April 15: Countdown to T-Day

It is that time of the year again when business owners acquire ulcers, CPAs go underground, and all of us largely lose our cool. The reason for it is April 15th, which is tax day! The day that all our procrastination and failure to plan come back to haunt us. I have friends that I don't even talk to between now and around a week after the big day. They are either too miserable to deal with or are completely detached with what is going on around them. I'll wait until after the tax season for them to check back in.

Wouldn't it be great if April 15th was just another day? That is the exact objective of an organization called Americans for Fair Taxation, which wants to replace our current income tax system with a sales tax. Take note, the word is replace, not supplement. This is an idea that I have supported for quite some time and commented on it often in this blog. The advantages to it are numerous and significant:

* It would dramatically reduce the cost of doing business, making the US a magnet to attract companies from around the world that is comparable (or greater) than the affect that cheap labor has had on the world economy.

* It would greatly reduce tax fraud and would force criminals and illegal immigrants to contribute to our tax system through their purchases.

* It would get more Americans participating in the tax system than the current system that is punitive on those who are the most productive. However, it also has mechanisms to protect those who are truly poor.

* It curtails the abusive powers of the IRS.

* It would lead to enormous economic growth in virtually every area, including for those many believe would suffer if the income tax system was eliminated. Home building would explode and CPAs would be needed to plan business growth and expansion instead of mere defensive measures.

The time to change the system is now. The reasons to do so are really unlimited.

See How They Run: The Potential for Precedent

The 2008 election for President is full of potential firsts. There is the possibility of the first female President with Hillary Clinton, or first African American with Barack Obama, or the first Mormon with Mitt Romney (see photo, left). Clinton and Obama are considered the two Democratic front runners and Romney is considered (barely) in the top tier of Republican candidates.

What are their chances?

* Hillary Clinton isn't likely to win, in my opinion, and many rank and file Republicans hopes she gets her party's nomination in the belief that she will spell defeat for Democrats in November. She is considered one of the most polarizing politicians in the US today. She has the highest negatives (and, ironically, positives) of all the major candidates. Winning the campaign for President is predicated on candidates picking up voters as other candidates pull out of the race. I believe that those who will support her, are largely supporting her now. The defeat of other candidates will find their voters going elsewhere.

* Barack Obama's biggest problem is that he is simply too liberal to be President of the United States. He wants to dramatically increase taxes on wealth creation, he promotes socialized medicine, and he generally behaves as though the US is the single biggest problem on the world scene. Obama is even having problems among African American voters with many from that natural base going to Clinton (thanks largely to the popularity of her husband). I believe Americans are ready for a person of any race, but not this particular African American. This isn't due to skin color, but due to the content of his beliefs.

* Mitt Romney is the most likely of these three candidates to break precedence. The former governor of Massachusetts is getting some harassment because of his Mormon religion, but in the end I think he will over come those objections. Romney is charismatic, comes across as very Conservative (although his positions have evolved over time), and has an excellent family life (very important to the crucial Evangelical voters). There are things in the Mormon theology that should be of concern to the general Christian population. But most Americans, even Evangelical voters, don't study theology. If he looks, acts, and talks like a Christian -- which he certainly does -- he will be embraced by most of them. His beliefs are certainly more attractive to the Conservative base than those of Guiliani or McCain.

In the end, I have my doubts that any of the above are going to pull it off. I believe the next President will probably be a former or sitting Governor and from the West or South. I say this based on the population changes we have seen over the last several decades and the fact that virtually every candidate has fitted that bill since 1960. There are lots of months elections between now and 2008, it should be an interesting race.

Donald Trump May Need to Learn That There Is Such a Thing as "Too Much" Exposure

Donald Trump (photo, right) is seen everywhere. He can be found battling Rosie O'Donnell of The View over everything from hairstyles to dealing with beauty queens, or on his TV show The Apprentice humiliating aspiring candidates, or commenting on how terrible President Bush is as a leader at every opportunity. Trump sincerely believes that all publicity is good publicity.

However, "the Donald" may be taking his publicity seeking agenda too far with his participation with Vince McMahon (photo, left) of Wrestlemania in a fight over their respective hairstyles. Or, specifically, their actual hair. The ads imply that there will be a wrestling event between two "professionals," each representing McMahon and Trump. It is being billed as the "Battle of the Billionaires." If Trump's wrestler wins, McMahon loses his hair and if McMahon's wins, Trump loses his.

I don't care what anyone tells me, this type of publicity can't do anything for the ultra luxury brand known as "Trump." Furthermore, it is impossible to believe that, just four years ago, some actually discussed him as a possible third party candidate for President. Most thought he would be taken quite seriously. Now, the thought shocks most or makes them laugh. The Trump brand and reach is still quite amazing. He needs to do work hard to protect it, not compromise it.

Ms. Dewey Isn't Worth the Wait

One of my favorite shows is the Big Idea with Donny Deutsch on CNBC. Tonight they discussed several innovative ideas including a "dynamic new website" called "MsDewey.com." The primary attraction to the site is suppose to be the lovely Ms. Dewey (see photo), who provides an interactive approach to search engines.

The site is the product of Microsoft and the lovely Ms. Dewey (played by actress Janina Gavankar) invites people to put a search item in, comments on your subject, entertains herself and the user while you scroll the results, and simply offers a unique approach to searching.

The site is suppose to challenge Google and other search engines with its unique interaction and beautiful model. I don't believe any of Ms. Dewey's competition are losing sleep. The concept seems like it would be attractive -- combine entertainment with searching. However, I think it fails on several fronts:

* It is extremely slow in its initial loading.

* It is very slow in its searches.

* It makes several mistakes. It does such often. I searched for several items that came up with thousands of responses on other search engines and turned up nothing on Ms. Dewey.

In my opinion, Ms. Dewey will not work because I believe people do not want to combine searches with entertainment. In my case, I will forget what I was looking for if I am sidetracked by entertainment. Mixing the two is very frustrating. Worse still, Ms. Dewey isn't that interesting. I find getting the exact information I want quickly to be far more enjoyable. I think most search engine users will agree.

Is Katie Couric a Hypocrite?

Katie Couric (photo) went through the terrible drama of losing a loved one -- her husband -- to cancer. All of us were in awe of her personal courage and wished her and her kids well through the process. Recently Elizabeth Edwards announced that her cancer is back and is not curable. The best she can hope for is to keep it at bay through various treatments.

Katie Couric interviewed Elizabeth and her Presidential contender husband, John, recently on the struggle of running for office while battling cancer. Katie told the candidate and wife that "family goes first and then work" and with that in mind, how can a candidacy for the Presidency be explained or justified. Mr. and Mrs. Edwards were shocked, mainly because the question was rude and, even more so, who it came from. Katie Couric, when her husband was diagnosed and fighting for his life, worked the very busy schedule of a professional journalist. Such individuals work 50 or 60 hours a week (and even more), and she appeared to not miss a beat.

As I indicated earlier, America supported Couric's decision as courageous. I believe it was during this time that the Today Show became unbeatable in the ratings war. So for her to be harsh to the Edwards who are choosing to fight their battle in this very personal way, it seemed inappropriate. America concluded that the battle that Katie's family had against cancer was very personal. I believe Americans feel the same about the Edwards. Some families might want to buckle down, be close, and fight it privately. Others may want to go on with their lives, while they have their lives, with gusto. This is the approach the Edwards' family is bravely taking. I believe everyone is shocked by Katie's response.

People are speculating as to why Couric was so harsh. Some say it was lashing out because of her continued rating problems, others believe it was from the deep convictions she developed because of her own personal experience, and others still believe she was merely being a tough journalist. If it is the latter, it didn't work. The Edwards quickly entered into the defensive mode and, in my opinion, the quality of the interview declined. She could have accomplished so much more from a position of empathy, rather than being holier than thou.

I'm no fan of the Edwards when it comes to their political beliefs, but I'm impressed with their courage and I commend them and others for the very personal way they are fighting this battle.

Much Ado About Nothing... Yet We Have Real Concerns

While liberals continue to want to persecute Attorney General Alberto Gonzales (see photo) for non-existent crimes in his recent firings of US Attorneys, the world faces a serious problem with Iran. The fanatic regime has told the world it will not comply with international agencies when it comes to its nuclear programs and is holding British sailors hostage (our closest ally) without cause.

The Attorney General has done nothing wrong, but demonstrated poor manners in the way he fired several US Attorneys. Such attorneys have worked at the pleasure of Presidents since the posts were created. They are political jobs, so why are we surprised that they are being treated that way? Should the AG have said performance was the cause? Definitely not. Should he have done several firings so close together? Clearly not in good taste, unless he fired almost all of them at once like others have done in the past. But are any of these acts criminal, deserving hearings? No way.

The President has stated that we need to move on and we can't afford the time consumption or waste in resources pursuing this ridiculous non-case. That is why he is rightly resisting the effort of many in Congress to make this seem criminal. If the President doesn't draw a line here, he will spend the next two years of his Administration doing nothing but fighting battles of politics and not of statesmanship. We elected him and the Congress to govern. The President must be allowed to do that and the Congress needs to muster up the courage to do the same thing or the new Democratic majority there now will find themselves a minority again. They have been the minority since the early 1990s, so that may make them comfortable. The Democrats have got to know that being in the minority in politics is a relatively easy position. Your primary objective is to criticize. Once your side wins, you are expected to do so much more.

It is time for the Democrats to stop holding this government hostage through hearings and for them to rise up and do that for which they were elected, which is to govern.

When it Comes to Iraq, Can the Democrats Afford Victory?

On the news this morning there is discussion of a bill in the US House of Representatives designed to put a deadline for US troop withdrawal from Iraq. I agree with many of those in the military that setting a deadline is the equivalent of providing important strategy information to our enemies. The logic is simple: if the enemy knows when we are going to leave they will know when to increase attacks (weeks up to withdrawal in order to make sure the US leaves). Congress forcing the President's hand in this way is paramount to treason, in my opinion.

Meanwhile, since the troop surge, violence has dropped significantly, areas are becoming more controllable, and people are cooperating with the US forces (including the turning in of terrorists). Everyone from the ground forces to the brass are reporting momentum in the right direction.

With each story indicating good news, the Democrats are getting more concerned. In fact, imagine what would happen to the Democrats, politically, if we actually won the war. They have invested in their rhetoric, policies, and positions in defeat. To win now would be devastating for Democrats, what a sad position for them to be in.

I'm not arguing that the Democrats lack patriotism, but rather that they have forced themselves into such a terrible position that can make them appear that way. We need to recognize the position they are in when they state their positions we develop our views accordingly. For me, I join the 57% of the population that doesn't want to leave without victory and I believe in our troops ability to meet that objective.

What I Learned About Morning Television at the YMCA

I make an effort to go to the YMCA 3 or 4 times a week about ten weeks a year. Seriously, I go fairly often, but rarely in the morning. It is usually between 9 and 10 PM when my younger kids are in bed and the older ones are available to watch them. When I do go during the day it is usually after 9 or 10 AM because I have a hard time getting going earlier and I hate the pre-work crowd. This morning I found myself dressed for the gym at around 7:15 after dropping off my kids at school and a very busy day in front of me, so I decided to go ahead and get the Y behind me or I wouldn't likely be able to go at all.

These days I am focusing on the treadmills and as soon as I walked in I noticed that the long line of treadmills had many more bodies running, walking, and fainting on one side of the room over the other. I kind of felt left out, all that was left for me was the five empty treadmills at the end. I reminded myself that I should be happy I could get in at all and went straight to work. When I looked up at the TV screens I noticed that the channel nearest me was CBS (The Early Show), the channel after that was ABC (Good Morning America), CNN was next, and then finally, where the huge crowd was I found NBC. The ratings companies have said that the Today Show dominates the mornings, I began to think I had evidence of this on a very personal level. Almost everyone, even the poor soul next to me who looked like she was going to need to see a chiropractor from straining to watch NBC, was focused on Today.

I used my time to see what CBS and ABC had to offer. The first thing I noticed is that these shows are now virtual clones of Today. They have somewhat similar personalities, Harry Smith (photo above) from CBS seems to now be using Matt Lauer of Today's tailor. When the Today Show is outside with the crowd, so is CBS and ABC. When the Today Show team is on the couch, so are the the personalities at ABC and CBS. If I were one of the personalities on ABC or CBS, I would take it very personally. The only difference is that CBS puts a much stronger emphasis on local news than the others, other than that it looks like "NBC and the Wannabes."

Something I noted that was interesting is that Good Morning America is trying to incorporate Web 2.0 ideas into the show itself. They showed a video of some kid riding a skateboard inches from a police officer on a handrail. That police officer pushed the kid in the bushes near by because it wasn't safe for either one of them. The question, posed on the Web of course, was whether the response was appropriate. The hosts asked a guest to weigh in and they wanted the response of the audience to his comments. It was an interesting way to encourage audience interaction and it appears to be one that is used fairly often. It isn't, however, enough to make me stop watching Today.

I have said before, I don't really understand the attraction. I use to be a strong Good Morning America fan for years. Until I figure it out why I like Today, I'm going to either have to get to the Y early or make sure I go after the Today Show is over. With the continued expansion of the show through out the day starting in September, I might develop a huge weight problem.

India Needs to Remember How It Became a Player

India has become a major economic power because it has recognized how the world has become very "flat" indeed. Our ability to transport, inform, relocate, and communicate at very low (and in some cases, no) cost has made it possible for almost any country to become a major economic player. This has depended, of course, on their ability to create an economic environment conducive to attract business.

Recently, India has gotten higher marks in these areas. Lower taxes in many areas, very competitive labor in terms of quality and cost, and easier to understand business laws have made India a better place to do business and has led to an economic explosion. But everything isn't perfect in the economic world of India.

Michael Dell (above, telling it like it is) of Dell computer is taking the Indian government to task for the level of taxation on PCs. In a recent Forbes Magazine article it was pointed out that "Michael Dell told India on Tuesday that it needed to cut tariffs that hike the cost of computers by 20% to 25% if it wanted to attract more foreign investment, particularly from his company." The message that Dell is sending to India and any other country interested in investment is simple (this would include the US): "if you want more business, make it as affordable as possible to do business in your country."

If India won't lower the tariffs, some other country likely will, in the on going quest that companies like Dell pursue in order to make computers as affordable as possible. Many will argue that the government needs some revenue in order to conduct its activities, and there is no doubt that is true. But every government is going to have to learn the lesson that Walmart has learned in conducting its business: earn a little off of every activity and watch that activity explode (remember, pigs get fat and hogs get slaughtered). Walmart has among the lowest profit margins per item sold of any company in the world, but it is also among the most profitable. It is the amount of business that Walmart does that keeps it profitable. If governments took that approach in taxation, they would become business magnets and still generate huge amounts of revenue. Such an approach isn't only good for business, it is good for government, consumers, and everyone involved. India has become a major player by eliminating barriers, it clearly needs to remember that fact.

With Friends Like Danny Glover...

There have been no formal announcements as of yet, but it appears that actor Danny Glover is coming close to making a decision for whom he intends to vote for President of the United States. On a local Fox affiliate this morning, Glover was on discussing who he liked for President. He rather handily dismissed Democratic front runners Barack Obama and Hillary Clinton as mere "glamor candidates." They are both attractive and articulate, he argued, but lacked the roots and understanding necessary to meet the needs of poor people. The candidate who does, according to Glover, is former Senator and Vice Presidential candidate John Edwards. He believes the multi-millionaire trial lawyer understands the needs of the poor and is the candidate the nation needs.

Getting love from Hollywood is always very popular among Democrats, so many would translate this as very good news. But Glover is extremely radical, even by Hollywood standards. Following his famous speech in which he referred to President Bush as "the devil," Hugo Chavez (see photo of Glover and Chavez above) went out and met with his good friend Glover. Chavez, the individual who wants to see the US government overthrown and many believe he is supporting the drug trade, appears to be good friends with the one time popular actor. This is the same Chavez who now runs his government by decree and with a parliament that has given him permission to govern as he so desires. Instead of good news, this could translate into the kiss of death for Edwards.

Edwards has decided to take on the radical mantle of the Democratic Party, similar to what Howard Dean attempted to do in 2004. The logic behind this is that all of the other candidates are trying to crowd the safe "middle" positions. The candidate's more radical stands are in contrast to the Edwards who tried to portray himself as a moderate in 2004. There is a saying in politics that now seems to transcend both parties to a certain extent -- campaign to the right, govern from the middle. Edwards has has failed to receive that memo.

In the end, Edwards will likely not be on the ticket at all. I have no idea what cabinet position he desires. He is quickly becoming, especially with friends like Glover, a very small footnote in US political history.

New Book Helps Parents to Raise Americans

I haven't read this book yet, but I'm requesting it today for review. It addresses a concern that I have had for quite some time, which is our institutional disdain for the things that made America great. One of the more powerful and pervasive of such institutions is the news media, which has been a frequent theme in this blog.

The book is entitled How to Raise an American (by Myrna Blyth and Chriss Winston) and it is filled with activities, fun facts, and other useful information to help our children love their country. This is, of course, one of the objectives of public school, in my opinion, but they seem to be failing on this front in many respects.

A great example of this was expressed by one of the book’s authors, Myrna Blyth, who pointed out in an interview on Fox & Friends that in a typical US history textbook there are only 80 references to America’s first walk on the moon verses nearly 1,000 on the Iran-Contra scandal. Young Americans are being hammered on what’s wrong with our country, but hearing very little about one of the greatest achievements of all mankind.

Again, I haven’t read this book, but I have been long concerned about the lack of such quality information in the classroom. If they are not going to get it there, we need to help them get it at home. I intend to read the book and give you my grade on it at a later date. Meanwhile, you might want to begin doing a little research on it yourself. Our children could certainly use our help in this matter.

When Sports Publications Take Themselves Too Seriously

Sports publications tend to want to shift to "serious" journalism whenever they can (e.g. current events news, business news, etc.). Keith Oberman of MSNBC used to be an anchor on ESPN and now he is one of the most liberal hosts on TV. About a week ago Sports Illustrated decided to take on the heady issue of climate change as a cover story of its magazine.

The cover was compelling (see photo, left), with water up to the thighs of an ace picture at the Florida Marlin's stadium. It is made to make us fear the future, not only of the weather and the planet, but of sports itself (something that is a real concern to armchair quarterbacks)

The magazine is full of speculation and is alarmist, but does not have much science, except for the anecdotes at the beginning of the story. I don't consider Sports Illustrated a serious source for science or current events (except for maybe steroid use of athletes). I actually want it to be the one place I can check out from all the drama dominating the news and where I can focus on my favorite past times.

I get my science, politics, and other current event information else where. I want my sports publications to do the important thing of keeping me entertained.

On This Week's Houston Business Show

This week's Houston Business Show was unusually busy, to say the least, with four guests instead of the usual two or three. Any regular listener knows that our studio is small (see photo, right) from the comments I have made about it during the shows. This week, with so many guests coming in and out, it was particularly tight! Fortunately, most were on the via telephone, but this picture right gives you an idea of the cramped circumstances in which I work. So much for media being glamorous.

However, I did have a great slate of guests and if you want to be kept up to date of who is going to be on when and to get information on our updated 24/7 archive, sign up for our newsletter here.

Here's a quick run down of who was on today, and what they spoke about:

* Colette Ann Lombardo of the Sterling Memorial Villages. This innovative program for senior citizens allows them unique ownership opportunities and the ability to be cared for according to their individuals needs. It is excellent at keeping spouses together and affords financial savings that traditional programs simply can't provide.

* Also Ralph Fain of the R/Fain Group provided excellent information on purchasing a franchise.

* Michael Frewer, Executive Vice President of the Bank of Houston provided insights on the changes in the banking environment.

* Noel Halgreen of (Sona MedSpa) discussed his latest articles at the Houston Business Show website.

Check out our archive to listen to recent shows online 24/7. Listen to the show live on Mondays at 1 PM at CNN 650.

Another Case for Independent Films

Houston Business Show Advisor Andy Valadez, reported the following to me: "Our client T4 Pictures just received 5 Dove Award Seals (the highest award given) for the script 'School of Redemption'. They also said it was the best script they had ever read in the family genre! You can read the strong review here: Dove Award."

"This seal recognition will open a lot of doors for the movie makers as it will increase the chances for distribution, sourcing an investor, product placement deals, and attracting name actors. This, at a time when theatre owners are looking for family movies, because of traffic turnout. The business plan identified that there was a huge opportunity to make a family movie that crosses generations."

I want to congratulate T4 and Andy Valadez, check out his whole article here. Check out my earlier discussion on the value of Independent Films as an investment here.

When It Comes to Blogs, Is It "Here Today, Gone Tomorrow"?

I'm always interested in trying to improve the quality of my blogging, so I often spend time researching blogs recognized by others as among the best on the Web. Recently I put "best political blogs" in my Google search engine and found a link to Forbes Magazine on the subject. I was attracted to Forbes because I largely agree with them ideologically.

I immediately jumped in to check out their choices and found the following reoccurring messages: "nothing new here," "no longer posting," and other posts indicating their demise either voluntarily or due to other causes. At first I found this alarming. Although all of them had high Google rankings, how could they go from the top list of publications to no longer in business? I looked a little closer and found that many of them that do have posts are months old. Finally, I looked at the link and found that this was a list from 2003.

This, of course, made me feel a little better because it provided explanation, but it made me wonder about the future of this blog. Sure, eventually, all things will pass, but three or four years doesn't seem that long to go from the pinnacle in their industry to a mere after thought.

All of these blogs were written by individuals and their survival depended on those people remaining interested or able to keep writing. It helped me to see the wisdom of a Huffington Post (see founder Arianna Huffington's photo, above), which is made up of the opinions of many rather than one. Any one of these writers can walk away, but the blog would continue. I might have to join or put together such a blog.

A Blogging Success Story

Many journalists, talk show hosts, and others in the media subscribe to Google Alerts in order to keep informed on specific issues (this is a great free, tool that I strongly recommend). I have several, including one called "Houston Real Estate" which I use to prepare for the Houston Home Show I host with Mark Jeffrey of UBuildIt (Friday at 1 PM on CNN 650). Recently I received an alert that included a blog post that discussed Houston's booming economy and how that should contribute to continued growth in Real Estate in the future.

That post was written by Rose Stabler (photo at left, a local business broker), who ironically just decided to start a blog in the last few weeks. It was an excellent piece and clearly shows that Houstonians can expect this economy to continue to grow, that unemployment should be well below the national average, and that housing should continue to improve for investment and other purposes. I asked her to be on today's show and she did a fine job pointing to the reasons for continued optimism. Her interview will be available online at the Houston Business Review (I suggest getting a free subscription to it by clicking here so you can be kept up to date on all our media). I encourage sharing that segment of the show with others who wonder about the future of Houston's economy.

I'm not suggesting that if you start a blog you will be on the radio speaking to thousands in a few weeks. I do believe, however, that starting a blog can differentiate you as an expert (something Rose is doing very well in her blog), can attract attention from those who can help your business, and can provide discipline to help you become better at what you do. For those of you who spend hours reading blogs, but debate whether or not you should get in, the water is great.

See How They Run: Why Are They Running So Early?

This is the earliest time in US history for candidates to declare they are running for President. The question many are asking, is why? I think this can be attributed to several reasons:

* Some candidates have never stopped running. John McCain (R-AZ) has been running since 2000 when he challenged George Bush. He has continuously raised money and organized and has been biting at the bit for years. Hillary Clinton (D-NY) has been running for President since 1992 and many argue that she served many of the years her husband was in office. In order to appease their supporters and to try to deter potential competitors (this obviously didn't work), these candidates had to jump in early. Them jumping in early forced others to do the exact same thing.

* Others on the lower end of the electability scale jumped in early to build support and even an identity. Duncan Hunter (R-CA) (see photo, above), Christopher Dodd (D-CT), Mike Gravel (D-AK), and Ron Paul (R-TX), are just a few of the candidates that fill that bill. This group has different objectives. I'm sure all would love to be President, but they are also interested in merely seeing their perspectives out there, to push their opponents in their ideological direction, or to even run for a high level post once the election is over. For example, many believe Joe Biden (D-DE) is actually running for Secretary of State in a new administration or even the US Supreme Court. Others honestly believe that the big name people will actually fall on their face, creating opportunities for these lessor known candidates.

* Some have major name ID, but lack national experience. This includes Rudy Guiliani (R-NY) and Barack Obama (D-IL), both of whom are major players, neither of whom have been tested on the national scene. Many are arguing that Obama is actually running for 2012 and is building momentum and working through his mistakes now. If he is lucky, he will have the same success as Bill Clinton who many said he was doing the same thing in 1992.

* Speaking of working out mistakes, all of the candidates would like to have as much time as possible, in order to be judged in the most favorable way.

The question I have is, will all this early running help improve or hurt the electoral process? Will it excite more people or bore them to tears? My guess is that most Americans are going to be so sick of the elections, they will simply want them over with by November 2008. On the other hand, I believe candidates will increasingly early in elections to come. In fact, don't be surprised if someone announces for 2012 (keep your eye on YouTube) any day now.

How the Big Box Hardware Stores Make Money

Recently two of my kids had a school project that required a trip to the hardware store. I don't like hardware stores. My idea of "do-it-yourself" is researching the service I need online and asking someone to come out and fix it. In fact, my history of fixing things myself has been one of making what ever needed repair far worse off than before. Any way, I couldn't hire a handyman to help with this project, so off to the store I went.

I had a list of items necessary to build, what I thought was, a guillotine at first. Fortunately it ended up being a catapult, which could be dangerous but was clearly safer than a guillotine. My oldest son wrote me the list that his little brothers would need at the local Home Depot -- mainly nuts and bolts. When I got to the nuts and bolts aisle I notice that all they had were boxes and bins marked appropriately and you would simply grab what you needed. Most of the items were cheap, 15 cents here, a quarter there, etc. There was one or two dollar plus items in a list of around 20 things, but I was wondering how they were going to make any money.

Finally I got to check out. It took around 40 minutes to find what I was looking for (I told you I was pathetic), so I was ready to go. The lady who checked me out looked at my bag of metal pieces and said, "you don't know how much these cost, do you?" I had a blank look on my face that, I'm sure, answered that question. "Okay" she said as she went to a giant price book to look things up. I gulped. It appears that the hard part had actually come.

She went through the list, matching each item to the picture and a number on each piece. I began to notice that she wasn't charging enough on a few items. This was after around 10 minutes (it seemed) and only going over two or three items. I had to tell her the truth, even though we were only talking pennies here, when all of the sudden she charged me around $2.00 for an item that I recall was around 85 cents. There were now two such items, now I'm at $4.00 when it should be approximately $1.70. I was getting worried and when she was finally done (it seemed around 20 minutes), I was clearly paying more than what was in that bag. But was it worth it? I decided that it wasn't and it appears I was forced to pay a "time tax" in order to get out of there with some day left.

I have spoken to others and this is a problem with hardware stores in general. Since all the competitors do it this way, there is little to no impetus to change. So, as I walked away after wondering how the big box stores can make money off of all those little pieces, I realized it was one minute at a time.

The Ideology of the House Leadership

Recently I read an article that liberal Congressman Peter Stark (D-CA) is the first confessed atheist Member of Congress and, in passing, the article mentioned that he was a member of the Congressional Progressive Caucus (CPC). I've heard of the group and it is made up of the typical liberal characters that we see so often in the news. I became curious to learn more and have done a little research and I find that the organization to be very interesting to anyone who is worried about their pocket books or even America's institutions:

* The organization was founded in 1990 by socialist Congressman Bernie Sanders (I-VT). Incidentally, he calls himself a socialist, I'm not throwing names here, he finds the name a compliment.

* It is the single largest caucus in the US House of Representatives.

* All current members are Democrat (since Sanders, who is an Independent, now serves in the US Senate). There are 69 members and it is about 1/3rd of the Democratic Caucus).

* Of the twenty standing committees in the House, about 11 are chaired by members of the Caucus, including Charlie Rangel (D-NY) who chairs the powerful tax law writing Ways and Means Committee.

What do their members stand for? Wikipedia, quoting from the cite, indicated that "the CPC advocates 'universal access to affordable, high quality health care,' fair trade agreements, living wage laws, the right of all workers to organize into labor unions and engage in strike actions and collective bargaining, the abolition of significant portions of the USA PATRIOT Act, the legalization of gay marriage, strict campaign finance reform laws, a complete pullout from the war in Iraq, a crackdown on free trade and what they see as corporate welfare, an increase in income tax on the wealthy, tax cuts for the poor, and an increase in welfare spending by the federal government."

Tax cuts for the poor? They don't pay taxes and, in fact, receive an earned income credit. "Universal access to affordable...health care" is an euphemism for socialized medicine. A living wage would be something like former CPC member and current Speaker of the House Nancy Pelosi (D-CA) has back in her San Francisco district of California -- roughly a $9 an hour minimum wage. An increase in welfare spending? Say hello again to the multi-generational poverty that plagued our economy for years (as the saying goes, "the more you subsidize something, the more you get of it").

I believe we can't afford the government we have, let alone one dominated by an organization such as the Congressional Progressive Caucus.

Cut in Deficit Shows Tax Cuts Work

Newspapers around the country are reporting that there was a significant drop in the deficit for the first five months of the budget year. How significant? More than 25 percent than it was a year ago.

Was this due to a significant decline in spending? No, federal spending is at an all time high.

Was this due to a huge tax increase? Not yet, but we do know future tax cuts are going to the way side because the Democrats have pledged to not support new ones and abolish as many as they can of the ones on the books.

According to the White House and the Congressional Budget Office, the reduction in the deficit is due to a dramatic increase in revenue. The San Diego Union Tribune reports "for the first five months of the budget year, revenues are up by 9.3 percent to a record $954.4 billion." If not due to a new tax increase, what is the cause of this increase in revenue? The tax cuts passed earlier in this decade would be the single biggest contributor.

Tax cuts make it cheaper to participate in economic activity and makes the potential for profit worth the risk of lost income. This is, of course, tax cuts that are geared towards those who are paying the most in taxes, because they also are the creators of wealth. I have argued this point over and over again. The tax cuts work and we should demand Congress to remove more barriers to wealth creation in order to get more revenue, more jobs, and more prosperity. Remember what John F. Kennedy stated so eloquently: "A rising tide lifts all boats." The tide he was talking about was tax cuts that would have a profound ripple effect on the whole economy. He was right then and it is right now.

On This Week's Houston Business Show

On this week's Houston Business Show I interviews Jim Stein of the Bank of Houston, Steve Hansen of Summit Financial Resources, and Jim O'Neill of Lone Star Sound.

Jim Stein discussed the enormous growth of the Bank of Houston and the secret of the bank's success. The Bank of Houston has gone from $20 million in assets to over $200 in just two years and he attributes that growth to its commitment to community banking. As a result it has gone from a single main location to three in just two years with future growth in mind.

Steve Hansen of Summit Financial Resources discussed an up coming speaking event for the National Association of Business Women Owners in which he will help that audience develop "a financial statement bankers will drool over." Coming up on March 22, I think any person in business will find it helpful.

Jim O'Neill, our latest business show expert discussed his new blog entry about to be added to HoustonBusinessShow.com. It is all about YouTube and how smart entrepreneurs can take advantage of that unique website to promote their business. In addition, Jim discussed a new program that we are developing to give people the opportunity to get TV ad exposure with virtually no production costs. For more information click here.

For the latest in all Houston Business Show media, visit my What's New Blog at HoustonBusinessShow.com. For information on when you can hear today's program online and to receive weekly updates on what's new, subscribe to my free newsletter at Houston Business Review.

Are Vanity Numbers in Trouble?

Back in the good old days people typically only had to remember 7 numbers in order to complete a call. Those numbers began with a word emphasizing the first two letters found correlated to numbers on the keypad (mine began as "LIncoln", which was "54"). With the rapid growth in the population and the changes in telecommunications, virtually every city now has to use ten digits. Still, the smart business could make it easy for potential customers to find them through the popular vanity numbers.

An apartment complex might have a number like (333) 444-RENT, with that word at the end making it easier to remember. Recently I was driving along in my car and I heard an ad for an upcoming concert in town and I wanted more information. I pulled out my phone and began to dial away and the last five digits was a name. Unfortunately for me, and those who use Blackberrys and other more modern phones (I use the T-Mobile Dash), I couldn't find the numbers (since the keypad conforms to a keyboard, I would have to "guess", which wasn't worth the effort in my opinion). In a recent interview with Richard Sonnier, our Houston Business Show expert in IT, it was pointed out that roughly 10 percent of all phones fall into this category. This means about 10 percent of cell phone users will not be able to easily navigate using vanity numbers. This number will only grow.

So what will replace vanity numbers? Well, these new phones virtually always have web access, so the web sites will continue to grow in importance and prominence. For those interested in calls, there will be a move towards finding numbers that are easy to remember (e.g., no more than 2 or 3 unique numbers per phone number).

Being able to change and flexibility is important in our world of business, as we see vanity numbers are finding themselves, like so many other things in our world today, a victim of the Internet.

Have You Ever Seen Technorati's Blog Rankings?

My oldest son signed this blog up with Technorati and, from what I can tell, it is moving up its ranking fairly well. The lower the number, the higher the popularity, I went from being in the several millions a few months back to being around 380,000 (give or take a few) today (of over 65 million blogs). I became curious to find out about the top ten. What kind of sites are a part of the Tecnorati elite? I'm sure all of them had to register with Technorati to be noticed, but I can't say for sure. However, what I can say for sure, is that blogs still appear to be a part of geek heaven.

Here is the top ten list cited directly from Technorati's Popular page with my comments in bold/italics:

1. Engadget (see logo above)
By WeblogsInc · 3 hours ago
http://www.engadget.com/
27,336 blogs link here
All about technology and for serious students of such at that. Check out the number of blogs with link there. With my entry here, make that 27,337.

2. Boing Boing: A Directory of Wonderful Things
Boing Boing is a weblog of cultural curiosities and interesting technologies. It's the most popular blog in the world, as ranked by Technorati.com, and won the Lifetime Achievement and Best Group Blog awards at the 2006 Bloggies ceremony.
By Mark Frauenfelder · 2 hours ago
http://www.boingboing.net/
20,327 blogs link here
Boing Boing hasn't read the writing on the Technorati wall, it is now number two by a rather large number. However, it has huge support and, again, a strong technology focus.

3. Creative Commons Deed
16 hours ago
http://creativecommons.org/licenses/by-nc-nd/2.5
19,993 blogs link here
This is a hang out for scientists, researches, and others who have intellectual property to protect.

4. Gizmodo, The Gadget Guide
3 hours ago
http://www.gizmodo.com/
17,107 blogs link here
The name says it all. It is another technology haven.

5. Techcrunch
By Michael Arrington · 2 hours ago
http://www.techcrunch.com/
16,872 blogs link here
Ditto here. Five of the first five are largely made by geeks, for geeks.

6. The Huffington Post
By Arianna Huffington · 4 hours ago
http://www.huffingtonpost.com/
14,572 blogs link here
Finally a blog for the rest of us! A blog people like myself can actually read! Unfortunately it is about politics and has a liberal axe to grind. I have to admit it though, I check it out fairly often. The stories are largely well written and the content vast. Admittedly, some of the stories are outrageous, but it is an attractive site none the less.

7. TodayLink.ir اخبار ایران و جهان
3 hours ago
http://www.todaylink.ir/
13,569 blogs link here
I'm sorry, I read English! Seriously, this Iranian news oriented blog is the most popular non-English blog on the web.

8. Lifehacker, the Productivity and Software Guide
4 hours ago
http://www.lifehacker.com/
13,021 blogs link here
Another geek guide.

9. Daily Kos: State of the Nation
4 hours ago
http://www.dailykos.com/
11,462 blogs link here
Another rare non-tech blog in the top ten. Like Huffington, it has a left wing political agenda.

10. PostSecret.
PostSecret is an ongoing community art project where people mail in their secrets anonymously on one side of a homemade postcard.
By frank warren · 19 hours ago
http://postsecret.blogspot.com/
10,949 blogs link here
This is unlike any blog in the top ten and unique among blogs in general. I've seen it on TV and am impressed how big of a crowd it attracts.

So what do I learn from this study of the leading blogs? Generally they must be fairly high tech or politically liberal. Oh well, tough luck. I'm none of the above. Other important traits is that they are highly focused as a rule (something mine needs some work on as well) and they actually have a great deal of traction (which requires time, something I am starting to get).

Over time I hope that blogs warm up to right wingers, who like to discuss a plethora of issues, and who feels fortunate just being able to turn on my computer. We will have to wait and see!

ABC Taking Geico Caveman Prime Time?

It's true, ABC seems very interested in having a series based around the character in the quite famous Geico TV commercials. I say "real" TV series (with quotation marks), because the commercials already are just that -- a series of commercials with an actual storyline (one of the reasons the network became so interested in it). They are a mini TV series. All ABC will do is make them an actual show with a little less product placement.

I have been impressed by these commercials for quite some time and commented on them weeks ago. They are important to the world of advertising because they recognize one of the biggest challenges facing sales and marketing today -- how do you keep the consumer's interest? The era of the same old commercial -- regardless of how cute, clever, or even sexy -- being enough for the viewer to take notice is over. In the future, commercials will look like actual programming.

In the March Issue of Wired Magazine the cover story is about our "snack culture" in which individuals want small pieces of entertainment that they can consume quickly and then move on to other items. This lends very well to the Internet and to companies smart enough to take an advertising approach like Geico. These cavemen commercials are revolutionary today, I predict they will be common place tomorrow.

So You Want to Be a Millionaire?

Lotteries are big business and the winners in the Mega Jackpot were a major story in the news today. Lotteries attracts millions of dollars from individuals who are looking for short cuts in their move from rags to riches. One of my favorite professors, Arlie Hoover, back at Abilene Christian University, use to call lottery tickets "a tax on ignorance." The reason for this is the odds are so poor of winning (e.g., 13 million to one in California). But what about the lucky person who wins the occasional 7, 8, or even 9 digits in lottery dollars? Surely they are happy for their big win?

Well, the truth is, often they are not. After being pestered by loved ones and people they barely know for part of their winnings (you didn't earn it, and I need it), many have to move away and start a new life. Others often give the money away or spend it like there is no tomorrow and find themselves bankrupt at a much higher rate than the general population (because although they have a large sum of money, still know nothing about keeping it), the have higher rates of divorce (because spouses will often have different values and didn't realize it until they had a large sum of money), and even suicide rates because they sadly discovered the money doesn't solve all their problems.

Recently I read about 8 people who had financial ruin follow their lottery win. They reminded me how money obtained without work, often leads to personal disaster. Instead of envying those who through dollars into things like lottery and some how win. I suggest you be reminded that the real winners are the ones who make their wealth through hard ward and investment. That is the American way.

New Media at the Houston Business Show Website

I am delighted about the rapid expansion of experts and the quality of content they are providing at the Houston Business Show website. Now, in order to make it easier to find the information you want, I have developed a new page designed to provide up to date information on new podcasts and articles as they are added. It is he purpose of this page to make your visit as quick, informative, and profitable as possible.

Today alone saw the addition of several new podcasts and articles:

* Bruce Kaufmann of Kaufmann Capital discussed the importance of performance in developing a business plan.


* Noel Halgreen of Sona MedSpa previewed the latest trends in stopping the habit of smoking.


* Andy Valadez discussed the enormous growth of product placement in movies and weighs the value of such an approach in advertising in his innovative "Front Line" series.

The above are just a few of the latest media. For more information please check out the page here. I suggest you do so daily. If you wish to get a monthly reminder of what is going on in our media, subscribe to the Houston Business Review ezine. Finally, if you want to learn more about the experts program, drop us a line at kj_hbr@sbcglobal.net. We are continuously visiting with leading authorities in order to provide the best in business news and information.

Why the Media Hates Good News

If you love conspiracy theories, you will love this post, but I think I have finally figured out why the media hates good news and loves bad. This subject has been of great interest to me and the following are just a few of the titles I have had on the subject:

* More Bad News for Those Who Love Bad News

* The Half Empty World of the News

* As the Economy Enjoys Good News, Critics Receive Bad

I have written several more and they all have a similar theme, the media lives off of bad news. Furthermore, I believe that the media makes a living off of bad news. There are some logical reasons for the media to like bad news.

People are not nearly as interested in good news as they are in bad. As Don Henley said in one of my classic rock favorites -- give us the dirty laundry! News, by design, is meant to warn, protect, and prepare. Most of the stories that fall in these categories, tend to be negative in nature. If the weather was perfect, who would need to know the forecast? If all neighborhoods were safe, there would be no stories about the parts of town to stay away from. And if all things were perfect, we would likely find the news really boring. This has been a huge force in driving the global warming hysteria.

More sinister than this, and this is where my conspiracy theory comes out, when the economy is performing well, many businesses don't invest nearly as much on advertising. When people can easily find clients, they are less likely to invest money in marketing. When the economy gets weaker they are often forced to make such expenditures or face terrible consequences. Bad news can foster a negative view of the economy, which can lead to an actual economic decline.

I know, it is a little far fetched, but when I talk to my associates in media many are actually glad about the possibility of a rumored economic decline and think things might be improving for their business. Call it what you will, but I call it the economics of bad news.

The Authorities on the Houston Business Show this Week

On this week's Houston Business Show (today at 1 PM on CNN 650)I interviewed Richard Sonnier, our IT expert from Nimble Services; Sam Morris, representing the Bank of Houston; and Mike Alexander, our Insurance expert from ABM Insurance.

Richard (photo, top) discussed some of the major innovations going on in the ever changing world of the Internet. Specifically he reviewed a new program developed by Yahoo to counter Microsoft Office.

Sam Morris (photo, middle) discussed the commitment to community banking that is pervasive at the Bank of Houston and how that has contributed to the institution's rapid growth (from $20 million in assets when it started two years ago this month, to almost $200 million today). Also, Sam is a graduate of Northwood University, which is one of my favorite schools in the country because of its commitment to free market economics. That certainly made the interview more enjoyable.

Finally, Mike Alexander (photo, bottom) discussed the looming deadline facing seniors when it comes to making changes in their Medicare Supplement program. The cost and inconvenience could be serious if individuals fail to make changes by the deadline at the end of March.

To hear archived shows visit the Houston Business Show website. Subscribe to the Houston Business Review and keep informed of up coming shows or when new podcasts are available.

Bill Maher to America: "If Cheney Was Dead, More Americans Would Be Alive"

Bill Maher (photo to the left, possibly frightening himself) has been irresponsible when it comes to his approach to current affairs for years. He even lost his show on ABC called "Politically Incorrect" because of terribly insensitive comments about September 11th (essentially he argued that the terrorists were brave as they stayed in the planes as they hit the buildings, while the US were cowards as they lobbed missiles at their enemies.). Now Maher (on his HBO show Real Time) defends the radically liberal blog, the "Huffington Post," where it was suggested by many readers of that site that we would all be better off if Vice President Dick Cheney were dead (expressing disappointment over the failed assassination attempt against the VP this past week.). His only criticism of Huffington's propaganda tool is that the posts were removed following pressure by more responsible voices of the media.

Bill Maher has a cult following and I wouldn't be surprised of some maniac in this country become "inspired" by his comments and go after Mr. Cheney in a quest to "save lives." Many actually applauded his comments in the audience. There was a time in this nation's history where if individuals made such a comment, it would be interpreted as an actual threat against that elected official. I miss those good old days. Like the person who yells "FIRE!" in a crowded movie theater, this goes beyond the boundaries of free speech.

I don't believe HBO should bother to ask for an insincere apology (the only kind Maher is capable of giving). Instead it should demand that Maher leave immediately and simply suggest that he don't let the door hit himself as he leaves the building. People who have HBO should cancel and sign up for one of the many other movie channels that are out there until the network takes just such a stand to that type of behavior. I'm shocked by the collective yawn being demonstrated by most Americans over this behavior. Freedom is a two sided coin, the other side is stamped firmly with responsibility. It is time for us to hold Maher and HBO responsible for its quest for freedom through the abandonment of common decency. Let's hold them responsible. If you agree, contact HBO today.

You Always Wondered What the Green Room Looked Like

Every serious talk show mentions the Green Room. That wonderful place where celebrities lounge and relax while waiting for the opportunity to show off to their audience. Over the years I have mentioned ours, but never revealed them until now.

You have heard such a room mentioned on the Today Show, discussed on Leno, and joked about on the David Letterman Show. Now, exclusively for listeners of the Houston Business Show, we are bringing our Green room to you (see the picture to the right).

You are seeing the very place our guests enjoy only the finest refreshments and visit before the show, where our experts plan their time on the air, and where great radio is developed. Note the comfortable chairs (there are actually a couple there, stacked), the well stocked vending machines (there's a soda machine next to the one pictured). With a coffee maker producing brew that will put hair in your chest, who needs Starbucks? Yes it is fabulous and although Hollywood won't show you their secret Green Rooms, I thought you would like to see what I'm referring to on most every show. Now you can see why our guests are anxious to get in the studio!

Must Reading: The World is Flat by Thomas Friedman

I've read several articles about and by Thomas Friedman's The World is Flat: A Brief History of the Twenty-First Century, but finally got around to reading it. It is one of the most important books on what is going on in the economic world that I have read in decades. It should be required reading for every policy maker in Washington, DC.

The book examines how the Internet, the massive changes in which items can be cheaply and quickly shipped, and other factors have made it possible for virtually any person at virtually any place to compete with others.

What the reader learns from this book is that there is little governments, businesses, and societies can do about these changes. "Resistance is futile." Rather governments need to figure out how to compete in this changing world rather than try to force this globalization to accommodate them. I will be doing more posts about what I have learned from Friedman's book in the future.

Friedman isn't a free market advocate, per se, and you can tell that he is puzzled and disturbed about the trends he is monitoring. However, his observations are excellent. As a strong believer in the power of the market to succeed, his book actually makes me quite optimistic about the future and hopeful about many economies that have been long term economic basket cases. This is predicated, of course, on our ability to comply with the changes that are taking place and not fighting them. If we comply, the US will be more powerful and influential, and the world itself could become a better place.

If you haven't read this book, I think you should consider it. If you want to check it out and other great books, please go through my bookstore at the Houston Business Show website. When you get there, simply click the Barnes & Noble button and start searching.

See How They Run: The Truth Behind Giuliani and McCain as Front Runners

The front runners for the GOP nomination for President are former mayor of New York Rudy Giuliani (see photo) and Sen. John McCain (R-AZ). Giuliani has the lead, which seems to be widening daily. The truth is, neither one of these gentlemen will likely be on the top of the ticket by November 2008 and if they are, Republicans will probably lose.

The GOP has always treated the conservative wing of its party as a loud and obnoxious group that tries to wield too much influence. The truth of the matter is, the conservatives are the tail that wag the dog. Every candidate that has successfully obtained the GOP nomination since Ronald Reagan has run as a strong conservative. Bob Dole was the only one the conservatives seriously doubted and he lost when it mattered in November of 1996. The only other Republican to lose since than was George H.W. Bush for reelection. He convinced Republicans that Reagan had converted him to a true believer by 1988 , but supported a tax increase that was philosophical anathema to conservatives and poison to the economy. Republicans can't get away with statements such as "read my lips, no new taxes" and pass a significant tax increase once in power, just ask the first Bush.

So how does one explain the surveys that have Giuliani and McCain winning by a huge margin among GOP voters? There are several reasons for this:

* Many people vote in the primary, but do nothing in the Fall. Only the conservatives activists, as a whole, get people to the polls for the GOP in November.

* It is really early in the race and both of these candidates carry messages and histories that resonate with conservative voters. McCain is, in spite of how much I disagree with him on many of his views, a war hero and he is largely right when it comes to Iraq. Meanwhile, Giuliani was amazing during 9/11 2001 and won every one's heart as the nation's mayor. But mayor and President are two different things and he doesn't hold positions on social or even economic issues that lines up with the party faithful. However, Americans as a whole are solidly behind winning the war in Iraq and both of these candidates have taken the most hard line positions on that issue.

In the end these candidates positions on social issues and taxes will likely come back to haunt them. I am just hoping that happens before Republicans nominate one of them.