Post No. 146a: Article of Interest re Response to BP Oil Spill

Over the past several years, there has been much discussion regarding the role of government versus the role of the private sector in addressing societal issues and needs.

The Laughingman came across the following article from Garden and Gun Magazine, which details the efforts of one private sector entity to deal with the Gulf event.

Should the US leave the response effort entirely in the hands of the private sector, entirely in the hands of the government, a combination of the two, or even perhaps neither, thus leaving it to individual citizens to address as they see fit?

July 1, 2010

Garden and Gun Magazine

Goings On

THE PERFECT GULF RESCUE BOAT

No one understands the tragedy in the Gulf as well as fishermen. So it's no surprise two diehard anglers have made it their mission to make a difference - government red tape and BP be damned.

Mark Castlow, the owner of Dragonfly Boatworks in Vero Beach, Florida, and his colleague, Jimbo Meador, took one look at the crafts used to rescue oiled birds and knew that they would be of no use in the marshes and shallows of the Gulf Coast, precisely where many injured birds will go when in distress. So thanks to some financial backing from Jimmy Buffet, they halted their production line, sketched a resue boat on a napkin, and ....

To view the remainder of the article, click here.

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. 133c: TV Program of Interest: Common Sense Principles for Troubled Times

At 5:00 pm EDST today, Professor Robert Frank of Cornell University will discuss his book, The Economic Naturalist's Field Guide: Common Sense Principles for Troubled Times, on C-Span2 Book TV. Click here to see a synopsis of the program.

Mr. Frank is also a New York Times columnist, and will discuss what he believes are the most important economic principles, and the need to explode the worst economic myths.

During his discussion he discusses the conflict between individual logic and group logic, and ways to address that conflict. He also addresses how society might address behaviors which all humans recognize are bad for us, but we pursue anyway.

Post No. 122c: Thinking About Innovation and Business Models

We're always interested in different ways of viewing subjects.

To the right of our blog, in the light green column below our Shelfari bookshelf, appears what is referred to in the blogosphere as our “blogroll.” It is a list of blogs which we find to be of interest, and links to them are provided. One of the nifty aspects of New Media technology is that it provides the ability to exponentially expand one’s realm of contact. Folks can “stumble” on your content without you actually directing them toward it.

One of the more interesting blogs which we follow is that of J.P. Rangaswami. His blog, Confused of Calcutta, is about information. Rangaswami was born in Calcutta, and lived there for half of his life before immigrating to the United Kingdom in 1980.

Originally an economist and financial journalist, he now considers himself to be an “accidental technologist.” He deals in the ether where finance meets technology.

He recently generated a post about long-term business cycles and author Hugh MacLeod's upcoming book. It so piqued our interest, and made us think about issues currently being battered around about the global economy, that we thought that you might also find it to be of interest.

Check it out. Some of his references to other thinkers on the subject might prompt you, as it did us, to do some further reading about economic theory and business.

Nothing is ever quite is simple as it may first appear.

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. 111: Been There; Done That

© 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. 79: Rethinking the Role of Government (Part 2) – or the “Real” Definition of Liberalism

Previously in our Post No. 77, we provided you with excerpts of Nobel Economics Laureate Milton Friedman’s book published in 1962, “Capitalism and Freedom.” The following additional excerpts are taken from that work. We told you that you’d be surprised about the definition of “liberalism” addressed by Friedman. With all of the talk about stimulating the economy these days, we'd be interested in where you stand after reading this. (If you did not read Post No. 77, you should do so now before reading this one.) You should enjoy this.

“Government can never duplicate the variety and diversity of individual action. At any moment in time, by imposing uniform standards in housing, or nutrition, or clothing, government could undoubtedly improve the level of living of many individuals; by imposing uniform standards in schooling, road construction, or sanitation, central government could undoubtedly improve the level of performance in many local areas, and perhaps even on the average of all communities. But in the process, government would replace progress by stagnation, it would substitute uniform mediocrity for the variety essential for that experimentation which can bring tomorrow’s laggards above today’s mean.

“This book discusses some of these great issues. Its major theme is the role of competitive capitalism – the organization of the bulk of economic activity through private enterprise operating in a free market – as a system of economic freedom and a necessary condition for political freedom. Its minor theme is the role that government should play in a society dedicated to freedom and relying primarily on the market to organize economic activity.”

* * *

“It is extremely convenient to have a label for the political and economic viewpoint elaborated in this book. The rightful and proper label is liberalism. [Emphasis added.] Unfortunately, “As a supreme, if unintended compliment, the enemies of the system of private enterprise have thought it wise to appropriate its label, [footnote omitted]” so that liberalism has, in the United States, come to have a very different meaning than it did in the nineteenth century or does today over much of the Continent of Europe.

“As it developed in the late eighteenth and early nineteenth centuries, the intellectual movement that went under the name of liberalism emphasized freedom as the ultimate goal and the individual as the ultimate entity in the society. It supported laissez faire at home as a means of reducing the role of the state in economic affairs and thereby enlarging the role of the individual; it supported free trade abroad as a means of linking the nations of the world together peacefully and democratically. In political matters, it supported the development of representative government and of parliamentary institutions, reduction in the arbitrary power of the state, and protection of the civil freedoms of individuals.

“Beginning in the late nineteenth century, and especially after 1930 in the United States, the term liberalism came to be associated with a very different emphasis, particularly in economic policy. It came to be associated with a readiness to rely primarily on the state rather than on private voluntary arrangements to achieve objectives regarded as desirable. The catchwords became welfare and equality rather than freedom.

[Paragraph break added.] “The nineteenth-century liberal regarded an extension of freedom as the most effective way to promote welfare and equality; the twentieth-century liberal regards welfare and equality as either prerequisites of or alternatives to freedom. In the name of welfare and equality, the twentieth-century liberal has come to favor a revival of the very policies of state intervention and paternalism against which classical liberalism fought. In the very act of turning the clock back to seventeenth-century mercantilism, he is fond of castigating true liberals as reactionary!

“The change in the meaning attached to the term liberalism is more striking in economic matters than in political. The twentieth-century liberal, like the nineteenth-century liberal, favors parliamentary institutions, representative government, civil rights, and so on. Yet even in political matters, there is a notable difference.

[Paragraph break added.] “Jealous of liberty, and hence fearful of centralized power, whether in governmental or private hands, the nineteenth-century liberal favored political decentralization. Committed to action and confident of the beneficence of power so long as it is in the hands of a government ostensibly controlled by the electorate, the twentieth-century liberal favors centralized government. He will resolve any doubt about where power should be located in favor of the state instead of the city, of the federal government instead of the state, and of a world organization instead of a national government.

“Because of the corruption of the term liberalism, the views that formerly went under that name are now often labeled conservatism. But this is not a satisfactory alternative. The nineteenth-century liberal was a radical, both in the etymological sense of going to the root of the matter, and in the political sense of favoring major changes in social institutions. So too must be his modern heir.

[Paragraph break added.] “We do not wish to conserve the state interventions that have interfered so greatly with our freedom, though, of course, we do wish to conserve those that have promoted it [.] Moreover, in practice, the term conservatism has come to cover so wide a range of views, and views so incompatible with one another, that we shall no doubt see the growth of hyphenated designations, such as libertarian-conservative and aristocratic-conservative.

“Partly because of my reluctance to surrender the term to proponents of measures that would destroy liberty, partly because I cannot find a better alternative, I shall resolve these difficulties by using the word liberalism in its original sense-as the doctrines pertaining to a free man.”