Why Couldn't Our Great Economists Have Foreseen This?

Okay, so I read today that IBM is laying off 4,000 people and off-shoring the jobs to India. This is nothing new and has been going on for quite a while now. Companies under pressure from stockholders to turn a profit and a big return on investments, have been moving jobs out of the country for years. I ask anyone to go to a store today and try to find an article of clothing Made in America. I had commented about an article that was written, I believe in Mother Jones about a reporter who tried to buy just American for a week and had great difficulty. Even in my own neck of the woods where the twin cities of New Bedford and Fall River were home to the textile industry saw all of that go away. Once humming factories have long since been converted to office space, apartments, outlet stores, or gone up in infernos fueled by floors soaked for decades by oil from sewing machines. In my lifetime, I saw the great Fall River Knitting Mills go the way of the dinosaur. They used to make great sweaters, but started to lose business from off-shore where they don't have child labor laws or worker's rights.
So rather than just getting product from overseas, they are now exporting whole jobs. It is more blatant, but guess what. There is nothing you can do about it. That's right nothing. What are you going to do to a company like IBM? Stop buying ThinkPads? Um, no, they sold that out to Lenovo. So what can we do? Nothing.
I hate to be a downer, businesses are in the business of creating profit and big returns for their investors. They outsourced a lot of manufacturing. What did they have left? Jobs. They have to turn a profit, that is what our culture demands. So they start cutting jobs to keep the returns via dividends coming. After all, when the economy takes a downturn, investors shouldn't take the hit. Cut executive salaries, are you nuts? Like Boston radio host Jay Severend said, and mind you, I don't agree with him or his ways, but happened to hear him talking about this, if you reduce executive salaries then the only people you will get to run the companies are some professors from Harvard. I think the point being made is that these guys know how to run a business but don't make the million dollar salaries. Well, maybe that is what we need. Because quite frankly these guys that are running the companies for million dollar salaries and bonuses to match, are driving companies in the ground. The unfortunate part is they are driving our economy into the ground also.
So, what I have to ask all these economic gurus that were saying how great things were as the DOW broke 13000, how long did you think this paradigm would work? At some point we had to reach that tipping point where we got rid of so many jobs that it started to affect retail sales. And of course, because companies are stuck in that old paradigm, just react in the same way they have been conditioned, they lay off workers. So even more people are put on the bread lines and guess what, retail sales go down, oh of course, execpt Walmart. So with sales down, profits down, what do companies do, the only thing left they can, lay off more workers.
Of course, at some point we had to hit the tipping point.
So this news about IBM putting 4,000 more workers on the skids and sending the jobs to India is just a continuation of the same old paradigm. Why can't we do anything? Well, besides these corporate execs not listening, IBM with the sale of its PC division to Lenovo got out of the consumer market. They sell services to corporations. Since sending jobs overseas allows them to sell those services for a lower price, corporations, their customers, are happy. Are you beginning to see how this paradigm is like a snake eating its own tail? At some point, you run out of tail.
So to hear people in shock about this economy, in shock about how retail sales are down, housing sales are down, car sales, in shock that we have to have yet another round of layoffs.
So what we need is a new paradigm. We need a way to get all these people back working. Unfortunately, until we do, we will just continue this spiral.
In the interim, maybe we should relearn the old ways. Start by planting mini-gardens. Be sure to use heirloom seeds so that you can keep your own seeds and be able to replant the next year. Learn how to can and preserve foods. Learn how to make your own bread. Our grandparents and great-grandparents survived the depression by coming together and helping each other. So until corporations get the bigger picture and stop being more concerned about investor returns and executive bonuses, than in what they are doing the economy, it is up to us to help each other.

Old Rockers Never Die......

Okay, while I have a few moments, I thought I would share what a great time we had this weekend. I heard a rumour that two rock legends were coming to one of the local venues, the Z in New Bedford. Now I had been turning my kids on to old rock and roll from the likes of the Coasters, Spinners, Beatles, Zappa, Alice Cooper and of course Edgar Winter. So when Edgar came to town with some unknown rocker by the name of Derringer, (just kidding) well my daughter prodded and pleaded. Oh, okay. So the four of us headed out to the Z to catch the show.

Now, I have gone back to playing guitar and started taking lessons with George Dussault. I thought that was a little intimidating as George is also an engineer, so a man who knows his music. Let me tell you though, when Rick started to let loose, I was really intimidated. Man, that guy can play! Then when Edgar Winter came out with his guitarist, Doug Rappaport, I was floored. Of course, George tells me he is going to see Jeff Beck and he could put them both to shame. Um, so I think I can play guitar. Well, okay, for myself and my family, LOL.

Anyway, the Z is a great venue as it is an intimate old theater that has been redone. The seats are horrible, but you soon forget your discomfort because you are right there. We were about six rows back and just far enough back from the speakers.

Let me tell you, I have never seen so many old people at a show since I took my mother to see Steve and Edie on their final tour. Oh, wait, I am one of those old rockers. Lindsey was commenting on how many were still wearing mullets. Hmmm, I don't think we really called them that. She said, "Dad, short hair in front and a pony tail?, Mullet!" Okay, kid, if you say so.

Rick Derringer came out first and put on quite a show. His bass player was a hoot. My kids really went wild when he played Rock and Roll Hoochie-koo. The whole place was rocking when he did his old McCoys tune, Hang on Sloopy. After that, he was my kids hero. Of course, that went up a notch when it was announced that Rick was out in the lobby signing autographs. Both of them were off in a shot. Sean came back all excited to have had him sign his ticket, but was hoping he would sign his shirt, but there were so may people. Lindsey took it up a step and had him sign her Ipod. She is getting a clear case for it to protect the signature. A Rick Derringer signed Ipod,hmmm wonder how much on Ebay? LOL. Well Lindsey came back quivering in excitement.

Lights go down and out comes Edgar Winter. Man, what a show. My wife had never really been a big fan of Edgar Winter, but after that show, she thanked me and told me she had a great time. Oooh points! She wants his new album out because she liked Texas Tornado and Power of Positive Drinking (with Clint Black). The album is Rebel Road. It was all good, but then he reached under his keyboard and pulled out a keyboard that he hung around his neck. Then he asked the crowd if they remembered a little ditty called Frankenstein. What a power house of a song. Edgar went from playing the keyboard to the sax, and then the drums. Just hearing that song live was worth the tickets. I all ready mentioned Doug Rappaport on guitar but Koko Powell on the bass was no slouch, and a newcomer on drums Jason Carpenter, more than held his own and did a smashing job.

Edgar did a version of Tobacco Road that must have lasted a good twenty minutes. At one point, he walked off the stage and left Doug to hammer out one hell of a solo. Then he came back on and started playing a game with each of them where he would do mouth music to make varying riffs and then either Doug, Koko, or Jason would try to copy it. Cindy loved it. She thought it was amazing that they could copy anything Edgar could come up with. Edgar finished out with a rousing version of We All Had A Real Good Time. The crowd went wild and he showed that he still had it after all these years.

I am heading back out to Sedona in September. I found out that he is going to be doing a concert with his brother Johnny, unfortunately at the beginning of the month, while I am going at the end. Ah timing.

The best part of this was when my kids hugged me and thanked me. Lindsey was still wound up about getting Rick Derringer's autograph. Hey, Rick, you still have that affect on girls. LOL. The best thing was, we all had a real good time.

I heard a rumor that McCartney and Ringo were getting together to do a tour. Now if I could score those tickets........