• Professor Elam

    Mercedes Benz lyrics
    Oh Lord, won’t you buy me a Mercedes Benz ?
    My friends all drive Porsches, I must make amends.
    Worked hard all my lifetime, no help from my friends,
    So Lord, won’t you buy me a Mercedes Benz ? 

    Picture 6

    Oh Lord, won’t you buy me a color TV ?
    Dialing For Dollars is trying to find me.
    I wait for delivery each day until three,
    So oh Lord, won’t you buy me a color TV ? 

    Oh Lord, won’t you buy me a night on the town ?
    I’m counting on you, Lord, please don’t let me down.
    Prove that you love me and buy the next round,
    Oh Lord, won’t you buy me a night on the town ? 

    Janis Joplin, circa 1970

    We hyperlinked to the wiki article on Janis so younger readers, (that would be the students) can acquaint themselves with our own Port Arthur, Texas native. About that time students at universities were having sit ins, often attempting to shall we say detain university administrators. What did they want, well, something for nothing. 

    Fast forward to France today.  Workers are taking French business execs hostage, their only regret is not keeping them longer. What would that accomplish, nothing. It rather reflects their extreme frustration that the long unreality of a  federally funded subsidized sub 40 hour 'work week (Janis' night on the town in the last line) ' is over. They can hold the execs as long as they want but that will not bring it back. Janis plea for Dialing for Dollars ( a popular tv game show at the time) has its cousin in today's lotteries, state sponsored gambling at the nearest convenience store. Indeed, government sponsored tv ads with catchy titles like the Texas Two Step encourage such games of chance. 

    By the way Mercedes is offering 1.9% financing on pre owned factory certified MBs at this time…..
  • Professor Elam

    Here is the link to the summary of the KPMG $456 M fine for their promotion of a tax shelter marketing program.

    This was the largest tax fraud case in history, worth a read and we will be discussing it in ethics class.

    The IRS version is here.

  • Professor Elam

    P4202132

    I cropped the photo down to this corner of each micro wave able box. See the difference?
    The contents are clearly labeled on the bottom box, not so for the top box. So if they are stacked in the freezer, a quick glance reveals the contents of the box. With the design of the top box, one has no idea what the box contains. 

    Given that one supposes companies the size of Con Agra which make this product, has seen the improvement and that the newer design is the one on the bottom, right?

    Wrong, the top box is the newer design.While the overall box has a more 'breezy' color scheme, it conveys less information. This is an example of the design process going the wrong way. the contents is on the top of the box and the longer side of the box but not the end, which is the logical way to stack them in the freezer.

     

    Check out Don Norman's the Design of Everyday Things for more on this very important topic. 
  • Professor Elam

    George Will  suggests that President Obama has missed the big picture with Russia.  When I was a kid Russia had about the same population as the USA, well maybe that was the Soviet Union, at any rate, no longer. Russia decimated its own population with internal revolution, mass starvations by Stalin and then losing millions in WW II. But the latest trend is strictly internal. Russia is the accelerating to the downside population wise. Alcoholism, disease, a failed health care system, family dissolution, amidst the lack of hope is decimating the population growth. 

    This is of course dangerous. Leaders of shrinking countries are liable to do something dangerous to attempt a restoration to power. 
  • Professor Elam

    This link to an employment map shows that unemployment has of course begun regionally. Michigan as I have said in class is in terrible shape. Texas is one of the last affected. I saw an interesting presentation on geospatial relations at the Sam Houston Conference.We will be examining more of these in the cost course this summer. 

  • Professor Elam

    Dennis
    Elam

    April
    16, 2009

    Word
    Count 740

    Big Brother is Planning

    Lyndon
    Johnson observed that politics is all about getting someone else to do what you
    want them to do, and believing it was their idea to begin with. Reagan went on
    to observe that you could get a lot done in Washington, DC if you let someone
    else take credit for it. Those ideas are being ramped up to a new level.

    For
    a look at where the new Administration is taking us, read
    Nudge and Predictably
    Irrational.
    Here is what they are all about. The column just commanded you
    to read two books. Realistically you probably won’t . Indeed you may well rebel
    at the idea of being commanded at all.

    Okay
    suppose instead
     you learned that
    two books were the most popular at the Andrews library, that there was a two
    month wait to get the books (for a three day checkout given their popularity),
    and that 30% of all with a library card had read them. The information contains
    no admonition to go read the book. Now, are you more interested?
      Might you even read a review or buy it
    off the internet, you bet you would.

    The
    concepts involved are known as anchoring, herding, and the default syndrome.
    Anchoring is the process of giving us a starting point. Schools learn to ask
    for $100, $250, and $500 donations as silver, gold, and platinum. This brings
    in more than asking for $50, $100, and $250. One is anchored to the initial
    suggestion of the initial gift. Herding is the process of renaming the get on
    the band wagon approach. Obama girl on Facebook was no accident, she was
    promoted as a way to anchor the choice of new young voters. The default
    syndrome holds that if you are in a situation you are less likely to withdraw.
    Hence health clubs get one to sign longer memberships for less per month
    realizing that even if not used, people are less likely to withdraw once
    committed.
      Remember Bill Clinton
    saying that he could let us make the decisions with our tax money but we might not
    make the right ones?
      But wait, he
    is going to
    invest our money, not
    spend it.
      Hello default syndrome,
    once in , the government decides for you.

    Hold
    on, in the case of cigarette smoking, for once, the government got it right.
    Fewer people smoke leading to better health. But on the other hand, like most
    reformed smokers, it appears they began eating more, America is growing more
    obese. How shall we solve that problem?

    The
    idea here is that we all need a nudge to do the right thing, eat right, save
    money, avoid littering. The Don’t Mess with Texas Campaign was hugely
    successful in this regard. The problem of course appears on page 13 where
    Thaler and Sunstein reveal their own bias about an ultimate goal.

    As the experience with
    Hurricane Katrina showed, government is often required to act, for it is the
    only means by which the necessary resources can be mustered, organized, and
    deployed.

    That
    is not my recollection. My recollection is the famous photo of the school buses
    axle deep in flood water while residents were stranded in
      New Orleans. The aftermath saw the
    election of the first Republican governor (an Indian Catholic no less) in
    decades.
       Wal Mart responded
    more quickly than FEMA. There are still people living in FEMA trailers for all
    I know. Mississippi and Iowa had very different results with very different
    governments in a similar situation.

    Such
    ideas are now at the core of what is about to happen. The carbon tax will
    preclude one from finding or using energy, Obama said it would be too expensive
    for us to use. He was not kidding.
     
    Forbid  executive salaries
    over $500,000, penalize incomes over $250,000, tax large pickups, subsidize
    hybrid cars, the sky is the limit.
     
    The first carbon tax  effort
    failed with Democrat Senators from coal producing states. Which raises the
    question, what if the Nudge does not work, then what?

    Clearly
    the Tea Party
      (Taxed Enough
    Already) participants ore not being nudged into the Stimulus program. Will the
    administration give up this nudge and adhere to their wishes?

    We
    invite your comments , or do you need a nudge to send me an e mail?
     

     

    Dennis Elam teaches at Texas
    A & M San Antonio and can be reached at
    denis.elam@att.net.

     

     

     

     

  • Professor Elam

    Here is a great seven minute you tube about Texas. Indeed the Houston DFW SA Triangle they call Texaplex is one of the remarkable economic engines in America, especially if one does not have to live in Houston….

  • Professor Elam

    A summary of the story to date including the resuce appears here.

    Management strategy outlines the overall goals of a company and how to get there. The same holds true for foreign policy for a country. It seems to me that the Pirates learned quite a bit at a relatively cheap cost to them, pirates after all are somewhat expendable in that line of work, not to be callous but….

    Most of you are too young to recall the Evil Empire (Peggy Noonan, Reagan speechwriter's phrase) of the old Soviet Union. Say what you will, they never had a pirate problem. Yes they finally made a big mistake in Afghanistan, and we seem to be follwoing their example there. 

    The big problem here is that the pirates have no real reason to fear anyone.  After all they only asked for $2 M dollars, pretty cheap considering an entire, ship, cargo, crew, and other ships are held hostage. Why would they be afraid, no nation has done anything to stop them and the cheap ransom is priced on I think, the theory that it is just cheaper to pay than fight. this is precisely the same thing that happened two hundred years ago with the Barbary Pirates. Ransoms were demanded from British and French ships and kidnappings were in vogue. It finally got to be too much and the US and Britain finally took action (to the shores of Tripoli, Marine Hymn) forming the basis for the modern US Navy.  Google wikipedia.org on barbary pirates

    What do you suppose it cost us sending multiple warships, having people up 24/7 watching satellite images, burning up phone lines about negotiations with Pirates, now there is an oxymoron, and not to mention the testosterone charged parachute drop at night from an airplane into the ocean which miraculously worked, ie, this is not a movie, the military is usually not this lucky in real life. And then the great Tom Clancy ending, shooting from a rolling ship, and again, they hit the pirates not the Captain. Absurdly I am sure the permission to fire had to come from the White House. Lyndon Johnson tried to run the Viet Nam war that way, it did not work.

    A strategic policy would be that massive retaliation occurs if pirates even think about trying to take our ships. Our ships are armed and ready. If boarded  the ships  are armed and ready. I read that the pirates come abord with knves in each hand and another between their teeth, a ferocious image to be sure. Funny, for all our high tech stuff, isn't this the way pirates have always boarded ships. 

    Anyway, there should be no comments about we are trying to negotiate to avoid the loss of life. I mean , how reassuring do we need to be to the pirates?  No Hillary, we are proceeding in such a fashion to make sure no one very thinks about trying this again,Trust me, in the larger issue, all this has not been lost on Vladimir Putin, a KGB trained pirate himself, with eyes on re acquiring his former Republics….not to mention dominating Europe by control of their sole energy sources.

    Do you think any of this scares that chap in North Korea who just launched his own missle?

    But I digress. the lesson here aside from international diplomacy, is that a company needs to proceed in the same manner. I see that today MSFT is again trying to buy Yahoo or someone else. MSFT has to buy the competition, the never are THE competition…..

  • Professor Elam

    Maersk is cutting costs by slowing down, even adding a couple of weeks to shipping times by avoiding the $600K cost of using the Suez Canal. In a world focused on Enterprise Resource Planning supply chain solutions this is surely high irony. the above chart of the Baltic Dry Index explains why.  The Baltic Index is the price of renting ships to ferry freight. It has in a word collapsed. Even the dead cat bounce to 2,000 has lost steam, no pun intended. The hyper link will take you to the article in the WSJ. 

    This certainly has ramifications for vaunted globalization. Consider

    Shipping has slowed so that conserving fuel cost is more important than Just in Time JIT Delivery, another new theory dies a hard death. 
    Shipping has slowed since demand has slowed which has idled factories in Eastern Europe, and everywhere else but
    And so Western European loans to Eastern Europe have soured
    As Eastern European currencies have tanked which
    Yes has led to less confidence in the Euro which
    has further boosted even the US Dollar with all our mortgage problems, think Iceland freezes up…

    Deflation Rules

    but, now a Maersk ship has been taken by pirates, the cost of shipping is going up.

    Our Secretary of State has announced that the US intends to resole the issue without the loss of life, no doubt this is reassuring to Pirates everywhere, this is not, students, the way Thomas Jefferson handled essentially the same situation. 
  • Professor Elam

    Ford is trying something new to re introduce its Fiesta line of small cars. After asking for video submissions, Ford is giving 100 Feistas to young folks for six months. Those 100 will be postin gtheir impressions, good and bad, on You Tube, Flickr and Twitter, all personal sites. 

    Ford has not control over what gets posted, let's hope a sense of good taste prevails but what about criticism. Ford Sales was skeptical but when young sons and daughters of Ford dealers endorsed the idea, Sales came around. 

    4,000 submissions were viewed 640,000 times online. Now think about that, it cost Ford next to nothing, zero, other than advertising the contest, okay that cost something, but think what it would have cost to get 640,000 to read newspaper ads, no wonder the SA Express News is downsizing. Ford picked winners based on 'social vibrancy' how well they were followed on line and web creativity and video skills. 

    Ford realizes they are running behind the Japanese brands. But this is a bold move, Ford after all is a prime advertiser of American Idol, they are trying. Will it work, the Fiesta is indeed a good small car. And it appears this is an inexpensive way to connect. The big message though is that if this works, how long before car companies ditch the Saturday classified in favor of on line ads, Nissan considered doing just that this past year. 

    The times they are a changin.