Those of you who are able to spend time with your fathers today are blessed. The presence, or lack thereof, of a father in your life is profound. Take the time to honor your father and celebrate Fathers Day.
My father's untimely death at the age of 54 profoundly affected the course of my life. I was working at a job I hated in a place I hated. I was assistant general manager of J. M. Fields Department Store in Parsippany, NJ. My dad, after being laid off as what would now be called CFO of Industrial Machine Service, a custom machine manufacturer, had started his own bookkeeping service. After six years, he had computerized the business and grown a client list of 34 businesses. Plus, he did personal taxes for the owners and was a certified tax practicioner licensed to represent clients before the IRS. His services also included payroll service. He was quite ahead of his time for 1974.
The last time I was home, he had brought up the subject of my joining the family business. He had grown the business to the point it would support expansion. Also, since a bookkeeper / business consultant needs to know everything about a business, he thought it would be easier for me to gain their trust since I would be there for the long haul. We had pretty much decided to do this later in the year after tax season was over.
Unfortunately, he died on April 28th of that year. He had completed the quarterly reports for all his clients gone home. He suffered a massive heart attack and died before he got to the hospital.
My mother wanted me to take over the business. After a couple frank discussions, I convinced her that with only 2 years of accounting in college and not knowing his clients, I was not prepared to run this business and that the best thing was to sell the business, which we did, to a pair of CPA's who were looking to go out on their own. The money was put aside for my mother's retirement.
I went on to work for Binswanger Glass for almost 37 years. No regrets. I've had a good career with a fine company. But, at a time like this, I sometimes wonder what might have been. For one thing, I would not be here and I would not have all the great friends I have here.
But, I will always be thankful for the influence my father had on me. He has influenced my principles, my politics and my work ethic. If not for him, I would not be the person I am now.
Sunday, June 19, 2011
Sunday, February 20, 2011
The Department of NO Energy
Following the second Arab Oil Embargo in 1976, the Department of Energy was founded in 1977. The primary goal of the DOE was to ensure a that the United States would never again be at the mercy of a foreign power for the energy necessary to power the US economy. This would be a 3 prong effort:
1. Develop the energy technologies for the future
2. The expansion of nuclear energy and disposal of radioactive waste.
3. Ensure the domestic flow of energy
Somewhere along the way, something went wrong. Billions of dollars have been spent over 33 years and none of these goals have been accomplished.
1. There has been some development in new energy, but nothing yet that can replace fossil fuels. Wind, solar and waves can produce a small amount of power, but will never be able to be a primary supplier. Ethanol has been a bust. It takes more energy to grow the corn, distill it and then transport it to the end user than it provides. It also raises the price of corn and thereby inflates the cost of food.
2. The last nuclear plant built in the United States, the River Bend Plant in Louisiana was started in 1977. Coincidentally (?) the very year the DOE was formed. Also, the Yucca Flats facility for the storage of nuclear waste was scrapped after more billions of dollars. The only form of electricity that costs less than nuclear to produce is hydro, but there has been no political will to approve more than a token number of new nuclear plants. The US only obtains 20% of its power from nuclear compared to 88% in France.
3. There can be no case made that the DOE has insured the domestic flow of energy. In fact, it seems that they have fought all new uses of fossil fuels and nuclear since the onset. Under Clinton, the Department of the Interior grabbed up all the oil shale properties in the west and turned them into protected wilderness. They also banned drilling for oil in the Anwar area of Alaska, even though new drilling tecnologies have a very small footprint. They have banned all offshore drilling off the east and west coasts and the coast of Florida. The Department of the Interior and its Secretary Ken Salazar are currently in contempt of court for sitting on permits to drill for oil in the Gulf of Mexico.
In the meantime, there is instability in the Arabian (Persian) Gulf and the price of gasoline is ticking higher every day. This could not be a worse time to have an energy problem. The economy is shakily trying to get back on its feet and this could be a body blow.
Congress needs to take a new look at what the goals of the DOE should be and get them back on track. So far, this has been a horrible failure.
1. Develop the energy technologies for the future
2. The expansion of nuclear energy and disposal of radioactive waste.
3. Ensure the domestic flow of energy
Somewhere along the way, something went wrong. Billions of dollars have been spent over 33 years and none of these goals have been accomplished.
1. There has been some development in new energy, but nothing yet that can replace fossil fuels. Wind, solar and waves can produce a small amount of power, but will never be able to be a primary supplier. Ethanol has been a bust. It takes more energy to grow the corn, distill it and then transport it to the end user than it provides. It also raises the price of corn and thereby inflates the cost of food.
2. The last nuclear plant built in the United States, the River Bend Plant in Louisiana was started in 1977. Coincidentally (?) the very year the DOE was formed. Also, the Yucca Flats facility for the storage of nuclear waste was scrapped after more billions of dollars. The only form of electricity that costs less than nuclear to produce is hydro, but there has been no political will to approve more than a token number of new nuclear plants. The US only obtains 20% of its power from nuclear compared to 88% in France.
3. There can be no case made that the DOE has insured the domestic flow of energy. In fact, it seems that they have fought all new uses of fossil fuels and nuclear since the onset. Under Clinton, the Department of the Interior grabbed up all the oil shale properties in the west and turned them into protected wilderness. They also banned drilling for oil in the Anwar area of Alaska, even though new drilling tecnologies have a very small footprint. They have banned all offshore drilling off the east and west coasts and the coast of Florida. The Department of the Interior and its Secretary Ken Salazar are currently in contempt of court for sitting on permits to drill for oil in the Gulf of Mexico.
In the meantime, there is instability in the Arabian (Persian) Gulf and the price of gasoline is ticking higher every day. This could not be a worse time to have an energy problem. The economy is shakily trying to get back on its feet and this could be a body blow.
Congress needs to take a new look at what the goals of the DOE should be and get them back on track. So far, this has been a horrible failure.
On Air Fresheners -
What has happened to "Vanilla Essence?" I've looked everywhere for it.
OK, my kitty litter box is kept in the closet under the stairs. My aging cat has forgotten that she is supposed to cover it up after going and I can come home to an unpleasant surprise. The vanilla essence scented oil is perfect. I always come home to a pleasant aroma like something is cooking in the kitchen.
But, I can't find it anymore. I've been to Walgreens, Harris Teeter and Lowes Foods to no avail. I don't want florals. I don't want the smell of water (neither mountain nor clean.) And, the one that everyone stocks is clean linen. Why would I want my house to smell like laundry? If I did, I could just go around throwing Bounce sheets behind all the furniture. What? Some of you do that???
I WANT MY VANILLA ESSENCE!
OK, my kitty litter box is kept in the closet under the stairs. My aging cat has forgotten that she is supposed to cover it up after going and I can come home to an unpleasant surprise. The vanilla essence scented oil is perfect. I always come home to a pleasant aroma like something is cooking in the kitchen.
But, I can't find it anymore. I've been to Walgreens, Harris Teeter and Lowes Foods to no avail. I don't want florals. I don't want the smell of water (neither mountain nor clean.) And, the one that everyone stocks is clean linen. Why would I want my house to smell like laundry? If I did, I could just go around throwing Bounce sheets behind all the furniture. What? Some of you do that???
I WANT MY VANILLA ESSENCE!
Saturday, January 22, 2011
SC Supreme Court Stikes Again
The South Carolina Supreme Court has made a few disturbing rulings over the past several years that have been detrimental to small businesses in the construction industry. Here is an alert just received from the American Subcontractors Association of the Carolinas. If you think your Comprehensive General Liability Insurance protects you from damages due to faulty installation, you could be wrong.
For your Information:
The SC Supreme Court recently rendered a decision with Crossmann Communities vs. Harleyville that will have a major impact on general liability insurance coverage.
At issue in this case was whether a typical Commercial General Liability insurance policy provides insurance coverage for damages arising from faulty workmanship or defective construction. The SC Supreme Court held that any damages which are the “natural and probable” result of faulty or defective workmanship are NOT covered by CGL Policy. Applying that holding to the CGL policy in the Crossmann Communities case, the SC Supreme Court held that damages relating to water intrusion, which occurred because of improperly installed siding, are not covered by insurance since water intrusion is a natural and probable result of faulty or defective siding work. This is true whether or not the developer or contractor or subcontractor was aware of the faulty work or the actual water intrusion.
This decision very likely will have a major impact on your business, and your exposure to risk, since it applies to all similar CGL policies and applies whether the faulty or defective work is done now, in the future, and even in the past. In other words, if you, or a contractor or subcontractor you employed, performed faulty or defective work, you are not covered by a typical CGL policy for the “natural and probable” damages caused by that work, whatever those damages may be (this opinion is not limited to cases involving water intrusion). Obviously, as you seek new work, you should be aware that, in light of Crossmann Communities, you may not have any coverage for damages caused by faulty or defective work performed by you or someone you employ. You should also expect owners who are knowledgeable about the Crossmann Communities case to want to discuss their recourse in the event of building problems, now or in the future. Note: This summary was provided by the CTHBA Watchdog Report.
ASAC, in conjunction with the MCASC, is filing an Amicus Brief in Crossmann Communities case.
What this means is if you are a subcontractor, you better make sure your job is properly installed or you could be paying the damages, your insurance won't protect you. For a general contractor or owner, you better make sure your contractors are well financed as their insurance policy you made them furnish you may not protect you.
For your Information:
The SC Supreme Court recently rendered a decision with Crossmann Communities vs. Harleyville that will have a major impact on general liability insurance coverage.
At issue in this case was whether a typical Commercial General Liability insurance policy provides insurance coverage for damages arising from faulty workmanship or defective construction. The SC Supreme Court held that any damages which are the “natural and probable” result of faulty or defective workmanship are NOT covered by CGL Policy. Applying that holding to the CGL policy in the Crossmann Communities case, the SC Supreme Court held that damages relating to water intrusion, which occurred because of improperly installed siding, are not covered by insurance since water intrusion is a natural and probable result of faulty or defective siding work. This is true whether or not the developer or contractor or subcontractor was aware of the faulty work or the actual water intrusion.
This decision very likely will have a major impact on your business, and your exposure to risk, since it applies to all similar CGL policies and applies whether the faulty or defective work is done now, in the future, and even in the past. In other words, if you, or a contractor or subcontractor you employed, performed faulty or defective work, you are not covered by a typical CGL policy for the “natural and probable” damages caused by that work, whatever those damages may be (this opinion is not limited to cases involving water intrusion). Obviously, as you seek new work, you should be aware that, in light of Crossmann Communities, you may not have any coverage for damages caused by faulty or defective work performed by you or someone you employ. You should also expect owners who are knowledgeable about the Crossmann Communities case to want to discuss their recourse in the event of building problems, now or in the future. Note: This summary was provided by the CTHBA Watchdog Report.
ASAC, in conjunction with the MCASC, is filing an Amicus Brief in Crossmann Communities case.
What this means is if you are a subcontractor, you better make sure your job is properly installed or you could be paying the damages, your insurance won't protect you. For a general contractor or owner, you better make sure your contractors are well financed as their insurance policy you made them furnish you may not protect you.
Friday, December 17, 2010
On Extending Unemployment Compensation
I am opposed to the 13 month extension of unemployment benefits that has just been passed by Congress. Am I a Grinch? I don’t think so. Am I heartless? People who know me know I am very generous. What I am against are benefits that last so long that people adapt to living on the dole or that can easily be defrauded.
Let me give you an example:
In late 2008, I terminated two employees for cause; one for being legally drunk on the job and another for falsifying time records. Both were violations of printed company policy. The State ruled that I could legally fire them, but that their actions were not serious enough to deny them unemployment benefits. Nearly two years later, they are both still collecting unemployment although they are doing work in competition with me while collecting unemployment. Now that their benefits are close to running out, I was told by a competitor that one of them has just applied for a job. What they are doing is defrauding the system, but the state has cut back on the number of investigators and is not able to pursue this issue.
Those of you who are business owners; when was the last time you had someone ask you to sign their sheet or card showing they applied for a job? It has been several years for me. How does the Employment Security Commission know if someone receiving Unemployment Compensation is actively seeking work or is working on the side and not reporting it?
Also, continuing benefits that exceed minimum wage, what incentive is it to accept a lower paying job? A recent article in the paper said that if you don’t have a job a lot of businesses won’t hire you; they are afraid you could be just looking for a temporary job to re-set your unemployment.
If we are going to continue these generous benefits, we need to tie them to some controls or follow up to prevent fraud or re-training to work in a field that is hiring. Payouts without strings have got to stop.
Let me give you an example:
In late 2008, I terminated two employees for cause; one for being legally drunk on the job and another for falsifying time records. Both were violations of printed company policy. The State ruled that I could legally fire them, but that their actions were not serious enough to deny them unemployment benefits. Nearly two years later, they are both still collecting unemployment although they are doing work in competition with me while collecting unemployment. Now that their benefits are close to running out, I was told by a competitor that one of them has just applied for a job. What they are doing is defrauding the system, but the state has cut back on the number of investigators and is not able to pursue this issue.
Those of you who are business owners; when was the last time you had someone ask you to sign their sheet or card showing they applied for a job? It has been several years for me. How does the Employment Security Commission know if someone receiving Unemployment Compensation is actively seeking work or is working on the side and not reporting it?
Also, continuing benefits that exceed minimum wage, what incentive is it to accept a lower paying job? A recent article in the paper said that if you don’t have a job a lot of businesses won’t hire you; they are afraid you could be just looking for a temporary job to re-set your unemployment.
If we are going to continue these generous benefits, we need to tie them to some controls or follow up to prevent fraud or re-training to work in a field that is hiring. Payouts without strings have got to stop.
Sunday, December 5, 2010
The Iron Lady's Reign is Ending
What concerned me most Democrats controlling both houses of Congress in 2008 along with a Democratic President was their ability to push through a progressive/socialistic agenda without compromise and that concern proved true. For the past two years, they have voted down virtually all Republican amendments in committee or taken bills directly to the floor where they could be passed without amendment with a super-majority. On the health care bill, they debated one version for months and then at 3:00 in the morning of the vote they withdrew the bill and replaced it with a 2,000+ page bill that was voted on without reading.
The Democrats even ran the country for the past year without a budget. They just brought up these massive bills as emergency measures and passed them along with a “continuing resolution” to provide the spending authorization for them. They can’t be accused of overspending the budget, because there wasn’t one.
The main perpetrator of this abomination was Nancy Pelosi. They called Margaret Thatcher the “Iron Lady” because of the way she controlled the Tory Party in Great Britain with iron fisted control. Well, Margaret has to pass that iron gavel on to Nancy. She was able to maintain virtual domination over a party that has a lot of diversity. Those that disagreed were bullied into supporting the bills by threats of pulling spending from their districts or running an opponent in the 2010 election. And now, the Democrats are even more hard line than before because the more moderate Democrats have been purged.
And now, this weekend, the progressives had their little show. They brought up the continuation of the Bush era tax cuts the way they want with no amendments; a continuation for up to $250k and tax increase over $250k. The Senate, as expected, shot it down. This was as expected. Most commentators believe a deal is in place to continue the tax cuts for all in return for an extension of unemployment benefits (another issue) and that this weekend’s exercise was just a show for the progressive base so that they can continue their class warfare agenda, for example, Republicans favor the rich.
I’m looking forward to the new year and a little gridlock. At least, the two sides will have to talk to get something done and we might see things become a little more reasonable.
The Democrats even ran the country for the past year without a budget. They just brought up these massive bills as emergency measures and passed them along with a “continuing resolution” to provide the spending authorization for them. They can’t be accused of overspending the budget, because there wasn’t one.
The main perpetrator of this abomination was Nancy Pelosi. They called Margaret Thatcher the “Iron Lady” because of the way she controlled the Tory Party in Great Britain with iron fisted control. Well, Margaret has to pass that iron gavel on to Nancy. She was able to maintain virtual domination over a party that has a lot of diversity. Those that disagreed were bullied into supporting the bills by threats of pulling spending from their districts or running an opponent in the 2010 election. And now, the Democrats are even more hard line than before because the more moderate Democrats have been purged.
And now, this weekend, the progressives had their little show. They brought up the continuation of the Bush era tax cuts the way they want with no amendments; a continuation for up to $250k and tax increase over $250k. The Senate, as expected, shot it down. This was as expected. Most commentators believe a deal is in place to continue the tax cuts for all in return for an extension of unemployment benefits (another issue) and that this weekend’s exercise was just a show for the progressive base so that they can continue their class warfare agenda, for example, Republicans favor the rich.
I’m looking forward to the new year and a little gridlock. At least, the two sides will have to talk to get something done and we might see things become a little more reasonable.
Sunday, October 10, 2010
My Daddy Was a Democrat
I hear that a lot lately. I feel strongly that 100 years is long enough for one party to have controlled the State of North Carolina. Sure, there have been a few Republican governors, and the House was controlled by Republicans for a couple years, but by and large the Democrats have controlled this state since the Democrats took control of the NC Senate in 1898.
The Democrats control the agenda in lawmaking, they control where highway money is spent. For example, why is there an interstate loop around Fayetteville before Charlotte’s loop is complete? It’s because of the arcane formula that allocates money equally by district, not by where the growth is.
My daddy was a Democrat, too. He was a conservative Democrat. In Virginia, it was the party of Harry F Byrd, Jr. who left the Democratic Party and became an independent. It was the party of Mills Godwin who’s first term as Governor of Virginia was as a Democrat and his second, 4 years later, was as a Republican. My daddy did not willingly leave the Democratic Party, it left him. The party was taken over by progressives. (I don’t say liberal, because the progressives have co-opted that label as well. My beliefs were considered liberal in 1970.) The Virginia Democratic Party became the party of Governor Jerry (“If it moves, tax it!) Balliles. They tried, unsuccessfully, to remove the state constitutional requirement to balance the budget so taxes soared to support their social programs.
So, my daddy was born a Democrat, but died as a proud Republican. He changed with Goldwater (against Lyndon Johnson, the most progressive president since FDR). I changed with Ronald Reagan who I consider the greatest President of my lifetime, a strong proponent of individual responsibility and opportunity.
As someone who has basically sat out politics for a dozen years because I did not see a chance of change, I now see that opportunity for change. Everyone please check out the candidates. What do they stand for? Don’t just vote the way your daddy did.
The Democrats control the agenda in lawmaking, they control where highway money is spent. For example, why is there an interstate loop around Fayetteville before Charlotte’s loop is complete? It’s because of the arcane formula that allocates money equally by district, not by where the growth is.
My daddy was a Democrat, too. He was a conservative Democrat. In Virginia, it was the party of Harry F Byrd, Jr. who left the Democratic Party and became an independent. It was the party of Mills Godwin who’s first term as Governor of Virginia was as a Democrat and his second, 4 years later, was as a Republican. My daddy did not willingly leave the Democratic Party, it left him. The party was taken over by progressives. (I don’t say liberal, because the progressives have co-opted that label as well. My beliefs were considered liberal in 1970.) The Virginia Democratic Party became the party of Governor Jerry (“If it moves, tax it!) Balliles. They tried, unsuccessfully, to remove the state constitutional requirement to balance the budget so taxes soared to support their social programs.
So, my daddy was born a Democrat, but died as a proud Republican. He changed with Goldwater (against Lyndon Johnson, the most progressive president since FDR). I changed with Ronald Reagan who I consider the greatest President of my lifetime, a strong proponent of individual responsibility and opportunity.
As someone who has basically sat out politics for a dozen years because I did not see a chance of change, I now see that opportunity for change. Everyone please check out the candidates. What do they stand for? Don’t just vote the way your daddy did.
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