THE ENTERPRISE--Incredible Uncertainty
A "LOST WEEK"--BUT PART OF THE "CIRCLE OF LIFE"
I had this edition all written a week ago... ready to send out. Then we got the call on Sunday that if my wife wanted to "say goodbye" to her Mother (age 92), we'd better get to IL FAST. So we threw things in the car Sunday and went. I took my iPhone but not a laptop. We were not sure if we were making a fast 2-3 day trip or a funeral trip. Her Mom died Monday at noon, so we spent 4 glorious days in Rockford IL waiting until the church became available for the funeral-Friday. It seems a lot of people die in Rockford in the winter and the church she belonged to is in a neighborhood with an aging population.
A WARM GOODBYE--BUT FRIGID WEATHER
As it turned out, Maureen had a very good, goodbye visit with her mother (like I had last Feb. in IL with my sister before she died). Of course Rockford had about 10-12 inches of snow on the ground, and more came almost daily until mid-week when the temperatures dropped below zero--way below zero. Thurs. night was the ultimate: -23 degrees, without any wind chill factor. Wed.-Fri. the high was about zero. Wow--that is COLD. Since my Mother-in-law's quality of life had slipped badly, this, like many old folks, was probably a blessing for her. After the funeral and burial Friday (no we did not go outside to the grave site--we were in a Mausoleum for the services), we had a luncheon with family and friends and embarked on the 500 mi. drive home. Got back last night at 11PM, to Columbus where it was a balmy -9 degrees.
I'd better get at least one edition out this weekend, since I have a crazy travel schedule for the next 2-3 weeks. No telling when the next one will hit the airwaves.
SURVEY RESULTS
Thanks to those who responded. Conclusions. Keep it weekly (more or less); don't charge (although many were willing to pay); don't sell advertising (intrusive), and as far as content, a little less politics, and a little less length and more "business" info and ideas. Guest input and material is OK if well selected. Since this one was essentially compiled before all the responses were tallied, it is what it is. Here goes.
WHEN I FIND GOOD STUFF--I'LL PASS IT ALONG
Normally I would dig through the pile of clippings I saved, that were all marked up with what I thought was significant, and compile THE ENTERPRISE. Not so this week.
First I received a link to a marvelous video from my friend Admiral Ed Straw. I have posted it further down the page, and I heartily encourage you to paste the link in your browser and watch it. I will bet you forward it to friends and family, and maybe more than that.
Then I was reading my email from Betsy McCaughey, Chairman of the Committee to Reduce Infection Deaths (RID), which contained her very recent WSJ article on Infections and the incredible impact they have--and how badly our medical community is managing this huge problem. That one is posted at the end of this issue. I encourage you to make sure it goes to anyone you know in the medical community or who serve on medical-related boards.
Finally, the piece posted below is from the WSJ's web site and a week ago Friday's print edition, page W-11. It's kind of buried at the back of the Weekend section of the paper, so I feared you might not come across it, even if you are a regular WSJ reader. In it, Stephen Moore does a great job of recapping what I have been saying for a long time--in THE ENTERPRISE. We are "living" ATLAS SHRUGGED. Ayn Rand's legendary novel is a half-century old, but right on target.
Since it is winter in much of the country--that season where we either get stuck in our homes (if we are lucky) or in airports and on planes (if we are not), I urge you to buy a copy of Atlas Shrugged and read it. (Don't buy the small paperback copy unless you have great vision--the print is just too small. Buy the larger 6x9 trade paperback format--you'll be glad you did.) Here's a link: http://www.amazon.com/s/ref=nb_ss_gw?url=search-alias%3Dstripbooks&field-keywords=Atlas+Shrugged&x=0&y=0
I honestly don't know exactly what we should be doing to "unwind" this debacle we are in the middle of. I suspect it involves the same things as any problem: 1) Understand and define the problem and 2) Solve the problem. Easy to say; not so easy to do. But a return to the basics of our capitalistic free enterprise systems and our Federal democracy, with many rights reserved for the states and citizens might be a good starting place.
Someone in key positions in Washington must begin to realize that only through wealth creation can we truly begin to "dig out." Wealth redistribution won't do it. Government largesse won't do it. Both incite the wrong behaviors and make things worse. Perhaps we should find a way to et Rand's book in the right hands at the White House. Will President Obama have time to read a 1000 page novel? I doubt it. Has he read it? I doubt that also. Perhaps the right hands are those of his wife, the First Lady, Michelle Obama. She is very bright, and while she'll be busy, I'll be she gets stuck on some long plane flights.
Does any reader have a direct "entry point" to get a copy of Atlas Shrugged in her hands? Somehow, just sending her one from amazon doesn't seem like it will do much good--but who knows--it might. Ideas?
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* OPINION: DE GUSTIBUS By STEPHEN MOORE
* JANUARY 9, 2009
'Atlas Shrugged': From Fiction to Fact in 52 Years
Some years ago when I worked at the libertarian Cato Institute, we used to label any new hire who had not yet read "Atlas Shrugged" a "virgin." Being conversant in Ayn Rand's classic novel about the economic carnage caused by big government run amok was practically a job requirement. If only "Atlas" were required reading for every member of Congress and political appointee in the Obama administration. I'm confident that we'd get out of the current financial mess a lot faster.
Many of us who know Rand's work have noticed that with each passing week, and with each successive bailout plan and economic-stimulus scheme out of Washington, our current politicians are committing the very acts of economic lunacy that "Atlas Shrugged" parodied in 1957, when this 1,000-page novel was first published and became an instant hit.
Rand, who had come to America from Soviet Russia with striking insights into totalitarianism and the destructiveness of socialism, was already a celebrity. The left, naturally, hated her. But as recently as 1991, a survey by the Library of Congress and the Book of the Month Club found that readers rated "Atlas" as the second-most influential book in their lives, behind only the Bible.
For the uninitiated, the moral of the story is simply this: Politicians invariably respond to crises -- that in most cases they themselves created -- by spawning new government programs, laws and regulations. These, in turn, generate more havoc and poverty, which inspires the politicians to create more programs . . . and the downward spiral repeats itself until the productive sectors of the economy collapse under the collective weight of taxes and other burdens imposed in the name of fairness, equality and do-goodism.
In the book, these relentless wealth redistributionists and their programs are disparaged as "the looters and their laws." Every new act of government futility and stupidity carries with it a benevolent-sounding title. These include the "Anti-Greed Act" to redistribute income (sounds like Charlie Rangel's promises soak-the-rich tax bill) and the "Equalization of Opportunity Act" to prevent people from starting more than one business (to give other people a chance). My personal favorite, the "Anti Dog-Eat-Dog Act," aims to restrict cut-throat competition between firms and thus slow the wave of business bankruptcies. Why didn't Hank Paulson think of that?
These acts and edicts sound farcical, yes, but no more so than the actual events in Washington, circa 2008. We already have been served up the $700 billion "Emergency Economic Stabilization Act" and the "Auto Industry Financing and Restructuring Act." Now that Barack Obama is in town, he will soon sign into law with great urgency the "American Recovery and Reinvestment Plan." This latest Hail Mary pass will increase the federal budget (which has already expanded by $1.5 trillion in eight years under George Bush) by an additional $1 trillion -- in roughly his first 100 days in office.
The current economic strategy is right out of "Atlas Shrugged": The more incompetent you are in business, the more handouts the politicians will bestow on you. That's the justification for the $2 trillion of subsidies doled out already to keep afloat distressed insurance companies, banks, Wall Street investment houses, and auto companies -- while standing next in line for their share of the booty are real-estate developers, the steel industry, chemical companies, airlines, ethanol producers, construction firms and even catfish farmers. With each successive bailout to "calm the markets," another trillion of national wealth is subsequently lost. Yet, as "Atlas" grimly foretold, we now treat the incompetent who wreck their companies as victims, while those resourceful business owners who manage to make a profit are portrayed as recipients of illegitimate "windfalls."
When Rand was writing in the 1950s, one of the pillars of American industrial might was the railroads. In her novel the railroad owner, Dagny Taggart, an enterprising industrialist, has a FedEx-like vision for expansion and first-rate service by rail. But she is continuously badgered, cajoled, taxed, ruled and regulated -- always in the public interest -- into bankruptcy. Sound far-fetched? On the day I sat down to write this ode to "Atlas," a Wall Street Journal headline blared: "Rail Shippers Ask Congress to Regulate Freight Prices."
In one chapter of the book, an entrepreneur invents a new miracle metal -- stronger but lighter than steel. The government immediately appropriates the invention in "the public good." The politicians demand that the metal inventor come to Washington and sign over ownership of his invention or lose everything.
The scene is eerily similar to an event late last year when six bank presidents were summoned by Treasury Secretary Hank Paulson to Washington, and then shuttled into a conference room and told, in effect, that they could not leave until they collectively signed a document handing over percentages of their future profits to the government. The Treasury folks insisted that this shakedown, too, was all in "the public interest."
Ultimately, "Atlas Shrugged" is a celebration of the entrepreneur, the risk taker and the cultivator of wealth through human intellect. Critics dismissed the novel as simple-minded, and even some of Rand's political admirers complained that she lacked compassion. Yet one pertinent warning resounds throughout the book: When profits and wealth and creativity are denigrated in society, they start to disappear -- leaving everyone the poorer.
One memorable moment in "Atlas" occurs near the very end, when the economy has been rendered comatose by all the great economic minds in Washington. Finally, and out of desperation, the politicians come to the heroic businessman John Galt (who has resisted their assault on capitalism) and beg him to help them get the economy back on track. The discussion sounds much like what would happen today:
Galt: "You want me to be Economic Dictator?"
Mr. Thompson: "Yes!"
"And you'll obey any order I give?"
"Implicitly!"
"Then start by abolishing all income taxes."
"Oh no!" screamed Mr. Thompson, leaping to his feet. "We couldn't do that . . . How would we pay government employees?"
"Fire your government employees."
"Oh, no!"
Abolishing the income tax. Now that really would be a genuine economic stimulus. But Mr. Obama and the Democrats in Washington want to do the opposite: to raise the income tax "for purposes of fairness" as Barack Obama puts it.
David Kelley, the president of the Atlas Society, which is dedicated to promoting Rand's ideas, explains that "the older the book gets, the more timely its message." He tells me that there are plans to make "Atlas Shrugged" into a major motion picture -- it is the only classic novel of recent decades that was never made into a movie. "We don't need to make a movie out of the book," Mr. Kelley jokes. "We are living it right now."
Mr. Moore is senior economics writer for The Wall Street Journal editorial page.
Copyright 2008 Dow Jones & Company, Inc. All Rights Reserved
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NEW THOUGHTS COMING
A preview of where my mind is wandering as I catch up on a week's worth of mail, newspapers, magazines, and emails. The most important topic to deal with right now is MANAGING IN THE MIDST OF UNCERTAINTY. I know, uncertainty has always been around. But never has it been so pervasive, so widespread and far reaching. Think about the level of interconnectedness and uncertainty in our global arena:
- GREED & STUPIDITY: Greedy lenders in the USA, aided and abetted by irresponsible Congressional leaders, loaned money to millions who couldn't shouldn't ever have tried to own a house. Worse yet, speculators jumped in and started leveraging and flipping houses like selling penny stocks. Until they wouldn't sell any more. Housing values tanked. Loans were defaulted. Mortgages failed and properties foreclosed. Housing starts tanked even worse and excess inventory of homes and depressed values hammered the housing industry.
- DECEPTION AND FRAUD: Since banks sold these irresponsible mortgages bundles with a few good ones (like bushels of rotten apples with some good ones on top for show), the credit problems spread worldwide. Europe, whose financial institutions had already used more leverage than the US starts tanking too. A global credit crisis hits, followed closely by a banking and insurance crisis. Oil climbs crazily to near $150/bbl., stressing everything downstream.
- IRRESPONSIBILITY AND MISCONCEPTIONS: All because people acted irresponsibly and stupidly. Everyone cannot and should not be able to own a home. Only those who can afford one should. Every youth should not, and does not deserve to go to college. Only those with the desire, the commitment and the intellect--and hard work to achieve--deserves to go to college. But that's not a tragedy. There are millions of good jobs going unfilled. Technicians, practical nurses, orderlies, plumbers, carpenters, elder care aides, mechanics, truck drivers, call center operators, etc. etc. None of these jobs require college, but all are valuable, important and most have shortages. What happened to the "proud trades person?"
- FEAR AND ANXIETY: Debt laden consumers start losing jobs in housing related industries, become scared and cut back on spending. The home equity line is no longer a bottomless credit card cache. Consumers start cutting back spending and over-retailed stores start failing and closing, which causes more job losses. Suppliers to retail are now losing business so they order less--from China and all over.
- GLOBAL CASCADE: Slowing of consumer demand from developed nations resulted from the above. This slows the economy of China and other LDCs thus reducing demand for oil, steel and other commodities causing the speculator driven pricing to collapse to where oil drops below $50/bbl. China has money, but needs business. India has money, but when trade slows dramatically, results drop, causing fraudulent reporting of income.
- MILITANT UNREST EVERYWHERE: North Korea and Cuba have aging and infirm leaders, which leads them to flip flop on positions, reflecting the uncertainty in a time of transition. Hugo Chavez' false petro-power is waning. Israel tires of Hamas' raining rockets and attacks. Iran's economy is suffering and the oil price collapse worsens it, making Ahmadenijad's reelection as President less likely, but the "mullahs" still really rule Iran. The Taliban are emboldened by the lack of development of an independent Afghani military lacking sufficient "NATO allies forces" to keep order. The US concentrates on an "orderly" withdrawal from a newly, more peaceful Iraq--hoping that its withdrawals doesn't reopen sectarian violence all over again. Russia's newfound "oil wealth" dissipates, leaving only a hollow belligerence.
- POLITICIANS PLAYING ECONOMISTS & SANTA CLAUSE (OR ROBIN HOOD?):The powerful US economy stumbles along, finding new disappointments daily in earnings, asset values and the worth (or integrity) of companies. The government pushes to stimulate the economy out of recession and looming deflation with massive infusions of money--all created out of thin air and debt. It is a necessary stimulus--like a shot of pure adrenalin--but how and where to apply it, how to use it and what to do if/when it doesn't work, because it is misused, wasted, etc. is a frightful dilemma. Following this kind of debt and monetary infusion, inflation must necessarily follow--but not until a recovery begins.
THERE IS NO DOUBT THAT OUR NEW PRESIDENT FACES UNPRECEDENTED CHALLENGES
Ironically, it is my prediction: that Obama's greatest problems will not be a resistant Republican minority in Congress, but a foolish, bickering, power-hungry and inept Democratic majority. When new Senators such as Roland Burris, possibly Al Franken and Caroline Kennedy are part of the group who much lead our country through these turbulent times we are in BIG TROUBLE, indeed.
WE MUST PERSEVERE--AND TO THAT END---
My good friends Admiral Ed Straw and Ron Loveless both sent me this link. It is for those who want to re-think their potential, how they view what they can and cannot do, and how good (or bad) they have it in life. DO NOT MISS THIS ONE... CLICK ON IT ... OR PASTE IT IN YOUR BROWSER!
http://www.maniacworld.com/are-you-going-to-finish-strong.html
My question for you is "Are you going to finish strong?" AND is America going to 'FINISH STRONG?" DOES IT HAVE THE WILL? AND IS IT WILLING TO MAKE THE SACRIFICES? 2009 and 2010s are the years that we can choose, to get up or not, and to finish strong, or not. What we will do it the greatest uncertainty of all.
All the best, JOHN
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SPECIAL NOTE: he following article from RID and the WSJ is for everyone to forward to their friends and send to their hospitals. Tens of thousands of people die each year because of infections they get while in the hospital. The number is virtually unmeasurable because so many of the infections start in such insidious ways, that no self-respecting hospital would admit to being so negligent.
January 08, 2008
Hospital Scrubs Are a Germy, Deadly Mess
Bacteria on doctor uniforms can kill you
By BETSY MCCAUGHEY
You see them everywhere -- nurses, doctors and medical technicians in scrubs or lab coats. They shop in them, take buses and trains in them, go to restaurants in them, and wear them home. What you can't see on these garments are the bacteria that could kill you.
Dirty scrubs spread bacteria to patients in the hospital and allow hospital superbugs to escape into public places such as restaurants. Some hospitals now prohibit wearing scrubs outside the building, partly in response to the rapid increase in an infection called "C. diff." A national hospital survey released last November warns that Clostridium difficile (C. diff) infections are sickening nearly half a million people a year in the U.S., more than six times previous estimates.
The problem is that some medical personnel wear the same unlaundered uniforms to work day after day. They start their shift already carrying germs such as C.diff, drug-resistant enterococcus or staphylococcus. Doctors' lab coats are probably the dirtiest. At the University of Maryland, 65% of medical personnel confess they change their lab coat less than once a week, though they know it's contaminated. Fifteen percent admit they change it less than once a month. Superbugs such as staph can live on these polyester coats for up to 56 days.
Do unclean uniforms endanger patients? Absolutely. Health-care workers habitually touch their own uniforms. Studies confirm that the more bacteria found on surfaces touched often by doctors and nurses, the higher the risk that these bacteria will be carried to the patient and cause infection.
Until about 20 years ago, nearly all hospitals laundered scrubs for their staff. A few hospitals are returning to that policy. St. Mary's Health Center in St. Louis, Mo., reduced infections after cesarean births by more than 50% by giving all caregivers hospital-laundered scrubs, as well as requiring them to wear two layers of gloves. Monroe Hospital in Bloomington, Ind., which has a near-zero rate of hospital-acquired infections, provides laundered scrubs for all staff and prohibits them from wearing scrubs outside the building. Stamford Hospital in Connecticut recently banned wearing scrubs outside the hospital.
Across the pond, a British study found that one-third of medical personnel did not launder their uniforms before coming to work. One British surgeon who specializes in hip and knee replacements reduced postoperative infections by two-thirds at her hospital by protecting patients from contaminated uniforms. Before approaching any patient's bed, nurses put on disposable, clear plastic aprons that were pulled off rolls like dry cleaning bags. Each one costs a nickel.
In response to this evidence and public outrage over infections, the cash-strapped British National Health Service is providing nurses with hospital-laundered "smart scrubs." The smart design includes short sleeves, because long sleeves spread germs from patient to patient.
The new British policy will protect patients and prevent superbugs from being carried outside hospitals. In one study, more than 20% of nurses' uniforms had C. diff on them at the end of a shift. The germ can cause extreme diarrhea, dehydration, inflammation of the colon, and even death.
In a hospital, C. diff contaminates virtually every surface. It spreads when traces of an infected person's feces get in another person's mouth. Patients who touch objects in their room and then eat without washing their hands unknowingly swallow the germ. Many otherwise healthy patients who go into the hospital for elective surgery, such as hip replacement, have contracted C. diff and died.
Outside the hospital, C. diff is also difficult to control. It isn't killed by laundry detergents or most cleaners. Researchers at Case Western Reserve and the Cleveland Veterans Administration Medical Center found that even after routine cleaning, 78% of surfaces still had C. diff. Only scrubbing with bleach removed it. That's not the kind of cleaning restaurants are prepared to do after serving hospital workers.
Imagine sliding into a restaurant booth after a nurse has left the germ on the table or seat. You could easily pick it up on your hands and then swallow it with your sandwich. Hospitals should provide workers with clean uniforms and prohibit wearing them in public.
Ms. McCaughey, former lieutenant governor of New York State, is a fellow at the Hudson Institute and chair of the Committee to Reduce Infection Deaths.
Learn more about RID's lifesaving work at www.hospitalinfection.org.
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John L. Mariotti, President & CEO, The Enterprise Group,
Phone 614-840-0959 http://www.mariotti.net
http://mariotti.blogs.com/my_weblog/
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