Cynical Streak

Shut up and grin, Kenny Boy!

April 28th, 2006

Ex-Enron Chairman Ken Lay has largely dodged the firestorm of critisicm in the wake of the scandel thanks to his dopey, avuncular charms. But apparently he’s baring his teeth on the witness stand during his trial for fraud and conspiracy.

Lay should take his cues from his Nintendo buddy George Bush, who wears stupidity and naivety like a coat of Teflon. During the 2004 Presidential debates, Bush was at his least endearing when he revealed flashes of anger.

As Arianna Huffington notes, the media doesn’t even seem to pounding the table on the connection between the White House, Enron and gas prices.

That’s primarily because you can’t get Wolf Blitzer interested in a story unless there’s a decapitated body involved.

Don’t expect Tony Snow to mix Bush, energy and Lay in the same sentence. In the U.S., fat, drunk and stupid is a viable path to power!

Just say no to oil tax breaks.

April 27th, 2006

With record oil profits coinciding with muderously high gas prices, even Republicans are abandoning support of tax breaks for oil companies. As we approach election season, this switch probably has more to do with voter sentiment than concern about the working man, but the public should take advantage nevertheless.

Yanking away the $14.5 billion in breaks recently lavished on oil producers probably won’t dent their net margins much and it certainly won’t help reduce gas prices. However, critics of corporate welfare for big oil should seize the opportunity to raise awareness about the folly of
subsidizing such a profitable industry.

If voters make it clear to politicians that gratuitously padding oil profits may cost them their seats, voters have a rare opportunity to influence legislation.

Rally With Sally, my nelly

April 24th, 2006

The other morning, actress Sally Field was a guest on NBC’s Today show. She was not promoting a movie or program; rather, she was on to raise awareness about osteoperosis, with which she was recently diagnosed.

On the program, Field warns women never to miss a dose of their medication and she notes how easy it is to remember to take the “once-a-month” pill.

Anyone who has seen the heavy-rotation commercials for Boniva would recognize this script. Field regurgitated her talking points almost as well as an obsequious Republican, directing viewers to www.bonehealth.com. Field never mentioned the name of the drug or its maker, Roche
Therapeutics, which is presumably what exempted her and NBC from having to disclose her fee structure.

On the Rally With Sally web page, her profile effuses “Taking Boniva® (ibandronate sodium) helps me manage my osteoporosis so I can embrace this glorious third act of my life.”

Newswires have picked up the story about Field’s campaign, but an exhaustive search failed to uncover the economics of her deal.

The tv broadcast business model is rapidly changing. Most of us gleefully zip past commercials, oblivious that we’re consuming expensive
entertainmnet while short-changing its producers of their historic revenue source. The soap-opera model of the 50s is coming back, with product placement unapolagetically prominent in many programs. I strongly suspect that NBC gets a cut for its role in the promo, but they’re obviously under no obligation to reveal this.

I think pharmaceutical companies deserve healthy profits to encourage the massive investments they make in developing new drugs. However, consumers should be aware that drugs are being promoted under their noses without the requisite risks and warnings of traditional, regulated advertising.

Profit is good. Say it ’til you believe it.

April 13th, 2006

Google has come under criticism for cooperating with government censors in China as a condition for conducting business there. The newly introduced watered-down version of Google filters out search results for such search terms as “Tibet” and “democracy.” While unfortunate, the people of China are far better off with a censored Google than no Google at all.

It would be wonderful if censorship ceased to exist in China tomorrow; however, it is not Google’s responsibility to lobby the Chinese government to change its laws. Google’s first obligation is to the investors who fund its operations and not to the individuals living in oppressive regimes.

Further, I think it is likely that agitators for democracy will be inspired to close the gap between real Google and Google “lite”; Google’s presence itself may serve as a catalyst to this end. So while entry into a vast, lucrative market is justification enough for Google to adapt to China’s rules, the company’s critics should fault China’s Communist party for its censorship rather than Google.

Show us the upside-down flag, Lou.

April 10th, 2006

CNN’s Lou Dobbs made a big stink over the immigrant demonstrations, which originally featured many Mexican flags. This was clearly an error in propoganda paraphernalia and the protestors quickly switched to American flags. One group of demonstrators stretched out a huge American flag, with many people each grabbing an edge. A TV camera filmed the flag from behind the group, and Lou was quick to point out that the demonstrators were flying the flag “upside down.” He seemed to get some traction with this complaint, so he didn’t bother correcting himself, despite the absurdity of the observation. Below is another photo, highlighted on Dobbs’ web site, of protesters who are clearly not intentionally abusing the flag.

Just another example of CNN’s endless search for decapitated babies and other blatant ratings grabbers.

So, Bush was the leaker. Now what?

April 9th, 2006

Nothing. Nothing will happen to him. He won’t lose one nickel of political capital with the brainwashed religious toadies who support him. Sure, he won’t win over any Democrats, but that was never his intention anyway. As long as there are millions of faith-based voters, who by definition accept his word as gospel, Bush will suffer no consequences from exposing the identity of a CIA operative, risking her life and undermining national security. If Bush says it was in the interests of the American people, then by God, it must be!

And the best part for Bush is that Democrats can’t even point this out as long as secularists must be closeted. The epidemic of blind faith continues to spread…

Come to Mama Wal-Mart

April 5th, 2006

Wal-Mart announced a program to help small business remain competitive in towns where Wal-Mart opens a location. It’s a smart move for Wal-Mart, which is feeling the pinch of bad publicity for its aggressive practices through lower sales in some important markets. Wal-Mart plans to help small, local businesses find their competitive advantage, which Wal-Mart points out, includes superior customer service. The retailer also plans to promote its teeny competitors in its own stores to boost the local economy.

The program is both a win-win and a last resort for small businesses, which will become extinct if they try to compete with big-box discounters on price. Further, Wal-Mart’s markets will suffer if they put too many locals out of work, although Wal-Mart clearly has the upper hand. If the small businesses have the sense to take advantage, it may be their only hope for survival.

Wal-Mart knows that if it can get protesters hooked on its assistance, they will soon acquiesce and lose their drive to resist. But like it or not, there is no stopping the juggernaut of Wal-Mart, which will stamp out high prices, high wages and inefficient businesses everywhere it goes. Small businesses must adapt or get trampled.

Dear Tom,

April 5th, 2006

Oh, the irony!

What unfortunate timing to launch a cynical blog about politics on the very day that you resign from Congress.

While I doubt my blog, formidable though it is, had much to do with your resignation, I sure will miss the inspiration.

Still looking forward to your trial!

Love,

Catherine

Frequent Naps or la Mort!

April 5th, 2006

As investment capital flows ever more freely across borders, why would anyone open a plant in France?

I love Paris. It’s a wonderful place to vacation, lounge, sip wine in the afternoon, stroll. Thanks to the French protesters, employers will increasingly view France as a leisure destination rather than a compelling investment zone.

Thousands of French students are stomping along in their Nikes, texting each other on their mobile phones, protesting capitalism and the affront of having to work hard to retain their jobs. As a student of Mandarin, I can only imagine that their placards read “I Am Bored with Your Capital!” or “Frequent Naps or Death!” (French is such a 20th century language, who can be bothered to study it anymore?) They have succeeded in securing wall-to-wall coverage of their spectacle on infotainment peddler CNN and the front pages of newspapers worldwide. However, this achievement will cost them dearly over the long term, as unemployment will persist, capital will flow elsewhere, and the deficit will continue to swell under the burden of welfare.

France’s long history of nationalized and subsidized industries, combined with massive social programs, has enabled and nurtured an unattractive work ethic among all but the top tier of skilled workers. Cultural attitudes have inculcated a sense of entitlement into university graduates, who believe that mere graduation from school has earned them permanent jobs. Employers are very reluctant to hire incremental workers in France because of strict labor laws that guarantee lengthy contracts regardless of job performance. The controversial new law proposes to address the unemployment problem by easing restrictions on firing employees. If employers knew they could freely rid themselves of slackers, they would be far more willing to hire more workers. Similarly, the new emphasis on productivity would improve French economic efficiency – integral to global competitiveness. The industries that attract the most capital in France – technology, business services and manufacturing – are among the most vulnerable to competition from the cheap, highly skilled workers of India and China.

Given France’s staggering unemployment, as high as 23% for young people, capital should logically be flowing into the country to capitalize on an eager, available, educated labor pool. However, according to global consultancy A.T. Kearney, in 2003 France was the second largest exporter of foreign direct investment (FDI), which includes long-term investment such as manufacturing plants. This coincides with a dramatic decline in portfolio capital inflows, which includes short-term investments. A.T. Kearney ranked France 35th among the top 40 services locations worldwide in terms of cost, people skills and availability, and business environment. While French workers rank very highly in terms of productivity per hour, limited work weeks and strict labor protection laws stifle hiring practices. Capital flight combined with an unfavorable labor environment is a recipe for prolonged economic stagnation.

Prohibitively high corporate taxes versus other European countries serve as another impetus to shift capital toward nearby Eastern Europe, which has a far more flexible work force. French workers must demonstrate compelling productivity to compensate investors for France’s high-tax structure, rather than protest such expectations. France has already has to liberalize its capital controls under pressure from pervasive economic globalization. Capital is like water – it will always find the most efficient investment opportunity and will make no apologies for ditching a spoiled work force.

The French protesters should be very concerned about the global image they are cultivating through the anti-hard work stance they have struck. They claim they are trying to preserve their way of life – live more, work less. Their worldwide public display in defense of languor will guarantee that they will be the last generation to chant this mantra.

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