Instead of Solving Budget Crisis, Wash. Politicians Threaten Integrity of Election Day
Updated Jan. 16, 2012
Washington state has a $1.5 billion deficit, and ample justification for implementing government and budgeting reforms.
But nearly two dozen lawmakers have something more important to do. They’re gaming the voter registration system in a disingenuous effort to win elections.
That’s right. They’re not addressing the concerns of most businesspeople and consumers – a balanced budget and government reforms.
But more on that later; for now, let’s address some background information in two examples:
Example No. 1. Perhaps you saw the May 30, 2011 headline: “Voter registration could be key to Obama in 2012.” The article indicated Barack Obama’s 2008 election hinged on his ability to capitalize on the nearly 15 million voters who were newly registered.
However, the article also mentioned that Democrats are looking at a major red flag – their party has regressed in terms of voter registrations in states won by Mr. Obama. Many Independents now disfavor Mr. Obama’s re-election. The upshot being he needs to attract more black, college students, Hispanic and women voters.
He has problems in at least three states:
- Florida – 2.6 million voters haven’t declared their party affiliation
- Pennsylvania – 500,000 unaffiliated voters
- Iowa – at least 762,000 nonpartisan voters
The article indicated several cities are in play:
- Philadelphia
- Denver (site of the 2008 Democratic convention)
- Charlotte, North Carolina (site of the 2012 Democratic convention)
And the newspaper report quoted Mr. Obama’s adviser, David Axelrod, who said voter registrations are a big priority for the 2012 election.
Example No. 2. Democrats are also worried about the Washington’s gubernatorial race. First the time in recent memory, Washington state Republicans have a solid chance to elect a governor.
Since last September, State Attorney General Rob McKenna has a six point lead in four polls pitting him against U.S. Rep. Jay Inslee. The polls include two by SurveyUSA, The Washington Poll, and Strategies 360 (D).
As of this writing, Mr. McKenna has netted $3.67 million in donations – $560,000 or 18 percent more than Mr. Inslee.
Disingenuous lawmakers
Fear by Democrats in a spirited competition to win elections is one thing, but it’s another to behave against the best interests of the electorate. A new development has failed to be adequately covered by the news media.
Twenty-three Washington House Democrats have introduced HB 2204, which would require the state’s 60 counties to accept voter registrations on Election Day after the polling is well underway – until 5 p.m. to be exact.
“What?!” you’re probably stunned. “Don’t voters have to register eight days before an election – not on Election Day?!”
Yes, you’re right.
Such a new law would have several ramifications.
It means the right to vote is no longer sacred. It games the voter registration system. It opens the door for voter fraud. It leaves no time to check the registration of new voters’ eligibility. It overburdens county election workers when they’re already straining to count votes.
Indeed, citing such concerns, the County Auditors Association and the Secretary of State oppose the bill.
Further, there’s a recent precedent to consider: Election Day registrations had 33.7 percent error rate in the April 5, 2011 election held in Milwaukee County, Wisconsin.
It isn’t too much to ask legislators to earn their pay. Stop trying to game the voter registration system. Fix the budget and institute permanent safeguards for good government and balanced budgets.
Then, it will be possible for Washington to have a healthy climate for economic development and the creation of jobs.
From the Coach’s Corner, in case you’re not aware, state lawmakers have long failed to do their jobs.
The most recent example is featured in this column: Washington: A Balanced Budget Is No Longer Enough.
“You may fool all the people some of the time, you can even fool some of the people all of the time, but you cannot fool all of the people all the time.”
-Abraham Lincoln
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Terry Corbell is a business-performance consultant and profit professional. Click here to see his management services (many are available online). For a complimentary chat about your business situation or to schedule Terry Corbell as a speaker, why don’t you contact him today?
Why the Sales Tax Debate Erupts in Washington State
Nov. 22, 2011
The buzz in Seattle and other Washington locales is over another attempt to raise taxes. Yes, Gov. Chris Gregoire wants to raise $500 million via a temporary half-cent increase in the state portion of the sales tax to offset continued budget deficits to prevent more state government cuts in spending.
Either the Legislature could pass the increase providing it passes with a two-thirds majority in an upcoming special session. If it can’t, the Legislature can pass a referendum bill by the end of this year for voter approval.
Gov. Gregoire’s request also threatens to risk relations with Oregon and neighbors by repealing their sales tax exemption when traveling and shopping in Washington state.
Washington’s sales tax debate request follows four developments:
- Failure by public officials to practice good stewardship of existing revenue.
- Lack of jobs – nearly a double-digit unemployment rate.
- Businesses are struggling.
- Washington’s two-thirds vote requirement for tax increases – demanded by voters in four referendums.
No. 1 – the sales tax increase request is not a surprise to watchdogs in the wake of years of overspending. For years, analysts have been warning about public policies, including in this space as long as two-and-a-half years ago when this portal was launched (Analysis: Steps for Economic Success in Washington State).
Part of the problem stems from furtive policymakers and the failure to answer the right questions: Why Not Transparency for Good, Open Government in Washington State?
No. 2 – 314,700 people are unemployed in Washington state out of the 3.5 million-person workforce. In October, 4,600 jobs were created in government, education, health services, manufacturing and wholesale trade.
No. 3 – With many of the new jobs in government and education, it underscores the point about the state’s business climate. The tech sector in Seattle is doing well. But ask any business owner or manager if their companies are better off now than they were in 2006 before the recession.
No. 4 – It seems unlikely the Legislature will be able to pass such an increase, but will authorized a vote of the people thanks to I-1053, which was passed last year after the Legislature circumvented the three previous voter-approved referendums (I-1053: Critical to Washington
State Businesses and Workers).
The Secretary of State’s timeline for the sales tax debate:
- Dec. 30 – Last day for Legislature to pass tax referendum bill for March 13 election
- February 10 – Military and overseas ballots mailed for March election
- February 21 – Mailing of voters’ pamphlets begins for March 13 election
- February 24 – Regular ballots mailed for March 13 election
- March 13 – Election Day
“There will be plenty of time to debate the merits of the Governor’s tax proposal but one thing isn’t open for debate, I-1053 is working exactly the way voters intended by providing them the opportunity to ultimately decide this important question,” writes Jason Mercier of the Washington Policy Center.
He offers this proviso:
“To help ensure this opportunity continues in the future, if lawmakers are going to send voters a proposed tax referendum they should also put a constitutional amendment enforcing the four-time voter approved two-thirds vote requirement for tax increases on the ballot,” he writes.
“This would provide the public and businesses with predictability about whether this tax protection will exist from year to year and clarify whether or not the four-time approval of the voters for this policy was a fluke or actually reflects their consistent and ongoing desire for lawmakers to build a strong public consensus on the need for any proposed tax increase,” he explains.
Agreed – tax increases would be unnecessary if the public officials worked to improve the business climate and performed to voter expectations. Tax increases are never temporary in Washington and the economic environment isn’t improving.
From the Coach’s Corner, Washington state has budget woes and high unemployment because legislators don’t ask the right questions, such as What Do Small Business Owners Need from Washington State Policymakers?
“Be thankful we’re not getting all the government we’re paying for.”
-Will Rogers
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Columnist Terry Corbell is also a business-performance consultant and profit professional. Click here to see his management services (many are available online). For a complimentary chat about your business situation or to schedule Terry Corbell as a speaker, why don’t you contact him today?
Is Economy Marginalizing Thanksgiving as a Holiday?
Nov. 21, 2011
As I work on my gratitude list this week, I’m mindful of a poll in a Seattle newspaper – and the reasons for the Thanksgiving holiday.
Grateful for their religious freedom, 53 pilgrims enjoyed the first Thanksgiving 391 years ago in Plymouth, Mass. They were survivors of the original 100 separatists from their arduous Atlantic Ocean journey aboard the Mayflower from Southampton, England.
Originally, their destination was Virginia, but they disembarked in Mass. It was a severe winter. But they survived with the help of Native Americans, who taught them valuable lessons – how to live off the land.
A year later in 1621, for three days, the pilgrims and Indians were able to celebrate their good fortune. Initially, it was a religious Thanksgiving.
Over the years Thanksgiving became an American tradition as an opportunity for gratitude – enjoying a plentiful meal with family and friends – all while giving thanks.
President Lincoln declared it a holiday in 1863 on the third Thursday of Nov. It was switched to the fourth Thursday in Nov. during the 1940s.
So with the exception of some professions such as journalism, airlines, first responders and healthcare, it’s been a holiday.
But in the quest for profits that’s changed. Initially, it was just workers in retailing have to work Thanksgiving to prepare for Black Friday. That’s the day retailers start earning green in the holiday shopping season.
It’s one thing to be altruistic to serve Americans who need prescriptions for their illnesses. But this year, the nation’s largest retailer, Walgreen, is open Thanksgiving for what it calls one-day-only deals to jumpstart its Q4 sales. For similar reasons, its competitor Rite Aid will be open, too.
There are indicators many people can’t take advantage of such sales.
Consider, a Seattle Times poll that tells a bleak story. It’s entitled, Vote: How is the job market for you?
At this writing, here are the responses:
- I recently found a job 7.59 percent
- Still looking 19.39 percent
- Recently lost my job 3.83 percent
- I have a job 45.59 percent
- Given up looking for now 11.42 percent
- Underemployed, part-time, low pay 12.18 percent
We’re turning into a nation of haves and have nots.
My sense is that many fortunate Americans are missing some other important signs – they’re reminiscent of the Great Depression:
- We seem to have forgotten about America’s Hoovervilles. In pointing a finger at President Hoover for his inability to prevent economic chaos, Hooverville was a term coined by Democrats to describe the shanty towns of unemployed Americans. Old newspapers that were used to keep unemployed people warm were referred to as Hoover blankets. Worn out shoes were lined with cardboard and called Hoover leather.
- In 1932, World War I veterans marched on the nation’s capital. Twenty-five percent of the nation’s budget had been swallowed by veteran benefits, but many veterans were destitute from unemployment. They demanded early payment for their benefit promised for 1945.
- Economic hardship exacerbated by a drought, forced thousands of Oklahomans to seek a better future – dignity, jobs and land – by migrating to California.
For poignant visual reminders, see this photo essay.
Fast forward to 2011 – the Occupy Wall Street movement. Why is it pervasive?
Some 100 million Americans are either in poverty or close to it, according to the U.S. Census Bureau. We’re not talking about new immigrants. We’re talking about nearly 33 percent of Americans – most have high school or college educations.
As the Seattle Times poll indicates, many can’t get a job or they’re under-employed. Many are baby boomers whose jobs disappeared in the new service economy. Others have suffered from deteriorating living standards and moribund wages.
It’s true many have not prepared for globalization and the digital age (Study: Unemployment Stems Partly from Deficient Worker Skills, Education).
But there are other reasons. Unlike the New Deal policies of Franklin Roosevelt, the federal government is a hindrance.
Only two headlines are needed as examples: Deficit Panel Folds Its Tent and House says no to mandating balanced federal budget .
The deficit panel is unable to compromise? The U.S. House of Representatives refuse to balance the budget?
Additionally, consider federal regulations. Cabbage, for example, is a commodity many will enjoy on Thanksgiving – however, the U.S. government bureaucracy uses 26,911 words to regulate it.
Compare the cabbage example with the Declaration of Independence: A mere 1,300 words.
Or how about the U.S. Constitution and its amendments: 7,818 words.
Consider, too, Healthcare Reform – New Red Flags for Business, Workers. Where are our core values including stewardship of our assets?
But the federal government won’t balance the budget. Politics – an infinite pursuit for power – stands in the way.
The divergence of the poor and affluent is a huge threat. It’s a menace to our nation’s core values as expressed in our Declaration of Independence – because we’re failing to honor a legacy.
The pilgrims of 1621 showed us the way. They didn’t let politics and poor public policy disillusion them. They found a way to exist harmoniously with their Native American neighbors, worked hard, practiced stewardship of their assets and reaped a bountiful harvest. That’s why they had reasons to celebrate for a Happy Thanksgiving.
When will we? At the least, if our issues aren’t solved, the pilgrims would be aghast.
From the Coach’s Corner, here are places to start:
Federal Reserve Typifies What’s Wrong with Economy
Biography: Will President Obama Listen to Steve Jobs on the Economy?
How CEOs, Taxes and Policymakers Fail the U.S.
“Dependence begets subservience and venality, suffocates the germ of virtue, and prepares fit tools for the designs of ambition.”
-Thomas Jefferson
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Columnist Terry Corbell is also a business-performance consultant and profit professional. Click here to see his management services (many are available online). For a complimentary chat about your business situation or to schedule Terry Corbell as a speaker, why don’t you contact him today?
Biography: Will President Obama Listen to Steve Jobs on the Economy?
Oct. 21, 2011
Toward the end of his life, Apple co-founder Steve Jobs – widely recognized as a genius – issued a warning to President Barack Obama.
“You’re headed for a one-term presidency,” he said. That’s one of the intriguing details in Mr. Jobs’ authorized biography. Messrs. Jobs and Obama met in a tense meeting for 45 minutes in 2010, according to ABC News.
Authored by Walter Isaacson after 40+ interviews, the Simon & Schuster book reveals Mr. Jobs’ wife, Laurene Powell, scheduled the meeting with the president. It was held at a San Francisco airport hotel.
About a conversation between the couple, the author writes:
President Obama was “really psyched to meet you” Ms. Powell informed her husband. The author indicates Mr. Jobs responded with anger – he felt the president should have personally asked for a meeting.
Mr. Jobs told the president that the U.S. needed to work for a warm, economic climate. Mr. Jobs explained why businesses build factories in China – fewer regulations and less costs.
Mr. Jobs had harsh words for education – ineffective teachers were protected by the unions and principals were shackled in trying to hire good teachers.
The book portrays the genius, not surprisingly, as creative. His other attributes: sensitive, intense, and he had a temper.
When the new Android software seemed to be a replica of Apple’s, Mr. Jobs characterized Google as having committed “grand theft.”
He told author Isaacson: “I’m willing to go thermonuclear war on this.”
Yes, he was competitive.
“Our lawsuit is saying, ‘Google, you f—ing ripped off the iPhone, wholesale ripped us off,” said Mr. Jobs according to the author. “I will spend my last dying breath if I need to, and I will spend every penny of Apple’s $40 billion in the bank, to right this wrong. I’m going to destroy Android, because it’s a stolen product.”
Millions of his iPhone4S were sold as customers paid tribute to Mr. Jobs in lining up to spend an aggregate $1.2 billion. Being much respected the outpouring of affection and sentiment upon his death was to be expected.
In the last decade, only one other businessperson received such adulation – Wendy’s founder Dave Thomas. His folksy demeanor and strong advocacy for adopting children sparked massive sentiment for him. Upon Mr. Thomas’ death, Wendy’s sales skyrocketed, too.
Mr. Jobs’ biography is well worth reading.
Mr. Jobs, you will be long remembered. Thank you.
From the Coach’s Corner, Mr. Jobs hit the target regarding the economy and the poor public policy:
Healthcare Reform – New Red Flags for Business, Workers
Is Higher Education Doing the Job to Prepare Grads for the Workforce?
President Obama Misses Mark Again, More of the Same
“A lot of people in our industry haven’t had very diverse experiences. So they don’t have enough dots to connect, and they end up with very linear solutions without a broad perspective on the problem. The broader one’s understanding of the human experience, the better design we will have.”
-Steve Jobs
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Columnist Terry Corbell is also a business-performance consultant and profit professional. Click here to see his management services (many are available online). For a complimentary chat about your business situation or to schedule Terry Corbell as a speaker, why don’t you contact him today?
No Lame Duck, Washington Official Enhances Economic Public Policy
Oct. 20, 2011
Like all inspiring great leaders, he and his staff are tenacious in delivering value for all of Washington. Who? State Auditor Brian Sonntag.
Mr. Sonntag is a favorite on this portal, a sagacious Democratic, who has consistently delivered value to state residents, and has always been available to answer questions. Admittedly, I was a bit melancholy about Mr. Sonntag’s announced retirement in 2012.
He has served constituents well, particularly, with his agency’s performance audits and initiatives in improving state-government performance.
And to the end, he continues to do what’s best for the state. He’s working to enhance entrepreneurship, which will help put the state on sound economic footing.
Another favorite entity is Washington Policy Center (WPC). The think tank also provides noteworthy analysis and timely updates.
A blog by Jason Mercier is how I learned Mr. Sonntag has been focusing on business regulations to enhance Washington’s economic environment for the creation of jobs.
Mr. Mercier cites a salient assessment of the state’s regulatory processes in the state auditor’s March 2011 report.
A few highlights:
- The complexity of Washington State’s regulatory system creates costs for governments and businesses alike. Not only are there many regulations, but many requirements change every year or two based on new legislation or state agency amendments to existing rules. The Office of the Code Reviser reports that in 2009 alone, state agencies proposed more than 14,000 pages of new or revised rules.
- Many regulatory costs to business are fixed, with larger firms able to spread those costs over a greater number of employees, meaning that small businesses bear a disproportionate part of the regulatory burden. A 2007 Department of Revenue study on the business survival rate in Washington found that ‘taxes and costs of complying with government regulations are factors that contribute to business failure because most small businesses are not profitable in the early years.’ (BSSUG, 2007)
This is a noteworthy conclusion:
- Improving the effectiveness of Washington’s regulatory regime through streamlining, clear rule writing, reducing the administrative burden, and other innovations will benefit businesses, state government and taxpayers in general. Clear, fair and efficient regulations will keep Washington competitive in the global economy.”
In his blog, Mr. Mercier indicates we can look forward to five Sonntag performance audits:
- Agency efforts to streamline their administrative rules
- Agency permit process time
- State regulations in excess of federal regulations and the value added for the extra regulation
- Agency inspection process and coordination amongst agency inspections
- Effectiveness and opportunities for improvement for the state’s one-stop portal for business regulations.
As a result of WPC’s September 2011, the Legislature is getting feedback from small business (What Do Small Business Owners Need from Washington State Policymakers?).
The state’s small businesses want the following:
- Review environmental regulations to ensure that Washington rules don’t exceed federal regulations
- Legislature should not grant general rule making authority to agencies, but rather be specific about rules to be put in place
- Legislature should listen to and follow up on State Auditor Office reports on regulatory reform (tie)
- Sunset provisions for regulations (tie)
So a Biz Coach tip of the hat to Mr. Sonntag and his team, as well as to WPC. It’s past time to evolve from an adversarial state government-business relationship to one of effective public policy for economic development.
From the Coach’s Corner, the Legislature should reconsider at least one other economic issue: How Washington Fails in Filmmaking for Economic Development. State government wants tax revenue but consistently has failed to be astute in seeing the problems and solutions.
Frustration is trying to find your glasses without your glasses.
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Columnist Terry Corbell is also a business-performance consultant and profit professional. Click here to see his management services (many are available online). For a complimentary chat about your business situation or to schedule Terry Corbell as a speaker, why don’t you contact him today?
Marketing Principles Needed in Wall Street Protests to Create Culture of Economic Patriotism
From New York to Seattle, people are wondering about the impact of the Wall Street protests. No one is asking, but if the protesters want to know how to win, they need to conduct a cohesive major-marketing campaign.
So, if you can humor me, let’s consider this a review of marketing best practices. Along the way, perhaps we’ll see an improvement in corporate ethics. My motivation, you ask? The nation needs a new culture – call it economic patriotism. I’ve been convinced that it’s partly an issue of How CEOs, Taxes and Policymakers Fail the U.S.
The corporate and Wall Street entitlement attitudes – certainly not everyone but a significant number – helped cause and exacerbate the Great Recession. The U.S. will continue to precariously suffer in its fiscal doldrums until economic patriotism becomes the norm, and productive public policies are implemented to improve the pecuniary environment for the creation of jobs.
It wasn’t just the questionable mortgage activities, but many banks and credit card companies behaved in a predatory fashion. Because they’re domiciled in about six states that allow high interest rates on credit cards and related lines of credit, banks were able to charge exorbitant interest rates on small businesses and consumers – as much as 38 percent for dubious reasons. And they abruptly cut off lines of credit for countless companies and micro-businesses. Consequently, many have poor credit ratings, and can’t qualify for Small Business Administration loans.
Among the hard-hit domestic automobile manufacturers, it’s worth noting Ford has been outstanding in its recovery approach. Consequently, Ford didn’t ask the taxpayers for help.
But the banks and the other auto companies had the temerity to lobby for bailouts, as countless Americans lost their jobs and homes. Foreclosures are still rampant, and the financial institutions are hoarding their cash following the bailouts.
GOP and Democrats
In part, the blame for the Great Recession also falls on Republicans in Congress. Don’t get me wrong. I haven’t changed my stripes. I’m still a strong business and free-enterprise advocate. But the Republicans looked the other way during all the predatory behavior, and continue to do so.
Democrats failed to speak out as it was occurring, and they failed to include small-business protections in passing the Dodd-Frank Wall Street Reform and Consumer Protection.
Further, the Obama Administration has been cozy with Wall Street, ostensibly, to attract political donations. I took originally took note of the administration’s behavior in writing Sen. Cantwell Is Right to Question Risky Derivative Dangers, Geithner. So it’s an irony to me that Democrats are disingenuously trying to capitalize on the Wall Street protests.
Let’s not forget another entity. I wonder: Does the Federal Reserve Understand Small Business? No.
Fortunately, let’s consider that the Legal War on Wall Street Chicanery Isn’t Finished.
But how can the protests help change the culture of corporate greed for economic patriotism?
Protestors need more articulation – not just inane ramblings about corporate greed and spreading the wealth – and organization. Merely sticking it to the wealthy with taxes, and closely allying with opportunists, such as the Rev. Al Sharpton, won’t help the cause and enable good messaging.
The movement needs to grow roots and needs a credible leadership to espouse American values, just as the Vietnam War protests gained traction. Instead of just a bunch of hippies, pacifists and students, it became a movement for moderate American patriots as they began to question the justification for the war.
The Wall Street protests need to focus on corporate ethics.
Again, a classic marketing line of attack is needed. A rag-tag approach doesn’t lead to successful marketing results.
Moreover, it isn’t likely to happen, but leadership is to needed to avoid the typical 14 reasons for the failure of campaigns.
In marketing failures, there are 14 salient causes:
- Inadequate analysis of strengths, weaknesses, opportunities and threats
- Drawing incorrect conclusions from the analysis (leading to ineffective overall strategic planning)
- Unrealistic budgeting
- Ineffective testing of ideas and messaging
- Arrogance – over confidence
- Poor coordination with centers of influence
- Not developing effective teamwork and communication among stakeholders
- Targeting the wrong market
- Lack of job descriptions – who will do what and when?
- Wrong people in many key positions
- Poor positioning in attributes and benefit statements
- Ineffective allocation of promotional funds – wrong mediums preventing top-of-mind awareness in customers, or voters
- Unproductive evaluation of the campaign and return on investment
- Unsuccessful responses to negative surprises and failure to capitalize on opportunities
Thanks for humoring me. Let’s hope for meaningful reform.
From the Coach’s Corner: here are more thoughts about Wall Street greed.
“Three great forces rule the world: stupidity, fear and greed.”
-Albert Einstein
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Columnist Terry Corbell is also a business-performance consultant and profit professional. Click here to see his management services (many are available online). For a complimentary chat about your business situation or to schedule Terry Corbell as a speaker, why don’t you contact him today?
Cyber Security: Is Your Business Prepared with Precautions and Response Philosophy?
Oct. 10, 2011
On a daily basis, there are headlines about cyber crime. Justifiably, the U.S. Senate is again getting into the act: “Senate Committee Approves Data Breach Bills Despite Heavy Opposition.”
Three data security and privacy bills were recently passed in the Senate Judiciary Committee in the face of vehement opposition from Republican members. The multiple bills will be merged into one bill for debate before the full Senate.
These aren’t the first attempts.
As I understand it, the proponents’ goal in Congress is to require companies and federal agencies to protect consumer data, and to pass a national-notification law for data-breach reporting.
Currently, there are a myriad of state laws controlling what businesses must do if their data is breached. Each state has its own requirements. Those laws would take a backseat to any federal law, unless the individual state laws require particular protections and programs to help victims.
Incredibly, Sen. Chuck Grassley (R-Iowa) maintains such an umbrella federal law would be overkill, and would unfairly burden small businesses. Even as a business-performance consultant for small to medium size companies, I differ.
No one wants to see small businesses be hampered, but they need to pay the price of benefiting from such commerce. The right thing to do is to take proper precautions, and to communicate with customers if there’s any evidence of a data breach. And I’d want to consider the potential damage to a company’s reputation. Being lax in security is not acceptable. It’s a sales-opportunity cost.
Growing national headache
As noted here before, cyber crime is a widespread nightmare, including medical breaches: Why Many Healthcare Workers Are Responsible for Alarming Trend: Medical ID Theft.
Indeed, consider a recent breach – the major personal breach of Tricare’s data by a vendor, Science Applications International Corp. It was the breach of unencrypted backup tapes – medical records of some 4.9 million military-personnel patients for the last 19 years. Data includes addresses, Social Security numbers, telephone numbers and more.
What? The company failed to encrypt the data?
Astonishingly, the vendor claims the risks are minimal because it would require additional insider information about the company’s software and hardware. I question such an assertion, too.
“A security breach is like a heart attack or stroke,” warns a nationally known cyber security expert, Dr. Stan Stahl.
“It’s often the things you do first that determine whether the patient lives or dies,” he says. “Doing these right things first depends on management having a clear understanding of the implications of their choices along with the information they need to choose between alternatives.”
He offers an example: “Do we put this server back into production right away because our people need to work on it or do we first preserve any evidence it might contain?” he asks.
He quotes President Dwight Eisenhower: “When going into battle, planning is essential but plans are worthless.”
Obviously, common sense is warranted.
While the Senate debates this vital issue, it’s important to take precautions. Be mindful of your state’s legal requirements. Make certain you’re using the latest security measures. Be prepared with a response strategy in the event of a breach. Tell your customers what you’re doing to solve the issue, and give them ample opportunity to get in touch with your company.
That’s the right thing to do.
Dr. Stahl’s links:
From the Coach’s Corner, there are countless cyber-security tips in this portal’s Tech section, including:
Security Precautions to Take Following Citibank’s Second Reported Online Breach
Our Mobile-Banking Warnings about Security Prove Prophetic
“All violations of essential privacy are brutalizing.”
-Katharine Fullerton Gerould
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Columnist Terry Corbell is also a business-performance consultant and profit professional. Click here to see his management services (many are available online). For a complimentary chat about your business situation or to schedule Terry Corbell as a speaker, why don’t you contact him today?
What Do Small Business Owners Need from Washington State Policymakers?
Updated Feb. 1, 2012
Washington state legislators are getting an earful from small-business owners. But will lawmakers listen in the 2012 legislative session?
Washington state’s small-business owners have voiced their concerns over six major public-policy issues, as a result of a Seattle-area conference held by respected think-tank Washington Policy Center (WPC). Their economic-related issues range from workers’ compensation to mandatory paid sick leave.
A detailed analysis was presented in a report to the Legislature.
“Nearly half of Washington’s work force is employed by small businesses,” said WPC President Daniel Mead Smith.
“These are the businesses struggling for survival right now, and they came to us with practical recommendations for how policymakers can make it easier for them to not only survive but grow and create jobs,” added Mr. Smith.
The conference held breakout sessions at Bellevue College.
“The result is a list of priority solutions, selected by small business owners, for solving the major problems with the state’s business climate and moving towards economic recovery,” wrote WPC Communication Director John Barnes.
Here’s the list of small-business owners’ issues:
Workers’ Compensation
- Revisit voluntary settlement agreement, as passed in the state Senate in 2011
- Do not raise rates for 2012 since L&I funds are in the black
- Increase the fraud prevention and investigation efforts
Unemployment Insurance
- Reform the displaced worker retraining program
- Implement a web-based portal to allow employers to access current claims data, including current contact information for unemployed workers (similar to the system used by the Department of Labor and Industries)
- Educate small business owners about the “shared work program”
Regulatory Reform
- Review environmental regulations to ensure that Washington rules don’t exceed federal regulations
- Legislature should not grant general rule making authority to agencies, but rather be specific about rules to be put in place
- Legislature should listen to and follow up on State Auditor Office reports on regulatory reform (tie)
- Sunset provisions for regulations (tie)
Health Care
- Tort reform
- Limit the number of state-required health mandates
- Repeal federal health care law
Transportation
- Do no harm — don’t reduce lane capacity
- Protect highway tolls and taxes for highway purposes
- Make congestion relief a policy goal (tie)
- Performance-based spending on transportation (tie)
Mandatory Paid Sick Leave
- Legislature should not follow Seattle and should not enact statewide paid sick leave
- State should pre-empt local government regulations on labor laws
- Business impact statements on laws like mandatory paid sick leave should be required
“The conference was co-sponsored by Verizon, Regence, Wells Fargo, Walmart, the Puget Sound Business Journal, Berntson Porter and Co., Columbia Bank, the Washington Health Foundation, NCM, Associated Builders and Contractors of Western Washington, Baldwin Resource Group, and Noteworld Servicing Center,” Mr. Barnes indicated.
”More than 30 chambers of commerce and trade associations from around the state co-presented the conference,” he added.
This was WPC’s fifth conference hosted since 2003. Rarely has the majority of the legislators listened to small business. Let’s hope they start now for economic development and the creation of jobs.
From the Coach’s Corner, in the past I’ve written about the results of the WPC conferences. I’ve also voiced similar concerns in this portal’s Public Policy section.
“People try to live within their income so they can afford to pay taxes to a government that can’t live within its income.”
-Robert Half
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Columnist Terry Corbell is also a business-performance consultant and profit professional. Click here to see his management services (many are available online). For a complimentary chat about your business situation or to schedule Terry Corbell as a speaker, why don’t you contact him today?
President Obama Misses Mark Again, More of the Same
Sept. 9, 2011
President Obama is proposing superficial bandaids from political motivations that would accomplish little to solve the structural economic challenges afflicting the U.S.
America’s economy is barely holding together by pins and needles. It could tear completely apart with one more catastrophe. With its $447 billion plan, the Obama Administration has proven again it does not know how to stimulate growth in jobs. If the administration gets its way, a double-dip recession is inevitable — not economic recovery.
Yes, I’m all for roads and education. But I’m troubled. Why? My sense is that the administration is making recommendations for political reasons, and not economic patriotism. More on that later.
U.S. business has too little domestic demand for products. The list of concerns is long. America is no longer a manufacturing center. Television sets and computers are made in Asia. Cars and trucks aren’t selling.
Many big companies like General Motors are investing abroad and making more money there. Yes, ask GM about cars sales in China.
All of this means a stalemate in domestic job creation.
Extend unemployment insurance?
OK, 14 million Americans are jobless. Not to sound unsympathetic, but many workers are partly to blame by not adapting to the new digital age with new skills. There are countless unfilled jobs.
At what point does a helping hand become a handout?
Recessions weren’t kind to me. Long ago, my personal situation helped coin the phrase, corporate downsizing – 14 times. Yes, 14 layoffs. Yet, I always found ways for a sustainable income. It wasn’t always in my preferred industry. Sometimes, I turned to other sectors and got a sales job and worked my way back into management.
As a former mentor, famed broadcaster Del Sharbutt, once bluntly told me: “Every experience is a learning experience.” Reading between the lines, he was also telling me mental toughness was in order. What I eventually learned was that I needed an entrepreneurial spirit. Despite all the jobs, not to be gauche, but a CBS executive referred to my resume as a “rich background.” His comment spurred an even more intense entrepreneurial conviction.
That’s what America, American workers and the Obama Administration need.
The straw that stirs job creation – small business – can’t get credit and enough customers. Studies show most is not hiring nor will they for at least 18 months. Why? Again, there’s too-little domestic consumption.
Family budgets are strained. U.S. consumers are spending more but it’s more precious dollars on food and gas. Both are heavily imported. There isn’t any new drilling for oil and natural gas. So much of domestic consumer money is going abroad but it isn’t returning as a result of exports. The trade imbalance is still way out of whack.
Disingenuous spending
President Obama is calling for more stimulus spending. He apparently thinks spending another $140 billion on roads and schools will work. But my sense is that his proposal is aimed at benefiting the unions for political donations (see this EDITORIAL: How labor unions spend dues money).
Mr. Obama is showing he does not have Bobby Kennedy-like qualities (note this revelation: Dirty work between Obama, Teamsters). Do you recall the administration of John F. Kennedy when his brother, Attorney General Robert Kennedy, had his principled legal fight with the Teamsters in the 1960s?
Meantime, the president proposes to finance his proposed new stimulus with cutbacks in Medicare and Medicaid. It’s fallacious reasoning to think it’s best to spend more for union construction jobs while healthcare workers will lose theirs.
We already know about the devastation caused by his healthcare law. The majority of small businesses are apprehensive. Their workers and all patients face higher costs in their copayments and coverage.
Launching an infrastructure bank to lend money to local and state governments and financed privately?
Please. Government budgets at all levels are stretched too thin, as it is. Government credit ratings are backsliding. Doesn’t anyone remember the U.S. downgrade?
To expect these governments to repay the money isn’t productive, just as businesses fail when they borrow money just to stay in business. At some point, they have to repay the money, or else.
President Obama wants more business regulation – more government bureaucracy. Again, talk to the majority of businesses. You’ll get an earful.
He wants to tax the wealthy at higher rates. So how will they invest and hire workers? What’s their incentive to spend? The hospitality industry – from hotels to restaurants – is barely making it now. Sticking to the wealthy might make some people feel better, but it’s not a solution.
Payroll tax cuts won’t stimulate job growth and are a threat to future Social Security recipients for their retirement. The short-term benefit would be catastrophic for the long term.
There are more red flags, but you get the idea.
We waited weeks for President Obama to outline a new public-policy approach for economic recovery and job creation – in vain.
What we need is common-sense leadership and change from the White House, not politics. Remember the campaign promise? But nearly three years later, are we getting it? No, it’s more of the same politics. There’s no infrastructure being proposed for short-term or lasting recovery.
From the Coach’s Corner, instead of just complaining, this portal’s Public Policy section is filled with solutions.
“The problem with the federal government is that common sense is not necessarily common.”
- Terry Detrick
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Terry Corbell is a business-performance consultant and profit professional. Click here to see his management services (many are available online). For a complimentary chat about your business situation or to schedule Terry Corbell as a speaker, why don’t you contact him today?
How CEOs, Taxes and Policymakers Fail the U.S.
Updated Feb. 1, 2012
Like it or not, stagnant growth increases the possibility of a double-dip recession. We’re in a precarious position, largely, because businesspeople and consumers lack confidence in the economy – for good reasons.
Fourteen million Americans are out of work. For many available jobs, Americans lack education and skills to meet the specific needs of employers.
Still, many big businesses are slow to hire until uncertainty is alleviated. They have healthy balance sheets after paying down debt, and they’re hoarding cash.
Most small businesses don’t have adequate credit and can’t expand. They’re also angry about the healthcare law, which threatens their ability to stay in business.
Consumers are stunned by high food and gasoline prices. Mortgage debt stresses many homeowners. And they’re angry because of gluttonous Wall Street chicanery, and Congress can’t balance the budget.
Voters want lawmakers to tackle urgent economic problems. Instead, only a minority of policymakers has an adequate understanding of economic-growth principles, and they have the image of acting like a ruling class at the public trough.
After three years, the Obama Administration has produced any sound solutions.
Did I leave anything out? It’s no wonder the stock market is near bear-market levels.
Morale-busting headline
Consumers and small business owners were angered by a Bloomberg headline: “CEOs Earned More Than U.S. Companies’ Tax Bills, Study Finds.” Incredibly, the Institute for Policy Studies issued a report divulging that 25 chief executives were paid more in 2010 than their companies actually paid in federal taxes.
The report showed such companies averaged $1.9 billion in global profits. They include Boeing, Ebay, Cablevision Systems, and Verizon. What’s worse, while their CEOs were paid in the seven figures, some companies received government tax refunds.
The Institute for Policy Studies’ examples:
- Cablevision CEO James Dolan was paid $13.2 million, but the company had a $3 million corporate income tax benefit.
- EBay CEO John J. Donahoe received $12.4 million while his firm got $131 million in tax write-offs.
- Verizon CEO Ivan Seidenberg was compensated $18.1 million but his company netted $705 million in tax benefits.
The Bloomberg article also reported a study by another nonprofit group, Citizens for Tax Justice. It claimed 11 companies received $62 billion in domestic profits, but only paid a “negative 3.6 percent tax rate in 2010.”
True, the U.S. has a high corporate tax rate, but it’s negated by countless loopholes.
Job stimulus is anything but
Another disturbing headline: “Study: Half of Hired Stimulus Workers Were Already Employed.”
The federal jobs stimulus is not well-designed when the stimulus only results in job shifting. But that’s what’s happening, according to the study by George Mason University.
Even though workers have jobs, they’re hired by other firms – with the help of stimulus funds. The government would lead us to believe new jobs are being created, but 47.3 percent of the workers already had jobs.
How can new consumers’ money enter and circulate in the economy, if we’re merely moving workers around?
As a Biz Coach, these are frustrating developments.
Clearly, what needs to occur is widespread economic patriotism:
- The tax code has to be rewritten and simplified to eliminate the unpatriotic tax write-offs.
- Public policy has to become productive – money for jobs and has to be invested for economic development, not wasted.
- Voters have to elect representatives who understand basic economics and who will work for the common welfare of this great nation.
- Parents should encourage their children to take advantage of educational opportunities when they first start school.
- Workers should understand inertia doesn’t work – they need to adapt so that their skills match employers’ needs.
When progress is made in these areas, confidence in the free-enterprise economy will return.
From the Coach’s Corner, here’s more:
Federal Reserve Typifies What’s Wrong with Economy
Does the Federal Reserve Understand Small Business?
Only Fiscal Sobriety Will Prevent Further Fiscal Chaos
“You can always count on Americans to do the right thing — after they’ve tried everything else.”
- Winston Churchill
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Terry Corbell is a business-performance consultant and profit professional. Click here to see his management services (many are available online). For a complimentary chat about your business situation or to schedule Terry Corbell as a speaker, why don’t you contact him today?
