess. This is Flint and he’s the first of his family not working on the assembly line? How’d I do?”

Jordan: “Dead on. The family is 3rd or 4th generation hourly worker and 2nd generation UAW.”

POTUS: “What happens next?”

Jordan: “He comes to my office and borrows a report with all kinds of quality data and report-clipart-McLxyjKqi.jpegconsumer rankings. Like a JD Power report but it’s developed internally and has much more detail.”

POTUS: “Is he supposed to have the info in the report?”

Jordan: “No reason he can’t. But unbeknownst to me and any other department head, he takes the report and meets with the UAW.”

POTUS: “The same UAW guy you talked to. You know, the one whose son you mentored? Wasn’t he president of the UAW local?”

Jordan: “Probably but the same guy but I’m not 100% sure. Whoever he talked to, he reminded them his family had worked in the plant since Buick was founded in 1903. He also told them assembly linethe ratings were not Buick’s but from customers. Finally, he told them that if quality did not improve, the company was likely to close the plant and move production elsewhere.”

POTUS: “Close it, even though they’d spent all the money modernizing the plant?”

Jordan: “His analysis was spot on.”

POTUS: “What happened?”

Jordan: “I’ll tell you the results. How the idea was communicated with the rank-and-file, I have no idea…nor frankly, do I want to know. But what happened is quality started to improve quickly.”

POTUS: “Then what?”

Line chartJordan: “Within 18 months, the quality of the plant went from 2nd worst in the industry to 2nd best…and within a whisker of being first.”

POTUS: “in just 18 months? Really?”

Jordan: “Really.”

POTUS: “This guy get some kind of award?”

Jordan: “No one even knew about it or talked about until a few years later. Management knew that quality turned around but no other exec I talked to knew exactly what happened.”

POTUS: “So one guy did all this on his own?”

Jordan: “One guy started the ball rolling. But when you step back and think about, this Trust Meguy had more credibility with the UAW than the entire management team. They trusted him.  He wasn’t a suit.  He wasn’t out for some political gain…or some promotion. In fact, he risked getting demoted for going outside the system. But he didn’t worry about personal consequences. And he had credibility because of his family history.”

POTUS: “Quite a story. I keep shaking my head. Just one guy who did this on his own. Wow.”

Jordan: “One guy. No committee. No incentive other than trying to do the right thing and save jobs for his family and other members of the community.  And he’s not from guernsey-cow-9751central casting.  He’s overweight and low-key — in some ways reminds you of a Guernsey cow.  I mean that in a positive way…but you get the idea.”

POTUS: “Interesting profile for guy that made such an impact.  Did GM keep the plant open?”

Jordan: “The plant stayed open for another probably 20 years. They shut it as part of Pile-Rubble-186270the bankruptcy, and then demolished it. 100 years of automotive assembly history turned into a pile of rubble.”

POTUS: “As a country we’ve got to change. Stories like this one make me inspired by the effort of one individual. The story also makes me sick because 100 years of effort by a lot of people got tuned into a heap.”

sad-face4Jordan: “I still get upset with the ending to the story.”

POTUS: “What are we going to do, Jordan, to help rebuild US manufacturing? And get those middle class jobs back to Flint and many other locations.”

Jordan: “You want to talk now or later?”

POTUS: “I’ve got to run. And you probably need some rest. Let’s chat some more soon.”

#184 How Manufacturing in US Can Help Medical Patients, (Part #8)

10 Wednesday Feb 2016

Posted by Jordan Abel in Education Issues, Gov't Policy, Innovative Thinking: Ideas and Products, Personal Stories

≈ Leave a comment

First-time readers, this blog is set in the future (sometime after the year 2020).  Each entry assumes there has been a 5th revolution in the US — the Revenge Revolution.  More about Revenge Revolution and author, Entry #1.  List and general description of entries to date.  Annual assessment whether Revolution plausible.

Note: most characters appear in a number of entries, with many entries building on previous conversations.  Profile of characters.  You’ll catch on quickly.  Thanks for your time and interest…and comments. 

Scene: Jordan and POTUS continue conversation about rebuilding US manufacturing and the middle class. Series starts #177; conversation with POTUS, #179.

Scene: Jordan is at home in Charlotte.

Jordan: (answering phone), “Hello, Jordan Abel speaking. May I help you?”

POTUS: “Yes, you may help. This is POTUS. But Jordan, drop the formality. Relax. white-house-clip-art1You’re at home remember?”

Jordan: “How’d you know I was here, Mr. President?”

POTUS: “You know better than to ask that kind of question. How’s the recovery coming?”

Jordan: “Recovery coming along OK. Getting better each day.”

POTUS: “I didn’t know you had an issue. What hanged your mind and why surgery?”

Jordan: “The short version is long-time GP has been monitoring my PSA readings, Turtleneckwhich have been creeping up over the past several years. About 15 months ago he suggested I see a urologist.”

POTUS: “Higher PSA levels seems to be a problem for a lot of older guys…like you.”

Jordan: “And, you Mr. President, will probably have the same problem.”

POTUS: “I know. Being a big dog doesn’t make one immune from health problems. And we all get older. More details about what happened, please.”

Jordan: “I had biopsy 14-15 months ago and another late last year. After reviewing results from the second biopsy, which were still reasonably good, doctor recommended doctor-clipart-illustration-31325we explore treatment options.”

POTUS: “Why surgery versus some other treatment? Surgery seems so radical.”

Jordan: “Considered five primary data points. Following is my analysis, not the urologist’s, although I think he would agree with the general statements. For other people, the recommendation might be different.”

POTUS: “Understood.”

Jordan: “#1 consideration – to what extent was the cancer concentrated in the prostate or nearby. By removing the prostate, most if not all the cancer would be call centerremoved. #2, if follow-on treatment required, what options are available with each treatment? Some treatments leave few or even no options for follow-on. #3, what is the likelihood of negative effects following surgery? #4, what is the overall health of the patient. #5, what is the age of the patient? If I were much older and had other health problems, surgery might not be the best option, or even an option. But I’m relatively young and healthy so I needed a treatment that reduced the likelihood that prostate cancer would become a primary issue. If you consider all those factors, surgery seemed best for me. ”

POTUS: “OK but surgery’s been around a long time. I’ve heard some horror stories. Is there something different now versus say 5-10 years ago?”

Jordan: “Micro-surgery using robots. With the robots, really semi-robots since the surgeon still controls the movements, the precision is greatly enhanced and size of incisions reduced.”

POTUS: “Just out of curiosity, was the equipment made in the US?”

da-vinci-system-si-seated-surgeon-nurse-at-cart-400x235Jordan: “Forgot to ask. The brand name is diVinci. The diVinci system is a great example how technology can improve people’s quality of life and extend expected lifespan. The product would be a good example to include in your speeches about the importance of and benefits of US manufacturing.”

POTUS: “Are you OK if I mention your experience?”

Jordan: “You know I’m uncomfortable about personal acknowledgement. But, if citing a real person in the story, and one that you know, helps build credibility, go ahead. Lots of guys face the prostate problem and they should know diVinci is not your father’s surgery.”

POTUS: “Thanks for agreeing. There’s lot of areas where technology and manufacturing can help the medical community and patients. This will be a great example.”

Jordan: “”If you’ve got a few more minutes, I’ll tell you a couple of funny stories connected with the surgery.”

POTUS: “I’m all ears. Been a rough day and I need some humor.”

Jordan: “At discharge the nurse is running through her list of ‘do’s’ and ‘don’ts.” Part way through, she says “no sex.” At this point I break out laughing and ask her how I’m NO SEXsupposed to have sex when there’s a catheter inserted you know where.”

POTUS: “That’s funny. Sounds like a good skit for Saturday Night Live. You got another one?”

Jordan: “With this micro-surgery, some air is inserted in the body cavity to provide more space to operate.”

POTUS: “Sounds painful.”

Jordan: “I think the excess air in post=op was more painful that the incisions. Anyway the goal is to expel as much of the remaining gas as quickly as possible but without any undue strain. They don’t want you to press so hard you’ll damage the stitches and cause more bleeding. So you have to let the air work itself out.”

POTUS: “How long’s that take?”

Jordan: “I made no progress until later in the 3rd day.”

POTUS: “Progress being what?”

thumbs upJordan: “In the 50+ years I’ve known my wife, I don’t think she’s every complimented me on ripping one off.”

POTUS: “She complimented you? Wow, I need to remember that. What day was that…?

Jordan: “…Saturday.”

POTUS: “Then what?”

Jordan: “We started to laugh.”

POTUS: “Doesn’t laughing hurt where the incisions are?”

Jordan: “Hurts big time, but it was worth it. By the way, she’s been a real trooper, especially nurseabout emptying ‘the bag.’ She deserves the Clara Barton Home Nurse Award.”

POTUS: “Glad you are in good hands. Tell her I said hello. Also glad you are on the mend. Let’s chat more soon. We need to continue to discuss how to rebuild US manufacturing and the middle class. But when you’re ready.”

Jordan: “Thanks for calling, Mr. President.”

#183 Are Wall Street Traders Really Traitors? (Part #7)

03 Wednesday Feb 2016

Posted by Jordan Abel in Corporate Policy, Gov't Policy, Personal Stories, Possible Solutions, Societal Issues

≈ Leave a comment

First-time readers, this blog is set in the future (sometime after the year 2020).  Each entry assumes there has been a 5th revolution in the US — the Revenge Revolution.  More about Revenge Revolution and author, Entry #1.  List and general description of entries to date.  Annual assessment whether Revolution plausible.

Note: most characters appear in a number of entries, with many entries building on previous conversations.  Profile of characters.  You’ll catch on quickly.  Thanks for your time and interest…and comments. 

Scene: Jordan and POTUS continue conversation about rebuilding US manufacturing and the middle class. Series starts #177; conversation with POTUS, #179.

POTUS: “Jordan, you’re taking a tough stand. Aren’t you making it harder for white-house-clip-art1manufacturing companies? Won’t companies just leave…or just start the company outside the US and not worry about regulations?”

Jordan: “Might be making it a little more difficult. But a counter is having tax breaks for US made products.”

POTUS: “You talking about tariffs for imports? We’ve got all these trade agreements between the US and other countries.”

TurtleneckJordan: “What I’m suggesting is goods manufactured in the US – manufactured, not just assembled in the US – get some sort of tax relief. The goal is to make it less attractive for executives to locate outside the US.”

POTUS: “What about companies relocating in the States? Should there be some sort of penalty?”

Jordan: “Like banning Charlotte from recruiting companies from New York, Ohio, Michigan and elsewhere. Like I said earlier, recruiting from another state seems more like stealing to me.”

POTUS: “Couldn’t we allow states still to recruit but say ban any tax breaks or other type of incentives? Another approach would be to levy a tax on the company for relocating.”

Jordan: “Some type of tax or penalty seems reasonable. At a minimum companies should checkbook2pay for displaced workers and the loss in tax base in the community they’re bailing out of.”

POTUS: “What do we do about the influence of Wall Street? The Street seems to put lots of pressure on companies to meet quarterly earnings targets.”

Jordan: “I view the so-called pressure as an excuse by CEO’s to cut expenses and mask poor management. Some tweaks to operations are always necessary but the company is either being run fundamentally correctly or not.”

POTUS: “If the company is being run properly, any earnings shortfall in one or two quarters should work itself out. Is that what you’re saying?”

Jordan: “Exactly what I’m saying. Sophisticated investors understand that. Warren Buffett is a perfect example. Did he build the value of Berkshire Hathaway by focusing on quarterly earnings?”

POTUS: “No.”

DogJordan: “So there’s the lesson for investors. Be patient.  We’ve allowed the traders on Wall Street to gain the upper hand.  As a result management start to focus on the wrong issues.”

POTUS: “Are we letting the tail wag the dog, as it were?”

Jordan: “We…societal we…are letting Wall Street traders have too much influence on the way businesses are run. The time horizon for traders is minutes, not months or years. The political right would be apoplectic if they ever heard me say this, but the traders are more like traitors. They really don’t care about this country.”

traitorPOTUS: “C’mon. Wall Street traders are traitors? How can you say that?”

Jordan: “Because the traders have no loyalty to the company or the country. They do not care if a company goes under, the company moves production off shore and ruins a town. The traders care about one thing – making money on every trade.”

POTUS: “Keep talking.”

Jordan: “Think about it. Pension funds and individuals…but mostly pension funds…have large securities portfolios. What are the pension funds supposed to do?”

POTUS: “Protect the money of employees, current and former.”

Jordan: “Do you think the employees believe its smart business to ship jobs overseas and eliminate their own job?”

POTUS: “That seems like a silly question. Of course not.”

CashJordan: “Well, CEO’s are doing exactly that. Why? To boost quarterly earnings so some a-hole doesn’t start trying to drive down the stock price and encourage a hedge fund to begin a takeover. I sound like a broken record, but do you think for a microsecond the traders care about the company?”

POTUS: “I hear you Jordan.”

Jordan: “Who does care about the company, or at least should care about the company?”

POTUS: “Employees, the pension fund…”

Jordan: “…and maybe some of the executives. Then why do we have all these laws that permit manipulation of stock prices? Even worse is allowing investors to raid companies.”

POTUS: “How do you propose we stop that?”

Screwed-GuyJordan: “Mr. President, I don’t know. But what I do know is the American worker is getting screwed and wealth is being transferred from the worker to a small group of investors and some countries outside the US.”

POTUS: “What about unions? Wall Street and the execs are not the only ones playing this gig.”

Jordan: “I’m not naïve. Some unions were a problem 15-20 years ago. But they’re not now. And I contend the unions never were as big a problem as a lot of people claimed.”

POTUS: “I’ve heard stories where unions drove companies out of town.”

Jordan: “I have to. And there are likely a few examples. But people forget, unions are made up of people. People with kids and families. And people with feelings.”

POTUS: “Some people will claim you sound like some screaming liberal.”

Jordan: “For some issues, I probably am. I’ll give you an example of why I feel this way. Years ago, when I was at Buick, our department ‘hosted’ students during their men talkingco-op work period from Kettering University – it was General Motors Institute then. One session the son of the president of the UAW local was working in our department. A short time after the co-op work session ended, some of us attended a meeting with the UAW. The president and I chatted a while and then joined the rest of the group. I got all kinds of semi-nasty questions about why I was talking to the president.”

POTUS: “How’d you respond?”

Jordan: “I told ’em I was asking how his son was doing in school. And that the president thanked me for taking his son under my wing.”

POTUS: “You think that happens very often?”

Jordan: “Probably not, but it should. We were a couple of guys trying to help a young man get an education. What’s so terrible about that?”

POTUS: “Sounds as if both of you were trying to do the right thing. You have another example?”

Jordan: “Yes.”

POTUS: Remember the second story, please.  I’ve got to head to yet another meeting.”

(Continued)

#182 Company Relocations. Economic Development or Stealing? (Part #6)

30 Saturday Jan 2016

Posted by Jordan Abel in Causes of the Revolution, Corporate Policy, Gov't Policy, Possible Solutions, Societal Issues

≈ 2 Comments

First-time readers, this blog is set in the future (sometime after the year 2020).  Each entry assumes there has been a 5th revolution in the US — the Revenge Revolution.  More about Revenge Revolution and author, Entry #1.  List and general description of entries to date.  Annual assessment whether Revolution plausible.

Note: most characters appear in a number of entries, with many entries building on previous conversations.  Profile of characters.  You’ll catch on quickly.  Thanks for your time and interest…and comments. 

Scene: Jordan and POTUS continue conversation about rebuilding US manufacturing. Starts entry #179.

POTUS: “As you were saying, GM technically went bankrupt in the 1990’s but never white-house-clip-art1declared it. How so?”

Jordan: “Remember a company called GMAC?”

POTUS: “Wasn’t GMAC the finance arm of GM?”

Jordan: “Yes.  To help beef up the cash position and avoid being forced to declare bankruptcy, GM moved money from GMAC to the operating company.”

POTUS: “Isn’t that illegal?”

GM,_logoJordan: “Probably so but the financial guys covered their tracks very well. Part of the problem was caused by a number of accounting changes in the 1980’s during  Squeaky’s reign.  The accounting changes masked some earnings shortfalls.”

POTUS: “Pardon me for interrupting but whoever gave Roger Smith the name Squeaky deserves a drink.”

Jordan: “And I’ll buy.  Anyway, with all the accounting changes, it became very difficult to determine where there were real performance problems.  I’m not sure the finance guys really knew what was happening month-to-month.  Sales and market share kept dropping and the cash was no longer coming in…and they essentially ran out of cash in 1992.”

POTUS: “Without getting into more detail about GM, what policies should we consider to encourage manufacturers to stay in the US, or return to the US if they’ve left?”

TurtleneckJordan: “One issue that has always bothered me is the ability of companies to pick up and relocate with little or no consequence.”

POTUS: “Isn’t that a fundamental of capitalism?”

Jordan: “It’s very one-sided. Why should community and the employees make a commitment when the other side, the company, does not have to make a commitment?”

POTUS: “Are you saying the current system is unfair?”

Jordan: “Grossly unfair. And there are a couple of reasons why. First, the community Unfairand employees are often forced to make a financial sacrifice if the company threatens to relocate. Then the company can still pick up and leave.”

POTUS: “But, the community and employees have benefitted. The company has paid taxes and the employees have jobs. What’s not fair?”

Jordan: “The company has no downside risk. Heads I win, tails you lose.”

POTUS: “What if the company doesn’t sell product and make any money?”

Jordan: “Decisions that affect competitiveness are made by executive staff, not the employees or the town’s taxpayers. Failure to develop and introduce new product is a management issue, not an employee issue.”

POTUS: “What else?”

Jordan: “Laws in this country allow a company to bleed a community dry, and then taxpayerrelocate. As part of the relocation plan, the company demands prospective towns provide incentives.  It’s a shakedown.”

POTUS: “Many people consider that economic development.”

Jordan: “I consider it stealing. Its only economic development in the eyes of the city where the company relocates. And most of those cities are too lazy to develop businesses on their own.”

POTUS: “Jordan, that’s pretty harsh.”

Jordan: “Pardon me, Mr. President, but to call incentivizing a company to relocate ‘economic development’ is BS. The only people who gain in the deal are the executives of the company…and probably a few elected officials. The overall economy loses.”

POTUS: “Tell me why you think the economy is worse off.”

Jordan: “Employees and the community where the plant was located now have a lower Screwed-Guytax base, and very likely a higher welfare roll. They got screwed.  People where the company relocated have to absorb the cost of the incentives. They might not know it but they’ve been screwed.  Simple question, ‘Did employees’ wages increase?'”

POTUS: “No. Wages probably decreased except for the executives. Shareholders might benefit. I see your point.”

Jordan: “When you cut through the layers, relocation is another way to redistribute wealth…but disguised as economic development.”

POTUS: “How do we fix the problem, assuming we can convince people it is a problem?”

Jordan: “Convincing people should not be difficult. Start talking to people in cities where companies have left and see if they think its a problem.  And ask them who came out ahead.”

Fisher 21POTUS: “You mean people in cities like Flint, Buffalo, Cleveland…and a bunch of other places.”

Jordan: “You got it. The solution to such relocations…at least a partial solution?  Make the relocation costly…and difficult.”

POTUS: “Can a plan like that work?”

Jordan: “Look around Europe. Go no farther than Germany if you want to see if such an approach works.”

POTUS: “Lots of things work in Europe that don’t work in the US. National health care and gun control, for example.”

american-revolution-728714Jordan: “Attitudes in the US have changed since the Revenge Revolution. Now seems to be a good time to rethink whether we allow companies to pick up and move with no consequence.”

POTUS: “What if companies just declare bankruptcy and restart somewhere else?  And what about the unions?  Don’t they have some responsibility to keep a company from moving?”

(Continued)

#181 Flint, MI – Squeaky’s Sacrificial Lamb Kills the Middle Class (Part #5)

23 Saturday Jan 2016

Posted by Jordan Abel in Corporate Policy, General Motors, Personal Stories, Societal Issues

≈ Leave a comment

Scene: Jordan’s office a few days after POTUS’ first call re manufacturing and rebuilding the middle class.

092615_2031_Characters7.gifGelly: “Jordan, POTUS is on the line again.”

Jordan: “Hello, Mr. President.”

POTUS: “Hello, Jordan. Have a few minutes? I want to continue our conversation about rebuilding US manufacturing.”

Jordan: “My calendar is clear.”

POTUS: “Good. I understand the need to rebuild manufacturing and the middle class. But these are abstract concepts. If we are going to sell the idea, we need to personalize 092615_2031_Characters10.gifthe story. Make it so people can relate to it and understand what’s happened. You have an example or two in mind?”

Jordan: “You mean like what’s happened to Flint, Michigan?”

POTUS: “Wow, what a tragedy. They first lost all the manufacturing jobs, then they get hit with lead in their drinking water. Given your background, tell me what you think really happened in Flint. It went from a thriving community to being in the dumper. Why?”

TurtleneckJordan: “The very short answer is Roger Smith. He’s not the only reason but if you’re looking for the primary cause and way to personalize the story, look no farther than Roger Smith.”

POTUS: “Not sure who you mean.”

Jordan: “Ever hear about or see the movie, ‘Roger & Me’?”

POTUS: “Wasn’t that one of Michael Moore’s movies? He’s had some interesting ones. I’ve seen snippets of ‘Roger & Me’ but never the whole movie. What’s it about?”

Jordan: “About how Roger Smith, as chairman of General Motors, destroyed Flint.”

POTUS: “You think that’s true or was that just some Hollywood make-believe?”

Jordan: “My perspective is a bit different from Michael Moore’s. However, his lambconclusion is correct. Smith destroyed Flint. Flint became a sacrificial lamb.”

POTUS: “Seems like you’re taking an extreme position. Flint was a sacrificial lamb for what?”

Jordan: “Smith was chairman of GM throughout the 1980’s. He was also feared within the company, despite being known as ‘Squeaky’ to some insiders.”

POTUS: “Was he that bad? Was Squeaky…I love that name…a real ‘my way or highway’ kind of CEO?”

Jordan: “More like ‘my way or the guillotine’ kind of CEO. He was ruthless.”

flint-city-limits-signPOTUS: “So what made Flint different from other GM towns in Michigan? There’s what Lansing, Pontiac, even Detroit. What’s so different?”

Jordan: “Because Flint is where the UAW forced GM to recognize the union.”

POTUS: “But didn’t GM start in Flint with Buick? Flint was GM’s hometown. Who was the guy that started GM.? Wasn’t Sloan. What was the guy’s name?”

Jordan: “William C. Durant, aka Billy Durant.”

POTUS: “That’s the guy. If GM started in Flint, then what’s the big deal about the union?”

Jordan: “Roger hated the UAW. He never forgave the rank-and-file or the people of sitdown strikeFlint for participating in the sit-down strike of 1936.”

POTUS: “You’re really into GM history aren’t you? The strike was 45, almost 50 years before Smith became CEO. The strike was ancient history.”

Jordan: “Not to Roger, or many other people. You know Gelly, right?”

POTUS: “I talk to her when I call. Very pleasant by the way. I’ve never met her in person. Why?”

Jordan: “Her grandfather participated in the sit-down strike at Fisher #1 in Flint. She said he talked about it until the day he died. She’s 3rd or 4th generation auto family. Or at least she was until Smith’s reign of terror.”

POTUS: “Not to sound like an attorney for the defense, but did you ever see any memos or plans to destroy Flint?”

Jordan: “You know better than that counselor. My conclusion is based on his patterns of behavior in other situations. Also, I also looked at the number of facilities in Flint that were shut down in Smith’s reign compared to other locations. Disproportionately high.”

BuickPOTUS: “Maybe true but wasn’t GM losing share during the 1980’s? As I recall, GM was losing ground and imports were gaining ground.”

Jordan: “Except Flint’s hometown car, Buick, actually held its own during the 1980’s…and set a sales record.”

POTUS: “I’m certain you had no influence on that. Look, I can’t argue with your logic. You saw the company from the inside. You also analyze situations differently than most people. That’s why I call you. One question, ‘If Smith GM,_logowas so bad, why didn’t GM go bankrupt in the 1990’s? They didn’t go BK until what 2008-2009?”

Jordan: “They did go BK in the 1990’s…but not officially. I’ll tell you why.”

(Continued)

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