Chutzpah of the Day

It is interesting that the buck just never stops at this President's desk.  Apparently, the reason for the delay in approval of the Keystone Pipeline is the Republicans.

The approval process for the Keystone XL pipeline has been delayed by Republicans playing “political games,” Treasury Secretary Jack Lew says.

Lew said that the economy is “strong” and more resilient after 40 months of growth but the economic recovery is not fast enough, which led Chris Wallace on “Fox News Sunday” to ask whether approving the pipeline would help speed up job growth.

“If you’re so interested in creating more jobs, why not approve the Keystone pipeline, which will create tens of thousands of jobs?” Wallace asked of the pipeline under review.

“There were some political games that were played, that took it off the trail and path to completion, where Republicans put it out there as something that was put on a timetable that it could not be resolved. It caused a delay,” Lew said. “Playing political games with something like this was a mistake.”

 

Thoughts on Online Reviews, Suburban Express, and Dennis Toeppen

Apparently Dennis Toeppen likes to sue the customers of his bus company Suburban Express  (here, and previously here) with as many as 125 suits just this year in small claims court, many aimed at stifling customer criticism of the company.

This is just incredible to me.  Last year we served about 2 million customers in the parks we operate (I am guessing that is a few more than Mr. Toeppen serves).  Over the last 10 years we have served about 17 million customers.  Do you know how many I have sued?  Zero.  Do you know how many I considered suing even for a microsecond?  Zero.  Unless a customer is 6 months late on a payment that equals a measurable percentage of annual revenues, you don't sue your customers.

I know online reviews can be a mixed bag, and some people's mental state or unreasonable expectations simply do not allow them to be fair.  Get over it -- take your ego out of the equation.  For God sakes, Casablanca has 39 1-star reviews  (I always thought John Scalzi had a healthy way of dealing with this, publishing his one-star Amazon reviews on his blog from time to time.)

We get negative review from time to time.  The vast majority, while perhaps overwrought from what some might feel was a small slight, have a core of truth.  We treat all these reviews at face value, we try to track down the customers to find out more about their experience, we give out refunds and gift certificates, and then we fix things.  Our biggest problem is that we hire what seem to be perfectly normal people who turn out to be arrogant and overly-officious when dealing with customers.  This tends to come out in the form of an irritating predilection to over-enforce every trivial rule until customers' vacations are ruined.  In other words, they seem to act like Mr. Toeppen and his employees.  Negative customer comments are a treasure, as I can't be in every campground every minute of the day, and these comments are often the canary in the coal mine, letting me know we have an employee or process or training problem.

Yes, in a few circumstances we get flat out dishonest comments.  One ex-employee was so upset at being terminated that he posed as a customer, posting fake reviews about how we employed a sexual predator in some campground.  Several review sites we work with, knowing that I don't make a habit of trying to take down negative reviews, were willing to take this one down once explained.  The other sites that by policy do not take down reviews allowed me to post a comment under the review, wherein I explained the situation, and gave my office phone number and email for anyone to call if they had any concerns about the campground either before or after the visit.

When Environmentally Sustainable Actually Was Sustainable

Many of your know that my company operates public parks.  So I see a lot of different approaches to park design and construction.  Of late I have been observing a trend in "environmental sustainability" in park design that is actually the opposite.

The US Forest Service has built more campgrounds, by far, than any other entity in the world.  For decades, particularly in the western United States, the USFS had a very clear idea about what they wanted in a campground -- they wanted it to be well-integrated with nature, simple, and lightly developed.  They eschewed amenities like pools and playgrounds and shuffleboard.  They avoided building structures except bathroom and shower buildings.  The camp sites were simple, often unpaved with a table and fire ring and a place for a tent.  They used nature itself to make these sites beautiful, keeping the environment natural and creating buffers of trees and natural vegetation between sites.   I have never seen an irrigation system in a western USFS campground -- if it doesn't grow naturally there, it doesn't grow.

This has proven to be an eminently sustainable design.  With the exception of their underground water systems, which tend to suck, they are easy to maintain.  There is not much to go wrong.  The sites need new gravel every once in a while.  Every 5-10 years the tables and fire rings needs replacement, hardly a daunting task.  And every 20-30 years the bathrooms needs refurbishment or replacement.  The design brilliance was in the placement of the sites and their integration with the natural environment.

Over the last several months, I have been presented with plans from three different public parks agencies for parks they want to redevelop.   Each of these have been $10+ million capital projects and each one had a major goal of being "sustainable."   I have run away from all three.  Why -- because each and every one will be incredibly expensive and resource intensive to operate and of questionable popularity with the public.  Sustainability today seems to mean "over-developed with a lot of maintenance-intensive facilities".

What each of these projects has had in common are a myriad of aggressively architected buildings - not just bathrooms but community rooms and offices and interpretive centers.  These buildings have been beautiful and complex, made from expensive materials like stainless steel and fine stone.  They have also had a lot of fiddly bits, like rainwater collection and recycling systems and solar and windmills.  They have automatic plumbing valves that never seem to work right.  The grounds have all been heavily landscaped, with large lawns that require water and mowing, with non-native plants that need all kinds of care.  Rather than a traditional sand pad for tents they have elaborate wooden platforms.

The plans for these facilities are beautiful.  They win awards.  In fact, I am increasingly convinced that that is their whole point, to increase prestige of the designer and the agency that hired them through awards.  But they make no sense as a recreation facility.  In 10 years, they will look like hell.  Or sooner, since one agency that is in the process of spending a $22 million bond issue on 5 campgrounds seems to not have one dollar budgeted for operation and maintenance.

These things actually win awards for sustainability, which generally means they save money on one input at the expense of increasing many others.  One design  got attention for having grass on the roofs, which perhaps saved a few cents of electricity at the cost of having to irrigate and mow the roof (not to mention the extra roof bracing to carry the load).  I briefly operated a campground that had a rainwater recovery system on the bathrooms, which required about 5 hours of labor each week to keep clean and running to save about a dollar of water costs.

Prices and Sustainability

I had a discussion with a locavore-type person in Boulder, Colorado last week at their farmers market.    He told me that while his costs to grow his produce were higher than the stuff I might find in Safeway, his products were more sustainable.

I asked him how that could be.  I observed that in a well functioning market, the costs of his inputs should reflect their relative scarcity and the scarcity of the resources that went into them.   Over time, particularly in a commodity market, prices were a sort of amazing scarcity integral.  If his costs were higher, that should mean he is using more or scarcer resources.  Isn't that the opposite of sustainability?

In fact, prices are such an amazing, almost magical, gauge of an item's resource intensity that it should tell us something that folks who purport to care about sustainability tend to have a disdain and distrust for markets and prices.   Sure, I understand certain externalities (CO2, for example, if you accept it as one) are not necessarily priced in, but the mistrust of prices seems to go beyond this.

In this particular case, his argument was the food was local and so used a lot less resources in transportation, and organic, so used less fertilizer and other chemicals.  But this is simply tipping the scales, trying to apply new weights and priorities to certain inputs that simply don't obtain in the real world.  The locavore focus on transportation costs is amazing, as it focuses on just one narrow cost and energy input for food, ignoring the energy of production and the energy to deliver other inputs to the local farm.  Take our situation in Phoenix -- sure, a local farmer used less energy to truck the finished food to market, but how much energy and other resources were used to move the water to grow it hundreds of miles to our desert here?  Or what about land use -- organic local farming may save trucking and chemicals, but what if the yields per acre are a third of what one might get on the best soils in a another part of the country?  Prices take into account the scarcity of not just tranportation fuel but land and labor as well.  Sustainability advocates often want to put their thumb on the scales and overweight just one resource.  That is why, for example, in the name of CO2 reduction we are clearing tons of virgin land, including land in the Amazon, to farm biofuel products.

I Did Buy Myself a Shirt at Comic-Con

jayne shirt

Cunning, eh?

 

Blast from the Past

I have not reread this little classic article from 9 years ago, until a customer in California found it and complained that it was outrageous that the state would actually allow such a person as its author to operate anything in a state park.  So I suppose it is worth relinking, if just for that reason.  Most of it holds up pretty well, though I regret the jab implying that progressives supported suicide bombers.  Here is an example:

Beyond just the concept of individual decision-making, progressives are hugely uncomfortable with capitalism.  Ironically, though progressives want to posture as being "dynamic", the fact is that capitalism is in fact too dynamic for them.  Industries rise and fall, jobs are won and lost, recessions give way to booms.  Progressives want comfort and certainty.  They want to lock things down the way they are. They want to know that such and such job will be there tomorrow and next decade, and will always pay at least X amount.  That is why, in the end, progressives are all statists, because, to paraphrase Hayek, only a government with totalitarian powers can bring the order and certainty and control of individual decision-making that they crave.

Progressive elements in this country have always tried to freeze commerce, to lock this country's economy down in its then-current patterns.  Progressives in the late 19th century were terrified the American economy was shifting from agriculture to industry.  They wanted to stop this, to cement in place patterns where 80-90% of Americans worked on farms.  I, for one, am glad they failed, since for all of the soft glow we have in this country around our description of the family farmer, farming was and can still be a brutal, dawn to dusk endeavor that never really rewards the work people put into it.

This story of progressives trying to stop history has continued to repeat itself through the generations.  In the seventies and eighties, progressives tried to maintain the traditional dominance of heavy industry like steel and automotive, and to prevent the shift of these industries overseas in favor of more service-oriented industries.  Just like the passing of agriculture to industry a century ago inflamed progressives, so too does the current passing of heavy industry to services....

Take prescription drugs in the US - isn't it pretty clear that the progressive position is that they would be willing to pretty much gut incentives for any future drug innovations in trade for having a system in place that guaranteed everyone minimum access to what exists today?  Or take the welfare state in Continental Europe -- isn't it clear that a generation of workers/voters chose certainty over growth and improvement?  That workers 30 years ago voted themselves jobs for life, but at the cost of tremendous unemployment amongst the succeeding generations?

LineQuest, err Comic-Con Report

Having now been to my first Comic-con International conference in San Diego, I have come up with a new official T-shirt for the event.  It will say on the front, "What is this line for?"

That was the question on everyone's lips.  No matter where you went, either in the exhibit hall or in the meeting room area or outside, there were lines everywhere.  There were lines for giveaways.  There were lines to get in rooms.  There were lines for autographs.  There were even lines to get tickets to have a preferential place in a line later.   One line, for the largest theater that had the hottest programming, was over a mile and a quarter long, with people lined up overnight to get in.  There were so many lines it was often unclear what lines were for.  Five people could likely start a line randomly by simply standing in line at some random spot and people would start getting in behind them.

I have decided that the origin of the word Comic-Con is not actually from Comic-Convention but in fact is actually a corruption of COMECON.  It is an organization that has embraced the old Soviet economy with both arms.  It has bent over backwards to absolutely ensure that no allocation of scarce resources will be based on price -- thus the incredibly complicated process for even obtaining a ticket to the event in the first place.  So all goods are free (or in the case of a 4-day ticket, very inexpensive) and allocation of scarce resources is entirely by queue.

A one-day pass to see the exhibit hall and people-watch the Cosplay is well worth the price, both in money and more importantly in time.  My son and I had a great time.  But any attempt to enjoy any of the programming content will require at least 1 hour of line-standing for every 1 hour of program time.  And if the program has any recognizable person's name in it, or if the title includes the words "Star Wars, Star Trek, or Firefly", then you can count on at least 3 hours of waiting for every one hour of programming.

As an example, my son and I showed up 1-1/2 hours early for an afternoon program called something like "Star Wars vs. Firefly."   We were about 50th in a line that eventually ran to about 600 people.  We thought we were in good shape.  Foolish mortals.  It turns out people showed up at 7 and 8 in the morning for the first program of the day in that room, and then never left, solely to get to the 1:30 Star Wars/Firefly program.  None of us in line outside the door at 1:30 got in.

I am not going to argue resource allocation methodologies here -- this is a private event and they are welcome to do it any way they wish.  And since their target audience tends to be young and perhaps under-employed, then I can see how an allocation methodology based on investing one's time rather than money would be appealing to that audience.  Again, a day at the trade show and people watching the Cosplay is worth it.  As for the rest, if you are someone who will wait in line an hour to save 10 cents on gas, you will probably love it.  If you are someone who thought the FastPass system was the greatest thing ever implemented by Disney, they you should likely give the programming a miss.

A few other notes:

  • One of the shorter lines was for autographs from Stan Lee, which goes to show how far Comic-Con has evolved from its roots
  • Building on the previous observation, I saw only one or two booths on the entire (huge) exhibit floor actually selling vintage comic books
  • The Cosplay is everywhere but the best place to see it is just outside the hall where the photographers are taking pictures of folks coming in.  This is one area Comic-Con is really missing an opportunity.  If I were them I would create a red carpet ala the Oscars for Cosplayers to come in and everyone else to watch.   Put in some grandstands and big screens, maybe even with live commentary or voting
  • The masquerade is very miss-able.  A costume competition but it is run in a tedious manner and the Cosplay on the exhibit floor is better.
  • Fortunately I have a lot of nerds in my clan so I came away with good gifts.  My son got an autographed Summer Glau photo, my daughter an autographed Benedict Cumberbatch photo, and my niece an autograph of the most current Doctor Who (sorry, my first Doctor was Tom Baker and I can't keep track of the new ones).  My son also scored a Disney Princess calendar drawn in that, ahem, fantasy style made famous in publications like Heavy Metal.  It is sure to horrify my wife and daughter, which I assume was half the point.

Government "Investment" Of the Day

Over the course of Lance Armstrong's career, the US Postal Service paid him over $40 million in sponsorship money (at least according to the radio report I heard this morning).

I don't necessarily begrudge advertising -- the USPS was nominally acting as a business enterprise, and businesses advertise to promote their services.

But I do find this expenditure odd in the extreme for a couple of reasons.

  • First, sponsorship money of this sort generally can only build name recognition.  Paying to name a ballpark "Chase Field" builds name recognition for Chase, but by necessity does not communicate anything else about its services or value proposition.  The same is true for putting one's name on Lance Armstrong's jersey.  Does the US Post Officer really need name recognition?  Are there people wandering around unaware of the US mail?  I could understand advertising such as "this is why our express mail is better than Fedex" or "you should send a real paper thank you note and not just an email to really thank someone."  But name recognition for the USPS?  "Oh, so that is what that funny box in front of my house is...."
  • Second, to the extent one did indeed feel the need to build name recognition, why in the hell would one do it in a sport primarily competed and followed in Europe?  This seems an odd strategy for a service that is essentially limited by statute to US operations.

The only thing I can guess is that someone in the USPS decided, "Hey, everyone hates us.  Let's sponsor someone (preferably in a tangential sport that we could actually afford) who is beloved so some of those positive feelings might transfer to us."   That worked out well, huh?

Now I Get It

By the time I was really aware of the world, Liz Taylor was old and overweight.  I never really understand the obsession.  This helps.

A Short Rant on Over-Saturated Photography

I was at a couple of art shows during my vacation, and saw a lot of photography.  A staple of photography are the shots of Italian allies and colorful sea villages.  I have one on my wall that I shot myself, the classic view you have seen a million times of Vernazza, Italy.  My wife observed that these photos at the shows looked different than mine (she said "better").

The reason was quickly apparent, and I am seeing this more and more in the Photoshop world -- all the artists have pumped the color saturation way up.  I had to do this a bit, because the colors desaturate some when they get printed on canvas.  But these canvases friggin glowed.  I see the same thing in nature photography.  Is this an improvement?  I don't know, but I am a bit skeptical.  It reminds me a lot of how TV's are sold.  TV pictures tend to be skewed to over-bright and over-vivid colors because those look better under the fluorescent lights of the sales floor.  TV's also tend to have their colors tuned to the very cool (blue) color temperatures for the same reason.  None of this looks good in a darkened room watching a film-based movie.  Fortunately, modern TV's have better electronics menus and it is easy to reverse these problems, and my guess is there is less of this anyway now that many TV's are sold online based on reviews rather than comparison shopping in a store.

I am left to wonder though how this new super-vivid, over saturated photography would look in a home, and how it wears with years of viewing.  Am I being a dinosaur resisting a technological improvement or is there a real problem here?

Off to Comicon

As you could probably tell from the scarcity of posts, I have been on quasi-vacation for a few weeks.  Today I fly off to San Diego to go to Comicon with my son.  Sorry, don't expect any Coyote Cosplay pictures.

Coyote in the Press on Parks

Handshake Magazine, a publication of the International Finance Corporation (a branch of the World Bank), has a series of interviews on parks and PPP's.  It has an article by Len Gilroy of the Reason Foundation on Park PPP's on page 32, a case study about our company and its operations on page 36, and an interview with me starting on page 38.

Cat's Out of the Bag

This story has pretty much shifted from "I predict" to "I told you so" to "duh."  But everyone from Karl Rove to the Teamsters now recognize that Obamacare is on a path to destroying full-time employment in the retail service sector.  Via the WSJ, in an editorial by Rove:

These union heads charged that unless Mr. Obama enacts "an equitable fix," the Affordable Care Act "will shatter not only our hard-earned health benefits, but destroy the foundation of the 40-hour work week."...

Union leaders are correct that ObamaCare "creates an incentive to keep employees' work hours below 30 hours a week." After all, employers can avoid a $2,000-per-worker fine if they don't provide insurance as long as employees work fewer than 30 hours a week. Union leaders have realized—too late—that ObamaCare will affect the livelihood of millions of workers who wait tables, wash dishes, clean hotels, man registers, stock shelves and perform other tasks that can be limited to shifts of less than 30 hours a week. The White House take on this concern? Press Secretary Jay Carney said it "is belied by the facts."

But the data from the Bureau of Labor Statistics show that, in 2010, the year ObamaCare passed, full-time employment grew at an average monthly rate of 114,000 while part-time employment dropped an average of 6,000 a month. So far this year, as ObamaCare is being implemented, full-time employment has grown at an average monthly rate of 21,700 while part-time employment has increased an average of 93,000 a month.

Good Idea

Several companies announced a new sensor product to keep track of the number and severity of blows to the head during sporting events like football.  For a while now, I have been predicting such equipment (once invented) would become required in most sports, with at least younger kids' leagues setting maximum numbers above which a player might have to sit out for one or more games, sort of like mandatory pitch limits in little league.

In Praise of Social Media

Over the last several days I have been desperate for information on the Chariot Fire east of San Diego.  This brush fire destroyed the campground next to ours and came right up to our gates, so it was touch in go for several days to see if we would lose it.

I am often disdainful of social media but the best up to date source of information, bar none, for me was the Brush Fire Partyline started on a Facebook page.  It was a fabulous resource in a news situation when the local media was often 12 hours behind the story and official government announcements were at least 24 hours tardy.  (If you click through and their header image has not changed, you will see the red burned area stop just short of Laguna Campground, the campground we operate.

Look Mom, Swahili

My daughter is in Tanzania this summer for a secular service project.  Her first Swahili:  Jina langu ni Amelia, Ninatoka jimbo la Arizona which I hope means "my name is Amelia, I am from Arizona."

The End of Full-Time Work in the US Retail Service Sector

Frequent readers will know that I have been predicting for over a year that the economic story of 2013 would be the end of full time work in the retail service sector due to the PPACA, or Obamacare (example).   QED, from the most recent economic report:

In June, the household survey reported that part-time jobs soared by 360,000 to 28,059,000 – an all time record high. Full time jobs? Down 240,000.  And looking back at the entire year, so far in 2013, just 130K Full-Time Jobs have been added, offset by a whopping 557K Part-Time jobs.

It is unclear how the 1-year delay in the employer mandate implementation will affect this.  Probably not a lot -- based on the way Obamacare was being implemented, companies needed to be switching workers to part-time now (really, early this year) so that they would qualify as part-time for next year  (a company needed 6-12 months of records from this year to prove the employee was part-time).  In other words, most companies have already switched, and having done so, will not likely switch back just for one year.

Besides, as I have written before, it is actually cheaper and easier for many retail establishments to stitch together full coverage of their business hours from part-time workers.   Making jobs full-time is a hassle, and was done by most of us mainly for competition reasons, ie to be able to attract the best employees.  Other laws like California's absurd lunch-break mandate (which has caused me to make working through lunch a firing offense at our company) just add to the cost of offering full-time work.   If everyone is only offering part-time, and the labor market is weak with plenty of workers available, there is no reason to go back to offering full time employment.

Tailgating at the Opera

I grew up in Texas and I am not sure the concept of tailgating I was weaned on was flexible enough to encompass the opera.  But it's good to try new things.  Here are a couple of photos from my first trip to the Santa Fe Opera

IMG_0728s IMG_0729s

Didn't see any cornhole games though.

When Divine Omniscience is Not Enough

IMG_0727s

Corporate Welfare and the Thin Edge of the Wedge

The other day, the City of Glendale approved a deal which has the city subsidizing (more in a second) the buyers of the Phoenix Coyotes hockey team to get them to actually stay in town rather than move to Seattle.  The deal is arguably better than deals it was offered in the past (it gets shares of parking and naming rights it did not have before) and may even be a rational deal given where it is today.

But that is the catch -- the phrase "where it is today."  At some level it is insane for a city of 250,000 people to pony up even more subsidies for a team that has the lowest attendance in the league.  The problem is that the city built the stadium in the first place -- a $300 million dollar palace for a metropolitan area that already had a major arena downtown and which was built (no disrespect to Glendale) on the ass-end of the metropolitan area, a good 90 minute round trip drive for the affluent Scottsdale and east-side corporate patrons who typically keep a sports franchise afloat.

Building this stadium was a terrible decision, and I and many others said so at the time.  But once the decision was made, it drove all the future decisions.  Because the hockey team is the only viable tenant to pay the rent in that building, the city rationally will kick back subsidies to the team to keep it in place to protect its rent payments and sales taxes from businesses supported by the team and the arena.  The original decision to build that stadium has handcuffed Glendale's fiscal situation for decades to come.  One can only hope that cities considering major stadium projects will look to Glendale's and Miami's recent experiences and think twice about building taxpayer funded facilities for billionaires.

The deal the other night to keep the team went down in the only way it could have.  As I had written, the NHL was insisting on selling the team for its costs when it took it over in bankruptcy, which were about $200 million, which was well north of the $100 million the team was worth, creating a bid-ask gap.  Several years ago, the city tried to just hand $100 million to a buyer to make up the gap, but failed when challenged by the Goldwater Institute.  The only real avenue it had left was to pass the value over to the buyers in the form of an above-market-rate stadium management contract.

And that is what happened, and I guess I will say at least it was all moderately transparent.  The NHL came down to a price of $175 million, still $75 million or so above what the team is worth.   The City had already sought arms-length bids for the stadium management contract, and knew that a fair market price for that contract would be $6 million per year.  It ended up paying the buying group $15 million per year for the 15-year contract, representing a subsidy of $9 million a year for 15 years.  By the way, the present value of $9 million over 15 years at 8% is... $75 million, exactly what was needed to make up the bid-ask gap.  Again, I think the city almost had to do it, because the revenue stream it was protecting is likely higher than $9 million.  But this is the kind of bad choices they saddled themselves with by building the stadium in the first place.

Spam of the Week

I get a lot of bizarre stuff but this one made me laugh:

The Turkish renewables market is set to grow rapidly and the Turkish International Renewable Energy Congress (TIREC) is your access point. Once again 500+ attendees, serious about playing their part in the growth of the market will attend to do business for two days of discussioncontact making, and lead generation.

Obamacare Mandates Delayed -- And That Other Shoe

Well, it certainly comes as happy news to this correspondent that the Administration announced this week it will delay health insurance mandates on businesses.  Our company has spent a ton of time since last November trying to minimize the expected cost of the mandates -- the initial cost estimates of which for our business came in at three times our annual net income.  Our preparation has been hampered by the fact that the IRS still has not finalized rules for how these mandates will be applied to a seasonal work force.  Like many retail service businesses, we have studied a number of models for converting most of our work force to part time, thus making the mandates irrelevant for us.

I know this last statement has earned me a fair share of crap in the comments section as a heartless capitalist swine, but the vitriol is just absurd.   Many of the folks criticizing me can't or don't want to imagine themselves running a business, so let's say you have an annual salary of $40,000.  Now, on top of all your other expenses, the government just mandated that you have to pay an extra $120,000 a year for something.  That is the situation my business is in.  Are you just going to sit there and allow your savings to become a smoking hole in the ground, or are you going to do something to avoid it?  Unlike the government, I cannot run a permanent deficit and I cannot create new revenues by fiat.  Congress allowed business owners a legal way to avoid the health insurance mandate, and I am going to grab that option rather than be bankrupted.  So are every other service business I know of, which is why I have predicted that full-time jobs are on the verge of disappearing in the retail service sector.

Anyway, it appears that the IRS and the Administration could not get their act together fast enough to make this happen.  Not a surprise, I suppose.  You and I have both been in committee meetings, and have seen groups devolve into arguments aver useless minutia.  This is not a monopoly of the government, it happens in the private sector as well.  But in the private sector, in good companies, a leader steps in and says "I have heard enough, it is going to be done X way, now go do it."  In government, the incentives work against leaders cutting through the Gordian knot in this way, so the muddle can carry on forever.

There are at least two more shoes that are going to drop, one bad, one good:

  1. On the bad side, while companies like mine complain about the cost of the PPACA, they are going to freak when they see the paperwork.  My sense is that we are going to be required to know in great detail what kind of health insurance policy every one of our employees have, even if it was not obtained through our company, and will have to report that regularly to the government.  In addition, there are gong to be new reporting requirements to new agencies for wages and hours.  It is going to be a big mess, and my uneducated guess is that someone in the last week or so looked at that mess and decided to hold off announcing it.

    But readers can expect a Coyote freak out whenever it is announced, because it is going to be bad.  Wal-mart will be fine, it has the money to build systems to do that stuff, but companies like mine with 500 employees but only 2 staff people are going to get slammed.  There is a reason government agencies, even government schools, have more staff than line personnel -- they live and breath and think in terms of complex reporting and paperwork.  They love it because for many it is their job security.  Swimming every day in that water, it is no surprise they impose it without thought on the private sector.  This makes it hard for companies like ours that try to have 99% of our employees actually serving customers rather than pushing paper.

  2. The individual mandate is toast for next year.  No way it happens.  If the Administration cannot get the corporate piece done on time, there is no way in hell it is going to get the exchanges up and running.  And even if they do, some prominent states with political influence with this President, like Illinois and California, likely will not get their exchanges done in time and will beg for a delay.

New Emergency Broadcast Texts

Don't know if you have seen these, but many cellular networks activated the capability to broadcast government "emergency" messages in the last week.  Mine has gone off twice in 3 days.  I get a tone like the old emergency broadcast network test on the radio and then a text like this one.  Not sure why dust storms that are routine features of summer here in Phoenix warrant having the NWS spam my phone, but there it is.  Tornado and tsunami warnings certainly make sense.  Wonder when the first conspiracy theory / scandal hits, such as the election day alert that warns people to avoid travel.

photo (2)

 

PS, gotta love "til" rather than "until".   Can't wait for the "Tornado Warning - FML" message.

Local Celebrity

I just read about a project dedicated to local celebrities, people who are very famous in their own backyard but not known at all beyond a small region.

The one person in this category I could think of (beyond local TV and radio personalities) is Johnny Barnes in Bermuda.   I encountered him around the year 2000 when I went to Bermuda for a job interview -- I was running Internet companies at the time and a group in Bermuda had an idea to combine an Internet B2B model with offshore banking and tax havens.  Transfer pricing games seemed to be prominent in the model.

Anyway, there he was, at a busy traffic circle almost everyone on the island passed when going to work in the morning.  He just stood there saying hello and good morning to everyone.  I found out later he was a Bermuda icon -- if he missed a day the radio stations and government offices would be flooded with calls from people asking if he was OK.  Searching the Internet, I found that someone has made a film about him.

 

The Crony Christmas Tree

One item that was part of the (thankfully) deceased farm bill that got little attention was a levy on live Christmas trees.

Apparently, live Christmas tree producers are upset at competition from artificial trees.  And there is nothing to which Congress is more sympathetic than using government coercion to help industry incumbents fight off new competition.

Readers may or may not know that the government often steps into certain agricultural commodities and, at the behest of the largest producers, creates mandatory advertising regimes.  In these regimes, a tax is levied on everyone's product and the money is used to fund advertising campaigns (e.g like the ones for milk and beef).

The most recent farm bill was to create a similar regime for live Christmas trees, requiring all tree producers to pay the per-tree tax whether they wanted or needed the advertising campaign or not.  So, for now, we have escaped holiday government-funded ads like "Pining for Christmas" and "Live Trees:  They are What's Fir Christmas."

The egg industry was silent on whether they would consider a similar step to battle plastic Easter eggs.