Murdoch Has ‘Unfit’ Company
Rupert Murdoch, the 81-year-old chief executive of News Corp., has been told by a select committee of the British parliament that he is “unfit” to head his global media conglomerate.
It is a particularly British accusation and one that is especially punishing, both because it is so indelible and is so seldom used.
“Unfit” is not a charge that is often leveled, so its impact is especially great. In 1971 a publishing rival of Murdoch’s, Robert Maxwell, was indicted as being “unfit” to run a public company. His were sins of greed and venality.
Murdoch’s sins, you might say, are sins of encouraging a culture of corruption in two of his London-based tabloid newspapers: the defunct News of the World and The Sun. It should be said that Murdoch did not invent the culture of Britain’s tabloid press, but he encouraged it to lengths of excess that had not been dreamed of earlier.
Fleet Street — the collective name for British newspapers which derives from the street where they were once all located — has always been a place of excess. But things really turned white hot in the late 1950s and 1960s.
Television and radio were competing for entertainment value, but news was still the province of newspapers. The game was to shock the readers without depressing them. The publisher Lord Beaverbrook said during World War II of his Daily Express: “I want the readers to feel the sun is shining when they read the Express.”
When I arrived in Fleet Street, well after the war, the sun was still shining in the popular papers. And what better way to keep the sun shining than by exposing the foibles of the aristocracy, the Royal Family and, of course, film stars?
We, the denizens of Fleet Street, were modestly paid but were given essentially unlimited expense accounts to disport ourselves around the clubs and restaurants of London in search of the rich and famous at unguarded play. The culture was one of discover, speculate, elaborate and publish.
Reporters were pushed very hard to dig up the titillating, embellish it and present it as news. We descended on crime scenes, the sexually engaged and the overtly greedy.
Yet there were limits, unwritten but understood, especially pertaining to private grief and even the Royal Family. Infidelity from a vicar was reportable. Similarly rumored goings on by major politicians and national figures, less so.
But change was on its way in the shape of Rupert Murdoch, and in the growing force of television in British life. Murdoch trashed the barriers, such as they were. He started publishing pictures of bare-breasted girls in The Sun, and turned his tabloids from being newspapers that published gossip along with the news to gossip-only papers. They became vicious as well as tawdry.
Murdoch also turned his papers from leaning politically left-wing to being savagely right-wing. It worked.
The Sun and the News of the World started making enough money to finance Murdoch’s other ventures, including buying and building Fox News.
Murdoch established an even more irresponsible culture. There were no rules now: Hence the phone-tapping, police bribing and other sins that have brought Murdoch to his sorry state of being “unfit.” There was a new thuggery and vulgarity that had not existed.
Yet if Murdoch is unfit, so are his accusers. It is British politicians — including Margaret Thatcher, Tony Blair and David Cameron and their followers — who indulged Murdoch, courted him and encouraged the arrogance of Fleet Street.
British newspaper publishers have always considered it their right to have access to the prime minister and no holder of that office has sought to disillusion them. – For the Hearst-New York Times Syndicate
The Case for Fixing Up America
I’m asked with some frequency these days, what do I think the United States will look like in 25 years to 50 years? Underlying this question is a real concern that we’ve lost our way as a nation, that the best is behind us and a strong feeling that the generations to come won’t have it as good as we’ve had.
Actually, I think the United States will be fine. It’ll still be a world power, but not as dominant as it is today and was in the 20th century. I think we’ll still have one of the largest and most important economies in the world; that we’ll still be a powerhouse of invention; and that ourmovies, music and other entertainment forms will still dominate the globe.
American English will continue to be the international means of communication. Sorry Britain, there’s no license fee on language.
A rosy picture, eh? Not quite.
The second, and maybe the more important question, is what sort of country will the United States be to live in? This picture is less rosy.
First, we’re dividing into a country of the super rich and the burgeoning working poor living unpleasantly. The movement of quality manufacturing jobs in the auto and steel industries to the South tells part of that story. The high-wage jobs of Michigan and the unionized North — jobs that pay about $35 an hour — to the union-free auto plants and factories of the South, which pay $14 an hour, is a harbinger of the future. Can less be more?
If the United States is going to have told hold down its wages, then we should fix the living space; that means the infrastructure. It’s a mess and it’ll take decades to bring it up to the standards of much of the rest of the world.
We need better roads (less time in traffic), repaired bridges, sewers, water systems and public transportation. We also should fix the parks — state and national — and build pedestrian areas where we can enjoy the great natural beauty of our rivers and woodlands. London and Paris and Vienna make their rivers places of beauty and recreation. New York runs highways along its rivers — highways where it should have cafes. Los Angeles has enclosed its streams in concrete.
London has refurbished Brunel's masterpiece of design St. Pancras railway station to accommodate the new 200-mph trains that will whisk you to Paris in a little over two hours. Both the station and the trains are great achievements; achievements that can be enjoyed by traveler and visitor alike.
By contrast Union Station in Washington, D.C., a masterpiece in its day, is a mess. The tracks are inadequate. The station seating is inadequate, broken and mostly an afterthought. The restrooms are inadequate and dirty. The majesty of the station has been destroyed by tawdry retailers and half-finished repairs. Decay permeates the place — maybe to prepare the passengers for the disreputable taxis outside.
What an introduction to the capital of the free world. However, if you’ve just arrived on Amtrak, you might already be so dispirited you won't notice.
Likewise, the nation's schools need to be renovated. Leaky buildings seem more designed to prepare students for a lifetime of failure and decline than for a life of pride and accomplishment. “We make buildings and they make us,” Winston Churchill said.
The case for fixing the nation's infrastructure is compelling. But it does not compel in Congress. Congress is hell-bent to hurt the infrastructure with cost cutting-measures that will — as has happened in Britain and Spain — as likely as not add to the deficit rather than reducing it.
A more believable use of the government's resources might be to start fixing America by diverting some of the defense budget to sprucing up and repairing the nation, yielding results in a time frame of 25 to 50 years.
The story of another Churchill saying goes like this:
Churchill was walking in the garden of his beloved home, Chartwell, when he summoned the gardener and said, “I want you to plant an oak tree here.”
The gardener, looking to Churchill and seeing a man approaching 90, said, “But sir, it’ll take a hundred years to grow.”
“Well, you had better plant it now, hadn't you?” averred Churchill.
Quite so. The future awaits. – For the Hearst-New York Times Syndicate
CFS: One Disease and Its Costs
What would happen to health care if a million new patients with just one of many now incurable and largely untreated diseases flooded the system, relying on medicine that could cost $70,000?
It might happen. Actually, it’s more than desirable that it should happen.
In one instance, a million or more patients who suffer from the devastating, life-robbing disease known as Chronic Fatigue Syndrome (CFS), or myalgic encephalomyelitis, struggle through days of almost total incapacitation, disorientation, pain and despair, clinging to hope that science will rescue them. All that’s known is that like AIDS, it’s a disease of the immune system.
The horror of this affliction is almost indescribable. I’ve been writing and broadcasting about these patients for several years and never have I seen such extended suffering, lives hollowed out, every tomorrow to be feared, the slightest departure from strict routines of inactivity to be met with punishing suffering.
The mother of an afflicted teenager told me that for New Year, her daughter went out for amid celebration. That exertion cost her two weeks in bed.
My friend and colleague (we host a YouTube channel, mecfsalert), Deborah Waroff, a New York-based writer, has been afflicted for 23 years and has seen her life confiscated. Like other patients she lives in a prison of her body with painful memories of when she was well. The body hurts, the memory tortures. Sleep does not refresh and long hours in bed do not heal.
Sufferers, held together in their pain by the Internet, trade sad notes. Going the rounds now is Winston Churchill’s statement in old age his life was finished but not ended. One sufferer e-mails me that she prays every night that she won’t wake up in the morning.
Patients groups say suicide rates are high. Determining the morbidity rate is a challenge because sufferers die from opportunistic infections rather than from CFS. In this, and other ways, it resembles AIDS and diabetes.
So far, the burden has been carried more by families and loved ones than by the health care industry. This is because there is no diagnosis per se for CFS, and no cure.
Dr. Andreas Kogelnik of the Open Medicine Institute in Mountain View, Calif., says there are no “markers” for the disease. There is nothing in the blood, marrow or soft tissue that identifies the disease.
Therefore, diagnosing the disease is by elimination – a time-consuming undertaking that the present medical regime is ill-equipped to provide. “You can’t do much in 10 minutes,” Kolgelnik says, referring to average amount of time allotted to patients by doctors.
So this is a disease that, even without a cure, the medical establishment has already indicated that it cannot afford.
The matter of affordability, for example, has affected diagnosis and treatment severely in the United Kingdom. There the National Health Service, always struggling with budgets, has encouraged doctors to teat CFS as a psychosomatic condition related to depression. The patients hate this and only recently has the British Medical Research Council softened its position.
That other medical nostrum, diet and exercise, is favored in the UK, too, but not by patients. They write to me constantly pointing out that exercise is corporal punishment for them; a recipe for relapse.
With only under-funded research scattered across the country at clinics and universities, the picture is bleak. But there are two pinpricks of light: a Norwegian cancer drug, Rituxan, which has helped patients in Norway and Germany, and a drug that is still in clinical trials in the United States, Ampligen, which rebalances the immune system.
Even those who administer the drugs, like Dr. Derek Enlander in New York and Kogelnik in California, don’t hail them as panaceas but as hopeful pacesetters. Neither is available except to a few patients in trials. And cost? Ampligen costs about $25,000 for a year of treatment, and Rituxan comes in at a whopping $70,000.
A slew of other diseases await expensive cures. In the future health-care costs, no matter what the Supreme Court and the politicians do, are going to go up and up. To the sick and their families, any price is a small one.
For the Hearst-New York Times Syndicate.
Universal Health Care — It’s Addictive
Obama and Energy: What He Can and Can’t Do
Mass-Transit Enthusiasts: Get on the Bus
Even railroad fanatics like me have to admit that the future of passenger transportation by rail, particularly urban commuter rail, is pretty well frozen where it is. New rail – even light rail, an idealistic indulgence – is doomed by high costs, lack of appropriate track, and political squabbling.
New subways, the elegant way to get around a city, by going under it, are an almost impossible dream. The costs are too great in times of austerity, and the costs of maintenance can be prohibitive as a system ages.
Increasingly, the future appears to be the humble bus. Buses have low capital costs, are flexible, and can be adjusted to demand and population changes in ways trains cannot.
Spare the groaning: The buses are coming. And today's bus need not be yesterday's – noisy, smelly, and unreliable.
London, which has possibly the best transportation infrastructure in the world, with a huge rail network, is nonetheless betting on buses. It's deploying a new bus that is designed for the times and preserves some of the features that have made its buses emblematic of the city, like the two decks. And, yes, they are red.
The new London buses are a meeting of nostalgia with high-tech and environmental sensibility. London was busy phasing out its traditional buses in favor of articulated buses, which bend in the middle, when a controversial and eccentric Conservative journalist turned politician, Boris Johnson, declared that if he were elected mayor, he would save the old buses, or at least the concept of double-deck buses. He won the election and ideas were sought from the public.
The result is what the tabloids call the "Boris Bus." It's a high-tech beauty that meets many demands. It has two doors and two staircases, but it's so low that wheelchairs are easily accommodated.
They are designed to have conductors during rush hours and to be operated by drivers only at other times.
They use modern composite materials from the airline industry and are hybrids, with diesel engines and regenerative breaking. That has made way for the lowering of the bottom deck, increasing stability while reducing weight.
The initial reception of this high-tech scion of the old and loved London bus has been so enthusiastic that Johnson is talked about as a future Conservative prime minister – riding the bus to the highest office in the land.
Back to our buses. They, too, are getting better, but less dramatically so. Between Washington and New York, there's now thriving bus service with half a dozen competing firms offering WiFi, toilets, and many points of departure. The ticket price, about $20 each way, is a fraction of those for Amtrak and airlines.
These intercity buses are diesel-powered, but many cities are using natural-gas-powered buses. That might yet seal the deal for buses as the future of urban transportation, reducing the use of cars. America is awash in natural gas. It also has less environmental impact.
Buses are at their best when, as my wife pointed out in London once, they run like conveyors. Frequently, that means enough dedicated bus lanes.
The Obama administration would be well advised to launch a bus initiative with emphasis on better vehicles, à la London, and dedicated bus lanes. The solution to urban congestion may be in a high-speed, WiFi-equipped, natural-gas-powered bus. — For the Hearst-New York Times Syndicate
The Politicos Know for Sure Where the Oil Is
Lemuel Gulliver is back! You remember him – he’s the hero of “Gulliver’s Travels,” a satire written by Jonathan Swift, first published in 1726.
Many adventures befall Gulliver, but the one most remembered is that he's captured and pinned down with innumerable strings by the tiny Lilliputians. By their standards, he was a giant, but they tied him down so well that he was helpless.
That, according to those seeking the Republican presidential nomination, is the state of the U.S. energy industry – by energy, they mean oil and gas.
According to Newt Gingrich, who's echoed by frontrunner Mitt Romney and his two rivals, the oil and gas industries have been cruelly tied down by government, which imposes onerous environmental regulations and restricts drilling in the most hopeful parts of our ocean shelves and on federal lands.
If these lands and ocean sites were just opened to drilling, the Republican hopefuls argue, the United States would become the world’s greatest energy producer, as it was in the 1940s and 1950s. Drill, baby, drill and a gigantic cornucopia of energy awaits; energy for the United States and the world.
Jack Gerard, president and CEO of the American Petroleum Institute, the take-no-prisoners trade association that represents nearly 500 oil and gas companies, is a vocal advocate of more drilling in more places. He's a Gulliver theorist.
From Republicans and the oil industry, this is a new optimism born of an old idea. The old idea is that if you drill enough holes in enough places, oil will be abundant.
That optimism has existed more in the fringe world of wildcatting than it did in the big oil companies, which knew that there were limited reserves of recoverable oil and gas in the United States. They also knew that once a reserve is in production, you can calculate the point at which it will decline; as has happened with the North Slope of Alaska, where less than half the 2 million barrels a day produced at its peak is flowing today.
Then came the new technologies, largely developed by the despised government. Now in full deployment, these technologies have incontrovertibly changed expectations for natural gas but their impact on oil is debatable.
The first of these is 3-D seismic mapping. Advanced physics enables the companies to determine very accurately how much hydrocarbon a particular formation underground might contain. Gone are the days when the hard-drinking wildcatter followed his gut and mysterious patterns in the tumbleweed.
Next, is the hole itself. At one time, a well was a well – drilled straight down, looking for a pool of oil, a cavern of gas or both. Fracturing – the process in which water, chemicals and other substances are injected down the hole to break up rock in proximity to the hole – has been used to release more of the good stuff. With time fracturing, also called “fracking,” has become more sophisticated.
What has made the euphoria of the politicians and oil lobbyists possible is the miracle of horizontal drilling, which allows as many as eight holes to be spread out for miles from a single shaft. This and better fracking has changed the prospects for gas out of all hope, and has somewhat improved oil expectations.
Much of the enthusiasm for new drilling has come from the success of the new technologies in North Dakota, which has overnight become the the fourth-largest oil-producing state in the Union. But beware. This isn’t Texas circa 1945.
Oil from North Dakota's Bakken Field isn’t cheap. Its “lifting cost” is among the most expensive there is: It costs about $50 a barrel to bring North Dakota oil to the surface, compared with about $15 in Russia and Saudi Arabia. Is it oil or incense?
API’s Gerard told reporters in a telephone conversation, designed to preempt President Obama’s “all of the above” energy recommendations, that technology in its inevitable advance would keep the oil flowing for many generations.
Only the government, in Gerard’s view, stands between the American people and abundant oil.
However, fields that have peaked – like the North Slope and much of Texas, Louisiana and the North Sea – have seen declining production and no technology has been enough to revive them. All the oil has been removed. Gone, baby, gone.
More drilling has already improved domestic oil production. But will unfettered drilling really make a new Saudi Arabia of the. United States? Can the resource base stand the exploitation? Can Gulliver actually stand up?
The next generation of technology won’t put more oil in the ground. – For the Hearst-New York Times Syndicate
What Makes a President: Fallacies about Business, Markets
Come walk in the garden where the fallacies grow. Today, we’ll examine two varieties that are enjoying strong growth: the businessus presidentus and themarketus perfectus.
The first fallacy (businessus presidentus) is that a business person, presumably Mitt Romney, is better equipped to run the government than a professional politician. This is an idea as old as anything in the garden. The supposition is that business people are organized, understand the economy and are less prone make decisions based on politics. It also suggests that as a species they are innovative, strategic thinkers and have an acquired understanding people.
Well let's see: The purpose of business is business; in short, to make money. Romantics of the right like to credit it with virtues it doesn't have and doesn't want.
Business is about the numbers, and making the numbers. It’s not intrinsically wise, nor is it necessarily more inventive than government.
It’s true that business innovates; but only when it’s forced to by competition and disruptive technologies. Coca-Cola was supposed to be the smartest company on the planet until it introduced New Coke and had to beat an ignominious retreat. Many old and new businesses simply can't change fast enough. We’ve seen the demise of Kodak, Polaroid and Borders and the emasculation of Western Union. The American car companies had to be rescued — especially General Motors which was a model of management structure, celebrated by Peter Drucker, until its management choked the life out of it.
If Romney has the skills to be a good president, he didn't learn them in the wheeler-dealer world of investment banking – Remember Lehman? – but rather in the statehouse in Boston. By and large, business success prepares a man or a woman for retirement and maybe volunteer work, not political office.
The Washington trade associations periodically decide what they need is “kick-ass” business person. In time, they find someone who knows the ways of Congress to be a lot more effective than someone who can read a balance sheet.
Then there’s the workforce difference. Management controls the workforce in private industry, but the workforce often controls the management in government. Only the military is exempt from this rule. Presidents down to junior political operatives chafe under this reality.
The second fallacy (marketus perfectus) is about markets being next to godliness. Markets are an efficient way to distribute goods and services at affordable prices. But they are as cruel as they are efficient. They exterminate and reward.
It’s a heresy in conservative circles to point out that national interest and market interest do not always coincide. But among treasured companies that have been saved by government intervention in the market are Harley-Davidson (price barriers), Lockheed (loans), Chrysler (twice with loans, and later part of the great Detroit bailout).
It can be argued that some of our current economic woes are the market doing what it does best: seeking the lowest-cost, competent production. It was that which lead to the export of our manufacturing. Companies flooded China because they got the three things they sought and which they sought to satisfy the marketplace: low wages, talent and reliability. They didn’t flood to other cheap-labor places like sub-Saharan Africa, but to China which knew how to please.
People who have really changed the political landscape in Washington have been professional politicians, or those who have embraced politics as a second career, like Ronald Reagan. Richard Nixon changed it not by his misdeeds, but by creating the Office of Management and Budget from its predecessor the Bureau of the Budget. In so doing, he increased the power of the presidency and downgraded the Cabinet. And the consummate Washington insider, Lyndon Johnson, enhanced the president's war-making prerogatives — even though it would’ve been better for him and the nation if he hadn't.
If Romney makes it to the Oval Office, he'll have Massachusetts on his mind not Bain & Co. You won't get the garden to bloom with the wrong seed. –For the Hearst-New York Times syndicate.
The Technological Revolution So Great We Forget It
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