Honoring the Honor Students- Providing a Badge of Excellence

Grade Inflation is a hot topic among academicians. It has a number of effects, one of which is that it makes more students eligible for membership in honor societies. SOme of my students have been invited to join so many that they have asked me if it is worth paying the dues to all the societies. The NYT has an interesting article on the topic- As Honor Students Multiply, Who Really Is One?
In one of the courses I aught this fall, I told the students that A stood for excellence and B for above average, and in a large population, only half the students should be above the median- A or B. One of the students gave me a bad rating on "Rate My Professors" site and commented that "He is a horrible professor and it tactics make no sense...you'll work the hardest youve ever worked in a class and still get a c." Of course, with her writing skills, she should be happy that she got a C. On the other hand, another student wrote that "Best teacher I've ever had! I loved his class. He is hilarious and extremely knowledgeable of interesting information. A very enjoyable class." Sometimes, tougher standards are appreciated.

Education...at a price

Earlier this year I showed students a World Business video clip on Education City, as an example of globalization of education. That clip showed the promise and the expectations. Today an article in the NYT takes a look at that particular story, now. The piece, "University Branches in Dubai Are Struggling," is quite interesting and reveals that "...Michigan State, with only 85 undergraduates, is seeking to raise that figure with a scholarship offering half-price tuition to the first 100 qualified transfer applicants for the semester that starts next month.
“We’ve had close to 200 transfer applications, some from other universities in the U.A.E., but others from India, Pakistan, Saudi Arabia and Oman,” Dr. Mullan said. “We are not compromising on quality, even if that means it takes us longer to gain traction here. We actually turned down 30 percent of our applicants last fall.”
Dr. Mullan said that while the break-even point for the campus was now expected to be five years, up from the original goal of three years, Michigan State was determined to remain in the Gulf..."

E-Textbooks

A few years ago, I had written a case study titled "Paper textbooks in a Digital World" which described the paper textbooks used in K-12 and College even though the rest of the world was going digital. E-Readers seem to be coming of age this year, so it would be intersting to see when students will start adopting the e-textbooks en masse.

What we eat...

An interesting article in the NYT, "Sorry, Vegans: Brussels Sprouts Like to Live, Too" generated many comments from readers. The writer makes a point that even vegans can "kill" and that plants are as living as other creatures.

She is absolutely right, but farmers and plant growers show a lot of sensitivity to the plants. We harvest potatoes only after the plant is at the end of its natural life cycle. We harvest tomatoes when they are ripe, but we do not kill the "whole plant." In fact we take the seeds and create more tomato plants. In order to propagate the species the plants have to distribute their seeds.

For us, it is the road to spiritual growth- the increase in sensitivity. Understanding that we are causing pain for a plant when we cut its leaves or fruits is a first step. On the other hand, we do plant diverse vegetables and increase their numbers.

An Ear for an Year....

Serena Williams gave an earful....and went away money-full

Tiger Woods had a lot of irons in the fire..still made out with a lot of dough

Barack Obama tried to please everyone, but made out with Nobel Price...

Spitzer went after everyone....and lost almost every thing

Not One Republican Senator voted for the Health Care Bill...apparently all Republicans are hoping for an unhealthy year

A recession..in thinking

Gail MarksJarvis writes in the Chicago Tribune that "After living through one of the most brutal recessions in U.S. history, many late teens and young adults could be scarred for life, adopting behaviors that could skew everything from their own careers to politics, corporate profits and the stock market. Academics are beginning to study the implications of the recent recession on the current generation of Americans that age, suggesting it may have much the same effect as how the Great Depression changed so many of the youth of the 1930s into conservative spenders and investors. Experts said people between 18 and 25 are the most likely to be affected for life as they internalize the struggles they've seen in family and friends and contemplate the power they will have over their own destiny..."

In a class on Global Business I showed the students a video on Cirque Du Soleil and asked them to comment on the Globalization of Talent. All students pointed to the threat to their jobs and outsourcing- no surprise there. But not one student observed that Cirque Du Soleil did not "outsource" its talent- it recruited its talent from around the world. Prior to CDS, kids in Mongolia might not have had many options. But CDS has recognized that these kids are amazing contortionists, and has hired and used them in its shows. This company has created many jobs for people around the world- not moved jobs. Similarly, Over a span of more than a decade, Google has created many jobs in the U.S. and elsewhere. When the students don't want to think, and are fearful of competition, then it is cause for concern.

High Priced Presidents- of Educational Institutions

It is rather surprising to note that there are hardly any CEOs or Presidents who make less than the President of the U.S. Even the heads of minor league schools like Stevens Institute of Technology are joining the major league ranks in terms of compensation- the President of Stevens is being charged with "...plundering the endowment and receiving $1.8 million in illegal low-interest loans for vacation homes, with half of them later forgiven..."

It should not be any wonder that educational standards are abysmal...from Head to students...

Reflecting on a Semester... while it's still Green

Coming back from India on August 28 and going to the first year students' Big Questions graduation right away. Classes started the following Tuesday- this was an interesting semester. I taught the First Year Seminar, Global Business, and Principles of Marketing courses. I pushed hard and raised the bar across the board. This has been one of the most rewarding of all my semesters of teaching at EC.

The Global Business course had an interesting mix of students. Hopefully they learnt something from the many fascinating events happening around them every day. As one student wrote, "...This class has helped me learn that many other countries, especially China and India are very strong and capable business countries. We are going to be competing with them and other countries for jobs even now more than ever. I am thankful to be aware of this. After taking this class I do feel very well rounded in the field of business. It has opened my eyes to new ideas and concepts that I had not been familiar with before this class. I also feel confident in my ability to be able to work with a firm that operates globally. I feel that I have obtained enough knowledge in this course that I would be ready for almost any kind of business, either foreign or domestic. Knowing the many concepts I have learned in this class like: globalization, Foreign Direct Investment, exchange rates, trade theories, trade regulations, NAFTA, CAFTA, and the many cultures of countries overseas, I feel prepared enough to challenge myself with any job that requires me to know about businesses on a global scale. I enjoy this class and I would recommend it to both business and non-business majors. This is the kind of class that will expand your ideas and knowledge about the world."

The Principles of Marketing Course was a lot of fun- but was also difficult to assess. Half the class got A grades, and perhaps a couple were borderline. The nice thing about this course was that several topics we talked about had eventful outcomes during the course. We did an exercise on Boeing versus Airbus, and the 787 had its maiden flight the day of the exam. The top students in the class were quite excellent.

Perhaps the most challenging course, and the most intriguing was the First Year Seminar, "Local Choices, Global Effects." An interesting class, with varied personalities, the students pulled together an interesting course. What made this special was the involvement of a couple of juniors and a couple of graduates and my teaching partner. It made for a great learning experience- for me. The students taught me about vampire electronics and student eating habits. The visit to the Jardine Plant was highly educational. Some quotable quotes from the FYS students-

-No matter where you come from and what challenges you face, perseverance, motivation, dedication, and hard work can get you anywhere you wish to be. This set the tone for the beginning of my college years.

-“Trust but verify.” – Professor Gurram Gopal

-Since August I have become a more independent person. I have come into my own and have learned my strengths and weaknesses. I am proud to say that I have the drive to succeed. I do all my work to the best of my ability. I know what I am worth and the great things that I can achieve. Like Forrest Gump said, “Life is like a box of chocolates. You never know what you’re gonna get.” Life is unknown and often unexpected, but I am going to strive for my dreams. Whether I make it or not, well only time will tell. What is important is that I try my best now, in this moment.

-This course also helped me to become more in tune with the campus of Elmhurst College. It also made me feel more comfortable here. Through this course I met some of my closest friends here.

-I first decided to take this class, not because I wanted to learn more about how to protect the planet, but because I wanted to be able to hold intelligent conversations with one of my good friends who was always talking about “organic food” and the like. It made me somewhat upset that the only kind of conversations I could have with her was based on opinion, and not fact. I wanted to be able to have these conversations with her and be able to present her with specific information to prove that I knew about sustainability, too.

-In conclusion…. I have come a long way from that first day in this class. I know so much more about green living than I ever thought possible, and I can see the connection between food, energy, and waste management under the broader term of sustainability. They are all interwoven and each individual aspect played a crucial role in understanding sustainability. Food, for instance: by studying food, we looked at organic food versus conventional food. This information led into our next topic of energy; food not only takes energy to grow/produce/make, but it also gives us energy. From energy, we looked at waste, which again tied into consumerism and food waste (compost) and into energy (i.e. it takes energy to make plastics; by recycling plastics, we can cut down that energy.) I am confident that I can now hold those “intelligent” conversations to which I aspired. (In fact, I have already have had some of those conversations with the friend I mentioned earlier. I stumped her in many cases!) This class, however, did not just teach me things about the environment and how to protect it; it also showed me how valuable a liberal education really is. I feel more prepared to enter the professional work world because of this class. And through all of this, as I have illustrated, we, as a class, and I personally, have accomplished the course objectives given to us at the beginning of the class. Mission accomplished, I think.

The Honors Reading Seminar, based on the book 'In Defense of Food' was also quite informative, though I wish the students were more questioning.

****

In addition to the courses, the start of the EC Greenjays on campus was a highlight of the semester. Started by two of my advisees, it is "all green" and holds a lot of promise.

The presentation on the FYS at the NRC Conference on Students in Transition, and a presentation on India at the Indian Prairie Public Library were other activities of interest.

Face-addiction-book

Addictions can take many forms- an interesting article on Facebook addiction in the NYT.

Decade of Decadence

Frank Rich has an interesting piece in the NYT titled 'Tiger Woods, Person of the Year.' This decade has revealed quite lofty greediness- first during the internet bubble, and then the finance bubble. Enron, Worldcom, Martha, Nacchio, and plenty more defined the times. The decade is being capped off perfectly by Tiger Woods. Fortune Magazine ranked him #6 on its 'Forty under 40' list- and said this- "How powerful is the Tiger Woods brand? Consider that as soon as golf's No. 1 lost his $8-million-a-year deal with ailing GM, AT&T grabbed the empty ad space on his golf bag. Or that Woods' $100 million annual haul from tour wins and endorsements makes him the world's-highest-paid athlete and the first to hit $1 billion in career earnings. Or that revenues at Nike Golf have grown six-fold since signing Woods in 1996. Then there's the "Tiger effect": When he was injured last year, viewership dropped by half for a CBS tournament he usually headlines."

Well, Tiger may be competing for the #1 position- in areas other than golf too..

Accolades and Brickbats- Fall 2009

Thank you so much! I was so surprised that I had an all A term. It made the holidays so much better! You have helped me so much throughout the semester and I could not have succeeded without your help! Thank you for everything...You will probably get a couple emails from me during the spring term even just to say hi...KH

Thank you for everything again. I loved your marketing course! I appreciate all the advice you gave me and the time you took to send that email to the psychology department. I will miss
marketing a lot...BB, 12/20/2009

Hey Dr. Gopal I just wanted to take a moment to say thank you for everything this semester. You and your class challenged me more than most of my other business classes. It made me truly work hard to study and understand the concepts and materials in the class. It also made me think "outside the box" so to speak. It wasn't just a class to give you a definition and then write it out, rather it was a class in which you need to learn a concept and then apply it to the real world. I thank you for challenging me as a student to work harder and become better. I also want to thank you for all of your help and advice throughout the semester. It will not be forgotten....JK, 12/18/2009

I believe I have learned a lot of valuable skills in your class that will come in handy in the future...RI

I thought you would like to know that I turned in a paper for one of my other classes and I divided that paper into sections and subsections like you taught us to. My professor said that no one else had done that, and that she really liked that layout because it made my paper a lot easier to read than everyone else's. So I am glad that you taught us to do that!...MB

Again, thank you so much for speaking to her for us. I really appreciate that. Thanks for everything you do! 12/11/09. LM

Dear Dr. Gopal! On Thanksgiving I want to give you my gratitude! I'm very happy I met you and spent such a great time talking with you!...TS, 11/26/09

Hello Prof Gopal, How you doing ?? ...Just joined the organization from Monday. Its going well, however it doesn't require a lot of creativity. So i find it a bit monotonous.!! However, im trying to enjoy it though. But i am still looking for something better to come my way. The book u gifted to me is awesome.. Very inspiring.. :) ...You could come down here for a day and i would love to show you my state, my culture.. .RPT, 11/26/09

Thank you so much Dr. Gopal! It took me a few minutes, but I was able to locate an earlier draft of my paper through the second program, which helped so much. I do not know what I would do without you!..HW

I just wanted to say thank you for letting me come to your classes on Thursday. I enjoyed being back in 230 for a day and I really enjoyed your freshman seminar. They were very nice and a few of them sent me thank you e-mails, and I thought that was wonderful of them. ...MS, 11/22/2009

I wanted to update you on my visit to XYZ College this morning. It went very, very well, and I have found a new path and a new place to call home. I have been Accepted... I am looking forward to this transition in my life very much, and you have played a big role in this change...Please let me know, and again, as always, thank you for your never ending help...AP, 11/21/2009

I just wanted to say Hi! I hope all is well this school year. I also wanted to let you know I'm working as an editor of a small health newspaper in for a fitness company in ....Who would have thought? I got the chance to start it from the ground up. I'm selling advertising, reporting, writing articles, putting the paper together- it's been an amazing learning experience. I'm getting tons of experience that will help me with my next job. I want you to check it out- ....I thought you would be interested since you have heard my dreams of doing something just like this...MKR 11/20/2009

Thank you again for inviting me to your presentations. They were very good (A!). I think it's great that you (and Elmhurst) have a class like that. It's important for young individuals to learn about the importance of their actions....MS

Hi Prof. Gopal, I just wanted to let you know that I started my internship at ... today and I think that I am really going to like it...AD

Thank you again for meeting me yesterday and for all of your advice and information, i truly appreciate all of your help.Also, I've taken a look at the link - interesting information! Have a great weekend,we will be in touch...AP

I was wondering if we could meet sometime this week, maybe Thursday early afternoon - I have made some decisions for next year, and I always know you give great guidance and advice, and I was hoping to talk some of these decisions over with you...AP

Prof. Gopal, Reading a non-fiction book was actually extra-interesting and a welcome challenge, because I am used to the critical mindset of reading fiction and identifying key components of fiction novels. However, with the non-fiction book, I had to get out of the fiction mindset, and address issues that are not only relevant to my life, but to ANYONE's life. We all eat; therefore, the scientific contents of Michael Pollan's book became more real and applicable to me as a reader, because I know that the information contained between the covers apply to my lifestyle and the lives of everyone I know. The book presented a welcome challenge to step out of my fiction comfort zone and immerse myself in a different type of book, discussion, and paper. Thank you for the experience! AH

Gurram good news. XYZ was offered and accepted the internship with ABC. She is very excited. Thanks for the recommendation....KC

Hello Dr. Gopal - I have an interview for an analyst position...Anyhow, the man who wants to hire me said something about "salary requirements" and offered to discuss it, but I wasn't sure what to say and said we could talk about it later. What do you suggest on this? I don't know what to say about my "requirements" or expectations, nor do I know how to negotiate or play the game... What would you advise?...JB

It was so nice running into you yesterday, I always enjoy chatting with you. I am planning my schedule for the rest of my time hear and I wanted to get your opinion on a few graduate program ideas... My advisor is in the philosophy department, so I would like to talk to someone from business, and I very much value your thoughts...WH

Just curious are you teaching the International Marketing class this semester, I really did enjoy that class!...JB

...and since your class, Bus 271 Global Business Honors, was one of my favorite courses and I did pretty well in it, I was wondering if you would be able to compose a letter of recommendation for me. I would be willing to give you any information needed and even refresh your memory about anything that happened in the class last semester. I would really appreciate it if a professor with as much enthusiasm for business and life in general such as yourself would recommend me to graduate school... LB

I have a job....Thank you for all your help. MD, 10/18/2009

Hi Dr. Gopal, I can not thank you enough for writing a letter and posting it so quickly. I appreciate it so very much. Over the past week, I've been busy with working on this application and then on to a few more! Thanks so much for the encouragement! ...NS, 10/15/2009

I hope that things are going well at Elmhur

st and in all other aspects of life. How are the new Elmhurst business students? Are they motivated and excited to contribute their ideas to the world or are they disheartened by the stagnate economy? This current year many of my friends graduated from college and have found difficulty finding career opportunities. Also many other graduate students in DePaul's accounting program are very nervous about getting jobs, especially foreign students that tell me companies are not hiring foreign students. All of this makes me thankful for going to Elmhurst and having a certain advisor that was always looking for opportunities for me....DN, 10/12/20009

I wanted to let you know that I used the Seattle Sutton case again in my SCM 551 class and again it was well received. We had good class discussion and there were a few papers that were stellar. It continues to be relevant and works well in this class...KC, 10/5/2009

I was wondering if perhpas sometime next week I could come in and talk to you.. To be honest, I've rached the point in my college career where I am officially "Lost"... I plan on going to the Career Center...but I always feel better after talking with you - you seem to always give a guiding light......AP, 10/1/2009

Thanks, Dr. Gopal, for your kind words. Mr. ABC enjoys being in your class and it seems like he's having a better semester. You're the best!....Mom of an advisee. 9/119/2009.

I just wanted to give you a quick update on what I've been up to. I am interning at .... this semester...When are your office hours this fall? I would love to stop by and chat if you have time!..AD, 9/4/2009

I am also very interested in studying abroad this J-term and I was hoping to receive your perspective on this idea. Please let me know when I could drop by....CN, 9/3/09

Thanks so much Prof. Gopal! I really appreciate what you are doing as well to help me along...MF, 9/3/09

I just got the email saying that she would sign the overload form! Thank you so much for your help, I really appreciate it!..AD, 9/2/09

**Professor Gopal; Good news! I received notice in July by e-mail that I had been accepted to DePaul's autumn quarter at Kellstadt. I'll be in the Masters program of Economic Policy Analysis (their newest program beginning Fall 2009) along with 16 other students. Everything seems to be coming together quite nicely; professors and students are communicating via Blackboard and we're starting to prepare for some intense review sessions before classes start September 9th. Nonetheless, I'm very excited to be enrolled! Hopefully part-time classes agree with holding a job as well, but I'll be sure to keep you posted along the way!Thank you again for the recommendation, you apparently work wonders!** NB, class of 2009- 8/17/2009

***And by the way, I'm excited to have you as my professor in Global Business this semester! Thanks again for all your help....AD, 8/19/2009

I am back from Montenegro. I jus thought I'd drop you a hello. I had a swell summer, and some pleasant internship experience...AC. 8/24/09

Thank you for meeting with me. It is obvious you are very knowledgeable with business in general and a great resource for anyone trying to do business with India. I listened very intently to everything you had to say. I feel your helped me develop a better plan. I look forward to connecting up with the other persons you direct me to. Thank you so much. I hope you have a wonderful trip to India. Thank you again...BS

I hate to bother you again, but you’re the only person of expertise that I know and who I think would be willing to help me...JB

Monolithic U.S. Media ...now in India

According to FT, "Time Warner will take control of NDTV Imagine, a top five Indian general entertainment broadcast network, for $126.5m in the second deal of the year to expand the US media company’s international portfolio. The company that owns CNN, People magazine and the Warner Bros film studio media company, spun-off its troubled AOL internet division this month, and has said it aimed to increase its exposure in the Indian market, where it currently distributes television networks including the Cartoon Network, CNN and Pogo..."

Let's hope the end result is a little different, and more than one viewpoint is heard on the public airways.

Merkel...the tough plain-speaking one

German Chancellor Angela Merkel speaks plainly. "I have to say an offer by the United States of America of minus 4% compared with 1990 is not ambitious enough in this situation," Madame Merkel said in an address to Germany's lower house of Parliament.

Financing...and Credit

At the UN climate Change Conference in Copenhagen, strong rhetoric has been deployed.

President Eva Morales of Bolivia put things into some perspective when said "...For example, Obama, he asked his Congress for $40 billion more than what has already been spent. The budget of the United States is $687 billion for defense. And for climate change, to save life, to save humanity, they only put up $10 billion. This is shameful. The budget for the Iraq war, according to the figures we have, is $2.6 trillion for the Iraq war, to go kill in Iraq. Trillions of dollars. But directed towards paying the climate debt, $10 billion. This is completely unfair. These are our deep observations of what’s going on. That’s why—for the war, while trillions are going to the wars, on the other hand, to save humanity and the planet, they only want to direct $10 billion. .."

Sunita Narain says that "...Well, I think if President Bush was in kindergarten, President Obama is in first grade, but nothing more than that.... it just means that President Bush didn’t understand—rejected the very notion of climate change for a long time. He also rejected the Kyoto Protocol. And he said that the US will do nothing about it. President Obama accepts that climate change is real, which is welcome, but he also rejects the Kyoto Protocol, and he also puts on the table a very weak target for his country to do. He has not shown leadership at the scale that is needed in the world. The world has a crisis, and we need leaders who can face up to that crisis. And as yet, President Obama has not shown that...."

It is unfair to simply blame the U.S. It has to be noted China and many other countries lend the U.S. government money by buying the latter's debt. So effectively it is China, Japan, Korea, India, and other countries that are partly financing the wars, and that are partly financing the climate change. When one finger is raised at others the remaining four point at us...

Need another example that flies...

I went to lunch with a former student of mine today. During the course of conversation he revealed that the favorite part of the international marketing course I had taught was the exercise involving aircraft manufacturers and airlines. Groups of students would be representing Boeing, Airbus, Embraer, etc., on the manufacturer side and American, Lufthansa, and China Air on the carrier side. The manufacturers would have to prepare sales presentations and the carriers have to do needs assessment. A number of students over the years have told me that this was their favorite exercise. Even this fall we tried this exercise, with the same result. What made this exercise fun was the A-380 versus the Boeing 787 fight.

Today the 787 flew its maiden voyage. Next up would be the A-350. The plain truth is in the plane fight.

Easy times...rest in peace

The happy-go-lucky life, where people just buy and drink and don't care about the world-is going away like the typewriter.

Interesting article in the NYT-Poll Reveals Depth and Trauma of Joblessness in U.S.

The point that's lost is that many people in other countries have been dealing with this for many years.

Pumping Up...Credit

Quite a few economists and pundits are talking about how the jobs and the economy would be galloping if only credit was easily available. The latest is a piece by Tom Friedman in the NYT - The Do-It-Yourself Economy - "The Great Inflection is the mass diffusion of low-cost, high-powered innovation technologies — from hand-held computers to Web sites that offer any imaginable service — plus cheap connectivity. They are transforming how business is done. The Great Recession you know.The “good news” is that the Great Recession is forcing companies to take advantage of the Great Inflection faster than ever, making them more innovative. The bad news is that credit markets and bank lending are still constricted, so many companies can’t fully exploit their productivity gains and spin off the new jobs we desperately need..."

Credit, at least the traditional version, is a dangerous thing. Whether a person's fortunes are up or down, credit has to be repaid- unless one goes "bank"rupt. Credit should be used for emergency purposes and only when the operating cash flow is sound and sufficient to cover the interest and principal payments FOR THE DURATION of the loan.

On or Off Target

We went out shopping tonight and visited Target, Kohls, and Meijer. For a Saturday during the holiday season the traffic in these stores was very thin, just a handful of people going around and relatively few items being checked out. Retailers might plan bigger sales as the season winds down.

Dinning well, and good food for a nice pallett..when economy is fetally hurt..

Some of the words used by students in recent presentations...

Not too green to be Green...

In my marketing course, I was pleasantly surprised to find that nearly every group incorporated the "green" theme into their projects- this is an indication that sustainability has reached critical mass. Cook4U, SPRY, Pure and Simple, Breakfastables, and other great ideas dreamed up by students all had elements of sustainability.

The frustration

with the existing two party system- the Health Care issue seems to be bouncing around like a table tennis ball.

Spending someone else's money...

President Obama's solution- Spend our way to get out of the recession. Reminds one of Bush's appeal to go out and buy....after 9/11.

About President Obama's plan..."...A major part of his package includes new incentives for small businesses, which account for two-thirds of the nation's work force. He proposed a new tax cut for small businesses that hire in 2010 and an elimination for one year of the capital gains tax on profits from small-business investments.

Obama also proposed an elimination of fees on loans to small businesses, coupled with federal guarantees of those loans through the end of next year. His proposal for new tax breaks for energy-efficient retrofits in homes is modeled on the now-expired Cash for Clunkers rebates for trading in used vehicles for more fuel-efficient vehicles. Some administration officials have dubbed the proposed new program "Cash for Caulkers"...."

Watering down the environmental problems...

December 7, 2009 will go down as an important date in U.S. history. Today, "The US government has declared that greenhouse gases threaten human health.The move could allow the US Environmental Protection Agency (EPA) to order cuts in emissions without the approval of Congress..." (BBC News)

However, a news report in the NYT reveals that "More than 20 percent of the nation’s water treatment systems have violated key provisions of the Safe Drinking Water Act over the last five years, according to a New York Times analysis of federal data.That law requires communities to deliver safe tap water to local residents. But since 2004, the water provided to more than 49 million people has contained illegal concentrations of chemicals like arsenic or radioactive substances like uranium, as well as dangerous bacteria often found in sewage. Regulators were informed of each of those violations as they occurred. But regulatory records show that fewer than 6 percent of the water systems that broke the law were ever fined or punished by state or federal officials, including those at the Environmental Protection Agency, which has ultimate responsibility for enforcing standards. Studies indicate that drinking water contaminants are linked to millions of instances of illness within the United States each year..."

A White House Education...in Ms. Rogers' neighborhood...

An interesting piece by Mr. Herbert on Education in the NYT..In Search of Education Leaders. In it he writes "For me, the greatest national security crisis in the United States is the crisis in education. We are turning out new generations of Americans who are whizzes at video games and may be capable of tweeting 24 hours a day but are nowhere near ready to cope with the great challenges of the 21st century..."
My comment: Thanks to Mr. Herbert for writing on this topic and providing a forum for continuing the discussion on this issue. As an associate professor of business in a liberal arts institution, I teach undergraduate and graduate courses. I have taught first year seminars and I can say that a) there is a high variance in basic writing and analytical skills among freshmen, b) there is a high sense of entitlement - a C grade (Average) is considered unacceptable, and everyone expects to get an A (excellent)or B (Above Average), and c) students in my class recently revealed that they put in a total of 2 to 6 hours of studying per week outside of class for all courses combined. The issues are complex, but the changes have to start with parents who should sacrifice more of their time and money for their children. They should not expect teachers to take the entire brunt of education and make geniuses of their darlings. Simplification of life helps- students are juggling many things, and multi-tasking is perhaps not an efficient way to learn the basics.

***Ms. Maureen Dowd had another of her biting articles- The Lady and the Tiger- in which she critiques Ms. Desiree Rogers and Tiger Woods.

My comment: The Obama White House should have reserved the use of 'Executive Privilege' for something far more serious than protecting Ms. Rogers from Congressional questioning. Actions like these make the Obama WH look just like the Cheney Bush WH, which Jon Stewart and others have pointed out.

Mr. Rich strikes a somewhat similar theme in his NYT piece "Obama’s Logic Is No Match for Afghanistan." He writes "...That’s the bet Obama made. As long as our wars remain sacrifice-free, safely buried in the back pages behind Tiger Woods and reality television stunts, he’ll be able to pursue it. But I keep returning to the crashers at the gates, who have no respect for our president’s orderliness of mind and action. All it takes is a few of them at the wrong time and wrong place, whether in Afghanistan or Pakistan or America or sites unknown, and all bets will be off..."

Not surprisingly, a news story in the NYT today reads "The Obama administration sent a forceful public message Sunday that American military forces could remain in Afghanistan for a long time, seeking to blunt criticism that President Obama had sent the wrong signal in his war-strategy speech last week by projecting July 2011 as the start of a withdrawal.In a flurry of coordinated television interviews, Defense Secretary Robert M. Gates, Secretary of State Hillary Rodham Clinton and other top administration officials said that any troop pullout beginning in July 2011 would be slow and that the Americans would only then be starting to transfer security responsibilities to Afghan forces under Mr. Obama’s new plan..."

Bank on WSJ...

To promote its editorial viewpoints, even while writing news.

There is a piece on Hugo Chavez's government takving over banks in Venezuela...The headline reads "Chávez Seizes Three More Banks, Stoking Fears" and the first paragraph reads "Venezuela's government took over three more banks Friday, adding to a growing list of smaller banks in the oil-rich country that have been seized by the government this week on charges that its owners illegally used deposits for their own enrichment.The growing scandal has unnerved depositors about which banks are safe, posing a threat to the broader banking system. It has also become a potential political liability for President Hugo Chávez, because the owners of the seized banks were seen as close to top officials..."

The point to be noted is the use of the phrase "Chavez Seizes..." implying that Chavez personally took over the banks...

On the same first page there is another piece headlined "Regulators Pull Plug on Bank" which reads "Federal regulators on Friday seized AmTrust Bank, a battered Cleveland thrift kept alive this year after local politicians pleaded with the government for a second chance.AmTrust is the fourth-largest U.S. bank or savings institution to fail so far this year. A total of 130 lenders have collapsed in 2009, the highest number of failures since 1992 as regulators intensified their push to rid the industry of weak institutions."

130 banks taken over by the U.S. government is not bad, but the Venezuelan government taking over far fewer number of banks stokes fears...

Turkish Delight

After my spring visit to Turkey I try to follow news about Turkey keenly. An interesting piece on the return to favor of the Ottoman Empire... It is a shame that EU cannot accept Turkey as a full-fledged legitimate member.

Tiger gets bitten...

Two of the many interesting stories today- Tiger being bitten by his affairs, and poll results that show sexting to be more common than is commonly expected.

The goods on the 'Good Life'

The WSJ has an interesting article titled "Working Two Jobs and Still Underemployed."

It cites examples of people whose lives have changed during these economic times. These reveal a lot about how easy it had become to have a good life, while people working much harder in other countries were struggling to make ends meet.

The article describes a gentleman who was "laid off from a New Jersey battery plant in the summer of 2006. Mr. Crane had been earning more than $100,000 a year operating heavy machinery at Delco, a former unit of General Motors. He worked there for 23 years, since graduating from high school. But when he lost his job he was thrust into a netherworld of part-time gigs: working the registers at Taco Bell, organizing orders at McDonald's, whatever he could find."I thought it would be temporary," says Mr. Crane, 49 years old. Three years later, he is selling outdoor furniture by day and pumping gas by night, while worrying about his skills atrophying and spending scant time with his teenage son. He makes about a third of his former pay..." *** How could someone with just a high school degree have that type of life while there are PhDs in other countries struggling to make one-tenth of $100K?***

The writer cites another example- "Among the underemployed is Marty Rasmussen of Walnut Creek, Calif., who was a banking executive for more than 15 years. He and his wife earned a combined income of more than $250,000 a year. As a hobby, he built cabinets and furniture.Two years ago, he was laid off by a big bank in San Francisco. While job-hunting, he volunteered to build cabinets for a local Lutheran church, and some fellow parishioners hired him to do work. His onetime hobby became his sole source of income. In the last year, he earned more than $10,000 replacing windows and installing crown molding. He just finished a pair of nightstands commissioned by a friend paying $700. His wife also lost her job this year and is collecting unemployment benefits. "It is hard transitioning from hobbyist, because I'm used to giving my work as gifts," he says..."

The article goes on to say that "...This means that nearly one in five people are either unemployed, involuntarily working part-time or "marginally attached" -- they want jobs but haven't searched in at least a month. It also counts "discouraged workers" who have stopped searching. "The number would be much higher if we included the mechanical engineers working at 7-Eleven," says Heidi Shierholz, who studies underemployment at the Economic Policy Institute, a left-leaning Washington think tank. Melanie Donahoe might be one of them. The 56-year-old mother of three who lives in Stuyvesant, N.Y, has watched her gross income as a self-employed jeweler shrink from a peak of $55,000 to $40,000 when the recession set in, to perhaps $25,000 this year. " Between the recession and the high price of gold, it just keeps slipping and slipping," she says. This summer, she signed on for work as a government census taker, which paid $15 an hour and tided her over for a few months. Then, she joined a local Lowe's as a part-time cashier, earning $9 an hour. She hopes it leads to full-time work..."

It can be argued that compared to labor in other countries, the workers here have been grossly overpaid, and that this is a reversion to the "mean." The labor arbitrage is one of the enablers of this reversion. When highly qualified workers in other countries make far less than under-educated workers here, the situation is ripe for arbitrage.

The really sad part of the story is that the writer goes on to assert that "Eventually, employment will pick up..." Eventually we will all die. But the notion that the situation will go "back to normal" needs to be questioned. What is the "new normal?" Mr. Obama and Congress can spend other people's money like drunken sailors, but that does not address the fundamental issues- lack of good education and reliance on the easy life.

Obamination...

According to a NYT report "The White House on Wednesday invoked the separation of powers to keep Desiree Rogers, President Obama’s social secretary, from testifying on Capitol Hill about how a couple of aspiring reality television show celebrities crashed a state dinner for the prime minister of India last week. “I think you know that, based on separation of powers, staff here don’t go to testify in front of Congress,’’ Mr. Obama’s press secretary, Robert Gibbs, told reporters during his regular briefing. “She won’t — she will not be testifying in front of Congress.’’... "

This was the hallmark of the Cheney-Bush administration- block Congress. NowMr. Obama is stooping to the same level of standards. Unfortunately for Obama, the expectations are higher, so this will be regarded as an ethical and moral failure on his part. It is rather atrocious that he used the power of executive privilege for so insignificant an issue. Mr. Obama appears to be working hard to be a one-time president.

A chocolaty sweet moment

This afternoon I was in my marketing class and found out that it was the birthday of a student, Anna. Led by Sara and Maria we all sang Happy Birthday for Anna. The sweet moment involved a box of chocolates I had brought in my car for another purpose. I gave the students a little assignment and went to my car, got the box and handed it to the birthday lady to distribute to students. A good time was had by all except perhaps for the original intended receivers of the box of chocolates...

Crossing the visible line

Mr. Friedman, the respected columnist of the NYT, wrote in his column titled "America vs. The Narrative" that "...The Narrative is the cocktail of half-truths, propaganda and outright lies about America that have taken hold in the Arab-Muslim world since 9/11. Propagated by jihadist Web sites, mosque preachers, Arab intellectuals, satellite news stations and books — and tacitly endorsed by some Arab regimes — this narrative posits that America has declared war on Islam, as part of a grand “American-Crusader-Zionist conspiracy” to keep Muslims down. Yes, after two decades in which U.S. foreign policy has been largely dedicated to rescuing Muslims or trying to help free them from tyranny — in Bosnia, Darfur, Kuwait, Somalia, Lebanon, Kurdistan, post-earthquake Pakistan, post-tsunami Indonesia, Iraq and Afghanistan — a narrative that says America is dedicated to keeping Muslims down is thriving. Although most of the Muslims being killed today are being killed by jihadist suicide bombers in Pakistan, Iraq, Afghanistan and Indonesia, you’d never know it from listening to their world. The dominant narrative there is that 9/11 was a kind of fraud: America’s unprovoked onslaught on Islam is the real story, and the Muslims are the real victims — of U.S. perfidy. Have no doubt: we punched a fist into the Arab/Muslim world after 9/11, partly to send a message of deterrence, but primarily to destroy two tyrannical regimes — the Taliban and the Baathists — and to work with Afghans and Iraqis to build a different kind of politics. In the process, we did some stupid and bad things. But for every Abu Ghraib, our soldiers and diplomats perpetrated a million acts of kindness aimed at giving Arabs and Muslims a better chance to succeed with modernity and to elect their own leaders. The Narrative was concocted by jihadists to obscure that..."

This article makes assumptions. One of them is that whatever information is out publicly reveals all...as the writer says, "we did some stupid and bad things. But for every Abu Ghraib, our soldiers and diplomats perpetrated a million acts of kindness..." he does not seem to realize that some of the "things" are far worse than just being stupid and bad. More importantly, our government continues to hide the "bad" information. Today, the Supreme Court vacated a lower court ruling that would have required the government to release photographs showing the abuse of prisoners in Iraq and Afghanistan. Apparently "...President Obama overruled his lawyers, saying his national security advisers had persuaded him that releasing the photos would inflame anti-American sentiment abroad and endanger American troops. Some of the pictures, according to a government brief, showed “soldiers pointing pistols or rifles at the heads of hooded and handcuffed detainees,” a soldier who appears to be striking a detainee with the butt of a rifle, and a soldier holding a broom “as if sticking its end” into a prisoner’s rectum..."

An open society and an educated populace are necessary for tackling these "narratives."

Fighting where it is convenient

Couple of stories today...

4 officers shot dead in Washington state.

A 28-year-old Summit man died early this morning after being shot multiple times about a block from his home.

***The government cannot maintain control of the cities and towns, but the big debate is about troop escalation in Afghanistan. The latter is easier politically...

Call of Duty...Support through the Food Stamp Program

The bizarre world we live in....where people enjoy playing games, and people end up playing games.

From Reuters: "Activision Blizzard Inc. said on Friday its "Call of Duty" video game franchise pushed past the $3 billion mark in global retail sales. Overall, the "Call of Duty" series has sold more than 55 million units since its launch in 2003, Activision said, citing data compiled by NPD Group, Charttrack, GfK and internal company estimates. The company released the sixth title in the series, "Call of Duty: Modern Warfare 2," earlier this month to record-breaking results. The first-person shooter game recorded an estimated $550 million in sales in its first five days on the market. It sold 4.7 million copies on the first day in the United States and United Kingdom alone. "If you consider the number of hours our audiences are engaged in playing Call of Duty games, it is likely to be one of the most viewed of all entertainment experiences in modern history," Activision Chief Executive Bobby Kotick said in a company release..."

From the NYT:

"...With food stamp use at record highs and climbing every month, a program once scorned as a failed welfare scheme now helps feed one in eight Americans and one in four children.It has grown so rapidly in places so diverse that it is becoming nearly as ordinary as the groceries it buys. More than 36 million people use inconspicuous plastic cards for staples like milk, bread and cheese, swiping them at counters in blighted cities and in suburbs pocked with foreclosure signs. Virtually all have incomes near or below the federal poverty line, but their eclectic ranks testify to the range of people struggling with basic needs. They include single mothers and married couples, the newly jobless and the chronically poor, longtime recipients of welfare checks and workers whose reduced hours or slender wages leave pantries bare. While the numbers have soared during the recession, the path was cleared in better times when the Bush administration led a campaign to erase the program’s stigma, calling food stamps “nutritional aid” instead of welfare, and made it easier to apply. That bipartisan effort capped an extraordinary reversal from the 1990s, when some conservatives tried to abolish the program, Congress enacted large cuts and bureaucratic hurdles chased many needy people away. From the ailing resorts of the Florida Keys to Alaskan villages along the Bering Sea, the program is now expanding at a pace of about 20,000 people a day. There are 239 counties in the United States where at least a quarter of the population receives food stamps, according to an analysis of local data collected by The New York Times. The counties are as big as the Bronx and Philadelphia and as small as Owsley County in Kentucky, a patch of Appalachian distress where half of the 4,600 residents receive food stamps. In more than 750 counties, the program helps feed one in three blacks. In more than 800 counties, it helps feed one in three children. In the Mississippi River cities of St. Louis, Memphis and New Orleans, half of the children or more receive food stamps. Even in Peoria, Ill. — Everytown, U.S.A. — nearly 40 percent of children receive aid..."

A Study in Contrasts...

A number of interesting stories today...

A NYT article, "Some Jostling, but Less of a Frenzy Among Shoppers" reveals that "...At Wal-Mart stores around the country, consumers said they were feeling the pain. At a store in Columbus, Ohio, Michelle Perry, 33, a waitress at Waffle House, said she moved this year from a nice rented house in the middle-class suburb of Pataskala to one in a rough neighborhood on the north side of Columbus.“I can’t even let my kids outside without me going with them,” she said. “But we had to do something to save money, and I’m saving $300 a month by switching from renting to buying.”Still, she feels better about her finances this year than she did last year. After Wal-Mart, she was off to Meijer’s to look for an Xbox 360 for her son, and for gifts inspired by the film “Twilight” for her 12-year-old daughter.“She’s got to have the Twilight lip gloss,” Ms. Perry said. “Every girl at her school has it, so she’s got to have it, too.”"

"Food banks nationwide report more 1st timers - With layoffs and wage cutbacks, more 1st time visitors at food banks across the country" describes a number of people going to food banks. "...About half of the almost 40,000 families who have been fed at Holy Family Food Pantry in Waukegan, Ill., about 40 miles north of Chicago, are new, services director Barb Karacic said. They include Gail Small, a 55-year-old school bus driver who got laid off from her $16 an hour job at the Waukegan Public School District earlier in the year and hasn't been able to find work since."It was very embarrassing," Small said. " I didn't tell my children. I didn't tell my dad."Others say at some point, the need to survive trumps emotions.Linda Herrera, 59, went to All Saints Parish on Detroit's southwest side for the first time this week. Herrera, who is on state assistance, said the embarrassment of having to pick up food was offset by her empty cupboards."We were down to practically nothing," she said, carrying out bags containing juice, mashed potatoes, dried milk, rice and beans. " I'm trying to just make it now 'til the end of the month, until I get my check." "

Report Cards versus Annual Reports

As the year winds down, it is time to us to review our performance for the year and give ourselves a report card with a grade. However, it is perhaps better to write an annual report, where in addition to giving ourselves a grade, we review the year that has passed and also look to the future. A good annual report will describe the foundation we have laid for the years ahead, and how we are going to do things in the next year.

LOVE: Leading through Values and Ethics

I have been spending some time thinking about leadership and the framework for decision making. My framework is based on a core foundation of values and ethics. In my business, the top ten key values can be listed quite simply:

1. Practicing before Teaching and Preaching
2. Being ethical, and never coming close to the dividing line
3. Keeping the education of the student as the highest goal
4. Improving the education experience, every day and through every action
5. Driving innovation while ensuring consistency of delivery
6. Being transparent, without being naked
7. Being fair and equitable
8. Listening to all views, but making decisions quickly
9. Sharing any and all knowledge
10. Aligning compensation and rewards with performance and contribution

Under Water...waiting to be rescued

From MSNBC.com

"Nearly one in four U.S. borrowers owe more on their mortgage than their home is worth, a worrisome sign that the housing recovery could be threatened by a wave of defaults, the Wall Street Journal reported on Tuesday.

The newspaper said almost 10.7 million households, or 23 percent of mortgage holders, were underwater in the third quarter, and 5.3 million have mortgages that are 20 percent higher than the value of their home as prices have plummeted since the recession began.

The report cited a survey by First American CoreLogic, a Santa Ana, Calif.-based real estate information company, which said more than 520,000 of the borrowers have received a default notice...."

With supply still exceeding demand significantly, it will take a while for housing prices to stablilize. What happens until then remains to be seen.

"Bing"eing on Fox...

Rupert Murdoch, if the news report from today is to be believed, wants to pull News Corp.'s news content from Google's search engine, and instead provide it exclusively to Microsoft's Bing. In return MSFT is expected to pay Rupert a lot of money. It would be interesting to see how many people think a) Fox is News, and b) are educated enough to find it on a search engine called Bing.

When the Public (Sector) is Milked, Private(ly)

The folks in Government, in bed with the sleazebags from the private sector...

A disturbing report from Businessweek, available on MSNBC.com gives examples of a number of local governments that made deals with the big private sector banks, risking tax payer money in search of higher returns. Now these governments are in deep trouble, and have to fork over billions of dollars in fees and penalties to the banks, in addition to losing billions on investments.

It is egregious dereliction of duty on the part of government officials to risk tax payer money, because the commitments made are never at risk- the state has to pay the employees and honor its commitments. On the other hand, it is even more grossly egregious behavior on the part of the banks to demand the money from the government, when the latter is in the business of serving the people. Services are being cut, schools are getting far less money, and people are paying more, and all the while the banks' managers and investors are looting the citizens. Capitalism run amok, with no ethical behavior on both sides.

Crying...after setting fire

FT reports that "Germany’s new finance minister has echoed Chinese warnings about the growing threat of fresh global asset price bubbles, fuelled by low US interest rates and a weak dollar. Wolfgang Schäuble’s comments highlight official concern in Europe that the risk of further financial market turbulence has been exacerbated by the exceptional steps taken by central banks and governments to combat the crisis. Last weekend, Liu Mingkang, China’s banking regulator, criticised the US Federal Reserve for fuelling the “dollar carry-trade”, in which investors borrow dollars at ultra-low interest rates and invest in higher-yielding assets abroad. Speaking at a banking conference in Frankfurt on Friday, Mr Schäuble said it would be “naive” to assume the next asset price bubble would take the same guise as the last. He said: “More likely today is a scenario in which excess liquidity globally creates a new [sort of] asset market bubble.” He added: “That low interest rate currencies such as the US dollar are increasingly being used as a basis for currency carry trades should give pause for thought. If there was a sudden reversal in this business, markets would be threatened with enormous turbulence, including in foreign exchange markets.Mr Schäuble, a political veteran, took over the German finance ministry after Angela Merkel began her second term as chancellor last month.
Further signs of official frustration about policy steps being taken elsewhere came from Lorenzo Bini Smaghi, a European Central Bank executive. He said in a speech in Paris on Friday that emerging Asian economies were continuing “strongly accommodative monetary policies” in spite of their faster economic recoveries. Separately, Jean-Claude Trichet, ECB president, issued his strongest warning yet that banks must control pay and bonuses. Striking a noticeably stiffer tone, Mr Trichet told the Frankfurt conference: “Profits earned should be used, as a priority, to build capital and reserves, rather than be paid out as dividends or excessive compensation.” The ECB president quoted a warning by Johann Wolfgang von Goethe, Frankfurt’s most famous son, on the need for self-restraint: “If I wanted to lavishly let myself go, I could well destroy myself and my environment. Mr Trichet said: “Compensation and bonuses must remain contained. Otherwise, we would take risks that Goethe [has] already described.”.."

While Mr. Trichet is a smart person and is respected, he should not be complaining and warning now after pushing enormous amounts of money into the system. When risk takers do not see any downside, why should they listen to Mr. Trichet or anyone else? There was a good opportunity to put fear into the system, which Trichet, Bernanke and others squandered.

Evading responsibility...

Mr. Bob Herbert, a thoughtful individual, makes excellent points in his serious column about the current economy- An American Catastrophe. He writes that "...Detroit and its environs are suffering the agonies of the economic damned because of policies, crafted at the highest national and corporate levels, that resulted in the implosion of crucially important components of America’s manufacturing base. Those decisions have had a profound effect on the fortunes not just of Detroit, or even Michigan, but the entire U.S. economy. “We’ve been living with the illusion that manufacturing — making things — is so 20th century,” said Mr. Shaiken, “and that we could succeed by concentrating, for example, on complex financial instruments while abandoning the industrial base that sustained so many American families.” The idea that the fallout from the wrongheaded economic concepts of the past 30 or 40 years could be contained, with the damage limited to the increasingly troubled urban areas while sparing prosperous suburbia, has now proved as phony as Bernie Madoff’s fortune. Americans, whether they live in big cities, suburban towns or rural areas, need jobs, and when those jobs are eliminated (for whatever reasons — technological advances, globalization) without being replaced, the national economy is guaranteed at some point to hit a wall..."

***

Unfortunately, the mindset of many citizens and politicians is such that government is criticized and blamed and minimized during the good times. When the situation turns negative, everyone rushes to the government for aid- whether it is unemployment insurance or health insurance or the big financial bailouts. Mr. Herbert does not address the fundamental conflict- that capitalism in its raw form is a high risk game- winners can win big, but there are many losers, and the losers lose big. In such a system, the losers are at the mercy of the winners. Losers have to beg, and winners can choose to help by donating to charities and creating foundations. However the operative word is "can choose to help." USA is not short of wealth- one just needs to look at the bonuses paid out by the Sachs crooks. If a system that provides for the many is desired, there are a number of models- Sweden, for example. But the Swedish system does not provide for the big wins as much as the USA does. Before blaming the government and globalization and industrial policy, Mr. Herbert and others should dig deeper and debate the fundamental system that has caused this outcome. The biggest problem, from this writer's point of view, is the lack of true education in the public, and a lack of desire in the public to get educated.

Education....a Relationships Business

Mr. McDonough, in his speech yesterday, mentioned a few times that the Blackhawks were in the "relationship" business. I could relate to him because being an educator, I am in the relationship business too. When the relationships translate into students who maintain connections long after graduation or into fans who keep following the team during good times and bad, it can be highly rewarding. An email I received today from a former student who just wanted to ping and update me is one more data point supporting relationships. Another student told me yesterday that her brother was visiting next week and she wanted to bring him to meet me. Life is enriched through these little encounters.

A Rewarding Day

Today one of my former students came and sat in my class- it was a fun experience to see Michelle again in a classroom. She always impresses me with her sharp comments and great humbleness.

A great delight!

Interesting...Interested.

Tonight Chicago Blackhawks President John F. McDonough was the special guest at a fundraising dinner hosted by Elmhurst Memorial Hospital. He was an entertaining speaker, though prone to praising his boss a trifle too much. Mr. McDonough made some interesting points about managing-

• Be interested. Be interesting. Read.
• Hire well. People who are aggresive, driven.
• Don't stop to admire success. If you stop, the game is over.
• Businesss is about relationships.
• Connect to the past and identify the future, but always work in the present.
• Know what you have.

Good messages for everyone.

A lot of hot..and expensive air

The major airlines are pulling as many tricks as they can to raise more revenue. How they plan to increase ridership when making the flying experience more expensive and more miserable is anybody's guess.

Airlines boost peak-day surchargesAirlines boost surcharges on peak days, US Airways to add 5 percent to all tickets in May

Drugged...by the Pharmas...

From the NYT..."Even as drug makers promise to support Washington’s health care overhaul by shaving $8 billion a year off the nation’s drug costs after the legislation takes effect, the industry has been raising its prices at the fastest rate in years. In the last year, the industry has raised the wholesale prices of brand-name prescription drugs by about 9 percent, according to industry analysts. That will add more than $10 billion to the nation’s drug bill, which is on track to exceed $300 billion this year. By at least one analysis, it is the highest annual rate of inflation for drug prices since 1992. The drug trend is distinctly at odds with the direction of the Consumer Price Index, which has fallen by 1.3 percent in the last year. Drug makers say they have valid business reasons for the price increases. Critics say the industry is trying to establish a higher price base before Congress passes legislation that tries to curb drug spending in coming years. “When we have major legislation anticipated, we see a run-up in price increases,” says Stephen W. Schondelmeyer, a professor of pharmaceutical economics at the University of Minnesota. He has analyzed drug pricing for AARP, the advocacy group for seniors that supports the House health care legislation that the drug industry opposes. A Harvard health economist, Joseph P. Newhouse, said he found a similar pattern of unusual price increases after Congress added drug benefits to Medicare a few years ago, giving tens of millions of older Americans federally subsidized drug insurance. Just as the program was taking effect in 2006, the drug industry raised prices by the widest margin in a half-dozen years. “They try to maximize their profits,” Mr. Newhouse said..."