Category Archives: Economics

How the Kindle Fire Will Actually Hurt Amazon Instead of Help It

Today, I was thinking of buying a graphic novel for my Kindle reader on my Ipad. Ever since I bought my Ipad, one thing I’ve always cherished is that I can still read e-books made for Kindle on it because of my Kindle app. However, when I went to buy the graphic novel, the first thing I noticed was that it wouldn’t let me complete the transaction because Amazon determined that I did not yet own the Kindle Fire. Apparently, in order to buy the e-book, you can ONLY buy it for the Kindle Fire. If you don’t own the Kindle Fire, you’re kind of screwed. I then started to notice that some of the magazine subscriptions were exactly the same way.

In the past, one of the cool things about having the Kindle reader on my Ipad was that I could see color books on my Kindle reader, which I couldn’t do on my actual Kindle device. However, Amazon, in their infant wisdom (not infinite), has decided it wants to force an Amazon Kindle Fire on you if you want color books of any type.

What this is actually going to do is force readers who might have continued to buy Amazon e-books into not buying them any more. Sure, it might get a few gullible people to buy a Kindle Fire, but for people like me who don’t want to lug around two devices, and seriously have no intentions of trading DOWN to a Kindle Fire from an Ipad 2, Amazon is forcing itself out of its own business.

At one point, I even thought of picking up an Amazon Kindle Fire, just cause I always liked the Kindle. But this has actually sullied my desires, and now I want nothing to do with them. I’ll actually buy the books I wanted in hard copy now, as they’ve never been available on the limited choice available through Apple’s walled garden choices.

It seems that ever company that involves itself in ebooks these days is doing everything possible to screw themselves over in hopes of achieving profits that they’re never going to get. Instead, we’ll destroy the market and leave ourselves living back in 1980 again.

Thanks, Amazon. You suck.

How Legacy Publishers Are Killing the Future of an E-reader Market

When the Kindle first came out, I thought it was the greatest thing ever. Actually, that’s not completely true. I was apprehensive because I was a believer in having a hard-copy of the book with me while reading it, but eventually I started to see that this could be a good thing. I went out and bought an Amazon Kindle, and shortly after that I gave up my newspaper subscription and subscribed to an online version of the newspaper (delivered over the Kindle). Then I ended up with an Ipad 2, and with the Amazon Kindle app, I have been able to read the Washington Post every morning by paying for it with that subscription.

But for books, it hasn’t been as wonderful an experience. As a matter of fact, the e-reader experience has gone from “hopeful” to “dismal” and the fault of this situation rest solely on the backs of the publishing industry itself. You see, in the very beginning, Amazon was offering books at the rate of $9.99, which was probably the perfect point for paying for a brand new book on an e-reader. The publisher wasn’t losing out because the manufacturing costs were practically nil, and their books were getting to their readers almost instantaeously. But publishers didn’t like not having complete control over their market, so they forced Amazon to allow the publishers to set the price for books. Now, an entry price is anywhere from $14.99 to $25.00 on an e-reader. As expected, owners of e-readers have practically discontinued buying books as e-books.

So, you’d get the impression that publishers won. Not really. What actually has happened is that two markets have opened up, and this was an occurrence that a smart publisher probably should have seen coming, but like the music industry before, this is an industry populated by egos who are convinced that they are infallible, and that their product is so great that it cannot be replaced or done without. Well, they were wrong.

It seems that Amazon now has two lists of bestsellers, and they are becoming completely exclusive of each other. In the old days, bookselling lists usually listed the highest selling books (physical copies) but because the legacy publishers refused to budge, Amazon has discovered that its bestsellers are actually e-books that have never been published as hard copy books. As a matter of fact, in 2011, only 3 of the top sellers actually were originally published as “normal” books. The rest were dedicated e-books only. What this means is that more and more books are being sold without ever crossing the desk of publishers at all.

Let’s unpack that. What that really means is that more and more publishers are losing out on their own marketplace because they decided they were too elite to participate in it. Instead of working with Amazon and other such e-book companies, they acted with hostility and marginalized their own market. Readers have gone out and started buying books that other readers recommend, and quite often those recommendations have no affiliations with legacy publishers whatsoever.

What this means, or could mean, is that the future for publishers is even worse than if they had participated with e-readers in the first place. Like the music industry, major publishing companies are being seen as in the way and as leeches rather than as particpants and designers of the industry. An example is the simple mathematics of a publishing contract that attempts to give a writer about 2% of the sales for a book, whereas a deal with Amazon gives the writer either 35% or 70% of the sales (depending upon which publishing deal the writer chooses for charging for books). The selling point of using an established publisher was that you got their name behind your book and their marketing team, but with most publishing contracts these days, a writer is usually left to fend for himself/herself after publication because a publisher will spend most of its resources on already established names rather than someone who is up and coming. So, essentially, you end up with a crappy contract, and you end up with a publisher that doesn’t actually do anything for you other than potentially get books into bookstores (which, in my experience, doesn’t always happen). A further example is the publishing company that handled one of my earlier books. It keeps “offering” to make my book into an e-book, and then offers me that same crappy publishing rate royalty as if it was a hard copy book. What they don’t want to reveal to me is that our contract with each other indicates that they don’t own the e-publishing rights, meaning they’re trying to get me to sign with them for e-publishing when in fact I can actually do that myself and get a 70% royalty without ever asking for their help in the first place. The dishonesty factor is the reason I’m mostly pissed at them, because they’re doing everything possible to make it seem like they’re on “my” side, even though they KNOW they can’t publish the book as an e-book without me signing over MORE of my rights that they don’t physically have right now. Again, another publisher doing everything possible to piss off a client in hopes of gaining short term gains in profit.

So, how can publishers regain the upper hand? Well, first they have to realize they lost it in the first place. If they don’t, we’re going to start to see more and more publishers go under in the next few years because they won’t have the money to keep operating. Right now, all they have is their reputations, but they’re being beaten badly by unknown writers who are making names for themselves without actual publishing companies. Once publishers become irrelevant, they’ll disappear.

But publishing companies are probably not going to go down without kicking and screaming. Realizing that they’re not going to do the smart thing, like announce that they’ll adopt the $9.99 model that Amazon first put forth (which would have probably ushered a new age in publishing), they’ll probably respond with legal action, using whatever clout they have left to hire attorneys who will submit confusing lawsuits that will bog down the system for years, further eroding their success in the industry. I wouldn’t be surprised to see a direct legal assault on both Amazon and Barnes & Noble by the publishing companies, as those are the two entities making the largest impact against them. I also wouldn’t be surprised to see it fall into some kind of patent war over technology, where some publishing company gets smart and buys up a patent that allows them to claim ownership over a certain “idea” of e-readers, even though patents were originally designed to NOT be used for that purpose. We’re seeing a lot of this kind of action on the behalf of software companies and the social networking sites, so it would not surprise me to see some enterprising legal maneuver like this.

Because they’re not going to win by going after the hearts and minds of writers and readers. They’ve already demonstrated they don’t have our interets at heart. It’s all about profit and maintaining a dinosaur of a publishing model. Therefore, expect trench warfare and years of interesting battles that lead to an industry that collapses on itself.

They’re Trying Really Hard to Discredit the Anti-Wall Street Movement

I’m really not all that surprised that the people who have the most to fear are doing everything possible to target anyone who has anything to do with the Occupy Wall Street movement. At first, it was an attempt to paint the movement as extreme, something that no one is interested in. Then it became popular, so they had to try other tactics, like attempting to fool listeners into believing OWS was filled with hypocrisy (“OMG! They have Ipads and they’re complaining about big businesses that might make technology stuff!”). That didn’t work because unlike previous movements of the past, the people attracted to the movement aren’t generally stupid. The movement has been appealing to a pretty educated crowd. It’s hard to derail that when those derailing it aren’t that much smarter than the people they hope to discredit.

So, the anti-protest movement, which I define as “people who have an incentive to keep things as the status quo”, is now targeting specific individuals as an attempt to destroy the entire movement. One obvious target has been Michael Moore, who likes to see himself as the everyman complainer, but according to Fox News (not exactly the most objective source, as it was the voice of the Republican Party during the entire Bush Administration), because Michael Moore has an expensive house, he’s really one of the one percenters, rather than one of the many included in the 99%. Here’s where that math doesn’t add up: Yeah, he’s rich, but just because someone is rich does not make them automatically a part of the problem.

Much of Michael Moore’s success has come on the coattails of debunking the myths of the rich, and empowering those without any power. As a result, he has become very wealthy for his actions. That should be seen as a good thing, not something to somehow force his followers to throw him to the wolves. Just because he made a success at pulling the veil back from the hidden excesses doesn’t somehow make him part of the hidden excesses.

The movement is about the fact that there are some really greedy, bad people out there who are trying to pull shell games on the rest of us. For way too long now, corporate entities have cloaked themselves in the shadows while doing all sorts of crappy things to the rest of us, like poison our water supplies, sell us damaged goods, sell wars for profit (not our profit, but theirs only), and allowed the changing of money that served to devalue the work of those who handle the actual work but benefit those who control how the money gets spent. When you have businesses built up with the sole purpose of generating more money from money, there’s seriously something wrong. When scientists are pulled off the assembly line of science and told its a lot more profit to be a businessman instead, there’s seriously something wrong.

There are a lot of pissed off people right now mainly because our education system has been teaching us that the American Way is the best course for the future. But we’re now starting to realize that those who make it rich in this country aren’t the ones who bought into the American Way (work hard and build a great country) but profited off of those who did. The ranks of the 1% should be filled with educators, scientists and innovators, not speculators, bankers, politicians and lawyers. THAT is why so many people are upset.

A lot of those people out on the streets right now are the ones who stood behind Obama when he was running for office in 2008, because his campaign promised a bright, brilliant future. Instead, we got a term of exactly what we had before, No more, no less. Hope and change yielded absolutely nothing but false promises. And the people who put Obama into power are smart enough to realize that no matter who they put into office next (Obama again, or a generic Republican), the promises are still going to be made with the reality that the next four years are going to be exactly what came before.

That’s why people are complaining. And discrediting Michael Moore isn’t going to change that.

For me, Black Friday is Just the Day After Thursday

I noticed that retailers are starting to send me their “Black Friday” advertisements, telling me of all of the great savings they will be offering on the day after Thanksgiving. I’m going to let you in on a little secret: I don’t care. Black Friday is one of those “holidays” that comes once a year that I completely ignore as much as possible, no matter how much hype keeps coming my way concerning the pseudo holiday. You see, I’ve discovered that over the years almost always one of two things happen with a Black Friday sale for me: It’s either sold out by the time I get to it, or it wasn’t really much of a deal to begin with.

The first problem is easy to understand. There are people who stay up late at night and rush the store the second it opens. People fight each other in the aisles, trying to get at that on sale sweater that they never would have bought on any other day, but they’ll kill you for the chance to get that sweater to the cash register. Sure, every now and then you hear about someone getting a “great deal” on something they bought, but for the most part, every person who raves about Black Friday to me usually tells me about some red and green sweater she bought “for only five bucks!” or some electronic item that they managed to pry from the dead hands of a child they beat like a baby seal for the pleasure of paying for it. And I nod, like I’m supposed to do, and I think about how I’m so glad I didn’t have to deal with the crowds that day.

You see, I hate crowds. Especially the kinds of crowds that come out on a Black Friday. These aren’t people watching crowds, flocks of friendly people partaking in holiday cheer, or even underfed supermodels who might be interesting to stare at as they shop for diet Yogurt, but these are crazed, ravenous creatures who seem to equate sales with a necessity on Maslow’s heirarchy of needs, and I just don’t buy into it. For me, dealing with hellbent people who are after sales is a lot like fishing with zombies. It might be interesting to experience in theory, but I’m not sure I’d want to spend the day throwing a line into the water around a bunch of people who want to eat my brains.

So, this year, when Black Friday comes around, I’ll stay at home and do something different, like anything that’s not shopping. For the rest of you, good luck on finding your sales. I’ll listen to your fascinating stories of beating up a school kid who was after that pair of shoes you just had to have, but that doesn’t mean I really care.

Politicians paying lip service to the OWS movement

I was pretty excited when I saw that President Obama was announcing changes to the federal student loan program that would benefit those of us with outstanding student loans. And then I started examining the details before I realized that for the most part, they help practically no one who currently has any student loans. In other words, if you are currently in school and racking up student loans, you might get a bit of a nudge in the way of help, but if you’re one of those saddled with $150,000 worth of student loan debt, well, the government isn’t really interested in helping you. As a matter of fact, every action the government has taken over the last few years concerning student loans has worked completely against helping anyone discharge (or pay) their student loans. The last piece of “help” we received was when the government sided with the credit card and bank lobbyists and made it impossible to use bankruptcy to discharge your student loan debt. You can discharge your debt for killing someone, losing your business, or throwing all of your money into the ocean, but if you took out student loans, you are stuck with them for life.

Students who have been part of the OWS movement have been screaming for some kind of help from the government since the protests began. As a result the Democrats have realized that a huge segment of their voting population are now tying themselves to this movement. So, obviously, they had to do something to look like they’re on the same side. What better way than to pretend to be doing something, which is exactly what President Obama’s action the other day did? As usual, the government response to a popular protest has been to pretend to be doing something and then hope the movement goes away long enough for people in power to get reelected. In other words, let’s continue to ignore the man behind the curtain.

I don’t think our current crop of politicians seems to understand what’s going on in the country right now. People are pissed off that their chances of a good future have been squandered away by corporations, banks and government officials who kept kicking the cans down the road. Sure, you can blame students for taking out loans, but you really can’t do that until you analyze why they took out the loans in the first place. The corporations, banks and government told them that the only way they would ever have a sustainable future was to take out these loans because the corporations, banks and government weren’t going to be picking up the bills for education. Throughout most of our lives, we realized that our economic future was going to be somewhat of a disaster if we tried to go it alone without education (sure, you can argue that a few people managed to make it without college, but they’re really a statistical outlier rather than anywhere near the norm), so we really had no choice. But now we’re finding out that the promise of a future was really a lie, created by people who realized they had to sell us this lie in order to continue making insane profits.

And look at some of the companies who have profited off of our stupidity. Look at the Fortune 500, and you’ll see nothing but lists of corporations that have played the game all the way to the top. And they did it in some pretty shitty ways, too. I look at the misinformation campaigns, and I”m shocked that we continue to allow it to happen. We have fake colleges selling fake degrees to students who think they are providing a future for themselves, yet are really only getting themselves further into debt and will have absolutely no future. Sure, you can point your fingers at the profit colleges, but what no one wants you to recognize is that legitimate, innocent looking companies are also the ones behind them. While we can all point at Haliburton and the Fox Corporation and claim all sorts of evil, there are so many companies like the Washington Post, which really doesn’t want you to know that it’s practically running one of those profit colleges that the government has been “claiming” to want to curtail, but when lobbyists got involved, suddenly the government didn’t want to “hurt students”. This happens in so many different avenues of business that we don’t even pay attention to it any more. And no one reports it because the major news agencies are all part of the same problem that caused our dilemma, and who wants to report on themselves? Certainly not NBC, which is owned by General Electric. And the lists just go on and on.

But right now, there are people out there making themselves heard, and they’re probably not going to last very long. Just yesterday, Oakland Police were tear gassing protesters and then shooting projectiles at Iraqi veterans who have joined the protest. But no one pays attention long enough to really care. And like the Vietnam War protests of the 1960s and 1970s, we’re probably going to condemn the protesters because it’s become really easy to ridicule the protesters instead of actually give them the coverage they really need.

You see, the protesters are out there for more than just themselves. They are out there advocating for everyone who doesn’t have a voice. And for the most part, they’ll be ignored, beaten and ridiculed by everyone else, even though everyone else is part of the 99% they’re there to represent. In the end, they’ll probably give up because we didn’t care long enough to help them make a difference.

And the fault will be ours. But we’ll never know, because we didn’t even take the time to care.

What Political Issues Should Be Focused On?

Every time we come close to a major national election, I’m left scratching my head at the innane subjects that end up becoming “important” politically. You know the things I’m talking about. Stuff like abortion, stem cell research, soccer moms and legalizing marijuana. Sure, some people find them important, but for the most part, they’re fringe topics that tend to get people galvanized around unimportant issues that end up costing votes for elections. And we fall for it every time. So, I decided to look into a couple of topics I thought SHOULD be issues, and then ask if you have any thoughts or ideas of your own.

1. While the economy is an important subject, just focusing on “the economy” or “jobs” are useless endeavors because they really don’t get down to the point of actually doing anything. Sure, I could run for office and say “Duane is FOR a good economy and believes we SHOULD put people to work! So vote me for me!” Sadly enough, a bunch of politicians are probably already preparing their campaigns to say almost that. In rhetoric, it works great. In substance, well, not so much. Mainly because it doesn’t mean anything. Killing puppies is bad, but no one is actually advocating killing puppies, so getting on the side of the pro-puppy crowd doesn’t lead anywhere but to banal arguments that don’t lead anywhere. That’s the economy problem.

So, if I was going to talk about fixing the economy, I could probably focus on taxes, even though those often fall into banal areas as well, because then we end up in a pro-left “more taxes” or pro-right “taxes are bad”. Instead, I say that we k now that taxes are inevitable, so why don’t we focus on what exactly we’re taxing in the first place. And I don’t mean whom, such as rich versus poor. Yeah, I think the rich could probably afford to pay more taxes, but let’s be honest and think about the possibility that perhaps that’s not exactly right either. While they CAN afford more taxes, is it really right to say they SHOULD be paying more taxes? While I could argue that they’ve probably benefited more from capitalism than someone who is poor (which WOULD be a good argument), I’m going to take a different tact and focus on what should be taxed, because I think there are avenues where we are completely missing the boat.

Here me out here. What I propose is that we legalize prostitution and then tax anything and everything that has any ties to sexual barter exchanges. Right now, there is a HUGE blackmarket industry that is nothing but this type of behavior, and the only reason we don’t tax it is because the people who would pay those taxes are afraid to report it because they’d probably then get arrested for all sorts of blue laws we have instituted in our scared of sex morality that exists in our society. Face it. There are people paying other people for sexual behavior, some of it pretty innocent and some of it pretty damn bizarre involving all sorts of devices, machines, trapeze-apparatus mechanisms and some involving things that still shock the crap out of me. But I know it takes place because there are people out there doing it and enjoying it. None of them are evil, bad, dishonest or any other letter-wearing designation either. They’re normal people who have decided that that is how they interact with each other. And some people throw a fit because it doesn’t fit into their sense of morality.

Get over it. If you don’t like it, don’t participate in it. But that doesn’t mean we shouldn’t be acknowledging it and taxing it. Believe me, there’s a LOT of money that changes hands here in this area, and once it becomes legal, you start to clean it up as well. Sure, people are still going to do their naughty things, but legalizing it gets organized crime, gangs and predators out of the business. It also allows women to have an easier avenue to protect themselves from some of the problematic people out there who prey on them because they figure the illegal nature of the business keeps them from every having to face justice.

Now, we could also legalize drugs, but at the same time I realize there’s a more health-related problem involved here that needs to be dealt with. Perhaps if we went into it with all eyes open, we might see drug behavior as a problem that needs to be dealt with through therapy and positive actions, rather than having someone try to get off drugs while in lockdown, waiting for his court case for possessing illegal substances.

2. International Diplomacy. We haven’t gotten this right in over a hundred years now. We’re still dealing with foreign entities as if we’re still part of the Napoleonic era. Governments aren’t that way any more. Major powers don’t really deal with each other on the international stage as they used to with detente and brinkmanship. What is needed is a different perspective, involving a more game theoretic foundation of tit for tat and compliance understanding than “the enemy of my enemy is my friend” nonsense. If you look at the problems the US is having with Middle Eastern countries, almost all of them stem from brinkmanship and religious intolerance (from both sides) than it does from actually attempting to engage with people as part of a give and take relationship. Right now, our foreign policy has more to do with where we might get our next barrel of oil than it does with how we get along with people who like types of music you can find on iTunes, yet much of our actual engagement comes from those avenues through social networking sites than they ever will through economic business ties being handled by corporate entities trying to corner the market on petroleum.

Years ago, I used to have disagreements with a young man who was fresh from Iran (shortly after the Shah was deposed). He was a strongly ideological Persian who believed in east versus west superiority (for whatever reasons, which surprisingly were not religious), but we actually became friends and arguments and conflicts practically ended overnight when I discovered he was a fan of Madonna, and I managed to get him a copy of Madonna’s “Sex” book that he so wanted but couldn’t bring it to himself to buy for himself. To be honest, I never heard an anti-western comment from him after the day he received that book. While I can’t verify he still didn’t feel that way, it was amazing what a sea change was made over such a simplistic gesture.

That our government has NEVER figured this out shocks me more and more as the world becomes a much more dangerous place while still moving towards some bizarre sense of a global economy.

3. Education. This, to me, is probably the most important issue that our country should be dealing with on a daily basis, almost with the same sense we gave to putting men on the Moon. Our whole country should be rallied around the idea of improving our educational system not so that we somehow obtain minimal standards, but that we start to surpass the very dreams we had back in the 1960s about the great civilization we hoped to one day become. Children should be taught calculus by sixth grade as a standardization and expectation because it should be almost second nature. Parents should be irrate that their children don’t know more than they did at their age and do everything possible to make sure that we don’t continue to churn out stupid people. Reality show programming should be seen as the embarrassment to America that it really is, instead of some kind of ideal that people look up to. My god, there are people who want to be Snooki and the Situation, and somehow seem proud of that. College should be an expectation for all, not because it’s an enlightened goal of the few, but because it’s necessary to build a society of free thinkers who should be challenging everyone about practically everything. I would like to see a presidential debate that is moderated by the audience who shows up to the event wanting to know the answers to real questions, not just packaged answers to questions pre-screened by candidate panels beforehand.

That’s all I’ll go with for now, because now I’ve depressed myself as I realize we’re never going to achieve any of this, and we’re doomed to go another century with people striving for the lowest standards possible, mainly because they never learned to challenge themselves.

Is Being Upset Enough to Sustain a National Movement?

The Occupy Wall Street movement is turning out to be a very interesting flashpoint in modern day history. If you follow the news, commentators are going out of their way trying to explain away something they can’t explain by using metaphors and comparisons to previous movements that are completely void of any dichotomous connections. What is simply happening is that something new has emerged, and the media has no way of explaining it.

So, let me explain what is really going on. What we have are a lot of people who are pissed off because the American Dream (or whatever international aspirations they might have if they’re not Americans) isn’t working out as originally sold by the marketers known as government and media. It used to be if you worked hard, put in your time, and did the right things, you would come out ahead, and that your children would end up doing better than you did before. This would continue on for generations until several generations later the new species wouldn’t even recognize the old species.

That works great in theory. However, the theory doesn’t account for the concept of greed. A capitalistic system works really well at bringing the society to a higher level of achievement, but what doesn’t get discussed is that not everyone rises up with the new tide of prosperity. In reality, a capitalistic system is designed to benefit those who are capable of taking advantage of the process, and in a zero sum economy, someone generally has to do horribly bad in order for someone to do horribly well. Socialism is the economic system where everyone comes out equally, although not always at the best they could be (as government isn’t known for raising tides of boats of economies all that well when there’s no incentive to provide for upward mobility). But capitalism is a different animal, and equality has never been a promise, a guarantee or even a necessity. Instead, capitalism promises prosperity for some, and desparity for most others. What we’ve only recently discovered is that 99% is desparity while 1% is prosperity in this zero sum game.

That is why people are pissed. You see, most people don’t want to be part of the losing side of economics. Yet, whenever this gets addressed, the 1% (and the clueless numbers in the 99% hoodwinked by the 1% to believe that they’ll one day have a shot at being one of the 1%) does everything possible to make the 99% sound clueless, making such commentary irrelevant, and even more important: Unheard.

But one thing happened that wasn’t a part of the capitalistic dilemma: Education. Many more people achieved education than a capitalistic system can actually maintain. Oh, this works out well if the education is vocational in nature, in that everyone exists for the purpose of feeding the greedy animal, but if the education is social in nature, and people become made aware, rather than compliant, then there would eventually be a reckoning. It’s somewhat inevitable, although I don’t even think Marx or Hegel predicted it would happen as quickly as it is beginning to occur; they suspected much more saturation would have been necessary first, but who knew?

That’s where we are today. The movement has no leadership because there is no one who can steer a crowd to inevitable collapse. There is no rallying cry that can push people in that direction. And there is really no rallying cry that can push a population back in the other direction once the masses have been unleashed.

So, the question is: Are we there yet? If we’re at the inevitable saturation point that leads to eventual destruction of the capitalistic system, then nothing exists that can push the movement backwards. If we’re not there yet, the people who hold onto the reins of power will continue to use their influence to push the masses back to compliance again. But one thing is certain: There will be no actual compromise because the holders of power cannot compromise without acknowledging that the system was flawed to begin with.

So we’re left with the question of whether or not there is enough anger, frustration and disgust amongst the population to fuel a movement further to a point where changes will actually take place. As collective action theory points out, people will gather together for a common purpose, but if they do not receive a payoff for their efforts, the movement dies until it raises steam again. If they do receive a payoff, they may settle down, thinking they achieved their goals but not really satisfied (meaning they will eventually have to rise again and start over from scratch), or they will be so insulted by the compromises asked of them that the movement will fuel itself and sustain itself further until it actually acquires the goals it sets for itself.

Either way, no one is going to sit down and write out a list of wants and needs to sustain the movement (something the media keeps asking for). It will either achieve what it needs to achieve (fulfilling a sense of punctuated equilibrium) and return rhetoric to a sense of order again, or it will overwhelm everything until it becomes the new world order itself.

Only the future can really tell.

How Do You Steer a Rudderless Movement?

When the Tea Party first emerged, one of the notable features of the gatherings was the simple fact that there appeared to be no leadership whatsoever. However, as time passed, a few people became the spokespeople for the movement, and now whenever the “organization” is discussed, people can point at a few politicians and say “that’s their leader”. However, at one point, there were no leaders, and when the news media was trying to get comments from the protesters, it was very interesting to see how they tried to manage the fact that there was no one to actually interview.

Fast-forward to today, and we have yet another movement taking place that has virtually no leadership whatsoever. Unlike the Tea Party movement, this “organization” tends to hail from the liberal side of the political spectrum, but like the Tea Party, it shares the one attribute of having more in common with anarchy than actual political representation. The movement I’m talking about, of course, is the Take Back Wall Street movement that is currently occupying a lot of the current news.

It is yet another fascinating moment in people politics because it has absolutely no organization and has more in common with flash mobs than it does in any previous type of organizing behavior. Most events tend to be sporadic, immediate and out of nowhere, but unlike a flash mob, these movements tend to be stationary once they actually occur, meaning they don’t appear and then go away a few minutes, or hours, later.

But there are no leaders. And because of that, it is very difficult to determine exactly what they want, or what it would take to make them satisfied. The consensus, if there is one, is that people are outraged, upset and not going to take it any more, but when it comes to defining what they’re outraged about, why they’re upset, or what exactly they’re not going to take any more, that’s a little less apparent. Taking it one step further, what they actually want to fulfill their movement’s charter, if there was one, is even less tangible.

Analyzing it, they appear to be upset that Wall Street, or the people who work on Wall Street, have their own interests in mind at the expense of the rest of the country, or world. The claim is often made that the 1% (those who profit off of Wall Street antics) are profiting at the expense of the rest of the 99% of the country (and world). So, the desire is to somehow convince the 1% that the 99% are not going to take it any longer, and if things don’t change, that 99% is going to do something. What exactly, I’m not sure. No one else appears to know either. But they’re pissed, and they’re going to do “something” if “something” isn’t done to change things.

With a charter like that, it appears very difficult to figure out what they’re going to want or need to appease their members. Even worse, there’s no way to figure out who their members are, or even if they would be satisfied if “something” was done to appease them in the first place. I’m reminded of Mancur Olson’s The Logic of Collective Action, in which he pointed out that people have a tendency to free ride their way through collective action, expecting to achieve results but aren’t willing to do much to achieve those results. There appears to be a lot of free rider activity going on here, as was noticed during a recent Chicago flash mob of the Take Back Wall Street variation, reported by the Wall Street Journal, in which an independent trader named Roger Brownworth points out that he was disappointed at the turnout (he had seen only about 20 protesters), but at the same time didn’t seem all that interested in joining it himself.

But Olson isn’t the only source that should be of interest here. I’m also reminded of Poor People’s Movements by Frances Fox Piven and Richard Cloward (a great book, I HIGHLY recommend), who remind us that when people get together and form major movements to benefit their own interests, they’re often appeased by very minor reforms or benefits and then don’t show up for future gatherings, convinced that because there was such great outpouring the first time, they won’t be expected to show up for the next one, kind of backing up Olson’s projection. The Chicago gathering is a direct example of Piven and Cloward’s argument.

But that’s the movement itself, which in Piven and Cloward’s book usually points at an organization that has some type of leadership. With the Take Back Wall Street movement, we have no apparent leader where everything seems to be organized a lot like a flock of birds all turning together at the same time as a part of a social being rather than a collaboration of like-minded individuals. During the Gulf War protests during the Bush Administration, many gatherings of protesters were similar to this flash mob mentality, but quite often they were derailed by one or two individuals doing something uniquely ridiculous, like Woody Harrelson trying to climb up the gratings of the Bay Bridge during a San Francisco protest. Other major demonstrations were often turned by one or two individuals who acted as spontaneous agitators, yelling out something like “let’s take City Hall” which would cause throngs of people to start running off in one direction, causing a riot where a peaceful gathering was taking place only moments before.

That’s probably the biggest fear we have right now as when you have a mob (the obvious physical make-up of a flash “mob”), there’s a very real possibility that an agitator or two, either spontaneously or surreptitiously placed, may cause a group of people to react in a way that they were not intending to do when they first gathered to protest over concerns they may have had about injustices and unfairness. How many major sport events have turned violent because one or two individuals started doing or saying something stupid that somehow riled up a group of people who were already excited by the happenings of the particular event they were attending? Quite a few actually. Malcolm Gladwell points out in his book Blink that one of the biggest problems with excitable events, like a police car chase, is the excitement of the chase itself, which often can lead to adrenalin requiring some kind of release, which would explain why so many car chases end up with a physical altercation that might not have happened if people hadn’t been overly excited by the chase in the first place. The same thing occurs at these major social gatherings, like sports events, or for the sake of this essay, a flash mob. People are excited, they are yelling, and quite often it only takes a nudge in one direction for a group of people to start doing things they might not normally have done if they weren’t already overly excited.

Which means, there’s a good chance that one of these Take Back Wall Street events is going to turn violent if they continue to remain without leadership. However, if someone, or some people, arrives to take charge of this venue, there’s no promise that the presence of leadership is guaranteed to be in any way more positive. History is replete with examples of mob leaders who did some pretty horrific things once empowered with that ability to lead a group of people. And then there’s the equal fear that the emergence of leadership might doom the movement in the first place. Since the creation of “leaders” for the Tea Party movement, the spontaneous nature of that process has diminished greatly because a lot of the people who originally affiliated themselves with an unaffiliated organization never really fell in line with self-proclaimed wannabe leaders like Palin, Bachman, and the 70 or so Republican legislators who have claimed ties to the Tea Party foundations. Many of its members have actually gone underground, realizing that what they had to complain about was never solved by having people claim their throne in their name while never actually espousing their true beliefs.

The same problems may be seen for a Take Back Wall Street movement. The current crop of wannabe leaders already showing up are the likes of Michael Moore and other already entrenched in Washington political Democrats who see the movement as a way to shore up more support for their positions they already hold. There is also the tendency of the media to try to control the movement so it can be easier to report. CNN is already reporting How Occupy Wall Street Has Evolved, when CNN is still as clueless as the movement itself as to how it is changing, what it actually stands for, and what it actually intends to do.

What’s probably most significant is that a movement is underway, but no one knows where it is heading. It can become distruptive, like the Bolsheviks in Russia at the turn of the 20th century, it can be innovative like the Prague Spring in Czechoslovakia in 1968, it can transform like the recent Arab Spring, or it may write its own chapter of unforseen future circumstances. Either way, it probably shouldn’t be ignored.

Reviewing “That Used to Be Us” by Thomas Friedman and Michael Mandelbaum

I picked up this book on whim, not sure if it would end up being partisan drivel, interesting or just a waste of time. Well, halfway through it, I decided on “interesting”. While reading it, I couldn’t help but be reminded of my experience when I was reading the book “Teachers Have It Easy” (don’t remember the three authors), a book that tells the brutal truth of what it’s like to be a teacher. I remember at the time of reading that book how some of their stories rivaled my own, and there were times when I just shook my  head because I knew that other people needed to be reading the book, but they never would (or will). So, I’d end up reading a book that reinforced what I already knew, and I’d constantly be berated by people who knew nothing of teaching, but would act like they knew everything because “my mom was a teacher” or “I know a teacher” or my favorite: “I don’t have to be a teacher to know how easy they have it.”

“That Used to Be Us” also talks about one of the platforms that needs to be embraced in order to make things better, and one of those platforms involves teachers. In order to make America strong again, we need to empower teachers, and that means asking a lot of people to do something that definitely won’t be in their best interest, and that’s the part their book never really addresses. You see, the majority of the critics against teachers outright hate teachers. They don’t know enough about them, but they know that they hate them, and they take every opportunity to cast ridicule upon them. I see it on message boards and newspaper letter sites all of the time. MLive.com is one of those that excels in this. What happens is a bunch of “good ole’ boys” start posting about how teachers have it so easy with their big paychecks, their miniscule hours and the fact that they get these HUGE vacations every year. And then they’ll drone on about unions and how teachers are lazy, overpaid, quite often stupid, and more often than not, the problem. Try to talk to them politely, and they flame you left and right. Try to engage them in argumentation, and they start making personal attacks that have no actual basis in reality, but are designed to hurt and throw mud all over the walls.

Friedman and Mandelbaum rightly believe that the solution needs to start with an empowering of teachers who will then embrace a Colorado style of educational reform, but at the same time don’t seem to offer any way of getting everyone else on the side of teachers to make it happen. What ends up happening almost every time that standards are increased is that they become punitive so that unions become defensive, and then you end up with no one actually trying to improve things for children but people are seen as targets rather than part of the solution. For most people, educational reform is a zero sum game where one side has to lose for the other side to win, rather than their approach which is for all sides to win. Unfortunately, that’s what always makes it completely incapable of achieving success.

Part of the solution would be a simple paradigm shift in respect towards educators, which doesn’t happen too often in this country. I saw it when I went to Korea and was traveling home through China. I was stopped at the Beijing Airport, and I was being questioned about the medication that I was carrying with me (I had stupidly forgot to pack the prescription information with it, and Korean pharmacies have a tendency to just package pharmaceuticals in individual bags with no markings on them). I was in a seven hour layover, so I wasn’t in any hurry, but it didn’t look like I was going to be getting through customs any time soon. However, about fifteen minutes or so into it, one of the customs guards asked me my occupation, and I said I was a teacher, that I taught little kids (which is what I had done in Korea). His eyes opened, and he immediately took off to track down his supervisor, who had been in and out of dealing with me about the whole “drug” issue. The supervisor came back with another customs guard, a young woman. They both stood there for a second and just stared at me. Then the first guard started talking to them with animation, pantomiming the whole “little kids” action I had done when describing my job. Then both the supervisor and the other customs woman smiled, thanked me for my time and packed up all of my Korean bags of pharmaceuticals into my bag and released me to the waiting area untl my plane arrived.

Right then and there, you could see how much respect they had for someone who actually taught children. It didn’t matter that I was an American, and that the children I taught were Korean. I was a teacher, and it mattered to them.

We don’t get that sense of pride in this country. Ever. And that’s why it is so hard to find quality teachers who really care about their job. It obviously isn’t the money that keeps them in the profession, no matter how much political spin people want to put into it. For someone who has a master’s degree, the pay for the work isn’t worth it. The drama, the politics, the hassles and the unrealistic expectations with the lack of care of parents for the proficiency of their children…just doesn’t make it worth it. So it has to be something that keeps teachers in the business, and quite often it’s the few successes they do get from the struggles we go through.

Unfortunately, as long as the people in this country treat teachers as they always treat teachers, don’t expect things to get any better. And as for the book, much like the previous book I mentioned, I don’t expect anyone to read it who needs to read it. It will be read by people who already have an idea of what the book is expected to say, and only by them. I’ve actually be surprised at a lot of the information contained in the book, and I am one of the people who tends to read this kind of book. Unfortunately, the people who need to read it…well, they won’t.

Monopolies, Greed and Treating Your Customers Like Crap

This morning, I was about to leave my apartment building to head to work when I noticed an 8 1/2 by 11 piece of paper taped to the exit door for everyone to read. It was a message from the apartment complex managers, indicating that anyone who was currently using the video services of U-Verse by AT&T must discontinue using it immediately because they are in violation of the apartment’s “contract” with some cable service called Suite Solutions. Not being a user of U-verse, I didn’t give it much concern, but then it had me thinking. What if I was a user of U-Verse and decided to get my television programming that way? What if I decided I didn’t like Suite Solutions (which I don’t) and chose to get my television programming through my phone line? What right does some housing complex or some cable operator have to choose how you get your television programming?

For the longest time, I’ve been receiving flyers in the mail from AT&T, promoting U-Verse as the answer to bad cable companies, and I just ignored the stuff because, to be honest, I don’t think television is all that worth subscribing to in the first place. While some people remained glued to their television screens every night they get home, I don’t think I’ve turned mine on to television programming in over 8 or 9 months, so to be honest, I’m not even sure I even have a television signal these days. And honestly, I don’t really care.

But what started to bother me was this anti-business message that was being pushed on potential customers by the people who manage the place where I live. It’s one thing if Suite Solutions was a good company, but let me tell you about my experience with that company. When I first moved into my apartment over two years ago, I chose that company to get my television and Internet service. At one point, I remember counting on a calendar to see whether or not it my service was down more often than it was actually up. I paid for the highest speed service, and when it worked, my download speeds were atrociously slow. I remember beating a download with my cell phone once (which ironically never actually succeeded with Suite Solutions because the Internet crashed during the download and didn’t come back up for another three days).

This was the company that my housing complex thinks that I should be emboldened to because they signed a contract with them somewhere in the past. Now, I don’t mind this being an option, but if they eliminate all of my other options, so that Suite Solutions is my ONLY choice, I think we have a horrible problem that really needs to be solved by the SEC, the FCC or maybe Elmo and the other characters of Sesame Street (they are notorious for advocating for consumer rights in the fantasies I have about Elmo and the gang).

Of course, no story about monopolies should be complete without a little bit of irony. I mean, we are talking about some unknown cable company using its monopoly to cut out the little guy, specifically a little guy named AT&T, who happens to be going through a little bit of monopoly trouble of its own these days. Now that the government has stepped in and told AT&T that it is creating an unfair monopoly by trying to buy T-Mobile, does anyone see the ridiculousness of some small cable provider shutting out AT&T through its contracted monopolies? I’m sure there are some people who are thinking this is a good thing because they just hate AT&T, but when AT&T becomes your alternative source to a crappy choice, something’s seriously wrong with this picture. I mean, I’m not exactly the poster child, greatest fan of all things AT&T. Just last week, AT&T refused to transfer my Internet service (not U-Verse) to my new apartment because of some flag that showed up with an old bill for $189 that HAD BEEN paid over two years ago; unfortunately, because it was so long ago, they couldn’t find a record of the situation, nor could they offer any way of alleviating the problem because the situation occurred too far back in the past to be solved by any simple transaction (like me just giving them $189 to make the problem go away). That’s the kind of problem you get from a monopolistic company that is so big that it can’t handle its own financial problems that emerge from its own lack of correct record keeping (you can always spot this problem when some customer service person tells you: “There’s nothing I can do about it. The problem seems to be coming from another area of the company that doesn’t exist anymore.”).

So, I ask, are monopolies good or bad for consumers? So far, my experience with them has been nothing but negative. You constantly hear economic pundits talking about how monopolies are good and how they drive innovation (or some other big proclaimed statement that has no basis in reality), but how do they really help us? Okay, there is one area, and that’s price, in that a company with a monopoly has the ability to lower the prices by handling all of the means of production and distribution, but how many times has that monopoly also gone the other direction, to where the only source of a product decides to raise its price because it realizes that no one else can fulfill the need? We’re kind of seeing that right now with Netflix, that erroneously thought that it was a solitary producer of content services so that it could pretty much do whatever it wanted to do by raising prices and splitting its company into two so it could eventually raise prices at its own leisure (possibly by raising it twice as much, as both companies can now raise prices as the same time, and thus, increase profits twice as fast). But what really happened was that Netflix realized too late that its customers WERE its product, not just the users of their product, and without customers, they have no income. I expect to see Netflix become the next Myspace in an era of Facebook.

For me, I have no real solution other than to boycott all of the products of companies that are hostile towards customers, which is why I gave up on Suite Solutions shortly after feeling like I was being cheated month after month. Fortunately, I am not a consumer of U-Verse, so I don’t have to worry about this proclamation from the emperor, but at the same time it also keeps me from ever wanting to do business with Suite Solutions again because instead of trying to compete with AT&T by providing a great customer experience and a good product, they decided to go the punitive route instead.

That companies never realize this strategy is a blueprint for failure is a footprint that forever haunts me. There’s a reason that message was tacked on our door like Luther’s 95 Theses. The company is failing to attract and keep customers, so it needed to crack down on anyone who decided to use alternative choices. Unfortunately, that strategy rarely brings in new customers or business. Instead, it leads you closer and closer to becoming obsolete. That this is 2011 and a company still doesn’t understand that is ridiculous. But why innovate when you can demand business? Need I say more?