The Climategate Lesson Refusal

Global warming research has been corrupted by news of a number of newly revealed scandals. A major disclosure of what occurred at the University of East Anglia in the U.K. and the U. N. research debacle are cases in point.

Those who always disputed global warming contentions are finally, though only slowly, being given voice not available to them in the past.

Yet, there is still continued talk of climate-warming change. It has been a religious-like habit that many have invested too much of their careers in, for them to suddenly recant as having been a hoax.

This is not the same as the world need for clean air and water, but the old global warming mantra has truly become a secular religion to many on the left.

In fact, the SEC, influenced by the Obama administration, wants corporations to report how they are handling the problems of global warming. As if the hoax were never perpetrated.

A Plan for Real Health Insurance Change

A list of health insurance changes that will really make it cheaper to buy health insurance, while making health care more efficient. Remember, effective insurance is as important as mere coverage.

One: Do away with wasteful first dollar insurance. Too much costly paperwork is involved for small claims everyone can afford to pay. Have deductibles for small amounts but be sure to cover catastrophic losses.

Two: Make insurance portable from job to job and state to state. That is worthwhile change most folks need right away.

Three: Make coverage available to all, but not just when someone gets sick. That’s like buying fire insurance only when your house burns down.

Four: Have interstate insurance competition. You can be sure that will reduce cost.

Five: Eliminate junk law suits with tort reform, preferably with arbitration panels that eliminate the huge lawyer’s take. And wipe out health care fraud.

Buying a Franchise

Why should you buy a franchise? The main purpose in buying is to get a valued company name and expertise. But you can probably duplicate the same entity you seek and acquire that expertise at no franchising cost on your own.

I have discussed this many times in the past. Buying a franchise may make sense only if you get a highly recognized brand name and you get special management expertise.

You must realize that the usual upfront fees and the royalty you pay on sales, that cover whatever management training and materials received, will probably represent about half your net earnings.

Many franchisees eventually form groups with other franchisees, to sue over contract terms because they are unhappy with their arrangement.

So, think clearly before you make a franchising decision.

Management Risks

There are generally flaws in four types of serious management areas in finding and considering business risks.

One: Knowing what the possible risks actually are.

Two: The size, types and pitfalls of accounts receivable collections.

Three: Salary excesses, their fringe costs and how they can be controlled.

Four: Existing and potential production problems and where they can be regulated .

What compounds these problems in many organizations, large or small, is the inability to adequately recognize them early on. And to monitor them, while managing their potential risks on an ongoing basis.

“Too Big to Fail” Implies Another Problem

We hear the term “too big to fail” a lot in connection with banks these days. It brings up a thought.

If a business or bank is too big to fail, according to a government regulator’s premise, might it not be too big to manage in the first place? Perhaps the emphasis on size is misdirected when related only to the need for government oversight.

When corporate entities get that enormous, there usually are hidden management pitfalls that are almost impossible to recognize and avoid. Those resultant problems may involve more than conventional governmental regulation.

Example: Many commercial banks also are in the investment banking business. We know that. But there are aspects of investment banking that can veer off in varying directions, which I have always felt go beyond the normal skills of everyday managerial skills at those institutions. Those specialized skills are business-oriented and are wanting.

Problems encountered have little to do with the need for more regulation. In fact, the more regulation imposed, the more likely, management will fail.

Liberals Try Beating the System

It is amazing how liberals or those who profess to be liberals, love to beat the “system.” But by doing so, they generally attempt to get at or impugn “big business” or “profiteers” or anyone who has more money than they.

But that often means they can stick it to anyone who they have taken money from. I am speaking about sources who provide jobs to employ them. Even government jobs must come from taxes paid by the “rich.”

Sometimes their sense of entitlement will get out of hand. Examples of liberal entitlement misdirection:

Ads on credit card reduction where banks are abused for wanting to collect “YOUR money they lent you.”

Or where you have the sole right to change the terms of your mortgage from lenders, obligations that you never could afford and never should have taken.

Painful Productivity Gains

Many economic changes occur without public knowledge or fanfare. Yet, they affect the personal affairs of all of us.

I often suggest the public ought to get some basic Economics 101 education, so that they may more readily absorb information that has so much to do with their everyday lives.

Example: Positive changes in output per hour by industry often is made out, correctly, to be good during economic recessions; it helps recovery. Companies cut staff to do this to keep their labor costs low. It is happening in this deep recession. One of the few positive aspects.

It is painful, of course. Lost jobs produce the statistic. However, that is true only in private industry. The public sector, particularly those jobs which are unionized, are being added to, with the aid of past federal stimulus funds. And they are budget-busting.