"They Swarm and Overwhelm."

Hackers recently gained access to computer systems used to design a new U.S. jet fighter. When I heard the news I remembered him. He told me about swarm and overwhelm tactics. Is that what the hackers are attempting to do?

He is an American. I sat next to him on a plane some time ago. He wanted to talk and I was content to listen. For more than 20 years he has worked for the same employer, a company based in Asia. He travels a great deal around the U.S. and the world. He talked about how his employer operates. The account was a bit chilling.

They swarm," he said. "The competition is simply overwhelmed. They push the envelope on everything relentlessly.

When fighting legal contests they bring in an army of lawyers, including specialists in every branch of the law that might conceivably apply to the case. They work 14 hours a day seven days a week to win.

"Even when they play golf," he said, "they shave strokes and look down on anyone who doesn't.

His employer has been rapidly buying U.S. businesses during the recession using these tactics. If a buyer doesn't want to sell, they find a way to force the sale.

In his travels he has learned a lot about the global competition U.S. companies face. He noted, for example, how Chinese companies systematically analyze products of U.S. manufacturers. Workers examine products piece by piece, then figure out how to improve and manufacture them at less cost.

Here in the U.S. he once watched two representatives of a Chinese factory, who had just purchased an expensive ($3,000+) bicycle, take it to their hotel room, disassemble it piece by piece and photograph each component. When finished they threw all the parts into a dumpster.

So, when the news reported how hackers had successfully invaded some U.S. defense systems, I wondered if there might be a connection between the hackers' actions and what my fellow traveller described.

I recently saw a television travel program in which the host knelt down on a dock along the Amazon River, a part of the river in which piranhas are particularly aggressive. He suspended a dead duck above the water and then lowered the carcass into the river and held it there for about 30 seconds. He brought it back to the surface for examination. I was amazed at how much flesh had been eaten in such a short period of time. The piranhas had swarmed and overwhelmed.

Is this what we're facing?

Socialism on the Horizon?

Critics of President Obama say that the president is taking the U.S. down a path toward socialism. Is that what Americans want?

It sounds like the kind of argument one might expect from disgruntled Republicans. How can it be true when President Obama has enjoyed the support of many capitalists including the likes of Warren Buffett and former Federal Reserve Chair Paul Volcker?

But note these findings from a recent Rasmussen poll found recently in The Week magazine:

• 53% of Americans believe capitalism is better than socialism


• 20% say socialism is better


• 27% are not sure (!)

That's only a slim majority who favor capitalism. 47% have serious doubts that capitalism is better than socialism.

Note that our post dated October 22, 2008, contained this item:

"Adam Lerrick, professor of economics at Carnegie Mellon University, recently published an article in the Wall Street Journal...His assertions are based on startling data. Should we be concerned? Yes we should. According to professor Lerrick, 40% of eligible voters—89 million people—paid no income taxes in 2006."

The post went on to say that under President Obama's then spending proposals, the 40% would climb to nearly 50%.

Should we be surprised that 47% of the country's voters have doubts about capitalism? When a large percentage of voters pay no income tax, and yet benefit in some way from government spending as we all do, then perhaps it's no wonder.

Sound the alarm. Many people have doubts about the capitalistic system which, with all its shortcomings, made our country an economic powerhouse.

Now what?

Peace With Honor

That was the headline in The Plain Dealer in 1973 when the Vietnam war ended. I came across the old paper recently while cleaning out files. It was a reminder that sometimes it pays to step back in time.

What was more striking was a box below the fold. It said "Remember 45,933 Americans died in the war." Contrast that today with the running total of Americans who have died in the Iraq war, about 4,500. What a contrast.

Yet both wars seem to have had a similar impact on American attitudes despite the huge difference in severity of U.S. deaths.

Writing in The New York Times in 1973, columnist James Reston summed up the national mood this way:

"The guess here is that it will take some time to restore the self-confidence of the pre-Vietnam years in the United States, but it may be that the destruction of many popular misconceptions in Vietnam will produce a more mature, if sadder, nation."

How does our nation feel today? Are we now more mature, if sadder?

China and Nissan to Pilot "New Energy" Cars

Where would you plan a pilot project for electric cars? A large city? Small city? The People's Republic of China has chosen the city of Wuhan--population 9 million!

Actually, Wuhan is one of 13 cities, including China's largest cities, where pilots will be undertaken. Some 60,000 electric battery, plug-in hybrids and hydrogen fuel cell cars will be tested. China hopes to produce 500,000 such "new energy" cars by 2011.

Wuhan is the capital of Hubei Province. It is a major transportation hub that sits along both the Yangtze and Han Rivers. Wuhan has over 9 million residents, which makes it similar in size to Chicago in terms of population. That's if you count the greater Chiacgo metropolitan area which stretches into Indiana and Wisconsin.

It appears that Nissan and China's Ministry of Industry and Information Technology will jointly conduct the test of electric vehicles and a network of charging stations. Nissan is making a major effort to develop electric vehicles. It has already begun a pilot in Japan south of Tokyo. Some 1,000 charge stations are planned there within the next five years.

Wuhan skyline.

Quick Vue: This video will show you images of Wuhan.

Sources for this post include The Wall Street Journal and Wikipedia.

Remember "Is God Dead?"

That was the question posed by Time magazine on its cover many years ago. Since then we've seen the emergence of the mega church. And we can expect to see much more.

At least that's what John Micklethwait and Adrian Wooldridge think. They are the editor in chief and Washington bureau chief, respectively, of The Economist magazine. They've written a new book entitled "God is Back: How the Global Revival of Faith is Changing the World." In a recent Wall Street Journal article they made the following striking points excerpted and condensed below:

• Religion is a competitive business where organization and entrepreneurship count.
• Bill Hybels, of Willow Creek Community Church in South Barrington, IL and Rick Warren, of Saddleback Church in Lake Forest, CA, are "pastorpreneurs." Each church has multiple campuses and thousands of members.
• Church growth outside the U.S. is huge. The Yoido Full Gospel Church in South Korea is an excellent example. It has 800,000 members.
• In China there are an estimated 100 million Christians.
• China will soon be the the world's largest Christian country--and possibly its biggest Muslin country too!

Quick Vue. This video is excerpted from a sermon given in 2007 by Bill Hybels of Willow Creek Community Church. The video's description states: "Scriptural truths, the message of salvation, Christ, and a little insight into Bill himself are unmistakably clear in this weekend message synopsis."

Right Speech, Just the Wrong Setting

Our last post stated incorrectly that Ronald Reagan's "A Time for Choosing" speech was given at the 1964 Republican national convention. Here are some key excerpts from the speech plus information about the correct setting. Bottom line: It is a speech as timely today as it was then.

Here are some key excerpts from the speech:

"You and I are told we must choose between a left or right, but I suggest there is no such thing as a left or right. There is only an up or down. Up to man's age-old dream-the maximum of individual freedom consistent with order, or down to the ant heap of totalitarianism.

Regardless of their sincerity, their humanitarian motives, those who would sacrifice freedom for security have embarked on this downward path. Plutarch warned, 'The real destroyer of the liberties of the people is he who spreads among them bounties, donations and benefits.'

The Founding Fathers knew a government can't control the economy without controlling people. And they knew when a government sets out to do that, it must use force and coercion to achieve its purpose. So we have come to a time for choosing.

Public servants say, always with the best of intentions, 'What greater service we could render if only we had a little more money and a little more power.' But the truth is that outside of its legitimate function, government does nothing as well or as economically as the private sector.

Yet any time you and I question the schemes of the do-gooders, we're denounced as being opposed to their humanitarian goals. It seems impossible to legitimately debate their solutions with the assumption that all of us share the desire to help the less fortunate. They tell us we're always 'against,' never 'for' anything."

Source: http://www.presidentreagan.info/speeches/the_speech.cfm

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Correct information about the speech--from the blog "IllinoisReview":
http://illinoisreview.typepad.com/illinoisreview/2009/03/ronald-reagan-speech-1964-republican-national-convention.html

"Dr. Eric Wallace:

One historical correction on your clip of Ronald Reagan in 1964. That speech was not made at the Republican Convention at the Cow Palace in Daly City near San Francisco in July. I was there. I did hear Reagan introduce Barry Goldwater's two sons at the Masonic Auditorium but he did not have a big speaking role at the convention itself.

The clip you posted is called "A Time for Choosing" and it was taped in October in a TV studio in Los Angeles for an invited audience. It was made into a 30-minute talk (what we now call an informercial) to help raise money for the national Goldwater-Miller TV Committee and the proceeds were split with the California Goldwater-Miller TV Committee. So much money came in so fast as a result of this speech that just the California committee had about $400,000 left over they could not spend by Election Day.

It is a great speech, but it was just not given at the convention.

Posted by: Mark Rhoads Sunday, March 15, 2009 at 11:52 AM"

6 Minutes, Please.

If you are a Democrat, Republican or Independent, it doesn't matter. Please watch the first six minutes of this video. It is timely despite the fact that it is from an event that took place 45 years ago.

This is a video of Ronald Reagan addressing the 1964 Republican national convention. He was not the nominee. Pretend, for just the next six minutes, that you only know him as the actor and spokesperson for General Electric that he was at the time. That was how members of this audience knew him. Listen and think about what is being said.

Two years prior to this event Mr. Reagan switched from being a Democrat to a Republican. His address came to be known as the "Time for Choosing Speech" and marked the beginning of his political career.

At the time President Johnson was launching the Great Society initiative, marked by sharply increased social spending and the creation of Medicare.

The video is also a time capsule. You'll observe that in the way the audience is dressed and in Mr. Reagan's use of the terms "man" and "mankind" that suggest gender insensitivity if not discrimination. Regardless, the underlying message resounds.

Sources for this post include Wikipedia.

The Coming Nano Revolution

Nanotechnology will change our world radically. The economy will change radically too because objects will be manufactured atom by atom. Think what you can do by rearranging the atoms in coal, for example. You can manufacture diamonds!

The Christian Science Monitor reports that nanotechnology "may have found its Henry Ford" in Nadrian Seeman, chemistry professor at New York University. Professor Seeman, and a research team at Nanjing University, have created two-armed worker robots out of synthetic DNA molecules. Until now it has been possible to make DNA robots with only one arm. Why is this significant? Suddenly, mass nano-manufacturing appears possible.

Each robotic arm has a molecule on the end that can align other molecules as part of a manufacturing process. Professor Seeman and team are now working on developing the capacity to create programmable patterns. That's the next step toward developing a manufacturing process. Right now they can only form various shapes from molecules. Practical applications are limited. But don't expect new discoveries to be that far off. When nanotechnology hits full stride, we'll see the equivalent of another industrial revolution. It's that big.

To get a better idea of what nanotechnology is, here are two Quick Vue videos. Advance the cursor on the first video to 4:50 minutes.

A.I.G. Resignation Letter Worth Reading

A.I.G. executive Jake DeSantis has captured headlines with his resignation letter published in The New York Times. It's worth reading in order to gain a different perspective on the AIG bonus issue.

Some key points Mr. DeSantis makes include:

• He and many others in the Financial Products group were not involved in the credit default swaps that caused A.I.G. so much trouble.
• He lost a "significant portion" of his life savings which had been in the form of deferred compensation invested in A.I.G.
• He was asked to stay on and help fix the problems for an annual salary of $1 with the promise of a large retention bonus.
• He intends to donate his after tax-bonus to charity after it's known what happens with Congress' proposed legislation to tax the bonus at 90%.

This link will take you to the letter at The New York Times website.

http://www.nytimes.com/2009/03/25/opinion/25desantis.html?_r=1&ref=opinion&pagewanted=print

Quick Vue: Here is a Bloomberg news item on Mr. DeSantis' resignation letter.

"Quiet" Trends, Big Impact

While the recession continues to hold our attention, two important trends continue to evolve and intersect rather quietly. Yet they will change our lives profoundly.

This is what the newspaper of tomorrow looks like. This is the new website of the Ann Arbor News in Michigan. Starting in July, the paper will cease to exist as a newspaper and will publish via this community-oriented website. The Ann Arbor News, owned by Advance Publications, Inc., will become a Web company called AnnArbor.com LLC. However, a print edition of the .com will be printed twice weekly.

The pace of change in the newspaper industry, the subject of prior World Vue Letter posts, is quickening. To wit:

• The Detroit Free Press (Gannett Co.) and the Detroit News (MediaNewsGroup) will soon cease print editions most days of the week.
• The Seattle Post-Intelligencer recently went to a web site only format.
• Last month, Denver's Rocky Mountain News (E.E. Scripps) closed down.
• The Flint Journal, Saginaw News and Bay City Times, all in Michigan, will print only three days a week and provide other coverage online.
• Papers in other parts of the country are cutting pay, reducing staff, freezing pensions, and adopting other cost cutting measures. The Charlotte Observer, for example, will terminate 60 full-time and 22 part-time workers, 15% of its work force.

Meanwhile, sales of smart phones like the iPhone and the Blackberry may have reached the tipping point. Consumers are beginning to lose interest in having multiple hand help electronic devices. They are opting instead for the convenience of a single device that enables them to search the web, handle emails, download music, get navigation help, take pictures, text, and speak by telephone. Smart phone shipments are expected to grow 30% this year while sales of single purpose units are starting to slow.

These two trends, taking place rather quietly behind the headlines, will transform our society in many ways. With newspapers in decline what will happen to the free press function so important to our nation's governance? Will the public become a better informed electorate by using smart phones to tap infinite sources of information at any time including blogs? Or will we become an electorate awash in data but lacking in perspective and analyses?

No one can say right now. But one thing is certain. We can expect to see many more changes in how information gets distributed and how political candidates make their case to the public.

Quick Vue: Here's a rapid look at how the Apple iPhone compares with the Blackberry Storm.

Sources of this post included The Plain Dealer and The Wall Street Journal.

Immigrants Needed!

The stimulus bill recently passed by Congress places restrictions on the H1-B visa program. It usually permits U.S. employers to hire up to 65,000 specialized workers a year from other countries for 3-6 years. Most workers are from India, many with IT expertise. Is this the start of protectionism? Some fear that may be the case. Yet, we stand to gain a great deal through programs such as H1-B and other special visas, particularly as regards immigrants who are entrepreneurs with capital to start a new business. Are we missing opportunities?

Consider these arguments made recently in The Wall Street Journal by Richard S. LeFrak and A. Gary Shilling. Mr. LeFrak is CEO of LeFrak Organization, a real estate developer. Mr. Shilling is an investment advisor and president of A. Gary Shilling & Co.

• There are 2.4 million houses for sale left over from the recent housing boom.
• Excess inventory means lower prices for existing homes.
• Why not offer permanent residency to foreigners who commit to purchase one of these homes?
• The government should expand the EB-5 visa program to promote this type of immigration. EB-5 visas are for foreigners who have $1 million to invest in a new enterprise (less in depressed areas) that will create at least 10 full-time jobs.

"Granting permanent residence status to foreigners who buy houses in this country will curtail a primary driver of the deepening recession and financial crises," the two gentlemen wrote in an op-ed piece. "Since the people who will buy these houses will tend to have money, education, skills and entrepreneurial talents, they will be substantial assets to America in both the short and long runs."

It's a compelling argument.

Quick Vue: Here is a brief report from India's NDTV (New Delhi) about changes to the H1-B Visa program for workers with specialized knowledge and certain academic credentials.

Media Morphing

The media is continuing to morph into a new model. It hasn't yet materialized from the fog of declining profits, political biases and changing consumer preferences. But recently there were two new indicators of change worth noting.

Yesterday, the Seattle Post-Intelligencer, owned by Hearst Corporation, announced that it will no longer publish in print. It will continue to publish on-line only. Many reporters and other staffers will lose their jobs as operations are scaled back. It's the first major newspaper to go the on-line route solely.

Then, last week, Jon Stewart of Comedy Central's The Daily Show interviewed Jim Cramer of CNBC's Mad Money show. The two had captured attention through a running feud, with Jim Cramer taking criticism for failing to warn viewers about the demise of Bear Stearns and the stock market drop. Mr. Stewart demonstrated how to conduct an interview with sharp intellectual focus, knowledge of his subject, effective preparation and humor. It's a potent blend. Hopefully we'll see more such interviews by more correspondents. Jim Cramer was a gracious guest who acknowledged making mistakes.

You can watch the interview by clicking on the link below. Once at The Daily Show site, click on the interview for March 12.
http://http//www.thedailyshow.com/full-episodes/index.jhtml?episodeId=220533

Sources for the post included The Wall Street Journal.

Is this Change Permanent?

Headlines proclaim that Americans lost up to 18% of their wealth in 2008. That comes to an astounding $11 trillion. (See post dated January 13, 2009 for how to picture a trillion dollars.) The Federal Reserve equates this decline to the combined annual output of Germany, Japan and the U.K. No wonder Americans are living more frugally. Economic constraint is "in." But for how long?

No one can say for sure. But consider these data points from The Wall Street Journal:

• "The decline in Americans' net worth, which was the first in six years, followed an extraordinary boom. Not accounting for inflation, household wealth more than doubled from 1990 to 2000, and then, after a pause, rose nearly 50% before the bust of 2008."


• "Past downturns have been mere blips compared with the losses Americans faced last year, which set them back to below 2004 levels. "

Wait a minute. 2004? In one sense, that doesn't sound so bad. At least it's not, say, 1984, or even 1994. (Admittedly, this viewpoint is a little bit like looking down on storm clouds from 40,000 feet. The white froth below looks fairly benign. But to those on the ground life is very unpleasant.)

We may be better off than we now perceive. Perhaps frugality will eventually go by the wayside.

On the other hand, optimism about the economy is in short supply. A recent Gallup poll shows that 82% of Americans are concerned about the amount of money being added to the federal deficit. Further, 78% are worried about inflation growing.

Housing statistics also suggest that there is a cloud of uncertainty. A recent article on Fast Company.com states that the Metropolitan Institute at Virginia Tech "predicts that by 2025 there will be as many as 22 million unwanted large-lot homes in suburban areas." Life in the "burbs" may never be the same as more people discover the economic and lifestyle benefits of living in more urban areas.

Only time will tell whether the changes in economic attitudes are temporary or part of some type of tectonic shift. Stay tuned!

Quick Vue: Here is an Associated Press report on the new savings habits of American consumers.

Sources for theis post included The Wall Street Journal, FastCompany.com and Associated Press.

Lead by Example

The Marines have concluded an investigation into the crash last December of an F/A-18 Hornet in a San Diego neighborhood. It hit two homes and killed four people on the ground. Out of this tragedy comes a hopeful example of responsibility and accountability.

Four senior officers were removed from duty as a result of the crash investigation which concluded that the tragic mishap was avoidable. Other Marines have been disciplined as well. A series of wrong decisions had been made.

"This wasn't damage control," wrote columnist Peggy Noonan in The Wall Street Journal, "it was taking honest responsibility. And as such, in any modern American institution, it was stunning."

Stunning indeed. It says a great deal about the strength and quality of our democracy.

Ms. Noonan interviewed a Marine aviator who remarked on how the decision contrasts with buck-passing elsewhere in government and on Wall Street.

Per Ms. Noonan: "By contrast, he says, when the economy came crashing down, 'nowehere did we see a board come out and say: "This is what happened, these are the decisions these particular people made, and this was the result. They are no longer part of our organization."

No one in government said, "These are the people who allowed Freddie and Fannie unlimited rein over mortgage securities."

But the Marines are leading by example. And that is a sign of hope. May that others follow their lead.

Quick Vue: Here is an Associated Press report on the Marines' investigation.

It's Almost Spring!

Winter has a few weeks left to go but it sure feels like Spring! The sun has been shining and the days are getting warmer. Nature presented one of its more dramatic vistas today along the North Coast. Here is a photo of Lake Erie frozen in time--a truly spectacular sight!

Are More Taxes in Your Future? To Find Out Look at Yesterday's Tax Rates.

It may sound like a dull thing to do, but stop and take a look at what has happened to federal tax rates over many years. You might just say "Aha!"

Some economists argue that President Roosevelt lengthened the Great Depression by raising federal tax rates. Could that be? I'm no economist but I have gone to the Tax Foundation's website where I was able to scan through federal tax rates going back to 1913 when the 16th Amendment to the Constitution made the federal income tax permanent. I was surprised by what I found.

For the sake of consistency, I looked at federal tax rates for the highest levels of income listed in the charts and for an income of $60,000. I limited my search to rates for taxpayers who are married and filing jointly.

One of the things that jumped out is how widely incomes in the highest tax bracket have varied over the years. For example, in 1936, during the Great Depression, the income level for the highest tax bracket was $5 million. Nine years earlier, in 1925, during a period of prosperity, it was $100,000. 1982 saw one of the lowest numbers for the high bracket, $85,600.

What was most interesting were the dramatic increases in tax rates at very critical moments. In 1916, a year before the U.S. entered World War I, the highest tax rate was 15% on incomes of $2 million or more. For an income of $60,000 the rate was 4%. But in 1917 tax rates jumped dramatically as the U.S. had a major war to finance. The highest rate leaped to 67%. For those with an income of $60,000, the tax rate quadrupled to 16%.

In the mid-1920s rates at the upper end of the range moved back down precipitously accompanied by dramatic changes in the income brackets. The highest rate in 1925 was 25% on incomes of $100,000 or more. For $60,000 the rate was 20%. These rates stayed in place through 1931.

Could it be that the prosperity of the roaring 20s was due at least in part to a dramatic lowering of tax rates? I'm sure economists will point to several causes. But I submit that tax rates play a major role in determining how people feel about the economy and the economic choices they make. If true, does the economy contract when rates are expected to go up?

That's where the economists come in who claim that the Great Depression lasted longer than necessary because government increased taxes. In 1932, under President Herbert Hoover, rates jumped to a whopping 63% from 25% for incomes of $1 million or more. The $60,000 rate went from 20% to 35%.

Then rates really took off. Starting in 1936, President Franklin Roosevelt increased rates until in 1944 the top rate was an astounding 94%--on income of $200,000 or more. The $60,000 rate was also in the stratosphere at 78%.

Fast forward to 1964. That's when President John Kennedy lowered rates to 77% (from 91%) at the highest bracket (income of $400,000 or more) and 56% (from 62%) for the $60,000 level. By 1965 these rates were 70% and 53% respectively. President Reagan lowered them dramatically in 1982 to 50% and 44%. Rates dropped even lower as the economy took off.

President George H. W. Bush raised rates in 1993 to 39.6% at the high end. President George W. Bush lowered them in 2003 to 35% for the highest bracket and 25% for $60,000. Today the rates are 35% and 15%.

What might we conclude from all this? It suggests that:

• There is credence to the argument that lowering tax rates helps bring about economic prosperity.
• We can expect the federal government to raise rates dramatically now that it has begun to spend money at a vastly accelerated pace. It happened during World War I, the Great Depression and World War II.

We'll have to wait and see to be certain. Perhaps we will soon find ourselves saying "Aha!"

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Key federal tax rate increases - $60,000 Income Bracket:

• 1917 - World War I - 4% to 16%
• 1932 - Start of Great Depression - 20% to 35%
• 1936/44 - Great Depression & World War II - 37% to 78%

A Major City Without a Newspaper? It Might Happen.

Another major newspaper is in financial trouble. As pointed out in the World Vue Letter post dated February 12, 2009, newspaper profits are dropping rapidly and major changes are taking place in the mass media industry. Now comes word that the San Francisco Chronicle may possibly close its doors. That which was once unthinkable might happen. What's going on?

The San Francisco Chronicle was purchased by the Hearst Corp. in 2000 for $600 million. Hearst owns Cosmopolitan, Esquire, Good Housekeeping and has an investment in ESPN. Since then the Chronicle has been a financial drain. According to The Wall Street Journal, Hearst will seek significant cost-savings within weeks or possibly sell the newspaper. If it decides to sell and cannot find a buyer quickly, the Chronicle will shut down. That means San Francisco will be the first major city without a major daily paper.

Note also these trends cited in the World Vue Letter's February 12 post :

• The Tribune Company, owner of the Chicago Tribune, Los Angeles Times, and Los Angeles television station KTLA, recently filed for bankruptcy. It also owns the Baltimore Sun, South Florida Sun-Sentinel and the Sentinel of Hartford.
• The Christian Science Monitor has ceased publishing in print, relying solely on electronic publishing.
• The average number of viewers watching network TV is dropping. TV station revenues dropped 8% or more in 2008.
• Media payrolls are declining with only the biggest names earning more pay.

Since December, three other newspaper organizations have filed for bankruptcy:

• Philadelphia Inquirer and Philadelphia Daily News (both owned by Philadelphia Newspapers, LLC);
• Star Tribune - Minneapolis; and
• Journal Register Co. - owns 20 daily newspapers in Connecticut, Michigan, New York, Ohio and Pennsylvania.

Why all the troubles?

The problem is declining display ad revenues as the economy has slowed, plus the loss of classified ad revenues to Internet-based services such as Craigslist. Classifieds traditionally have been highly profitable. Some pundits also point to the fact that newspapers unwisely gave away access to their product, the newspaper content, for free on the Internet. Many people now turn to the Internet as their primary news source. Newspapers have tried to keep their readers by posting content for free in order to compete. But it's an economic model that is not sustainable.

Now there is a growing sense that newspaper editors and publishers have to start asking themselves some new questions. It's not just a case of asking how to charge readers for Internet access. It's more a matter of determining what content can a newspaper create that readers will want to buy. It's a very different perspective, one that reminds us how markets drive innovation and how it is the consumer who defines value.

Perhaps we can expect to see some very different types of headlines and reporting in the near future.

Quick Vue: Here's a more in-depth look at the newspaper industry including interviews with representatives of the San Francisco Chronicle.

Sources for this post included MSNBC.

Time to Immigrate!

Can immigrants helps us re-energize our economy? The fact is, immigration may be key to attracting the talent needed to engineer a new economic growth wave. Consider what's happening in central Ohio.

Per a report from the Columbus Dispatch, about 40,000 foreign-born residents of Franklin County, in central Ohio which includes Columbus, arrived in the U.S. during the past eight years. Compared to the general population, members of this group tend to have:

• Higher-education degrees;


• Higher average income; and


• Lower unemployment.

Who is in this group? It ranges from refugees to highly-educated persons here on special visas.

• About 39% are from Asia;
• 23% are from Latin America; and
• 21% come from Africa. This includes a large number of Somalis who fled a civil war that erupted there in 1991.

Lee Williams, director of the International Institute of Akron, Inc., which helps immigrants settle in Northeast Ohio, has said that the immigrants tend to have a "wonderful work ethic, they love overtime, and they are very loyal."

That's a winning combination, one our country has seen before when large numbers of immigrants came to the U.S. to build better lives.

Quick Vue: The two videos below celebrate the first person to immigrate to the US. through Ellis Island. Annie Moore, a 15 year-old from Ireland, was that person. The first video is a trailer for a film about Annie Moore made by 11 year-old students in Cork, Ireland. The second video features the Irish Tenors singing Isle of Hope, Isle of Tears, which also tells Annie's story.

Sources for this post include The Plain Dealer and Columbus Dispatch.

Open for Business?

From The Plain Dealer, Cleveland, Ohio: "In its heyday, Cleveland attracted immigrants like a magnet. If it wants another heyday, Cleveland needs to do so again."

From Shekhar Gupta, editor of the Indian Express newspaper (Mumbai and New Delhi): "All you need to do is grant visas to 2 million Indians, Chinese and Koreans." "We will buy up all the subprime homes. We will work 18 hours a day to pay for them. We will immediately improve your savings rate--no Indian bank today has more than 2 percent nonperforming loans, because not paying your mortgage is considered shameful here. And we will start new companies to create our own jobs and jobs for more Americans."

The above quote is from an article by New York Times columnist Thomas L Friedman. Mr. Friedman wisely makes the case that immigration can prove to be the best bailout.

There is a saying in business: You've got to build the brand. It means expand on the things that made your business successful. Expand on your good name and reputation.

Even non-profits are now doing this creatively. Examples:

• New York's Metropolitan Opera broadcasts live performances to movie theaters around the country.
• The Cleveland Clinic recently entered an agreement with philanthropist Larry Ruvo to run a new brain research institute in Las Vegas.

The U.S. has a "brand." It is a political and economic system that encourages innovation and free enterprise like nowhere else. Talk all you want about how other parts of the world have been growing, but the U.S. is still the premier venue for building wealth. And all eyes are on the U.S. for answers to the current economic malaise.

It's time, again, to build on the U.S. brand and sharply increase the number of visas we're willing to issue. It's time to announce that the U.S. is "Open for Business".

Are we ready?

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Worth repeating from the post dated January 29, 2009:

"Small businesses created some 60-80% of net new jobs during the past decade. Companies with 500 or fewer people employ over half the country's private sector employees."

Special Review: Less Than a Trillion Dollars

Now that the stimulus bill is a reality, here's another look at a post originally dated January 13, 2009 . It helps put a trillion dollars into perspective, though the stimulus is "only" about $800 billion. Worth noting are the following concepts that can help you visualize the large sums of money at stake:

• The stimulus is approximately equivalent to what the federal government spent, in 2008 dollars, to build the interstate highway system. (Econmists like to compare federal expenditures in terms of both inflation-adjusted dollars and as a share of GDP. That said, were construction of the highway system to begin today the cost, per my back-of-the-envelope guess, would likely be $2.4 trillion or more.)

• If you were to stack a trillion dollars worth of $1,000 bills on top of one another, the stack would be 63 miles high.

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Is a Trillion Enough?

Is an economic stimulus of about a trillion dollars enough? No, says Paul Krugman, last year's winner of the Nobel Prize in Economics. Here's how to think about a trillion dollars. For starters, it looks like this expressed as a dollar number.

$1,000,000,000,000

It's a big number. Too big to comprehend, really. So here is how you can put it in context. Below is a list of six major, and notable, U.S. expenditures from the past. The cost for each is expressed in 2008 dollars.

• World War II - 16 million troops; 4 years - $4 trillion


• Interstate Highway System - 35 years of construction - $800 billion


• New Deal - public expenditures during the Great Depression - $500 billion


• Space Program - Projects Mercury through Apollo (Moon landings) - $140 billion


• Panama Canal - construction cost; opened in 1914 - $7 billion


• Louisiana Purchase - 1803 - $261 million

But it's not enough to convert costs to 2008 dollars. Economists also look at how the expenditures compare to GDP (Gross Domestic Product - the total market value of goods and services produced each year). When viewed this way, the above expenditures are much, much higher. The cost of World War II, for example, equates to $17 trillion when taking GDP into account. The Louisiana Purchase, which looks relatively inexpensive in 2008 dollars, actually equates to over $400 billion when viewed in the context of its share of GDP.

So, Mr. Krugman may have had a case when he recently wrote in The New York Times that President-elect Obama's "...prescription doesn't live up to his diagnosis. The economic plan he's offering isn't as strong as his language about the economic threat. In fact, it falls well short of what's needed.

Perhaps so. We'll have to see. In the meantime, we'll all have to get used to thinking about what a trillion dollars looks like.

Quik Vue: Here are more ideas for how to think about a trillion dollars.

Sources for this post include The New York Times, Plain Dealer and Wall Street Journal.

Remember the Buggy Whip?

If you do you're older than just about everyone. The buggy whip was used to control horses. As cars replaced horse-drawn wagons the buggy whip largely dropped out of sight. Today the term refers to things that have become outmoded, particularly in cases where the manufacturer or provider doesn't see it happening until it's too late. Do you see any "buggy whips" around you?

One is the recording industry. With the advent of CDs and then iPods and iTunes, the industry was changed radically. Profits for record producers, once soaring, have tumbled.






















In his book "Appetite for Self-Destruction," author Steve Knopper asserts that the music industry erred in trying to protect a business model that no longer worked. Consumers had circumvented the traditional music distribution system thanks to file sharing technology. Rather than find ways to incorporate new technology into their businesses, producers sued their customers. The strategy failed. Consumers won.

At a time when the economy is having trouble, the story reminds us of how the marketplace continues to shape the future, often in exciting ways.

Another example is the media--specifically television and newspapers. Profits are dropping rapidly. Note these trends:

• The Tribune Company, owner of the Chicago Tribune, Los Angeles Times, and Los Angeles television station KTLA, recently filed for bankruptcy.
• The Christian Science Monitor has ceased publishing in print, relying solely on electronic publishing.
• The average number of viewers watching network TV is dropping. TV station revenues dropped 8% or more in 2008.
• Media payrolls are declining with only the biggest names earning more pay.

Quick Vue: So, what does the future hold? Here are two videos that provide some clues. The first will introduce you to a new way of reading newspapers on-line. The second video features media experts Jeff Jarvis, founder of Entertainment Weekly, and Andrew Heyward, former president of CBS News.





Sources for this post included The Wall Street Journal, article by Jeremy Philips.

Dance if You MUST!

Lar Lubovitch is one of the nation's top choreographers. The Lar Lubovitch Dance Company recently celebrated its 40th anniversary. After a recent performance he answered questions from audience members. Below are a few things he said that are instructive.


You might expect Lar Lubovitch to have a flamboyant personality. After all, for over 40 years he has pursued a profession which emphasizes artistic body movements and athleticism. In his early years he trained with the likes of Martha Graham. Yet he has a surprisingly low key style. He has the precision-oriented bearing of a mathematician for whom every word counts. When he took questions from audience members I was struck by the substance of his answers. He comes across as someone who really knows who he is and is comfortable with that.

Here are three things he talked about that you may find instructive:

1. Know thyself. Dancing is extremely challenging physically. Most dancers retire at a relatively young age. Mr. Lubovitch retired earlier than most. He came to realize that he did his best dancing in the studio rather than on stage. He was too self-conscious in front of audiences. Yet other dancers, he observed, thrived on stage and did their best work. "I realized that I should be a choreographer and not a dancer," he said. So he focused his energy on choreography and created one of the most renowned dance companies in the world.

2. Less is more, but start with more. For Mr. Lubovitch the purpose of dance is to put body motions to music. When he designs a new piece he begins by memorizing the music. In his mind he imagines all kinds of dance moves, more than could ever be performed within the confines of time and space. Then he distills all that to a small subset of ideas. The end product is an artistic work more modest in scale than his original creative output. It's focused and energized.

3. Do what you know you must. One audience member asked Mr. Lubovitch what to say to someone who is thinking of pursuing a career in dance. He responded that such a decision is highly personal. Dance as a career is a difficult choice because it is so highly demanding physically and offers low pay. "One doesn't really choose to dance," he said. "You dance because it is something you HAVE to do." Such passion and commitment can bring about tremendous results, as Mr. Lubovitch has demonstrated.

Quick Vue: Here is a look at the Lar Lubovitch Dance Company during a recent performance.


Sources for this post included Rocky Mountain News, article by Marc Shulgold.

A Daschle of Concern

Tom Daschle...Nancy Killefer...Timothy Geithner...Bill Richardson...What do thy have in common?

All were nominees for cabinet positions in the Obama administration and each had a serious flaw missed by the administration's vetting process. Is it a fluke? Or is it a symptom of something more serious ?

In the meantime, Iran announced that it has launched a satellite. This event is Sputnik Part II, a grave warning that big problems lie ahead.

In 1957 the Soviet Union launched Sputnik, the world's first satellite. It was a wake-up call for the U.S. A fierce rival had taken the lead in space exploration. Americans quickly developed a deeper appreciation for teaching math and science. We began a daunting space effort that was first to put people on the Moon. With our can-do, forward looking attitude, we prevailed.

What about now? Iran's announcement is a new call to action, heightening concerns about possible nuclear weapons in the hands of Iran's leaders. These are the same people who equip others to kill and maim our soldiers in Iraq. But our economy is struggling and our new president is having to deal with some early political stumbles.

Can we respond effectively? Of course! But to be sure, the world is watching. We have enemies. And right now I'll bet they're wondering how long it will take for us to focus and how vulnerable we may be in the meantime.

Take just a few minutes to look at this CNN report on Sputnik. The broadcast aired in 2007 marking the 50th anniversary of Sputnik's launch. Note the reactions of people at the time (1957). How different--or similar--is our situation today?

Quick Vue: The launch of Sputnik and its profound impact on the world.

Sources for this post include The Wall Street Journal, New York Times and CNN.

Do You Suffer from "Goldmansachs Head"?

Columnist Peggy Noonan has come up with a new illness. She calls it "Goldmansachs Head," a take-off on the Wall Street bank named Goldman Sachs.

"When you have Goldmansachs Head, the party's never over," she wrote in a recent Wall Street Journal column. "It is the delusion that the old days continue and the old ways prevail and you...just keep rolling along."

She takes corporate executives to task for this type of thinking. Evidence the recent large bonus payouts that caught much media attention. And she also points to the Democratically controlled House of Representatives. She says the stimulus bill it passed was about "not knowing what time it is, not knowing the old pork-barrel, group-greasing ways are over, done, embarrassing. When you create a bill like that, it doesn't mean you're a pro, it doesn't mean you're a tough, no-nonsense pol. It means you're a slob."

"That's how the Democratic establishment in the House looks, not like people who are responding to a crisis, or even like people who are ignoring a crisis, but people who are using a crisis. Our hopeful, compelling new president shouldn't have gone with this bill. He made news this week going to the House to meet with Republicans. He could have made history by listening to them."

Perhaps we should all be wondering just how pervasive this new "disease" really is.

Who Creates New Jobs?

Question: Which entity below creates new jobs?

A. Government
B. Large corporations
C. Small businesses

The answer is--they all create new jobs. But, small businesses do it best.

In fact, small businesses created some 60-80% of net new jobs during the past decade. Companies with 500 or fewer people employ over half the country's private sector employees.

Small businesses create more new jobs faster and more effectively. As we look for ways to improve the economy, we overlook the importance of small businesses at our peril.

Quick Vue: Note what highly successful entrepreneur Richard Branson has to say in this very brief video.



To be sure, governments create new jobs too. But is that what we want to emphasize? New Jersey, for example, added some 58,000 employees to its payroll since 2001. The U.S. Department of Labor says that the state added about 15 new jobs for every new private sector job. Imagine if the ratio were just one new state job for every 15 new private sector jobs.

When a small business, or any business, adds a job, it is because there is an expected return on investment. In other words, the job will help the business grow and create wealth. That's not necessarily the case when governments create new jobs.

What does it cost to create a new job? Critics of the Obama administration's stimulus plan say that the federal government will spend $275,000 to create each new job. Nobel prize winning economist Paul Krugman disputes that number, saying that the cost will more likely be closer to $100,000. Even if he's right, how cost-effective is that?

Perhaps we should all be asking: How can we make it possible for small businesses to create more new jobs than ever before?

Sources for this post include The Wall Street Journal (including article by Timothy Aeppel), The New York Times (article by Paul Krugman) and The Plain Dealer .

SPECIAL BULLETIN...What's in the Stimulus?

The Wall Street Journal reported today that it has completed its first in-depth look at the proposed $825 billion stimulus legislation--647 pages. Among items found are these:

• Approximately $30 billion is to be invested in fixing bridges or other highway projects.
• $40 billion is for broadband and electric grid development, airports and clean water projects.
• An estimated $20 billion is allocated for business tax cuts.

The Journal says that the above three items, totaling $90 billion, can be considered a growth stimulus. This amount equates to 12% of the total package.

The Journal maintains that other planned expenditures do not constitute a growth stimulus. As an example it cites the $252 billion allocated to help pay for Medicaid, unemployment benefits, food stamps and the earned income credit. The amount represents about 30% of the total.

Say Thanks When Giving to Charity

Quick—take this true/false quiz!

1. Slightly fewer than half of all Americans give to charity.

2. Donations to charities rise and fall with changes in the economy.

3. Most wealthy individuals donate to gain recognition.

4. Liberals tend to give more generously than conservatives.

Based on recent studies by Gallup, Charity Navigator and the Center for Philanthropy at Indiana University, the answer to each question is...

False!

Here are some notable findings from the recent studies:

· Americans are very generous. Between 69 and 72% make charitable donations.

· Donations tend to keep rising each year. They increased in each of 39 out of 40 consecutive years. That’s through 2007, the most recent data available. The one down year was 1987.

· Most wealthy persons donate in order to give back to the community. Public recognition is essentially a “non-factor.”

· People who describe themselves as “conservative” or “very conservative” tend to give more than those who see themselves as “liberal” or “very liberal.”

Many people find the last point politically sensitive. So, just for fun, see how you compare to the levels of giving below identified in one of the studies.

Percentage of income donated by persons who described themselves as:

• Very conservative – 4.5%
• Conservative – 3.6%
• Moderate – 3%
• Liberal – 1.5%
• Very Liberal – 1.2%

Some pundits point out that conservatives often give to churches (i.e., the religious right) which accounts for the higher percentages. They make a distinction between churches and charities.

Consider this interesting finding from a study conducted by the Center on Philanthropy at Indiana University for Bank of America:

“Donors believe charitable contributions have a greater impact on their personal fulfillment than on the organizations they support.”

This sentiment is consistent with the concept of Zakah, an Islamic term for paying alms (charity). Zakah means purification. By giving alms, one becomes purified. Take a look at the very brief Quick Vue video below. (It's only 1 minute and 30 seconds in length.) Note at the end how the speaker says that donors should show gratitude toward those they help.

Then think again about the above findings. Perhaps you'll see charitable donations a little differently.


Sources for this post included Gallup, Charity Navigator, The Center for Philanthropy at Indiana University, The Wall Street Journal, Islamic Research Foundation International, Inc.

An American Success Story to the Fore!

Like Barack Obama, William Powell had to overcome racism to achieve his dream. He turned an Ohio dairy farm into a nationally acclaimed golf course. This American success story will make you say "Wow!"

William J. Powell built the first nine holes of his Clearview Golf Club mostly by hand starting in 1946. The course opened in 1948. Today it is on the National Register of Historic Places. Of some 16,000 golf courses in the U.S., only about 15 have that distinction. Mr. Powell posed for this photo in 2007 for a story in the Pittsburgh Post-Gazette.

Here’s what you should know about William Powell’s inspiring story:

• He is 91 years old, the great-grandson of an Alabama slave. He discovered golf at age nine when he became captivated by a beautiful golf course near his hometown of Minerva, Ohio. He became a caddy and learned to play the game.

• Notable quote in the Wall Street Journal: “Nobody under 70 years old has any inkling how racist this country was."

• In his youth golf courses routinely refused to let African Americans play, except for high school and college teams. Mr. Powell was a team leader. He helped form the golf team at Wilberforce University.

• During World War II he served in the Army and was stationed in England. Golf courses there, which he played occasionally, did not discriminate and his love of the game increased. But racism was still a hurdle. For example, an English woman once offered him a pillow to sit on because she had heard that African Americans have tails!

• In 1946, with financial backing from two physicians (no bank would agree to a GI loan for him), he bought an old 78 acre dairy farm near Canton, Ohio, on US Route 30 (part of the Lincoln Highway).

• For two years he worked a day job at Timken Company in Canton while at night and on weekends he and his family built the first nine holes of his course—by hand. He was self-taught in course architecture, landscaping, etc.

• In 1948, Clearview Golf Club opened to the public—to everyone. Nine more holes were added decades later. Mr. Powell thus became the only African American to design, build, own and operate a golf course. In 2001, Clearview was placed on the National Register of Historic Places.

• His daughter, Renee, served as captain of the women’s golf team at Ohio State. She joined the LPGA Tour in 1967.

• Mr. Powell and Clearview have received numerous awards including The National Golf Foundation’s Jack Nicklaus Golf Family of the Year (1992). He has a lifetime PGA membership. The Tiger Woods Foundation maintains a scholarship in the name of William and Marcella Powell.

Key message: What motivated him?

It wasn’t because he felt he could eliminate racism. His motivation was intensely personal. He once told Golf Digest:

• “Who wants to fight a racist, apartheid society all the time?”

• “I had golf in me. And I had to bring it out.”

That sentiment reminds us of what it takes for anyone to overcome obstacles and become an American success story. Wow!

Sources for the post included Golf Digest, Pittsburgh Post-Gazette and The Wall Street Journal.
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This Story Helped Me See More Clearly the Racism William Powell Had to Confront

When Mr. Powell was 16 he played in a golf tournament that did not discriminate--at least not formally. But officials nevertheless tried to intimidate him.

First, they delayed the start of the qualifying round for two hours while trying to find a reason to legally ban him. They couldn't find one. He won the round.

Then, for the first round of tournament play they changed the format so that he would not play with the tournament favorites. He won that round too.

Then officials repeated the move for the second round. “Hands visibly shaking from the stress, he finished third,” wrote John Paul Newport in the Wall Street Journal.

“There should never be that much pressure on any kid to prove that he is the best,” Mr. Powell told Mr. Newport.

It's In the Bag

At a time like this it's helpful to recall how inventors help grow the economy. Even if the invention is something mundane that we take for granted. Margaret Knight (1838-1914) showed us how to do it in 1871 by inventing a machine that creates the square, flat-bottomed paper bag. Her invention revolutionized the retail industry.

Cover of the book entitled Marvelous Mattie: How Margaret E. Knight Became an Inventor written and illustrated by Emily Arnold McCully. (Farrar, Straus, & Giroux, 2006--available from Amazon.com

Margaret Knight is credited with more than 90 inventions and more than 20 patents. She came to be known as "Lady Edison," the inventor of a wide range of devices including a:

• Numbering machine,
• Barbecue spit,
• Window frame,
• Sole-cutting machine used in making shoes, and
• Compound rotary engine.

Her first invention came at age 12 (12!) while working in a textile mill in New Hampshire. It was a life-saving, stop-motion device that made looms safer to operate. Sharp steel-tipped shuttles could abruptly be sent flying, turning them into deadly missiles. Her invention stopped that from happening. She came up with the idea after witnessing such a missile kill a worker.

Imagine what it was like to shop before the paper and plastic bags we enjoy using today. Basically, merchants would wrap your purchases in paper and tie the bundle with string, or use flour sacks and metal containers to hold your merchandise. Department stores like Macy's and Lord & Taylor's were quick to use the flat-bottomed paper bags. Clerks could package a customer's purchases and move on rapidly to help the next customer.

Credit for Ms. Knight's invention was almost lost to a man who saw her prototype machine and stole her idea. She sued and fought a long, costly but successful legal battle, finally being awarded the patent. A woman couldn't understand such mechanical complexities, the thief is said to have asserted in his defense.

Prior to her invention, flat-bottomed paper bags were made by hand and supplies were limited. Her invention enhanced production and cut costs. One machine could do the work of 30 people. So, yes, her invention put people out of work. But overall its impact on the economy was hugely beneficial.

It's timely for us to think about Ms. Knight. Her story reminds us that:

• Ingenuity matters to our economy. You may never know when or where a new invention will appear that has the power to transform.


• It's true that "necessity is the mother of invention." Inventors do what they do usually because they're trying to solve a problem, cut costs or improve a process.


• Inventors sometimes have to overcome great adversity.


• Bottom line: Inventors help grow the economy.

There's much talk these days about the Great Depression. Are we about to relive it? No one can say for sure. But while we're looking backwards let's hope that we DO relive the days when the Margaret Knights and Thomas Edisons were busy finding opportunities and creating many new inventions that helped grow the world's economy.

That's a focus that is optimistic.

Given our nation's great history of innovation, I think our chances are excellent of finding a solution to the current economic difficulty. In fact, I think it's in the bag.

Quick Vue: This is a film made by Thomas Edison called "What Happened on Twenty-third Street, New York City." It's dated August 21, 1901. The video lasts just 1 minute and 21 seconds but it provides a rich view of everyday life over 100 years ago. Take a look and notice what inventions you don't see--such as no pedestrians with a Starbucks latte, cellphone or iPod, and of course no automobiles. Also notice how some things never change, such as the woman pedestrian crossing the street who picks up her pace to "beat out" an approaching street car. Also, note the older man in white hat at the end of the film who looks over with interest at the woman (an actress hired by Mr. Edison?) whose skirts were just blown about by a passing subway train (pre-Marilyn Monroe).

I've watched this several times but have not found anyone holding a flat-bottomed paper bag. Perhaps you can spot someone.

Sources for the post include The Wall Street Journal, Inventor Hall of Fame, Paper Industry Hall of Fame, Ohio State University, Engineerguy.com.

Nuts Anyone?

We can use some optimism right now. Retired Lt. Gen. Harry Kinnard, who passed away January 5, is an example. He helped engineer a burst of optimism at a crucial moment during World War II. He suggested that Brig. Gen. Anthony McAuliffe answer a German ultimatum at Bastogne with one word: "Nuts!"

Retired Lt. Gen. Harry Kinnard passed away January 5, 2009 at age 93.

Picture the following:

• It's December 22, 1944. The German Army has shocked everyone with a surprise counter-offensive (the Battle of the Bulge).
• The town of Bastogne, Belgium, sits strategically at the crossroads of several routes, much like Gettysburg of Civil War fame. German military leaders intend to take the town as part of a strategy to push to the coastal port of Antwerp, splitting the Allies in two.
• Gen. Eisenhower orders Bastogne held at all costs. 17,000 U.S. soldiers are positioned in and around the town. One of them is Colonel Harry Kinnard, a 29 year-old decorated paratrooper, member of the 101st Airborne.
• Bastogne is surrounded by 40,000 soldiers of the German Army. It is very cold and snowy and many American soldiers lack winter gear. Foul weather has made it impossible to drop supplies from the air. Ammunition and supplies are precariously low.
• German couriers appear at the U.S. lines under a white flag with a message for the American commander, Gen. McAuliffe. Surrender in two hours or be annihilated.
• "Us surrender? Aw, nuts!" McAuliffe says to his staff which includes Kinnard. He asks for ideas on how to word a response. Kinnard answers, "That first remark of yours would be hard to beat." "What do you mean?" McAuliffe answered. "Sir, you said 'Nuts.'" Other members of McAuliffe's staff approve of Kinnard's idea.
• McAuliffe then writes this: "To the German commander: Nuts! A. C. McAuliffe, American Commander."

Thus was created one of the most inspiring and succinct communications in World War II. The next day the skies cleared permitting air retaliation and parachute drops. On December 26 General Patton's army broke through to Bastogne and the battle ended three weeks later.

What this story tells us today is:

• When "surrounded," i.e., faced with economic hard times, don't despair.
• Maintain a can-do attitude.
• Speak hopefully.
• Find inspiration in the examples of those who lived through much harder times.

For more perspective, that of a soldier in a foxhole during the battle, go to http://kclibrary.lonestar.edu/peniche.html. Eduardo Peniche, retired professor of Spanish at Lone Star College in Texas, provides an excellent account that made me feel I was there. Included are compelling images of things he did, some quite simple. For example:

• Lining the bottom of his foxhole with straw.
• Observing how water was freezing in his canteen.
• Attending church service on Christmas Eve.
• Hearing German prisoners of war singing Silent Night ("Stille Nacht").

Quick Vue: This video provides an overview of the Battle of Bastogne. Lt. Gen. Kinnard appears at 1:40 into the video.


Sources for this post include The New York Post and Leatherneck.com.

Is a Trillion Enough?

Is an economic stimulus of about a trillion dollars enough? No, says Paul Krugman, last year's winner of the Nobel Prize in Economics. Here's how to think about a trillion dollars. For starters, it looks like this expressed as a dollar number.

$1,000,000,000,000

It's a big number. Too big to comprehend, really. So here is how you can put it in context. Below is a list of six major, and notable, U.S. expenditures from the past. The cost for each is expressed in 2008 dollars.

• World War II - 16 million troops; 4 years - $4 trillion
• Interstate Highway System - 35 years of construction - $800 billion
• New Deal - public expenditures during the Great Depression - $500 billion
• Space Program - Projects Mercury through Apollo (Moon landings) - $140 billion
• Panama Canal - construction cost; opened in 1914 - $7 billion
• Louisiana Purchase - 1803 - $261 million

But it's not enough to convert costs to 2008 dollars. Economists also look at how the expenditures compare to GDP (Gross Domestic Product - the total market value of goods and services produced each year). When viewed this way, the above expenditures are much, much higher. The cost of World War II, for example, equates to $17 trillion when taking GDP into account. The Louisiana Purchase, which looks relatively inexpensive in 2008 dollars, actually equates to over $400 billion when viewed in the context of its share of GDP.

So, Mr. Krugman may have had a case when he recently wrote in The New York Times that President-elect Obama's "...prescription doesn't live up to his diagnosis. The economic plan he's offering isn't as strong as his language about the economic threat. In fact, it falls well short of what's needed."

Perhaps so. We'll have to see. In the meantime, we'll all have to get used to thinking about what a trillion dollars looks like.

Quik Vue: Here are more ideas for how to think about a trillion dollars.

Sources for this post include The New York Times, Plain Dealer and Wall Street Journal.

What's In YOUR Salt?

What if you had to name the top 10 inventions or discoveries that benefit your life every day? Would iodized salt be on your list? It should!

Morton Salt Company's label when it introduced iodized salt in 1924.

It has been estimated that one-third to one-half of the world's people do not get enough iodine, an essential mineral, from food and water. Perhaps you learned in school that iodine helps prevent goiters. But iodine (a Greek term originally meaning "violet") provides many other benefits. It can combat:

• Bacteria


• Viruses


• Parasites


• And even some cancers.

It can also prevent mental slowness. One report suggests that iodine deficiency causes an unnecessary loss of over 1 billion IQ points worldwide. Even in the U.S., many pregnant women are iodine deficient.

Iodine deficiency is a significant issue throughout the world. It can cause or contribute to:

• Mental retardation
  
• Infertility


• Infections


• Muscle constriction


• Fatigue


• Chronic sinus infection

In the U.S., iodine became a major part of our diet in the mid 1920s. That's when iodized salt became commonly available thanks to pioneering work by two physicians, one in Michigan and one in Ohio (location of a large salt mine--Cleveland). Morton Salt Company and Diamond Crystal Salt Company (now part of Cargill) endorsed their work. Now we rarely hear about people getting goiters. But we often overlook iodine's other benefits.

There is an effort underway to spread the good word throughout the world about the benefits of iodized salt. It's not a glamorous campaign, so it doesn't inspire many bold headlines. But a panel of global economists, called the Copenhagen Consensus, has studied the most cost-effective solutions to the world's problems. They determined that iodine and other so called micronutrients (vitamin A, iron, zinc and folic acid) should be at the top of foreign aid spending priorities.

Quick Vue: These are two very brief videos (about 1.5 minutes each). The first takes you to Nepal for a look at efforts to educate people about the benefits of iodized salt. In the second video Wener Schultinic, Associate Director of Nutrition at UNICEF, tells how UNICEF's efforts have been very successful particularly since it stopped seeing iodine deficiency as a public health issue. It now sees iodized salt as a developmental opportunity, enabling UNICEF to partner with governments and businesses.











Sources for this article included The New York Times, "Raising the World's IQ," by Nicholas D. Kristof (12/4/2008) and the International Council for the Control of Iodine Deficiency Disorders.

Look Again!

No doubt you've seen many Greek and Roman statues, either in museums or in textbooks. But German archaeologist Vinzenz Brinkmann wants you to take another look. Why? You'll be amazed!


Herr Brinkmann and his spouse, Ulrike Koch-Brinkmann, have created full scale plaster copies of numerous ancient statues. Then, based on painstaking research, they painted them to make the copies resemble how the statues appeared in ancient Greece. That's right. The two maintain that in ancient times statues were painted colorfully. Over time, the hues washed away leaving us today with statues of just white marble.

Some contest their conclusions. But no one can argue that the effect isn't dramatic. Take a look at the example below from an exhibit sponsored by the Glyptothek museum in Munich. What a difference!


The museum put together an international exhibition called Bunte Götter (“Colored Gods”), to showcase the work in 2004. The exhibition appeared in Istanbul in 2006 and in Athens in 2007. Portions have been shown at Harvard University and at the Getty Villa in Malibu, California.

The replica in the picture below is juxtaposed against a display of statues arranged like action figures. The scene is the Glypothek museum which specializes in Greek and Roman statues. (That's the original archer in the background. It dates back to 490 B.C.) The same painted statue appeared in the July 2008 issue of Smithsonian magazine which contained a feature article on this subject by Matthew Gurewitsch. ("True Colors"--go to: http://www.smithsonianmag.com/arts-culture/true-colors.html)

What an amazing new perspective!

Exhibition photos from: http://www.stmwfk.bayern.de/kunst/museen/kalender_2005/kw_42.html