POWER!!!

Constructive Criticism helps us build towards a better future

From the Washington Post - November 10, 2009 - In N.C., damage not easily mended

I have heard that people have had a problem with the article above. My question is why?

This article doesn't really support my point of view, that we have caused much of our economic woes, but it does discuss valid and significant theories about what has caused the plight we are in today. In the Wall Street Journal article from last January, Mayor Wright said that our Economic Plight is out of our control. Well, is that not what this article espouses? That much of our plight is out of our control, because of foreign trade?

As the Obama administration defines its stance on foreign trade, it has been besieged by complaints about the legions in Hickory and elsewhere who have lost their jobs to overseas competition...But as interviews with a few dozen people here show, much of the damage to the affected workers is not so easily mended...

Look at this quote from Allen Mackie, who is the head of the Catawba County Employment Security Commission:

"The people in the think tanks keep saying we are going to become -- what's the term? -- an 'information and services' economy," said Allan Mackie, manager of the North Carolina Employment Security Commission office. "That doesn't seem to be working out too good."

That quote questions me, and others such as myself, who believe that we need to take advantage of the Information and Technology sector and center our future on opportunities and realities brought forth by Google and Apple. You won't see me bow up and whale that I have been besmirched, because someone else questions my thinking or where I stand. If someone doesn't understand my position, then it is my job to clarify my position and point to what I have said in the past. It doesn't threaten me or hurt my pride or esteem.

The article goes on to point out:

But while the assistance has been used to win passage for more international trade agreements, its effects on workers have been rarely studied. The GAO analysis from 2000 found that 75 percent of displaced workers in TAA found jobs. Of those, only 56 percent earned 80 percent or more of their previous wage.

Personally, I believe this occurred because the jobs that were lost were not high skilled labor jobs. We all know people that went to work straight out of High School and after a few years they were making $40,000 ten years ago at the height of the manufacturing boom. I don't mean to hurt anyone's feelings and I truly believe that most of these people recognize that they were being overpaid at that point in time. These people were making those high salaries because we were at full employment and it was an employee's market.

All through the late 90s we were between 2% and 3% unemployment. You could virtually walk out of a job one day and into the next one the next day without skipping a beat. That was an employee's economy, where the employee could name there price and things have certainly changed over the past decade.

The heyday of the late 90s led to where we stand today, because those companies had to become more competitive and, whether right or wrong, they honestly believed that they were paying too much for what they were getting for their labor dollars. So now we have seen the pendulum swing in the completely opposite direction, where the labor market is completely in the employer's favor and they can name their price. If the employee doesn't like the workplace conditions, there is somebody ready to replace them if they step out of line.

So that leads us where we are today. From top to bottom we have to separate ourselves from the pack. As a community or as individuals, we are going to have to justify ourselves and be accountable. There is no kicking back and relaxing in the competitive world that we now live in. You have to constantly sell yourself and display why your product is better. And you are doing this on a global stage. We can't turn back time and we can't reminisce about 40 years ago and the quaint little village Hickory used to be. It is time to compete or wither and the world is ambivalent about our choice.

That is the reason why we have to shed the caste system, the nepotism, and the clique. We need the best ideas to win out, no matter where or whom they come from . We need the newcomers to this community to feel welcome and get past the old South structure that has defined this area. It's time to reach out to others. Instead of making people figure out how to assimilate into the local system, it is time to facilitate connections and help people fit into the community. We have to grow and that is the only way that it will happen; working in everyone's best interests, instead of towards our own personal interests.

I know that I have stepped on some toes with the way that I have addressed some of the issues on this blog or in other media sources. I have hurt some people's feelings. Well, believe it or not, in my weakest moments my feelings have been hurt also, but does that even matter. Anyone that puts their feelings forth in a public platform, or arena, must grow some thick skin. Criticism humbles you and makes you stronger. It also helps you understand the issues better and will either firm your resolve, when you reflect and find out you are definitely right, or it shows you where you are wrong and where you need to readjust your thoughts or philosophy.

Do you not want Hickory ever mentioned nationally? People fussed about the Wall Street Journal article, railed against the NBC news segment, and are now upset about a Washington Post article that fully supports the contention that City of Hickory has been making for years. Do the people who are upset think, "Shhh, if nothing is said then everything will get better." Well, it won't. We need people to know all of the aspects of what is going on here. We need it discussed high, low, front, back, and center; because from that morass of publicity, people will be able to come up with solutions that will enable us to solve the problems. And if you aren't trying to come up with real solutions, then you are part of the problem.

Frankly, people are sick of the fluff and kumbaya propaganda that is put forth by public relations officials. Remember Baghdad Bob? Did he save Iraq? People would have you believe that if they talk about sunshine and lollipops, then in the end that is what you will get. Propaganda doesn't make people feel better. It makes them feel worse, because they lose trust and faith in their leaders.

Let me relate a personal issue about this blog. Over the past year, I have had five individuals contact me and say that they appreciate this site, because they are getting a fair assessment of what is going on in this area. These people's livelihood is at stake, so they are searching the web to make an educated decision about whether to move here or not. They have all stated that they have reservations because they have seen the challenges we face. Y'all say I am negative, but I have related to these people why I love my hometown and I answered their questions to the best of my ability or passed them along to someone who could.

One recent individual is a medical specialist who would be a wonderful addition to this community, but he related that he doesn't want to come to a community if the economy isn't going to be put on solid ground, because he can't build a practice based on medicare, medicaid, and the uninsured. He wanted statistics that would help him make his decision, so I pointed him in the right direction and asked that source to just give it to this doctor straight up and let the chips fall where they may.

Many of you seem to think that we should sell these people fluff to sway their decision. Well, if you do that and they move here and things don't go well, then they are going to resent the information source and this community. Further, they are going to spread the negative word. But, if we build a firm foundation that will help these people succeed, then we will grow this community in a wonderfully positive direction.

The key is to not shoot the messenger. If you think someone is wrong, then boldly challenge them with unmistakable facts, not hyperbole. Step forward with solutions and facilitate ideas. Don't take public policy criticism personally. Step back and recognize where criticism is valid and then deal with those issues to help build towards a better future. If we are receiving bad economic publicity, then figure out ways to create tangibly positive economic publicity.

We are in search of a firm foundation. Thank You Washington Post, Wall Street Journal, NBC, Charlotte Observer, and anyone else who finds our plight relevant and cares enough to report on it. The greatest feeling in the world will be when the national media comes back to report on our renaissance and resurrection.

The Hickory 9/12 Project Town Hall Last Night with Congressman McHenry - November 10. 2009

The following are links to the Town Hall meeting last night that was held at Lenoir-Rhyne's P.E. Monroe Auditorium. There were between over 150 people that attended this meeting which featured Congressman Patrick McHenry as the keynote speaker. below are the links, questions, answers and comments that were posed. Each Segment is linked to a downloadable recording.

Segment 1 - Reggie Saddler led the invocation and then the leaders of the local chapter of the 9-12 project had comments. Billy Pitman the Chairman of Lenoir-Rhyne's Young Republicans made a short speech.

Segment 2 - Reggie Saddler - This guy was great and his message was very relevant to what we are seeing in our lives today. He leads a Gospel group called the Reggie Saddler Family. He starts around the 6 minute mark of this segment. I was truly motivated and inspired by what he had to say. He was awesome. He talked about not doing anything rash and about getting involved.

Segment 3 - Congressman McHenry starts at around the 2 minute mark and made his opening comments. His opening remarks last around 13 minutes.

Segment 4 - The first question involved medical interventions going against the separation of Church and State. The second question was what do people do who disagree with the House of Representatives Health Care Bill. The third question was about whether the Congressman has had enough time to read the 2,000 page healthcare bill. The fourth question was about how the new law will effect doctors and nurses. The fifth question was about about sponsoring a bill that would make the Congress utilize the same insurance that they create for the public.

Segment 5 - The first question of this segment was about the National Debt, the GDP, Foreign Debt ownership, and defaulting on the Debt. The second question was about Seniors getting a Cost of Living increase based on inflation and is loading the healthcare bill based upon trying to get it through the Senate.

Segment 6 - The first question of this segment was about the defunding of ACORN; was it only for the month? The next question came from a student from L-R who wanted to talk about our system versus the European system and why don't we worry about our system and quit trying to push a European system. The third question was "How will this bill effect people who get their healthcare from their job?" The fourth question was about hurting future geneartions with our national debt - "It seems like we have hit the accelerator on Big Government."

Segment 7 - The first question of this segment was about whether you would need any special qualifications to be a nurse under this bill. The next part was more of a rant than a question where the gentleman talked about being disenfranchised and how what the government is doing is hurting his family. The next question was from a young lady who asked about what would happen to her and future generations if we spend all of this money. The fourth person in this segment talked about Tri-Care and how it is supposed to be an example of great healthcare and he uses it and it isn't good. He says the Democrats are trying to overwhelm the system and he doesn't understand why the Republicans don't do the same thing. The Congressman stated that their are 53 Republican healthcare bills that have currently been proposed and people think that none have been forwarded. The next question was about mythical problem versus the real problems we face, such as Global Warming.

Segment 8 - The next segment started with a lady from Europe who stated that Europeans look at Healthcare as a flaw in the American system. She asked about private healthcare companies denying people coverage and what is good about that. The next statements and questions pertained to who wrote this current healthcare legislation. The lady talked about how confusing this bill is. She then asked how they expect the average doctor's office to understand this bill. The lady then asked if the congress doesn't understand that we don't have any more money. The next lady asked, pertaining to the Fort hood incident last week, what Congress was going to do about issues of Political Correctness in our military. The next question came from a young man who asked about Czars and how we can change what is happening.

Segment 9 - The first question came from an older gentleman who asked about abortion and the conflicts of laws that deal with when life begins. Then the same gentleman asked about term limits. The next man stated that he was in Washington on 9/12/2009 and he wanted to know if the people in Congress "heard them." The next gentleman of the night talked about how campaign Finance reform has done nothing to fix the syste. The last gentleman of the night talked about how the National Healthcare program is insidious because it make people budget items. He also stated how upset he was that no mention of Ronald Reagan was during the ceremony of the tearing down of the Berlin wall. He also wanted to talk about "what a crock the global warming issue is." The Congressman said people should look up Marsha Blackburn and how she questioned Al Gore during his testimonial before her committee.

The Hound thinks that these town halls are when democracy functions at its best. There were only 150 to 200 people that showed up at this Town Hall meeting, but it was open to the public and it wasn't about political affiliation. I guess since it wasn't a FOX moment that the minions didn't get riled up enough to attend. Personally, I wonder if the people around here get it. No matter their affiliation, people were presented with an opportunity to participate in a civic process. I guess since 15 minutes of fame weren't at stake, and the TV wasn't talking about it, that they didn't feel like being bothered.

I truly worry about the direction we are heading in. The questions I reflect on are because of current policies. When the dollar finally succumbs, how are people going to react. Do you think it will be calm and rational. Think of Roosevelt's bank holiday in the 1930s, how would people react to that today? How would people react if grocery stores were closed or if electricity became spotty in Winter's cold or Summer's heat? What if they couldn't get gas for their cars?

I certainly hope that we, as a nation, get it together; because right now it is more than obvious that we are obsessed with Pop Culture instead of real issues. The issues we face could become perilous, if not dealt with very soon. As individuals or as a nation, we cannot spend our way to prosperity. We have traded the viability of our future for comfort now.

No one can guarantee you your health. They are taking away your liberty. Do you think you will be able to keep on with your vises and have someone else paying for your healthcare? They are going to tell you what you can do and when you can do it. What if you are an alcoholic? They might decide to arrest you, if you don't stop drinking. If you smoke pot, lawmakers might decide that the government can drug test you during mandatory physicals or even perform random drug testing on you. Heck, they might even decide whether you can carry a baby to term or not. You want the right to choose? OK, as long as Big Brother agrees with your decision.

You think you are going to get something for nothing? Nothing is free, especially your freedom!!!

Forget about Brain Drain. How about Brain Gain!!!

(From Wikipedia) - Brain drain or human capital flight is a large emigration of individuals with technical skills or knowledge, normally due to conflict, lack of opportunity, political instability, or health risks. Brain drain is usually regarded as an economic cost, since emigrants usually take with them the fraction of value of their training sponsored by the government. It is a parallel of capital flight which refers to the same movement of financial capital. The term was coined by the Royal Society to describe the emigration of "scientists and technologists" to North America from post-war Europe.

Brain drains are common amongst developing nations, such as the former colonies of Africa, the island nations of the Caribbean, and particularly in centralized economies such as former East Germany and the Soviet Union, where marketable skills were not financially rewarded.

The Hickory Metro's Economic Statistics correlate highly with those of Michigan, Ohio, and the rest of what is called America's Rust Belt. That area is also seeing a great loss of the younger demographic as manufacturing capacity and economic opportunity continue to decline. Here is a link to an article about how Detroit is addressing its issue of Brain Drain - Stopping Detroit's Brain Drain. There are a lot of other interesting subjects that are part of this CNN Money Series - Assignment Detroit. Although I don't think Hickory is to the level of Economic decay Detroit is, nor the scale of size, there are definitely some ideas here that our city should consider.

Here is a link to an article that was in this past Sunday's Parade Magazine entitled "A City for Entrepreneurs." The article is about how Cleveland, Ohio is attempting to foster start-up businesses in the city. Cleveland was once a platform where Standard Oil and General Electric's Lighting Division were started; but like many other manufacturing hubs, Cleveland has seen a precipitous decline in jobs from the manufacturing sector over the last 20 years.

A few items from that article really have relevance to Hickory's situation and what we have addressed here on The Hound. Here is a great quote from Ohio Lieutenant Governor Lee Fisher - “Every large company started in someone’s garage or basement. Why shouldn’t it be in Ohio?”

We have spoken of this need to start a garage economy here in this area. This is where our old school Manufacturing companies (textiles, furniture) got there start. Somewhere along the line, we have lost our way. Many of us have heard the story about how Art Viles personally sold stock to start Superior Cable, which became Siecor and then Corning Cable Systems. That led to Commsope and Alcatel (which is now Draka) coming to the area. Why couldn't we go back to that entrepreneurial spirit that once thrived here? Who can stop us other than ourselves?

Here is an excellent town hall meeting that John Kasich and Mike Huckabee held at Ohio State University on October 13, 2009. This does have political moments, but the message is truly valid.


John Kasich talks about the issues of leadership in the face of adversity and how Ohio is going to have to do it themselves. Whether you are conservative or not this message is valid. Mike Huckabee talks about Government being the facilitator of Free Enterprise, instead of the complicator of Free Enterprise. Kasich talks about how Ohio has driven the best and the brightest away and how they are going elsewhere -- sound familiar?

Huckabee talks about the challenge of being a good leader and not allowing the status quo to dominate. He says people don't expect perfection, but they expect integrity and authenticity. Leaders need to speak the same message to every audience, instead of delivering messages that you think people want to hear. People expect high standards and accountability.

Kasich talks about the tea parties and how people are sick of broken promises. He says he would rather lose than do that. People are losing faith, because of the broken promises. He says he has already developed a plan.

Huckabee talks about having people job ready and raising the standards. You have to keep score and make people accountable. Jobs flow like water. If it is difficult to set up jobs, then companies will go elsewhere. Third, he says that you must have a desirable culture where people want to live and be a part of.

Further discussion devotes time towards the creative economy and idea teams.

The Hound: Look at the National studies like the Milken Institute numbers and the Forbes numbers and you will see an objective view of what investors think about our area. We have to change the paradigm. Some people want to talk about quality of life issues. Well, in my opinion, the number one factor that will determine the quality of your life is the quality of your occupation. And at the same time what is the largest and most integral facet of a company's operations? LABOR!!!

A few issues that truly need to be addressed in this area:

1) Get rid of the concept of Low Hanging Fruit - Kept hearing this during the intra-city visit / Revitalization Conference. Lazy approach, bad approach, and not even a valid analogy, because fruit ripens as fast at the top of a tree as it does at the bottom. This is what has been stated when it comes to developing Hickory's retirement community. Honestly, talking about Low Hanging Fruit is very depressing.

2) Hickory's unofficial motto - "It's better than nuthin" - Are we supposed to lower our life expectations? I hear people addressing the underemployed in this area by telling them that they should be happy that they have the job they are overqualified and/or underpaid to perform, because it's better than nothing. I am sick of people adapting down and not expecting excellence in this community. We must demand excellence. Will we be better off than our parents? Will future generations be better off than us? Should we not expect and demand progress?

3) Cheap begets Cheap - In my opinion that is what has led to the economic implosion that we have seen in this community. You can cut your costs to zero, but it doesn't mean you are going to make a penny. Instead, we have devalued our product (Hickory) to the extent that no one looks at us as providing value anymore. This has created a domino effect. We may even be beyond the tipping point on this issue. If so, then we will have to work twice as hard to rebuild our infrastructure and this is going to be hard to do when people have a mindset where they would rather live in squalor than spend money, even when it obviously needs to be spent.

The Hound knows that one can honestly compare our area to some of the most challenging economic environments in the modern world. That is what has caused the Brain Drain. We have a substantial disparity in incomes in this area, both within the community and vis a vis the nation at large. People can easily move here from more affluent metropolitan areas and live twice as good, but our area's indigenous inhabitants can't afford to move to these other metro areas.

Think of people from New York, Los Angeles, San Francisco, Chicago, or Seattle moving here. They can live like kings. Think of one of us trying to move to one of these cities. Most of us would have to live in extreme poverty if we tried to make that transition on our current income and assets. We seem to wear our affordability as a badge of honor, but I believe that it is one of the issues that is truly killing us.

We have got to start growing this economy again and creativity is the only way to do that. That will not come from people who are winding it down. That takes energy and energy comes from young people who want to enjoy the future that is still ahead of them. Young people are a community's seeds. We all benefit when our community sows seeds and lays a path of opportunity for young people to be creative and innovative. The sooner we get started, the sooner we can make this happen and start moving in a truly positive and sustainable direction.

Retirement Communities Ain't No Panacea

Erickson Retirement Communities files for Chapter 11 - Article from the Baltimore Sun

Erickson's real estate arm, which acquires land for campuses and builds projects, has been hurt by the recession, as seniors who couldn't sell existing homes put off moving to continuing-care communities....... The economy has hurt the entire retirement community industry, prompting many companies to offer incentives just to move in, experts said. Many new developments have been delayed because of the tight market. But continuing-care facilities such as Erickson, which allow seniors to progress from independent living to assisted living, have suffered more, experts said..... People who move into assisted-living facilities usually don't have a choice, said Rick Grimes, president and CEO of the Assisted Living Federation of America. "The problem that Erickson seems to be facing is that they're not getting as many people in on the independent-living side, so they're not getting people into the cycle."

You're only as secure as the retirement home - Excellent article from the Washington Post that is related to the above article about Erickson Retirement Communities.

Ingleside's trouble was that the cost of caring for its residents was outstripping the fees they were paying. "There was a business model here that wasn't sustainable," said Richard Woodard, chief operating officer of the nonprofit....

Retirement Communities Respond to Housing, Market Drops - from U.S. News and World Report - (11/10/2008)

Primary residences are the greatest source of wealth for most retirees, and the sale of those homes is the most common way to generate retirement-community entrance fees, which range from $100,000 at the low end, upwards of $500,000 and much more at the highest-end communities.

Income from pensions and investments is a major source of monthly maintenance payments across the spectrum of senior housing. Financial support from children and other family members often enables retirement home occupants to make ends meet.

All sources are now being sharply compromised. And while it's too early to see the full effect of the impact, it's clear it will be extensive.

Elderly Forgo Move to Assisted Living Because They Can’t Sell Homes - From the Website Senior Living Solutions (5/29/2009)

The housing crisis has kept thousands of older Americans who need support and care from moving into retirement communities or assisted-living centers, effectively stranding them in their own homes.

The Hound: I know that the new context has been put in place when area leaders try to change to the new paradigm called "Active Retirees." It truly sounds great in theory, that we are going to bring these early retirees, typically in their late 50s and early 60s in here and they will work and contribute to our economy, while enjoying all of the amenities Hickory has to offer. They will all be millionaires who play golf by day and desire Dom Perignon and lobster at night. The only problem is that economic realities are a speed bump that precludes this from happening.

How do we market this area to these folks? We tell them it is affordable. In other words, we are telling them we have cheap housing, cheap food, cheap retail, and cheap services... By riding down 29th avenue NE, one can see what the vision has been for quite some time. We have a couple of gated retirement communities, several moderate to upscale assisted living centers, and even a funeral home right in the midst of it all. This is exactly what the company above, Erickson Retirement Communities, has tried to do. These companies want to get the older generations into the pipeline and move them from the gated communities, to the assisted living centers, then to the nursing home, and finally to the funeral home.

This vision was laid out long ago in this area and it was done at the expense of balance. All of the cards were laid upon the table, all chips are in, and one would have to be blind not to acknowledge the implementation. This community is geared towards Seniors come (you know where) or high water. Is it true that Seniors get a discount on their property taxes? If they do, does that make sense? What would justify that?

Now we are seeing the beginning of what I addressed to you earlier this year. We are going to see Socialized Healthcare. Congress passed the initial bill, which will soon be reconciled in the Senate. I don't think there is any way to stop this. So medicare is going to be cut for seniors and we all know how much seniors rely on medicare. As the economy continues to implode, the local area is going to be expected to pick up more of the tab for these seniors who cannot make ends meet. It is a vicious never ending cycle and it will be exacerbated unless we begin to try to restore balance to the demographics of this community.

Once again, Hickory is dealing with a Monoculture. We are moving from a monoculture of manufacturing to a monoculture of "retirement community." Honestly folks, can we afford to put all of our eggs in one basket again? We must stop this skewed growth in its tracks and insist on balanced demographic marketing and development. If we don't, then we may be seeing the fatal blow to Hickory's economy that it will never be able to recover from.

Say we were successful in marketing to the active retirees. How long will they stay active. Retirement = Winding it down. This is not the way to grow the community. So, if you are going to stay here, then you have to accept that your life's potential will be limited. I know that this reality can be viewed negatively, as though I am picking on the senior demographic, but there are plenty of resources that have been provided on this blog and elsewhere that will help you objectively ascertain a conclusion and I believe that it will be similar to my own.

Links to past articles involving this subject:
Hickory, North Carolina 2009
Fixing Hickory - A Demographics and Marketing Discussion Panel
Fixing Hickory - Narrowing Our Focus Economic Stimulus Package for Catawba County Finalized (The Finale)
Hickory - Time to put the Puzzle together