Cunningham Muffins!

I don't know what it is about this video, but it makes me laugh every time.

Thanks Mike.

Happy Friday.



Blood.

Globalization and the New Robber Barons

I’ve always been interested in economic analysis, especially at the macro-level. I would have majored in Economics if I had been better at math, but I wasn’t, so I didn’t. The concepts and theories of Economics are easy to understand, creating the models and testing hypothesis are where Economists make there money.

There is no better example of this than “Globalization.” Most people can intuitively comprehend the ins-and-outs of a shift from national markets to a global market. But it is extremely difficult to accurately measure or even quantify many of the effects of global integration. Globalization works in amorphous and mysterious ways. It slowly erodes traditional modes of economic organization and produces new ones at break-neck speed.

Globalization is, on balance, a good thing. But in the current geo-political landscape it could create a large number of “losers.” I am not about to argue against the gains freer trade and more efficient allocation of labor activities produce. Global trade has no doubt increased the absolute wealth of the world. Ultimately everyone will be better off if countries resist the urge to engage in various forms of protectionism. But I do have a problem with unflinching faith in free markets, especially on a global scale. Until there is a powerful independent form of global governance, I am skeptical that the global community will be able to avoid repeating some of the most disastrous mistakes of our past.

America’s economic experience since the Industrial Revolution illustrates a couple of free-market-evils. The average America has been defrauded numerous times by the “Robber Barons” of the 19th century, Ken Lay, Bill McGuire, and many, many other like minded shysters. And while Capitalism is without a doubt the most efficient and productive form of economic organization, it has its flaws too.

Federal Anti-Trust law was created to battle monopolistic tendencies that are inherent in Capitalism. With out anyone looking over their shoulder, robber barons got ahead by using any and all means necessary to dominate their industry. If one company was better situated economically, its leader would leverage that power against rivals until they collapsed. Eventually the remaining company (or companies in the case of cartels) had tremendous power over its piece of the economic pie. This is why independent governance is necessary. Without the ability to break-up capitalism’s “winners,” monopolies wield a frightening amount of power.

As those at the top concentrate power, they typically concentrate wealth. Twenty-five, thirty years ago CEOs made 20 times the average laborers salary. Today, CEOs make 400 times the average laborers salary. This growing disparity is driven by both the devaluation of labor, and a second coming for the “robber baron mentality.”

Strong, independent governance is needed to prevent widespread corruption. Business people are, by their very nature, competitive. And competition is the engine that drives Capitalism. But without proper oversight, competition entices many to bend the rules. Ken Lay and his Enron cronies thought they could get away with pencil-whipping Enron investors. Bill McGuire and a host of others thought they could back-date their stock options without anyone noticing. Both of these scams were wildly successful, even with the SEC around.

Unfortunately neither the WTO, nor the UN are equipped to assume oversight or redistribution responsibilities. Nor is the United States ready to retrain or compensate those who have lost their jobs to cheaper sources of labor abroad. Until these systemic problems are solved, or at least somewhat mitigated, the rich will get richer and labor will get poorer.

It’s good to be a baron.

Visa is a Liar

Visa has been running this commercial a lot lately. And it annoys me to no end. I know I shouldn’t let it bother me, but the new trend of using your check-card for everything is a pet-peeve of mine.

Check-cards have made some transactions quicker, no doubt about it. And they have made checks virtually obsolete. No longer must we wait in line at a grocery store while someone balances their checkbook instead of bagging their groceries. But to insinuate that check-cards are faster than cash is just silly.

How many times have you been out with a group of friends for dinner or drinks, you get the check and 7 people throw check-cards down. Not a problem if the bill can be split evenly. But that doesn’t work when I order the fillet mignon and someone else just has drinks. So the poor waitperson has to try to keep 7 different portions separate and run 7 different cards through. Inevitably there is a mistake and a second or third trip is required. This is not a very efficient process.

The pervasive use of check-cards also has an untoward effect on the hospitality industry. If a patron tips on their check-card, a paper trail prevents servers from deciding how much of their tips they are going to claim. I’m not advocating tax dodging, I only point this out to say that you tip isn’t worth as much when you put it on your card. And how do you tip valets or sky-caps with check cards?

With the ubiquitousness of ATMs is it really that hard to keep a little cash in your pocket? If you are heading out for a night, is it that inconvenient to stop at a cash machine? On behalf of hospitality workers everywhere, I ask that everyone make an effort to carry a little cash with them. Besides if you try it, you just might like it.

Personally, I like keeping a little bit of green in my pocket. It makes my life easier. And I will continue to carry cash (in addition to my check-card) until the neighborhood kids’ lemonade stand takes Visa.

"20,000 men on the dead man's chest- Yo-ho-ho, and a bottle of rum!”*

The Iraq war has reached a tipping-point… or so George Bush would have us believe. Wednesday night he presented his case to the American people. Stead-fast in his pursuit of “victory,” 20,000 more soldiers will be sent to Baghdad to sweep-out and hold the neighborhoods of the Iraqi capital. Will the additional man power tip the scales in favor of the Iraq government? Will the Iraqi security forces finally “step-up?” I hope they do. But no mater how sure Bush is, he has to be feeling hot under the collar.

Almost immediately after the Iraq war began, the congressional and popular support for the President began slipping. Sure, Bush still has John McCain (R-AZ) and Lindsey Graham (R-SC) and a handful of others in his corner. But when former Presidential lap dogs like Norm Coleman (R-MN) and Sam Brownback (R-KS) start to turn… Bush must be worried.

Bush is the captain of a pirate ship and the mutiny is brewing. He is attempting to keep the crew working toward the “treasure,” but day by day the subordinates are losing moral. Yet Bush will not, or cannot, come to terms with either the scope or nature of the problem. There was a recent ray of hope that he had turned the corner. When Bush commissioned a bi-partisan panel to look at the worsening situation in Iraq it looked like he was finally beginning to grasp the problems inherent in his current Iraq policy.

But the Iraq commission now appears to be little more than another attempt to rally support for an unpopular war. Bush is doing everything he can to keep up the façade, as if admitting defeat is worse than defeat itself. He knows that his presidency will be judged by the perceived success or failure in Iraq. And Bush either honestly believes that “winning” in Iraq will set-off a domino effect in the Middle East, ending terrorism and installing democracy through out the region. Or he has resigned himself to the battle of perception. Either way, putting 20,000 more American lives in the balance is both reckless and desperate.

Forgive me if I don’t believe that Bush thoughtfully considered all the advice that he was offered. Until he acknowledges that we are fighting a cultural battle with military forces, there can be little hope for any meaningful progress in Iraq. Meanwhile, more families will have to deal with the loss of loved ones, more soldiers will come back injured and deformed, and the battle for Iraq hearts and minds will be won by insurgents with a radical religiosity that will keep them on the battlefield long after U.S. troops have left.

George Bush does not understand the enemy, he does not understand the culture, and he does not understand the lessons of our past. Yet he sails on undaunted, unwilling to level with the nation. This maybe his last chance, after that… all bets are off.

*Treasure Island, by Robert Louis Stevenson

The MN Life in 2007: Now With 50% More Topics Per Post

Sorry for the long absence, but the holidays kept me moving and I didn’t run into any topics that I felt I needed to write about. But I’ve never let lack of interesting topics stop me before. So to get my blogging mojo back, here is a schizophrenic multi-topic post. I’ll keep the “dairy portion” to a minimum.

First, the holidays were great. Ambular and I spent a relaxing Christmas in Madison. Ambular’s parents gave us a Bose Ipod docking station. It is sweet. Its size is its best feature. It is 12 inches long, 8 inches tall, and the base is about 6 inches wide. And like every Bose, it pumps-out great sound. It makes home stereo systems obsolete.

Second, Ambular and I had a great time at Carol and David’s for New Years. We could have done without the 3 inches of wet snow, but it was nice to fiiinally get some snow. Many lobsters were consumed and much rocking followed. David did a great job cooking the lobsters; they were a delicious holiday treat.

After enjoying the delicious crustaceans, some of us took turns “rocking” on Guitar Hero II. Carol bought it for David for Christmas. It’s more fun than you think it would be; it’s even entertaining to watch. Now, if they could find a way to combine Dance, Dance, Revolution with Sing Star and Guitar Hero…

We both had a great time, many thanks Carol and David.

Third, it amazes me that Joel Maturi, the University of Minnesota Athletic Director, is still employed. He just fired (or did they “resign?”) Glen Mason and Dan Monson after signing them to large contract extensions not that long ago. These “ooopsies” will cost the U of MN athletic department millions. Few people can make a mistake that costs their employer that kind of money and still keep their job. I’m so jealous of Ambular, PW, Laura, and Mike O. and their Badger pride. It’s been ten years since the Final Four that never was. Since then I’ve been waiting for my alma mater to build a respectful football and/or basketball team… (sigh).

Four, just because we are a blue state, the government is picking on us.

Five, I have a new way to define “Irony.”

Finally, happy New Year to all