Archive for February 12th, 2009

The real Obama …

February 12, 2009

During the campaign, anti-Obama legions cautioned that candidate Obama was an inexperienced, rhetorically muscled purveyor of political bromides with no record of performance or provable sustained beliefs.  Even the notorious Rev. Wright warned that “Barack’s a politician and politicians say and do things to get elected.”

Understandably, many voters were frustrated by President Bush’s well-recognized performance and personality shortfalls, unswayed by John McCain’s erratic campaigning and unnerved with his controversial “long balls” (think Palin and “suspending the campaign”), and vulnerable to Obama’s messianic symbolism, historical breakthrough, and his “cooler than cool” promise of hope and change.

Swing voter’s bought in.  Even though hard evidence was sorely lacking, they concluded that maybe, just maybe, Obama was the real deal and that he would  usher in a new era of cooperation, high sprits, and progress.

The first 20 days of the Obama administration — arguably 20 “dog days” given the economic challenges and the fast-paced, high-pressure  legislative turmoil — have provided the answers to questions regarding Obama’s character, positions and executive style.  The real Barack Obama has revealed himself — for better and for worse.

First, President Obama has stayed true to his stated support for abortion rights, terrorist rights, unions, and community organizations.  And, he has been consistent in his suspicion and disdain for businesses and the people who run them.  Nobody should be surprised by any executive orders and bully pulpit proclamations on those topics.  On those counts, the voting majority got what they should have expected, and apparently, what they wanted.

But, there have been serious — and much forewarned — contradictions revealed, too.

The spirit of post-partisan cooperation was initially showcased in jaunts to “the Hill” and one-on-one meetings with weak-kneed Republicans at the White House, but quickly replaced by “We won. We trump.”

The promise of “line by line scrubbing of waste in the budget” was immediately discarded for “about the right size and scope” and “no time to wait for perfection”.

The “no special interests” promise was modified to allow unions and machine politicos to get seats at the table.

The “new faces, well-vetted outsiders” became a parade of recycled Clintonites, and tax-dodgers.

Obama’s discipline, “Mr. Cool” demeanor, and rhetorical splendor quickly denigrated to an amateurish lack of legislative control, and un-presidential sarcasm and attack-dogging.

The politics of “hope and change” were shelved in favor of the politics of catastrophe-mongering and political monkey business as usual.

President Obama has dutifully heeded Rahm Emmanuel’s advice to “never let a good crisis go to waste.  While the legislative process has been sloppy, the President ended up getting what he wanted in his stimulus package.

Unfortunately, the expensive grab bag of pork and paybacks is unlikely to have any perceptible stimulative effect on the economy.  For the next year or two, we’ll be hearing that Bush’s failed policies left the economy in even worse shape than anyone imagined and we’ll get bombarded with TARP-like claims that things would have been even worse without the added spending.  Jobs will continue to evaporate, but at a slower rate than some made up “what if” number.

The President has deftly managed to move his social agenda forward at warp speed.  His refundable tax credits are now in place, and a voting majority of Americans will pay no income taxes.  Healthcare is officially on the track to nationalization, Alternative energy gets a boost with government rules and spending.

In November, the majority of Americans were willing to bet on the come for hope and change.  Now, President Obama keeps reminding us that he won, so he — along with Pelosi and Reid — set the rules.  The rules are becoming clearer by the day.

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Stimulating the economy on a dollar per day …

February 12, 2009

Uh-oh.

Reid & Pelosi slashed Pres Obama’s pride and joy, the $500 refundable tax credit down to $400 per worker.

I used to make fun of the $500, pointing out that $1.37 per taxpayer per day wasn’t likely to jump start the economy

My hunch: odds are even lower at $1 per day … or, to be peresise, a buck and a dime per day.

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Pelosi and Reid also scratched the  GOP’s idea of a $15,000 tax credit on the purchase of a new home.  While I think it would have had a minimal impact, it was at least pay-as-you-go.  Credits could only be claimed when houses were purchased, and there was a cap on the amount.

Would have at least made Congress look like it was trying to address the housing problem.

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Uh-oh: Girl Scouts cut number of cookies in the box …

February 12, 2009

Excerpted from The Dallas Morning News, “Rising costs bite into Girl Scout Cookie portions” , Dan X. McGraw, January 22, 2009

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If you seem to be tearing through those Girl Scout Thin Mints a little faster this year, you aren’t imagining things.

Fewer cookies were packaged into Thin Mints, Do-si-dos and Tagalongs boxes this year, and the Lemon Chalet Crème cookies were resized to compensate for the rising cost of baking staples. No changes were made to other cookies, according to the Girl Scouts of the USA.

Alternatives to the changes were to raise cookie prices or use cheaper ingredients – two options that were rejected, said Natalie Martin, marketing director for the Girl Scouts of Northeast Texas.

A box of cookies costs $3.50.

“We aren’t talking about a drastic change. We are just talking about a couple cookies,” Martin said, adding that the boxes shrunk by only a centimeter. “People understand that we are all taking hits.”

The Girls Scouts certainly aren’t the first organization to alter product size and portions because of higher food costs.

Products on grocery-store shelves throughout the nation have been reshaped, resized and repackaged in response to new marketing ideas, jumps in food and gas prices and the economic downturn,

“It is a reflection of them needing to keep the price in line with other products, but they also need to keep in mind the rising baking cost. You’ve got to balance it the best way you can.”

The Girl Scouts faced spikes in ingredient costs from 2007. Flour rose in cost by more than 30 percent, various cooking oils by 40 percent to 187 percent, and cocoa by at least 20 percent.

A Girl Scout mom, says the changes haven’t stopped people from ordering.

Edit by NRV

Full article:
http://www.dallasnews.com/sharedcontent/dws/fea/taste/stories/012309dnmetgirlscoutcookies.1c01e735.html

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Feeling special is one thing … really special is another

February 12, 2009

Excerpted from the Journal of Consumer Research, “Feeling Superior: The Impact of Loyalty Program Structure on Consumers’ Perceptions of Status.” by Xavier Drèze and Joseph C. Nunes, April 2009.

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How special does that gold card offered by a hotel or airline make you feel? A new study explores the connection between status and loyalty. Many businesses create loyalty programs to confer a sense of status to their customers. Examples are platinum, gold, and silver charge cards, or red and blue membership levels. The study provides insight for planning programs that enhance consumers’ perception of status.

The authors studied the limits of customer loyalty, testing how far an organization can go in adding status levels to a loyalty program before customers feel they are not so special anymore.The authors tested a variety of options for expanding loyalty programs. They added tiers and people to customer loyalty programs in varying combinations to determine how people would feel if an organization added people to a top-tier program. They asked respondents how they felt when they added more tiers on top of them (platinum on top of gold), or added more tiers below them.

“We find that increasing the number of elites in the top tier dilutes their perception of status, but adding a subordinate elite tier enhances their perceptions of status.”

“Thus, if the firm creates a larger top tier while adding a second status tier rather than persisting with a single small top tier, it can recognize more customers without decreasing the perceptions of status among its most elite.”

In other words, being in the gold level is more special if there is a silver level below.

“A possible drawback a firm always confronts when providing preferential treatment to an elite few is whether it might disenfranchise the masses. Our study shows this concern to be unfounded. We find that given the choice between alternative firms, respondents favor companies that offer elite programs even when it is clear they would not qualify for the lowest elite tiers.”

“In other words, those at the bottom of the pyramid do not begrudge the success of those at the top.”

Edit by NRV

Full article:
http://www.xdreze.org/Publications/superior.html 

 

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