Tag: Business

The World Is Smaller

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I needed a piece of camera gear for an upcoming trip. After checking around, I decided to order a ‘grey market’ version. Grey market means it isn’t intended for sale in the US. It’s not covered by a US warranty.

That’s the only difference–except price. I saved around 35%.

My purchase on EBay from a ‘store’ in Hong Kong was made early Friday afternoon in SoCal. Eight hours later it was out-the-door and on its way. FedEx has a daily non-stop 747 from Hong Kong to Memphis, which is how it probably travelled.

My package cleared customs in Memphis then took another flight to LAX. By early this morning it was on a truck in Irvine, delivered to my door before 10:30 AM.

The world is smaller than I thought. I’m impressed.

It’s Labor Day

Here’s the problem with the whole corporate tax equation. Our tax structure was set up with the idea business would be the driver of employment. Business has decided that’s not part of the deal anymore. Companies offshore and automate and do so to save every penny.

George Jetson at WorkIt’s Labor Day.

I grew up in an apartment complex financed and built by Local 3 of the Electrical Workers Union. I joke now about its Soviet style architecture and warmth, but places like Electchester were needed. The workforce in post-WW2 America was growing like crazy.

Our softball league used to march down 5th Avenue in the Labor Day Parade. It was a big deal in New York City.

It’s not even held on Labor Day anymore.

Labor is vilified today. Unions, more evil still.

All this has come to mind after seeing a Facebook post (then online shouting match) about American corporate taxes. My blood began to boil. Instead of joining the flamewar, let me vent.

Here’s the problem with the whole corporate tax equation. Our tax structure was set up with the idea business would be the driver of employment.

Charles Wilson, a nominee for Secretary of Defense in the early 50s and former GM executive famously said, “I thought what was good for our country was good for General Motors, and vice versa.”

He was right… sixty years ago.

Business has decided that’s no longer part of the deal. Companies offshore, centralize and automate and do so to save every penny.

At your place of employment are there now fewer people doing the same work as a few years ago? My guess is yes. You’re not alone.

When I was a kid, George Jetson drove to work and immediately put his feet on his desk. Wasn’t that our expectation? The future would be less work and more comfort.

That’s not how automation has worked. We have not been augmented. We have been replaced.

The list of non-human jobs grows by the day. Versatile robots and driverless vehicles? Certainly within our lifetimes.

What truly wasn’t expected was the optimization of tasks. Computers have made this possible. Companies learned how to make workers much more productive. None of this is done to the laborer’s benefit.

There was once a class of middle managers who ran departments within stores. WalMart, Home Depot, Target and all the rest have learned how to massively manage from a central location. When stores like Caldors and Zayers closed, that level of job disappeared too.

I grew up in the age of strong labor. The middle class was a good place to be. Hourly employees owned homes.

Our current economic and tax structure can only support a nation of haves and have nots. There are already not enough jobs to go around. And it’s like that in nearly all the industrialized world.

We need to make a decision. What kind of society do we want and how will we make that happen? What level of need and poverty will we accept and for how many?

Whatever the answer is, it’s certainly not what we’re doing now.

Problem Solving Day. I’m Only One For Three!

Marquis, an Anthem CSR, told me there was a problem with the way my account was set up. He called back and left a number from which he cannot be reached. The recorded voice answered as Blue Cross of Georgia. Well played.

fridgeWe’ve got three accounts that have become pains-in-the-ass (Pain-in-the-asses? I never know). For two the problem stems from our wanting to pay! The other has to do with a refrigerator warranty and a receipt.

I have a moment to write while I await Anthem Blue Cross’s reply to my tweet. That’s what it’s come to. I’m tweeting for insurance help. There must be something in HIPPA that makes me a law breaker by now.

I have been attempting to get an autopay account set up for my insurance plan. The form asks for an account number. There is none on my card. There is none on my bill. The numbers on the card that aren’t called account number don’t work either!

Marquis, an Anthem CSR, told me there was a problem with the way my account was set up. He called back and left a number. The recorded voice answered as Blue Cross of Georgia. None of the options lead to him or his department. Well played.

I tweeted for help and was pointed to help@anthem.com. So far no response. Not even an automated ‘thumb sucker’ note acknowledging my message.

The second call went to my county’s tax collector. I spent thirteen minutes listening to mind numbing music and being reminded my call is very important. Important alone wasn’t enough to truly convey their feelings.

A tax bill I never received has gone past due. Life was so much easier where I could call and say, “Look… see how we’ve never missed a payment in 23 years?”

Now it’s paid plus a penalty. Great.

Finally there’s our refrigerator, a lovely LG. It’s started making noise and the freezer isn’t staying defrosted as it should. We’ve had it 13 months.

LG has agreed to extend the warranty (I sense this is a systemic problem they know about) with proof-of-purchase. In the tumult of moving we lost the receipt from Lowes.

After a dreadful time getting nowhere with the local store, I finally spoke to someone at the home office. The next morning received a receipt (with prices, but no specific items listed) via email.

I have enclosed copies of your purchase records as requested. It is sufficient for warranty and tax purposes.

When I presented it to Rick from LG he typed,

If I submit your case with this document this will be reject by upper management.

More emails will be sent. More calls to come. Why is it so difficult to make things right?

I’m one for three and that’s the one I paid with a penalty!

On Net Neutrality

It seems like the fix is in. Tom Wheeler, the FCC chairman was the cable TV industry’s chief lobbyist! He spent too many years selling their points of view to not be biased.

Internet-Service-ProvidersThe whole concept of the Internet is amazingly cool. Each piece of the Internet exists independently from the others. Data packets route themselves to go from computer-to-computer. If part of the Internet crashes the system automatically works around the problem.

There are potential bottlenecks where Internet service providers (ISPs) connect to the Internet’s backbone. Until recently more traffic meant the ISPs would install more equipment, in essence laying broader pipes. Now that’s changed.

Comcast, as an example, has extracted money from Netflix. Otherwise Netflix videos would would be slowed by congestion, becoming unwatchable for Comcast subscribers.

John Oliver did a much better job explaining this than I can. This video is full of NSFW language. Beware.

I had to look up my congressman to write him… twice.

Recently I sent a comment to Congressman Campbell concerning FCC proceeding 14-28, Protecting and Promoting the Open Internet. I am disappointed to have not received any reply from Congressman Campbell’s office–not even confirmation you received my email. I certainly want to know Congressman Campbell’s position.

I am adamantly opposed to any rule change which will allow ISPs to ‘double dip’ by creating fast and slow lanes and charge businesses for access I already pay for.

Geoff Fox
Irvine

It seems like the fix is in. Tom Wheeler, the FCC chairman (and of whom I wrote in 2007) was the cable TV industry’s chief lobbyist! He spent too many years selling their points of view to not be biased.

Maybe if the stink is big enough actual citizens can stop this travesty from taking place. That would be refreshing.

Comcast And AT&T: Gobble, Gobble, Gobble

Comcast wishes to become a vertically integrated behemoth. They will dictate programming and technology because their fingers are in every pie.

Even today they double dip, charging Netflix for services I’m already paying for. That’s what monopolies do! How can you say no to the company that stands between you and your customers?

New Haven Comcast officeComcast is in the process of swallowing Time-Warner. AT&T has just announced they’re purchasing DirecTV. Maybe I just haven’t looked closely enough, but where is the benefit to citizens?

The biggest trend in American business over the past few decades has been consolidation. Much of it is subject to regulatory approval. It should be subject to regulatory scrutiny. That part seems sorely lacking.

Comcast wishes to become a vertically integrated behemoth. They will dictate programming and technology because their fingers are in every pie.

Even today they double dip, charging Netflix for services I’m already paying for. That’s what monopolies do! How can you say no to the company that stands between you and your customers?

Comcast as every incentive to do more of the same, protecting their legacy businesses through the terms they offer consumers.

Will programming and distribution deals be structured, as many are now, to protect Comcast’s cable TV business? Why do I even ask?

There was a time in America when bigger was better. Charles Erwin Wilson, nominee for Secretary of Defense in the early 1950’s famously tried to hold onto his GM stock while in office&#185.

Because for years I thought what was good for our country was good for General Motors, and vice versa.

att_logoAnd maybe, sixty years ago, it was. Employment scaled up as company’s did.

Is there anyone who actually believes the Comcast or AT&T acquisitions will have a positive outcome for America? More choice? More employment? More investment? Better technology?

“This compelling and complementary combination will bring significant benefits to all consumers, shareholders and DIRECTV employees,” said Mike White, president and CEO of DIRECTV. “U.S. consumers will have access to a more competitive bundle; shareholders will benefit from the enhanced value of the combined company; and employees will have the advantage of being part of a stronger, more competitive company, well positioned to meet the evolving video and broadband needs of the 21st century marketplace.” – AT&T press release

The important part is there in the last sentence:

a stronger, more competitive company, well positioned

We’re already dealing with companies treading very close to the anti-trust line. Take the bundling of cable TV services, where I have to buy loads of channels I don’t want to get the ones I do.

Typically, the “tied” product may be a less desirable one that the buyer might not purchase unless required to do so, or may prefer to get from a different seller. If the seller offering the tied products has sufficient market power in the “tying” product, these arrangements can violate the antitrust laws. – Federal Trade Commission

The system is being gamed and these mergers and acquisitions will only make things worse. It’s time to put a stop to it.

&#185 – He sold his stock before his appointment, but after his confirmation hearing.

Donald Sterling And The Question

Donald-SterlingNBA Commissioner Adam Silver just held a press conference concerning the Donald Sterling controversy. Sterling’s been banned, fined and pressured to sell the team. The commissioner had no choice and I fully agree with his decision (as much of it as I know right now).

It is not a surprise there are mean spirited jerks running teams. Baseball had Marge Schott, who once defended Hitler. Basketball still has Nets owner Mikhail Prokhorov whose fortune came under ‘interesting’ circumstances.

Kremlin leaders gave him what amounts to an insiders opportunity to buy one of the state’s most valuable assets. It was acquired from the Kremlin in a so-called auction for the measly sum of a few hundred million dollars in a process that even Prokhorov’s business partner admits wasn’t perfect, and probably not even legal under Western standards. But it was legal in Russia”. – 60 Minutes

If you didn’t watch the press conference you probably didn’t hear this question asked toward the end. I don’t have the exact words, but a reporter asked Silver a question that began, “As a Jew…”

Silver is Jewish. Sterling is Jewish. I am Jewish.

Silver dodged the question. I won’t. As a Jew I am mortified. It’s not the first time.

Maybe I’m the naive one here. It’s how I was brought up. Maybe I shouldn’t expect more from any single group of people. I do.

There’s a limit to how much Sterling can be punished. He will be allowed to sell, not have his team taken. That is as it should be. However, it means Sterling will be capable of laughing all the way to the bank, should he choose.

Jerks like him are capable of that.

The TV Model Is Broken

I love television. I’m a student of the media. It was incredibly important in shaping who I’ve become.

TV’s model is broken.

There were seven channels in NYC when I grew up. Most cities had less.

No remote control. No DVR or VCR. You watched it when it aired. If two shows you wanted to see aired simultaneously–tough.

In 1960, Gunsmoke finished the season in first place:

1 Gunsmoke CBS 40.3 rating 65 share

That’s 40% of all homes and 65% of those homes where the TV was turned on!

Last week’s number one entertainment show was “Big Bang Theory.” It had a 5.1 rating.

In those more innocent days you had to be careful not to get hit by the falling bags of money! Not today.

Before WTNH was sold in 1985, Geraldine Fabrikant wrote this in the New York Times:

The jewel in the ABC-Capital Cities package is WTNH-TV, the Capital Cities station affiliated with ABC, that covers the New Haven and Hartford markets. Its 1984 net revenue was $24.9 million, and operating income was $14.6 million. That meant operating profit margins of 58 percent. During the past five years, the margin has never been lower than 58 percent, and it has been as high as 62 percent.

They took in $25 million at 8 Elm Street for an operation that cost $10 million to run!

Those days are long gone. Though the broadcast networks and their affiliates are still the dominant force, their audience is a fraction of what it was.

Technology has been the difference. The pie has been sliced into many more smaller pieces.

Whether they take advantage or not, most people are currently equipped to see shows without benefit of television. We’ve got computers and tablets and smartphones and they’re all very capable of video playback.

I knew Saturday Night Live was going to be good last night because I read tweets from the East Coast. Why did I have to wait to see the show? Only because it breaks television’s business model!

The same with this afternoon’s Cowboys/Redskins game. It wasn’t on in SoCal. I wanted to see it and did… don’t ask. Free and easy access to all the games breaks television’s business model.

We need local TV. We need local news and other local programming (scant as it is), but won’t have it for long unless TV stations find a new business model.

I can see a future where shows will stand on their own without a station or network. Netflix productions are a step in that direction, but why do you even need Netflix?

TV’s current model is broken. The more viewers realize it, the harder it will be to hold back the tide.

I Hate Preparing My Taxes

Of course the real problem is I always feel I’ve forgotten something or screwed up something. My favor? Their favor? Who knows? Any mistake is money plus or minus.

tax return info on the table.jpgFiling taxes! Is there anything we do more painful or difficult? I hate it and I’m getting a refund. I’d be suicidal if I had to cut a check as well.

For the past few years we’ve been using TurboTax. I logged in, found my account and then realized there are probably online coupons to save money. I found one and reentered the site, but it was too late. TurboTax would only allow me to pay the full price.

Helaine asked if it was worth it to try and undo the $3? No. But this is like the cell companies giving long messages on voicemail so you’ll use more minutes, right? TurboTax rakes in an extra $3 thousands… maybe hundreds of thousands of times. It adds up.

They also charge much more to do Connecticut’s taxes than the federal forms. Let me restate: They also charge much more to do Connecticut’s much shorter and simpler taxes than the federal forms! All the info and questions are already filled-in.
I guess their cost per filer is greater, but this is a little nuts–and by a little I mean a lot.

We only go through this once a year so it’s tough to remember the specific details, but the user interface seems to be a little more sophisticated, more helpful each year. It’s a mature app but they’ve found ways to improve.

Of course the real problem is I always feel I’ve forgotten something or screwed up something. My favor? Their favor? Who knows? Any mistake is money plus or minus.

As the process ends TurboTax invites you to use Mint. The choice is Helaine’s as she’s Secretary of our Treasury, but it might not be a bad idea.