Tag Archives: political economy

Starbucks Fail

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A Starbucks in Tempe, AZ, had one of its baristas ask five police officers who were having a pre-shift coffee either go sit somewhere else or leave altogether because one customer felt “threatened” over their being where the customer could see them.

In the hoo-raw ensuing, Starbucks spokesman Reggie Borges said

We have a deep respect for the Tempe Police and their service to the community.

That’s plainly not true. If Starbucks really cared, if it had any actual respect for the police—much less a shred of self-respect—it would have had a better-trained crew of baristas who wouldn’t knee-jerk insult cops over a snowflake’s made-up beef.

A day after the story broke, Rossann Williams, Executive Vice President and President, US Retail for Starbucks said this:

On behalf of Starbucks, I want to sincerely apologize to you all for the experience that six of your officers had in our store on July 4. When those officers entered the store and a customer raised a concern over their presence, they should have been welcomed and treated with dignity and the utmost respect by our partners (employees). Instead they were made to feel unwelcome and disrespected, which is completely unacceptable.

These are empty words, whether sincerely offered or just marketing damage control. What’s necessary is actual, visible changed behavior over a sustained period of time.

It’s also sad that no one else spoke up and told this barista to seat the cops with him.

Aside from the simple courtesy of such a gesture, it might also be the case that other patrons wouldn’t feel safe without the cops around. Especially with someone possessed of so little respect for law and order so close by.

The Cost of a Celebration

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President Donald Trump held America’s Independence Day celebration with a Salute to America, centered at the Lincoln Memorial.

Together, we are part of one of the greatest stories ever told—the story of America.  Today, just as it did 243 years ago, the future of American Freedom rests on the shoulders of men and women willing to defend it.

Just to pick out a couple of things: The Wall Street Journal cited “Democrats” complaining about

the use of military hardware for a traditionally nonpartisan celebration.

Because defending our nation’s existence and celebrating those who do that defense isn’t nonpartisan.  Sure.

And this one:

The Pentagon has said it wouldn’t have cost estimates until next week at the earliest.

I have some estimates now—not on the costs of the military units’ performances, but on those costs unique to their participation in the Salute to America celebration.

The aircraft—and their pilots—used consisted of

B-2 stealth bomber
F-35 Joint Strike Fighter
F-22 Raptor
F/A-18 Hornet
Air Force One
Marine One

Their cost that’s unique to the celebration is a good approximation of zero.  Those sorties flown—every single one of them—count as nav currency sorties and formation-keeping currency sorties, and they are a direct substitute for sorties that otherwise would have to be flown as part of any pilot’s currency training.  Furthermore, the fuel and maintenance resulting from the sorties also are already accounted for in those required currency sorties.

M1 Abrams tanks
M2 Bradley Fighting Vehicles

Here, the costs will be somewhat incremental, but some—the transport part—will count for existing currency requirements, similarly to the aircraft costs.

The incremental costs just aren’t that great.

Nike Fail

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Nike has signified its agreement with Colin Kaepernick‘s assessment that Nike’s planned Betsy Ross-flagged shoe, intended to be released for Independence Day celebrations, was offensive to some by canceling the release.  Kaepernick’s claim was that

he and others felt the Betsy Ross flag is an offensive symbol because of its connection to an era of slavery

Never mind that, were it not for those evil slavers who founded our nation and fought for our independence, we’d still be dealing in slavery and indentured servitude—and guess what would be the lot of current immigrants, legal and illegal.

Kaepernick knows all of this, he’s a K-12 graduate, and he attended college while he played semi-pro football before joining the NFL. He’s just in his current game for his ego now, and out of his desperation to be relevant.

On the other hand, the members of Nike’s management team have not just shown their pretense of ignorance, they’ve demonstrated—at the very least—their cowardice, both individually and as a group.

Arizona’s Republican Governor, Doug Ducey, has taken a proper response, canceling State-originating tax breaks for a planned Nike factory in the State.  He went on:

Instead of celebrating American history the week of our nation’s independence, Nike has apparently decided that Betsy Ross is unworthy, and has bowed to the current onslaught of political correctness and historical revisionism,

It seems to me that Nike’s decision to cancel the Betsy Ross flag shoe is offensive to many.  Nike should respond by reissuing the shoe at a discount.

Nike won’t.  That leaves it up to the rest of us.

All of us should stop doing business with Nike.  Its management team has rendered the company useless and a party to racism. All at the behest of a…person…who’s not only not on Nike’s board; he’s not even a shareholder.  He’s just an endorser—which means Nike is paying him to make the decision to cancel an Independence Day celebration that honored a key player in our independence struggle.

Our current national flag, as an evolution of the Betsy Ross flag, also is “connected to an era of slavery”—maybe we should cancel it, too.  Oh, wait—Kaepernick already is trying for that, with his shameful knee-taking while our national anthem plays and our flag is raised.

None of us should pay any further attention to Kaepernick: his is just another example of cynically manufacturing a racist beef where no beef exists.

Trade and the Rule of Law

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Canada’s Prime Minister Justin Trudeau has asked for President Donald Trump’s help, at the G-20 meeting in Japan, to get the People’s Republic of China to release the Canadian hostages that the PRC kidnapped in retaliation for Canada’s detaining a PRC company executive for criminal investigation.  Trump has agreed.

Gerard Gayou suggested in his piece at the link,

Mr Trump may worry that challenging Mr Xi on political prisoners would jeopardize a trade deal, but pressing China on the rule of law should be a priority.

Indeed. Rule of law—as opposed to the PRC’s rule by law—is critical to many of the sorts of things Trump is looking for in a trade deal with the PRC: things like intellectual property protection, an end to the extortion the PRC applies to obtain proprietary technologies from foreign companies wishing to do business in the PRC, an end to the PRC’s demands for back doors into companies’ software, etc.

Absent rule of law, as the PRC demonstrated as recently as some few weeks ago when it walked away from commitments it had made during the then-trade negotiations, the PRC’s word on any trade deal will be largely worthless.

Is Renault a Useful Business Partner?

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When Fiat-Chrysler offered a merger deal with Renault, Renault’s subordinated partner, Nissan, expressed reluctance unless its subordination to Renault could be revised upward at least somewhat so that it could have a greater voice in the resultant combined company.

Note, though, that the French government is a major shareholder of Renault, and the government has a virtually controlling number of seats on the Renault board: Nissan was—and is, given subsequent events—subordinate to the French government as much as it is to its nominal business…senior partner.

The French government interfered with the offer, and it dithered and stalled, and finally Fiat-Chrysler lost patience and withdrew its offer.

Any possibility of the offer being revived (Nissan’s reluctance was not a block) has been dashed, though, by the French government’s effective refusal to discuss Nissan’s future role.

President Emmanuel Macron urged the French car maker to focus on generating cost savings with its partner Nissan Motor Co, rather than reshaping their 20-year alliance.

As he arrived in Japan for the G-20 discussions—conveniently local to Nissan—Macron flat refused to discuss the matter.

Mr Macron told reporters in Tokyo, where he is on an official state visit ahead of the G-20 summit, that discussing the shareholdings was “off topic.”
“We need to focus less on politics, less on finance, and more on industry,” he said.

That’s the flimsiest of excuses.  Its implication that Macron is unable to do two things in the same time frame is an insult to our intelligence.

Is Renault a useful business partner?  It may well be from a business perspective.  The heads of Fiat-Chrysler certainly thought it could be, and the heads of Nissan plainly were willing to consider the matter seriously.

However, from a political perspective, as long as the French government is involved with Renault in any way other than as a customer, Renault has no possibility of being anyone’s useful business partner.  The government-run company just isn’t worth the trouble.