New America in California
 

Articles

Recent New America-authored articles, op-eds and books on this topic are featured below.

The GOP and the Perils of Populism

If Barack Obama wins the presidency next month, Republican strategists probably won't waste too much time deconstructing the pros and cons of John McCain's candidacy. McCain is clearly a figure of the past, and that's most likely where he will remain. Sarah Palin's vice presidential candidacy, on the other hand, could haunt the party for some time. Beyond the excitement and attention she garnered in her first two weeks on the stump, Palin hasn't done much to help McCain argue, as he did in… more

Wanted: A New State Bill of Rights

The California Constitution is now more than five times as long as the U.S. Constitution. After a century of amendments and initiatives, it runs more than 150 pages.

California's government is so dysfunctional that the Bay Area Council, a business-backed public policy group, and other good-government types want to call a convention to draw up a new constitution. Good luck! Reforming such a monster is likely to spark resistance from Californians who worry they might lose some of the document's many, many protections, such as tax regulations for… more

Joe Mathews | October 12, 2008 | San Francisco Chronicle

Asking the Right God Question

Forget Bill Maher, Christopher Hitchens, Richard Dawkins and Sam Harris. These atheists du jour have nothing on the most famous anti-theist of all time. Good old Karl Marx is still the most eloquent and thoughtful nonbeliever, and his "religion is the opium of the masses" is still the best one-liner in the business.

But as famous as that zinger is, it's too bad that most people have never read the sentences that come before and after it. Marx was a whole lot more sympathetic to religious… more

Gregory Rodriguez | October 6, 2008 | Los Angeles Times

Let the Citizens Gather to Decide on State Reforms

All reform proposals for making California government more representative and responsive face the same obstacle: Entrenched interests, including lawmakers, who benefit from the status quo.

The best means for overcoming those interests is a citizens assembly, a body of approximately 160 average citizens -- randomly selected like a jury pool to ensure diversity and impartiality -- empowered to formally propose electoral reforms via a statewide referendum to their fellow voters.

The citizens assembly members study political reform recommendations for nine months, listening to experts and holding public hearings.… more

Steven Hill | September 28, 2008 | The Sacramento Bee

Prisoner of the Heart

Twenty-one years ago, Daisy Benson brought a gun to an argument. She says she didn’t mean to shoot, and that may be true, but you bring a gun to an argument, a lot can go wrong. Daisy was convicted of murder, given 15 to life, and… more

Douglas McGray | September 27, 2008 | This American Life

The Financial Crisis: What Drucker Would Have Said

Peter Drucker didn't have a whole lot of nice things to say about those on Wall Street, at one point likening them to "Balkan peasants stealing each other's sheep."

Given the magnitude of the latest crisis to grip Fannie Mae, Freddie Mac, American International Group, Lehman Brothers, and their friends, one can only imagine what kind of acid analogy he might have used today.

Or perhaps he would have simply said, "I told you so." After all, so much of the trouble that has befallen… more

Rick Wartzman | September 26, 2008 | BusinessWeek

California's Political Environment May Prove Too Toxic for Green Energy Propositions

It would seem that measures promoting renewable energy and alternative fuels would be shoo-ins here where gas prices are among the nation's highest. Two thirds of Californians polled say they want their state to be a leader in advancing technologies that reduce pollution and combat climate change.

But a pair of ambitious ballot initiatives--Proposition 7 (aka "Big Solar") and Proposition 10 ("Big Natural Gas")--designed to do just that appear to be in trouble because of growing fiscal concerns. Prop 7 would require utilities to procure half of… more

Joe Mathews | September 24, 2008 | Scientific American

China's Robber-Baron Ways

Only a short time after China's magnificent Olympic coming-out party, the land of Mao's successors found itself making less celebratory news.

"Tainted Milk Formula Sickens Thousands of Chinese Infants" read one of many recent headlines. Twenty-two companies that produce or distribute milk powder had been secretly adding melamine, normally used for making plastics and glue, into milk powder, making thousands of infants sick and causing several deaths.

It is one of the puzzling questions about China: How can a country that organized such a splendid Olympic splash be the same country… more

Steven Hill | September 23, 2008 | International Herald Tribune

Will There Be Powdered Wigs?

California's elites are talking, and here's what they're saying: this governor can't get things done, the legislature is hopeless, the entire state government is dysfunctional. (OK, just because they're elites, they're not wrong. These are Western Elites, not the dreaded Eastern Elites who are being so, so, so unfair to Sarah Palin). The you know what has hit the fan. The only way to fix this is top-to-bottom reform.

So let's have a constitutional convention.

What does your blogger think? Put the convention in some place nice (Monterey,… more

Joe Mathews | September 19, 2008 | Fox and Hounds Daily

The Joneses and the Joads

After storms ravaged Iowa last summer, devastation wasn't the only thing that people found amid the flood waters. Scores of out-of-work electricians from Michigan, hard hit by auto industry cutbacks, spied opportunity. Trekking hundreds of miles from home, where the unemployment rate of 8.5% is the highest in the U.S., they were eager to scoop up jobs rewiring Cedar Rapids -- even if it meant sleeping in a tent for weeks on end.

To some observers, the desperate scene evoked an unmistakable image. "The Joads leaving… more

Rick Wartzman | September 16, 2008 | Los Angeles Times

Put a Cap on CEO Pay

For a guy whose astute counsel helped to make so many CEOs rich, Peter Drucker had an intense loathing of exorbitant executive salaries.

He hated high CEO pay on every level: what it said about the individual as a leader, how it undermined the smooth functioning of the organization, and the way it tore at the fabric of society as a whole.

Drucker's strong feelings on the subject—he once termed sky-high CEO compensation "a serious disaster"—are well worth revisiting in light of the news that… more

Rick Wartzman | September 12, 2008 | BusinessWeek

2,126 'Buts,' and 55 'Reagans'

With the arrival on the scene of a strange Alaskan who seems willing to say anything, I find myself looking in strange places for solace. News sites don't help, nor do blogs. They offer the reverse of being haunted by a relationship you once had: being haunted by a future relationship you don't want to have. I'm being forced to get to know someone whom I less and less enjoy knowing. My latest attempt to escape the northern chill was spent surfing a site called more

T.A. Frank | September 10, 2008 | The New Republic

Schwarzenegger's Recall Gamble

California's prison guards union, angry about years of contract and other battles with the state government, announced a petition drive Monday to recall Gov. Arnold Schwarzenegger. The governor's initial response was to denounce the effort as a threat designed to secure the guards an unreasonable pay increase. "The state should not spend more money than we take in, and their intimidation tactics will not make me change my mind whatsoever, because I happen to not represent the [guards union]," he said. "I represent the… more

Joe Mathews | September 9, 2008 | Los Angeles Times

We Love 'Em Just the Way They Are

For all her talents and accomplishments, it is clear that Sarah Palin became the Republican vice presidential candidate more on the merits of who she is and where she came from -- an identity that is partly real and surely carefully constructed -- rather than on what she has done or promises to do. The same can be said to a lesser extent for the other hit persona of the season, Barack Obama -- at the least, he ran his own successful campaign for the… more

Gregory Rodriguez | September 8, 2008 | Los Angeles Times

China and the Long Road Ahead

During the Olympics, China showed the world that it can throw a heck of a coming out party. But traveling here afterward, one sees the many complexities and challenges facing this vast and ancient land. 

Especially in the rural areas--where most people still live--the impressive economic rise of China has penetrated only superficially. True, the Communist Party, which still runs nearly everything, brought electricity and other development here in the early 1980s. But while some appliances like television and telephones are increasingly common, indoor plumbing, electric ovens and… more

Steven Hill | September 6, 2008 | The World Policy Blog

Gut Reactions

For more than a hundred million years, termites have lived in obscurity, noticed only by the occasional hungry anteater or, more recently, by dismayed home­owners. Other social insects, such as bees and ants, are celebrated for their industriousness and engineering feats, but popular culture has not gotten around to cheering on termites for theirs -- even though they build mounds as tall as 20 feet, which may be oriented north-south as accurately as if plotted with a compass, in order to maximize heat from the sun. The… more

Obscene In the Extreme

Obscene_in_the_Extreme_thumbnail.jpg

Few books have caused as big a stir as John Steinbeck’s The Grapes of Wrath, when it was published in April 1939. By May, it was the nation’s number one bestseller, but in Kern County, California -- the Joads’ newfound home -- the book was burned publicly and banned from library shelves. Obscene in the Extreme tells the remarkable story behind this fit of censorship.

When W. B. “Bill” Camp, a giant cotton and potato grower, presided over its burning in… more

Rick Wartzman | September 2008

America's 'Identity' Blind Spot

As a nation and as individuals, we tend to view the world through the prism of our own experiences. Over the last few weeks, Russians, Georgians, Abkhazians and South Ossetians have reminded us that ethnic nationalism and secessionism are on the rise around the globe. I worry that the American experience leaves the United States and its citizens unprepared to confront it. Not long ago, I had dinner with a conservative media figure who seemed perplexed that I'm a student of "identity." "What made… more

Gregory Rodriguez | September 1, 2008 | Los Angeles Times

Organizations Need Structure and Flexibility

There is certainly no shortage of management lessons to be gleaned from Michael Phelps's record-shattering performance at the Beijing Olympics--the importance of setting firm objectives and staying sharply focused perhaps chief among them.

Nevertheless, I suspect that Peter Drucker would have been more intrigued by the blows suffered in the boxing ring than by the gold gathered in the swimming pool. It was there, in the square circle, that the U.S. turned in its worst-ever showing, winning but a single bronze medal and sending disheartened fans scurrying… more

Rick Wartzman | August 29, 2008 | BusinessWeek

Big Mac Politics

Don't do it. Don't tune in to this year's political conventions. For two decades, Americans have been wising up and increasingly tuning out those quadrennial made-for-television pageants that pass for participatory democracy. In 1976, roughly 22 million people watched Jimmy Carter receive his party's nomination. By contrast, four years ago, only 16 million viewers enjoyed the high jinks at the GOP convention. Over the years, declining interest has persuaded broadcast networks to scale back their coverage, and I think a lot of us suspect we… more

Gregory Rodriguez | August 25, 2008 | Los Angeles Times

California's Ballot Billions

There's little chance that the state budget eventually passed in Sacramento will actually rid California of its stubborn $15.2-billion deficit. But in the improbable event that the Legislature and governor balance the budget without resorting to such gimmicks as raiding other accounts, enjoy the moment. In just 10 weeks, California voters will likely throw it out of whack again. California has two budgets. One is passed by lawmakers. The other is improvised at the ballot box. The state's Constitution requires that the budget put together in Sacramento… more

Mark Paul | August 21, 2008 | Los Angeles Times

A Middle Road in Azerbaijan

There's probably no country in the world watching the Russia-Georgia conflict more intently than this small, energy-rich nation to the south and east of the turmoil. It too leans toward the West. Its oil runs through the pipeline that crosses Georgia. And it too wants to know how far Russia will go to keep its former vassal states within its sphere of influence. Azerbaijan was one of the first Soviet republics to win independence. It's a rare secular Muslim nation… more

Gregory Rodriguez | August 18, 2008 | Los Angeles Times

Why Monterey Would Be a Cool Capital

California's elected leaders are sweating out another summer of budget stalemate. Temporary state workers are hot under the collar after losing their jobs, and the permanent employees may see their paychecks cut. Commentators are heatedly blasting the lack of a budget and recycling old ideas about how to change the state's budget process, none of them politically viable. What better way to lower the budget heat than to relocate state elected leaders to someplace cool?

California is a big state,… more

Joe Mathews | August 17, 2008 | Los Angeles Times

There’s No Paying in Baseball

This year’s Little League World Series, which began on Friday, is a lavish, nationally televised American sporting event. At the site of the series in South Williamsport, Pa., there is a tent for the tournament’s corporate sponsors to show off their products, an instant-replay system to decide close calls and a perfectly groomed, two-stadium baseball complex.

For all of the tournament’s seductive gloss, Little League was born in poverty. In 1938, Carl E. Stotz, a Williamsport oil company clerk, lost his job when the business shut… more

Joe Mathews | August 16, 2008 | New York Times

Closing Tax Gap

Since the early 1980s, there has been a plethora of recommendations about how to reduce the tax gap. Many changes have been enacted, yet the gap grows. Proposals requiring additional information reporting or withholding are usually overlooked despite evidence that these techniques result in a low tax gap for wage earners. However, a significant information reporting rule was enacted in 2008. Its enactment though, seems to be more a result of its revenue potential than its role in a comprehensive tax gap reduction strategy.

Below, we'll review… more

Annette Nellen | August 14, 2008 | AICPA Tax Insider

Why Manners Matter at Work

For those of you who never bothered to pay attention to your mother, perhaps you'll listen to Peter Drucker, the father of modern management, instead.

This cheeky thought has crept into my head a couple of times in the last few weeks as I've noticed a run of stories about etiquette (or lack thereof) in the workplace. Most recently, there was the case study posted on this Web site (BusinessWeek.com, 8/12/08) about a worker who had to deal with a boorish boss.

And just… more

Rick Wartzman | August 14, 2008 | BusinessWeek.com

The Other Olympic Gold

"One World, One Dream" -- that's the slogan the Chinese Olympic Committee chose for the 2008 Games in Beijing. But don't let the idealism fool you. This year, beneath the roar of the high-minded sloganeering, you could hear the same twin engines that have powered all modern Olympiads: nationalism and capitalism. While I was in China last week, I noticed that the media were doing the same dance they do in the U.S. They paid lip service to the Olympic ideal -- the… more

Gregory Rodriguez | August 11, 2008 | Los Angeles Times

What Drucker Would Say About Mervyns

Mervyns portrayed itself as a victim of the crummy economy and a miserable retail environment last week as it filed for Chapter 11 bankruptcy protection. But in truth, a key part of the department store chain went bankrupt long ago. It's what Peter Drucker called the "theory of the business."

Every organization rests upon a set of such premises--fundamental notions about customers and competitors, about technology, about a company's own strengths and weaknesses. When an enterprise fails, Drucker explained, it is often because "the assumptions on… more

Rick Wartzman | August 7, 2008 | BusinessWeek

A City Built on Impermanence -- And That's OK

SHANGHAI -- "Most of them are so superbly ugly that they're exciting." That's what Qingyun Ma, dean of the architecture school at USC, told me last Tuesday afternoon when I asked him what he thought of this city's remarkable explosion of skyscrapers. We were in a taxi heading east on the elevated Yan'an Highway, in the heart of the city, continuing a conversation we had started an hour earlier in a conference room at the architecture firm he runs here in the French… more

Obama's Celebrity is a Good Target

John McCain's television ad comparing Barack Obama to Paris Hilton and Britney Spears will be chronicled by no sane historian, and even those of us who have seen it must curse the expense of time and neurons involved in viewing it or reading about it or, God forbid, writing about it. (There goes my memory of the subjunctive of "être", for example, dislodged to make room for McCain's latest.) But those of us determined to follow this race without fail - at work, at home,… more

T.A. Frank | August 1, 2008 | The Guardian (London)

Grabbing Remote Vendors

As far back as 1872, when Montgomery Ward issued its first mail-order catalog, vendors have sold to customers without being physically present in the customer’s state. Although sales taxes have existed since the 1920s, we have no effective system for collecting sales-and-use tax on sales by remote sellers.

Today we’ll look closer at the history of the remote sales tax issue, clarify New York’s law change and note possible solutions.

Interstate Sales Tax History

As a 1965 congressional report noted: “The present system of State taxation as it affects… more

Annette Nellen | July 31, 2008 | AICPA Tax Insider

A Tax Commission for California? How It Can Be Made to Work

Both Governor Schwarzenegger and Assembly Speaker Bass have stated that they would like to form a bipartisan commission to find ways to improve California’s tax system. They seek to modernize our tax system, make the state more economically competitive, and have a system that produces stable revenues.

These are great goals. California’s tax system was designed decades ago in a manufacturing era when borders were important and tangible goods ruled. Our tax system was not designed for the current information age with its mobile capital, worldwide-based workforce,… more

Ich Bin Ein Obaman

We already know that Barack Obama can be many things to many people, but could anyone have guessed that he would also be a good German?

In honor of the Democratic candidate's visit to Berlin last week, Die Zeit, the Hamburg-based weekly, revealed for the first time that the Illinois senator's great-great-great-great-great-great-grandfather was an upstanding Alsatian farmer named Christian Gutknecht, who shoved off to America on Sept. 13, 1749. The article was titled "The German Obama."

And not only was the German… more

Inmates and Integration

To be honest, it didn't look like racial segregation. I was standing among long rows of metal bunk beds in a room where 36 men of different races -- black, white, Latino -- live together more or less peaceably. But the setting was a dormitory for minimum-security inmates at the Sierra Conservation Center, a prison in Tuolumne County near Yosemite, and in such places, unwritten rules apply. One of the rules is that each bunk must be shared by two men of the… more

T.A. Frank | July 27, 2008 | Los Angeles Times

For Obama, Beyond Civil Rights

A Barack Obama presidency could end the Iraq war, transform our national energy policy, revive America's standing in the world -- but please don't expect the first black man in the Oval Office to move us above and beyond the civil rights era. At least that's what Obama himself suggested last Monday in his speech to the NAACP. In a campaign fueled by high expectations, Obama seemed to be trying to lower his audience's hopes that the election of the first black president would be anything… more

When 2008 Feels Like 1968

It's been a bummer of a summer, hasn't it?

At the gas station the other night, I found myself staring in disbelief—as I have for weeks—while the numbers on the pump kept spiraling higher and higher. The total: $67.83 to fill my Passat. I hopped back in my car and flipped on the radio, figuring a little music might take my mind off the lightness of my wallet, but the news came on instead: Fannie Mae (FNM) and Freddie Mac (FRE) were reeling. Nervous depositors… more

Rick Wartzman | July 17, 2008 | BusinessWeek

Rethinking IRAs

A Department of Labor retirement guide notes: “For many Americans, retiring in this new century is a mystery.” They’re living longer, they’re more personally responsible for their own retirement savings and they have many more savings options than previous generations did, which exacerbate the confusion. In June 2008, a House Ways and Means Subcommittee hearing explored options for expanding IRA participation. This article presents data about the mystery and IRA participation, highlights of the hearing and considerations for reform.

For general information about… more

Annette Nellen | July 17, 2008 | AICPA Tax Insider

Cartooning Obama's Economics

Among the things I admire most about Barack Obama is the way that he’s able, without sounding wishy-washy, to capture issues in their full complexity – to explain them not in the obtuse terms typical of so many politicians but in a manner that recognizes nuance, that allows for shades of gray.

It’s too bad that the same can’t be said of John R. Talbott’s Obamanomics: How Bottom-Up Economic Prosperity Will Replace Trickle-Down Economics. Instead, much of it presents an overly simple, cartoonish view of… more

Rick Wartzman | July 16, 2008 | Los Angeles Times

Berlin's Edifice Complex

Well before the new U.S. Embassy here officially opened in a soggy (outdoor and uncovered) Fourth of July celebration that featured hors d'oeuvres from McDonald's and Dunkin' Donuts, German critics had roundly savaged the building as an architectural disaster. Last May, the daily Süddeutsche Zeitung called it "Ft. Knox at the Brandenburg Gate." Der Tagesspiegel pronounced it a "triumph of banality." Particularly offended by the embassy's windows, the critic at the conservative Frankfurter Allgemeine Zeitung contended that they "look as if a bankrupt homeowner had bought… more

X+3(Y)politics = Prop. 98

Twenty years ago, with just under 51% of the vote, California voters approved Proposition 98, a constitutional amendment establishing a minimum funding guarantee for education. For years afterward, officials at the California Teachers Assn. (the initiative's main backer) and other proponents made a habit of describing Proposition 98 as having receiving "overwhelming support" from voters.

Today, the education funding guarantee is as popular as the teachers union has long wished -- a true third rail of California government that zaps politicians who dare to suggest altering it. So… more

Joe Mathews | July 13, 2008 | Los Angeles Times

California's Tax Loopholes That Aren't

The package of six tax increases that passed in the Budget Conference Committee this week includes two described as loophole closers. Who can argue against closing a loophole? Unfortunately, the two provisions proposed to be changed aren't loopholes.

A loophole is the ability to use a rule in an unintended way. It may be due to poor wording or an incomplete definition in the law. For example, assume a state has a lower property tax rate for agricultural land to help farmers. However, the definition of… more

Gay Marriage: The Key to Happiness?

Who knew? The legalization of gay marriage might make Californians happier. At least that's what a new study based on surveys of 350,000 people in nearly 100 countries suggests.

No, the authors aren't gay activists, nor do they seem to be peddling any particular political agenda. But in their search to discover which countries are happier than others and why, these scholars -- led by University of Michigan political scientist Ronald Inglehart -- have stumbled on one pretty fundamental conclusion about… more

Leveraging the Strengths Of the Disabled

When the House passed legislation in late June that expanded protections for disabled people, it marked an important step forward on an important issue. But what the workplace needs, even more than a new law, is an old insight -- one first offered by Peter Drucker more than 40 years ago.

"To make strength productive is the unique purpose of organization," Drucker wrote in his 1967 classic, The Effective Executive. "It cannot, of course, overcome the weaknesses with which each of… more

Rick Wartzman | July 3, 2008 | BusinessWeek.com

Save SF's Campaign Finance Program

In 2000, San Francisco voters approved a system of public financing of campaigns for the Board of Supervisors, which in 2006 was expanded to the mayoral race. By eliminating the need for candidates to raise large amounts of private money, the program has been extremely successful at helping sever the link between big money and political decisions. But now this flagship program is threatened: Mayor Gavin Newsom is proposing to raid several million dollars from the public campaign fund.

Last September… more

Pinkertons at DHS

In November 2005, hotel employees in the city of Emeryville, California got some good news. Local voters had passed a “living wage” law requiring hotels to pay workers a minimum of nine dollars per hour plus extra for certain duties. In an expensive town--Emeryville occupies a narrow peninsula in the San Francisco Bay, making it attractive to tourists--this was welcome news. As the months went by, however, employees at one hotel, the Woodfin Suites, found that they were still being paid less than the law required. In… more

Why the State Budget Never Adds Up

Gov. Arnold Schwarzenegger says he wants more than a balanced budget this year. He wants budget reform too.

For a state that has already laced itself into straitjackets of spending mandates and formulas, Schwarzenegger proposes new constitutional chains: a combined rainy-day fund and spending limit, to be added on top of the rainy-day fund and spending limit that voters have already approved separately. His implicit message: The Legislature and I have chosen badly, so please restrict our ability to choose again.

As… more

Mark Paul | June 29, 2008 | Los Angeles Times

Taxing Some Services Could Help if It's Fair and Simple

California State Board of Equalization Chair Judy Chu believes it is time to address our deficit and modernize our sales tax by applying it to services. Her call to modernize our sales tax would be a good start in addressing an underlying cause of our budget problems.

Taxing services is not an outlandish idea. Most states already tax more types of services than does California.

Taxing services is also not a bad idea. Lifestyle changes have led us to spend less on… more

Not Flat

PL 86-272 provides that if the only in-state activities a business has is the solicitation of orders for tangible personal property that is approved and filled from outside the state, the state may not impose a net income tax on the business. States set the rules, within due process and commerce clause constraints of the U.S. Constitution, for businesses that sell services or intangibles.

States tend to take broad approaches. A 2007 Illinois Department of Revenue ruling notes that… more

Picturing Paradise

Sometimes I miss Los Angeles. I live and work smack in the middle of it. But sometimes I still miss it.

I figure I can place the origins of my nostalgia in the year I spent in Madrid, when I was 14. That was when I made Joni Mitchell's Vietnam War-era paean to my home state my personal anthem. Although I can't say I was homesick for family and friends, I sure identified with Mitchell's longing for warmth and refuge in… more

The Groundhog Day Election In Los Angeles

After a fiercely fought primary election, no winner emerged in last week's election in the LA County Supervisor race between City Councilmember Bernard Parks and State Senator Mark Ridley-Thomas. With barely one-sixth of all voters participating, millions of dollars spent, and a race that turned increasingly negative, neither Ridley-Thomas nor Parks could muster a majority (50 percent plus one) in the nine-candidate field. As a result, both candidates must now duke it out for another five months until the November… more

Betting On the Lottery

Californians could be forgiven for worrying that an important state asset -- the state lottery -- is in grave danger. In recent weeks, a rhetorical barrage, bordering on the hysterical, has been directed at Gov. Arnold Schwarzenegger's proposal to borrow against future lottery receipts to help close a $15.2-billion budget gap.

The Contra Costa Times darkly suggested that the governor's idea would mortgage the lottery's future and "saddle future generations with irresponsible debt." The top Democrat in the state Senate, Don… more

Joe Mathews | June 22, 2008 | Los Angeles Times

Retirement Saving For All

Once a land of savers, America is now the home of the thriftless. Americans' personal saving rate, in steady decline over the last quarter of century, finally plunged into negative territory this year. No surprise there. In modern America the struggle between debt and saving is a rigged contest. It's never been easier to borrow -- credit cards, subprime home mortgages, home equity loans, payday loans. But when it comes to saving, about half of American workers, including more than… more

Drucker's Take On Making Mistakes

Lyndon Johnson occupied the White House when KeyCorp first began raising its dividend. The Beatles topped the pop charts. Martin Luther King Jr. led tens of thousands of civil rights marchers through Alabama.

For 43 straight years, the company's annual payout climbed, "a record we were extremely proud of," in the words of KeyCorp Chief Executive Henry Meyer. That is, until earlier this month. The Cleveland bank, slammed by the weak housing market and an adverse tax ruling, announced that it… more

Rick Wartzman | June 19, 2008 | BusinessWeek.com

The Hugh Hefner Of Politics

I ask Taylor Marsh whether she really keeps a gun to protect herself from her detractors, as she claims on her website. So, she escorts me into her bedroom to show the proof: an HK 9mm handgun. "I know how to use it," she says, pointing the weapon briefly in my direction (it's unloaded) before walking over to the other side of the bed. There, she holds up her husband's firearm, a Ruger Mini-14 rifle. "I am just reviled everywhere,"… more

Rootless To a Fault

In the 20th century, the color line was the primary challenge. In the 21st century, the problem is the border line. Today, there are more people living outside their countries of birth than at any time in history, and international migrants now make up the equivalent of the world's fifth most-populous country -- just after China, India, the United States and Indonesia.

As a result, migrant-receiving nations, particularly those in the First World, are scrambling to devise strategies to incorporate and… more

The New 'I Do'

Hold the champagne.

Or at least the California sparkling wine.

This week should be a joyous one for those of us who believe in the right to marry the person you love. A month after the California Supreme Court overturned the state's ban on same-sex marriage, gay couples will be able to walk into county offices here and secure the same marriage license to which heterosexual couples such as my wife and I are entitled.

Partners are hastily arranging nuptials, and the wedding-industrial… more

Joe Mathews | June 15, 2008 | The Washington Post

Tapped Out

To paraphrase an old axiom: You don’t buy water, you only rent it. So why did Americans spend nearly $11 billion on bottled water in 2006, when we could have guzzled tap water at up to about one ten-thousandth the cost? The facile answer is marketing, marketing and more marketing, but Elizabeth Royte goes much deeper into the drink in “Bottlemania: How Water Went on Sale and Why We Bought It,” streaming trends cultural, economic, political and hydrological into an… more

No Gay Weddings In Kern County

A few years ago, I heard writer Gerald Haslam explain his struggle to describe the difference between the Kern County burg of Bakersfield and the Bay Area city of Mill Valley, both of which are settings for his novel, "Straight White Male."

"Then it suddenly occurred to me," he said. "There was nobody in Bakersfield who cared whether Tibet was free."

Haslam's remarks came rushing back to me last week with the news that the Kern County clerk will stop performing all… more

Rick Wartzman | June 10, 2008 | Los Angeles Times

Cheney Talks Trash

Things are getting complicated. In the same week that a black man clinched the Democratic nomination for president, the current white, Republican vice president was forced to apologize for making a crack that played on the myth that poor white folks like having sex with their cousins.

It probably wouldn't have been a big deal had Dick Cheney not singled out West Virginia, the bluest of the red states. He was talking about having Cheneys on both sides of his family… more

Obama's Drucker-Style Win

As Barack Obama claimed the Democratic nomination for President last week, pundits were quick to credit any number of factors in his vanquishing of the once-vaunted Clinton political machine: Obama's rock-star charisma, his scintillating speechmaking, what he himself has described as his "almost spooky good fortune."

But I chalk it up, in large measure, to one thing: his superior ability -- or at least his advisers' superior ability -- at management, Peter Drucker-style.

In fact, it was almost as if the Obama… more

Rick Wartzman | June 6, 2008 | BusinessWeek.com

Thirty Years After Prop 13, California Voters Supported Tax Increases In Tuesday’s Election

Voting just three days before the 30th anniversary of the passage of Proposition 13, the landmark Jarvis-Gann initiative that cut property taxes and triggered a tax revolt across the country, voters in the primary election approved dozens of tax increases in local communities around the state.

By my count from semi-official election results available the day after the election, they passed 26 of 32 proposals to issue school and community college bonds; each of these measures, which raise local property taxes… more

The Seven-Year Rich

After the brutal bust of 2001, we didn’t expect new masses of multimillionaires to reappear around here quite so fast. But they did -- and this time, no recession will send them packing. A 2008 field guide to a new, super-driven kind of upper class -- whose motives and morés, like it or not, are now part of our DNA.

I. The Penthouse View

On a recent Friday morning, at the end of a week in which the dollar has continued to… more

On the Road Again, Somehow

It's summertime, and the gas prices are sky high.

The Travel Industry Assn. is forecasting only a slight 1% decline in the number of vacations Americans will take this summer as compared to last. But not everyone is so sanguine about the future of American mobility. Some oil industry experts are predicting an end to the classic summer road trip.

That would be a terrible shame. Not just because it'd be a loss of a phenomenal form of recreation, but because taking… more

The New American Segregation

Voter turnout this primary season has been setting records. With interest so high, some analysts are predicting another blockbuster general election in November. But can American democracy survive all this heightened interest in the political process?

Half a century ago, political scientist Paul Lazarsfeld became one of the first scholars to document the link between political participation and partisanship. He discovered that partisans voted more regularly and with greater enthusiasm than those who resided in the ideological middle. Although most experts… more

Conditioning the Corporate Athlete

Thirty-five years ago, in his classic Management: Tasks, Responsibilities, Practices, Peter Drucker declared that the means by which most people had long run their organizations -- through a mix of perks and punishment, rewards and reprimands -- was all but dead.

"The basic fact," Drucker wrote, "is that the traditional... approach to managing, that is the carrot-and-stick way, no longer works."

It was striking, then, to read a few weeks ago of Whirlpool's decision to suspend 39 workers who had claimed to… more

Rick Wartzman | May 22, 2008 | BusinessWeek.com

Gross Receipts Taxes

In recent years, concern over declining corporate tax collections, aggressive tax planning and state revenue needs have led a few states to consider and even enact a gross receipts tax (GRT) on companies that do businesses within its borders. On the surface, a GRT is simple since it allows no deductions. The broad base allows for a very low rate that can make the tax more palatable. Further, all businesses are typically subject to the GRT, with the result that… more

The Fear Of White Decline

Hillary Rodham Clinton is right. She has the broader and whiter political coalition, so she should, by all rights, be the Democratic presidential nominee.

After all, in other realms of the political process, we routinely refer to "black districts" or "Latino districts" and speak of the necessity of those jurisdictions to be represented by black or Latino elected officials. Well, then, because the American population is 66% white, maybe the United States is a de facto white district that should be… more

Democracy Inc.

In Thousand Oaks, the owner of a local chain of home improvement stores called Do It Centers is locked in fierce, expensive competition with Home Depot. But the contest has nothing to do with which can offer the lowest prices and the friendliest service, or which will sell you the better chain saw.

No, even though this war is all about business, it's being fought on a political battlefield, and will come to a head on June 3, when the residents… more

Joe Mathews | May 18, 2008 | Los Angeles Times

We Want a Fair Shake

It's a dog-eat-dog world. It's sink or swim. Every man for himself. There's no such thing as a free lunch.

If you think about it, we Americans have dozens of ways to express our low opinion of human motives. Sure, we romanticize past eras of social cooperation -- conservatives wax nostalgic about small-town voluntarism, liberals pine for the days of mass political action. Yet it seems that, particularly after the Reagan (or Alex P. Keaton) era, our language betrays an almost… more

Switch To Español

Amid all the national debate over immigration, at least one firm consensus has emerged: Newcomers to the United States should learn English because it remains the lingua franca of our civic life. All three remaining presidential contenders say that the ability to speak English should be a requirement of U.S. citizenship. And last year, the immigrant governor of California told a convention of Latino journalists that immigrants should watch only English-language TV so they can understand the language and news… more

Joe Mathews | May 11, 2008 | The Washington Post

Exxon Mobil Needs a Longer View

John D. Rockefeller has been described in many different ways: as greedy and cutthroat, as munificent and caring, as "solitary, taciturn, remote, and ascetic," in the words of author Daniel Yergin. But as a manager, perhaps Rockefeller's most indispensable quality was this: He was uncompromisingly forward-looking.

It was Rockefeller, more than any single figure, who helped revolutionize the way people in the 19th century illuminated their homes, hastening the shift from costly whale oil to kerosene -- a fuel that was,… more

Goodbye State Tax Deduction

The 1984 Treasury Department report (PDF) that laid the foundation for the base broadening and rate reductions of the Tax Reform Act of 1986, called for complete repeal of the itemized deduction for state and local taxes. Citing similar reasons, the 2005 final report of the President’s Advisory Panel on Federal Tax Reform also called for repeal. Yet, there are also proposals to make permanent the ability to deduct either state income or sales tax (for… more

Dialogue Isn't the Last Word

Barack Obama loves reconciliation, but it isn't all it's cracked up to be. Sometimes it isn't even possible, and let's be honest, it isn't always the point.

About six weeks ago, during his "More Perfect Union" speech on race that some heralded as the second coming of Abraham Lincoln, Obama had a choice between reconciliation and renunciation, and, true to form, he chose the former. He protested that he could "no more disown" the Rev. Jeremiah A. Wright Jr. than he… more

Schwarzenegger-Shriver: Protecting the Brand

One afternoon early in his second year as governor, Arnold Schwarzenegger flew home from Sacramento to Los Angeles with a vexing political problem. He needed to cut $2 billion from the budget he was putting together, and any of his best options for doing it could get him into trouble.

If he raised taxes, he'd anger his fellow Republicans. Break a promise to increase education funding and he'd alienate the top Democratic interest group, the California Teachers Assn. Option 3: Cut… more

Confessions Of a Sweatshop Inspector

I remember one particularly bad factory in China. It produced outdoor tables, parasols, and gazebos, and the place was a mess. Work floors were so crowded with production materials that I could barely make my way from one end to the other. In one area, where metals were being chemically treated, workers squatted at the edge of steaming pools as if contemplating a sudden, final swim. The dormitories were filthy: the hallways were strewn with garbage -- orange peels, tea… more

Cracks In the Foundation

While Hillary Clinton, Barack Obama and John McCain appear anxious to move into the White House, none of them have much to say about housing. Yet rarely a day goes by that the headlines don't mention the current housing crisis and its threat to the financial markets and the economy. This has led to a strange disconnect between the presidential campaigns and national reality.

Subprime lending and the ensuing foreclosures are being blamed for the crisis, but the problems and blame… more

Steven Hill | April 24, 2008 | Guardian Unlimited

Dusting Off a Managing Tome

Of all of Peter Drucker's achievements -- advising captains of industry and heads of state, coining the term "knowledge worker," winning the Presidential Medal of Freedom -- the most remarkable may be this: In 1974, his 800-plus-page tome, Management: Tasks, Responsibilities, Practices, vaulted past The Joy of Sex on the national best seller list.

Last week, HarperCollins released a revised edition of Management. And regardless of whether it winds up eclipsing Bonk, the latest hot-selling volume on the physiology and psychology… more

Rick Wartzman | April 24, 2008 | BusinessWeek.com

Gross Receipts Taxes

Recent tax reform efforts in Ohio, Texas and Michigan have led to an increase in the number of states imposing gross receipts taxes (GRT). Let's take a closer look at GRT and some important legal issues surrounding it.

Overview

The Multistate Tax Compact defines a GRT as "a tax, other than a sales tax, which is imposed on or measured by the gross volume of business, in terms of gross receipts or in other terms, and in the determination of which no… more

The Joe Lunch Bucket Strategy

If Americans are such huge fans of big dreams and high rolling, self-made tycoons and upward mobility, why then do we insist on seeing our national political elites -- who are also generally our economic and educational elites -- throw back a shot of whiskey or lace up bowling shoes?

Why do we need to pretend that high-flying politicians who graduated from the fanciest schools and dine at the toniest restaurants really don't live in a different world and -- dare… more

Throw Out the Tax Code

Politicians don't like to talk about taxes except to brag about cutting them. But with California's widening budget deficit threatening deep cuts in education and other public services, it's difficult to avoid discussions about raising taxes.

Unfortunately, what's likely to be lost in the upcoming partisan melee over whether new taxes are needed to close the $16-billion gap is an equally important tax issue -- California's aging and often unfair tax system needs to be overhauled.

The goal of tax… more

Mark Paul | April 20, 2008 | Los Angeles Times

Absolut Canard

If I didn't already prefer Ketel One vodka in my martinis, I might very well call for my own boycott against Absolut.

Not because I agree with the knuckleheads who fear that the Swedish company's advertisement featuring a map of the American Southwest as Mexican territory is fueling ethnic secessionism, but because, in its attempt to lure upper-middle-class consumers in Mexico, the company played on an age-old canard that has historically been used to justify discrimination against Mexican immigrants and… more

Arnold vs. Arnold

Education cuts and reform campaigns can be the drinking and driving of California politics. Each carries certain risks when pursued separately. Combined, they can be deadly.

This is a truth that Gov. Arnold Schwarzenegger has found hard to accept. Three years ago, just as he launched his breakneck drive to win voter approval of budget and political reforms, he decided to withhold part of a mandated increase in education funding from his 2005-06 budget proposal. The delay in Proposition 98 funding… more

Joe Mathews | April 13, 2008 | Los Angeles Times

Automatic Americans

Ending birthright citizenship is a placebo, not a solution to illegal immigration.

The debate over immigration is fundamentally about who we are as a nation,who we are not, and who we want to be.

It is thus no surprise that those most afraid of who we are becoming have moved to redraw the rules of inclusion by proposing to do away with birthright citizenship. Such a move is not only legally dubious, it is a threat to American prosperity.

Opponents of birthright citizenship… more

Waste Not

Forty years ago, the steel mills and factories south of Chicago were known for their sooty smokestacks, plumes of steam, and throngs of workers. Clean-air laws have since gotten rid of the smoke, and labor-productivity initiatives have eliminated most of the workers. What remains is the steam, billowing up into the sky day after day, just as it did a generation ago.

The U.S. economy wastes 55 percent of the energy it consumes, and while American companies have ruthlessly wrung out… more

Peter Drucker's Winning Team

In the summer of 1985, an executive named Peter Bavasi pored over a Harvard Business Review article by Peter Drucker in which the great management thinker described the "widow maker" -- a job so inherently impossible that it was apt to defeat even the best and brightest.

Drucker's warning, "Any job that ordinarily competent people cannot perform is a job that cannot be staffed," was especially ominous for Bavasi. He had, you see, just become president of the Cleveland Indians, a… more

Rick Wartzman | April 10, 2008 | BusinessWeek.com

New Taxes And Tax Policy

In recent years, there have been enactments and proposals for a variety of new taxes at both the U.S. state and local levels. A key impetus for these changes is the need for more revenue to fund state and local governments. While existing taxes could be increased to generate revenue, other sources have been considered for a variety of reasons. This article looks at a few recent examples and how they stack up under the principles of good tax policy.

Examples

Sources… more

A 670-Mile-Long Shrine To American Insecurity

Last February, I found myself in the difficult position of explaining American insecurity to a group of Mexican undergraduates at a college in Matamoros, Mexico, just south of the border at Brownsville, Texas. I was taking questions after delivering a lecture on the long-term prospects of Mexican immigrants being accepted into U.S. society. A neatly dressed young man in the back stood up to ask a pointed question. "How," he said politely in Spanish, "could such a rich and powerful… more

The Perfect Candidate

If Americans have such a low opinion of politicians -- and they do -- why then do they invest so many hopes and expectations in one of them every four years?

Are they stupid? Naive? Like continually heartbroken but eternally hopeful lovers, do they really think their next suitor will not disappoint them like all the rest?

Try writing a newspaper column for a few weeks and, if you dare check your e-mail, you'll get a whiff of how much people want… more

Drucker And the Complexities Of Race

Long before so much of the nation became fixated on what was being preached inside black churches on Sunday mornings, Peter Drucker would go on occasion and listen for himself.

It was the late 1930s, and Drucker had just landed in New York, having fled the Nazis. Whenever he happened to spend the weekend in Washington, Drucker recalled years later, he would sneak into Rankin Chapel to be "shaken and moved" by Howard Thurman, the chaplain at Howard University. His was… more

Rick Wartzman | March 27, 2008 | BusinessWeek.com

The 50th Anniversary Of Public Law 86-272

Public Law 86-272, addressing circumstances under which a multistate business may owe state income taxes, was enacted as a stopgap measure on September 14, 1959. For the past several years, efforts to reform this law have raised issues similar to those of 1959. This article provides a brief history and the issues surrounding PL 86-272 and poses the question -- when the 50th anniversary milestone is reached, will PL 86-272 be in its historic form or a new form (and… more

Obama's Brilliant Bad Speech

In some ways, Barack Obama's speech on race last week was as brilliant as it was nuanced. But for all its rhetorical beauty, it was also an enormous step backward and, in the end, a rather self-serving call for more discussion about racial grievance in a country that has already done way too much talking.

Until last week, so much of Obama's appeal lay in the fact that he was not asking us to talk about the racial divide. Instead, he… more

Put Teachers To the Test

In recent years, reformers have sought to improve our failing public education system by tightening and standardizing the measures we use to judge performance. From the numerical requirements of the No Child Left Behind Act to California's increased focus on assessment and accountability, there's been a conscious attempt to use hard data to measure success at every level of the education system.

But one group does not have its performance measured this way: teachers. Determining the effectiveness of individual teachers --… more

Camille Esch | March 23, 2008 | Los Angeles Times