Post No. 186: Why We’re So Anxious in America, Debate the Role of Government, and Ministers Suggest God’s Pissed

© 2012, the Institute for Applied Common Sense

There are two things we do religiously, neither of which has anything to do with religion.

First, we watch Turner Classic Movies daily. By doing so, particularly those out of the 1920s through the 1950s, we re-visit many societal issues. (And you thought we were simply entertaining ourselves.)

Second, we read two books simultaneously. One is invariably a school textbook, circa 1960s or 1970s, and the other is a book which students were forced to read, and which might be termed classics from other eras, such as Don Quixote, Death of a Salesman, Wuthering Heights, Bulfinch’s Mythology, etc.

By engaging in these exercises, we’ve come to appreciate the meaning of the phrase, “The more things change, the more things stay the same.”

The textbook we've been reading here recently is Technology in Western Civilization. What we’ve taken away from our re-reading of this book is that the most powerful forces in society affecting individuals are forces over which individual citizens have the least control. Individuals respond to movements and do the best they can to survive.

The movie which caught our attention featured Barbara Stanwyck as a mail order bride. (Imagine that!) In The Purchase Price (1932), Stanwyck is on the run from her mobster boyfriend. She heads to North Dakota during the Depression to marry a struggling farmer. Months later, she visits a neighbor’s home to lend a helping hand, only to find the woman on the floor with a new born baby. Stanwyck takes charge of the situation.

The next couple of minutes dazzled us. Our former big city girl unleashes an arsenal of survival skills, and sets about wrapping up the delivery, cooking, sewing, milking, repairing, hammering, and doing anything necessary, followed by trekking home in a blinding snowstorm.

And then it hit us - why we’re so anxious, debate the role of government, and ministers daily suggest that we’ve pissed God off.

Except for our families, and perhaps fellow parishioners, we’re pretty much out here all alone. We don’t mean to suggest that government should do anything for its citizens other than defend our borders, and provide police, and maybe fire services. However, after reading Technology, we have a better appreciation of how government stepped in to assist people, long before the New Deal, after throngs left (by choice?), their rural, agrarian roots for major industrial cities during the 19th and 20th centuries.

Few of us can do the things that Barbara did. Instead, we “want to be like Mike.” We’ve reached a point where most of us are totally dependent on cash revenue from some source to pay others to do things for us. Also, we’re generally not that talented in basic survival skills (like sucking rattlesnake venom out of a wound), although we might be great computer people, electricians, ad execs, doctors, or truck drivers.

We all get compensated with cash for our services. According to Technology, currency was one of the great inventions of humankind. But it came with a price.

What we came to realize by the end of the movie is that we are far less capable, at least as individuals, of helping one another because we are not sure whether we can help ourselves. We’ve become dependent on employers, customers, clients, or worse yet, the government. Very few voluntarily chose the route of the 47%.

King Kong ain’t got nothin' on insecurity.

A half-way decent job in a manufacturing plant, enabling one to take care of one’s self and one’s family (and develop a little self-esteem along the way), was a big deal at one time. And then they shipped trinket making to cheaper real estate, and warned us [via Toffler’s Future Shock (1970), and The Third Wave (1980)] that we were transitioning to a service economy. But the provision of services and the assembly of information don’t amount to much if no one is willing to pay for those services.

As a wise man once said, “Something only has as much value as someone is willing to pay.” And connecting what one has to offer with someone willing to pay became far more difficult in the global economic expansion.

There’s little question that we are anxious, and even some are angry. And that debate about the extent government should be involved in our lives is a legitimate one, because there aren’t any other obvious options. And while it is true that families aren’t as large, connected, and based in the same field as they used to be, it’s not God doing it to us because he’s pissed off.

We’re doing it to ourselves. And only we individual citizens have the solutions.

And that’s only common sense.

Post No. 178a: Why the Presidential Debate Last Week was a Waste of Our Time

Why a waste of time? Because the candidates debated all around the issues that matter. We will not be able to solve problems in this country until we stop doing two things: (a) politicizing discussions simply to appeal to the emotional component of voters; and (b) suggesting that our problems can be addressed by simply implementing Policy A or Policy B.

We previously generated this piece under the title, "If Tin Whistles are Made of Tin, What are Credit Default Swaps Made Of?" We believe that the neglected issues discussed previously (at the height of our financial crisis) in this piece continue to be applicable to our current situation. It's time for us to get busy folks.


© 2009 and 2012, the Institute for Applied Common Sense

There’s a reason the Logistician likes the Laughingman. The Laughingman can reduce crap to its irreducible aroma.

We generally try to avoid taking sides in our discussions. It just doesn’t get us anywhere. No party or ideologue can legitimately lay claim to the concepts Common Sense and Personal Responsibility, both of which we try to weave into each original article posted.

Our goal is to get 95% of the heads nodding. Sometimes we get close. Others times, it’s a reach.

We recently sought topics from you, with the hope that we would all learn something new through the exchange, and take away something of value. Exasperated by all the barking about our economic situation, the Logistician posted the following comment on a number of blogs he frequents. His thoughts jived with the topic suggested by the Laughingman, and thus the title of this piece.

“We as a society, and as individuals, have to take responsibility for where we find ourselves today. By doing so, we might be able to turn this thing around.

“We have a tendency to forget the basic, big picture stuff, and then we complain when things deteriorate.

“Things on planet Earth are actually quite simple. (Gore Vidal once referred to us as the ‘United States of Amnesia.’ Perhaps we’re such a young nation, we haven’t fully learned to appreciate history.) Consider the following:

“1. Innovation and technology, leading to building and creating 'things,' determines EVERYTHING in a civilized society. (If you don't personally know a scientist or inventor in your neighborhood advancing society's interests, or some kid who WANTS TO DO SO, you have a long term problem.

“2. New technology, followed by the production of things using the technology, generates JOBS. The tax revenues derived from those technological enterprises determine what government ultimately can do. No innovation and no production of things - no tax revenues.

“3. The more hours that one works, the more one produces. (Up to a point, of course. We do not want people collapsing from exhaustion.) Exhaustion occurs way beyond 40, or even 60 hours a week for that matter. Take a break, and you run the risk of falling behind your competition.

“4. When a substantial segment of your society has to spend the vast majority of their time to cover the essentials, that segment isn’t particularly useful. It’s no different than the role played by mass agriculture in history. Food production has to be relegated to a few, so that the others can engage in the advancement of innovation and technology, and the trade and exchange of the products produced.

“5. The simplest way to reduce rising health care costs (and thus the health care component of our deficit)? Stop eating Kentucky Fried Chicken, smoking Camels, drinking Colt 45, and hit the treadmill. You'll see a dramatic improvement in health, and at a pretty low cost.

“6. Retirement (when workers still have talent and the ability to contribute) kills your society and generates other problems, especially when you shift tax revenue to people who sit on their asses for years. Capable people who work until the day they die are more productive members of society, physically and mentally. And, they feel that they have some value and stake in society.

“7. War is not a revenue generating enterprise. There are few positive ramifications. It’s a resource drain. It kills productive members of society (who could be inventing some stuff), and gets people pissed off at you.

“8. When you treat any segment of society unfairly, for whatever reason, they become less motivated, and less capable, to work in concert with you to pursue long-term societal interests. It makes more sense to have them voluntarily and emotionally 'buy into' your societal goals. They'll be more motivated .”

If one looks back in history, it’s clear that this is simply Common Sense.

A society which rationalizes its poor choices for too long a period of time is ultimately doomed. It might ride its success for a short period of time, but not for very long.

We, as a society, are ignoring all of the stuff that really matters. We're fooling ourselves while we engage in meaningless debates.

And wasting time.

It's like a boat sinking because of a leak, and the sailors are all arguing, while blowing tin whistles, about who’s responsible for the leak, and what mechanism to use to get the water out of the vessel.

If tin whistles are made of tin, what are credit default swap derivatives made of?

We’d like to know.

We also approached our current problems from a different perspective in another piece entitled, "Pigs Get Fat; Hogs Get Slaughtered." Address the issues raised in these two pieces, and we will be on our way back to fiscal and societal stability.

Post No. 177a: Re-Posting of "We Wonder Sometimes Why He Went to Brazil"

Prior to his departure to Brazil to commence his sabbatical, the Logistician generated this post on October 25, 2008, roughly four years ago. It outlined his concerns on the off chance that candidate Obama won the presidential election.

Looking back on it, we sometimes wonder whether he headed to Brazil for a reason other than getting some much needed rest and relaxation.

Check it out.

© 2008, 2010, and 2012 the Institute for Applied Common Sense

Earlier this evening, I had a conversation with a friend, Lawrence, about the prospect that Obama might actually pull this thing off. Lawrence, an Obama supporter, participated in a neighborhood campaign drive several weeks ago.

He turned and looked at me with a slight tinge of amazement, when I said that I hoped that Obama did not win this election.

You see, it’s not that I have anything of real substance against Obama. However, I just do not honestly think that America is ready for a black president. Plain and simple.

We’re not there yet.

Same goes for a woman president. Does that mean that I feel that the battle should not be fought? Of course not.

This has nothing to do with my personal views – just my thoughts watching the battle and the soldiers on both sides. Certain more optimistic or lofty-ideal commentators have spoken about how far our country has come, and the message which it will send to the world.

Let me provide an analogy which might better explain my concern.

There are many legal organizations, which advocate certain positions, and wait for years to pursue the appropriate “test case” to advance their positions. Timing is very important. The mood of the country, the facts of the case, the strength of the plaintiff, the financial resources available, and the judges on the bench, are all factors.

Such cases are not prosecuted carelessly, without considering the big picture / long term effects.

As much of an optimist as I portray myself, there are some practical issues about which I am very concerned.

First, I think that we are in for some very difficult economic times for several years to come.

Second, to the extent that any purported damage done by the current folks in power can be addressed, it will take a long time to perform any corrective action.

Third, this war thing is not going to be resolved as quickly and easily as we might argue, no matter which side is telling it.

Fourth, and perhaps most importantly, we don’t have the financial resources to do much of anything.

We all know, on a practical level, that when times are bad, fault and blame are placed on the executive in charge, and the party in control of Congress.

Imagine the discourse while Obama presides over all of these complications. I can tell you how soon the criticism of his policies is going to start.

I have a fear that should he win, within 2 years, the electorate will be calling for his head. And his opponents will undoubtedly demonize him and say, “I told you so.”

Economic hardship and pain have a way of quickly erasing all memory about the good times associated with the successful candidate’s election, and the good times that he anticipates down the road.

The patience of the electorate will get short. Real short.

And it is not just Obama about whom I am theoretically concerned. I would be just as concerned about the first woman to occupy the office. Or the first Hispanic.

Quite frankly, the first of any group, after years of conspicuous absence of similar individuals, should not be remembered for bad times. I’d almost have him lose this one and win the next one, when the economy is on the upswing. But then again, there may not be another time.

And so I told Lawrence, there is only so much that a president can do, and that the problems are global and deep rooted in nature. Lawrence looked at me and said, despite that, he wanted a president who inspired hope around the world. Is that a good enough reason to want to see Obama win?

You tell me.

P.S. In the end, Hillary may have been the victor.

© 2008, 2010, and 2012 the Institute for Applied Common Sense

Post No. 148a: Sometimes We Wonder Why He Went to Brazil

Prior to his departure to Brazil to commence his sabbatical, the Logistician generated this post on October 25, 2008, roughly two years ago. It outlined his concerns on the off chance that candidate Obama won the presidential election.

Looking back on it, we sometimes wonder whether he headed to Brazil for a reason other than getting some much needed rest and relaxation.

Check it out.

© 2008 and 2010, the Institute for Applied Common Sense

Earlier this evening, I had a conversation with a friend, Lawrence, about the prospect that Obama might actually pull this thing off. Lawrence, an Obama supporter, participated in a neighborhood campaign drive several weeks ago.

He turned and looked at me with a slight tinge of amazement, when I said that I hoped that Obama did not win this election.

You see, it’s not that I have anything of real substance against Obama. However, I just do not honestly think that America is ready for a black president. Plain and simple.

We’re not there yet.

Same goes for a woman president. Does that mean that I feel that the battle should not be fought? Of course not.

This has nothing to do with my personal views – just my thoughts watching the battle and the soldiers on both sides. Certain more optimistic or lofty-ideal commentators have spoken about how far our country has come, and the message which it will send to the world.

Let me provide an analogy which might better explain my concern.

There are many legal organizations, which advocate certain positions, and wait for years to pursue the appropriate “test case” to advance their positions. Timing is very important. The mood of the country, the facts of the case, the strength of the plaintiff, the financial resources available, and the judges on the bench, are all factors.

Such cases are not prosecuted carelessly, without considering the big picture / long term effects.

As much of an optimist as I portray myself, there are some practical issues about which I am very concerned.

First, I think that we are in for some very difficult economic times for several years to come.

Second, to the extent that any purported damage done by the current folks in power can be addressed, it will take a long time to perform any corrective action.

Third, this war thing is not going to be resolved as quickly and easily as we might argue, no matter which side is telling it.

Fourth, and perhaps most importantly, we don’t have the financial resources to do much of anything.

We all know, on a practical level, that when times are bad, fault and blame are placed on the executive in charge, and the party in control of Congress.

Imagine the discourse while Obama presides over all of these complications. I can tell you how soon the criticism of his policies is going to start.

I have a fear that should he win, within 2 years, the electorate will be calling for his head. And his opponents will undoubtedly demonize him and say, “I told you so.”

Economic hardship and pain have a way of quickly erasing all memory about the good times associated with the successful candidate’s election, and the good times that he anticipates down the road.

The patience of the electorate will get short. Real short.

And it is not just Obama about whom I am theoretically concerned. I would be just as concerned about the first woman to occupy the office. Or the first Hispanic.

Quite frankly, the first of any group, after years of conspicuous absence of similar individuals, should not be remembered for bad times. I’d almost have him lose this one and win the next one, when the economy is on the upswing. But then again, there may not be another time.

And so I told Lawrence, there is only so much that a president can do, and that the problems are global and deep rooted in nature. Lawrence looked at me and said, despite that, he wanted a president who inspired hope around the world. Is that a good enough reason to want to see Obama win?

You tell me.

P.S. In the end, Hillary may have been the victor.

© 2008, the Institute for Applied Common Sense

Post No. 147: This Above All: To Thine Own Self Be True

We recently read an article about how President Obama became so unpopular in the short time since his election.

The Senior Fellow of the Institute, Laughingman, operates a couple of blogs. One focuses on marketing and advertising issues. We issued this challenge to his readers:

“What would ad professionals do to assist the President to improve his image / approval rating just before mid-term elections, considering he really can not do much about the economy?”

One of the participants responded with the following, which we decided to share.

© 2010, the Institute for Applied Common Sense

Simply put, President Obama has been poorly served by his political advisers. Some heads should roll, including that belonging to his Chief of Staff.

When newly elected President Clinton presented his first spending proposals, his economic advisers told him they were unaffordable, and that Wall Street would not put up with them.

This led to Clinton's famous lament, "Are you telling me that the future of my presidency is in the hands of a bunch of bond traders?"

Rahm Emmanuel's advice on the original melt down in Detroit is reported in Steve Rattner's book as, "[Muck] the UAW."

Considering the history of the Clinton administration's conflicts with Republicans in Congress, this was a strange and veracity-challenged approach to begin with. Considering that President Obama had represented himself as an individual capable of building bi-partisan coalitions with the opposition, his selection of Emmanuel boggles the mind.

From the beginning of the Clinton administration to the end of the Bush era, the share of national income trousered by the top 1% of earners increased from 9% to 28%.

To prevent a self-inflicted melt down of our banks, we are
lending the banks our money at less than 1%, and allowing them to lend it back to us at up to 15%, when they feel the urge to lend to us, if at all.

Housing prices, the engine behind the last recovery, are down by 30%, and are likely to fall even further while wages continue to fall, as corporations take advantage of a 9.5% unemployment rate, and a 16%+ underemployment rate.

In the mean time, CEO compensation for the 50% of companies which have dismissed the most workers has increased by better than 40%.

With two months left until the next election, and the President's approval numbers sinking faster than the Titanic (and about to explode a la Hindenburg), what is the best strategy to reverse the impending?

Simply let Obama be Obama.

And thus the title of this piece, which reflects the ultimate in personal responsibility.

A couple of years ago, the majority of voters elected a newcomer with some undefined, intangible quality which led them to say, “He’s our guy.”

It is his responsibility to lead using that same intangible which got him elected.

There is no way to change the opinions, however flaky and factless, of Rush Limbaugh's audience, or Glenn Beck’s parishioners. In this polarized society, the only path to Democrat survival is to get the Democrat faithful up off their asses and into voting booths.

Trying to defuse all of the disinformation floating around out there just
plays into the hands of the opposition, and the nation will be the loser in the long term.

On the announcement of the (equally ridiculed by Wall Street) $5/day wage,
Henry Ford explained he was trying to build a mass market product. "If my workers can't buy them, who will?"

That is not exactly the attitude "[Muck] the UAW" conveys.

Expanding Medicare and Medicaid to ensure that our citizens are protected
from health-borne economic disaster is not an extravagance - it is arguably part of the “unalienable right…” to the “pursuit of happiness.”

Last year, Humana, one of the nation’s largest health care providers, dismissed 700 health care professionals and replaced them with newly-hired accountants....

Can you spell "gaming the system?"

Our economy will continue to suffer until we find a way to rebuild consumer confidence which translates into buying power, which represents 70% of our GDP, and that’s not going to take place prior to the elections.

Giving members of Congress (the only class of criminals native to the
United States of America) something to be proud of may be beyond the powers of any president, but giving the voters a choice they can be proud of is part and
parcel of the president's Bully Pulpit.

At least that’s what I would do.

But in the next election, I’d rather be working for the Republicans. At least I would have a better chance of getting paid....

Post No. 145: What’s Going On Over There at Wal-Mart?

© 2010, the Institute for Applied Common Sense

The Logistician’s 89 yr old Father has an operational pearl of wisdom – if one wants to determine what is going on in the economy, one need simply check the newspapers' classified ads.

Being a New Age guy, the Logistician has modified this somewhat, and advises all to check out their local Wal-Mart…classified ads being one of the many sacrifices made to fuel the new economy.

Some years ago, all of the major California grocery store chains were up in arms following Wal-Mart’s announcement that it would start selling groceries (using non-union workers). (Based on the corporate response, one would have thought that an invasion of illegal aliens was to accompany that move.)

And then there was the effort by Wal-Mart a few years later to open a store in Inglewood (near LAX), which was opposed by those with money and jobs, and supported by those without. Despite being put before the citizens in an actual vote, the poor folks lost.

Neither the Logistician nor the Laughingman saw (or visited for that matter) a Wal-Mart in their 40 plus combined years in Southern California (since the cost of the real estate dictates much in life).

On the other hand, Wal-Marts abound in the southeastern region of our country. In fact, there are 4 of them in the immediate vicinity of the Institute, despite the city being home to only 230,000 citizens (while the metropolitan area has roughly 750,000).

Hints of changes in the economy first appeared last year when the 8 self-service automated checkout lines per store were shut down, and customers were forced to proceed to the 4 human checkout lines open (out of the 16 available).

Shortly after Thanksgiving, there was a marked decrease in parking lot traffic. And just days before Christmas, 2 of the local Wal-Marts announced that they would close at midnight.

When advised of these developments, many suggested that the store hours changes did not apply to “Super Centers.” But during an early morning visit to a Super Center in February of this year, patrons found not only that the Murray’s USA Gas was closed, but that the parking lot of the adjacent Wal-Mart was empty. The store was closed.

In April, the Logistician, being the cheapskate that he is and only having 50 cents to his name, proceeded to his trusty Sam’s Choice soda machine in the foyer of the largest Super Center in the area, to get Sam’s 40 cent version of Mountain Dew. Much to his surprise, he could not locate his machine. In fact, there were only Coca-Cola products, all costing $1.25 per can.

Not believing that Sam would abuse his customers in this manner, he turned to a clean-cut, neatly dressed, gregarious Wal-Mart greeter who was standing in the foyer, and blurted out, “I can’t believe that Wal-Mart no longer sells it own sodas and has replaced it with Coke products.”

This generated no response whatsoever on the part of the upbeat, smiling greeter (nor the CEO upon later contact). The Logistician again expressed his disbelief, and when it dawned on him that the greeter had no appreciation of the issue, he asked, “Do you understand what I’m talking about?”

The greeter very politely responded in broken English, “Excuse me, but I’m new here.” Suspecting that the greeter was of European descent, the Logistician tried to chat him up in French, Spanish, and then Portuguese, all to no avail.

The greeter then said that he was from Bulgaria and spoke a Slavic tongue.

After a lengthy discussion about the history of Bulgaria and whether it was a member of the former U.S.S.R, the conversation shifted.

“I ‘ve been in US for 6 weeks.” The Logistician then asked how long he had worked for Wal-Mart, to which the greeter replied, “I’ve been working for Wal-Mart for 6 weeks.”

Thinking that he was perhaps here on a tourist visa, the Logistician kept probing. Our Bulgarian friend had been “lucky,” as he termed it, to acquire a green card, because he had relatives in the area. This was the first and only city in which he had lived since his arrival.

The simple fact of the matter is that while Wal-Mart may be the low priced employer in any given market, it is far from the low priced goods supplier. Wal-Mart’s computer system is second only to that of the United States Census Bureau, and all of that computing power is not dedicated to finding the lowest prices possible, but the highest prices the chain can charge before customers begin to shop elsewhere…and the same goes for quality of service.

Three weeks later, we chatted our greeter up again, now with two whole months of US residence and employment under his belt, during another visit. (You’re going to love what he had to say about Americans and the quality of life here, to be flushed out in our next post.)

All in all, it looks like Dad was pretty spot on….

We also imagine that it’s a good thing that this Wal-Mart is not located in Arizona.

Post No. 143a: Re-Posting of Post No. 111: Been There; Done That

We first posted this piece in April of 2009. In light of the continuing debate about what should be done to restore the United States to its previous level of prominence, and extricate us from the current economic malaise, we are re-visiting some of our thoughts made at that time.

© 2009, the Institute for Applied Common Sense

We frequently suggest that in tackling problems, we examine history, starting with a minimum of 5,000 years, and as far back as 13,000.

However, we’ve come to the conclusion that history alone may not always be able to help us out of jams.

Alan Greenspan recently lamented that those principles he relied on for 40 years no longer apply.

An historian once noted that we should always proceed with caution when we think that the policies of the past can be reapplied, and will generate similar results.

We might do well to consult physics, and better understand the laws of static and dynamic forces. (These are older than humankind and history.)

In order to assess or address anything within a dynamic system, one must freeze or suspend all movement or change, of as many variables as possible, or otherwise isolate the component at issue.

We also know that slight tweaks (no, not tweets) of a variable can result in dramatically different results.

Logic dictates that the larger and more complex the system, the more difficult it is to manage or affect any part of it.

As comforting as it may be psychologically, to resort to playing marbles and pick-up-sticks, it is of questionable value to return to many practices of the past.

Imagine trying to reconstruct that romance which you had with that guy or gal back in school (altered state of consciousness or not), and hope that those old moves lead to the same results.

As a nation, we can never re-create the circumstances extant when prior practices and policies were implemented and applied.

The world may have changed every year back then, but it now changes every nanosecond. We need to recognize this, and conduct ourselves accordingly.

It’s actually lazy and simplistic to merely repeat the practices of the past, even if they were successful. It requires far more energy, commitment, focus, and innovation to craft appropriate approaches to new conditions, everyday.

Sitting on the sidelines and simply watching changes occur without responding also may not be the best tactic.

To suggest that our enemies or competitors have been sitting still, or that the conditions in our country have been in suspension, is just plain science fiction.

For years, Corporate America used large, 100 year old silk-stocking firms to perform its outside legal work. The Logistician and his partners sought that same work, somewhat successfully, by offering a lower rate. They were smaller, more nimble, had lower overheard, and more importantly, hungrier.

Yet, many corporations were reluctant to make such a change. If things went awry, someone would undoubtedly question why the referring counsel did something out of the ordinary, and did not stick with the tried and tested firms.

Hollywood’s like that. It’s far easier to explain why “Men in Black 12” did not generate record box office numbers, than a new concept.

But consider this.

If you‘re surprised about a development over a span of 30 years, like the demise of our educational and industrial systems here in the U.S., you probably were asleep at the switch, and not paying close attention to changes on an annual, much less a monthly, basis.

We all have a tendency to go through repetitive motions. They’re safe, familiar, less subject to scrutiny, and require less effort.

UPS had a marketing campaign which referred to “moving at the speed of business.” Hong Kong is a 24 hour business city. Imagine what happens to others when their business communities are asleep.

It’s the nature of competition, and the nature of change.

There’s been much noise about returning to the policies of Clinton, or Reagan, or Kennedy, or FDR. Quite frankly, returning to those dated tactics, no matter which side of the ideological line they may fall, may not be particularly helpful.

Those circumstances no longer exist, and will never exist again. And that doesn’t take into consideration the efforts to revise history.

We can’t duplicate the economic variables. We certainly can not re-create the psychological and social variables.

Going forward, we need to craft new procedures, new principles, new tactics. Ones that fit our current conditions, which have never existed before.

So to all of our politicians and policy makers out there, please detach yourselves from your ideological goals and preferences, and repeating that mantra about what you think worked in the past.

Try to figure out what’s most likely to work, TODAY, going forward, based on current conditions, and those we anticipate.

The world is far flatter than we once thought.

Post No. 122a: Re-Posting of Post No. 90: Making Use of the Current Financial Mess

We frequently re-visit earlier posts to determine their continuing applicability. In February of this year, we generated a piece entitled "Making Use of the Current Financial Mess."

Since we continue to be in an economic "______ession" of some type, we thought that we would re-visit our earlier thoughts, and see if any of your thoughts have changed in the interim.


© 2009, the Institute for Applied Common Sense

Mark Twain observed that if a cat sits on a hot stove, she will never do it again. Unfortunately, she'll probably never sit on a cold stove either.

Everyone has their favorite villain for the current economic collapse. The Logistician sent me a list of 10 ways in which he felt consumers were responsible.

I told him that I did not buy into his premise, but in thinking about it further, I realized that if we only point the finger at the fat cats, we will have learned little. We all bear some responsibility.

We are behaving much like Mr. Twain’s cat. Despite our efforts to revive our financial system, we have little to show for it… yet. We definitely can’t sit at the starting line waiting for the next guy to say, “Go.”

We simply need to use some Common Sense, on which the left and right should be able to agree.

According to the Scientific Method, bad ideas and experiments that don’t work are as valuable as those that do, provided we learn from the experience, and use that knowledge productively.

So, with 2/3rds of our economic well-being based on our own behavior, we would like to suggest a few topics for discussion, the results of which may assist us in finding our way out of this financial wilderness.

1. If a deal sounds too good to be true, it probably is.

You don’t need a Ph.D. in economics to realize that markets don’t always go up. The observation that a few people are making great sacks of money, and violating the rules of Common Sense, does not relieve us of the obligation of doing our own home work.

If you can’t make the numbers work within your current income, don’t bet on massive increases in the value of your investment to bail you out.

You have a better chance in Vegas than in a financial commodity you do not understand. (And the truth be told, few of us really understand them.)

2. Don’t bet your home on things you don’t need.

Contrary to the Logistician’s mantra, there is nothing wrong with wanting a better, more luxurious life, but not at twenty percent interest. Here there are demons…like bankruptcy…and acid rain falling on your childrens' heads.

Save the money 1st; then buy the Lexus. It’s only Common Sense.

3. Ignore herd instinct.

When everybody agrees on the direction of a market, guess what…?

4. Be careful when building and buying things which are more than you need.

Advertising not withstanding, buying an Escalade won’t make you an NBA star. There is a reason why the Toyota Camry and the Honda Accord are the 2 best selling cars in the country.

5. Particularly avoid using credit or going into debt to build or buy things which are more than you need.

We went into debt, both individually and collectively, based on the assumption that the party would never stop.

Pick up any book on history…it always does. And, you don’t want to be the guy playing musical chairs when….

6. Remember that gluttony and greed are 2 of the 7 deadly sins.

Really want to make a 20% return on your income? Pay off your credit cards.

7. Carefully weigh the impact of retirement on an individual and societal level.

The Logistician and I differ on this point. The Logistician feels we got lazy and retired too early. My take is that we took the money and ignored our inherent desire for a more worthwhile job… and after 30 years we couldn’t wait to get out.

With our most experienced workers, although still productive, leaving the workforce early, all of this experience went to waste… and it is experience we can ill afford to waste.

8. Avoid being seduced by the short-term Sirens.

There was a time when we bought things to last. Next time you are in the park, look at the number of people taking pictures with manual focus SLR cameras.

This desire to last drove a subsequent demand for quality… producing a pride of workmanship that represents the essence of “Quality of Life.”

9. Don’t leave the education of your kids to the entertainment industry.

Not wanting to engage them, we abdicated our responsibility to the likes of Nintendo, Disney, and MTV, as long as they didn’t interfere with our pursuit of the “good life.”

If you don’t want children, don’t have them. You can not experience the sense of wonder children project, as they learn about the world via remote control.

You have to be there… and evolution suggests that this is one of the few primal pleasures we have inherited undiminished.

10. Lend a helping hand.

If you know someone in need of a job, through no fault of his own, ask around. Do what you can to help him get re-employed.

Want to raise the “quality of your life,” watch the face of a man or woman you have helped put back to work. Government can’t do that.

You see, we do most of the spending. No income, no spending. No jobs, no income.

Is there anything on this list which defies Common Sense?

After all, we should be smarter than Mr. Twain’s cat.

© 2009, by the Laughingman for the Institute for Applied Common Sense

Post No. 119: “Where Have You Gone Joe DiMaggio?”

© 2009, the Institute for Applied Common Sense

In the world of social commentary, there are “observers” and “critics.”

People often ask how we approach preparation of articles reflecting our observations.

Short answer? We watch C-Span, the History Channel, Tom and Jerry, and Turner Classic Movies all weekend. During that time, we absorb roughly 50 different points of view on various subjects, and give Tom’s observations more weight.

We consider them further during the week, while watching the news and Congressional hearings, in an effort to identify themes or “cross-over” principles, which arguably apply to divergent subjects. It could be sports, science, religion, and music. Like Wile E. Coyote, we keep chasing the Road Runner, seeking something.

(We also walk through book stores each week and pick up any and everything.)

So many today claim to know, with certainty, how we got here economically, why and how this or that President was flawed, and why we will fail as a nation if we do X. This banter drove the Logistician to Brazil for his sabbatical to study with the heads of the samba schools.

Before he departed, while eating his standard meal of sardines, beef tongue, and horseradish on pumpernickel, he asked, “How are these people able to come up with evidence which only supports their position?” He abhorred “goal determinant analysis.”

He then asked, “Why didn’t these people step forward to take control before things imploded?”

We seem to be dissatisfied with virtually every aspect of our lives, along with the people running most of our institutions, not to mention our significant others).

There’s no shortage of “incompetents” according to the critics: politicians, doctors, commercial banks, insurance companies, the Federal Reserve, drug companies, pedophile priests and Boy Scout leaders, automobile companies, oil companies, current and past Presidents, the housing and construction industries, the poor, the rich, CEOS, lawyers, investment bankers, immigrants (whether illegal or not), unions, doped up athletes, Hollywood, and of course, Wal-Mart.

It’s a Herculean task to find anyone or anything held in high regard, and about which at least 70% of Americans view positively. We’d settle for 60%.

Apart from all of the new input we consume, we constantly review earlier posts, to consider their continuing applicability. In Post No. 85 in February of this year, amid rising concerns about the global economy, we generated, Why We Suspect, To Our Dismay, That “Whatever” Our Leaders Devise Will Not Work.

In Post No. 27 in July 2009, we wrote about The Inability of our Leaders to Please (or Lead) Us.

Finally, in May 2008, in Post No. 9, Recognizing the Potential of the Innovative Thought Process (We are a Better Country Than We Currently Think of Ourselves), we noted that a recent poll revealed that 81% of Americans felt the country was heading in the wrong direction.

And that was before the recession was officially announced, and blame assessed.

And before Obama was even nominated.

The sentiment crossed ideological lines. Amazingly, it was something about which the majority could agree.

Thomas Woods was recently on C-Span. He is the author of Meltdown: A Free-Market Look at Why the Stock Market Collapsed, the Economy Tanked, and Government Bailouts Will Make Things Worse.

We’ve now watched his presentation 4 times. He had so little positive to say about much of anything over the past 30 years, that it made us stop and think about the views of other commentators over the past 18 months.

Then we asked, like the Logistician, “Why aren’t these people leading us?”

Of course, hindsight is always 20/20, and some are simply Monday morning quarterbacks.

But shouldn’t we be concerned that despite the personal successes of many of our leaders and captains of industry, our country as a whole appears to be in such a precarious state?

Does our current political climate or system discourage the true best and brightest from running for public office, and seeking the helm of our major industries?

Does the public scrutiny of our leaders serve as a disincentive for the “truly qualified” to share their wisdom and insight with us for the public benefit?

Maybe a nation really does deserve the leaders that it gets.

And here the rest of us stand, growling, and fighting like Dobermans for scraps of raw meat.

During our preparation of this piece, the words of Simon and Garfunkel kept swirling in our heads:

“Where Have You Gone Joe DiMaggio? A Nation Turns Its Lonely Eyes to You, Woo, Woo, Woo.”

You critics, who have figured it all out, and find others to be incompetent, please step forward and participate in fixing this mess.

We need you.

Post No. 100: If Tin Whistles are Made of Tin, What are Credit Default Swap Derivatives Made Of?

© 2009, the Institute for Applied Common Sense

There’s a reason the Logistician likes the Laughingman. He can reduce crap to its irreducible essence.

We try to avoid taking sides in our discussions. It just doesn’t get us anywhere. No party or ideologue can legitimately lay claim to the concepts Common Sense and Personal Responsibility. We try our best to weave the concepts into each original article posted.

Our goal is to get 95% of the heads nodding. Sometimes we get close. Others times, it’s a reach.

We recently sought topics from you, with the hope that we would all learn something new through the exchange, and take away something of value. Exasperated by all the barking about our economic situation, the Logistician posted the following comment on a number of blogs he frequents. His thoughts jived with the topic suggested by the Laughingman, and thus the title of this piece.

“We as a society have to take responsibility for where we find ourselves today. By doing so, we might be able to turn this thing around.

“We have a tendency to forget the basic, big picture stuff, and complain when things deteriorate.

“Things on planet Earth are actually quite simple. (Gore Vidal once referred to us as the ‘United States of Amnesia.’ Perhaps we’re such a young nation, we haven’t fully learned to appreciate history.) Consider the following:

“1. Innovation and technology, leading to building and creating 'things,' determines EVERYTHING in a civilized society. (If you don't personally know a scientist or inventor in your neighborhood advancing society's interests, or some kid who WANTS TO DO SO, you have a long term problem.

“2. New technology, followed by the production of things using the technology, generates JOBS. The tax revenues derived from those technological enterprises determine what government ultimately can do. No innovation and no production of things - no tax revenues.

“3. The more hours that one works, the more one produces. (Up to a point, of course. We do not want people collapsing from exhaustion.) Exhaustion occurs way beyond 40, or even 60 hours a week for that matter. Take a break, and you run the risk of falling behind your competition.

“4. When the vast majority of a substantial segment of your society's time is spent trying to cover the essentials, that segment isn’t particularly useful. It’s no different than the role played by mass agriculture in history. Food production has to be relegated to a few, so that the others can engage in the advancement of innovation and technology, and the trade and exchange of the products produced.

“5. The simplest way to reduce rising health care costs? Stop eating Kentucky Fried Chicken, smoking Camels, drinking Colt 45, and hit the treadmill. You'll see a dramatic improvement in health, and at a pretty low cost.

“6. Retirement (when workers still have talent and the ability to contribute) kills your society and generates other problems, especially when you shift tax revenue to people who sit on their asses for years. Capable people who work until the day they die are more productive members of society, physically and mentally. And, they feel that they have some value in society.

“7. War is not a revenue generating enterprise. There are few positive ramifications. It’s a resource drain. It kills productive members of society (who could be inventing some stuff), and gets people pissed off at you.

“8. When you treat any segment of society unfairly, for whatever reason, they become less motivated, and less capable, to work in concert with you to pursue long-term societal interests. It makes more sense to have them voluntarily and emotionally 'buy into' your societal goals. They'll be more motivated .”

If one looks back in history, it’s clear that this is simply Common Sense.

A society which rationalizes its poor choices for too long a period of time is ultimately doomed. It might ride its success for a short period of time, but not for very long.

We, as a society, are ignoring all of the stuff that really matters. We're fooling ourselves while we engage in meaningless debates.

And wasting time.

It's like a boat sinking because of a leak, and the sailors are all arguing, while blowing tin whistles, about who’s responsible for the leak, and what mechanism to use to get the water out of the vessel.

If tin whistles are made of tin, what are credit default swap derivatives made of?

We’d like to know.

Post No. 90a: Articles of Interest: When Consumers Cut Back: A Lesson from Japan

Much has been made recently about the contraction of credit and the reluctance of consumers to part with their hard earned dollars because of their uncertainty about our economic future. The following article appeared in the February 22, 2009 electronic edition of the New York Times. It is most definitely food for thought. To view it, you need simply click here.


Since the original posting of this article, we came across another article expressing similar concerns about the reluctance on the part of the consumer to spend, albeit with respect to the automotive industry. To review Dave Leggett's article on his blog, Just - Auto, click here.