SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Politics : Politics for Pros- moderated -- Ignore unavailable to you. Want to Upgrade?


To: Lizzie Tudor who wrote (14740)11/1/2003 12:51:15 AM
From: LindyBill  Respond to of 794367
 
I hopes the "Times" reads Brooks, reads Krugman, and begins to understand what how a good columnist operates.
_____________________________________________

November 1, 2003
Gephardt Beats Clinton
By DAVID BROOKS

Dick Gephardt strides into a family restaurant in Pocahontas, Iowa, and finds two species of mammals waiting for his campaign event, Iowans and reporters.

The 24 Iowans in this small room are unpretentious Midwesterners. There are farmers in dirty work coats. There are women in floral sweaters with gray hair, for they are as likely to color their hair as they are to sprout wings and fly to Mars. The Iowans are almost all elderly. (If you judged by the crowds at Iowa campaign events, you'd think the voting age was 70.)

The 23 reporters are from New York, Washington, London and such places, and are fully gadgeted up. We have phones, pagers, P.D.A.'s and various digital devices. We are 1,000 percent more likely than the Iowans to have college degrees, 10,000 percent more likely to think Jon Stewart is funny, and an infinite percent more likely to know what the words "Manolo Blahnik" refer to.

Dick Gephardt has brought the two groups together, but he is more one of them than one of us. He's from St. Louis, a city that has lost well over half of its population in his lifetime, and has spent his career as a party leader fighting for the Midwestern farmers and factory workers who have been on the losing side of economic history.

With reporters he is notoriously aloof and miserable, but you stick him in front of a bunch of retired union guys, and he radiates passion and sincerity.

His stump speech, which he hasn't altered since the start of the campaign, doesn't include anything on social issues or gun control. Instead, it's an unfurling of government programs: a drug program, a farm program, an energy program and so on. Like his hero Harry Truman, you can't get much more bread-and-butter than Dick Gephardt.

I judge these speeches by wheeling out the nod-o-meter. When a politician says something that directly touches the experiences and convictions of voters, you begin to see heads bobbing up and down in the audience.

Gephardt gets the heads bobbing when he tells the story of his son's nearly fatal bout with cancer and concludes, "People with health insurance get better treatment than people without."

But the issue that Gephardt is most passionate about, which gets the heads bobbing most vociferously, is trade. At the climax of his speech, Gephardt describes his visits to factory towns in Mexico and China, where he saw factory workers living in shipping boxes with raw sewage running through the streets.

He describes his meeting with Bill Clinton at which he told the president he would not support Nafta unless there were international standards built in. He ridicules his Democratic opponents for their primary-season conversions on the issue. Sure, they are against free-trade pacts now, he points out, "but I was there when the jobs were on the line!"

Heads are bobbing all around.

The fact is, he's won. For three decades the Democrats have been split on trade, but you'd never know it from this campaign. Just as the Democratic field is chasing Howard Dean on Iraq, it is chasing Dick Gephardt on trade — and repudiating Clinton. It is impossible to imagine the next Democratic presidential candidate pushing free-trade deals the way the last one did.

How has this shift happened? George Bush has played a role. Opposition to his policies has mobilized the liberals and quieted the Democratic centrists, pushing the party left on a number of issues. The unions have played a role. Under revitalized leadership, they've increased their influence on the party, if not the country.

But Gephardt has been crucial. If he had abandoned his position when the New Democrats were in vogue, or when Al Gore was crushing Ross Perot in debate, the protectionist side of the arguments would have collapsed.

Moreover, he's made his trade position politically palatable. He used to project himself as an economic nationalist — as the protector of American jobs against those low-wage foreigners. Now he presents himself as a global liberal, insisting on international environmental and worker standards before trade deals are signed. The policy results are the same — more trade barriers — but now it sounds more humane.

Put aside the merits of Gephardt's case — and personally I think free trade helps many more people than it hurts. Here is an unglamorous man who, after a lifetime's slogging, has brought his party around to his point of view.

That's sort of impressive.



To: Lizzie Tudor who wrote (14740)11/1/2003 2:30:34 AM
From: kumar  Read Replies (1) | Respond to of 794367
 
a true free market aka capitalism says lowest cost for maximum benefit.

Whats the beef about ???



To: Lizzie Tudor who wrote (14740)11/1/2003 9:31:17 AM
From: LindyBill  Respond to of 794367
 
Jack Welch tells it like it is.
________________________________

The 'But' Economy
Not every silver lining has a dark cloud.

BY JACK WELCH
Wall Street Journal

Guess what? There is an economic recovery under way, but you never would have known it last week when earnings reports came out. Even though many companies from battered sectors--including some companies left for dead just two or three years ago--recorded positive results, their successes were almost universally reported with the word but prominently featured. The stories in the papers and on TV went something like this:
• Sales were up--but analysts warned that cost cutting explained most of the gains.

• Earnings were up--but the mood of optimism was tempered by concerns about global competitiveness.

• Cash flow was up--but the company still faces harsh tests in coming months.

Now, I am not claiming that the economy is fixed. It's not. And there are, obviously, challenges ahead if a full recovery is going to occur. It's undeniable, however, that most companies are posting significantly improved results. Not only can millions of hardworking people celebrate--they should. They've earned the right. That's why we can't rain all over their efforts--their motivation and innovative spirit and can-do attitudes. Those good feelings, as any economist will tell you, are key drivers of company productivity and consumer confidence. The fact is a recovery will be a lot harder if we keep saying "but" about damn good news.

Two particularly glaring "but" stories from last week come to mind--Xerox and Lucent.

Xerox has been through the ringer. It's had accounting difficulties. It's paid millions of dollars in fines. It has experienced market-share erosion from product misses and noncompetitive costs, and its employees and shareholders have suffered. Two grueling years later, however, Anne Mulcahy and her team appear to be turning the ship around. The company reported that its earnings grew 18% in the third quarter. From the reporting on it, though, you would have thought the company was still taking on water. The good results, it was reported, mainly came from cost cutting. Of course they did! While innovation is the lifeblood of business, cost competitiveness is a given if you want to win in the global economy.

Lucent is an even more dramatic case. For the first time since March 2000--that's 10 quarters--the company actually posted a profit, thanks to the persistence and creativity of Pat Russo, her top team, and tens of thousands of employees. It was time for a party. But Lucent's turnaround was spray-painted with "but" this and "but" that. The company's good results were subjected to the usual harangue about telecom industry spending and attributed mainly to cost-cutting. Oh no--not that again.

The good news out of other sectors got much the same treatment. Time Warner, which has angered its shareholders for a couple of years now, reported increased revenues and operating income in the third quarter. That news was pretty much lost in commentaries about the continuing saga of the company's Internet activities. Meanwhile, Citicorp and a slew of other banking industry giants were showing sensational results. What did you hear? Reserve provisions for bad loans were down. This "but" could have actually been cast as "because." For instance, "Earnings were sensational because, among other factors, reserve provisions are down as a result of improved risk management and a stronger economy."

Of course, you have to wonder--why all the grumpiness? Why has every cloud got a dingy gray lining? There are probably many reasons but two come right to my mind.
Go back to 1999, the last year that positive results were routinely reported. There was no "but" economy grousing then. And that's exactly the problem. The media (and pretty much everyone else) believed that trees did indeed grow to the sky. Very few asked, "How solid are these results? How long can they last? Will these markets grow forever?"

When the bubble burst, a lot of people got burned--and not just shareholders. Many people in the media had hyped companies that flamed out because they were based on unrealistic business models or turned out to be rotten to the core. They felt burned too. Today, when the media reports good news, it feels safer to stick "but" in every sentence.

The other reason is political. Back in the days of Clinton-bashing, the ideological divide in the country seemed like it couldn't get wider. Well, it has. Bush-hating has pushed it to new levels. Never before have Democrats and Republicans been more vitriolic in their disdain for each other; it feels like war. And frankly, what would be worse for the Democrats right now than an economic recovery? That's an awful big battle to lose as the election approaches.

Now, I'm not suggesting "irrational exuberance" again. First of all, it's not warranted (yet), and giddiness about the economy didn't really help last time. And I'm also not asking that people forget what happened during the boom. Some companies and executives absolutely earned the right to get nothing but disrespect and doubt.

If we are ever to get competitive again, though, we can't indiscriminately put a negative spin on what is legitimately good news. We live in a global economy; India and China get stronger and better every single day. To have a fighting chance, companies need to get every employee, with every idea in their heads and every morsel of energy in their bodies, into the game.

The facts are, companies are not bricks and mortar, but people, with blood and sweat and tears. People are the reason for the recent recovery, and people are the reason it will continue--if it does. That's why we need to tell the people who have earned it not "but," but "Bravo."

Mr. Welch is former chairman and CEO of General Electric.
opinionjournal.com