Wednesday, March 28, 2007

Where's Marie and King Louie?

The link below refers to Circuit Cities announced work force reduction that targets store-level associates who make more then the average entry-level clerk.
http://adelphia.net/news/read.php?id=13565811&ps=1014&lang=en&_LT=HOME_BUNWC01L1_UNEWS

As you watch the continued decimation of the auto industry and other manufacturing sectors of the 80's you might have said to yourself, well at least we have retail to keep the economy purring.

In Feb 2000 Circuit City made a similar move to "dumb down" the work force that interfaces with the public. They did so as a defensive measure to imitate the then much stronger performing Best Buy. In fact, on Feb 5th of that year each store manager met with his/her top ten percent performing sales person and handed them their final check. Circuit City wrongly believed that the best way to compete with Best Buy was to imitate them.

The reason that was a flawed approach was threefold;

1) Location, Location Location,...Best Buy had a newer fleet of stores that were targeted in better parts of the markets they served. So, assuming that Circuit was successful in completely imitating Best Buy, the customer was left with no compelling reason to drive by the brighter, newer and in most cases bigger Best Buy to go to the dingier poor cousin Circuit.

2) Further the Differentiation,...If Circuit views the competitive landscape as a race to the cellar (lowest price, lowest service level wins) they still lose the game. If the model that can deliver these ever lower priced Consumer electronics is the winner then Costco or the Internet will eventually be the winner.

3) Those top ten percent sales staff were on commission. They always paid their way and then some. If they didn't provide the customer with an added value experience, they did not make any money. When did performance oriented pay plans go out of style? I guess it was about the same time board of directors decided to pay mindless amounts of dough for piss poor performance from CEO's.

There has been and always will be a market (a significant market) of those willing to pay a bit more for a bit more. The real question is between the flood unabated of cheap labor from a bordeless nation, these almost daily cowardly approaches to lower SG and A cost in the form of layoffs (except of course for the bloated CEO, and VP raises/perks) and the manipulation of the financial and energy markets who will be left with enough to buy anything.

Downward pressure on wages, productivity demands that seem to ask for less people not more from the existing staff, and the endless and ever-brash race of the "haves" to trample have nots to climb up the trough will be our undoing. It is the cost of taking God's concsious out of our souls in the name of money. The ever growing population of "used to haves" is going to be the end of our Republic and our economy.

The final irony is that when this game reaches it's logical course to conclusion....the "let them eat cakers" will meet Dr. Guillotine's invention (a truly productive way to sever the greedy from their myopic and short-sighted appendages).

Sunday, March 04, 2007

The Importance of World Deployed Middle Class

America's challenges home and abroad ALL share the same genesis and ALL share the same solution!

Iraq
Immigration
Long Term Economic Health


IRAQ-MEXICO and the SOON TO BE Middle-Class-less USA

Our nation has enjoyed unprecedented economic growth due to our economic, political and social structure. From 1940 to 1990 (50 years) that formula has been the political acknowledgement, financial strength, engagement, support and growth of a population that was middle-class centric. Extremist have been few because the majority of the population is not sitting in squalor nor oppressed. Extremist who have emerged have been rejected and quickly dispatched.

Since 1990 the sell out of the Middle Class, the wholesale auctioning of our assets, the decimation of key industries, and the erasure of our sovereignty is nearly complete. The dire consequences of this short-term nirvana has not been fully considered by all. Those in the power elite who suckle at the corporate and government teat only know the short-term feel good experience of such treasure looting.

The solution for amany of our maladies is rooted in a re-embracement of stability, grounding necessity and an engaged and watchfulness vibrant and loyal middle class. If those in power continue to ignore the will of the middle class they will beocme evermore unengaged and "at-risk" members of the society. An potential army of the disenfranchised.

IRAQ

The middle east already demonstrated what a large population of the disenfranchised people yield. Those that never see the wealth of national assets used for the benefit of its people will NEVER stand up to embrace a vision that has NEVER existed. Void of a middle class many Middle east countries cannot embrace individual liberty, responsibility and empowerment as the concept is as foriegn and intangible as those traveling though Willy Wonkas Chocolate Factory with the founder narrating concepts that seem too distant, too utopian, and too wierd. Purple Thumbs may just as well be the magical jelly bean that neer dissolves to a populace that has only experiences despot rulers, triabl war lords and subjegation. These despots choke on their nations wealth and contnually conjur up bizarre uses for this precious and finite capital. Unfortnuately, these same power brokers have done a fair job of allowing the masses to believe the evil USA has taken their loot. I wish it were possible to educate the Middle East about our trade deficit and let them see who as what.Hence, the lion-share of the population is neither inclined nor can be courted into standing up for an American driven vision of their future (our PR machine is impotent to correct this).

The populace has no ownership in a vision and has no faith in the tribal chiefs to look beyond their narrow and longstanding historical feudalism. These POTENTIAL stakeholders will be unmoved to rise up and create what has NEVER existed. Sadly, an internal blood letting (civil war) will be necessary so that those who are unable or unwilling to standup for a Willy Wonka vision the be coerced to stand up for self-preservation and hence compromise will be born out of terror, fear and ultimately pragmatic self-interest.

We (America) are in the way.

All is not lost; we have made a major contribution and an appropriate one to be sure. We ousted Suddam. Since we propped him up, it was only fair for us to provide this opportunity for the Iraqi's. If Iraq is to become more than 3 to 8 tribal sub-sets of a nation, it will fall on the people to shed their heritage, historical handicap of subjugation and create for themselves what nation they are willing to create for their children

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It would be prudent for them to consider the history of what an empowered middle class can accomplish, but it will be what it will be.

MEXICO

Mexico; another nation grounded in the haves and have nots...with no middle class to speak of. Apparently the only viable option available to the stake-less is to come to America. The PRI has no interest in a vision of a thriving populace who share this nations massive natural resources. They advocate for the self-serving and self-incarceration of the status quo. The leadership is relieved to have an export strategy for those that cannot find viable lives of commerce in Mexico. The added bonus is that due to the cultural strength of Mexican citizens who do travel to America send money back home (in the billions) to their family members.That works great for Mexico today, and for the illegals who migrae here, but what happens when the weight of social costs, eductaional dumb-down and splintered culturaism (acclimating is no longer in STYLE) brings havoc to the USA. What happens when the current siege of the middle class in America turn the USA into Mexico...do they go to Canada?

Our collective enemy is the world-wide elite whose arrogance and disproportionate access to government decision makers is unprecendented. The level of their narcissism would make JP Morgan blush and the time is ripe for a Teddy Roosevelt to engage and rescue America from the bloat hogs at the Potomac trough.