Thursday, March 2, 2017

THEY TOOK A BEAUTIFUL AND PROSPEROUS COUNTRY, AND THEY RUINED IT.

Caracas burning 

I am discussing Venezuela, one of my pet peeves. Venezuela going bankrupt  Beginning with the infamous Hugo Chavez in 1999 and continuing with his chosen successor, the bungling and poorly educated Nicolas Maduro, the once thriving Venezuela has been turned into a disaster zone.  Theses two close-minded Marxist fanatics have torn their country apart in their desire to forcefully implement a Socialist fantasy that has failed every time it's been tried!  Chavez was an educated man and made some effort to keep his country from falling to pieces, he made an effort to keep at least the appearance of good governance. Perhaps, I've given Chavez too much credit; when he came into office there was still some wealth and industry in Venezuela, which he promptly began destroying. On the other hand, Maduro is a barely literate Communist fanatic that doesn't know much about anything, but he rules with an even harsher iron fist than Chavez.

Part of the problem is that Chavez enjoyed great popular support from a large percentage of the voters. Many of the poor, especially the indigenous "Indian" peoples, felt abandoned by the world and saw a hero in Chavez with his populist rhetoric. When Chavez began dismantling institutions: the courts, the legislature, the press, industry, and private property, many people believed it was all in an effort to bring justice and equality to everyone. After the death of Chavez, people began to view Maduro with a different light. Maduro is not as charismatic as his predecessor, nor is he even half as competent..  He has stumbled, fumbled, and bungled his way through his time in office, and Venezuela is now in serious trouble..

The best thing that can happen is the immediate removal of Maduro from office, and the dismantling of all the failed and nonsensical Socialist policies that have brought the nation to the brink of ruin. Socialism does NOT work as an economic system; it never has and it never will. It removes the incentive for people to work hard or excel, and eventually an economy will collapse from people not being productive. This is what happened in Eastern Europe and the USSR, and this is what has occurred in Venezuela.

Tuesday, February 28, 2017

BIG BOX RETAILERS ARE FEELING THE INEVITABLE BITE OF INFLATION AND THE INTERNET

The out of control inflation that is sickening our nation's economy is having a drastic impact on "big box" retailers. This terrible scourge of inflation is eating away at the public's disposable income, and this leave people less money to spend on shopping. Inflation makes it appear that prices are on the rise, but in reality it is people's money that is losing its buying power.

The Internet and on-line shopping have of course had a tremendous impact on the market and the way in which people shop  However, the middle class has always looked for both value and quality when shopping, this means that everyone is not flocking to budget or discounts shops like Walmart.  Amazon will never have the sex appeal of Victoria's Secret. Personally, I dread the thought that Walmart will dominate every facet of the marketplace.

Regardless of Amazon's or Walmart's market share, if things continue the way the are and the Inflation bubble is not corrected, even modestly priced stores like Target will continue to lose ground.


Monday, February 27, 2017

BOSS VS LEADER, OR PERHAPS MANAGER VS LEADER



Over the past few years there has been a growing discussion over leadership styles, with various writers phrasing the issue as “Boss vs Leader”. For the purposes of this article, in order to keep clearly defined terms, the argument will be phrased as “Manager vs Leader”. Within the article the term “manager” will be used to denote persons responsible for guiding an organization. There are several good reasons why this is an appropriate nomenclature, all of which will become more evident as the discussion progresses. The terms Boss, Manager, and Leader will be defined and described as to how they fit within an organization. The graphic below will serve to initiate this discussion.  

 

The above picture is ubiquitous on the Internet, it comes in all sorts of shapes, sizes, colors, and decorations, but the information is the exact same. As can be quickly observed, most of the differences are based strictly upon charisma and personality. How does the term “Boss” fit into the structure of an organization? For the various Internet authors, “Boss” is used as a pejorative to denote anyone lacking in personal charisma.  Anyone holding a position of even the slightest authority can be called “boss” by their co-workers; therefore the term itself becomes vague and generally useless for the purposes of this discussion. A “manager” is defined as someone with a formal position within an organization (from assistant supervisor to CEO or business owner) who has the responsibility and authority to carry out the duties of that position. A manager derives authority because of his official position. A “Leader” is not an official position; rather it is someone who people desire to follow because of perceived personality and character traits.

There is a legitimate question of how effectively managers lead their organizations through their personal mannerisms.  Some issues are quite obvious; nobody wishes to hear their supervisor or company executive exclaim “You need to do what I tell you because I’m the boss around here!”, nor does anyone wish to experience abusive or condescending behavior in the workplace. It is assumed that astute managers desire a harmonious work environment in which their employees can be motivated to work at their full potential.

The study of management and leadership began during the late 1800’s, the University of Pennsylvania has the distinction of being the very first university to offer a degree program focused in this field. The early researchers began their examination by looking at the different characteristics of military and business leaders. They were able to discern different tasks or functions that are common to all authority figures or “managers” in carrying out their duties.  The Five Functions of a Manager, as any business school student can recite, are as follows: Plan, Organize, Direct, Control, and Communicate (Many authors use the term “Staffing” as the fifth function; however, for several good reasons, I prefer to use the term Communicate). How a manager carries out these various functions is the basis for this discussion of Boss vs Leader.

Each of the Five Functions of a Manager requires a different set of skills and knowledge, and different people will approach them in different ways. Below is an explanation of each of the terms.       


  • Planning: CEOs and business owners must decide on the future of their organizations by carefully planning in advance. Hypothetically, the CEO of ABC company decides to expand operations into the Southern US. The CEO will issue a statement to the effect “We find opportunity in the South, and expect to expand operations soon.”
  • Organize: After plans are decided upon, managers must organize resources (both personnel and material) in order to reach whatever plans or goals have been made. Continuing from the previous example, the CEO of ABC company decided to expand operations to the Southern US. The CEO must now organize company assets by hiring additional employees, moving assets to the South, leasing office space, or doing whatever else is needed to accomplish the company’s goals.
  •  Directing: This can also be called Commanding or Leading, the manager directs employees by issuing orders. How a manager goes about directing employees is of the utmost importance, and it will depend on a great many factors.  For example, the CEO of IBM directing the Vice-President of Finance to sell some stock in order to raise working capital will use a very different sort of language than the manager of a fast food restaurant directing a rebellious teenage employee to clean the bathrooms.
  •  Controlling: Managers control their company’s resources in order to ensure goals are being met. This is another area in which everything will depend on the situation. The manager of a car dealership may control employees by setting quotas. For example, an underperforming employee may be warned “If you don’t sell three more cars by the end of the week, you’ll be looking for a job”.  A manager may have to address an employee that’s being distracted by personal issues. Example “Get off the phone, and pay more attention to your work”
  • Communication: A manager must communicate constantly, both internally to employees and to external stakeholders. The most successful and effective managers are able to communicate very effectively.
Given the various functional areas of management, and the wide spectrum of organizations and circumstances, it is clear that different managers will be focused on certain of the Five Functions. From the examples above, the CEO of a large company will be focused almost exclusively on Planning. Organizing, and Communicating, with little time to Direct or Control employees and assets. A department manager at the local department store will be focused on Directing and Controlling, with little opportunity for anything else.

Taking into account all the information discussed above, it becomes apparent that an individual manager will adjust their management style depending on the situation. Generally speaking, there is no one with an absolute personality of evil Boss or saintly Leader; everyone has some mixture of both personality traits and everything will depend on a given situation. It should be emphasized that the best leadership style is the one that is appropriate to the situation and will motivate employee to reach their fullest potential.

Wednesday, February 22, 2017

BOSS VS LEADER

There are all sorts of articles on the Internet trying to compare the qualities of a "Boss" and a "Leader". Much of what has been written seems copied from one author to the next. For my next article, I will explore the different leadership styles, and provide some clarity on how they function in an applied basis given different scenarios.
Stay tuned my dear friends, the article should post within the next few days.

Friday, February 17, 2017

THE POWER TO TAX IS THE POWER TO DESTROY

"The power to tax is the power to destroy" is the classic American expression, it originated from an 1819 Supreme Court  decision. What does this mean? It means exactly what it says: the ability of a government to levy taxes gives that same government the ability to destroy an industry or an entire economy. When governments want to destroy an industry, but banning the industry would be unpopular with the voters, they can simply tax the industry to death. It has been done many times, for example, many states have harsh cigarette taxes that are so onerous many people have difficulty affording their habit. On the other hand, governments can do inadvertent damage by carelessly taxing industries. The perfect example of a bad tax came during George H. Bush's administration. He made the now infamous statement "Read my lips, no new taxes", but Congress didn't get the memo. They forced Bush to raise taxes on luxury items such as yachts. Soon enough, the yacht building industry in the US was utterly destroyed.

Today we have a war on food. Governments are picking and choosing what is appropriate for people to consume. Philadelphia is the first city in the nation to impose a "soda" tax, and business is already dropping. Why are governments making such decisions? It should be left to the individual to decide what he/she wishes to consume. People have been eating and drinking for thousands of years without any problems. But wait, here come concerned politicians looking at the the next election and all of a sudden they know whats good for everybody.

Today, they are targeting soda. Tomorrow the target for a destructive tax could be coffee, rice, bread, alcohol, meat, or vegetables. The politicians have a powerful tool, and they are all too eager to use it.
Politicians have declared war on soda