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GOP Stalwarts Push for Grand Bargain — Regulatory Relief, Carbon Tax

August 10, 2018 by Llewellyn King Leave a Comment

In Hugh Lofting’s children’s stories about “Doctor Doolittle” there appears an imaginary creature resembling a llama, but with a head at either end of the body, so that it always faces in two directions at once. Called the pushmi-pullyu, it’s become a metaphor for contradiction.

U.S. energy-environmental policy, I submit, is characterized by this kind of contradiction. And make no mistake, energy policy is profoundly affected by environmental policy. Mostly, it’s the bit left over after the environmental constituencies have been satisfied.

The country’s energy-environmental policies are subject to a plethora of contradicting stimuli and restrictions that, while sometimes achieving their goal, cost the economy 1 percent a year, according to an analysis by EY, the global accounting firm. This on top of bad decisions — based on what can be gotten through the regulatory thicket not on what is needed, or what will benefit the environment — and endless delay.

Now a group of Republican stalwarts, who believe that climate change is happening and is caused by human activity, wants to do something about this pushmi-pullyu situation in energy-environmental policy. Their remedy: Substitute all the contradictions, preferments, subsidies, tax anomalies and self-defeating rules with a simple, revenue-neutral carbon tax.

These climate change-minded conservatives have created a Washington-based organization, the Alliance for Market Solutions. Its executive director is Alex Flint, a former staff director of the Senate Committee on Energy and Natural Resources, and a former senior vice president of governmental affairs at the Nuclear Energy Institute.

The backers of the alliance — rock-ribbed Republican business executives, academics and think-tank fellows — are committed to turning the GOP toward taking a positive stance on climate change. They believe that science has spoken, and the environment is the great existential threat facing humanity.

Among those who are throwing their experiential weight and financial resources behind the alliance are Jeffrey Williams, founder and chairman of the eponymous investment banking company; William Strong, chairman and managing director of the private equity firm Longford Capital Management; Marvin Odum, former chairman of Shell Oil; John Rowe, former chairman of Exelon Corp.; and Stephen Wolf, former chairman and CEO of United and three other airlines.

These titans are joined by academics and public intellectuals including John Graham, dean of the Indiana University School of Public and Environmental Affairs, and administrator of the Office of Information and Regulatory Affairs in the U.S. Office of Management and Budget during the George W. Bush administration, and Christopher DeMuth, a distinguished fellow at the Hudson Institute and a former president of the American Enterprise Institute.

The alliance and its backers are neither seeking to argue with the Trump administration, which has denied climate change, nor to take up arms with the forces that categorically reject any new tax. They say they’ll only support a carbon tax if it’s a genuine tax reform as well as a regulatory reform. They want to work quietly, and in small groups, inside the GOP body politic.

The difficulties of getting Republican lawmakers to consider a carbon tax were illustrated when Rep. Carlos Curbelo of Florida introduced a such a bill on July 23. It got immediate pushback from Grover Norquist of Americans for Tax Reform, and the House passed an anti-carbon tax resolution on July 25.

But Flint and members of the alliance are undaunted: “As long as we have to address carbon pollution and doing so with a carbon tax is much less burdensome than doing so with regulations, and we have to make our tax code more efficient, a carbon tax is going to be part of the conversation,” Flint said at his offices near the Capitol.

The battle to contain carbon emissions is joined — from the right.

Filed Under: King's Commentaries Tagged With: environment

The Monster Disease Medical Schools Don’t Mention

August 3, 2018 by Llewellyn King 1 Comment

For 10 long years, I’ve been writing and broadcasting about Chronic Fatigue Syndrome, now called Myalgic Encephalomyelitis (ME).

Like all chronic diseases, it’s brutally unfair to the afflicted. But ME also can claim to have been unfairly treated by doctors and medical researchers, the pharmaceutical giants, and the politicians who control the flow of funding to the National Institutes of Health and the Centers for Disease Control, the nation’s medical research and health protection agencies.

Research into ME has been grossly underfunded for years. By government standards for other diseases, research funding for ME has been microscopic: It’s received $16 million this year, doubling the 2016 funding. Lyme disease, for example, has received roughly three times the federal funding.

ME is a lifetime affliction. I’ve now spent enough time with clinicians, patients and their families to know just how cruel it is. I’m most pained by the young who will suffer so long, missing all the joys of youth and the fulfillment that is life’s expectation.

Estimates vary on the number of sufferers, starting at 1 million in the United States and 17 million worldwide. However many there are, I can tell you that they suffer terribly.

Getting the disease is a life sentence without parole, commutation or pardon. One of the leading research doctors told me he would rather get cancer than ME. “With cancer, you have a chance of a cure or you die. With ME, you’re hopelessly sick,” he said.

I’ve received many emails from patients who wish for death. Some bring it about.

ME suppresses the immune system, and its most common manifestation is exercise intolerance. Fatigue is the most pervasive symptom, with sleep that doesn’t refresh.

In the most severe cases, patients are bedridden with extreme intolerance of light or sound. Others ride a rollercoaster of feeling slightly better or worse. Migraines and excruciating joint pain are other symptoms.

I was able to have one patient travel to Washington to appear on a television program and do a short radio broadcast. She paid the price she knew she’d have to pay: three days of bed rest.

Some suffers can manage very limited daily activity. But the ever-present cloud of fatigue is there: the dark truth that they’re in a different place than the rest of us.

In the last five years, advocacy groups have generated more interest in the disease in the medical research community, including the NIH, and the public. These vital volunteer groups include the Solve ME/CFS Initiative, the Open Medicine Foundation and #MEAction, created by Jennifer Brea, star of the movie “Unrest,” and PANDORAorg. There are also diligent state organizations, like the Massachusetts Cfids Association.

Yet a cure still eludes, as does any large understanding of ME among doctors and researchers in related fields. The first struggle for the afflicted is to find a doctor who knows what it is and can render a diagnosis. Many visit a dozen or more doctors before they find one who might know the cause of their suffering. There’s no biological marker.

Medical schools don’t include ME in their curricula: not even one lecture in most.

From clinicians in the field, like Dr. David Systrom of the Harvard Medical School and Brigham and Women’s Hospital and his colleague Michael VanElzakker of the Massachusetts General Hospital, the cry is going out to medical schools to inform students about the disease.

Finding a cure is of prime importance. But until that day, getting the word out is also hugely important.

Searching for a cure takes talent, genius and money. For medical schools to advise a new generation of doctors that there’s a monster out there who will one day come through the doors of their practices, is just good medical citizenship.

Hello, there, medical schools.

 


Photo by rawpixel on Unsplash

Filed Under: King's Commentaries Tagged With: Chronic Fatigue Syndrome, chronic illness, ME/CFS, Myalgic Encelphalomyelitis

Smart City Revolution Is Underway, Changing Old and New

July 27, 2018 by Llewellyn King Leave a Comment

Cities are getting smarter. It’s happening right now, and it isn’t much short of a revolution.

Whole cities are incorporating the Internet of Things (IoT) into their daily life, changing the way the cities and towns live and breathe. The idea is to improve the quality of life for the billions who now live in cities or will as the relentless urbanization of the world continues.

Some are more advanced than others, but the revolution is afoot across the globe. Experts can’t explicitly say which communities are leading the pack but, expectedly, Singapore and Dubai are in the front row, and so are New York and San Antonio.

The goal is to make cities, as old as civilization, more citizen-friendly and more efficient and to ready them for further electrification in transportation — and, one day, for autonomous vehicles.

Clint Vince, chairman of the U.S. Energy Practice of the world’s largest law firm, Dentons, tells me that the firm is so involved with smart cities and communities that it has established a not-for-profit think tank to work on smart city issues within it. He said the think tank has determined 14 “pillars” of the smart city, from obvious ones like transportation, water, electricity and sewage to less obvious city functions like health and recreation.

Vince has represented New Orleans and San Antonio for many years, but he now sounds more like a city visionary than a lawyer. “Take the electric grid: It has to go from a single-direction flow, taking electricity from the point of generation to the point of consumption, to a two-way flow,” he said. “Eventually, it has to have multi-directional flows.”

Vince is talking about the effect of microgrids and dispersed electric generation, such as rooftop solar. One day, this grid flexibility may lead to innovations such as electric cars “lending” electricity to the grid when prices are favorable.

Electricity and smart meters, which are the key to what is known as the smart grid, began the revolution. Now the surge is joined by telephony in connecting, managing and directing the smart city infrastructure, and in trouble shooting it.

Tony Giroti, chairman of the Energy Blockchain Consortium, says smart installations aren’t just for monitoring and metering electricity and water consumption, but also play a prime role in bridging the divide between the old infrastructure and the new information-driven one. Smart city sensors will advise before there is a problem with an old pipe or compressor, so that proactive intervention can avert breakdowns.

Cities such as New York and Washington have underground pipes and wires that are past their prime, but they needn’t pose the threats they used to: The cities can cry out electronically when their physical plant is hurting. The New York Power Authority, a state agency, is credited with a leading role in smart cities, but the rush is on across the country and around the world.

As the information-driven city takes hold, so do questions ranging, for example, from where will autonomous ride-share cars loiter when not booked to where will they park?

I was leaving an interview about the future of cities when I fell over it. Literally. One of those scooters that are now part of the urban transportation mix had been left on the sidewalk. Because of the use of internet technology and GPS, riders can leave them anywhere when they get to their destinations. The scooters are picked up and recharged at night, signaling to the company where they are via GPS.

Creating new, more livable cities is exciting; dealing with the unexpected consequences, as always, is challenging. When no one is looking, I’m going to try one of these scooters. I may be in traction when I write my next column, but don’t worry — it’ll be delivered electronically.

 


Photo by Sven Scheuermeier on Unsplash

Filed Under: King's Commentaries

Rupert Murdoch, Mischief-Maker on a Global Scale

July 20, 2018 by Llewellyn King 2 Comments

Liberals get apoplectic at the mention of the Koch brothers and, by the same token, conservatives gag at the mention of George Soros.

Yet, it can be argued, another rich man might have had a much larger effect on the politics of this century: Rupert Murdoch.

Murdoch is the uber publisher and broadcaster of our time, and manipulator of public opinion. In Britain, he is courted by prime ministers and in the United States by politicians, left and right. Since the emergence of Fox News as the champion of the angry white voter, he has been the comfort and the looking glass of one Donald Trump.

Murdoch is a phenomenon. He is courageous, opportunistic and blessed with an unparalleled ability to divine the often-hidden aspirations of his readers and viewers.

He also does not care what people think. That may be his greatest strength. He does what he damn well pleases and his success at doing that is played out on the world stage. He has gained the social and cultural recognition of media supremacy but has not sought them.

He loves making newspapers, making television, making money and making trouble.

His British newspapers — more than half the people who read a newspaper in Britain read one owned by a Murdoch company — backed Britain’s seemingly suicidal vote to leave the European Union.

The tone of his anti-European ravings was summed up on Nov. 1, 1990, when Britain turned its back on European monetary union with the now famous front-page headline “Up Yours Delors!” in The Sun, Britain’s largest circulation daily newspaper. At the time, Jacques Delors was president of the European Commission.

The Sun was not content just with its headline: It advised all its readers to turn toward Europe and make an obscene gesture. Not exactly sophisticated reasoning, but good at getting the nationalistic sap up.

The same thing you can get on Fox day after day from Sean Hannity, Lou Dobbs and Laura Ingraham, and the thin gruel of reason served up by the breakfast team. Gruel, it must be noted, that is nourishment and justification to President Trump.

I still marvel at what amounted to Murdoch’s conquest of British newspaper publishing. It was genius: He identified a right-wing, jingoistic streak in the British working-class male and he went for it with chauvinistic fury — and naked female breasts on Page 3. Murdoch’s legendary conservatism did not extend to women in front of the camera. If raunchy sold, raunchy it would be.

It paid off and enabled Murdoch later to take over the legendary Sunday Times and daily Times and to finance his American adventure, where something of the same formula applied to cable television has been diabolically effective.

Murdoch’s newspapers in Britain played a key role in the Brexit vote. It is less clear whether Fox played a role in Trump’s election, but it did not hurt. The trick in publishing or broadcasting to an ideological base, a conservative strategist once told me, is to keep the faithful, not to change minds. More troubling is the effect Fox has as an enabler for Trump’s more egregious actions, and his banal but damaging attacks on the media.

Fox floats the idea the mainstream media is a kind of monolithic, left-wing conspiracy and Trump amplifies it. Between Fox and Trump, they toss the mendacities back and forth until the authorship is lost. It is awesome to think mainstream can be turned into a pejorative just through repetition.

Murdoch is a conservative, except in journalistic vulgarity and when it is advantageous to go left, as he did in Britain when he backed Tony Blair and Labor in 1997. In New York, he cultivated the Clintons — maybe as insurance, maybe just as the entitlement to know power that goes along with his own power, or he may just have liked them.

Having been curious about Murdoch and his ways — and at times lost in admiration — since he figuratively invaded Britain in 1969 and seen the good and the bad that followed, I think he toys with politicians and is amused by his ability to influence events. Not much more and not much less.

There is a British expression for stirring things up: putting a bit of stick about. No one has put more stick about than Murdoch and he is not done. Tune in to Fox tonight and just see.

 

 


Photo: David Shankbone. This file is licensed under the Creative Commons Attribution 3.0 Unported license.

Filed Under: King's Commentaries Tagged With: Brexit, Fox News, Hannity, Murdoch

The Case for Saving Nuclear Is Not the Case for Saving Coal

July 13, 2018 by Llewellyn King 2 Comments

Coal and nuclear power have been yoked together for decades. Nuclear power and nuclear science have both paid the price for this double harness. Now it looks as though nuclear will pay again.

The electric utilities in the 1950s and 1960s were faced with runaway demand for electricity as air conditioning was deployed and new home construction boomed. This was before acid rain became a problem and when global warming was just a minor scientific theory.

As the utilities struggled to deal with electricity demand that was doubling every 10 years, nuclear appeared as the brave new fuel of the future. They loved nuclear, the government loved nuclear and the public was happy with it.

So, utilities went hellbent into nuclear: In all, starting in the 1950s, utilities built over well over 100 reactors for electricity production.

Then opposition to nuclear began to appear, at first in the late 1960s and then with intensity through the 1970s.

Horror stories were easy to invent and hard to counter. Being anti-nuclear was good for the protest business. The environmental movement — to its shame — joined the anti-nuclear cavalcade. Indeed, in the 1970s and 1980s, environmentalists were still hard against nuclear. They advocated advanced coal combustion, particularly a form of coal boiler known as “circulating fluidized bed.”

For their part the utilities defended nuclear, but never at a cost to coal. They were worried about their investments in coal. They would not, for example, sing the safety, reliability and, as it was then, the cost-effectiveness of nuclear over coal.

They said they were for both. “Both of the above” meant that the nuclear advocates in the industry could not run serious comparisons of nuclear with coal.

Now the Trump administration is seeking that history repeat itself. To fulfill the president’s campaign promises to the coal industry and to try to save coal-mining jobs, the administration is invoking national security and “resilience” to interfere in the electric markets and save coal and nuclear plants, which the utility industry is closing or will close.

The predicament of these plants is economic; for coal, it is economic and environmental.

Both forms of electric generation are undermined by cheap natural gas, cheap wind power and cheap solar power. In a market that favors the cheapest electricity at the time of dispatch, measured to the second, these plants do not cut it financially. The social value or otherwise is not calculated.

The fight between coal and nuclear, and more realistically between nuclear and natural gas, misses the true virtue of nuclear: It is a scientific cornucopia.

Nuclear science is reshaping medicine, enabling space travel and peering at the very nature of being. In 100 years, nuclear science will be flowering in ways undreamed of today. A healthy nuclear power industry grows the nuclear science world, brings in talent.

Even without the science argument, there is a case for saving the nuclear plants: They produce about 20 percent of the nation’s electricity without hint of carbon effluent, which gas cannot say.

A fair market allows for externalities beyond the cost of generation and dispatch at that second. Clean air is a social value, scientific progress is a social value, and predicting the life of a plant (maybe 80 years) is a social value.

Natural gas, the great market disrupter of today, does not meet these criteria.

As electricity is unique, the national lifeblood, it deserves to be treated as such. That cries out for nuclear to be considered for a lifeline in today’s brutal market.

If it embraces a long-term solution through carbon capture and use, then coal may hold a place in the future. But the industry is cool to this solution. Robert Murray, CEO of Murray Energy Corporation, denounced it to me.

The administration has put money into a new nuclear through incentives and subsidies for small modular reactors even while linking established nuclear to the sick man of energy, coal.

Electricity is a social value as well as a traded commodity. The administration is working against itself with its coal strategy.

Filed Under: King's Commentaries Tagged With: coal, energy, Murray Energy Corportation, nuclear, renewable

Trump Foreign Policy Sneers at Europe, Winks at Russia

July 6, 2018 by Llewellyn King Leave a Comment

There is a strain of conservatism in the United States that suffers from what might be called “Euro envy.”

It is not mainstream, and it was not the conservatism of former presidents Ronald Reagan or either of the Bushes. It has evolved from a hatred of socialist manifestations in European economies.

Sadly, President Donald Trump is the exemplar of this envy; this need to deride Europe and all things European.

Euro envy has its equally foolish counterpoint across the Atlantic that might be called “U.S. disdain.”

Neither would be of any consequence if it were not for the delicate international situation with the deteriorated relations between the United States and Europe, compounded by Europe’s own troubles.

Euro envy, at its purest, revolves around the successes of Europe: its public health systems, its efficient rail system, and its support of fine and performing arts. The belief is that Europe’s social approach cannot be better and somehow it must be found to be wanting.

Some things in Europe do work better, but at a price; a price in taxation and bureaucratic rigidities, which cost the Euro economies in lower growth and higher unemployment.

Anyone who has looked at European health systems knows that they work. Perhaps not perfectly, but well enough and at a lower gross price than their patchier American equivalent. Yet fables persist of people lining up in the streets of London for heart surgery and long waiting lists all over Europe for critical care. These are myths but potent ones.

For public transportation, health care and generous retirement, Europe pays. Recently in Sweden, a colleague who once worked in the White House press corps told me: “We pay half our wages in tax, but we get a lot for it.”

I would add to the downside of European life that it is very hard to fire anyone, that people retire too early and have too many government-guaranteed perks in the workplace like, in some countries, extended maternal leave for both parents.

The obverse, U.S. disdain, features exaggerated emphasis on gun violence, prison conditions, no universal health care, no job security and two-week vacation times.

The European left has always denigrated conditions in America and has unfailingly given short shrift to Republican presidents. They are damned out of the blocks. “Cowboy” is the pejorative thrown at them. This is as unfair and untrue as is the Euro sneering.

Despite these streams of envy, even hatred, the Atlantic alliance has been a thing of beauty in world history, a bulwark defending the cultures and freedoms that are the Western inheritance; the inheritance that has made the liberal democracies such a magnet for the world’s less fortunate. Illegal immigration is the compliment that the hapless pay to the happy.

Trump has swallowed whole the Euro disdainers’ views — they fit well with his nativistic views about the United States.

In one thing though, and it has riled the right for decades, Trump is right: Europe pays too little for its own defense. This is the cudgel that he will wield at the NATO summit. Europe, for all its quality-of-life smugness, depends on the U.S. defense umbrella.

These things make the next two weeks critical in world affairs, and replete with terrible irony. Europe depends on the United States to defend itself against Russia, which has shown designs on all the European countries which were once Soviet vassal states. But the guarantor of European freedom, Trump, is out to trash the European alliance and cozy up to Russia.

The irony does not stop there. Trump wants more money from Europe when he is about to damage its economies with a trade war.

In the next two weeks, there is not much to envy in the European predicament: pay up or face Russia alone. Trump will not have your back.

Filed Under: King's Commentaries Tagged With: foreign policy, NATO, Putin

GOP Establishment Savants Speak Softly, Back a Carbon Tax

June 22, 2018 by Llewellyn King Leave a Comment

Call it a tax without tears. It is a proposal to address carbon pollution by replacing a raft of tax subsidies and regulatory requirements with a carbon tax.

What is surprising is who is pushing it: dyed-in-the-wool, rock-ribbed Republicans.

They are the top of the GOP: Every one of them has had an outstanding career in finance, industry or academia. They are men and women who contribute to Republican candidates regularly — and some of them quite generously.

These Republican grandees and party financiers have formed the Alliance for Market Solutions (AMS), which aims to educate conservative policymakers on the benefits of market-oriented solutions to climate change.

“A carbon tax, if the myriad of subsidies and regulations that policymakers now use to affect markets are stripped away, would lead to economic growth and achieve significant carbon pollution reductions,” says Alex Flint, executive director of AMS.

Well-known in Republican circles, he previously served as staff director of the Senate Committee on Energy and Natural Resources and as senior vice president of government affairs at the Nuclear Energy Institute.

The organization’s 10-member advisory board includes John Rowe, former chairman and CEO of Exelon Corp., the largest diversified utility in the United States, and Marvin Odum, former chairman and president of Shell Oil Co. and board member of the American Petroleum Institute.

What we need now, Rowe said, is “a new approach to energy tax and regulation that advances our strategic policy objectives and recognizes that the period of scarcity that began in the 1970s is over. We no longer need to subsidize energy production.”

Instead, we need policies that address “the next great energy challenge: carbon pollution,” he said.

Rowe and AMS allies believe that pairing a “revenue-neutral” carbon tax with a regulatory rollback would be good climate policy.

Flint explained: “A carbon tax would ideally be imposed upstream where carbon enters the economy. Costs would then be passed down the consumption chain through prices, which would impact decision-making and drive the use of cleaner fuels and new technologies across the economy.”

Studies by AMS estimate that a carbon tax would generate more than $1 trillion in additional revenue over the next decade, which lawmakers could use to reduce other, more distortionary taxes, or do things like make the 2017 tax reform permanent or even further reduce income taxes.

Rather than mounting a loud public-pressure campaign, Flint told me the members of the alliance — which also includes William Strong, chairman and managing director of Longford Capital Management, and Chris DeMuth, distinguished fellow at the Hudson Institute — began by meeting quietly with influential Republicans in small groups, going over the gains that would come from tax reform and emphasizing that the carbon tax does not have to be a one-size-fits-all solution, although it is a simple solution to a pressing problem.

Emphasis has been on Republicans who wield power behind the scenes and the tax writers in the House and the Senate. The reformers are getting a hearing, I am told.

The alliance has tried hard to get the facts and detailed analyses nailed down ahead of public discussion. They have done this in a new book, “Carbon Tax Policy: A Conservative Dialogue on Pro-Growth Opportunities,” edited by Alex Brill of the American Enterprise Institute.

The book is, you might say, the creed of the AMS. It is an eye-opening read by conservatives who want to limit government market-meddling and bring about sound policy through enlightened taxation.

Filed Under: King's Commentaries Tagged With: Alliance for Market Solutions, conservatives, environment, pollution, Republicans, taxes

The Case Against Mega Mergers Is Written in History

June 15, 2018 by Llewellyn King Leave a Comment

At lightning speed, after a judge approved the merger, AT&T and Time Warner announced the completion of their $85-billion deal. Another behemoth has taken the field.

This merger, it is assumed, will lead to a flurry of other mergers in communications. Witness Comcast’s $65 billion bid for Fox, topping Disney’s $52.4 billion offer.

This is heady stuff. The money on the table is enormous, in some cases dwarfing the economies of small countries.

Merging is an industry unto itself. A lot of people get very rich: They are investment bankers, arbitragers, lawyers, economists, accountants, publicists and opinion researchers. When really big money moves, some of it falls off the table into the willing hands of those who have managed the movement.

The fate of the real owners of these companies, the stockholders, is more doubtful after the initial run-up. The earlier merger of Time with Warner Communications is considered to have been disadvantageous for stockholders.

Another concern is the mediocre performance of conglomerates. The latest to have run into trouble is General Electric, which had managed to do well in many businesses until recently.

A more cautionary story is what happened to Westinghouse when it went whole hog into broadcasting and lost its footing in the electric generation businesses. This was spun off, sold to British Nuclear Fuels in 1997, then sold again to Toshiba and later went into bankruptcy.

From the 1950s, Westinghouse it bought and sold companies at a furious rate, until the core company itself was sold in favor of broadcasting. One of Westinghouse’s most successful chairmen, Bob Kirby, told me it was easier for him to buy or sell a company than to make a small internal decision.

In another pure financial play, a group of hedge funds bought Toys R Us and with the added debt, it failed.

In many things, big is essential in today’s economy. News organizations need substantial financial strength to be able to do the job. Witness the cost of covering the Quebec and Singapore summits. As Westinghouse proved by default, big construction needs big resources. That is indisputable.

When growth through acquisition becomes the modus operandi of a company, something has gone very wrong. The losers are the public and the customers. The new AT&T, if it comes about, will still need you and I to lift the receiver, watch its videos and subscribe to its bundles.

Recently, I was discussing the problems customers have with behemoth corporations on SiriusXM Radio’s “The Morning Briefing with Tim Farley” when a listener tweeted that I hated big companies and their CEOs and loved big government.

Actually I’d just spent a week with the CEOs of several companies, admirable people, and I don’t think government should be any bigger than needs be. I certainly don’t think government should perform functions that can be better performed in the private sector.

The problem is size itself.

When any organization gets too big, it begins to get muscle-bound, self-regarding. Although it might’ve been built on daring innovation, as many firms have been, supersized companies have difficulty in allowing new thinking, reacting nimbly and adopting innovative technologies and materials.

If large corporate entities were as nimble as small ones, the automobile companies would’ve become the airplane manufacturers in the 1920s and 1930s. They had the money, the manufacturing know-how and the engineering talent. They lacked the vision. It was easier to be rent-takers in the production and sale of automobiles.

Likewise, it’s incredible that FedEx was able to conquer the delivery business when another delivery system, Western Union, was up and running. But Western Union was big, smug and monopolistic. They had the resources and an army of staff delivering telegrams.

Companies like Alphabet (Google’s owner) snap up start-ups as soon as they are proven. That snuffs out the creativity early, even if it wasn’t meant to, and makes Google even more dominant. I would argue too big for its own good — and for ours.

Filed Under: King's Commentaries

Customer Frustration Drove Many to Vote for Trump

June 8, 2018 by Llewellyn King 1 Comment

Trump is the product of a frustrated electorate sick of elites in Washington who pay no heed to the people who pay the taxes and have little interest in them. Thus runs the popular narrative of how we got President Donald Trump and why his base, despite everything, is firmly committed to him.

Half right, I say.

There was a great national dissatisfaction at the time of the election and there is so today. But was that really the result of unhappiness with elites in Washington?

I’d suggest that it is the daily frustration we all face in simply going about our business. Elites are to blame, but not the elites named in the political narrative that has become the conventional view of the Trump phenomenon.

The elites who frustrate us are the large corporate ones that we cannot live without and have difficulty living with. Substitute corporations for elites.

In no particular order, they are the insurance companies, the banks, the credit card companies, the airlines, the hospitals, the telephone companies, the cable TV providers, Amtrak, Amazon and other corporations that hide behind a battery of devices programmed to avoid any direct human contact with the customer.

In fact, to most billion-dollar-plus corporations, the individual is less significant than a grain of sand on a California beach. These suppliers of our needs are hidden in a thicket of automatic phone systems that seem to require that you spend half an hour in a maze of prompts before, maybe, you reach a person who will also behave as though he or she is a recording; a person who is reading from a script and diverting your pleadings.

Collectively, what they’d like to tell you is you are in the wrong and will always be in the wrong because you are a statistical inconvenience, your custom a nuisance.

Step forward my bank.

More than 40 years ago, I added my wife to a credit card. We had an amicable divorce and we both got married again.

Regularly, over the years, I’ve asked my bank to remove her name, Jane Doe King — to protect her privacy — from the card. I paid all the bills, and my notes with the payments and letters were never answered.

Suddenly this year, my bank decided it was imperative that they get information on Jane Doe King, who is a nonexistent person. I went to my branch, explained the situation and was told by an officer that she’d been removed from the card. All’s well that ends well.

But it wasn’t the end, and all wasn’t well.

A few days later, when I tried to call an Uber car, I learned that my card was blocked because Jane Doe King hadn’t supplied her financial information to my bank.

I called my bank. After the de rigueur half hour of playing the equivalent of telephone pinball with their answering system and the irrelevant prompts, I spoke to a representative. He might as well have been a recording because no matter what I said, he went back to the script in front of him.

I explained, he demurred. Jane Doe King would have to prove first that she existed and then that she wanted to be removed from the card, which she had never used in more than 40 years.

I asked him to call the officer in the bank’s branch with whom I’d spoken. He said his phones didn’t have outgoing lines and so he couldn’t do that. I said I’d go to the bank’s branch and have the officer call the credit card department and straighten out the matter. But he wouldn’t give me his direct-dial number or his last name; just his first name and the general number. I went into serious profanity suppression mode.

Only the appearance of the person who does not exist would satisfy the Man Who Can’t Make Phone Calls. Fearing temper loss, I hung up and emailed the bank officer who had “fixed” the problem. He hasn’t replied.

The message is that you, the customer, and your account and patronage don’t count.

Even as you read this, thousands of Americans are getting the electronic runaround as they try to solve simple issues. Confused and angry, they are turning to the wildest political solution they can: Trump. Sadly, this is another abortive pursuit.

Filed Under: King's Commentaries

Llewellyn King on Morning Briefing with Tim Farley

June 1, 2018 by Llewellyn King Leave a Comment

Llewellyn King joins Tim Farley, host of “The Morning Briefing with Tim Farley” on SiriusXM Radio’s P.O.T.U.S., Channel 124, to discuss the inhumanity of illegal immigrant deportations and the future economic need for immigrants in the United States. He also discusses a “third way” to remedy many of the stresses borne by communities from illegal immigration.

Click the play button below to listen.

http://whchronicle.com/wp-content/uploads/2018/06/05-31-18-Llewellyn-King-with-Tim-Farley-self-contained.mp3

 

 

Filed Under: King's Commentaries

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