Friday, July 26, 2013

Detroit


If there’s an epitome for failure, it’s summed up in one word – Detroit. 

My birthplace’s tragic Chapter 9 bankruptcy filing could likely have
been avoided had its leaders worked to modernize the city and reversed
its many disturbing trends over the last 50 years.

No matter where you fall on Detroit’s woes – black or white, rich or
poor, cityemployee or private sector worker, Republican or
Democrat – you cannot be surprised it hit rock bottom. 

It was just a matter of time.

More than 60 years ago, Detroit boasted a population of nearly 2
million people; today it’s down to just over 700,000, with some
estimates saying the population drop continues.

As the Kresge Foundation reports, the city’s financial recipe led
it to this harrowing state:  Over the years, it cut services and borrowed
to pay off its previous debts, which are estimated to be about $16 billion
today; meanwhile, it’s tax base, which always consists of people, 
fled, meaning it didn’t have the revenue to cover its costs
or its borrowing expenses.

But Detroit’s calamities are so much more. 

They also include a former mayor jailed for a number of crimes,
including racketeering; the ones prior to him were simply incapable
managers, failing to reverse trends that ultimately put the city in
the tank. 

There are enough abandoned buildings in Detroit to form three or
four mid-size cities and about 80,000 abandoned homes, the Daily
Beast reports.

While it’s always easy to blame any city’s leaders for poor
performance, which, in this case, they rightly deserve, you cannot
blame them alone.

Detroit’s private sector, especially its automobile companies, which
long called it home, must be examined too.  They give every
impression of having thrown in the towel years ago.

The long-suspected rumors about the Big Three auto companies never
supporting a commuter rail system for Detroit and its neighboring 
suburbs, which would have helped draw people into the city, giving
it a chance to grow, are disturbing if true. 

But perhaps instead of killing the idea outright, the Big Three just
stopped putting effort behind the idea. 

The mayor, David Bing, a Hall of Fame basketball star, is third or
fourth in line when it comes to running Detroit, behind the emergency
manager charged with putting the city’s books back in order, the judge
overseeing its bankruptcy, and the creditors, not to mention U.S. 
bankruptcy law, which will loom large as Detroit’s finances are restored.

Anyone thinking nothing – at least with the city’s pensions – won’t 
change, better think again.  There are no sacred cows in bankruptcy. 
Everything will be scrutinized.

When I was hawking columns, comics, puzzles in the ‘90s, I visited
Detroit often, sometimes as much as four or five times a year. 
The crime never hit me personally, but it was more than apparent
the city was failing.

When editors in Michigan asked where I was based, I answered
Chicago.

“Oh, Chicago,” they would say, “that’s what Detroit use to be.”

(Chicago’s current ills are for another blog post.)

Detroit’s leaders, whether in the public or private sector, former
or current, should hold their collective heads in shame.

They ruined a great American city, once described as “The Arsenal
of Democracy” by the late President Franklin Roosevelt during
World War II.

FDR’s words offer a stark lesson:  We’re a democracy, meaning our
votes and our actions determine whether our communities, towns,
cities, states and, ultimately, our country, go forward.

If the people of Michigan and Detroit are looking for someone to
blame for this tragedy, they need only look at the first person they
see each morning in the mirror – themselves.

Thursday, July 04, 2013

A different twist


MOUNTAIN VIEW, Calif. – The newest social networking website comes with a whole new twist: Instead of encouraging its members to connect with friends and professional acquaintances, this one wants people to round up folks they may never have considered – their enemies.

“FuckYou-IHateYou.com,” funded by Silicon Valley venture capital firm Alliance Capital, claims more than 10,000 members and another 1,000,000 enemies.

“Unlike your average LinkedIn member, or Facebook friend, our members aren’t full of shit,” said James Lee, the 24-year-old chief executive officer of FuckYou-IHateYou.com. LinkedIn was one of the first companies to establish itself in the social networking space.

“The average member of our site has around 100 enemies and they hate each and every one of them – with a passion,” said Lee.

“Let’s face it, no one who connects with someone on LinkedIn or any of those other social sites really wants to be someone’s friend,” said Lee. “It’s just a place for frenemies.

“Our members are honest. If they say they hate you, they really hate you,” Lee added.

Lee, who started FuckYou-IHateYou.com during his freshman year at Stanford University, says that members of his site just list their enemies.

“There’s none of this BS like asking for permission to be someone’s enemy. Our members just list their enemies and that’s it. They’re done!”

Members can view one another’s enemy list, Lee said, to make sure they’re hating “the right people.”

“If you and another member have someone you hate in common, that’s even better,” said Lee.

When told that his site sounded like another version of President Richard Nixon’s enemy list, Lee, looking confused, asked, “What was he president of?”

Members of FuckYou-IHateYou.com are encouraged to increase their enemies list as fast as possible.

“The member listing the most enemies any given week can win prizes, trips – even a car,” said FuckYou-IHateYou.com’s membership vice president Toby Benwick.

Perfect people to list as enemies, Lee said, include “anyone who ever dissed you or anyone you refer to as ‘ex’. That could be an ex-girlfriend, wife, husband, boyfriend, lover, employee.

“Bosses are always good,” he added.

Members are encouraged, Lee said, to post pictures and video clips of the people they hate.

“Our staff always does a round of high fives if a member’s enemy dies,” said Benwick. “That’s just the coolest.”

Unlike Facebook, which has a “like” button people can click when their friends post something, at FuckYou-IHateYou.dom, there’s a button marked “BS”.

Membership to the website is free. Sponsors for it include divorce attorneys and various hate groups, including the Ku Klux Klan. Not to be outdone, the Nation of Islam is considering what Benwick describes as a “huge” sponsorship opportunity on the site.

Lee says he’s also heard from the Tea Party as well as groups identifying themselves as politically progressive.

“We’re bipartisan in our hatred,” he said.

Not to be outdone by a certain leading executive at a leading social networking website, FuckYou-IHateYou.com’s CEO Lee announced that he, too, just signed a deal with Random House to write a book.

It’s entitled “Stop #@$%& Leaning on Me:  Get a Life, Damnit!!!!”

Details are being finalized, Benwick said, for some of the site’s members and their selected enemies to make special appearances on various daytime television talk shows.

“We look forward to our first smack down with the FuckYou-IHateYou.com people,” Jerry Springer said through a spokesman for his television show.

Friday, June 21, 2013

That useless brain


Why ask why? 

For those old enough to remember, that was the question posed
in a television commercial in a bygone era, and one that should
be asked again today.

But the problem with asking why is that it presupposes you’ll
actually think.

And, hey, why do that? 

It’s so much easier to follow the crowd.

That’s what Holman W. Jenkins Jr., writes about in one of his latest
columns in The Wall Street Journal. (http://online.wsj.com/article/SB10001424127887324634304578539453974685238.html)

That journalism suffers from a lack of mental dexterity or that
people are more easily swayed by their emotions or habits they
picked up from their parents and ancestors– anything but their brains!
– in deciding their votes or other important issues should come as no surprise.

After all, if your parents were Democrats, you’ll likely be one, too;
the same goes for Republicans. 

Religious beliefs are similar.  If you were brought up Catholic, you’ll
likely be one as an adult; and the same holds for every other religion.

It’s easy to simplify problems.  All we need is demon and a solution.

The fact that medical care is expensive is the demon.  The easy
solution – as brought to us by Congress and President Obama -- is to
make health insurance affordable and, thus, accessible to all. 

The fact that healthcare, as provided by the doctors and
the nurses, might suffer is not something you should think about.

And, whatever you do, don’t think about basic economics and the
fact that, at any time, you introduce a third-party payer – as the
current health care system is set up – the provider of any service,
medical care included, is given the ability to raise their prices, thereby
making healthcare unaffordable to anyone who doesn’t buy a
health insurance policy.

Or the fact that insurance companies, forced to cover any and
all illnesses, might compel some doctors to leave the system so
they're able to only accept private money for their services
isn’t something you should worry about either.  

The easier thing, instead, is to go along with the people who have
a complication to solve the complication.  It comes to us as the
Affordable Care Act, which, essentially, sells us to the health
insurance industry. 

Which means, other than allowing you to buy health insurance,
nothing’s been resolved.

But don’t think about that.

A better solution – if someone really wanted to lower the
doctors’ fees, hospital prices and drug prices – would have
been to eliminate insurance companies.

But that would have been too radical.

And since you’re struggling with basic thinking, Senators,
Members of Congress and the President know you can’t
handle hard solutions that require arduous thinking.

If everyone in the healthcare industry was forced to compete on
price – like the car companies are – drugs and doctor visits
wouldn’t cost nearly as much. 

Sure, there would some high-priced doctors and hospitals just like
there are high-priced cars and houses.  Those on the high end
would sell better service.

At the lowest tier, doctors charging far less would offer economy care.

And most doctors would likely fall somewhere in the middle for things
like physicals and urgent care.

But, hey, why think? 

It’s so much easier to leave that to someone else.



Friday, June 14, 2013

I need a fake ID


For the first time in a very long time – since I was a teenager – I’m
giving thought to acquiring something I’ve never needed. 

What’s surprising is that I didn’t need one when I wanted a particular
controlled substance when I was a teenager – booze.

When the drinking age was 18, I had little or no trouble buying beer
and wine without an ID.  Maybe it was my looks or maybe it was the
way I came across when making a purchase.

And when I was in college in Indiana, where the drinking age was
21, I still had little or no trouble buying beer, either at a store or at a
bar frequented by the locals in Greencastle.

So here I am, well over 21 – likely considered a geezer by my
children – with never a record of drinking under the influence or ever
abusing drugs and there’s one thing I can’t buy as often as I need, all
because of government regulations.

Claritin D – an incredibly effective drug at controlling allergies – can
only be purchased by individuals at the rate of 7.5 grams per month,
which from the information I can gather, is around 30 pills a month.

The problem I ran into the other night at my local drugstore was that
I had purchased some of these pills twice in the last few weeks and
had gone over government-imposed limit.  This was because my
wife had used some of them. 

As a result, the pharmacist refused to sell them to me, saying I could get a
prescription to successfully circle around government regulations.

The regulations, she said, are about preventing people from cooking
down the Claritin D pills so they can acquire methampetamine, an
obvious problem in the little suburb where we live.

Methampetamine, usually referred to as “meth,” is an illegal substance
used by some people to get high; there are published reports saying
young women will smoke crystal meth so they can lose weight rapidly. 

What’s interesting about the regulation over Claritin D is that it
has little to do with acquiring the drug as much as it has to do with
purchasing too many of the pills in too short of a time.  It’s thought
that by regulating the purchase times, the distribution of meth will
be dampened. 

I guess, if I was really determined to cook up some crystal meth – and
not that I am – I could store the pills until I have enough to create huge
batch of this illegal drug.

But, really, all I’m trying to do is breath, so the last thing I’m about to
do is cook up some meth – the lure of the money notwithstanding. 

I’m neither an addict nor a pusher and nor a buyer of illegal substances.
I just want to breath so I can go on my four plus mile run five mornings
a week. 

(In fact, come to think of it, I’d like to see my doctor – maybe even the
pharmacist – on this run, too.)

So I’m now giving serious consideration to acquiring a fake ID that
can be used at places like CVS and Walgreens so I can buy Claritin D
whenever I need it. 

We’re hardly talking heroin or cocaine here.  We’re talking a little pill
that helps me breath. 

Check out struggling to breath, and you’ll understand my cry.

So, really, thank you for your worries about my well being – whether
you work at the Food and Drug Administration, you’re a police
officer, a judge, a prosecutor, the local pharmacist, the president
or vice president of the United States or a member of Congress. 

Thank you.  But, really, I got this!

If you’re really worried I’m about to start up a meth lab – really I don’t
have the time! – you’re more than welcome to search my house, anytime.

Just show me your warrant at the door.

Sunday, May 26, 2013

Tumblr says Google is worth $4.2 trillion


Barron’s story about Yahoo’s acquisition of tumblr fuels fears
and reservations about Silicon Valley valuations, especially
compared to ones that are grounded in reality.

To be clear, this is not meant as a knock against Barron’s reporting.
It’s outstanding, as usual.

What’s disturbing is the $1.1 billion price Yahoo paid for tumblr,
a company that received more than $125 million in venture funding
but has only produced $13 million in revenue, Barron’s reported.

The metric used for valuating Yahoo’s price for tumblr is about 84.62
times the micro-blogging website’s annual revenue. 

While tumblr may bring a unique advantage to Yahoo, what hasn’t
been made clear in any of the reporting is whether tumblr’s
technology is so proprietary it can’t be duplicated.

Tumblr, then, in many ways, is a glimpse of how venture capitalists
value website start-ups; but this euphoria or, if you prefer, valuations
far beyond reality, cannot last.

At some point, Silicon Valley industry directors and executives will
sober up, realizing Wall Street values these start-ups for far less than
the venture capitalists searching for the next greatest fool to pay
a price that's far beyond reasonable for the company they’ve invested
in and helped build.

The tumblr acquisition shows that venture capitalists, their investors
and the start-up’s employees are the winners.  The shareholders
of the acquiring company, based on what happened to Yahoo’s
stock last week, are the losers. 

If the metrics for valuating tumblr are used with Yahoo or with the
Silicon Valley’s standard-bearer of the health of the technology
industry, Google, then these two companies are worth far more,
at least by venture capitalist standards, than Wall Street says.

For example, Yahoo, during 2012, produced about $4.9 billion
in revenue; its market capitalization is about $30 billion, which is
just over six times the company’s annual revenue, a metric far
less than what it paid for tumblr.

But if tumblr’s recent value – based on the price for which it was
just purchased – is applied to Yahoo, then Yahoo should be worth
about $422 billion. 

For that matter, Google, which produced about $50 billion in 2012,
should be worth about $4.2 trillion and yet the search engine’s market
capitalization is but a humble $290 billion, just under six times
annual revenue.

Facebook, the most recent Silicon Valley player to go public,
produced $5 billion in revenue in 2012 and has a market
capitalization of $60 billion, or 12 times revenue; applying the
tumblr valuation, the social media website should be worth $422 billion.

Based on the reality of Wall Street – around six times annual
revenue – Yahoo shouldn’t have bid more than $80 million for tumblr.

How long venture capitalists can secure the kind of valuations that
tumblr just received is hard to say.  How long Silicon Valley executives
want to be the fools of venture capitalists is also difficult to predict.

But anyone who’s ever followed valuations and traditional 
economics knows prices cannot remain this high forever.  At some
point, the rubber meets the road.

Friday, May 24, 2013

Beauty's tyranny


Clothing styles constantly change – especially for women – but our
collective thoughts about what constitutes a beautiful woman
remains, with a few nuances, steady:  She’s young, often blond,
slim, with breasts and buttocks men will notice.

If a woman’s physical appearance falls outside this precise
definition, she’s old, ugly, worthless, to be ostracized, perhaps
even used.

And while many a man, including me, has cracked a few jokes
about the time it takes a woman to get ready, there’s something
all men would do well to keep in mind:  Women’s looks are harshly
judged and often their inner voices are bellowing, telling them
they’re not thin enough, young enough, stylish enough, beautiful
enough, possibly even blond enough, to attract a man.

It’s in the advertising; the magazines and newspapers; on the web;
on television; it’s in the movies and it’s in the stores.  Women
are surrounded and pressured by this message.

Beauty requires monthly appointments at the hair stylist, time
for a facial, never enjoying a meal, never eating dessert, and
allotting enough minutes in the bathroom, so she can make her
hair just right and her skin youthful, so she turns a few heads,
if not from men, from her biggest critics – other women.

Compare what she endures to how the average man sees
himself:  He might be 20 – 30 pounds overweight, but Adonis
is in the mirror, even when he’s naked.

Women feel something that rarely touches any man:  The
tyranny of beauty.

For teenage girls, especially, as well as young women in
their 20s, these exacting standards are so powerful they can
make them depressed, feeling ugly, unwanted, unappreciated,
leaving, potentially, a life-lasting impact.

And yet, there’s someone rarely asked for their opinion
about what they want in a woman – a man.

Most men, some published reports say, aren’t likely going
for the woman living the Madison Avenue-developed, 
Hollywood-produced, fashion-idea of good looks.

Both Psychology Today and Everyday Fitness, a blog produced
by the Discovery Channel, report men prefer curvy, fuller
looking women than the ones presented by the fashion industry.

But ideas so rooted in our culture die hard.  Models remain thin
and many of us take our  beauty cues from those appearing in
magazine ads, across television screens, perhaps even on the web.

So it’s no wonder Jes Baker, a woman with a fuller figure, 
perhaps even – dare I say it – fat, took it upon herself to
complain about feeling ostracized by Abercrombie and Fitch
because of her size.  She deserves a medal for her work.

Apparently there’s even a statement, from seven years ago, 
attributed to the retail chain’s CEO, Mike Jeffries, saying he
doesn’t want larger people shopping his store.

But let’s face facts:  The thin model appearing in Abercrombie
and Fitch ads is no different than the one appearing in many other ads.

In fact, the last time I saw an ad featuring “real women” – that
is, those not thin as a rail – goes back maybe a decade ago
and it was for Dove soap. 

As I recall, they placed ads on television and billboards showing
real women in their underwear and, frankly, each one was beautiful.

The soap maker has continued this theme with another round
of television or online video ads, asking women to describe
themselves to an artist who never sees them but draws them
based on their descriptions.

The artist then asks people, who just met these same women,
to describe them. 

Two pictures of each woman are placed side by side and no one
should be surprised to learn that the second pictures, where the
women were described by someone else, were not only a more
accurate representation of their looks but also more beautiful.

In other words, the women failed to realize how attractive they
are.  But others – even those they’d just met – did.

And then an epiphany sets in:  Each woman learns the world
sees her as far better looking than she’s ever seen herself.

So the fashion industry and parts of the retail business, as well
as our own society, have done a fine job providing women
with an inferiority complex.

Men have suffered, too.  These exacting standards prevent 
them from searching for women with great personalities or ones 
with high intelligence – in other words, women who may not
meet beauty’s standards.

Instead, he feels compelled to look for the woman that meets
the definition but who may very well look at him with the
same cutting eyes used against her.

Men have their own beauty expectations to fill.  They’re to be
tall, dark and handsome; in other words, six feet tall, with broad
shoulders.

Beauty forces us into a mold.  Instead of putting our efforts toward
finding someone whose mind connects with ours, who will improve
our souls, through a loving, in-depth relationship, we’re focused
on the superficial – the butts, the boobs, the hair, the height and
the shoulders – which fails all of us no matter our gender.

Wednesday, May 22, 2013

The worries of Tumblr


You can’t help but wonder what Yahoo’s top corporate executives
are doing.  Sure buying blogging site Tumblr appears, at least on the
surface, to be a fine idea but what about that price?

According to newspaper reports, Yahoo paid $1.1 billion for Tumblr,
a company that generated only $13 million last year. 

Apparently making the deal irresistible was that Tumblr, according
to published reports, has between 117 and 300 million unique monthly
visitors, many of them younger – perhaps even slimmer – than the
average Yahoo user, described, in a blog at the Los Angeles Times,
and another, in Digital Trends, as “Overweight women ages 18 to 49,
who tend to be in relationships of only one to five years with children, 
residing in the suburbs or rural areas.”

The pending acquisition raises many questions and points that, perhaps,
weren’t vetted as closely as possible, including whether Tumblr’s
hipsters will want to be part of a web portal that fat, middle aged women
find attractive?

There are also other questions, too, including the following:

The information about the number of unique monthly visitors isn’t clear.
According to The Wall Street Journal, Tumblr has about 117 million
but according to Tuesday’s Investor’s Business Daily, it’s around
300 million. 

For the sake of shareholders, can Yahoo provide a unique monthly
user number that holds up to what ComScore reports, 117 million?

While apparently it’s difficult but not impossible to sell ads on Tumblr,
a more worrisome issue for Yahoo is Tumblr’s users, who, based
on what’s been reported, have no reason to remain with Tumblr.

In other words, they can flee to other micro blogging websites or
start one of their own.  If that’s true, what’s the value of Tumblr to
Yahoo?  Is this really a technology play?

Did Yahoo consider the possibility that if Tumblr’s revenues never
move north of $13 million, it could take it close to 86 years to earn
what it paid for the site?

If it can generate, as one former Google executive said on his blog,
about $100 million a year, it will only take Yahoo about 10 years
to have Tumblr paid off.  Does that number hold up if the users flee?

If there really are only 117 million unique monthly users for Tumblr,
then Yahoo paid about $9.40 for each of them.  Do they have a plan
in place to keep them?  What will it cost?

While Yahoo’s Tumblr acquisition might make sense – let’s assume
CEO Marissa Mayer knows what she’s doing – what’s not certain
is how this acquisition will move Yahoo’s stock price.

Based on what’s happened this week, so far, the stock market
appears to have welcomed Yahoo’s acquisition, modestly moving
its stock price up from where it had been on Monday, meaning that
while Wall Street approves the deal, it’s far from excited about it,
and, quite possibly, doesn’t understand it.

The larger, overriding issue is that economics catches up with
every industry.  It might not happen for a decade or 20, possibly,
even 30 years but, in time, economics determines how industries
mature, prosper, fall apart and work.

Right now, we appear to be seeing the maturing of the Internet
industry as it consolidates.

When an industry is new, entrepreneurs and companies of all shapes
and sizes often step in because they see an opportunity to thrive.
Only a very limited few will succeed but, as with PowerBall gambling,
if the winnings are viewed as being high enough, many will throw
their hat into the ring.

But eventually there’s a contraction as investors cash out, taking their
earnings and banking them for another future opportunity while
others shut down, not always able to sell the assets they once
used in the new industry.

This activity – of one company buying another – usually leaves
fewer players, making the new industry look like an oligarchy,
with a few dominant companies keeping a close eye on one another.

While it’s hard to believe today, the U.S. automotive
industry back in the late 19th and early 20th centuries, was
composed of about 2,800 companies.  They included mom
and pop shops to long established companies in the horse-drawn
wagon business trying their hand on a new idea – mechanized
transportation.

The automotive industry’s new technology was so successful,
disruptive even, that it killed off horse draw wagons.

Today, there are three automotive companies headquartered in
the United States, Chrysler, Ford and General Motors, but only
two are U.S.-owned, Ford and General Motors. Italian carmaker
Fiat owns Chrysler.

The U.S. daily newspaper industry suffered a similar fate, from
being an industry once composed of more than 5,000 titles, back
in the late 19th century, according to About.com, to one that publishes
just over 1,400 different papers today.

Little deals like Tumblr, at a shocking price of $1.1 billion, are
small.  Tumblr will become a division of Yahoo – not something
that fundamentally alters Yahoo.

Deals like Tumblr – where the company was valued at nearly 85
times more than its annual revenues – can’t continue.  If Tumblr
never brings in $800 million, or even $1 billion – and it’s hard to
see how it will – Internet executives will hesitate, and likely refuse,
to pay such extraordinary multiples for the next company whose
revenues don’t come close to backing up the valuation its
investors claim.

The wild-eyed optimism of the Internet -- $1 billion for Tumblr
or Facebook’s recent valuation at $500 billion (when it’s only
doing over $5 billion a year) – will end. 

As the Internet industry matures, the question that needs to be
answered is what’s the future for Yahoo, Google and Bing?
Which one of these players will buy the other to provide it
with the long-term competitive advantage it needs?

Growing up is hard to do, says the adage, and anyone
who’s been in an industry’s infantile stage knows excitement
dims as the adults move in to make sure it lives up to its claims.

So, David Karp, for your sake, let’s hope you’ve cashed out
handsomely and stashed the money where it’s safe because
you’re about to be upbraided by Marissa Mayer as she holds
your feet to the fire.

Friday, May 17, 2013

Oh, the fuss: The Manners, where are they now?


Etiquette – sometimes referred to as “manners,” that type of behavior
parents once taught their kids so they wouldn’t act on their impulses – 
gives every appearance of being pushed aside, replaced by
insensitive and crass behavior in everything from cutting in line to
drivers flipping one another the bird.

And it isn’t limited to Massachusetts. 

I’ve seen it in many places – from the male chauvinist in Eugene,
Ore., with whom I had business dealings during my Tribune days,
to a racist working at a Boston Market in Lombard, Ill., and a gay
man in Washington, who refused to promote a colleague of mine
because she was African American.

What do they call that, WWB?  Working While Black.
I don’t know.

But it shows that jerks are everywhere.

It was telling moment, three years ago, when a lady working behind
the counter at a nearby Starbucks thanked me for saying please and
thank you as she attended to my order. 

“Thank you for being so considerate,” she said.

““You all do a great job here,” I said, caught off guard by her
comment.

“Not everyone thinks so,” she replied.

Two summers ago, my wife was flipped off as she drove out of the
parking lot of a local train line carrying commuters in and out of 
Boston.  I guess the other driver thought he was more
important. 

Never once did that happen in the 16 years we lived in a Chicago suburb.
But, of course, it’s possible it happens in other suburbs of the country’s
third largest city.

My wife and I spend a lot of time teaching our kids manners.  Everything
from how they dress and speak, including how they handle themselves
at the dinner table, has been reviewed hundreds, thousands, maybe
millions, of times.

Obviously, we haven’t perfected this – we only need to see how our sons,
10 and 9, behave at home to know how badly we’re doing – but we
work on their behavior nonetheless.

I’m always grateful when another adult reports that they’re well behaved,
but I also wonder whose kids they’re really talking about. 

If only we could get them to behave at home – without the constant
reminders!

Right now, we’re following the advice more experienced parents provided:
Eventually they’ll grow up; in the meantime, keep repeating the lessons. 

During recent trips to a nearby mall, where I was buying the boys new
clothes, I kept up the lessons, telling them – well, to be completely
truthful, it entailed gripping their shoulders so they’d stand still – to
allow the women to board and depart the elevator before they did. 

The reaction, on both occasions, was fascinating.

One woman noticed what I was doing and smiled while the other
appeared incredulous, giving the impression that I was wasting
time.  She shook her head and chuckled.  Fortunately neither boy
picked up on the reaction of the second woman.

And while this is hardly a scientific survey, these reactions might
provide a clue as to where we stand on manners today.  Half of
the country is grateful for them while the other half is so jaded
it’s not expecting them – hardly a good thing, I’d say.

Still, we should aim for civilized behavior.  It doesn’t take much
to remind ourselves we’re not the only ones on the planet.  Just
look up from your wireless, handheld device and you’ll see them.

About a year ago, when the boys were earning their Cub Scout
Citizenship Pin, they met the local police chief.  During the
meeting, I had one of the boys ask a question – What could
they do to be good citizens?

He gave a wonderful, simple answer that the kids still remember:
Open doors for others and always say please and thank you.  Be
considerate.  Be nice. 

Words to live by.

Friday, May 10, 2013

U.S. Newspaper Executives are no match for the Koch Brothers


Sometimes it’s hard – really hard! – to take newspapers seriously.

I do when they’re covering wars, politics, crime and most business
events. 

But when it comes to covering their own kind – the newspaper industry
– their collective heads are stuck in their collective … well … I won’t say. 

This is a family-friendly blog, and you get the idea.

If the Koch Brothers – apparently prospective buyers of Tribune’s
newspapers, which includes the Los Angeles Times – read yesterday’s
New York Times, I hope they’re not shaking in their boots. 

More than 1,000 people, said The Times, “pledged to cancel their
subscriptions” and “110,000 (people) … signed petitions opposing
the sale” of the L.A. Times to David and Charles Koch.

Seriously, take it from me, compared to other previous, controversial
owners who successfully owned newspapers where they weren’t
 greeted with a parade and a red carpet on day one of their ownership,
1,000 or so readers is nothing.

Even if that number is way off – let’s triple it to 3,000 just to be, dare
I use the word, conservative – it’s still hardly anything to fear.

The L.A. Times, according to one of the most recent audits, sells nearly
1 million copies on Sunday and over 650,000 copies Monday
through Friday. 

Do the math, using the daily circulation figure, and you realize
we’re talking way less than 1 percent of the newspaper’s
circulation if those 1,000 readers follow up their threats.

Take it to 3,000 subscribers and the potential circulation loss is
just under half of 1 percent – far from an end-of-the-world-as
-we-know-it nightmare.

Nearly 30 years ago, in January 1984, Rupert Murdoch – you
know, the Devil himself, the man who, when he’s not running
his global media empire, is working hard to kill off democracy
his critics say – purchased the Chicago Sun-Times from Marshall
Field, taking a circulation hit of about 30,000.

Now if 30,000 subscribers abandon the L.A. Times – just over
4.5 percent of the paper’s Monday through Friday consumer
sales – then, yes, there’s reason to worry. 

But if the past is prologue, those readers will soon realize no one
else in Southern California is publishing a newspaper like the
Los Angeles Times, and they’ll return to the fold.

How do I know this?  My dad, Bob Page, was Murdoch’s
publisher at the Sun-Times.

“It took time but it all (the reader losses) came back,” dad says.

I’m not here to promote either Murdoch or a Koch Brothers
purchase of Tribune’s papers.

What I’m here to say is that L.A. Times columnist Steve
Lopez and some of his fellow reporters have little reason
to be upset about the prospect of a Koch Brothers ownership.

Sure there’ll be some changes if they wind up owning the
paper, but what Steve and his colleagues need to keep in
mind is that if that turns out to be the case, they’ll work to
make the Los Angeles Times a successful business. 

Say what you will about them – and I’ll even go along with Mr.
Lopez and say some of the critiques of the Kochs are worrisome
– the Koch Brothers are capitalists first, political partisans second.

It doesn’t do them any good to spend about $1 billion on
Tribune’s papers only to see them close up a year or two later.

Now if Steve and his colleagues want to argue against the
Koch Brothers because they don’t know a thing about running
a newspaper, that’s a different story.  I'm in complete
agreement with that line of thinking.

But instead of doing the obvious, Steve and his colleagues are
focusing on the Kochs’ politics, reasoning the banks and the lenders
– now Tribune Company’s owners – could care less about.

This harsh reaction against the Koch Brothers – solely because of
their politics – is similar to the one that greeted Rupert Murdoch as
he worked to buy Dow Jones and The Wall Street Journal.

Many in the media business, including the Financial Times’ Martin
Wolf, said it would be the end of the Journal, a completely
ridiculous thought. 

I exchanged emails with Wolf about his views, suggesting he explain
why the Bancrofts should be allowed to go on as the owners of Dow
Jones.  Even Mr. Wolf – a helluva reporter on everything but the
newspaper industry – thought the Bancrofts hadn’t done a very
good job owning the company.

(And, yes, in case you’re wondering, I still have the email from
Mr. Wolf as well as the one I sent him.)

The great tragedy of the newspaper industry is that its biggest players
are nowhere to be seen or heard of as interested parties in Tribune’s
papers.  Gannett, The Washington Post, The New York Times
Company, even Newhouse and Cox are missing in action.

Instead, according to what’s reported, Tribune’s board of directors
will receive two bids for their papers, one from Rupert Murdoch,
and another from the Koch Brothers, maybe three or four if David
Geffen and Eli Broad step up with their offers.

In other words, besides Murdoch, an Australian by birth and a
U.S. citizen since the ‘80s, no other U.S. newspaper executive is
demonstrating enough confidence in their industry – let alone their
management skills – to bid on the country’s fourth largest newspaper,
the Los Angeles Times, and its sister Tribune papers.

That should be the issue making Steve Lopez’s skin crawl.