We do well when we all do well – a repeat performance

I wrote the following piece eight years ago and it still resonates today, although in some places we have done some of what is suggested. Our friend Erika reminded me yesterday that Eleanor Roosevelt had her own place in history along with her presidential relatives. FDR saw his wife and cousin as one of his trusted advisors, always willing to tell him the unvarnished truth.

Beginning tonight, Ken Burns’ documentary series called “The Roosevelts” will be aired on PBS. The series highlights the impact President Teddy Roosevelt, President Franklin Roosevelt and Teddy’s niece and First Lady Eleanor Roosevelt had on America and the world. While all three were “to the manor born,” they each took up the cause for the marginalized and disenfranchised people in America, even while Teddy was a Republican and FDR was a Democrat. But, Eleanor could hold her own and her influence and ambassadorship to those in need spoke volumes as she is noted as our greatest First Lady.

On CBS Good Morning, Burns was talking about the forthcoming documentary and he quoted a line which embodied their mantra – “we do well, when we all do well.” This line is so very pertinent and is one which I believe to my core. It also shows that the time of greatest growth in our country occurred when more of us did well and were out buying goods and services, moving into our homes (not necessarily estates), and living a heretofore idealized version of the American dream.  It also reveals why our recovery has not benefitted everyone equally, with the top 10% of our country doing quite nicely, but everyone else treading water or sinking below. Since we are not “all doing well” fewer goods and services are bought, so our recovery is not quite as strong.

It should be noted that both Roosevelt presidents are known for eco-energy measures and protecting our environment. Teddy is known as our greatest “water” president, by buying up land for national parks and watersheds and overseeing the construction of the Panama Canal, which is a heavy contributor to US naval power and sea trade prominence. FDR constructed more dams on his watch as part of the New Deal which helped provide jobs and infrastructure. FDR’s infrastructure investments were carried forward by Republican President Dwight Eisenhower which helped contribute to the aforementioned period above.

It is for these reasons we need to move forward down a path of doing more of what made America great. Investing in ourselves, our infrastructure and our future. This is the key premise in Thomas Friedman and Michael Mandelbaum’s book “That Used to be Us: How America Fell Behind in the World it Invented and How it Can Come Back.” This book highlights the co-investment in America’s infrastructure between private and public funds to maintain, restore, rebuild, and build anew our infrastructure to support business development and job creation. But, as history has shown us, we need to do more to help those who seem to get lost in the future growth or never get the same opportunities. Our history has also shown us the “haves” will take advantage of the “have-nots” to move ahead.

So, clearly we need to invest in ourselves and our future. Even while we cut expenses elsewhere, we need to invest in our infrastructure and development. But, we need to do some or all of the following, as well:

– Raise the minimum wage. Going to $15 an hour is a pipe dream, but following the recommendation to phase up from $7.25 to $10.10 is doable and has bipartisan support. It will create more spending and lessen pressure on public assistance programs.

– Invest more in education, not less and make sure after school programs are robust to attract kids and keep them engaged. Also, we need to improve access to pre-K reading programs which have shown to be impactful. But, most of all listen to teachers and not politicians. For example, teachers have noted the ideal class size is between 18 and 24 students. More voices can be heard and break out groups are easier with those sizes.

– Clamp down on pay-day lending who prey upon who Jesus called the “least of these.” Pay day lenders also prey upon our military families. Please know that pay-day lenders are a form of usury and they are one step above leg breakers. They also fund a lot of politicians who are blinded by the money to recognize what they do to poor people.

– Limit for-profit colleges who also prey upon people using government funding. People may find of interest the graduation rates from for-profit colleges are abysmal and they spend more money on marketing than teaching. And, when one area of funding was tightened up, they moved over to follow the pay-day lenders lead and are preying upon veterans and military people who have financial benefits since coming home.

– Educate people on what state lotteries are. They are a regressive tax taking a disproportionate share from people in poverty. Too many people throw money they need away on something extremely unlikely to happen. Ten lottery tickets per week may increase your chances by tenfold, but it is still a 10 out of 10 million probability, which is a likelihood of .000001

– Invest even more in our community college systems who are more geared toward career retraining and development. The former Clemson University president partnered with area community colleges as they knew how to reach out to industry better to help train the new work force. The President deserves credit for some of this, but we need more.

– Finally, per the lead in and the Roosevelt’s legacy, invest in our infrastructure and assets. Asset Based Community Development should be enhanced  and incented.

The Roosevelts’ legacy is significant on America. We are better as a country because of them. I look forward to seeing the series. Please join me as it may spur some more ideas. Some or all of the above would make us better and give us each more opportunity. We do well, when we all do well.

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Views from an independent, former Republican and Democrat voter

For what they are worth, the following are the views of an old fart who can sing the lyrics with truth behind them to Paul McCartney’s song about age; “will you still need me, will you still feed me, when I’m sixty-four.” I have been a Republican for over 20 years and Democrat for less than five. Around the 2007-08 timeframe, I left the GOP to become an Independent voter.

I would add I am more conservative, especially in financial matters, and more progressive in other issues. I believe in helping people climb a ladder when needed, but we need to be able to pay for it. I am also a big believer in Teddy Roosevelt’s mantra of a Square Deal, meaning giving everyone equal opportunity and I am also a believer in Franklin Roosevelt’s Fair Deal, which helped people who were disenfranchised and broken.

Politics seems to be less about policy and more about designed, fabricated and embellished wedge issues. To be frank, the Republican party public relation spin doctors do not want their candidates to speak about real issues, unless it is blame someone that they really have little control over. Democrats embellish and even lie as well, but it is not a normal distribution being heavily tilted to the right.

Let me set aside the obvious concerns this election and speak to a few policy concerns.

-the Republican Party has no platform, as they did not vote on one in the 2020 GOP presidential convention in Charlotte. Senator Rick Scott, who is heading the Senate campaign, came up with one, but it did not reach consensus. This is a one reason Republicans will not tell you what they will do to solve the problems as they don’t know. The PR people said don’t put a stake in the ground and no one can fault you for it. So, ask them “what do you plan to do about it?”

-Democrats are not perfect, but they are at least addressing or attempting to address issues. A gun governance law was passed (although watered down to garner votes by Republicans), laws impacting infrastructure funding, climate change funding, renewable energy measures, and health care premium and drug costs stabilization were passed and subsidies were passed to help people during the pandemic, building off the ones passed under Trump’s tenure. We also returned to the Paris Climate Change Accord. While an abatement is being provided on federal student loans, I personally would have rather seen something deal with healthcare debt, which is the number one reason for personal bankruptcy.

-Outside of the pandemic help, the key thrusts of the Trump administration were to repeal and replace the ACA (which thankfully failed), give a huge tax break to the wealthy and corporations, masking that the middle class may not come out ahead with limitations on state tax deductions and place tariffs on our trading partners which upset markets causing supply chain issues which were worsened by the pandemic. We also harmed our relationships by focusing more on the transactional and we pulled out of three major accords that went on without us – the Paris Climate Change Accord, the Trans-Pacific Partnership to better compete with China and the Iran Nuclear Deal.

-We should be talking more about what should matter most to people – helping them feed their families, pay for healthcare and keep a roof over their heads. We must deal more with environmental issues as a steward of this country and planet – on top of climate change, we have a global water crisis, that is being exacerbated even worse by climate change and lack of decision-making. If that were not enough, we have a lead pipe issue for distributing the diminished water supply. And, we must protect all people’s rights, not just those who look or worship a certain way. Finally, we have too many in a country this successful going to bed hungry. That is a damn shame.

-What we don’t need to be talking about is contrived issues that really don’t matter a whole lot. I won’t even mention them now as that would give them more cover than they deserve. If I did not mention it above, with the exceptions below, then maybe it is not that big of an issue.

The exceptions are two. We have a debt and deficit problem in our country that has been made worse with the last two administrations. Neither party does well with this issue. Neither. The GOP likes to beat on their chest about it, but made the debt worse under the previous president. The current administration did something about, but that is after making it worse with pandemic subsidies. Obama did something about, but only because both parties put in this sequestration fall back position that made cuts if no deal was reached. No deal was reached.

We have immigration concerns, but the problem is nowhere near as bad as portrayed and was not that bad in 2016 either, even though it was played up. I would ask Republicans if you want to deal with immigration, why did Speaker John Boehner not bring to a vote a bipartisan immigration bill which passed the Senate, which had enough votes to pass the House? Why did the former president renege on his number one campaign issue when a bipartisan deal was reached to give $25 billion for his border wall for making DACA a law? The reason is PR people told the GOP not resolving immigration issues was a more winning issue than solving them – not my words, by the way, but I agree.

Setting aside all of the above, as an independent, I feel my old Republican party is adrift an untethered to the truth. Michael Gerson, a conservative pundit, said the “party is in decay.” When the truth tellers are vilified and the liars aggrandized, it is does not lead to gravitas and veritas. If you tout a Big Lie, then it greases the skids to lie about more things. I believe our voters need to send a strong message to any Republican who touts the former president’s bogus election fraud story and to any Republican who has rationalized his deceitful and illicit behavior. They are perpetuating a fraud on the American people and many know they are so doing, which is even worse.

I encourage people to research how candidates stand on issues. If they support the Big Lie, then dig even deeper. And, know there is one party bent on restricting dissenting votes leveraging the Big Lie. My advice is know the rules and vote. And, remember who wants you not to as you do, as your voice does matter.

Friday Foibles and Follies

Happy Friday! With no clear cut subject in mind, let me wander through a few foibles and follies this Friday morning. In no particular order.

There is a long history that can support the following assertion, but when leaders lie, people tend to get harmed and too many die. Putin has lied about the dangers of COVID in Russia and people are suffering. Trump also lied about the COVID danger and more people have and still put themselves at risk. And, too many have died. Bolsonaro lies as much as the other two, coming up with National Enquirer type inanities, and people in Brazil are in danger. Leaders owe us the truth. Hold them accountable.

I left a message with two Democrat Congressional representatives, one of which is Speaker Nancy Pelosi. Please do something and pass the two bills. The infrastructure bill passed the Senate in July. It is well over due. As for the other bill, of course, it won’t have every thing people want in it. Get something done. I recognize fully Republicans are primarily motivated to do nothing except rationalize the untruths of the former president to keep his followers engaged. They would rather win a battle than have Americans actually benefit from a change. But, Democrats have lost their momentum and will suffer for their inability to do something. Again, get something done.

US Representative Liz Cheney, who has been ridiculed by her own Republican party for daring to tell the truth, has responded to Tucker Carlson, the talk show entertainer from Fox for pushing a documentary that the January 6 insurrection was a false flag operation meant to discredit Republicans. This is a bolder attempt by Carlson and other Trump sycophants to white wash what happened that day. Republicans are being discredited, but they have the former president and his cohorts to blame for instigating this insurrection. We can never let something like January 6 happen again and it highly offends me that some legislators want us to look the other way.

While Carlson is pushing this bogus narrative telling us not to look behind the curtain, The Rolling Stone (yes, that one) has done some excellent reporting that notes seven Republican members of Congress had a role in the insurrection. That is worse than those who stormed the place. I would like to remind people that Carlson’s employer, Fox News, said under oath in court that Carlson’s opinions should not be considered as news as he is not part of their news reporting team. Like Trump, Carlson’s opinions tend not to built on a foundation of truth. Believing them is truly a fool’s errand.

Finally, the current president is off to a climate change summit which is good. It is nice to see a president actually taking seriously the biggest threat, along with our water crisis, facing our planet. The former president announced to fanfare on June 1, 2017 that the US would leave the Paris Climate Change Accord. Ironically, the former president made this announcement the day after Exxon Mobil’s shareholders voted that management must inform shareholders of progress toward fighting climate change, the third fossil fuel company to vote that way in May, 2017. Biden is not perfect and has made some mistakes, but pushing for more climate change action is not one of them. The US government must help lead the way, matching what is happening at local and regional levels and in several industries.

That is all for now. Let’s help save our planet. Read multiple news sources to know the truth, use fewer plastics, eat less meat, drive less, and walk more. And, get vaccinated for COVID.

The ice is going to break – a retelling

The following post was written a couple of years ago, but remains relevant today. We have one party that would rather talk about issues they have told their following are desperately important, but are over-inflated and another party who is having trouble pushing some of these issues, while ignoring the last one.

The title is a crucial line from a movie called “The Dead Zone,” based on the Stephen King novel. I use this line as a metaphor for ignoring real problems. Let me explain the context. The movie stars Christopher Walkien as Johnny who, because of a car accident, could see the future after touching someone. But, if the future was less clear, a dead zone as he described it, he could alter the outcome.

A boy he was tutoring was supposed to practice ice hockey on a frozen pond with his demanding father as the team’s coach. But, when Johnny touched him, Johnny saw the ice breaking. His father said that was crazy, even though both men knew the father did a background check before hiring the tutor. Johnny slammed his cane on a chess board and said “the ice is going to break!” The son stayed home, but the father went ahead with practice and four kids drowned as the ice broke.

So, Mr. President, members of Congress and various state legislators, let me state obvious problems with this metaphor in mind.

– We have a global water crisis including in the US with the World Economic Forum identifying it as a top long term risk. Farmers are having to fight harder to protect their diminishing water rights. It will be made even worse by climate change, especially the droughts, wildfires, encroaching seas into aquifers and greater evaporation of reservoirs.  And, the problem is exacerbated with the significant water loss in fracking and lead pipes tainting some of the dear water.

– That climate change thing is a problem in its own right. Our federal government and several state government need to pitch in more and help. The former president backing out of the Paris Climate Change Accord is as poor a decision as could have been made, especially when it came the day after ExxonMobil shareholders voted to order management to inform them on what they are doing about climate change. Getting back to the table is the adult thing to do. Fortunately, strides have been made, but we need to accelerate these efforts.

– I learned today (note this was in 2019) our EPA is turning a blind eye to asbestos. Since Brazil stopped production of this toxic product, we now are importing asbestos from Russia. As a metaphor for this the former president, each bag of toxic asbestos imported from Russia has Donald Trump’s picture on it. A toxic material imported by a toxic man from another toxic man. While all of this is going on, you can easily watch TV commercials advertising about getting compensation for the use of dangerous asbestos without your knowledge.

– Although, debt is not an environmental concern, our so-called leaders are ignoring this huge and growing problem. As interest cost grows to a greater part of our budget, it will hinder our ability to do other things. Both parties are to blame for our increasing debt which has only been made worse by the pandemic relief and 2018 tax law change. At some point, some poor soul will address this issue assuring he or she will not get reelected. It should be noted that it will require spending cuts and revenue increases, as the math will not otherwise work, per the Committee for a Responsible Federal Budget.

The ice is going to break. We must heed the warnings now. If we don’t, we may be the ones who drown.

A Tale of Five Cities (a reprise)

The following brief post was written four years ago. Even more progress has been made in other cities in the United States and around the globe. Wind energy is growing like gangbusters in the plains states and and solar energy continues to grow in others. US car makers are competing with foreign auto makers to make entire fleets of new electric vehicles and offshore wind has been approved off the Cape Cod area to help us rival other countries in offshore wind, such as Scotland.

I am often bemused by folks that argue against renewable energy citing costs and jobs. Some say the industry is fledgling, but this does a disservice to the huge progress made over the last five years. Renewable energy jobs are growing at double digit rates per annum and the production costs continue to fall and are much closer to fossil fuel costs, and even cheaper when the present value of all costs (environmental degradation, extraction, transportation, maintenance, health care, litigation, et al) are factored in.

Yet, let’s set that aside and consider five cities in the US – Aspen CO, Burlington VT, Greensburg KS, Houston TX and Las Vegas NV. The first three cities are fully powered by renewable energy, where the last two have significant renewable energy portfolios.

Burlington was the first city to claim being 100% powered by renewable energy – solar, wind and hydro-electric. Per a November, 2016 Politico article, the electric utility has not had a rate increase in eight years for its 42,000 residents.

Greensburg came next, unfortunately they had to experience a tornado that leveled the town. As they rebuilt the town, they did so with a green mindset. So, using solar and the heavy wind across the plain states, helped electrify the town with renewable energy. Starting from scratch let them build for the future.

Aspen was the third city. I find this interesting as I read an article a few years back over the concern of climate change on the skiing industry. More often, climate change impact focuses on coastal cities. This city acted and has now pushed the envelope to 100% renewable energy.

Which brings me to Las Vegas. They got press stating they were 100% renewable energy powered, but that was somewhat of a misnomer. Yet, what they did do is still impactful. The 140 municipal buildings and facilities are now 100% powered by renewable energy. That is not the rest of the city, but it is a statement nonetheless.

Finally, let’s visit Houston, deep in the heart of oil rich Texas. Per The Guardian in an article this week, Houston is the leading city in the US in producing renewable energy through wind and solar power with 1.1 billion kWh. 89% of its electricity is renewable energy powered. They are in the top 30 in the EPA’s list of Green Partners leading six Texas cities on this list. As I mentioned recently, Texas gets just under 13% of its electricity from wind energy.

These are powerful stores, pun intended. Please remember them and tell others. We are passed the tipping point on renewable energy and we should highlight those leading the way.

Need for light rail and a little history lesson on collusion – a reprise from 2012

The following was written in 2012, but it provides a history lesson of why we need to dig deeper to understand sources of information. There is a reason collusion is such an ugly term. It should be noted cities are sharing ideas to make traffic flow more easily to lessen congestion and smog.

With the needs for better traffic planning in larger cities to alleviate congestion, diminish smog and let people move more freely, there has been a growing push for light rail lines. These lines are electrified trains that run adjacent and across traffic at crossing lights. They have tended to be more economical to build and run than the major subway and elevated train lines serving our largest cities. With the environmental concerns over global warming and the need for less fossil fuel usage, you would think these developments would be a slam dunk.

Unfortunately, projects like these are fighting uphill battles as part of the budget cuts and cost estimates. Unlike an operational budget issue, these capital projects are building assets that would benefit the communities and address the issues noted above. There is no doubt we need the best cost estimates possible to make these things happen and we should blend federal, state and local money to do so, but we should not be making this so hard. For some reason, the conservative right has latched onto this issue and for the reasons noted above have been more adamant against their development. The skeptic in me thinks there is more to this than just the budget issues, as we want to continue our focus on driving rather than riding. To me, a vibrant transit system is needed for a cosmopolitan area. Otherwise, we are just creating a congested, environmental problem.

What is interesting to me is a significant number of cities in the US had electric rail systems before they were destroyed and replaced by buses and cars in the 1930’s and 40’s. What is disturbing is how this came about. I would like to say this was done with good stewardship, but the unfortunate reason is several companies with a vested interest in the outcome, colluded to monopolize the bus industry and replace the destroyed electric rail or trolley system with their buses and cars. In 1949, after the fact, GM, Firestone Tires, Standard Oil of CA, Phillips Petroleum and Mack Trucks were found guilty of “conspiring to monopolize” the bus industry and using buses and cars to replace the electric trolley system that companies they owned had bought up. This conviction was upheld in appeal.

Wikipedia has a good summary of how these companies went about it. Search on “General Motors Conspiracy” and you can pull it up.  In fact, GM set in motion this plan to “motorize” the mass transit system dating back to 1922. And, if you look at the names of the fellow conspirators, you will note that two are oil/ gas companies, one is a tire company, one is a maker of buses and one is a maker of cars and trucks. These motorized road vehicles companies and fuel companies conspired to destroy an electric, rail based system that relieved congestion and smog. Even if their motives were altruistic, this would not seem like good transit planning.

Why do I mention all of this now? Two reasons. First, I want people to know why it is important to look beneath the source of information and data on any issue, but especially those which include oil and gas. There is too much money at stake and, as noted above, stranger things have happened. Just today, it was announced the President is supporting fracking to my chagrin, but is wanting the chemicals used by the oil/ gas developers to be disclosed. Yet, the industry lobbyists have battled down this ruling to be they only need to disclose this after the fact. So, they will be permitted to frack and only disclose the toxic chemicals that could leak into the water supply afterwards. To be candid, we need to move away from fossil fuels as quickly as we can. The best way to do that is to drive less with those oil/ gas-powered vehicles. Electric rail systems are a key part of that strategy.

Second, I mention this as conservatives are asking for fewer regulations and the elimination of some agencies. I worked in business and can say with certainty – businesses need to be regulated – it is that simple. If we don’t they will take advantage of situations to maximize short-term profit. The collusion verdict noted above was too late. Industries pay lobbyists a great deal to take the teeth out of regulation. The EPA has been fighting an uphill battle for years. We actually need the EPA to do more, not less. And, nowadays industries need only contribute to campaigns to share their viewpoints and push their desired outcomes. It costs too much money to run for office. This makes the lobbyists work easier.

In closing, I would ask that we all try to understand the stories beneath the news. When we see people against ideas that seem to be for the greater good, we should ask  ourselves why and look into it. Otherwise, we will miss the more elegant solutions and may avoid finding out who is more interested in an outcome than others. Not everyone is altruistic.

Commercial electric vehicle company opens microfactory near Charlotte in Rock Hill, SC

Per WCNC, a television news station in Charlotte, a report called “Electric vehicle microfactory promises to bring 240 jobs to Rock Hill” was aired. Rock Hill is part of the Charlotte Metro area just across the border in South Carolina. Here are the salient points per a MSN write-up of the piece:

Arrival, a company that produces electric vehicles around the world, announced Tuesday its plans to build a ‘microfactory’ in York County. The factory is part of a $46 million investment in the region and is Arrival’s first American microfactory. The company expects to bring 240 new jobs to the Rock Hill area. 

Arrival, which was found in London in 2015, creates zero-emission vehicles for commercial transportation. The South Carolina facility will utilize a new cell-based assembly method to produce vehicles, rather than the traditional assembly line. This will give Arrival the flexibility to produce any vehicle in its portfolio at the factory, according to a press release from the company.”

This is just more evidence of where future growth will occur. It is good to see our area embracing new technologies to make zero emission vehicles. The train (or in this case, the bus) toward renewable energy has left the station. Communities that are embracing this will see more growth and better cost models going forward, as well as help the environment.

This is is not an outlier story. Solar energy jobs have averaged annual double digit growth and dwarf coal energy jobs. Wind energy is also growing in the US, especially in the plain states with Iowa, Kansas and Oklahoma combined getting more than 1/3 of their electricity from wind energy. And, Tesla has branched into electric delivery trucks on top of their cars.

These news stories should be more widely communicated to show the path forward is being taken by states, cities and companies.

https://www.msn.com/en-us/autos/news/electric-vehicle-microfactory-promises-to-bring-240-jobs-to-rock-hill/ar-BB19ZdCG?ocid=msedgdhp

Interesting contradictions per John Oliver

Our world is filled with interesting contradictions. It is especially apparent when people ignore facts or try to tell you other so-called alternate facts. Here are a few that I find amusing courtesy of John Oliver’s “Last Week Tonight:”

– The Kentucky Museum on Coal is powered by solar energy. They save $13,000 per annum on energy cost using renewable energy.

– Scott Pruitt, the head of the EPA notes that 50,000 coal jobs have been created under this President, when there are only 76,000 jobs to begin with. The correct answer is 1,300 jobs, which is positive, but 48,700 lower than advertised.

– While coal energy CEOs like to blame President Obama, it should be noted coal jobs have been on the decline for decades. And, 50% of more recent job losses have been due to natural gas, 18% due to renewable energy and the rest due to technological improvements. That means 32% of the job losses are on the shoulders of the coal CEOs.

– As one coal company went into bankruptcy to reorganize, the CEO petitioned the court to allow him to cancel a non-union retiree medical and life insurance plan to save $3 million, but permit them to set up a retention bonus plan for management for $11 million.

– While the President has touted his interest in serving the needs of coal miners, his proposed budget eliminated funding for an Appalachian retraining program for displaced coal workers.

As Oliver points out, there is a huge distinction between actions that support the coal industry and actions that help coal workers. The President and others owe these coal miners the truth. Their jobs are going away and we need to work on career redevelopment.

We step over quarters to pick up nickels around here

I was struggling for a title for this post, as it started out with a concept I call “dialing for dollars.” What do I mean by that? In publicly traded companies, at the end of every quarter, the accounting staff goes dialing for dollars. Each year, various departments or “responsibility centers” set up an estimate of their expenses for the year. These amounts are typically accrued over the course of the year as expense items. At the end of each quarter, the accountants call you if you have not spent the money accrued for that quarter or year-to-date.

Why do they do this? They are looking to reverse excess accruals into income for the quarter. The company is having difficulty meeting the expected Earnings Per Share performance for the quarter, so they are looking to make the number any legitimate way they can. When a company does not meet their short-term expectations, even by a penny or two, the capital markets may reduce their share price. Yet, this unhealthy focus is usually harmful to longer term success, as it shortens the focus of the leadership. It makes leaders more like managers and usually waters down risk taking, as you don’t want to not meet your goals.

I have a friend in retail company who summed it up this way. He said “we step over quarters to pick up nickels around here.” Investments are often not made if the results are not profitable in the same fiscal year. Think about that for a second. You may have a great idea for the company that will produce profitable results either through revenue gain or expense reduction, but if it is not “accretive to earnings” (meaning adds to earnings) in the same year, it may not get done. So, the company would rather step over a quarter that will be earned next year for a nickel today.

The key reason is most incentive plans are short term in nature. Coupling that with impatient investors who read analysts’ expectations, leaders do not have the time to overcome an error that hurts earnings and causes them to miss estimates. They become more pensive and take fewer risks. This is one reason so many companies are sitting on cash these days as a leader does not want to invest poorly. When you hear their reasons, you have to take them with a grain of salt and a healthy does of skepticism. The CEO might say I am not investing because of uncertainty in the economy, because of Obamacare, or because of regulations. Excuse making like this has gone on for years and is largely poor-mouthing gamesmanship. The leaders do this, so when they achieve success, they can appear to have overcome obstacles.

Yet, I digress. The focus on short-term profits hinders progress toward long term goals. This happens not just in publicly traded companies, but in other enterprises as well. A good example is investing for a cleaner energy future. The profits in “drill baby drill” are huge for fossil fuel companies, so they are riding that horse for as long as they can. However, that is not the best answer long term, as the cost of not moving more quickly to alternative energy will outweigh the short-term benefits these companies gain now.

One of the hardest parts of this equation is the costs and profits are not always borne by the same entities. Developers want to get in, make their money and get out. Their typical modus operandi is to leave the problems for someone else. Fracking is a great example, where the fracking company makes a huge profit and the land owner makes a nice nest egg, but the problems are left for the community at large through less usable water, poisoned water, air quality concerns, and landscape degradation. We are only beginning to see the negative results of fracking which will be a gift that keeps on giving in a negative way.

So, we need leaders to be leaders and look longer term. How can we create sustainable earnings? How can we be good community citizens and help the lives of everyone? How can we make money without harming others? If we allow them to continue focusing on short-term, the long term problems will not get solved. And, then it will cost more money to fix things. Eventually, someone will have to pay the fiddler while we dance to the music today.

The Republican Response to Climate Change is “Mindless” per a Former GOP Governor/ EPA Head

The above quoted phrase is from an interview with former New Jersey Governor Christine Todd Whitman who was the keynote speaker at the Charlotte Chamber’s annual Energy Summit. Whitman also served as the administrator of the Environmental Protection Agency (EPA) under President George W. Bush. After her discussion which she promoted the use of nuclear power as a part of an all of the above strategy that must include more alternative energy, she was interviewed by Bruce Henderson of The Charlotte Observer. The questions below and responses are from this interview which was reported under the title “Ex-EPA chief Whitman promotes nuclear power” in the November 16, 2013 edition.

“Q. What’s your view of climate change?” A. Climate change is real. If you don’t think that, you haven’t been outside or read the newspaper or watched television for the last couple of years. We are getting more frequent, more severe storms and droughts and floods, all of that. But Earth’s climate has been changing since it was formed. We had an ice age. That went away and we weren’t around to screw that up. However, to think that what we’re putting into the atmosphere is not having an impact on climate change and Earth’s ability to regulate itself I think is being naive. The point is, the climate is changing, the sea level is rising, we’re losing the ice caps, and we need to prepare.

Q. How do you explain the conservative Republican response to climate change? A. The response is mindless. It is absolutely clear now – you can’t find a credible scientist who says that climate change isn’t occurring. You will find a difference as to what degree they believe the human impact is exacerbating a natural trend. It was Ronald Reagan who made climate change a regular part of the National Security Council agenda. (Republicans) should own environment anyway if you go back to the first public lands set aside, Abraham Lincoln and Yosemite, and then you have Teddy Roosevelt and Richard Nixon who established the EPA. It’s our issue. Its more a (current) reaction to, we don’t want government anywhere, anytime, anyhow that the hard-line libertarian streak is fueling.” 

Since her purpose is to shake up her party, I will leave her words to resonate as is. As an Independent voter who left the Republican party in 2006, one reason being its stance on global warming, I find that her attempts to help the GOP join the conversation that is already occurring refreshing and long overdue. Bruce Henderson’s article can be found on www.charlotteobserver.com if interested in reading the full interview.