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~ USA Headed for a 5th Revolution! Why?

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Category Archives: Gov’t Policy

#196 How Tax Policy Created Multiple Flints (Part #6 of Series)

30 Saturday Apr 2016

Posted by Jordan Abel in Back Asswards Thinking, Causes of the Revolution, Gov't Policy, 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’s office in Washington. Jordan meeting with JC, who has agreed to get storylines about causes of the Revenge Revolution for Greenie, a mutual friend.  Greenie is recovering from short-term illness.  Conversation started #191.

Jordan:  “For Greenie’s next article about the Revenge Revolution let’s select a topic that’s less political.”

092615_2031_Characters1.jpgJC:  “Look, most big societal issues seem to come down to politics one way or another.”

Jordan:  “Probably so.  But some factors causing the Revolution didn’t start as big political issues.”

JC:  “You have a particular topic in mind?”

Jordan:  “Flint, Michigan.”

flint-city-limits-signJC:  “That’s an old story.  Won’t Greenie be beating a dead horse?  Besides you talked to POTUS about Flint.  What’s new?”

Jordan:  “Not much new about the facts.  What is new is that we…societal we…failed realize the underlying cause of the problem.  We failed to realize the cause when it happened.  We fail to realize the cause now.”

JC:  “And, I take it, you think the failure has widespread implications?”

occupations_lawyerJordan:  “Right.  There are still many cities with problems very similar to Flint’s.”

JC:  “When the story broke, there was lots of finger-pointing by politicians.  Then people got very angry and Flint finally got a solution.”

Jordan:  “What troubles me is the solution addressed the symptoms, not the cause.”

JC:  “You saying fixing the infrastructure in Flint…and elsewhere…was the easy part?  band_aid_logoThe Band-Aid?”

Jordan:  “Here we are 5+ years after the Flint problem became public and we still haven’t start addressing the underlying cause.  When are we going to wake up?”

JC:  “Maybe that’s what Greenie should explore and write about – the real causes of problems in Flint.”

TurtleneckJordan:  “We keep saying Flint but we know the problem is more widespread – look at Detroit, Chicago, Cleveland…and a lot of other cities.”

JC:  “I know there’s more than Flint but it’s a great example that’s still fresh in everyone’s mind.  What did you tell POTUS?”

Jordan:  “If you take personalities out of the Flint equation…”

JC:  “…you mean like that guy you talked about that had it in for Flint — GM’s chairman. Squeaky or 17-mickey_rooney_theredlistwhatever his name was.”

Jordan:  “Roger B. Smith.”

JC:  “That’s it, Roger Smith.  I like the name Squeaky better.”

Jordan:  “If you take personalities out of the equation, the primary cause seems to center on US tax policy.”

JC:  “Huh?  Flint and tax policy.  How so?”

Jordan:  “Because tax policy allowed, maybe encouraged is a better term, inflated compensation for senior executives.  The compensation was tax-deductible but hidden in the form of stock…more stock options then.”

stock-certificateJC:  “Aren’t stock options only worth something if the price of the stock goes up?”

Jordan:  “True but shareholders really didn’t understand how much the executives could make if the stock price increased.”

JC:  “So what’s wrong with the executives making money?  If the stock price increases, all the shareholders benefit also.”

Jordan:  “How do you think the execs increased the stock price?”

JC:  “I guess more effective management.  Maybe introducing new products.  I don’t know.”

scissors-clip-art-scissors-clip-art-17Jordan:  “What about cutting costs?”

JC:  “Sure you can cut costs some but that only works for a while.  No one ever saved their way into prosperity.”

Jordan:  “Part of the problem at public companies was Wall Street.”

JC:  “You keep confusing me.  I thought Wall Street guys made it possible for companies to grow…and create all that wealth.”

Jordan:  “One thing people need to understand.  Wall Street pushes a stock price higher for increased earnings, not necessarily for preparing to grow the business.  The Wall Street Signfocus during Squeaky’s reign was short term…and to a large extent the focus today remains short-term.”

JC:  “Keep talking.  I’m still a little confused.”

Jordan:  “For many established companies, generating cash flow was…and is…rewarded more than building for long-term growth.”

JC:  “Why?  That seems like back asswards logic.”

backwards-dayJordan:  “I think it is back asswards logic.  But for many stock traders, short-term is more important.  Long-term growth is uncertain and requires cash.  Earning often suffer before growth begins.”

JC:  “Sounds to me as if Wall Street cared only about performance today, not really about the future.  And certainly Wall Street didn’t care about the company.  I keep using past tense.  But you’re saying it’s till true today.”

Golf Bet 1Jordan:  “Exactly right.  People who trade stocks have no emotional bond with the company.  Wall Street’s focus is dollars, not the company or its people.”

JC:  “So now the company execs, who have a boatload of the stock options, need to play the Wall Street game if they want to make money.  Otherwise the options could be worthless.”

Jordan:  “Now you have it.  The execs are the dog being wagged by the Wall Street tail.”

JC:  “Based on what you just described, it makes more sense to cut costs and not spend money for future growth.  Seems so stupid.”

Jordan:  “Pretend you’re a CEO of a big manufacturing company with lots of workers in Flint, Detroit and elsewhere.  And then…”

crocodiletearsJC:  “…I look at my pile of stock options and ask myself, ‘How can I make the most money?’  Mmm, maybe I can move operations to Mexico, or China as a way of cutting costs.  And with that thought I shed a crocodile tear for the workers and the cities left behind.  Their problem, not mine.”

Jordan:  “Enlightening, huh?”

JC:  “I never connected tax policy with movement of US companies to Mexico and China…or even to the southern US.”

Jordan:  “Think about the implications of the tax policy.”

JC:  “For the execs, they gain in wealth.  They also walk from any obligation to the workers or the communities.”

Jordan:  “Heads I win.  Tails you lose.”

092615_2031_Characters12.gifJC:  “Seems more like the execs gave a one-fingered salute to everyone on the way to the bank.”

Jordan:  “So if Greenie writes about how tax policy helped cause the downfall of Flint and other places, maybe…just maybe…the post-Revenge Revolution Congress will make some changes.”

JC:  “And may…just maybe…people will begin boycotting companies who don’t support US cities and workers.  And with that, I need a break.”

#194 NC “Done Wrong” by Mental Midgets in the Legislature (Part #4 of Series)

13 Wednesday Apr 2016

Posted by Jordan Abel in Causes of the Revolution, Gov't Policy, Societal Issues, Stupid Is as Stupid Does

≈ 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’s office in Washington. JC and Jordan continue conversation that started #191.

Jordan:  “Aren’t you being harsh on North Carolina?  The legislature wasn’t that bad was it?”

092615_2031_Characters1.jpgJC:  “Worse.  What really frosts me is how hypocritical the Republicans were.”

Jordan:  “Like what?”

JC:  “The legislature and the governor…who was governor about 2016?”

Jordan:  “You’re talking about Pat McCrory, former mayor of Charlotte?”

JC:  “I guess so.  Wasn’t he the governor when the legislature passed a bunch of laws they claimed would attract more business?”

Jordan:  “You mean like tax cuts for the wealthy, prohibiting cities from raising Turtleneckminimum wage above the Federal level, restricting workers from filing discrimination claims in state court…and some other stuff?”

JC:  “The legislature passed a bill making it OK to discriminate against gays…really all LGBT’s.  Then, a bunch of large companies start pushing back and asked the governor and legislature to repeal the law.  And what did the governor and the legislature say?”

Jordan:  “If I recall correctly, comments from Republican Representative Pittinger, whose district includes part of Charlotte, were typical.  He politicssaid we can’t let business dictate policy for Republicans.”

JC:  “What’s his name…Pettinger?”

Jordan:  “Pittinger, Robert Pittinger.”

JC:  “Excuse me Bobby Boy, all this legislation got passed by Republicans to attract business.  Then when some large businesses pushed back at legislation that clearly discriminates, you had the gall to say business should not dictate Republican policy.  Can you connect two dots…not three…just two dots?”

Jordan:  “You probably weren’t aware when Pittinger made those comments he was irs-logounder investigation by the IRS for some type of tax issue…and he had a revolt by investors in his land-development company.”

JC:  “Sounds like a credible guy.  A developer, in the same huckster genre as Donald Trump?”

Jordan:  “Yep, although not nearly as successful as Trump.”

Jordan:  “No wonder investors…and apparently the IRS…didn’t trust him.”

Jordan:  “Here’s an idea.  If Pittinger thinks Republicans should not let business dictate policy, then why doesn’t he introduce legislation in Congress to negate the effects of supreme_court_buildingthe Supreme Court’s decision re Citizens United?  That would put his money where his mouth is.”

JC:  “Great idea but you know he won’t do that.  No guts plus I’m not sure he’s smart enough to see the irony in his statement.”

Jordan:  “So, we’ve got a wacko US Representative from North Carolina.  Other places have wacko Reps as well.”

JC:  “But NC seemed to go from a reasonably rational state to an irrational state.  What happened?”

Jordan:  “Earlier I said Republican legislature was like a bunch of teenage boys…”

JC:  “…watching ‘Girls Gone Wild…”

Jordan:  “As companies began to take action that hurt the NC economy and/or reputation…”

PayPal LogoJC:  “…like PayPal cancelling a major expansion in Charlotte…”

Jordan:  “…and high-profile entertainers cancelled shows…”

JC:  “…like Bruce Springsteen…”

Jordan:  “…and a bunch of conventions cancelled or took Charlotte off the list, the Republican legislators dug in their heels and refused to consider changes to the law.”

McCroryJC:  “Where was the governor in all of this?”

Jordan:  “He claimed to be helpless in controlling the Republicans.  Hapless is probably a better description.  After a lot of heat, he issued an Executive Order to overturn part of the law but the EO was feeble and ineffective.”

JC:  “So to prove they were in charge, the Republican legislators let the state of North Carolina, and Charlotte in particular, deteriorate economically.  Didn’t they care?”

Jordan:  “Obviously not.  The Republicans had so gerrymandered the voting districts that most were rural and solid Republican.  To many of those people Charlotte had been overrun by a bunch of Yankee liberals and needed to be straightened out.”

JC:  “Payback time for the Civil War?”

070715_2218_141SenseChe3.jpgJordan:  “Not the Civil War, please.  War of Northern Aggression.”

JC:  “Pardon me, I forgot.”

Jordan:  “Many of the legislators were farmers or small business owners in rural areas.  They thought their fortunes were not tied to Charlotte…or Raleigh, for that matter.”

JC:  “So their attitude was let the hoity-toity city slickers rot.  Some time passes and then the economy of Charlotte and Raleigh take a serious hit.  But the legislators till won’t budge.”

Jordan:  “Then the rest of North Carolina starts to slide.  But before the legislators will admit their mistake…”

JC:  “…the Revenge Revolution starts.  The very people who the Republicans counted on to screw Charlotte ended up turning on the Republicans.  I love poetic justice.”

Jordan:  “Poetic justice but not before a lot of damage was done.  North Carolina will spend decades trying to rebuild its reputation and begin attracting younger, well-educated people.”

Confused Clip ArtJC:  “I understand there have always been differences in perspective between rural and urban dwellers.  What I cannot understand is why the NC Republican legislators felt a need to react so viciously to an ordinance enacted by the City of Charlotte.  That reaction seemed to be the straw that broke the camel’s back.”

Jordan:  “What I don’t understand is why the legislators even acted.  The ordinance was for the residents of the city…no one else.  If someone didn’t like Charlotte’s ordinances, no one was forcing them to go there.  Go someplace else.  I mean, what’s really the issue?”

JC:  “My opinion.  In NC terms, the state was ‘done wrong’ by a bunch of mental-midgets in the legislature.  The mental-midgets were power-hungry, on the loose and the governor either couldn’t or chose not to control them.  Let’s take a break before I start screaming.”

#192 NC: First in Discrimination; Last in Education (Part #2 of Series)

06 Wednesday Apr 2016

Posted by Jordan Abel in Back Asswards Thinking, Causes of the Revolution, Gov't Policy, Societal Issues, Stupid Is as Stupid Does

≈ 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’s office in Washington. JC and Jordan continue conversation from #191.

092615_2031_Characters1.jpgJC: “What have I been up to while you were away on R&R?”

Jordan: “Hardly consider recovering from surgery R&R.”

JC: “Well, you weren’t working very much as far as I know, so it must have been R&R.”

Jordan: “Back to my question, what have you been doing lately?”

JC: “Helping Greenie prepare some articles on the Revenge Revolution.”

092615_2031_Characters2.jpgJordan: “Now I have to deal with both of you?”

JC: “You love it and you know it.”

Jordan: “I admit, working with you guys is fun. What’s your topic?”

JC: “State governments running wild.”

Jordan: “Reminds me of a movie from many years ago, ‘Girls Gone Wild.'”

JC: “Did you actually watch that stuff?”

Jordan: “Look, I saw my share of trash. Remember I was a teenager once. And Turtleneckteenage boys sometimes do stupid things. But let’s get back to your topic. Any state in particular stand out for running wild?”

JC: “Yes, your current home state, North Carolina.”

Jordan: “Call it the state where I pay taxes. But I hardly consider NC my home state.”

JC: “Whatever you want to call it, the NC legislature might as well have approved a new slogan, ‘NC: First in Discrimination; Last in Education.'”

Jordan: “FunnNC Outliney, JC, but unfortunately close to the truth.”

JC: “Tell me what went on to cause such a shift in your state?”

Jordan: “Please don’t call it my state. We just happen to live there. I have no other connection with NC…nor do I want any.”

JC: “OK, but what went on? The legislature seemed to want to lead the race to the bottom. Didn’t they understand there would be economic consequences?  As I recall PayPal cancelled a big project.”

Jordan: “Yes, PayPal did cancel a big project.  But I’m not sure the legislators thought about the real consequences. Conventions also began avoiding NC, companies other than PayPal didn’t expand in NC…and some actually relocated elsewhere. As a result the economy stalled. Then the Republicans blamed everyone from the mayor of Charlotte to the Yankee liberals for ruining the state.”

confederate-flag-steev-stamfordJC: “Still fighting the Civil War and the carpetbaggers?”

Jordan: “I don’t know when they’ll give up and realize they lost, or even put on their big-boy pants. Anyway, the Republicans legislators in the state house continued to act incredibly stupid.”

JC: “Like teenage boys? But, why?”

Jordan: “My view is the legislators got addicted to power. About 2012 or so the Republicans gained control of the state house for the first time in a long, long time. The first couple of years they went a little crazy with legislation. Many voters just rolled their eyes and thought the craziness would pass and some semblance of sanity would return.”

JC: “But it didn’t, right?”

Jordan: “The craziness got worse. The Republican leadership was drunk with power.”

JC: “What about the governor? What was his name? Mac something. Wasn’t McConnell, was it?”

Jordan: “His name was McCrory, Pat McCrory.”

CharlotteJC: “Wasn’t McCrory mayor of Charlotte for a long time before becoming governor? I thought Charlotte was a reasonably progressive city. They were on a roll for a while.”

Jordan: “McCrory was fairly progressive as mayor. In fact, the right wingers thought he was too progressive. One of those liberals, as they say.”

JC: “What happened when he became governor? How could he shift so far right so quickly?”

Jordan: “Good question. My opinion – I think he got overwhelmed by the complexity of the job.”

crayonpack2JC: “Are you saying he wasn’t the brightest crayon in the box?”

Jordan: “I don’t know how smart he really was…or is. But he seemed to leave some of those smarts in Charlotte when he became governor.”

JC: “So at that point NC has an emboldened Republican legislature and, in polite terms, a weak-kneed governor.”

Jordan: “Exactly. There was no moderating force so the right-wing kept pushing and pushing and pushing…”

JC: “…and it eventually pushed the state over the edge. In researching for Greenie, I math_rational_numbersread that to pay for tax cuts for the wealthy, the NC legislature cut salary increases for teachers.”

Jordan: “Even worse…or at least just as bad…to pay for tax cuts for the wealthy, the legislature increased taxes on middle and lower-income residents.”

JC: “What about the airport fiasco? The state really tried to take over Charlotte’s airport? How could they do that?”

Jordan: “Another power grab, although fortunately they did not succeed.”

JC: “Seems like the state legislature basically gave the finger to everyone. They told 092615_2031_Characters12.gifWashington that states like NC should have more power. Then told the NC cities they had less power. Think the legislators understood the irony of what they were doing?”

Jordan: “When you’re drunk, whether drunk with alcohol or drunk with power, there are a lot of things you don’t understand. The LGBT ordinance was yet another example.”

JC: “If I understand correctly, the city of Charlotte passed an ordinance banning discrimination against LGBT’s. The ordinance affected only the city of Charlotte.  No other location was affected. Then the state pulled a power play and banned the ordinance.”

Jordan: “Banned the ordinance plus a bunch of other stuff…like prohibiting the city of Charlotte from raising the minimum wage beyond the Federal level.”

FightJC: “Didn’t the legislature call a special session and in less than 12 hours pass the legislation, and then governor sign the bill?  But the bill prohibited something that had not yet taken effect. How can that be?”

Jordan: “The whole thing was probably outside the constitution. However, the weak-kneed governor claimed nothing really changed because the ordinance had not yet taken effect.”

JC: “Which means that if discrimination was OK before the ordinance, then discrimination could continue. Now I see why the Revenge Revolution started in North Carolina. People became sick of the crazies in the state house.”

Jordan: “Just to be fair, North Carolina wasn’t the only state with crazies in the state Map-Flag-North-Carolina-2655698house. But it was leading the pack.”

JC: “Thus the slogan, ‘North Carolina: First in Discrimination; Last in Education.'”

#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.”

#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

#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)

#179 POTUS Calls re Rebuilding US Manufacturing Base, Middle Class (Part #3)

10 Sunday Jan 2016

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

≈ 8 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’s office. Regular work day.

Gelly (Jordan’s assistant): “Jordan, sorry to interrupt you but I think you might want 092615_2031_Characters7.gifto take this call.”

Jordan: “Anyone important?”

Gelly: “Try POTUS. He’s calling you personally.”

Jordan: “Oops. Thanks. (Picking up phone.) Good morning, Mr. President.”

POTUS: “Morning, Jordan. Hope all is well with you. Have a nice holiday break?”

Jordan: “Yes, thank you. Had a chance to visit my wife’s family.”

021214_1242_24Resultsof1.gifPOTUS: “That’s what I understand. And don’t ask how I know.”

Jordan: “I know better than to ask.”

POTUS: “Calling to see what you learned on the trip. I can’t really get out and visit with people like you can. What’s up out in the heartland?”

PilotLogoJordan: “One of our stops…really one of my stops…was a truck stop in Central Illinois. Had an interesting chat with a fellow diner.”

POTUS: “Was it productive or the usual politics?”

Jordan: “Very insightful. The guy…his nickname is Doughman…talked about companies Pillsbury-Doughboymoving manufacturing jobs out of the US and relocating in Mexico or China. He just could not understand why we would want to gut the middle class in this country by shipping jobs elsewhere.”

POTUS: “What’d you tell him?”

Jordan: “I could not tell him much he didn’t already know.”

POTUS: “You mean like crazy tax laws that benefit CEO’s and other executives by moving jobs outside the US? And those laws really transfer wealth of the middle class to the executives and to the other country.”

TurtleneckJordan: “Tax laws are part of it. So are the negative perceptions of unions and a few other issues. But…”

POTUS: “…but what? Have you got a solution?”

Jordan: “The solution, at least to me, seems to be more education about why manufacturing in the US can be as profitable, if not more profitable, than manufacturing overseas.”

POTUS: “What about fixing the tax laws, increasing training for workers…ideas like that.”

factory_07Jordan: “Tax laws are out of whack and need to get fixed. But the real problem, I think, is American companies do not understand total costs…or maybe don’t know how to calculate total costs. As a result, they focus on individual components…like wages…and miss the big picture.”

POTUS: “Sort of like some of these yahoo politicians focusing on one part of the problem in the Middle East and pretending the related problems don’t matter. So, OK Swami, what are we going to do about rebuilding the manufacturing base…and rebuilding the middle class?”

swamiJordan: “First step is to find some examples of companies that have expanded US-based operations rather than shipping jobs overseas. We can have them talk about what issues they considered in the decision.”

POTUS: “OK, then what?”

Jordan: “We need to reach out to other CEO’s and CFO’s (chief financial officers) and educate them why it can be cheaper to manufacture in the US. The conversation needs teacherto focus on all costs, not just labor costs.”

POTUS: “That’s a big job. Who are going to get to be the spokesperson? Might need several people.”

Jordan: “The most credible would be CEO’s and CFO’s of companies that have either expanded in the US or brought operations back.”

POTUS: “What about some consumers? Some folks really prefer to buy US-made product.”

Jordan: “Good idea. And maybe you can use the bully pulpit to help persuade some companies to focus more on US manufacturing.”

walmart_logoPOTUS: “You mean like Wal-Mart. Sam Walton must be turning over in his grave. Wal-Mart went from US-made products to “Made in China” for just about everything.”

Jordan: “Wal-Mart might be more receptive than we think about returning to US-made products. They’re struggling.”

POTUS: “Any bully pulpit effort needs to be very quiet and behind the scenes. Can’t give countries the impression I don’t support free trade.”

Jordan: “The naysayers are going to argue that China offers lower costs and therefore that helps the middle class.”

POTUS: “You sound like some politician.”

Jordan: “Should I wave my arms and raise my voice as well? Actually the argument might be true for some items. But when the people who used to buy your goods are out of a job and have no money, what does a lower price do for them? They still can’t afford it.”

POTUS: “Hasn’t much of the price decline for a lot of products been due to technology and not labor cost per se?”

bingo-607633Jordan: “Bingo. And that’s the core argument with the CEO’s and CFO’s. Cheap labor doesn’t matter for many products. Technology has reduced labor content to a much smaller percent of total cost.”

POTUS: “Not sure this is the right example, but your old stomping ground – the auto industry – has reduced labor costs, right?”

Jordan: “Yes. Over the last say 25 years, labor hours per car have decreased dramatically.”

POTUS: “Just thought of another point we need to emphasize. If labor costs in the US are so high, why have so many of the foreign car manufacturers set up assembly plants here?”

Jordan: “Duh. Think those companies might understand the value of manufacturing in the US better than many US companies do?”

questions_answers_5POTUS: “OK, so we’ve identified a problem – the middle class is shrinking; and we’ve identified a partial solution – rebuild US manufacturing base; and we’ve identified a way to get started – educating CEO’s and CFO’s about how to calculate total cost….”

Jordan: “…and educating the public.”

POTUS: “Jordan, I buy the argument and the base solution. We’ve had the Revenge Revolution, which should make people more receptive.  Now, how do we really get started?”

Jordan:  “Want to talk now?”

POTUS:  “Can’t.  Have a cabinet meeting.  I’ll get back to you.”

(Continued)

#173 Observations of Former Speaker of the House

09 Wednesday Dec 2015

Posted by Jordan Abel in Causes of the Revolution, Gov't Policy, Innovative Thinking: Ideas and Products, 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.

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: JC, Greenie, and Jordan sitting outside at a restaurant near Jordan’s office.  Conversation starts #169.

Jordan: “Excuse me. I should be back shortly.”

092615_2031_Characters1.jpgJC: “Wonder where he’s going?”

Greenie: “Relax. It might be an old guy thing. You know…”

JC: “Greenie, turn around slowly and see who Jordan’s talking to.”

Greenie: “That’s the former Speaker of the House. What’s John Boy doing back in D.C.?

JC: “I don’t know but they are headed this way.”

092615_2031_Characters2.jpgGreenie: “Both of them?”

JC: “Yep. This should be interesting.”

Jordan: “John Boy, I’d like you to meet two long-time friends of mine, Greenie and JC.”

John Boy: “Nice to meet you both. How can two lovely young ladies hang around with an old guy like Jordan?”

JC: “Such a charmer. Very nice to meet you.”

Greenie: “Likewise. Nice to meet you. What brings you back to Washington? Aren’t you living in Ohio now?”

man_with_speechJohn Boy: “Living in Chillicothe…and loving it.”

JC: “I plead ignorance. Just where is Chillicothe?”

John Boy: “Southern half of Ohio, about midway and about an hour south of Columbus, the home of…Jordan, want to finish the sentence?”

Jordan: “Not on your life. Go Blue!”

Greenie: “OK boys, enough football rivalry. I have a question. Mr. Speaker…”

John Boy: “Greenie, cut the speaker crap. It’s ‘John Boy’, OK?”

Greenie: “OK, John Boy, why did you move back to Ohio? Why not stay in DC – lots of cushy jobs for the taking.”

Dairy_Queen_1961John Boy: “First and foremost, Chillicothe has not one but two DQ’s. It’s hard to find one Dairy Queen in DC.”

JC: “Seriously, why back to Ohio?”

John Boy: “I grew up in that part of Ohio. The people were nice enough to elect me to Congress for 12 terms to the House. It was a great run. And the people there are real. I just got tired of all the BS in inside the Beltway.”

TurtleneckJordan: “Don’t you miss the excitement of Congress?”

John Boy: “Congress is much like make-believe land, or at least it was when I was there. Maybe, just maybe, the Revenge Revolution will bring back some reality.”

Greenie: “If you don’t mind me asking, what was your biggest frustration in Congress?”

John Boy: “My party would not face reality. Republicans kept denying the empirical evidence, whether global warming, economic policy or the need for some type of rational gun control.”

Greenie: “Didn’t anyone study the data?”

John Boy: “If they did, it was dismissed out of hand. Plus, anyone who dared cite the data, no matter how credible the source, was branded a heretic.”

JC: “Congressional Republicans have not always been like that, have they?”

John Boy: “When I started in Congress, members actually studied the information before taking a position. I should say most members, not all. You know the old story about ‘Yellow Dog Democrats.'”

JC: “So what happened? When did ideology take over from rational thinking?”

John Boy: “This sounds terrible because I know so many mainstream Republicans like ronald_reaganhim, but the problem started with Ronald Reagan.”

Greenie: “You mean Reagan’s mantra of ‘Government is the problem, not the solution.’?”

John Boy: “Exactly, he kept saying it over and over and over. And people started ti believe him. I agree government is not always the best solution but its also not the problem all the time. I’d hate to have a private military.”

Greenie: “Anything else?”

50_cal_rifle_by_bebop953John Boy: “Yes. About the same time the NRA started promoting the idea that people had a right to own any type of firearm, no matter how lethal. I mean, who needs a 50 caliber semi-automatic rifle? Have you seen a herd of rogue elephants attacking people in the US lately?”

JC: “What about Democrats? Republicans are not the only ones at fault.”

Greenie: “Is that you talking, JC, or you need to be exorcised?”

John Boy: “Look, Democrats deserve some of the blame. But Democrats got pushed Arrow Leftfarther left when the Republicans shifted right?”

Jordan: “That’s an interesting observation. Democrats shifted left because Republicans shifted right. Why so? If you were the Democratic Party, why not grab the middle? Seems kike a great way to expand the base.”

John Boy: “My view is Democrats feared that if they grabbed the middle, then a faction of those farther left would splinter and start a 3rd party.”

Greenie: “And the 3rd party would erode a good portion of the Democratic base and the old Democratic Party might be left holding an empty bag.”

John Boy: “Politics is no different from marketing a product. Your product…the political party…needs to have a clear positioning statement that people can understand easily.”

Greenie: “You think a positioning of being is the middle, as it were, makes it harder for people to understand what the party’s about. Is that right?”

TrumpJohn Boy: “Look at the Donald in 2015 and 2016. You might have abhorred his statements but his position was clear. Right or wrong, people understood…or at least thought they understood…what he intended to do.”

JC: “You agree with that idea Jordan? You’ve been unusually quiet.”

Jordan: “I agree. The Donald aside, try to think of a highly successful product that does not have a clear positioning statement. You have to stand for something.”

John Boy: “I’ll tell you what else caused the parties to shift, particularly Republicans shifting right.”

Greenie: “Media outlets?”

parrothead_tnsJohn Boy: “Starting with talk radio. You and I know that Limbaugh, Hannity and the other talking heads are entertainers…and certainly not scholars. But many…probably most of the listeners actually believe these jokers are credible.”

Greenie: “How can anyone believe the Rush Man? He dropped out of what was the name of that college?”

JC: “…something like Southeast Missouri State Teachers College.”

Greenie: “I think that’s the school. Then he was convicted of dealing drugs.”

John Boy: “Plea bargain, please. But all those facts don’t matter to his listeners. To them, whatever Rush says must be true.”

Greenie: “Your constituents believe him?”

John Boy: “Many did…but far fewer after the Revenge Revolution. Like a lot of people american-revolution-728714in the US, they’re beginning to demand that elected officials in this country start acting like adults and not whiny little children.”

Jordan: “By the way, John Boy, forgot to ask what brings you to town?”

John Boy: “We’re visiting my granddaughter, who’s a student at Georgetown.”

Jordan: “She’s not at the Ohio State University? Smart kid.”

John Boy: “Her choice, not mine. And, thanks for reminding me. I need to run. She and my supervisor went shopping and they are probably back by now.”

Jordan: “John Boy, nice to see you. Thanks for spending a few minutes with us.”

John Boy: “I enjoyed it. JC, Greenie – very nice to meet you. And stay away from Jordan, OK?”

JC and Greenie (in unison): “We’ll try.”

Greenie: “Interesting guy. Some insightful observations.”

JC: “Agreed. I really enjoyed it. And I’ll enjoy a break as well.”

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