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Archive for the ‘The Economy’ Category

Exporting American Products and Intellectual Property

Tuesday, December 8th, 2009

Whenever there is a loss of jobs, particularly in the manufacturing sector, the cries begin from union leaders and pro-union politicians that we need to protect “our” jobs. What they really mean is we Americans need to keep the status-quo, not deal with the progress of technology, the global economy, and reality.

Cars are made by robots and machines with an assist from humans, automated attendants help callers navigate through phone systems at companies large and small, but there are still jobs here at home – just maybe not the same job your grandfather held decades ago. It is called progress.

Because of the perceived loss of jobs, the word “import” has negative connotations in some areas, but we have to realize it is a balance and that American-made exports are nothing to sneeze at.

Exporting American Intellectual Property

Hollywood movies are played around the world to audiences in hundreds of countries, and Justin Timberlake doesn’t just sell CDs and iTunes downloads in Ohio. Yes, many software development and tennis shoe manufacturing jobs are now in Sri Lanka and Vietnam, but Boeing still builds jets in Washington, not in Bulgaria. In fact, Boeing’s revenue in 2008 included $23.8 billion from outside the United States.

But looking closer to home, Toyota has built trucks in Texas since 2006, Mercedes builds SUVs in Tuscaloosa, Alabama, and Hyundai’s factory is in Montgomery, Alabama.

Hyundai Factory in Montgomery, Alabama

Nebraska Exported $5 Billion of Products in 2008

Soybeans are exported around the world to the tune of 15 million metric tons, and the state of Nebraska – yes Nebraska, exported over $5 billion in goods in 2008.

Workers become more specialized as technology advances, and this is the reason why horses are no longer used to plow fields, and why toll takers on bridges are being replaced with electronic devices such as FasTrak which sticks to your windshield and is read by a scanning device.

One sector shrinks and another expands – always has and always will.

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Tags: boeing, fastrak, hyundai, intellectual property, itunes, justin timberlake, manufacturing, mercedes benz, nebraska, outsourcing jobs, technology, toyota, u.s. exports, u.s. imports, unemployment, unions
Posted in Business, Community, Politics, The Economy | No Comments »

Hiring Workers With Disabilities

Thursday, December 3rd, 2009

In a perfect world there would be no discrimination in society, the work environment, within companies, or in the actual hiring process. We have laws in place to protect such instances from occurring, as federal law prohibits any form of discrimination against workers for race, color, religion or disability – but do they really protect?

A number of years ago I recall interviewing a candidate for a management position at our San Francisco Financial District location. His resume warranted a call and a phone interview, which he passed.

Accepting the invitation for an in-person interview, he arrived in a wheelchair. It wasn’t the type of wheelchair one uses when you’ve broken or lost a leg; it was an all-in-one motorized job and the man sitting in the seat was rather tiny and truly handicapped, likely from various birth defects. He was legally protected by the Americans with Disabilities Act, at least in a perfect world.

This put me in an awkward position knowing that the job consisted of not only navigating around an office and showroom floor, it also included demonstrating computer hardware and some lifting. I had to be very careful in what I said and how it was said, and to be honest, from a technical standpoint, he was qualified for the job. The company, which no longer exists, failed to fully detail the job requirements to include lifting and moving boxes containing computers and related products and taking physical inventory of these products.

This gets to the study that some MIT economists conducted that show the employment numbers for disabled Americans is declining because, in part, companies appear to be wary of potential lawsuits. How much does a company need to alter its workspace and environment for a person with a disability? What if that person cannot complete all the tasks? Does the company release the individual and risk a lawsuit, or simply live with the mistake and hope he or she finds another job?

In my case I was fortunate to have a large pool of qualified applicants from which to choose. Unfortunately, this brings up a huge issue – does a company do the right thing and hire the best qualified individual regardless of physical attributes, or do they play it safe?

Companies I’ve worked for have been victims of frivolous lawsuits from a woman who was fired because she was consistently late to work and got into regular shouting matches with her soon-to-be ex-husband over the phone on company time in the office. She sued for sexual harassment. Her lawyer eventually dropped her due to lack of any evidence.

Another suit was filed by a salesman who was habitually late due to a self-diagnosed sleeping disorder. He sued claiming racial discrimination. He was Chinese-American and the company was Taiwanese-owned, so that didn’t work out too well for him.

A Human Resource professional, who is also a friend, told me the way to weed out potential headaches is done in the resume review process. They look for anything that may go against the culture of their company: the mention of any religious, ethnic or racial fraternities or clubs in school are a red flag, as are listed political or environmental affiliations. Some companies, from what I understand, also go so far as to eliminate “older” people from consideration because they may not fit the company’s youthful culture, may be unwilling or unable to work long hours, or put a burden on the healthcare plan. Too many lines on a resume and dates on college degrees are dead giveaways in getting a rough estimate as to an applicant’s age, as youth equals less expensive in many cases.

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Tags: age discrimination, ageism, americans with disabilities act, handicapped, MIT, racial discrimination, workers with disabilities
Posted in Business, Race and Ethnicity, The Economy | No Comments »

Made In China Is A Good Thing

Wednesday, November 25th, 2009

I had a discussion recently with my Aunt Vera, a wonderful lady in her 80’s who still lives in the house she and my father grew up in San Francisco. She, like many of her era were raised to believe that unions and union jobs were the way to achieve middle-class lifestyles, and that companies owed lifetime employment to their workers.

As my kids were running around and making more noise in the house than she is used to, she mentioned to me between sips of tea just how horrible it is that all the jobs are being outsourced to India and Mexico, and that there are no good jobs left for hard working Americans.

I asked her what she meant, and she went on to say that all the factory jobs and the jobs that made the Bay Area and our country strong were being sent to places where labor was so cheap. I knew where she was going but I wanted to hear it from her, since if I were in her shoes I’d likely feel the same way. My goodness, MADE IN THE U.S.A. used to mean something is what she was trying to say.

Levi’s 501 Jeans Are Made in Haiti

My dad used to drive cool Thunderbirds and even had a 1965 Firebird. I had an RCA TV in the house growing up, and my Levi’s 501 jeans were made in America, now they are made in Haiti. American cars were cool, pre-Pinto, Vega and Pacer, then the 1970’s happened when Detroit got lazy and Toyota and Datsun took their lunch money.

Levis 501 Jeans Made in Haiti

I started talking a bit about progress, and how technology moves things along for the betterment of not only our society, but also the global economy by allowing workers in countries that do manufacturing to earn good livings so they can buy our Nike sneakers, watch Disney movies and have a Coke with a smile.

Then I asked her how, when she was a kid, she made a phone call. “Didn’t you pick up the ear piece and crank the handle on the side of the box to alert the operator who then asked for the number?” She nodded and I jokingly said, “But those poor operators – they’re all out of work!” She chuckled.

Then I commented on her new TV in the living room, a nice model that was about 32”. I then mentioned the number of TV’s manufactured in the United States was right around zero, and hers’ was likely made in China. (Vizio, a company headquartered in Irvine, California, led by Taiwan-born William (not his given name) Wang, claims to be America’s #1 LCD HDTV Company. Their televisions are made in China.)

She winced.

Then I quickly jumped in and said, “Just think, 20 years ago a 19” Sony TV cost about $500, and today you are getting a 32” TV for the same price that gives you a better picture.”

Made In China Is A Good Thing

As the chat progressed, she got the fact that because some things are made in places like China where the cost of living and the corresponding wages are significantly less, more American people can enjoy things that used to be considered luxury items – like an LCD TV. To really put the matter of TV prices into perspective and why “Made in China” is not a bad thing, chomp on this: A Sony 42” Plasma TV had a MSRP of $7999.00 in 2002. Yes, EIGHT THOUSAND DOLLARS for a 42” TV, seven short years ago. Today I can buy a 52” Sony TV with a free Blu-Ray DVD Player for about $1500.00, and Costco is selling an off-brand ProScan 40” LCD set for a ridiculously low $499.00!

I would love to buy American-made products, but I am not willing to support the unions that seemingly ruin a good thing whenever they can, in the “best interests” of their rank and file. In other words, I am not willing to pay a large premium to buy goods made in this country, when I know the Sony TV made across the Pacific Ocean is of better quality and price than any comparable set that could be made here.

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Tags: costco, lcd tv, levis 501 jeans, made in america, made in china, made in haiti, pacer, pinto, plasma tv, unions, vega, vizio, william wang
Posted in Business, Community, Political Satire, The Economy | No Comments »

Union Workers Are Lazy and Helpless

Friday, November 13th, 2009

This past week, there have been several large companies announcing layoffs because of drooping stock prices, lower than expected sales, or simple job overlap. That’s business in the real world, where if the company needs to meet the bottom line or appease shareholders, the appropriate cuts are made. Companies do what is best for the company – end of discussion.

When a city government lays off workers, union workers, all hell breaks loose. Let’s see, cities are broke and many in deficit mode due to over-bloated benefits and pension packages, they support illegal immigrants’ health care and social services all while crimes go unsolved and potholes unfilled, and there is griping over layoffs?

Yes, Mr. Shareholder, we donated $7 million to the Guatemalan orphan relief fund and upped our warehouse manager’s benefit package to include his grandparents in Burma, and lost $27 million last quarter, and no, we cannot lay anyone off because that would be unfair. Can you imagine?!

Sprint, Electronic Arts and Microsoft Cut Jobs

Sprint lays off 2000 workers and Electronic Arts cuts 1500 from their force, and since there is no union involved, Nancy Pelosi is not butting in asking for better severance or government assistance. Heck, even Microsoft eliminated 800 jobs, but that didn’t even ring a bell or get a mention in the paper or evening news. These are technology jobs, the theory goes, so these people will just go to another tech company or start a company, right?

Actually, that is right. That is correct because that is the way technology jobs go…one company goes up another slips and so goes the workforce. It’s not the end of the world when Oracle buys PeopleSoft or Siebel System and lays off 10,000 because they bounce back or decide to start a company themselves.

But heaven forbid, the City of San Francisco decides to lay off 500 workers to help close a $438 million budget deficit and the world stops. Yes, you read correctly, San Francisco has a $438 million budget deficit! How is that even possible? They tax the hell out of businesses, San Franciscans pay the highest sales tax rates in the country, then there are hotel, airport, gas, payroll, parking and other assorted taxes, and they are still $538.00 short per resident.

Apparently Union Workers Lack Drive and Ambition

Apparently city and union workers are helpless, lack drive and ambition, and have no visible levels of talent, and a layoff will cause them to wilt away and die. Good for Gavin Newsom for not protecting these coddled workers from the chopping block as the some members on the Board of Supervisors wanted.

Losing a job sucks, we all know that, but (bleep) happens, and you deal with it. The trans-gendered union boss, Robert Haaland of the Local 1021, stated¸”This is about fairness and equity,” since most of the affected workers are women and minorities. OK, so make it more fair and equitable – lay off more workers and make them straight, male and majority.

Transgendered Union Boss Robert Haaland

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Tags: city of san francisco, electronic arts, gavin newsom, helpless, job cuts, layoffs, lazy, local 1021, nancy pelosi, peoplesoft, robert haaland, sprint, union jobs
Posted in Business, Community, Political Satire, The Economy | 2 Comments »

New 2010 Chevy Camaro – Is Detroit Back?

Wednesday, November 11th, 2009

Is Detroit finally “getting” it? While I don’t necessarily agree with the bailout of the auto industry, and I firmly believe the United Auto Workers (UAW) has crippled the Big 3 of Ford, Chrysler and General Motors, I actually see a few American cars driving down the freeway I would be proud to drive.

Growing up in the 1980’s, muscle cars from the late 1960’s and 1970’s were what the cool guys in high school drove. It was the Trans Am, Cutlass, Camaro or the 442 that made guys say ‘WOW” and girls purr “OOOH.” They were real cars that sounded fast and tough, not the whining blender noise of the tricked-out 4-cylinder imports that populate our roads today.

1969 Olds 442 Muscle Car

We are all grown up now and well entrenched in our 30’s and 40’s and mid-life crisis is either hitting or is right around the corner and we want a car that looks cool, sounds cool and that when we drive it, other people think we are cool for driving such a cool car.

New 2010 Chevy Camaro Looks HOT!

Enter the new 2010 Chevy Camaro. It looks like a classic and sounds every bit the part. I actually saw the collective heads of kids turn while leaning on their racing-stickered Honda Civics and Acura Integras as a new Camaro drove in. If the kids think it’s cool…then it’s pretty damn cool.

I’ve yet to drive one yet so I know nothing of the feel, workmanship or the ergonomic design (or lack thereof), but if I can judge a book by its cover, let’s chalk one up for Detroit – the new Camaro looks hot!

2010 Red Camaro

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Tags: 2010, 442, Big 3, camaro, car industry, chevy, Chrysler, cutlass, detroit, Ford, General Motors, muscle car, olds, trans am, UAW
Posted in Business, The Economy | 1 Comment »

Michigan Economic Development Corporation Wasting Money?

Thursday, November 5th, 2009

I was thumbing through last month’s copy of Fast Company magazine and came across the Michigan Economic Development Corporation’s ad and it jogged my memory.

Michigan Economic Development Corporation

I saw the MEDC advertisement several months ago in the magazine touting “aggressive financial and economic incentives available right now,” for companies that would consider a move to their humble state.

Michigan Economic Development Corporation Never Responded

I visited their website, MichiaganAdvantage.org, read through the propaganda and dropped a note to their email address posted: MEDCservices@michigan.org

I asked about the incentives that may be available to a willing-to-move start-up technology company that is currently in San Jose, California, how my company may benefit and any other offerings.

You’ll never guess the response…ahh….the suspense!

Yes, I am still waiting for their response. No email response, no phone call, no postal mail with a Media Kit, no smoke signals. Zip, zilch, nada.

I would be interested in moving our Internet-based company to a location outside California if there were incentives that made fiscal sense, such as tax breaks and investment.

Your tax dollars are paying for these full-page ads, Michigan residents, and the people who are recruiting companies are dropping the ball.

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Tags: fast company, medc, michigan, michigan economic development corporation, michiganadvantage.org, relocation, san jose
Posted in Business, Community, The Economy | No Comments »

Eliminate Government Pensions

Monday, November 2nd, 2009

Here is a thought: Moving forward, eliminate all pensions for government jobs where you do not risk life and limb.

The secretary who works at the DMV? She can have a 401k like the rest of us.

The Assistant DA for the county? He gets access to a non-matching 401k just like his peers in the private sector.

Bridge Toll Taker

The Golden Gate Bridge District is once again facing a deficit north of $100 million, and they are looking at ways to raise cash such as letting people walk under the bridge and of course, raising tolls. Never mind that there is a Bridge Commission that draws a salary and other perks such as a pension. Or all the bridge workers that will get paid until the day they die that are factored into this deficit that we, the taxpayer, must make up.

The City of Vallejo, which is also broke, wants to tax people for text messaging. The absurdity of it all…taxing texts!

It’s a never ending cycle of bureaus, task forces, committees and administrative assistants all getting benefits that far exceed the private sector and then can collect a check forever if they are able to slack for a couple of decades

Highway Patrol, State Troopers, police, fire, Secret Service and military – all exempt from this new ruling. Anyone who needs to carry a firearm or goes into situation where they can potentially die, you get a check. Teachers, you get a check, too. You should also get a raise, but the union gardeners are getting that allocation.

If you sit in front of a computer, clean trash receptacles, or take my picture at DMV, welcome to the real world of getting a paycheck twice a month and worrying about retirement like the rest of us.

How can we make this reality? I am not sure, but I am open to your suggestions and would love to hear your thoughts.

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Tags: 401k, golden gate bridge, government pensions, taxes, text messages, vallejo
Posted in Community, Politics, The Economy | No Comments »

Gavin Newsom Exits Race – Bad News For Republicans

Sunday, November 1st, 2009

San Francisco mayor, Gavin Newsom, decided to drop out of the race to become California’s next governor. This is bad news for Republicans, as this leaves Jerry Brown as the early favorite to win the Democratic nomination for the 2010 election.

You remember him, Governor Moonbeam from the 1970’s? He dated Linda Ronstadt because everyone thought he was really gay.

The Republican’s hope is likely ex-eBay CEO Meg Whitman, who has a boatload of money but no political experience and forgot to vote in a number of elections because she was too busy.

Newsom, love him or hate him, would have been better for the state than Brown, if the Democrats won the office back. Newsom is logical and actually cares about doing what is correct whereas Brown gives the aura of needing to be correct to feed his ego and “politically correct” to show he isn’t really just a rich white guy who’s never held a real job. In other words, the lesser of two evils, from a Republican point of view.

Newsom would have brought some elegance to the office. He has movie star looks and an heiress for a wife, along with a newborn baby. He can throw out the first pitch at a ball game and not embarrass himself. Brown looks like an angry old man, and Meg Whitman looks like she can beat Brown or Newsom in an arm wrestling match.

Meg Whitman Air-Kissing John McCain

Whitman does bring common sense and decades of real-world business experience that should, in a perfect world, have an impact on the state. The problem is she will likely run into the same brick wall that Arnold banged his head into when trying to bring sense to the school systems, voting districts and spending. The unions and Democrats ganged up and twisted the truth, not for the betterment of the state, but for the betterment of their padded taxpayer-paid pensions.

Think about this for a second…California leans left, meaning the chances of a Republican winning are slim to begin with. We pay the most taxes in the nation and we lead the world in innovation, but the state is broke. I know why and you know why, and Meg knows why, but she would be powerless to fix the problems, and Jerry Brown will just make things worse with more departments, bureaus and task forces. That is why we should be more than a bit worried. Sorry to see you go, Gavin.

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Tags: california, democrats, ebay, gavin newsom, gay, governor's race, jerry brown, meg whitman, republicans, san francisco
Posted in Politics, The Economy | 2 Comments »

Yahoo Kills Off GeoCities an Internet Legend

Tuesday, October 27th, 2009

Yahoo has closed the once-popular GeoCities website, several months after notifying users of its imminent demise.

Yahoo Kills GeoCities

GeoCities was a pioneer and a goldmine for its founders and investors, fetching $3.6 Billion in 1999 dollars. Hopefully the beneficiaries cashed out quick, as that was once-upon-a-time when Yahoo’s stock was well above the $300 per-share mark.

The point here is, Yahoo once again blows it…shoots themselves in the foot…makes a dumb move…drops the ball…is the butt of a joke. Yes, the site was antiquated in Internet terms, but GeoCities had users which means it had value.

Analogy – I own a fixer-upper in The Bronx. It needs some paint and the pipes aren’t copper, and ok, there is a slight bug problem. So what do I do? Tell the tenants they have 120 days to vacate since I am going to demolish the building – or – sell to a speculator who knows a good contractor who can renovate?

To give you an idea of how much value GeoCities may have held, it was the 199th most visited website in the world at the time of its shuttering, according to Alexa, the de-facto authority on web traffic measurement.

This was a pre-Carol Bartz decision, I am sure, but the deal was sealed on her watch.

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Tags: alexa, carol bartz, geocities, website traffic, yahoo
Posted in Business, The Economy | No Comments »

Southwest Airlines: An Eco-Criminal?

Monday, October 26th, 2009

I love Southwest Airlines. They are rarely late for any reason other than bad weather and the morale of the rank-and-file is great, at least when facing the public. I’ve flown Southwest enough in the last year to earn 3 “free” roundtrip tickets.

Vintage Southwest Airlines

Their CEO, Gary Kelly, has kept the company out of the tabloid headlines, and by all accounts done a great job balancing the P&L, the volatile cost of fuel, and keeping a reserve account of $2.4 billion, for a rainy day according to an interview in the October issue of Smart Money. Analysts say that figure is under $1 billion, but still, it’s cash in the bank.

With all my affection for the airline and its ability to get me to Columbus, Indianapolis and Spokane, something dawned on me while flying back to San Jose from Tampa recently – Southwest Airlines is NOT eco-friendly.

My trip from Tampa included a stop in Houston and a plane-change in San Diego, so in all there were three legs of the trip. Each leg, or flight, was nearly full meaning there were in the neighborhood of 180 passengers on every departure. As the beverage cart made its way down the aisle toward me, I realized Southwest, and for that matter, most, if not all, airlines are wreaking havoc on the environment.

Since most of the passengers requested a soft drink or water, the flight attendants cracked open dozens of Coke and Sprite cans and bottles of water to quench our collective thirsts. Three passengers per can…50 cans per flight…maybe 150 cans of soda for the time I was on the plane? And how many flights does Southwest have each day of the year, several hundred?

That is a lot of aluminum. Yes, they recycle so they get three-cents back per can, but that is not the point. It’s plain wasteful, and if my calculations are in the ballpark, Southwest pops open about 30,000 cans of soda each and every day of the year, which comes out to about 1.1 million aluminum cans each year!

One MILLION cans of soda, Mr. Kelly! Unless you are a shareholder in ALCOA, that is obscene. Actually it is obscene even if you are/were.

According to your published financials, the company lost roughly $16 million in Q3.

Mr. Kelly, here is how you can make up a big chunk of that: Lose the cans and bottled water and install a soda dispenser and serve filtered water. People only order a few kinds of soda anyhow, so offer up Coke, Sprite, Mr. Pibb and Ginger Ale, along with carbonated water. Partner with Brita, the water filter folks, and voila, there’s a half-million dollars saved annually.

It would make a great TV commercial on how you crushed the can. Coke still gets paid, but you can make them look like a champ, too.

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Tags: airlines, aluminum cans, brita, coke, eco-friendly, gary kelly, soda, southwest, waste
Posted in Business, The Economy | No Comments »

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Archive for the ‘The Economy’ Category

Exporting American Intellectual Property

Nebraska Exported $5 Billion of Products in 2008

Levi’s 501 Jeans Are Made in Haiti

Made In China Is A Good Thing

Sprint, Electronic Arts and Microsoft Cut Jobs

Apparently Union Workers Lack Drive and Ambition

New 2010 Chevy Camaro Looks HOT!

Michigan Economic Development Corporation Never Responded