Meet Obama's Czars

Barack Obama has pursued a radical change in the way our nation is governed in virtually every area. These changes have not only been in the area of policy -- such as the increase in the government's role on business, the pursuit of socialized medicine, and the restoration of the welfare state -- but in the way politics and governing are conducted. This includes the stated objective of moving the Census Bureau from the Commerce Department to the White House and the dramatic increase in what are called "Czars."

Czars are nothing new and have been seen by many Presidents over several decades. These individuals could be described as "super administrators" who work directly with the President and, in many previous Administrations, dictate policy to the various Departments. What is unique about the Obama's Czars is the number of them: 28. More than all previous Administrations combined and more than all the Czars of the Romanov family that covered a span of 300 years (18 over 3 centuries). The biggest concern is the lack of Congressional accountability that these Czars have.

One of President Barack Obama's most natural supporters, Sen. Robert Byrd (D-WV) has been one of the most critical when it comes to the issue of Czars, sending a press release back in February about writing to President Barack Obama expressing his concerns over the increasing appointments of White House 'Czars,' and the relationship between these new White House positions and their executive branch counterparts, noting that 'too often, I have seen these lines of authority and responsibility become tangled and blurred, sometimes purposely, to shield information and to obscure the decision-making process."

It appears that Obama is trying to get as much accomplished as fast as possible, with as little Congressional oversight as possible, and this is reflected in the large number of Czars he has chosen.

• Herb Allison - TARP Czar (Assistant Secretary of the Treasury for Financial Stability)



• Alan Bersin - Border Czar (Assistant Secretary for International Affairs and Special Representative for Border Affairs)



• Dennis Blair - Intelligence Czar (Director of National Intelligence)



• John Brennan - Terrorism Czar (Deputy National Security Adviser for Homeland Security)



• Carol Browner - Energy Czar (Assistant to the President for Energy and Climate Change)



• Adolfo Carrion, Jr - Urban Affairs Czar (Director of the White House Office of Urban Affairs)



• Ashton Carter - Weapons Czar (Under Secretary of Defense for Acquisition, Technology, and Logistics)



• Aneesh Chopra - Technology Czar (Chief Technology Officer)



• Jeffrey Crowley - AIDS Czar (Director of the Office of National AIDS Policy)



• Cameron Davis - Great Lakes Czar (Special advisor to the U.S. EPA overseeing its Great Lakes restoration plan)



• Nancy-Ann DeParle - Health Czar (Director of the White House Office of Health Reform)



• Earl Devaney -Stimulus Accountability Czar (Chair of the Recovery Act Transparency and Accountability Board)



• Joshua DuBois - Faith-based Czar (Director of the Office of Faith Based and Neighborhood Partnerships)



• Kenneth Feinberg - Pay Czar (Special Master on executive pay)



• Danny Fried Guantanamo Closure Czar Special envoy to oversee the closure of the detention center at Guantanamo Bay



• J. Scott Gration - Sudan Czar (Special Envoy to Sudan)



• Richard Holbrooke - Afghanistan Czar (Special Representative for Afghanistan and Pakistan)



• John Holdren - Science Czar (Assistant to the President for Science and Technology, Director of the White House Office of Science and Technology Policy, and Co-Chair of the President’s Council of Advisers on Science and Technology)



• Van Jones - Green Jobs Czar (Special Adviser for Green Jobs, Enterprise and Innovation at the White House Council on Environmental Quality)



• Gil Kerlikowske - Drug Czar (Director of the Office of National Drug Control Policy)



• Vivek Kundra - Information Czar (Federal Chief Information Officer)



• George Mitchell - Mideast Peace Czar (Special Envoy to the Middle East)



• Ed Montgomery - Car Czar (Director of Recovery for Auto Communities and Workers)



• Dennis Ross - Mideast Policy Czar (Special Adviser for the Persian Gulf and Southwest Asia)



• Gary Samore - WMD Czar (Coordinator for the Prevention of WMD Proliferation and Terrorism)



• Todd Stern - Climate Czar (Special Envoy for Climate Change)



• Cass Sunstein - Regulatory Czar (Director of the White House Office of Information and Regulatory Affairs)



• Paul Volcker - Economic Czar (Chairman of the Economic Recovery Advisory Board)

Who are these Czars that are dictating policy in the Obama Administration? More to follow.

Kevin Price is Host of the Price of Business, the longest running show on AM 650 (M-F at 11 am) in Houston, Texas and on AOL Radio. His articles often appear in Chicago Sun Times, Reuters, USA Today, and other national media. Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com. You can also find Price on Strategy Room at FoxNews.com.

To Win the War of Ideas, the Focus Should be on Results and not Intent

People can argue until the end of time why people do certain things and support certain policies. Such actions are wildly speculative and create interesting gossip, but do little in helping one's cause. We live in a society that naturally assumes the best in others and are cynical about those who are quick to harshly judge. Furthermore, we get very uncomfortable when people begin to discuss "conspiracy" theories and invariably, discussions about "intent," always lead down that path.

I have to admit, after decades of working in the public policy debate, I am having a harder time myself now more than ever in avoiding the temptation to discuss "intent" rather than results. This is due to several reasons and most of them have to do with the unusual story of Barack Obama:

• His far reaching economic policies had him spend more money in 100 days than Ronald Reagan spent in 8 years


• His radical reversal of policies of containment in dealing with rogue nations


• His associations, that include a domestic terrorist that actually bombed the Pentagon and a minister who baptized him that clearly demonstrates anti-American sentiments

The list goes on and in spite of how impressive this is, history has shown that those who focus on intent that leads to conspiracy theories are discredited, isolated, and marginalized. They find themselves "whispering" about what all these policies are actually about rather than proclaiming with boldness their disastrous results and providing meaningful alternatives.

One of my favorite examples of this is the John Birch Society. One of the most influential people in my early political life was a fellow student in college who was raised in a "Bircher" family, as he liked to say. From him, I learned about the US Constitution, rule by law, the importance of free market economics, and national sovereignty. Unfortunately, the organization is only known in popular culture for its alarm about one world government as seen in the relationships among policy leaders who are members of the Council on Foreign Relations, Bilderberg Group, and the Trilateral Commission. Over time it became know only for what it opposed. Ayn Rand may have hit the nail on the head when she said that the group had become "futile," because it didn't stand for anything, but merely opposed Communism. Its years of work in promoting sound ideas were washed away in conspiracy theories.

If Obama's policies are harmful, tell people why. Discuss how the US debt ratio is now comparable to third world countries and not the President's plans to make us into a rather large Venezuela. Talk about how we are pumping money into the economy at a rate comparable to countries similar to Zimbabwe and the inflation that will produce. But to say that is part of an effort to bring down the government in order to raise up a dictatorship makes for interesting conversation, but it only "wins" those who are already alarmed. Obama won by ten million votes more than McCain. The "fallacy of the mob" makes it difficult for people to accept such an alarmist thesis. Don't make them do such, the results of the policies are bad enough to seriously consider our views.

Our goal should be to effectively win the war of ideas. Focusing on the results of bad public policy is a much better vehicle towards that goal than discussing the conspiracy theories that can surround such bad legislation.

Kevin Price is Host of the Price of Business, the longest running show on AM 650 (M-F at 11 am) in Houston, Texas and on AOL Radio. Eric Bolling of Fox News and Fox Business says that Price’s Blog “is very influential and moves the blogosphere.” Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com. You can also find Price on Strategy Room at FoxNews.com.

Barack Obama: A Progress Report

Recently I invited friends of my radio show and other media to explain how they would grade President Barack Obama's first 100 days. The response was huge. This has become a popular past time lately with radio personalities, policy experts, and people standing around the water cooler. I thought I should ride this trend.

I have noticed that most of the discussions have been largely arbitrary and without specific criteria. People generally agree that the idea behind a report card is to judge the President's performance, but on what basis? Since every President swears to defend the Constitution, that should be its criteria. Furthermore, since this President is still serving his term and has not completed it, this is better described as a "progress report." With that, here are a few areas worth consideration:

• Economic integrity. Unfortunately, most people are unaware about what the US Constitution has to say about government spending, but I encourage readers to start with a short visit with Article I, Section 8 of the Constitution. There they will find around eighteen areas that the government is aloud to operate in and none of them are that sexy or expensive. One will find post offices, post roads, and standard weights and measures. Anything beyond issues such as these were to be left to the states and the citizens thereof. One can probably argue that one cannot expect a politician to purely apply these principles, but this Administration is only furthering the rapid expansion of government in a way we haven't seen and into new roles (such as socialized medicine, the government take over of energy, and other programs). Grade: F


• Fiscal responsibility. In the early 1980s I worked on a project to protest the government's action to increase the national debt to $1 trillion. This was a debt that took almost 200 years to reach. In a breath taking move, this Administration's budget will increase that debt by $1 trillion a year. Furthermore, the Administration has established a debt ratio that is comparable to what is common in third world countries. Grade: F


• Monetary policy. In order to fund a government that is growing out of control financially, the United States increasingly looks like a debtor nation going to foreign country with hat in hands and asking other nations to bail them out. China alone holds almost $800 billion of that debt in Treasury Securities. However, what the US government cannot get other nation's to finance, the Administration will likely use monetizing the debt as a part of its solution. We have already seen a move in this direction with the federal government increasing the money supply by $1.4 trillion in one day. This type of policy will eventually lead to hyperinflation. Grade: F


• National Security. Obama is sending a very strong message to the world of being a very weak President when it comes to his relationship with the rest of the world. He allowed himself to twice be embarrassed in a photo op with Hugo Chavez, he has blown empty rhetoric at increasingly aggressive (and nuclear) Iran and North Korean regimes, he is providing relief for the Communist government at Cuba by allowing US citizens to support citizens there, and he is dramatically cutting defense spending as our nation fights two wars. Grade: F


• Behavior. Most people don't remember the important "attitude" or "behavior" aspects of a progress report, but it is extremely important in this case. Obama has consistently appointed Cabinet members with an incredible level of arrogance and hypocrisy (we have a Secretary of the Treasury, the person in charge of IRS, who didn't pay his taxes). Furthermore, he is creating Czars through out his Administration who are not subject to Congressional scrutiny, which goes against his own mandate of honest government. Grade: Unsatisfactory.

Virtually everyone I have met of all parties are very concerned about the direction this nation is going. Even Democrats have told me that they "wanted more government, but not this much." Some who have voted for OBama are anxiously looking forward to opportunity to vote again and vote different. That process can begin in 2010 when people can change the composition of the Congress and begin to hold this Administration more accountable.

Kevin Price is Host of the Price of Business, the longest running show on CNN 650 (M-F at 11 am), AOL Radio, and CBS Radio. Eric Bolling of Fox News and Fox Business says that Price’s Blog “is very influential and moves the blogosphere.” Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com. You can also find Price on Strategy Room at FoxNews.com.

Companies that may Point to Recovery

There is no question that we are now in a recession and it is a severe one at that. Now the thing people will look for are indicators that the economy is improving. Some companies might provide the signs of when the economy is finally heading in the right direction (according to 247WallSt.com).

Target. The giant retailer is known as one who caters to people who are seeking a little more than what they can get from Walmart. That "little more" includes slightly higher prices (if, for no other reason than the fact that Target cannot buy at the volume of Walmart) and that has led to some economic slowdown for the store. So far Target sales has seen a noted drop this year. When Target begins to see an increase in sales, you might also see a turn around in the economy.

Starbucks. At the height of rapid economic growth, Starbucks was an economic pleasure palace for the happy middle class. However, with declining prosperity, people are bailing out on the coffee shop and many have remorse for the dollars they spent on a small cup of coffee. Part of the problem is plain out saturation. Even after closing hundreds of stores in 2008, I personally know an area in the very affluent Galleria section of Houston that has at least 4 locations in less than a square mile area. When these come back, the economy will be on the mend as well. You will likely see that after a turn around at Target.


CBS. It is now the only major broadcast TV network that largely has all its eggs in one basket (TV). Its competitors -- Fox (which owns radio, print, web platforms, and TV), ABC (Disney World and other entertainment venues), and NBC (whose parent company is GE, which seems to own everything) are far more diversified. The Stock Market has punished CBS' lack of diversification as its shares have dropped. When those shares rise, so will the economy's prospects because this form of broad base advertising is expensive and it will show businesses are believers in the prospects of growth. This too will come a little later in the recovery process, in my opinion.

Dell. The Dell Computer company, which was once considered a leader in its industry, is now considered one of the weakest. In spite of its efforts towards innovation and customization, it still finds itself limping behind. When Dell has a turn around, the economy as a whole will be enjoying serious recovery. Mind you though, Dell was struggling when the economy was fairly strong, so it too may take a while to catch up.

E*Trade. The weakest of the big three online trade companies has been among the longest to suffer. This company, too, is an indicator of how the economy is fairing.

With the current policies of the Obama Administration, it will be surprising to see these (or other businesses) improve. However, when their is a turn around, these five companies will be among those to watch.

Kevin Price is Host of the Price of Business, the longest running show on CNN 650 (M-F at 11 am), AOL Radio, and CBS Radio. Eric Bolling of Fox News and Fox Business says that Price’s Blog “is very influential and moves the blogosphere.” Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com.

What we can Learn About Business From Forrest Gump

One of my favorite films is Forrest Gump. It is full of great values on family, friends, morality, and life. Although its principal character is fairly cut and dry in terms of his integrity, this movie is not a simple fairy tale. It is a strong statement on how the choices people make matter.

During the film, Gump promises to go into the shrimp business with his good friend Pvt. Benjamin Buford “Bubba” Blue. Unfortunately, Blue died in the war, but Gump was a man of his word and he decided to go full speed ahead in making a company in his buddy’s name as soon as he got the money. In a turn of events that only Forrest could enjoy, Gump found himself in business and out on a boat trying to make a living catching shrimp. Unfortunately, Gump was late to coming to this market and found he was struggling to make ends meet. All the old timers knew the best place to find shrimp and poor Forrest was out cold. He didn’t give up, however, and through determination and prayer he found himself prepared for the opportunity of a lifetime.

However, it didn’t look like the opportunity of a lifetime when it came upon him. Instead, it looked like the end. A massive storm hit his port city and the vast majority of the competition hid from it and put their boats on the shore. They had a “bunker” mentality and a “buckling down” attitude and the result was the destruction of virtually all the ships. This was not the case for Forrest Gump who stayed on the boat and on the water; his aggressive attitude made him one of the only survivors of the storm.

Today, more people are interested in marketing than any point I have ever seen. The era of low hanging fruit is over and people know they have to go after potential clients. The question is how to do it. I have friends telling me about phenomenal marketing opportunities and can’t make a decision. They are simply stuck. What is preventing these people from making a decision? The biggest reservation is time commitment. They understand that virtually all marketing has a ramp up period before it reaches its effectiveness, but don’t know about committing for six months or more. My question is, “what do you plan on doing in six months?”

Those who do nothing will find themselves like those poor souls that were competitors of Forrest Gump. Their customers will disappear in this stormy economy while those who are aggressive will prosper. Unless you honestly plan on doing something else for a living a year from now, consider your marketing as a long term prospect and not a short term action. This economy will go to the brave and the bold, not to the faint of heart.

This article originally appeared at CNN650.com, part of the CBS Radio Network.

Kevin Price is Host of the Price of Business, the longest running show on CNN 650 (M-F at 11 am). Eric Bolling of Fox News and Fox Business and says that Price’s Blog “is very influential and moves the blogosphere.” Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com.

Ominous Signs for Gift Card Tuesday

We all know about Black Friday -- the day after Thanksgiving where people finally buy enough to put businesses in "the black." In recent years we have had Cyber Monday (the Monday following Thanksgiving in which people make most of their holiday online purchases) and I have been talking about Gift Card Tuesday both on the radio and online.

On the first Tuesday of February 2009, retailers will announce how much they made from gift cards sold in November of this year. Companies don't know based on the cards sold, ironically, but from the purchases that comes from the cards. Gift Card Tuesday will not be very pretty this time I am afraid.

This is due to several reasons. The first reason is obvious -- spending has reached a new low for consumers on this holiday season. People are extremely fearful about their finances and are reducing costs at every opportunity.

A second reason is closely associated with the first and that is the concern about the large number of retail businesses that are going under. There is sense that many more will go under right after Christmas and people will be stuck with cards that have little to no value. What could keep these companies in business -- an influx of new customers buying cards -- may not happen because consumers believe these business may become history. One of those interesting paradoxes of business. Because of this paradox, many more businesses may join the ranks of Circuit City (see video above) that are now out of business.

With the many other more urgent and pressing headlines, we haven't seen much about the economic impact of gift cards lately. I am sure we will in February.

Kevin Price is a syndicated columnist whose articles frequently appear at ChicagoSunTimes.com, Reuters.com, USAToday.com, and other national media. Kevin Price is Host of the Price of Business (M-F at 11 AM on CNN 650) and Publisher of the Houston Business Review. Hear the show live and online at PriceofBusiness.com. Visit the archive of past shows here.

Perceptions About the Economy: What are People Thinking?

This weekend I watched my favorite groups of business news programs on Fox News on Saturday. During the program I was astonished to hear that a recent poll showed that six out of ten Americans believe we are worse off now economically than we were five years ago.

Five years ago? Are we talking about the summer of 2002? Give me a break. At that time:

* We were still recovering from the effects of September 11th as people were emotionally and economically devastated.

* The Federal Reserve were still cutting interest rates in order to spur confidence in the economy.

* Headlines in publications said things like "Terrorist Attacks, Interest-Rate Cuts, Recession Set Stage for Interesting 2007."

* Unemployment rates were roughly an entire percent point higher than it is today (4.8 percent today versus 5.7 in 2002, approximately 16 percent higher than today).

So why does such a negative view of the economy exists? Because the media makes a living off of bad news, which is a phenomenon I have discussed here, here, and else where. With all of the criticisms people can have for George Bush, a weak economy isn't one of them. But that won't matter when the elections come in 2008, because voters won't be told about the real economy that exists.

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.