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Tales from the Socialism Side – Part 2 – Sharing toys

This is a continuation from my last post about the real issue of Socialism and what that means.

Here is another story from my years in Europe. I was working in Vienna with a man who had been visiting churches in Eastern Europe (then communist) countries since the days of Stalin. He had a story he often told:

A man came up to me in Berlin who had just gotten out of East Germany, having escaped like many East Germans did. I was preaching in a church there and he wanted to make a comment. “Do you know what the difference is between Communism and Christianity?’ he asked? “No,” I answered. “Communism says – What’s yours is mine – Christianity says – What’s mine is yours.’”

I have often thought of that simple, profound statement, when sorting out any sort of Socialist agenda in government. It is a root issue, when you think about it.  It is all about control. It is also all about boundaries, who owns what, and who has rights to what.

The Socialists (and the Communists as well) often launch their campaigns with high ideals. “It is all about sharing!” They will say. “The goal is that those who have share with those who do not have!”

Noble words.

I am all for sharing. Christ Himself told us to give what we have to those who do not have and to take care of the poor. I have never seen more generous and effective people than those who believe and follow those words with their hearts.

But with Socialism, it is about more than that. It is about who makes the decision that I will share. Is it I that make the decision that I will share and how much I will share; or is it the state that decides I will share and how much?

That is the root issue.

Yesterday in North Carolina Barak Obama made a speech in which he said:

“He’s called me a socialist for wanting to roll back the Bush tax cuts for the wealthiest Americans so we can finally give tax relief to the middle class. I don’t know what’s next,” Obama said at a rally at the Halifax mall here.

“By the end of the week, he’ll be accusing me of being a secret communist because I shared my toys in kindergarten. I shared my peanut butter and jelly sandwich.”

Obama misses the point. When he was a kid HE decided to share his peanut butter sandwiches and his toys. That is noble. That is generous. But what if the school had MANDATED that he share his food and his toys? That would be different. That would be Socialism.

What if Obama had said, ‘When I was a kid, I shared Joe the Plumber’s peanut butter sandwiches and toys with the other kids in school?’ That is VASTLY  DIFFERENT.

Think about it.

On a side note, I promised yesterday to sare a great joke the Russians used to tell about Socialism and Capitalism. I’ll move that on to tomorrow. The Obama quote came up first and I couldn’t pass it up.

Stay tuned.

Tales from the Socialism side – Part 1

Since the political campaign season has finally gotten down to some real issues approaching underlying philosophies of candidates (and parties), the time has come for me to speak out on Socialism. There is a good chance our government and society might take an abrupt turn to the left in the next couple of years and we need to get ready.

Having spent a number of years living abroad and traveling in Communist and Socialist countries, I have seen a lot and heard a lot from those who already tried ‘the experiment’.

There is no better answer in a debate than real experience, is there?

You might argue that no one in this campaign has really come out and claimed to push socialist philosophy, but any student of history or philosophy will readily admit that one side is more prone, shall we say, to socialist leanings than the other. That this might be called ‘progressive socialism’ or socialism ‘light’ is not the issue. The real issue underpinning it is the underlying philosophy that leads to a socialist understanding of government, business, and cultural life.

Add to that the huge risk we just took as a nation by nationalizing a good part of our business infrastructure and the risk is suddenly enormous. It must be handled exactly right, or our children will inherit a government with huge control over business and economic life – hence – Socialism.

There is a lot to say here and this is just the first installment. Call it part 1.

One of my favorite succinct quotes is from Viktor Belenko (Виктор Иванович Беленко), the famous MIG pilot who piloted the Soviet MIG 25 from Siberia to Japan in a bold  (and successful) attempt to give the west an intimate look at the new super-fighter the Soviets had produced to challenge our air superiority at the height of the cold war (1976).

Belenko, like all top level Russian military at the time, had been raised and cultivated with the ideals of the “New Soviet Man,” nurtured in the values of state socialism and impressed with the rigorous studies of Dialectical Materialism, Hegelianism, and numerous other social and historical philosophies clung to by traditional communists and socialists (and most philosophical leftists of our day as well).

The conclusion it all drove him to, however, was that it simply DID NOT WORK.  Something was missing. In the process he decided to flee to the West and take a plane with him.

Enough on the background – here is THE QUOTE: – I love this one -

Belenko met President Ronald Reagan and told him :

“You should start an exchange program where you send 1 million American High School students to the Soviet Union for a year in exchange for 1 million Soviet High School students coming to the US for a year.  The Russian students will return to the Soviet Union incredibly impressed with the country, which will be a good thing. The 1 million American kids will return home as Republicans.”

(I could not find this online but I remember reading it in Guidepost magazine around 2001)

More coming tomorrow – stay tuned. Listen to one of the greatest jokes the Russians used to tell about the Capitalist system and the Socialist system – and so true!!

Run on the Bank

I love this clip in Its a Wonderful Life where Jimmy Stewart talks to people panicking during a run on the bank. The people did not realize what their money was doing – that it is was invested in other families, other people’s homes and businesses, etc. He was able to calm them down and ends the day with a liquidity of $2.00 which is enough to keep his bank open. From there it grows to small town prosperity.

Our money does a lot more than just comfort us. It is the seed for things around us to grow. Something to think about in these times.

The economy is us

Since this blog is about entrepreneurs, small business and the media – regular people, most of us – I want to write about the economy.  As I write, the debate is going on in the Senate over the $700 billion bailout. Even if it passes there, there is uncertainty that it will pass in the House next time around. Everyone knows that even if it passes, we are in for a long hard slog to re-establish our economy on a real foundation.

People are worried. Why throw money to soak up bad debts banks have, when people are facing potential debt or mortgage payments problems of their own, especially if jobs drop and interest rates rise – as seems sure to happen no matter what congress does.  Even if banks are kept solvent, who is to assure that they will still help out the small businessperson?

I have a little experience and a general philosophy here.  I started my business with family help in 1988, buying a store. The recession of 89-92 hit right after I moved the store to a new shopping center and quadrupled my rent and overhead. It was tough.  But there were good things about it. Businesses had to be smart to survive. You had to take better care of your customers. You had to forge relationships with them. It could not be a semi-anonymous thing just centered around goods and money.  People got a little more serious about life in the hard times. It was not all bad.

Here is a little thinking on banking. My experience in business was with a small business and a locally-owned bank. When I went to get my business loan to buy my business I spoke with the banker for a long time. He explained that his was the last locally-owned bank in Knoxville, Tennessee. He explained the difference between a locally-owned bank and a larger chain bank. Local banks take local money and primarily invest it in the local economy, in giving loans to businesses like mine. There is accountability there. There is a relationship. We are business partners. I would often go over to the bank and just talk, get help, advice and wisdom; not just deal with money. There is a lot more to running a business (and life itself) than just money.

Larger banks tended, he said, to take the local money and invest it in broader, often removed, markets. They would invest Knoxvillians’ money more in the various funds and national or international banking schemes out there. They might make a great profit, but it was not as much by supporting the people where we lived and whom we knew personally and providing them capital to follow their dreams.

I was tremendously struck with the fundamental difference. I had never before realized that every dollar I invested in a bank, even in my own savings or checking account, could either be earmarked to support a vague fund with who-knows-what control over it in who-knows-which place; or it could be put in the hands of my local banker who could be freer to lend it to my neighbor who ran a hair salon in my own shopping center. Or, for that matter, my business.When you boil it down that way, it is very simple.

I became a huge fan of investing locally, and investing in a relationship that provided wisdom, commitment to me and my neighbors as well as liquidity.

Perhaps it it time for the the entire nation – or even the world – to get the grandiose banking schemes out of their heads and return to investing in -and being accountable to – people they can sit down and talk with. Then we can all learn more – about money – and about life.

A new slogan: It’s about the fact that the economy is us – ‘stupid

More on Newspapers, The Media and Monopoly

This Google “Monopoly” claim the traditional media is throwing out there simply will not leave me alone.  Here’s a starter:

Newspaper Group Slams Google-Yahoo Ad Deal

Besides the “pot calling the kettle black” aspect of it all, the worst part is that the local newspapers (they are the ones getting hurt the most by Google AdWords) are screaming bloody murder because the Google ads WORK so well for the small businessperson.  There is a lot of jealousy there because the vaunted classified ads from newspapers’ heyday no longer work for the small businessperson as they once did. Not to mention that the local newspaper used to be the monopoly in that area (see my previous post).

Bear this in mind, though newspapers stopped pulling a decade ago as they once had for many businesses and the readership demographic got older and older, the price never stopped going up!

Many – most – small businesses (I was a retailer in those days) simply stopped paying it and left the papers. Why?

It did not work.

Small businesspeople have to eat. They have to pay employees who have to eat. It HAS to work. That is business. That is life.

Now read with me this statement that galled me so much this week from the article above:

The deal could adversely impact the economy and the newspaper business in at least three ways, according to O’Reilly. Less competition in the online advertising space means less revenue, according to WAN. “The proposed deal will fatally weaken Yahoo as a competitor for these deals,” according to a WAN communique on the issue. “Advertisers will increasingly migrate to Google since they will see diminishing price advantages to advertising through Yahoo. Yahoo will then have fewer of its own ads to serve and therefore less ability to offer a better deal than Google.”

This decreased revenue will then lead to increased costs, WAN said. The majority of traffic to news Web sites comes from paid and natural search through search engines….

All this will lead to a greater dependence on Google, WAN said. “By handing Google control of up to 90 percent of paid search and content advertising, Google will exert tremendous power over both newspapers’ ability to reach readers and their ability to generate online advertising revenue,” the group said.

Did I read that right?

The reason that the Google-Yahoo deal is bad is that it will decrease the competition for Google so that Google can then raise advertising prices for advertisers (read-small businesses) – (or raise the paid search costs to the newspapers themselves, which increasingly have to resort to Google paid ads to get people to their own sites ? They don’t even know how to optimize to get the free, organic search traffic when they have thousands of pages of content and should be pulling them in in droves – for free!

- Don’t get me started.

That sounds like a blatant admission by newspapers that they have lost the ability to get an audience by themselves. Add that to the fact that they cannot deliver the proper demographic readership to small business advertisers and they are complaining because Google (and increasingly Google-Yahoo) CAN?

Did you catch that line? “Google will exert tremendous power over both newspapers’ ability to reach readers and their ability to generate online advertising revenue.”

It is called competition. It is not about newspapers’ “revenue.” It is about small businesses living or dying.

Radical concept.

I thought the idea was to invent a better mousetrap? Did I hear it wrong or was the saying that the world would then beat a path to your door?

Sounds like the newspapers are wasting their time trying to barricade the path.

Oh, by the way, neither Google nor Yahoo “set” the prices for paid search. It is an auction. The market bidding sets the price.  And that same market that invented the Googles and the Yahoos, if it gets too expensive or the ads stop working, can invent other solutions! The Internet makes it pretty easy.

That is what hurts the newspapers the most. Everyone has a press now.

Come to think of it that same marketplace also invented newspapers, once upon a time.

I really do love newspapers.    See my other posts.

But it is high time for the marketplace to reinvent them.

Search and Social Networking – more marketplace power for those who understand how to use them.

Search. (Drum roll).

Social Networking. (Louder drum roll)

Everyone knows by now that Search – especially Google AdWords – is taking over billions of advertising dollars and delivering fairly recession-proof results to millions of small businesses.

Steve Rubel on Micropersuasion.com makes the startling point that not only is Search rocketing in dollars spent but Social networking will soon be doing that as well (we have been asking how?).

Here’s how – because Social Networking will soon be combining the power of search with the astounding popularity of connecting with other people on the social networks. Once that happens – once the database of intentions is mixed in the ‘search’ activity with the desire of the masses to connect – advertisers will have the scent and can deliver their ads on target!

Look out, traditional media, one more time!

I well remember the days when people were pooh-pooing search engines. “Yea, they do some neat stuff but they will never make any money…” How many times we heard it.

You don’t hear it any more. Instead, what you hear now is “Social networking is popular but it will never make any money…”

Only the critics don’t say it as loudly as they did… maybe they learned something.

Read Steve on this one – worth reading.  How Search Will Revolutionize Social Networking.

http://www.micropersuasion.com/2008/09/how-search-will.html

Google and Monopoly?

Interesting headlines lately about the words Google and monopoly – from the media – of all people!

I was somewhat associated with the newspaper business for a while and realized from the inside that many of the problems newspapers face come from the fact that they haven’t adjusted well to losing their ‘monopoly’ in the local marketplace.

This is especially true with small business advertising and classified ads.  They had the monopoly because they were the only ones who could deliver consistently in that marketplace for a long time. They had it for decades!

Now it is gone. Local businesses have so many other ways to play in the marketplace – and win!

Suddenly everyone is so concerned that Google is going to get a monopoly like that. Why? because Google can deliver.

For those same small businesses.

But so can many others on the Internet. Everyone owns a press now. As strong a player as Google is, it is still a MUCH more level playing field out there than it was for years – or has ever been.

Read this from the Buzzmachine, a blog by Jeff Jarvis.:

Except the issue isn’t that Google is a monopoly. It’s that Google has become the marketplace. It where we all go for information. It’s where advertisers go for us.

It’s no different from a newspaper. Even when there were two papers in towns, one of them was the marketplace for homes, cars and jobs. That allowed the paper to set rates as high as the market could bear, which was very high…  read more

Lately I’ve been reading Jeff.  He is a true media expert, having worked with and even started some of the most significant media channels in recent times (such as Entertainment Weekly).  He is a very interesting writer and he knows what he is talking about.

Search Marketing

Search marketing – that amazing ability that the Internet brings to us to allow the smallest entrepreneur, advocate or person selling anything, to be found, continues its powerful advance in our society. 

I am very glad.

I wrote already about John Battelle’s book “The Search” and his use of the phrase “database of intentions” to describe what Google and other search engines both offer and garner.” That phrase keeps working on me as I think about what is happening in the marketplace today.

We are able to now match ‘intentions’ with amazing acuracy, across the country, across the world, and across town.

Think about it: I ‘intend’ to sell my car. I know its strengths and weaknesses. I also know its value. Someone else ‘intends’ to buy a car, with a value in mind similar to that of my car. They also ‘intend’ to get a car with similar strengths as mine offers. If I am honest and transparent in my post, I also communicate its weaknesses and the person on the other end decides if they are sufficient to thwart the other matchup of ‘intentions.’  A deal is made and sealed. It may well have cost me little or nothing. The buyer had access to an amazing array of information, both from me and thousands of others.

There was a lot of help in matching up the ‘intentions,’ thanks to the incredible power of the “Databases of intentions,” the search companies.

Compare that to traditional small marketing. I want to sell my car. About my only choice to do so myself previously was to buy a limited space small classified ad in a newspaper or shopper. I cannot describe much due to the cost of the space. The available people to buy, those with possibly-matching ‘intentions’, are far fewer. They have to scan hundreds of used car ads to find out if there is a possible match. It was a much different, and poorer, marketplace.

Multiply this effect by tens of thousands of industries, hundreds of millions of people and many  billions of dollars. You get an idea of what the power of “SEARCH” and the matching of intentions has and will have in our business world.

And as the databases get better – the people learn to use them more efficiently, both buyers and sellers – our economy is becoming a much more efficient fullfiller of intentions.

It is happening at lighting speed.

 

Life and Business

Nothing like saying you are going to write again and then staying mum for two weeks.

I guess that is the world of blogging. The amazing thing is that people keep coming back to read – according to my stats and my user- location finder (yes I can sort of see where you are! scary, eh?)      :-)

[ It is a fun guessing game to guess who might be reading, and hard to resist. Sort of like putting the ear to the train tracks to listen for ringing in the rails, though. Can't stay there too long and one might not really want to know what is coming!]

So easy to divert. But back to my theme – business and life.

I think about it every day. Starting a new job – at Nutramax Laboratories as Internet Marketing Manager – helps keep the thoughts fresh as well. (It is also much of the reason I have not had time to write – a lot of new stuff to learn).  But it is amazing, no matter how large or small a business is – it still boils down to one thing: It is about people. And life.

Well – let me amend that. It is also about animals – as I am learning at Nutramax. Many of our products are for pets, horses and other wonderful living beings. Let’s just say “Life.”  Business really is about life. 

As we continue to explore the new marketing possibilities of the Internet, mobile, digital communications and whatever else is out there on the horizon, I can’t get away from the fact that the most fascinating part of it all is the way people (and pets) are connecting with each other – across continents. It is absolutely fascinating. I guess that is what always drew me to the Internet, from the beginning, because I am a people person. I had pen-pals in Europe when I was in 5th grade (yes back when people actually wrote with a pen and sent letters).

But now it is not just about meeting people and talking to people all over the globe; it is actually possible to make money doing it! Businesses are discovering that as never before. In fact, it seems that just during the  year, a great number of business people I have talked to have come to the realization that this is not a sideline thing any more, but will soon be the predominant way most companies do business. 

And to some the realization is also dawning that there are new rules and new paradigms involved in what that business looks like. As I have pointed out in precious posts – that more closely resembles a middle-eastern bazaar than it does a crisp bank lobby. People all over the place, laughing, shouting, crying, yelling and many just watching. That about sums up the Internet marketplace. It also sums up “Life.”

Can that be so bad? To do business in a totally, technologically-new way that is really much like an old-fashioned way that goes back to the dawn of history?

Dunno.

But I love it.

Of course, I have a penchant for drama.

 

 

To write again

It is time to start writing again. 

The posts have been scattered and a little shot-gunny,  aiming all over the place – but I’d like to focus now back on where I started this series – dealing with Business and Life.  I’d especially like to get back to the theme of the entrepreneur – the smaller business, and the changes going on in our culture about how people interact and conduct business.

There are a lot of unfinished posts to finish up like the page about my background , the “take on what is going on‘ and others.  There is also a lot more to explore concerning the place of search, collaboration and networking online with regard to the entrepreneurial and open business spirit we promote.

But above all I would like to write again, and often, about the sense of freedom that comes when people follow their dreams, produce good stuff and offer it to a needy world, however cynical and jaded that world may be. To me that is what life is all about.

I am reminded of what a poor farmer with a large family once said, in the heartland of America. When asked a question by a self-important and slightly disrespectful questioner “Well, what do you GROW on that farm?” he spoke the stunning answer – “We grow people, son.” 

This makes a lot of sense to a kid like me who grew up reading stories of Abe LIncoln learning to read, write and think by the shallow light of a candle. I could always imagine him poring over  The Bible, Shakespeare and Blackstone’s Law again and again in a prairie lean-to and later in a small barely-surviving country store.

As one who travels several times a week through a city filled with marble monuments and symbols of hope and vision, many of them decorated with the inspiring words penned by that same country boy who later became president, I can think of nothing better to do in life than to “grow people.”

And it is not an easy thing to do.

But behind all the talk here about communications, entrepreneurship, new media and new opportunities - that is the heart of this blog.