#110 Does the Plan Pass the “Practical” Smell Test? (Part #6)

29 Thursday Jan 2015

Posted by Jordan Abel in Economics, Infrastructure & Fixed Fuel Prices, Innovative Thinking: Ideas and Products

Scene: Jordan alone in office working on the paper for POTUS. Earlier POTUS asked Jordan for ideas how to convince politicians and the public that it would be a good idea to fund rebuilding US infrastructure by fixing the price for gas and diesel fuel. The paper is overdue, POTUS is frustrated and Jordan struggling to finish because of a series of interruptions. Original conversation with POTUS Entries #104, #105.

Jordan (talking to himself): Alright, I really need finish the draft. POTUS mentioned the need for rebuilding infrastructure in the State of the Union speech. Now people are asking for details. Why am I so far behind on this?

I’ve got most of the draft completed. What’s left to cover? Plan details will take a while to hammer out. However, I need to make sure the plan is reasonably practical before it hits the press.

Practicality – does it pass the smell test? Is the plan practical or is this some ‘inside-the-beltway’ mirage that has no chance in the real world?

Setting a fixed price for fuel – gasoline and diesel – is practical. Setting the price is the easy part.

What about profit margins? The oil-and-gas executives and the fuel-station operators could gouge prices under this plan given half a chance.

What if the plan ensured that the infrastructure tax – quit calling it a tax? The “infrastructure investment” would be limited to say $2.00 to $2.50 per gallon? Having a ceiling on the amount of infrastructure investment would be an incentive to the oil-and-gas companies to increase domestic exploration and production. The ceiling would also encourage the companies to reduce costs.

Funny, I suspect the oil-and-gas guys will scream about more government intervention with this proposal. But they don’t seem at all upset that the industry and the companies are whipsawed by a limited number of oil traders, who basically decide the price of oil.

I need to ask these guy, “Would you rather have fate in your own hands or someone else’s?” But Texas being Texas, I can hear them now.

If they’d stop and think about how the proposal could benefit them directly, they might support it. As crazy as it first seems, under this plan the oil-and-gas companies could increase profits and have a more predictable cash flow. But they’ll never buy that idea on their own.

I need to find a respected oil-and-gas executive who can carry the torch on this idea. And I know just who to call. He’ll say no at first, then have a drink or two, sleep on it and call back saying he supports the idea. I need to call him. (To be continued)

#109 Privatizing Functions of Gov’t: the Fallacy (Part #5)

20 Tuesday Jan 2015

Posted by Jordan Abel in Economics, Infrastructure & Fixed Fuel Prices, Innovative Thinking: Ideas and Products, Possible Solutions

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Scene: Jordan alone in office late working on the paper for POTUS. Earlier POTUS asked Jordan for ideas how to convince politicians and the public that it would be a good idea to fund rebuilding US infrastructure by fixing the price for gas and diesel fuel. The paper is overdue, POTUS is frustrated and Jordan struggling to finish because of a series of interruptions. Original conversation with POTUS Entries #104, #105.

(Jordan talking to himself.) Getting support from Republicans for $5.00 gasoline is going to be tough, even those elected after the Revenge Revolution. They seems obsessed with privatizing a whole range of functions of government, including infrastructure.

Claiming societal benefits by privatizing many government functions is a fallacy. Look, government is not the most efficient organization at many tasks, but…and this is what many people fail to grasp – Republicans and some Democrats…government is a system that works most efficiently when tasks are grouped or integrated.

Any one task might be completed more efficiently by private business. But “outsourcing” these tasks results in even more inefficient government. I can hear the Republicans screaming now.

Many Republicans congressman and many business leaders seem to forget a key lesson from private enterprise. The lesson? Companies that are more vertically integrated make the most money.

Historical examples. General Motors, when it was the most vertically integrated might as well have printed money it was so profitable. More recently, Apple, has become hugely profitable because it controls the integration of hardware and software.

Vertical integration – I wonder if the lawyers in Congress really understand what it means and the potential benefits vertical integration offers. Probably not. OK, I’ll need to include a definition for POTUS. The Wikipedia definition is a good overview. http://en.wikipedia.org/wiki/Vertical_integration

POTUS will have to link the discussion of vertical integration to why many functions of the Federal government should be vertically integrated and how vertical integration applies to rebuilding US infrastructure.

Maybe we start the conversation with a discussion of roads. During the Obama Administration Republicans kept pushing to privatize rebuilding the infrastructure. Many Republicans said the government should have private enterprise provide the capital to rebuild roads, bridges, water treatment facilities…and a bunch of other stuff. But, with the private capital came one caveat – the companies could charge the public for using the privately funded infrastructure.

What a dumb-ass idea. It basically turns control of the public infrastructure to the private sector. Why? Because some Republicans were opposed to any function run by government? I dislike the idea intently…and I hope POTUS opposes strongly.

What if the company decides profits are more important and neglects maintenance and repair of infrastructure? What if the company decides to increase fees or tolls? The company could also decide the terms of the contract are onerous and then declares bankruptcy. And what is the public left with? The tab for repairing the infrastructure. Meanwhile the company has reaped profits…maybe raped the public is more appropriate.

The idea of private water and sewage treatment is even more risky. A failure by the company could have a huge negative impact on the public with virtually no accountability by the company. I need to have POTUS remind people of the financial crisis of 2008. Let’s see, how many executives from the banks and Wall Street firms went to jail? Goose egg, nada. There was no accountability then. The only difference today is the Revenge Revolution and people are fed up with executives and corporations not being held accountable.

The public might not understand effective oversight of private companies requires government staff. Republicans, of course, will claim “market forces” will keep the companies competitive.

Excuse me…but the last I looked roads, bridges and water treatment facilities were all monopolies, not free-market enterprises. Monopolies do not have a natural check-and-balance system.

Since we’ve had the Revenge Revolution I think there’s a better chance people will understand why infrastructure should be funded and managed by government. Using private companies to help rebuild infrastructure is OK and keeps government out of certain businesses. But government needs to manage the process.

Once POTUS makes this argument, he’ll need to talk about why $5.00 gas is necessary. Avoid getting into too much detail about cost during the early sessions. It’s an easy way to get sidetracked. But he needs to make the case that $5.00/gallon gasoline will make enough funds available to fund rebuilding infrastructure.

Maybe he should mention the Apollo program of the 1960’s. When President Kennedy said the US would put a man on the moon in less than a decade, I think the budget was 3-4% of GDP. Need to confirm but seems right. That program was highly successful with vast spin-off benefits. Rebuilding could have the same benefits.

OK, I think this section is OK for now. I’ll need to polish and make sure it flows smoothly. But POTUS needs to make the strong argument that government, not private companies, needs to fund and manage rebuilding infrastructure.

(To be continued)

#108 POTUS Infrastructure Project: Perception (Part 4)

08 Thursday Jan 2015

Posted by Jordan Abel in Economics, Infrastructure & Fixed Fuel Prices, Innovative Thinking: Ideas and Products

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Scene: POTUS’ office calling Jordan. Earlier POTUS asked Jordan for ideas how to convince politicians and the public that it would be a good idea to fund rebuilding US infrastructure by fixing the price for gas and diesel fuel. Original conversation with POTUS Entries #104, #105.

Jordan: “Hello, Jordan Abel here.”

Caller: “Mr. Abel, this is Harriet Breadsaker in POTUS’ office. He asked me to remind you that you owe him a draft of how he should propose the idea of a fixed price for gasoline and diesel fuel. When can we expect the draft, please?”

Jordan: “Part of its complete.”

Caller: “Mr. Abel. Maybe my question was not clear. When will you send the draft for POTUS to review?”

Jordan: “Give me another week.”

Caller: “I’ll tell him more like 10 days. Hope we don’t have to talk again. Goodbye Mr. Abel.”

Jordan (mumbling to himself): “I’ve got to get going on this project. POTUS is already on my case. What’s the next item I need to address?

(The balance of the entry is Jordan talking to himself.”

The next “P” is “perception”. How did I overlook perception? The issue of perception should be upfront. Calm down, Jordan, you are where you are. Just be diligent and plow through the balance of the “P’s” and you will make the deadline. Besides you told POTUS it would be a “working draft” and not a final recommendation.

“Perception.” I need to make sure as many people as possible understand the “extra” cost of fuel is really an investment in America…and not a tax. People should consider cost to rebuild infrastructure as an investment. Considering as an investment seems so obvious, but not everyone gets it.

I recall before the Revenge Revolution – sometime late 2014, early 2015 – just before the Republican Congress was sworn in, there was an article in the New York Times about the lack of support for increasing the gas tax. Some Republicans were resisting a Federal tax increase and wanted responsibility for roads transferred to the states. (15 01 04 NYT re Little Support for Gas Tax

I recall being dumbfounded anyone would think like that. Can you imagine having a highway system without national standards? No guarantee of consistency among the states for road quality, signage, bridges, etc. Talk about a potential negative impact on commerce. What were these Republicans thinking?

OK, there’s a few wackos still in Congress. Fortunately the public threw out most of them following the Revenge Revolution. POTUS still might need to throw the wackos a bone to avoid a fight or have the legislation stalled, especially in the Senate. What bone? Maybe consider allocating part of the revenue from the fixed fuel price to reduce the deficit.

Another head scratcher. Why do some Republicans think the US should pay down the Federal debt…and some even want a surplus. Why they think like that is beyond me. What I do know is no matter what I say or POTUS’ says, or any professional economist loaded with empirical data says, that group will never change its mind. Do these same guys really think commercial and investment banks have enough money to pay depositors or pay off their debts? Wall Street prints money every day.

OK, enough sidebars, back to the issue at hand. POTUS’ proposal needs to build a credible and well-understood argument that: (i) reinforces why repair to infrastructure is needed; (ii) emphasizes the benefits of a wide range of infrastructure projects, not just road and bridges; (iii) makes it clear the extra cost for fuel is really an investment, not a tax. Jordan, stop even considering the word “tax.” Take the word “tax” out of your vocabulary for this project. Repeat after me: the extra cost is an investment, the extra cost is an investment; the extra cost is an investment.

An unresolved issue is how to allocate the funds generated. To avoid the perception of partisanship, maybe the solution is to create a team of different key constituents – business leaders, academic, politicians and citizens. Need to keep the team small – ideally no more than say 9 members. Each team member could have a supporting workgroup. A team larger than 9 will get out of control and not provide real guidance. Recommendations from a highly respected smaller team will be more cohesive and more difficult for Congress to reject.

Just for fun, who could be on the team? I’ll make a list and then prune it after reviewing with some other people. For now, let’s include representatives from: (i) auto industry (ii) airline industry (iii) water transportation (iv) communications industry (v) municipal infrastructure – water, sewer, local roads (vi) environmental groups (vii) 2-3 academics – engineering (civil), business, maybe an anthropologist. That would make for an interesting group. (viii) electricity generation industry – need alternative energy also (ix) energy producers. Alright you are already over the limit…but a decent start.

Whew. Some progress. No go get some coffee and take a short break, then back to work. No more calls from old Harriet Breadsaker. Be nice to Ms. Breadsaker, Jordan.

(To be continued)

#107 Selling the Idea of a Fixed Fuel Price (Part #3)

28 Sunday Dec 2014

Posted by Jordan Abel in Economics, Infrastructure & Fixed Fuel Prices, Innovative Thinking: Ideas and Products, Possible Solutions, Societal Issues

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Scene: Jordan calling JC about meeting to review a communications proposal. POTUS asked Jordan for ideas how to convince politicians and the public that it would be a good idea to fund rebuilding US infrastructure by fixing the price for gas and diesel fuel. Original conversation with POTUS Entries #104, #105.

Jordan: “JC, are you ready to review the communications proposal for POTUS?”

JC: “Jordan, send me what you have and let me look at it first. You know I like to spend time reviewing ideas before making comments. Besides, I have some errands to run.”

Jordan: “Alright, I’ll send an email later today with some of the ideas. When I get another section drafted, I’ll send that. You review. Then can we talk, please?”

JC: “I know we can talk but yes we may talk. You are finally beginning to understand how to work with other people. It’s taken a while but I guess old guys can learn.”

Jordan: “Old. If I’m old, then what are you?”

JC: “Younger than you. I’ve always been younger than you…and probably always will be, don’t ya think?”

Jordan: “OK, you win. I’ll email a draft of some ideas later today.”

JC: “OK, bye.”

Scene: Jordan begins drafting marketing-like plan for POTUS.

(Jordan finds talking to himself helpful.) “I think most people understand that infrastructure needs to be rebuilt. But will they understand why it makes sense to fund the rebuilding using a fixed price for fuel? Fixed prices, especially ones set by government, are such a foreign idea to most US citizens. Maybe the best approach is to pretend we are launching a new product or service. Then use the ‘15 P’s’ approach. The 15 P’s approach has worked well in the past. Think I’ll try that.

Now, Jordan, listen. Take your time and follow the steps in 15 P’s procedure. Otherwise, you’ll get ahead of yourself. You know it’s easy to take shortcuts. And when you do, problems inevitably occur. Remember the time you painted the room before you prepared it properly? What a mess, and it took forever to fix. Slow down Jordan and take your time.

Also, don’t worry about making all the wording perfect. Remember, Jordan, this is a draft. A draft…not the final presentation. Make some notes for yourself. OK, got it.

What’s the purpose of the project? “Create a fund for rebuilding infrastructure throughout the United States – rebuild and/or expand roads, bridges, rail lines (especially for public transit), water treatment facilities, airports and communications infrastructure.”

How will you position the project with the public? Why is the project necessary? “Rebuilding infrastructure will help increase US competitiveness in the world economy and help increase the standard of living for all US citizens.” (Note: good concept that probably needs some more explanation, but not right now. Work on that later.)

Where will the projects be located? Projects will penetrate all 50 states. All states have a need to rebuild infrastructure although the mix of what’s needed varies by state. For example, more populated areas need to improve or build new public transit, while more rural areas need to improve roads and communications infrastructure. (Note: water and sewage treatment a major issue in all states. Might be separate section. Also, need to emphasize reusing water rather than just processing.)

How will we pay for the infrastructure projects? Create a fund based on the difference between what the price of gasoline and diesel would have been in the open market and a pre-determined price. Fuel prices will be fixed beginning a certain date. The difference between a ‘free-market” price and the “fixed” price will be sent to a fund to pay for rebuilding infrastructure. (Notes: (i) if there is a phase-in period for increased fuel prices, make sure it is very difficult to delay the increase. Otherwise a constant political battle. (ii) Think about delaying the proposed fixed prices for gas and diesel until we can lay out clearly the extent of the problem. If people understand, $5.00 per gallon gasoline might seem more than justified.)

How will the fund be protected against other uses? Look what happened to Social Security Trust Fund? Fund for infrastructure needs to be separated and protected from politicians diverting it for other uses…and not just some paper wall of protection as with Social Security. The Highway Trust Fund seems reasonably well protected (Note: need to confirm.) However, infrastructure extends well beyond highways and in some cases projects might appear to conflict with highway construction. (Note: need to really make solid argument for public transit, especially rail, which is the most efficient in populated areas.)

How will the project be approved given the politics in Washington? First step will be to conduct assessment of current state of infrastructure. Second step will be to determine what is required to make the US and a particular geographic area more competitive. Focus the project initially on assessing “Where is the United States today with respect to how inferior infrastructure is slowing economic growth and costing US jobs? Make the assessment as objective and credible as possible. Also make sure the public understands that the investment in infrastructure is a way to accelerate economic growth and create jobs. (Note: consider measuring using ROI. Doing so will address Republican concerns about ‘tax-and-spend.’)

What people should be involved in the project? Mmmm, good question. Maybe I should create a list of the types of people affected negatively by inferior infrastructure. Just jot them down as they come to mind. You can sort the list later. OK, here goes:

People who use public transportation, especially to get to/from work, medical appointments, school, etc.
Businesses which rely on cost-effective and timely transportation for inbound and outbound freight
People who use electronic means to communicate and/or order products
Transportation companies that deliver products – FedEx, UPS, USPS, freight companies, railroads, etc.
People who commute to work using private transportation. (Note: discourage more private use where possible.)
Schools that use the Internet for some instruction, data gathering
Homeland security, local police, fire, emergency services, etc.
Farmers getting crops to market

OK, it’s a big list already and you’ve only scratched the surface. In fact most everyone in the US is affected. So now, how do we put a group together that is representative and not mired in all the politics? The project seems as if it’s such an apolitical issue…and it might be since we’ve had the Revenge Revolution…but I am always amazed at how Washington gets bogged down in politics. (Note: Be careful and watch out for animals wounded in the Revolution – they can lash out.)

Promoting the idea. Maybe we should create a giant “chat room” and let people tell their own stories how inferior infrastructure affects them. Let people sell themselves and each other on the idea.

OK, stop for now. I need to send what I have to JC — I’m already a day late. Make sure she knows it’s a draft and encourage her to comment on it. Then I’m going to get a coffee refill and work on this some more. Remember, Jordan, this is a draft and not the final document.

(To be continued)

(Readers: The assumed chronological date for most of the entries in this blog is after the expected 5^th revolution in the US. For more background about the expected revolution – labeled the Revenge Revolution – and author, please view entry #01.)

#106 JC Says “Take a Break”

24 Wednesday Dec 2014

Posted by Jordan Abel in Personal Stories

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Scene: Jordan and JC having coffee near Jordan’s office.

Jordan: “JC, I need to review something with you.”

JC: “Business stuff?”

Jordan: “Yes. Is that a problem?”

JC: “No. But in case you haven’t noticed, no one is working today except folks in retail and restaurants…and some medical.”

Jordan: “Wonder why?”

JC: “Jordan, duh? Another brain-dead moment for you? You realize its Christmas Eve, right?”

Jordan: “So?”

JC: “Look, you and I might not celebrate Christmas but most people do. Besides, it seems like fun and we should enjoy the spirit.”

Jordan: “Jordan: “OK, business can wait, even if it is a project for POTUS.”

JC: “Is POTUS in town?”

Jordan: “No. On vacation.”

JC: “So you take a vacation.”

Jordan: “Alright. Now, you know what I always find humorous about Christmas?”

JC: “Can’t imagine. What?”

Jordan: “The 25^th is your birthday. And your initials are JC. And you’re Jewish. I think that’s funny.”

JC: “Want to hear something even funnier?”

Jordan: “Fire away.”

JC: “Remember the crèche they used to display at grammar school?”

Jordan: “Absolutely. But they probably couldn’t do that today.”

JC: “Anyway, one year, the school needs a doll to represent the baby Jesus.”

Jordan: “And…?”

JC: “You are slow sometimes. And, the principal asks me if I could lend them a doll for the season?”

Jordan: “You’re kidding.”

JC: “Nope.”

Jordan: “At least they made sure that Jesus had a Jewish mother. That’s really funny.”

JC: “I never did get the doll back. Apparently they used the doll for a number of years.”

Jordan: “Great story. Not sure why I never knew that.”

JC: “Sometimes you don’t slow down and listen.”

Jordan: “Yes, mother. I know no business today but can we get together soon to review the plan for POTUS?”

JC: “Not sure what I can contribute, but yes, we can met in a couple of days.”

Jordan: “Good.”

JC: “Jordan, now relax and enjoy the holiday spirit.”

(And, yes the key facts of this story are all true — the initials of the person involved, birthday, religion and lending the doll.)

#105 Do What with Fuel Prices? Are You Crazy? (Part 2)

20 Saturday Dec 2014

Posted by Jordan Abel in Economics, Infrastructure & Fixed Fuel Prices, Innovative Thinking: Ideas and Products, Possible Solutions, Societal Issues

≈ 2 Comments

Scene: POTUS called Jordan to discuss idea. Call interrupted. POTUS calling back.

Jordan: “Yes, Mr. President. Get the problem solved?”

POTUS: “One of those events where I had to be there rather than any real problem. Let’s get back to where we were.”

Jordan: “We were discussing the idea of funding infrastructure using the gas tax. But you never told me your specific idea. What is it?”

POTUS: “Simple. Set fixed prices for gasoline and diesel fuel.”

Jordan: “You talking about having the same price in all 50 states?”

POTUS: “Yes.”

Jordan: “What about the spot price of oil? That get fixed also?”

POTUS: “No. Let the price of oil fluctuate. Besides we cannot control the spot market for oil. If we ever tried the Republicans and even some Democrats would scream.”

Jordan: “So, when the price of oil in the spot market declines, the government collects more tax revenue. And when the price of oil increases, the government collects less tax.”

POTUS: “Simple, huh?”

Jordan: “What about state taxes on fuel? Do they fluctuate?”

POTUS: “That’s up to the state. If they want to gamble and collect more tax in down markets, that’s up to the state. However, if they want to link to the Federal policy, states would receive a portion of additional Federal revenue.”

Jordan: “When you first said fixed fuel price, I thought the idea was crazy.”

POTUS: “Thanks. I view that as a compliment.”

Jordan: “Then with just a bit more thought the idea didn’t seem so crazy after all. Knowing the price of fuel will be fixed takes away a lot of uncertainty. But what about the long-term price for gas and diesel?”

POTUS: “Build in some adjustment for inflation – use the WPI or some other measure.”

Jordan: “As a cynical taxpayer…”

POTUS: “Jordan, you cynical? Since when?”

Jordan: “I’ll ignore that. As a cynical taxpayer how do I know the taxes will go for repairing and improving infrastructure and not just some other part of the Federal or state budget?”

Jordan: “Make the use of funds part of the legislation. Put some real restrictions on the use of funds.”

Jordan: “You think the approach will generate enough funds?”

POTUS: “Well, let’s start with pricing gasoline at $4.50 per gallon and diesel at $5.00 per gallon.”

Jordan: “Wow. That’s way above current market price. Won’t the price be a shock to the economy?”

POTUS: “C’mon, Jordan, you sound like a Republicant.”

Jordan: “Well, pardon me, Mr. President.”

POTUS: “I hear you but think about this. When gas prices increase 50₵ a gallon, even $1.00 a gallon, what happens?

Jordan: “A lot of ranting and moaning but really not much else.”

POTUS: “That’s my point. Not much else happens. Now think about the benefits of eliminating uncertainty…really the benefits of creating certainty.”

Jordan: “Car and truck manufacturers can focus on improving mpg without the concern that fuel prices will fall and make the programs less marketable. Same with air craft manufacturers and railroads. The concern over uncertainty has slowed the adoption of many fuel-saving technologies.”

POTUS: “Consumers could buy knowing the price for fuel. And most importantly, we would have the funds to begin rebuilding infrastructure.”

Jordan: “Earlier in this conversation you asked me to play Mr. Marketer.”

POTUS: “And so, Mr. Marketer, how do we get people to want to pay $4.50-$5.00 for a gallon of fuel…and be happy about it?”

Jordan: “If we go back to what Tip O’Neill said about all politics being local, then we need to make sure all projects are highly visible locally. And we need to cover many different locations.”

POTUS: “We also need to include projects other than road related. Otherwise we are going to miss key infrastructure areas that need to be rebuilt.”

Jordan: “You talking about railroads and mass transit?”

POTUS: “Yes, specifically rail-based transit.”

Jordan: “What about communications infrastructure?”

POTUS: “Yes.”

Jordan: “Water and sewer projects?”

POTUS: “Yes.”

Jordan: “Airports?”

POTUS: “Yes. We’ve neglected each one of those areas.”

Jordan: “Seems a bit unfair to put the burden on only the people who drive.”

POTUS: “Seriously, Jordan, your brain gone dead?”

Jordan: “Whadda mean?”

Jordan: “Every product we buy has some cost included for transportation. Even if you don’t own a car, you are paying for fuel riding a taxi, train or airplane. Plus transportation costs affect grocery prices, clothing…everything.”

Jordan: “Then your point is the cost of fuel is really a consumption tax. The more you consume, the more you pay.”

POTUS: “Exactly.”

Jordan: “But isn’t the fuel tax also regressive?”

POTUS: “True but if you really analyze the data, most every group of taxes when measured again real disposable personal income is regressive. Besides, you have any other ideas how to fund rebuilding infrastructure?”

Jordan: “Not right now.”

POTUS: “When you do, let me know. In the meantime we need to start an education campaign on why $4.50 and $5.00 fuel is good for consumers, businesses and the country. And, guess what? You are in charge of the campaign? Got it?”

Jordan: “Yes, sir.”

POTUS: “Good. Now you have a week to get a draft of the campaign together. Say goodbye, Jordan.”

Jordan: “Goodbye, Jordan…I mean goodbye Mr. President.”

#104 Paying for Infrastructure. A New Approach. (Part 1)

17 Wednesday Dec 2014

Posted by Jordan Abel in Economics, Infrastructure & Fixed Fuel Prices, Possible Solutions, Societal Issues

≈ 3 Comments

Scene: Jordan’s office. POTUS calls Jordan for some advice.

Jordan: “Yes, Mr. President, nice to hear from you.”

POTUS: “Jordan, all well with you?”

Jordan: “Fine, thanks. I assume all OK with you…well, as much as can be expected in Washington. What’s up?”

POTUS: “A social call.”

Jordan: “C’mon. You calling me is never a social call. What’s the issue and how can I help?”

POTUS: “The issue is repairing the infrastructure in the US. It’s horrible and needs to be fixed.”

Jordan: “I agree. As a country we have fallen farther and farther behind.”

POTUS: “You know. I know it. But the deterioration has been gradual so a lot of people don’t realize there’s a problem. At least don’t know it until something happens to them.”

Jordan: “I equate the infrastructure repair problem to the proverbial frog in the pot of water. If you put the frog in and the water is cold and then turn up the heat, the frog doesn’t jump out and boils to death. If you throw the frog in the water when it’s hot, it jumps out. People don’t seem to realize the extent of the problem with infrastructure.”

POTUS: “I’ve always wondered if the story of the frog in the pot is true. But I guess it doesn’t really matter. The story is a good way to think about the infrastructure issue.”

Jordan: “You and I know the public is not good at looking ahead. Preventive maintenance is not a strong suit for most people.”

POTUS: “And preventive maintenance is not very sexy topic for politicians. Think about it. Would you rather cut a ribbon for a new bridge…or tell people we are going to repair the highway and they should plan on traffic delays for the next 12-18 months?”

Jordan: “Not much of a political choice…at least the way most people think about issues.”

POTUS: “Maybe that’s the secret. Reframe the issue. You mentioned to me once before the need to reframe these kinds of issues.”

Jordan: “Frame the issue so people…voters…look at the traffic disruption as a positive, not a negative.”

POTUS: “OK, Mr. Marketer.”

Jordan: “Former Mr. Marketer.”

POTUS: “Whatever. Put on your old marketing hat. How do we convince people we need to repair infrastructure and…notice I said and…raise taxes to pay for it?”

Jordan: “At the end of the day all politics is local. Tip O’Neill said that how many years ago?”

POTUS: “Sometime in the 1980’s. But it is still true today. Maybe we should take Tip’s advice to begin bridging the divide between Republicans and Democrats.”

Jordan: “Part of the divide was eliminated with the new Congress after the Revenge Revolution.”

POTUS: “But a lot of rancor still exists. So if we frame the infrastructure issues as being local, then maybe we make some real progress.”

Jordan: “We can position repairing the bridge and the disruption as a local project to help local area become more competitive and create more jobs locally.”

POTUS: “Voters don’t really care much about national issues, let alone international issues.”

Jordan: “OK, then how do we convince people to pay for the cost of repairing infrastructure and be happy with the disruption?”

POTUS: “Let’s talk about paying for it. We can fund the repairs the same way they have been funded for many years…the gas tax.”

Jordan: “Raise the federal tax on fuel?”

POTUS: “Exactly. Most people have no idea what the federal tax…or state tax…is on fuel.”

Jordan: “I’m not even sure I know.”

POTUS: “You made my case.”

Jordan: “How much you thinking about raising the tax?”

POTUS: “I have a different approach that should even satisfy die-hard, never-raise taxes Republicants.”

Jordan: “I love the term Republicants. What’s the idea for raising taxes?”

POTUS: “I’ll let you know but I need to call you back in a little while.”

#103 Understanding Each Other. More Post Ferguson Blah, Blah, Blah

13 Saturday Dec 2014

Posted by Jordan Abel in Economics, Personal Stories, Rebranding Black Community, Societal Issues

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Scene: Jordan and RockMan continuing conversation over coffee.

Jordan: “You know what bothers me?”

RockMan: “Only one thing bothers you? When did things get so good for you?”

Jordan: “You know what I mean. Even with all the progress you seem to be making, you know what bothers me about the effort to get blacks off the bottom rung economically?”

RockMan: “I’m game, what?”

Jordan: “Why do we…you know the collective we…make such a big deal about understanding each other?”

RockMan: “You talking about whites understanding blacks, and vice versa?”

Jordan: “Yes. And what’s the benefit of understanding each other?”

RockMan: “Shouldn’t whites understand blacks?”

Jordan: “Oh, give me a break. Tell me how that’s going to happen? I am not black, never been black and in all likelihood never will be black…at least in this lifetime. And you’re not white and aren’t ever going to be white. Let’s quit pretending.”

RockMan: “You know, I’ve lived most of my adult life in white communities. I admit there are things about whites I do not understand.”

Jordan: “Think about this. Whites who grew up north of the Mason-Dixon Line cannot understand the South’s obsession with the Civil War. It’s been more than 150 years. You lost. So get over it.”

RockMan: “Spoken like a true Yankee. Now, what about understanding someone’s religion? I do not understand a lot about Judaism.”

Jordan: “Trust me, Jews don’t understand a lot about Christianity.”

RockMan: “Like what?”

Jordan: “I think it’s called the holy trinity.”

RockMan: “What’s not to understand about that?”

Jordan: “Of the three, who’s in charge? Seems like a bureaucracy.”

RockMan: “That’s funny. But I see your point. By the way, what prompted this sudden revelation about not understanding another culture?”

Jordan: “It’s not been sudden. Several years ago — late 2014 or so — there was a series of articles in the NY Times with the title ‘What Whites Don’t Get about Blacks’.”

RockMan: “Sounds interesting and very true.”

Jordan: “OK but so what if whites don’t understand blacks? The author, Nicholas Kristoff as I recall, outlined a lot of what whites don’t understand but few, if any reasons, why whites really need to understand. So what if I don’t understand blacks? So what if you don’t understand whites?”

RockMan: “You keep saying ‘so what? You sound like me talking to some black groups.’”

Jordan: “You know why you and I keep saying ‘so what?’ Because that’s exactly what we mean. Here’s a real simple question, ‘If the Black Community wants to improve its economic and social status, whose responsibility is it?’”

RockMan: “The Black Community? And that’s what I’ve been trying to tell them. No more Al Sharpton or some other high-profile dude.”

Jordan: “Now we see the same the picture. You need to keep hammering home the idea that the Black Community needs to take charge and start making changes.”

RockMan: “You’re saying, ‘Not my job.’”

Jordan: “You got it. and you know it. Not my job. Your job.”

RockMan: “You want to keep the burden on those responsible.”

Jordan: “Remember the sign President Truman had on his desk?”

RockMan: “I’m not old enough to remember but I’ve read about it. The sign was very simple and easy to understand. ‘The Buck Stops Here.’”

Jordan: “Well, my friend, please keep reminding the Black Community the buck stops with the Black Community. Not with the White Community. Not with the Federal government. It stops with the Black Community.”

RockMan: “Seems as if we keep having the same conversation.”

Jordan: “A version of it. Think of this as ‘Ground Hog Day’ with Bill Murray. With each session I am probably less diplomatic. But let’s not lose sight of who can make change. Every ethnic group has faced barriers.”

RockMan: “None as difficult as blacks.”

Jordan: “Let me shed a tear. Now time to move on. OK, OK, blacks had some bad breaks.”

RockMan: “Some?”

Jordan: “But the Black Community has received more government help than any other group.”

RockMan: “True. But…”

Jordan: “…but so what? From what you’re telling me, your line to the Black Community is to start putting on their big-boy pants and quit acting like whiny little children.”

RockMan: “Any other ideas?”

Jordan: “Next time you have a session ask them to first start looking in the mirror. Who do they see? Who do they want to see?”

RockMan: “Even with some progress, still not very pretty right now.”

Jordan: “Not it’s not. But they have an example of who they should be.”

RockMan: “In New Orleans terms, ‘who dat?’’

Jordan: “RockMan, you know I think you are the perfect example for blacks. Parents who were dirt poor. Yet they managed to send 6 kids…”

RockMan: “Try 8 kids.”

Jordan: “Even better. …send eight kids to college. White families can’t claim that, even those with a lot of money.”

RockMan: “It is amazing when you think about it.”

Jordan: “Then you change schools because it is not tough enough academically. I mean, how many 19-year olds do that? What a role model.”

RockMan: “You like to lay it on thick, don’t you?”

Jordan: “But your story is a great one and needs to be told. Are you telling your story to these people?”

RockMan: “Not really.”

Jordan: “You should. Your story might help get some in the Black Community off dead center about whose problem it really is. Theirs, not mine. Am I going to suffer if the Black Community stays at the bottom? No. But many of your colleagues will.”

RockMan: “OK, so you’re telling me to crank it up even more. Is that what you’re saying?

Jordan: “You listen well. And I would be a lot more blunt that you might have been. This is no time for subtlety.”

RockMan: “And you going to be around to help or do you just give advice?

Jordan: “You know I’ll be around to help. And I will offer advice, whether asked or not. Keep up the good work.”

RockMan: “Alright. I’m out of here.”

#102 Ferguson, Post Blah, Blah, Blah.

03 Wednesday Dec 2014

Posted by Jordan Abel in Rebranding Black Community, Societal Issues, Stupid Is as Stupid Does

≈ 2 Comments

Scene: Jordan and Rock Man having coffee. Jordan has met with Rock Man several times.

Jordan: “RockMan, nice to see you again.”

RockMan: “You, too, Jordan. Been a while.”

Jordan: “First, congratulations.”

RockMan: “Congratulations for what?”

Jordan: “All the progress you’ve made starting to get the Black Community off the bottom rung of the economic ladder.”

RockMan: “We’ve not made much progress. Besides someone needed to lead the effort…and you goaded me into it.”

Jordan: “I think you’re doing a great job.”

RockMan: “I don’t know whether to thank you or curse you…but it is gratifying.”

Jordan: “These kind of changes don’t occur overnight. What changed people’s thinking?”

RockMan: “Simple, or at least I’d like to think it was simple. What changed thinking was Ferguson.”

Jordan: “You mean events in Ferguson, MO – like the riots after the grand jury decision?”

RockMan: “Look, the Black Community was frustrated there was no indictment of the cop who shot and killed an innocent, unarmed kid.”

Jordan: “You mean police officer and you don’t know all the facts. So let’s stay with what we know and show a little respect.”

RockMan: “Alright, not a cop. Police officer.”

Jordan: “So, people were frustrated with the grand jury. But frustration does not justify burning someone else’s business or car.”

RockMan: “Agreed. And finally, the Black Community started to see the lunacy in rioting and especially burning their own neighborhood. Rioting might feel good but it creates a whole new set of problems…and alienates many people who might help.”

Jordan: “But what really pushed them over the edge?”

RockMan: “When they had to talk to their neighbors in Ferguson who now were out of a job because some a-hole burned a store. Many of those who lost jobs…and I’ll bet most were black and Ferguson residents.”

J ordan: “And the tragedy is unless the Black Community starts to act differently, many of those people will never get their jobs back.”

RockMan: “So, the light bulb finally went on. And some people started to say, ‘Hey. Let’s quit acting so stupid.’”

Jordan: “Then you come along. How’d you get started?”

RockMan: “Met with lots of groups and listened to people whine…but no cheese with that whine.”

Jordan: “What were they whining about?”

RockMan: “The usual – discrimination against blacks, no real good jobs, bad schools, unfair police force…blah, blah, blah.”

Jordan: “Interesting you said whine and blah, blah, blah.”

RockMan: “Well, it’s true. I so I told them bitching and moaning won’t solve any problems. And I reminded them blacks are not the first ethnic group to face discrimination.”

Jordan: “Did you talk about solutions?”

RockMan: “Yeah, and at the beginning I heard the usual tired solutions – more government programs, more quotas for this and that, more sensitivity training for the police force…blah, blah, blah.”

Jordan: “You being cynical?”

RockMan: “No, I’m just being realistic. You know it. I know it.”

Jordan: “But did your audience know it?”

RockMan: “Only after I kept responding, ‘so what?’ and ‘that won’t work.’”

Jordan: “You must have been popular.”

RockMan: “About as popular as Rush Limbaugh at a Democratic Fund Raiser.”

Jordan: “At some point, however, they changed their minds. What happened?” RockMan: “For starters, I stole your line. I told them to quit driving through the rearview mirror and start looking through the windshield.”

Jordan: “Good, that seemed to work?”

RockMan: “It also helped when I told them to trying to be white and start being black. Some of the same stuff you and I talked about.”

Jordan: “This is getting interesting. I’m really want to hear more. But let’s take a quick break.”

#101 The First 100 Entries. Reflections and Assessment.

26 Wednesday Nov 2014

Posted by Jordan Abel in Societal Issues

≈ Leave a comment

Last week was the 100^th entry for this blog. Thought it might be worthwhile to step back and assess the appropriateness of the content.

The premise of the blog is a Revenge Revolution that will occur sometime before 2025. My track record for predicting such cataclysmic events is reasonably good, although I generally predict too early a date.

So, do I believe the US is still on track for a 5^th revolution? Yes. Even more so today that when I started the blog last year. The danger, of course, is that writing regularly about such an event diminishes one’s ability to be objective. It’s the same danger as believing one’s own press releases.

With that caveat, I think it fair to say the US populous is more divided today than a year ago. Congress, for all its apparent faults, is probably a fair representation of the attitude of the US population. The rancor and bitterness in Congress has intensified.

While the 2014 mid-term elections resulted in a clear Republican majority of both houses, many candidates seem to have been elected not for what they stood for but what they stood against. Many Republicans were very vocal about (a) not supporting affordable health care for middle and lower-income families and/or (ii) supporting tax cuts, the benefits of which would fall mostly to corporations and wealthier households.

Why would so many voters select candidates whose policies are contrary to their best interests? My conclusion is many of the voters have been brainwashed. Such brainwashing has happened before.

One of the most credible and honest politicians of the 20^th century, George Romney (Mitt Romney’s father) stated in a campaign to become the Republican presidential nominee that he had been brainwashed by American generals about Vietnam.

Romney, who was the leading candidate, was chastised and ridiculed for the remark. Reaction to the remark caused him to drop out of the race.

Was George Romney correct? Absolutely. And much of the American public, which had been brainwashed as well, eventually realized the deceit and turned against the war.

Today, the Republicans seem to be experts at brainwashing the public about what should be US economic policy. There are a number of entries in the blog addressing what I consider the absolute lunacy of many Republicans about appropriate economic policy.

Before Republican readers get too exorcised, the Democrats seem to have been brainwashed about civil rights. I am a big believer and supporter of civil rights. And the rights extend to race, religion, martial preference and other aspects of society. The US was founded on fairness…and, no, owning slaves was never fair.

A number of entries propose ideas to get blacks off the bottom run of the economic ladder. The basic theme is responsibility. Despite the unfair beginning, at some point the black community needs to take charge of its destiny and quite relying on someone else. Real progress might take 2 or 3 generations but until the black community starts managing itself, no real progress will be made. Other people and government can help but the black community needs to take charge.

In several entries I suggested that the black community stop sending athletes to the NFL and NBA. OK to accept a college scholarship and get an education but sending athletes to professional sports sends the wrong message to younger blacks.

Since making that suggestion, there have been numerous cases where professional athletes, most if not all black, have been charged with domestic violence. These cases have become very high-profile and reinforce the negative image of blacks.

In addition, the University of North Carolina has been cited for allowing many athletes to continue eligibility for sports by taking essentially ‘no show’ classes. In what department were these ‘no-show’ classes – black studies? To those of you in the black community, you need to step up and take control of your destiny. No one said this blog was going to be politically correct.

I have some other examples of divisions within the country but I’ve made my case. Overall the US seems more polarized than a year ago. Despite very good economic growth the past few years (nearly 4.0% GDP growth in the most recent quarter), a large percentage of the population has made little progress with real income having declined.

At some point the frustration of groups being disadvantaged spills over the top. And it won’t be pretty. Imagine events in Ferguson, Missouri in 100 cities. In 1,000 cities. The police and National Guard could not control the rioters.

I’m going to keep writing. As I’ve said in numerous entries, I hope my prediction proves wrong. Your thoughts about this blog and entries are always appreciated. Thanks for your time. John R. Dabels for Jordan Abel (main character of this blog).

usrevolution5

~ USA Headed for a 5th Revolution! Why?

Author Archives: Jordan Abel

#110 Does the Plan Pass the “Practical” Smell Test? (Part #6)

#109 Privatizing Functions of Gov’t: the Fallacy (Part #5)

#108 POTUS Infrastructure Project: Perception (Part 4)

#107 Selling the Idea of a Fixed Fuel Price (Part #3)

#106 JC Says “Take a Break”

#105 Do What with Fuel Prices? Are You Crazy? (Part 2)

#104 Paying for Infrastructure. A New Approach. (Part 1)

#103 Understanding Each Other. More Post Ferguson Blah, Blah, Blah

#102 Ferguson, Post Blah, Blah, Blah.

#101 The First 100 Entries. Reflections and Assessment.