Innovation 2010 - Andrew Hargadon - Creating a Network of Innovation

Photos copyright: ©2010 Pat Appleson Studios, Inc. All Rights Reserved, Used By Permission

Innovation 2010 Event - held at CVCC on November 10, 2010

Keynote Speaker: Andrew B. Hargadon - His Blog
Professor of Management
Director, Technology Management Programs
Faculty Director, University of California at Davis Center for Entrepreneurship
Chancellor's Fellow
Ph.D., Stanford University

Short introductions were made by Dr. Garrett Hinshaw of Catawba Valley Community College and Scott Millar of the economic development Corporation. Dr. Hinshaw wanted to point the connection between education and economic development. He talked about the possibilities of ideas being translated into realities; such is the nature of innovation. He stated that now is the time for innovation to restore this area to its appropriate role as a national leader in business, industry, and education.

Scott Millar made the introduction of Andrew Hargadon. He made some points about our local area and our heritage of manufacturing. In essence, he stated that the entrepreneurial spirit comes from a combative mentality. Lightheartedly, he made the point that many people struck out on their own, because they couldn't get along with their boss. People love to be able to develop their own opportunity. At one time, we led the nation in the percentage of workforce involvement in manufacturing. In the 1980s and 1990s there were almost 600 manufacturing firms in Catawba County.

Dr. Hargadon began his presentation by talking about Thomas Edison and the beginnings of his scientific and entrepreneurial experience. In 1876, Thomas Edison was an unknown and he announced the opening of his Menlo Park scientific research facility with the promise of a new invention every 10 days and a big invention every six months or so. Edison was able to deliver on that promise.

From 1876 to 1881 Edison was able to patent over 400 inventions. The research facility became known as an invention factory and Edison became known as the “Wizard of Menlo Park.” The factory produced fundamental breakthroughs in the telephone, telegraph, phonograph, the electric sewing machine, the electric railway, ink for the blind, the first fax machine, and many more accomplishments.

What we learned about innovation from Thomas Edison and others like him are basically five lessons. Most everything that we know about Thomas Edison and the inventions that he is known for were done in that five-year period from 1876 to 1881, including the electric industry through the creation of The Pearl Street Station and the light bulb. What we need to look at is why the Menlo Park research facility was so successful.

Dr. Hargadon said that we need to get rid of the idea of the “Great Man Theory” of innovation. The “Great Man Theory” says that for every great idea there was a single point in time where a single person had the idea. Before that point the idea didn't exist and after that the world was never the same. If we follow this theory, it says that we either need to be that great man, find that great man, or hire this person and pay them whatever they want. And if we don't do this, wet will sit back and watch the innovation process happen somewhere else. This is not a particularly useful message.

Dr. Hargadon's first point is that it's not about the idea. If we focus on the idea, we focus on the wrong thing and we don't get anything done. He gave an example of mousetraps. He talked about the quote from Ralph Waldo Emerson, which has been misattributed. Emerson's quote was much more complex than the "build a better mousetrap" quote that has been attributed to him. Emerson's point was that if you sell a better product that people will buy it from you. The misattributed quote did not come until seven years after Emerson had died. It was made by a journalist.

The facts show that the journalists interpretation of Emerson's quote is Misanalyzed. Since 1828, 4,400 mousetraps have been patented. Of those, only 24 have made any money and only two have been truly successful. The Victor mousetrap, introduced in 1897, is the most successful mousetrap ever invented and its design has not changed over the subsequent period of time up. The only evolution of the product was an idea to market the product as disposable, which took place in the 1950s, and the addition of cheese scented plastic more recently.

Next, Dr. Hargadon spoke about the Segway. When this product was initially introduced, it was said by its inventor that it would be bigger than the Internet. Dean Kamen was called a modern-day Edison. When it was initially introduced, the venture capitalist stated that the product would sell 100,000 units per year. In the first two years only 6000 Segways were sold. Why?

When the product was introduced you could only buy it at Amazon.com. The other place that you could buy it was at Brookstone, which is a high-end toy store. They built a great idea and used $100 million worth of investment money, but they didn't have a distribution process.

It's not about the idea. It's about connecting. It's about building networks. Inventing is about creativity. Innovation is about getting it done.

Henry Ford started mass production of automobiles in 1906. He did not invent the car. He saw an opportunity utilizing mass production to a mass market. The idea was to create an affordable car. Ford Motor Company was his fourth car company. Proof of Concept in the early automobile industry meant that creators raced the car. Racing cars involved crashes, when the driver pushed the limits, and many times this meant the end of the car company.

The mass-market car completely changed the business model. Ford embraced the idea of building a cheaper car. He went and examined ideas that were already in the marketplace that could help him establish his mass-market company. The successful ideas included 1) interchangeable parts, 2) Continuous flow of production. 3) The assembly line and 4) The electric motor -- before this, plants were designed around a steam engine which would be located at the center of the factory.

The electric motor allowed work to be moved to different parts of a plant, instead of being centrally located around the power source, the steam engine -- Ford had worked for Edison and left when he could not convince Edison of the importance of the automobile. Ford did not invent any of the above processes, but instead he brought them together into one efficient product method.

Dr. Hargadon espouses the notion that Ford succeeded, not because he invented anything, but because he refused to invent anything.What can we learn from this? It isn't about the idea. It's about seeing the resources that are out there and being better about making the connections than anyone else.

Dr. Hargadon next talked about Edison not inventing the light bulb. That was a 40 year old technology. He built a better network around the light bulb than anyone had ever done before. He created a successful business selling people the lights, the wiring, the generators, and the steam engine used to power the generator. It became successful when it had as much reach as petroleum industry in the utilization of gas products. He took the best of all of the technologies and combined them with his friends in venture capital and utilized the utility business model utilized by the Petroleum Companies and created an entirely new business model around the idea of lighting. Most of the innovation that he created was in the service industry end of the business model.

Innovation comes from the network. Edison and Ford were able to take ideas and make them work where no one could before. Dr. Hargadon pointed to our area – the Hickory Metro -- and stated that we have an advantage because we have so many strengths and resources available that it is now just a matter of finding out the best ways that they fit together.

Dr. Hargadon talked about Apple Computer Co. He had worked there at one time. He was a mechanical product designer who worked on the number of the early laptop models. He spoke of the level of intelligence of the people that worked for Apple in the late 80s and early 90s. They had a mindset that they were going to change the world. He spoke of how these people thought that they were going to reinvent manufacturing. Their job was to redo everything that had ever been done and do it better.

While at Apple he was placed in charge of creating the smallest and most technologically advanced power supply to be placed in the new laptop computers that Apple was producing. He was given a $1 million budget and he stated that he spent it even though he later came to the realization that it really wasn't necessary. But, that was the way things were done then. Apple’s workforce was placed in charge of reinventing everything to change the world.

He believes that this is the reason why Apple almost went bankrupt in 1996. In 2001, when the iPod came out, he came to the understanding that Apple, as a company, had changed completely. The idea of the iPod is the antithesis of what Dr. Hargadon had experienced when he worked at Apple.

The iPod was the 15th MP3 player on the market. Apple had already committed to becoming the hub of the digital world and yet no one was building for that world. People did not care about the Apple Computer. It was only 1 1/2% of the market at that time. Apple realized that they would have to build their own MP3 player. Instead of going out and getting one, Apple realized that they needed to create a better network around their MP3 player.

They saw the first advantage of getting help to create this device by going to the consulting firm that designed the hardware for previous MP3 players and asking them to design a MP3 player like the others that the consulting firm had helped to designed. They next went and bought a software company to design the software for the iPod. Then they went out and did all the licensing necessary to create a proprietary MP3 player. By refusing to build a better mousetrap, they went from idea to market in eight months. None of the other MP3 players had this sort of seamless interface. They also saw that it as an opportunity to bring in the record labels.

In 2001, the record labels were famous for pursuing college kids for downloading music. Steve Jobs saw an opportunity and called up the chairman of Universal music. He spoke to him about the culture of the 1970s and the attitude of “down with authority” and the fact that now the record labels were that authority. Jobs asked, “Do you think the Internet is going to go away, which side do you want to be on?” The record labels did not have a viable Internet strategy and Jobs pointed out that Apple could help them create that opportunity. Apple created a digital rights management system that would mean that music would go on to the iPod and would not be transferred to other MP3 players. After that success, Apple went to the other record companies and this cemented the network that they were looking to establish.

Apple went on from there to create an interface that could utilize podcasts, Internet access, photos, television shows, and movies. Next they brought the chips in that were utilized in cell phone technology and created the iPhone. A Wall Street Journal journalist stated that the iPhone was the only technological device that became more valuable the longer that you owned it. It isn't the phone that is so valuable; it is all the other pieces of the network. 250,000 application developers have looked at ways to make the iPhone more valuable.



The real challenge for innovation is seeing the opportunities that are available. It is about the chance to create a new network where no network has been created before. It is about making sure that everyone in the partnership is getting something from it.

Dr. Hargadon next talked about the Barbie doll. Mattel did not invent the Barbie doll. It was designed after a doll that was sold in a tobacco shop in Europe that was not marketed to children. At that time, dolls sold in the US market were baby dolls that allowed girls to pretend to be their mother. The Barbie doll came along as one of the first successful aspirational dolls. It allowed girls to role-play as anything other than their moms. These dolls brought about a mindset of careers opportunities outside of the home.

Initially the toy buyers did not like these dolls. The first two companies that tried these aspirational dolls had failed. Mattel decided to create a network around a marketing campaign strategy over network television. Mattel began to advertise the doll on the Mickey Mouse television program. In 1958, of Mattel began to advertise on the “Mickey Mouse Show” television program, 75% of the viewing audience was watching this program. Mattel directly marketed the Barbie dolls to the children who then went to their parent and asked for them to purchase the doll. This was the beginning of children's television advertising.

Lego toys almost went bankrupt in the 1990s. They lost their demographic, because kids had more to do than play with Legos, which no longer fit into American children's lifestyle. Lego decided to go out and purchase the rights to the Star Wars franchise. Star Wars gave the children the story behind the building blocks.

Overnight, seven of their top 10 Legos products were from the Star Wars franchise. After a few years, they decided that they no longer needed the Star Wars franchise and they created their own story behind their products. Bionicles were centered around an Internet world where you can log on and see different characters with complex story lines. Now this product line has comic books, DVDs, and video games. This entire network is created around the plastic brick.

If one goes into a mass merchandise retailer today and purchases the “old-school” Lego products, they pay about one penny per brick. If one purchases one of these
New-line products, then they pay $.13 for the equivalent amount of material of the Star Wars franchise line. If one purchases the Bionicles product, then one pays $.22 for the equivalent amount of material. The difference is the network.

Printable M&Ms are now available. Mars Candy Company decided that they were missing out on a network that already existed. There are people who keep this product on their desk in their office. Mars looked at this as a way to enhance the connection. They bought an ink jet printer and experimented with vegetable-based ink and figured out a way to print two lines of 8 characters each of text onto an M&M.

“My M&M's” created the ability to go online and purchase a custom product. M&Ms that would normally cost $3 per pound cost the equivalent of $27 per pound when they are customized. This entire network was built in a tiny corner of the Mars factory, which was unlike everything else that they had built. They usually track M&M's by the ton as they are sold and this created a new network with their customers. This fundamentally change the way that they did business.

What we see is that people believe that if they don't have a great idea, then they should not move forward. People talk themselves out of the creation and implementation of a great idea, because they believe that someone else would've done it if it were a great idea. The question is who is going to see a great idea and bring it together in an effective network. People need to understand that they are just as capable as anyone else of taking an opportunity to create a network from it.

He gives the example of four undergraduates from UC Davis in the university’s entrepreneurship program who were brought together. They figured out a way to utilize microbes that could take municipal wastewater and turn it into biodegradable plastics. This saves enormous amounts on landfills and other expenses related to wastewater and when you run the numbers, you find that you make 10 times that on the biodegradable plastics. These four undergraduates who started this company have secured financing for $3.6 million and now they have a team of about 17 people. These are the kind of opportunities that are out there that people can reach for when they realize that the job is not to have an idea, their job is simply to be the ones that are aggressive and devoted to creating a network of support around the idea including investors and others.

Dr. Hargadon talked about William Gibson who coined the term cyberspace. Mr. Gibson was asked where he came up with his visions and how did he see this world that had come to fruition? He stated that it was relatively easy. He said he looks around and he sees people that are doing cool things and he follows them. The future is already here. It is just unevenly distributed.

The greatest opportunities we have as entrepreneurs and innovators is to take ideas that we see in one place and bring them into another and build a network around them to make them successful. We don't need to be geniuses to have a great idea. We need to recognize a good idea, when we see it, and recognize the networks that would make it great.

The Hound calls for a boycott of all Air Travel

Homeland Security is not protecting us from Arab Bogeymen. It is a tool meant to take away our rights granted under the United States Constitution. I have seen enough to realize this. I am fully awake to what the government is and has been up to and the context that has been in formulation for a long, long time.

Benjamin Franklin stated Those who would give up Essential Liberty to purchase a little Temporary Safety, deserve neither Liberty nor Safety. We have seen constant intrusion into our privacy and it is time to say enough!!!

No naked body scanners! No pat downs, when people have done nothing wrong! No touching peoples private parts! No harassing the Elderly or Children who just want to freely travel!

If these types of hyper-security measures become the norm, then our great nation is lost and has been defeated by the supposed enemies of freedom that we are supposed to be protected from.

It is time to quit flying and allow the Airlines to be taken into bankruptcy. Flying is supposed to be efficient and convenient. That has been taken away by the overzealous control freaks in the bureaucracy who have zero common sense. They and the Airline companies should be pointed to as the reasons that the airline industry gets decimated. The Airline companies have allowed their customers to be harassed and be treated with a lack of respect. Is this how a company should treat its customers? Flying is not a right, but neither is it a privilege. It is a mode of travel, which by right we are supposed to have the liberty to exercise freely.

If you choose to fly under this current system that is your option, but I would suggest that peaceful resistance to the measures taken by Homeland Security and the TSA will curtail this obtrusive and obnoxious behavior. You deserve to be treated with respect. Ride a bus, train, or drive a car. You don't have to fly. You have done nothing wrong and these measures will not bring more security or peace of mind to you. It is time to show these people that the government is the American people and not the Bureaucracy.

Johnny Edge Peaceful Resistance of TSA authorities at the San Diego California Airport

Innovation 2010 Event - held at CVCC on November 10, 2010

I attended this showcase of innovation yesterday and I have to say that I truly believe that it was a great event and a success. I think the keynote and the theme of the event is that Innovation and Creation is not about one person winning the lottery and coming up with a spectacularly outside of the box idea. The key to the successful implementation of a product or service is Interpersonal Networking and Collaboration.

I will dig deeper into Keynote speaker Andrew Hargadon's presentation, but the key to his message was that the tools are out there to create successes, but the Networking, Collaboration, and Cooperation are necessary elements to shape new ideas and products. Thomas Edison and Henry Ford didn't "Reinvent the Wheel," what they did was look at processes that existed in their era and they borrowed existing technologies, re-engineered and molded those existing technologies into efficient models that worked for the businesses strategies that they wanted to implement.

Former Governor Jim Hunt had a taped message about creating a New Creative Economy. Many of the ideas and subject materials that he broached are the ideas that have been related here on the Hickory Hound. He spoke about the processes that have gone forward in the community so far and how necessary they are. From his words you would think that he was speaking directly about the Future Economy Council. He also said that we should create contests and awards that reward innovation. The subject of an Economic and Science Fair has been discussed ad Nauseum here on the Hound and this Innovation 2010 event's roots were an offshoot of some of those discussions.

Economic and Science Fair discussions:
Future Economy Council Meeting #13 (3/18/2010)
Newsletter about the City Council meeting of February 16, 2010 - Public Hearings - Legislative issues
Top-Down or Bottom-Up (2/5/2010)
The State of Hickory - January 2010 (1/23/2010).

From September 17, 2009:




Mr. Leslie Boney, Associate Vice President for Economic Development Research, Policy and Planning for the University of North Carolina system spoke about the need for our area to reinvent itself. He reiterated much of the subject matter that Governor Hunt discussed and also talked about the Greater Hickory area's issues with the diaspora (Hickory's Diaspora - Bring Home the Scattered Seeds - 3/14/2010) and the "Brain Drain"- Forget about Brain Drain. How about Brain Gain!!!. He did not use that terminology per se, but that was the subject material and that also is information that has been discussed by the Future Economy Council and the Hickory Hound.

Other relevant articles:
Future Economy Council Meeting #4 (6/18/2009)
Catawba County’s Economic Stimulus Plan for 2010 – 2012 (12/8/2009)
Forget about Brain Drain. How about Brain Gain!!! (11/10/ 2009)
Fixing Hickory - The Future Economy Council presented by Terry Bledsoe, Catawba County Communications Director, Chairman - (10/23/2009)
Fixing Hickory - A Demographics and Marketing Discussion Panel - (10/13/2009)
Newsletter about the City Council meeting of October 6, 2009 - Presentation of “Education Matters”
HDR Editorial - Give young people a chance to thrive - (9/27/2009)

I will discuss all of the information laid out in this conference in detail over the next few days, please be patient it is coming, but as most of you know I juggle these efforts with many other efforts and responsibilities. I want to thank all of you who read the Hickory Hound and take an interest in our area!

For any Parties interested who would like to pursue any information on the processes of Innovation and Creativity in our community, below is a detailed list of the Individuals and companies that played a vital role in making this conference happen. As was stated, it is time to get out there and make those connections and these are some of those integral networks you should pursue. (Click on the photocopies to enlarge and from there you can use the Control+ or Control- to enlarge or shrink the image and the cursors to navigate).

Bringing People to the table of Governance - A presentation on Mobile Governance

Over the last few years you, who have read this blog, have been made privy to my frustrations detailing the lack of a relationship between government and the citizenry. I have expressed the anxieties I feel I have witnessed in the association between a government operating in favor of special interests and lacking forthrightness and an unengaged, ambivalent public looking for short answers and simple solutions.

Rick Smyre introduced the subject of Mobile Governance to the Future Economy Council and myself in late May and Early June of 2009. He wrote a detailed article entailing the meaning of Mobile Governance, which I introduced on the Hickory Hound at that time -THE WEAK SIGNAL OF MOBILE GOVERNANCE by Rick Smyre.

Dewey Harris, the Assistant Catawba County Manager and a member of the Future economy Council gave a thorough presentation and discussion of the progress that has taken place over this issue during the last 18 months. Dewey has worked in association with Rick and there is hope that UNC-Wilmington and other institutions will come on board to institute this process and program. Pilot Programs will be established to initially stake a flag into some key complex issues where local governments might have trouble communicating with the public and implementing important tasks and processes, because of the lack of trust that has become rooted in our current system of governance.

Here is Dewey's presentation made on November 3, 2010:



Here is a favorite quote of mine from Catawba County Chamber of Commerce President Danny Hearn espoused on June 18, 2009, which makes a statement about what the Future Economy Council is trying to achieve and its relation to the governance issue.

When people say, "who is the beneficiary?" I can't go to someone and say give me $10,000 and you will get this in return. This is not that investment. We are selling the invisible. If we continue to take this economy in the direction that we have always taken it, we aren't going to get anywhere. The Economy has totally changed. What we had prior to 2000 is gone. We have to reinvent ourselves. If we don't do that, then we are in big trouble. It is the thinking of elected officials, business, and education of changing the way we do things and that investment can't be shown. The community better embrace it and understand it.

We can't even get our local officials to read a document about Mobile Governance that Rick wrote. There are (forward thinking) investment ideas out there, that no current elected official will look at, but people who are prone to understand this and reach outside of their comfort level and try to embrace it, all of a sudden, an idea that a traditional thinker will not do, we might. Those ideas are achievable.

The Impotence of Elections by Dr. Paul Craig Roberts

Paul Craig Roberts (born April 3, 1939, in Atlanta, Georgia) is an economist and a nationally syndicated columnist. He served as an Assistant Secretary of the Treasury in the Reagan Administration earning fame as a co-founder of Reaganomics." He is a former editor and columnist for the Wall Street Journal, Business Week, and Scripps Howard News Service. Roberts has been a critic of both Democratic and Republican administrations.. He is a columnist and was previously an editor for the Wall Street Journal. His latest book, “How the Economy Was Lost: The War of the Worlds,” details why America is disintegrating.

Paul Craig Roberts - Infowars.com - November 3, 2010

In his historical novel, The Leopard, Giuseppe di Lampedusa writes that things have to change in order to remain the same. That is what happened in the US congressional elections on November 2.

Jobs offshoring, which began on a large scale with the collapse of the Soviet Union, has merged the Democrats and Republicans into one party with two names. The Soviet collapse changed attitudes in socialist India and communist China and opened those countries, with their large excess supplies of labor, to Western capital.

Pushed by Wall Street and Wal-Mart, American manufacturers moved production for US markets offshore to boost profits and shareholder earnings by utilizing cheap labor. The decline of the US manufacturing work force reduced the political power of unions and the ability of unions to finance the Democratic Party. The end result was to make the Democrats dependent on the same sources of financing as Republicans.

Prior to this development, the two parties, despite their similarities, represented different interests and served as a check on one another. The Democrats represented labor and focused on providing a social safety net. Social Security, Medicare, Medicaid, food stamps, unemployment insurance, housing subsidies, education, and civil rights were Democratic issues. Democrats were committed to a full employment policy and would accept some inflation to secure more employment.

The Republicans represented business. The Republicans focused on curtailing big government in all its manifestations from social welfare spending to regulation. The Republicans’ economic policy consisted of opposing federal budget deficits.

These differences resulted in political competition.

Today both parties are dependent for campaign finance on Wall Street, the military/security complex, AIPAC, the oil industry, agri-business, pharmaceuticals, and the insurance industry. Campaigns no longer consist of debates over issues. They are mud-slinging contests.

Angry voters take their anger out on incumbents, and that is what we saw in the election. Tea Party candidates defeated Republican incumbents in primaries, and Republicans defeated Democrats in the congressional elections.

Policies, however, will not change qualitatively. Quantitatively, Republicans will be more inclined to more rapidly dismantle more of the social safety net than Democrats and more inclined to finish off the remnants of civil liberties. But the powerful private oligarchs will continue to write the legislation that Congress passes and the President signs. New members of Congress will quickly discover that achieving re-election requires bending to the oligarchs’ will.

This might sound harsh and pessimistic. But look at the factual record. In his campaign for the presidency, George W. Bush criticized President Clinton’s foreign adventures and vowed to curtail America’s role as the policeman of the world. Once in office, Bush pursued the neoconservatives’ policy of US world hegemony via military means, occupation of countries, setting up puppet governments, and financial intervention in other countries’ elections.

Obama promised change. He vowed to close Guantanamo prison and to bring the troops home. Instead, he restarted the war in Afghanistan and started new wars in Pakistan and Yemen, while continuing Bush’s policy of threatening Iran and encircling Russia with military bases.

Americans out of work, out of income, out of homes and prospects, and out of hope for their children’s careers are angry. But the political system offers them no way of bringing about change. They can change the elected servants of the oligarchs, but they cannot change the policies or the oligarchs.

The American situation is dire. As a result of the high speed Internet, the loss of manufacturing jobs was followed by the loss of professional service jobs, such as software engineering, that were career ladders for American university graduates. The middle class has no prospects. Already, the American labor force and income distribution mimics that of a third world country, with income and wealth concentrated in a few hands at the top and most of the rest of the population employed in domestic services jobs. In recent years net new job creation has been concentrated in lowly paid occupations, such as waitresses and bartenders, ambulatory health care services, and retail clerks. The population and new entrants into the work force continue to grow more rapidly than job opportunities.

Turning this around would require more realization than exists among policymakers and a deeper crisis. Possibly it could be done by using taxation to encourage US corporations to manufacture domestically the goods and services that they sell in US markets. However, the global corporations and Wall Street would oppose this change.

The tax revenue loss from job losses, bank bailouts, stimulus programs, and the wars have caused a three-to-four-fold jump in the US budget deficit. The deficit is now too large to be financed by the trade surpluses of China, Japan, and OPEC. Consequently, the Federal Reserve is making massive purchases of Treasury and other debt. The continuation of these purchases threatens the dollar’s value and its role as reserve currency. If the dollar is perceived as losing that role, flight from dollars will devastate the remnants of Americans’ retirement incomes and the ability of the US government to finance itself.

Yet, the destructive policies continue. There is no re-regulation of the financial industry, because the financial industry will not allow it. The unaffordable wars continue, because they serve the profits of the military/security complex and promote military officers into higher ranks with more retirement pay. Elements within the government want to send US troops into Pakistan and into Yemen. War with Iran is still on the table. And China is being demonized as the cause of US economic difficulties.

Whistleblowers and critics are being suppressed. Military personnel who leak evidence of military crimes are arrested. Congressmen call for their execution. Wikileaks’ founder is in hiding, and neoconservatives write articles calling for his elimination by CIA assassination teams. Media outlets that report the leaks apparently have been threatened by Pentagon chief Robert Gates. According to Antiwar.com , on July 29 Gates “insisted that he would not rule out targeting Wikileaks founder Julian Assange or any of the myriad media outlets which reported on the leaks.” (Gates Won’t Rule Out Targeting Assange, Media in Leak Investigation - AntiWar.com - Jason Ditz, July 29, 2010)

The control of the oligarchs extends to the media. The Clinton administration permitted a small number of mega-corporations to concentrate the US media in a few hands. Corporate advertising executives, not journalists, control the new American media, and the value of the mega-companies depends on government broadcast licenses. The media’s interest is now united with that of the government and the oligarchs.

On top of all the other factors that have made American elections meaningless, voters cannot even get correct information from the media about the problems that they and the country face.

As the economic situation is likely to continue deteriorating, the anger will grow. But the oligarchs will direct the anger away from themselves and toward the vulnerable elements of the domestic population and “foreign enemies.”

Fighting the Corporatocracy and the Tapeworm Economy

Gold sits tonight at $1,389.80 and Silver sits at $26.58. Both have seen drastic rises during the day as a result of the Federal Reserve's overt action to create liquidity to further prop up the Megabanks, both domestic and foreign. The Fed is going to buy $500+ billion in U.S. Treasury Bonds (Federal Reserve to print billions of dollars in massive shadow stimulus - By Agence France-Presse - Tuesday, November 2nd, 2010). This is nothing other than monetizing the debt (Currency Devaluation). Rampant inflation is on the way in staple commodities (Food and Energy)-- worse than we have already seen. The economic system is failing and the World Central Banks and Governments are only making the issues we face a lot worse. We need to face our Economic difficulties head on and the Federal Reserve is simply trying to paper these issues (Derivatives and Mortgage Backed Securities) over. This will not reopen the credit markets or add jobs. It also won't help individuals deal with their own personal credit crunches. As a matter of fact it is going to make all of that much, much worse.

Former Assistant Secretary of Housing under George H.W. Bush Catherine Austin Fitts blows the whistle on how the financial terrorists have deliberately imploded the US economy and transferred gargantuan amounts of wealth offshore as a means of sacrificing the American middle class. Fitts documents how trillions of dollars went missing from government coffers in the 90's and how she was personally targeted for exposing the fraud.

Fitts explains how every dollar of debt issued to service every war, building project, and government program since the American Revolution up to around 2 years ago - around $12 trillion - has been doubled again in just the last 18 months alone with the bank bailouts. "We're literally witnessing the leveraged buyout of a country and that's why I call it a financial coup d'état, and that's what the bailout is for," states Fitts.

Massive amounts of financial capital have been sucked out the United States and moved abroad, explains Fitts, ensuring that corporations have become more powerful than governments, changing the very structure of governance on the planet and ensuring we are ruled by private corporations. Pension and social security funds have also been stolen and moved offshore, leading to the end of fiscal responsibility and sovereignty as we know it.




The Race to the Bottom - April 29, 2010

Newsletter about the City Council meeting of November 2, 2010

This newsletter is about the Hickory City Council meeting that I attended this past week. City council meetings are held on the first and third Tuesdays of each Month in the Council Chambers of the Julian Whitener building.

At right of this page under Main Information links is an Hickory's City Website link. If you click on that link, it takes you to our city’s website, at the left of the page you will see the Agenda's and Minutes link you need to click. This will give you a choice of PDF files to upcoming and previous meetings.

You will find historic Agenda and Minutes links. Agendas show what is on the docket for the meeting of that date. The Minutes is an actual summary of the proceedings of the meeting of that date.

Here is a summary of the agenda of the 10/19/2010 meeting. There were a couple of important items that were discussed at this meeting and the details are listed further below:

Please remember that pressing Ctrl and + will magnify the text and page and pressing Ctrl and - will make the text and page smaller. This will help the readability for those with smaller screens and/or eye difficulties.

Invocation by Pastor Deborah McEachran of First Presbyterian Church

Special Presentations:
A. Presentation by Tracy Nestor, Oktoberfest Event Director Thanking City Council for Their Support and to Report on the Success of the 2010 Oktoberfest - Tracy Nestor made the presentation in which she stated that she has been involved with the festival for the last 12 years. This was the 25th anniversary of Oktoberfest and she stated it was the biggest year by far. She stated that there was an increase in attendance by 10 to 15%, while many festivals in the area have suffered and seen a reduction of as much as 30% in their attendance. The Hickory daily record has awarded Oktoberfest as the best festival in Hickory for the past three years.

She stated that there were 132 vendors to share in the vendor spaces were sold out by August 1. The attendance was estimated to be 108,000 people over the three day event. Based on the number of attendees, the western Piedmont Council of governments estimates that the event had an economic impact of $7.3 million.

Mrs. Nestor stated that they were faced with a few new issues this year. People were bringing animals to the festival and she stated that there were issues with science this year. She added that she would be bringing these issues forward to the Council and effort to create ordinances pertaining to these specific issues.

The Hound is not going to question Mrs. Nestor, because I do believe that this event has been growing over the years and I do believe it is becoming more and more successful. What I would like to emphasize is my credibility when it comes to questioning the previous numbers related to hyperbole versus real statistics. Some people thought I was rude two years ago when I forcefully questioned the numbers associated with this event.

On November 18, 2008 Mrs. Nestor came before the council and stated that an estimated 110,000 people attended the event. She stated that they estimated that at least 50% of the people came from outside the Unifour area. Area hotels tracked the number of guests (The numbers were given to the Western Piedmont Council of Governments). She stated that the event generated 732 room nights, which most of those rooms were reserved in blocks of 4 night increments by event vendors. She estimates the event generated $7.637million.

The numbers stated this year show an attendance of 110,000 people and an economic impact of $7.3 million and a 10% to 15% growth in attendance over the previous year. If we extrapolate the conservative estimate of growth that means that 100,000 attended the event last year and around 91,000 two years ago. Look at the 20%+ growth in attendance and the fact that the revenue estimates are down from those stated two years ago. These numbers are also estimates given from the Western Piedmont Council of Governments.

I would like to congratulate the HDDA, Mrs. Nestor, Ms. Kincaid, and the City for the success of this event. I truly appreciate and respect that they are bringing real numbers to the table. I think that it is very important to be realistic about the context of these events and their impact on the area. Here is hoping that an area with a rich Germanic history, such as ours, can see this tradition grow into a truly regional event.

B. Proclamation Presented to Ms. Teena Willis Declaring November 14 – 20, 2010 as “Hunger and Homelessness Awareness Week” in the City of Hickory - The Mayor made the presentation. This coalition sponsored national hunger awareness and homeless week. The proclamation is intended to help people understand the plight of people who are hungry and homeless. It is meant to encourage support for homeless assistance service providers and and community assistance opportunities for students and community service organizations. There are many organizations involved in this process including the Salvation Army, grace house, family care Center, safe Harbor rescue mission, family guidance Center, Greater Hickory Cooperative Christian ministry, Eastern Catawba Cooperative Christian Ministries., Mental health partners, greater Hickory United Way, Exodus homes, the department of social services, ALFA, Catawba County behavioral health care, our fathers pavilion, Sipes Orchard home, and many more partners.

The theme of national hunger and homeless awareness week is bringing America home. The Council recognizes hunger and homelessness is a problem in Hickory and Catawba County.

For people associated with this effort made comments. Among those comments were that they that people would participate in events that will be held from November 14 through the 20th. What statement that was made was about a grant provided to this foundation in the amount of $133,800 in that amount of money will typically house about 4 to 5 households. Another program grants applied for will be geared toward those who are not chronically homeless but need assistance. It was mentioned that 48 families have received assistance through these programs.

The continuum of care is intended to avert crisis in key people from ever becoming homeless. And effort has been made to create for the first time a food policy Council in Catawba County. This would help to assure the nutritional value of every citizen whether.

The Hound believes that this mission is very important to our area during these difficult times. This reflects on our wellness as a community. Wellness isn't about the wealthy in a community. They can afford to eat right and afford exercise and recreational amenities. The wellness of our community correlates with Quality of Life issues of middle class and poor people. It is essential that our community make investment in the health and well being of working class people!

Hickory - The lowest well being in the United States of America

Consent Agenda:
A.Acceptance of Governor’s Highway Safety Program Grant to Purchase In-Car Digital Cameras and Radars in the Amount of $24,375 - The Hickory Police Department received notification that its application was approved for a Governor’s Highway Safety Program Grant. These grant funds will be used to purchase five (5) in-car digital cameras and radars at a total cost of $42,500.00. The grant funds awarded are in the amount of $24,375.00 and the City’s portion will be $18,125.00. Funds have been budgeted. Staff recommends acceptance.

B. Approve Agreement for Services with Stephen F. Austin for Preparation of the City of Hickory’s Annual Action Plan and Application for Funding to the U.S. Department of Housing and Urban Development for FY-2011-12 Community Development Block Grant Entitlement Program in the Amount Not to Exceed $2,500 - The City receives yearly funding from the U.S. Department of Housing and Urban Development’s Community Development Block Grant program, and the City is required to submit an Annual Action Plan prior to being funded each fiscal year. The Annual Action Plan details the City’s planned Community Development Block Grant expenditures for the fiscal year. Mr. Stephen F. Austin has prepared the City’s prior plans and Mr. Austin proposes to prepare the FY 2011-12 Annual Action Plan and application for funding at a cost not to exceed $2,500.00. Having prepared the City’s previous Consolidated Plan, he is quite knowledgeable with both the Hickory area as well as the work involved in completing this document as required by the U.S. Department of Housing and Urban Development. Staff recommends approval.

The Hound is curious about Mr. Austin being paid this money to do this paperwork. Two comments were made relating to this issue in the Newsletter from February 17, 2009. Why can't city staff do this paperwork?

Comment from Anonymous - While you're asking about wasted money, why is Stephan Austin being paid $2500 annually to simply reprint the Grant Application that he's submitted for the last 8 or 10years, since he left working for the Western Piedmont Council of Governments? Don't we have any qualified planners in the City that can fill out a 5 page grant form successfully, especially when all they have to do is copy what he submitted the year before? The Planners are already on staff and that would seem to be one place that money can be trimmed from the budget.

Oh, wait - he's another of Sally & Jill's pets, isn't he? Never mind. Answered my own question.

Comment from Anon2 - Sometimes things in the Action Plan change, like someone new asking for and receiving money...but Todd Hefner gives Mr. Austin most of that information. You're quite right...it IS basically the same document with the dates changed. The planners do not have anything to do with it though...it's a Community Development thing paid from from Community Development grant funds received by the City. Todd could, however, update it himself...and he has an assistant who could easily help him. The document is always given to the city on disc, and it's on the computer there already, so it's very easy to update. Personally, I like Steve Austin....nothing in the world bad can really be said about him. I don't know about his being Sally & Jill's pet...but I know Todd likes the way it looks and sounds to hire a consultant to do a job for him, such as the Annual Action Plan. The city of Hickory is an entitlement city meaning they will be funded regardless of how wonderful the grant application sounds...it's a formality, preparing and submitting the paperwork. It DOES have to be done, but you are right...it could be done without hiring the job out.

Mr. Austin was allocated $2,500 during the meeting from February 17, 2009 for Hickory’s Annual Action Plan and Application for Funding to HUD for 2009-10. On October 6, 2009 he received $7,500 for Preparation of the City of Hickory’s Five Year Consolidated Plan and One Year Annual Update, as Required by the US Department of Housing and Urban Development, in the Amount Not to Exceed $7,500.

So in the last 20 months Mr. Austin has been allocated and will have been paid $12,500 for work that could be done in-house. If I am wrong and what has been stated in the comments is wrong, then please explain it to me so that I can explain this to the public.


C. Amendment to Traffic Ordinance by Reducing the Speed Limit From 35 mph to 25 mph Along 23rd St Dr, NE From the Intersection With 25th St, NE South Approximately 1,296 Feet to the Intersection With 24th St Ln, NE, 25th Av, NE From the Intersection With 23rd St Dr, NE East Approximately 200 Feet to the City Limits, and 25th Av Ct, NE From the Intersection With 23rd St Dr, NE West Approximately 350 Feet to the Dead End - Under the City’s Traffic Calming Program an application was received for a speed limit reduction along 23rd St Dr, NE as indicated above serving the Grayfield Subdivision. Staff determined that a speed limit reduction from 35 mph to 25 mph would be acceptable, if the residents desired. The petition packages were received and were determined by Staff to be valid and met the 75% signature requirement. Staff recommends approval.

D. Amendment to Traffic Ordinance by Regulating Access to 2nd Av, SE Between 5th St, SE and Lenoir-Rhyne Boulevard, SE With Certain Class Vehicles - The above-described street segment has long been the de facto truck route used to access Lenoir-Rhyne Blvd., SE from origination points to the west. This traffic flow proved to be undesirable in several respects. Even with the recent completion of the Lenoir-Rhyne Blvd. Extension project, 2nd Av, SE continues to experience undesirable and unnecessary truck traffic. Following a thorough analysis by the City of Hickory Traffic Division, it was concluded to prohibit access of certain classes of trucks along this segment of 2nd Av, SE, being no truck tractors with semitrailers, commercial vehicles with three (3) or more axles, commercial combination single unit trucks with trailers or buses with trailers.

E. Approval for the City of Hickory to Purchase Property From Freddie Mac Located at 304 3rd Street, SW in the Amount of $25,900- The subject property is located adjacent to City-owned property located at 347 2nd Avenue, SW containing approximately 6.18 acres, which is Hickory Police Department (HPD) property. The purchase of the .41 acres could be used for potential expansion of the HPD. The property is in foreclosure and a vacant house is situated on the property. Tax value is $80,600.00 with a purchase price of $25,900.00. Staff recommends approval.

F. Transfer of Cemetery Lot in Oakwood Cemetery From Eric McNeely and Gloria McNeely to Beth W. Huffman

G. Approve Change Order No. 2 With Hickory Sand Company, Inc. Regarding the Cripple Creek Outfall Replacement Project in the Amount of $86,879.15 - Staff requests approval of the project close out Change Order No. 2 with Hickory Sand Company, Inc. in the amount of $86,879.15 for the Cripple Creek Outfall Replacement Project. This change order is necessary to address project concerns that have risen during construction and field conditions on the project. The largest item on the change order is replacement of the pier crossing beside Moose Club Lift Station. Other items are related to construction. The change order amount of $86,879.15 represents 3.86% of the original project cost and results in a total project change order amount of $141,579.15 or 6.29%. Funds are available within the project and no budget amendment is necessary.Staff recommends approval.

H. Affirm Designating Mayor Wright as Voting Delegate for the National League of Cities – 2010 Congress of Cities Annual Business Meeting in Denver, CO on Saturday, December 4, 2010 - As a direct member city, Hickory’s elected officials are entitled to vote at the annual business meeting. To be eligible to cast the City’s vote, each voting delegate and alternate must be officially designated by the City.

I. Budget Ordinance Amendment No. 8 -
1. To budget a $532 insurance claim check from Trident Insurance Company to the Fire Department Maintenance and Repair of vehicles line item. This payment is for damage sustained to the Ladder 2 fire apparatus on 09-11-10.
2. To appropriate $15,000 of General Fund Balance and budget in the Landscape Division Street Tree Planting line item. This appropriation is to pay for the plant materials needed for the Lenoir Rhyne Blvd. Landscaping project. The total cost of the planting project is $17,000. $2,000 is budgeted in this line item therefore
an additional $15,000 appropriation is necessary.
3. To budget a $205 insurance claim check from Nationwide Insurance Company in the Water and Sewer Pipes, Hydrants and Meters line item. This payment is for damage sustained to a fire hydrant on 09-13-10.

Informational Items:
A. Report of City Manager Berry’s Travel to Raleigh, NC for the NCLM Tax and Finance Legislative Action Committee Meeting on October 5, 2010; mileage - $165.50

B. Report of Mayor Wright’s Travel to Washington, DC to Meet With Legislators and Government Officials on October 7, 2010; airfare - $493.15; per diem - $22.40

C. Report of Alderman Guess’s Travel to Washington, DC to Meet With Legislators and Government Officials on October 7, 2010; airfare - $493.15; per diem - $22.40

D. Report of Alderwoman Patton’s Travel to Washington, DC to Meet With Legislators and Government Officials on October 7, 2010; airfare - $493.15; per diem - $11.74

E. Report of Alderman Seaver’s Travel to Washington, DC to Meet With Legislators and Government Officials on October 7, 2010; airfare - $493.15; per diem - $22.40

F. Report of City Manager Berry’s Travel to Raleigh, NC for the NC Spin H2O Conference on October 12, 2010; mileage - $169.00; registration - $60.00

New Business - Departmental Reports:
1. Approval to Amend Engineering Agreement With Louis Berger Group, Inc. for Additional Engineering Services for Grace Chapel to US 321 Connector Road Project in the Amount of $15,187.36 - Request approval to amend the original agreement with Louis Berger Group, Inc. dated July 29, 2008 for additional engineering services for the Grace Chapel to US 321 connector road project in the amount of $15,187.36. A redesign of the Open Bottom Culverts (OBC’s) is needed due to comments by Raleigh NCDOT indicating what was originally approved by the local DOT will not be approved. The change also includes additional environmental work that the NCDOT has agreed to undertake in house at their expense. This project is funded by the NCDOT and therefore must comply with their comments for approval. By letter dated September 22, 2010, Caldwell County will reimburse the City of Hickory $7,600.00 toward this amendment. The City of Hickory therefore will be responsible for $7,587.36. An appropriation from fund balance is required. Staff recommends approval. Chuck Hanson went over the above facts in his presentation to council. Council unanimously approved.