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Peter Smirniotopoulos

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Three Innovative Ideas, Which Could Help the Economy,...but No One's Talking About Them

Posted: 10/ 9/2011 1:25 pm

I have been working on this topic for about five weeks, pretty much since I posted "Whatever Happened to 'the Vision Thing', Revisited". It was always my intention to follow that up with an explanation of how a vision for the future could serve as a meaningful organizing principle for a comprehensive and holistic plan to restructure and reposition the U.S. economy for future growth and prosperity.

My interest in continuing what I had hoped would be the beginning of a healthy dialogue generated by that blog entry intensified when, the following week, I offered "Too Little, Too Late: The President's 'Big Jobs Speech'"; what I thought was fair criticism of the president's address to a joint session of Congress on September 8th. That "fair criticism" drew 238 comments; very few of them flattering to the author. More than one commenter wondered about my ideas, sarcastically looking forward to seeing my vision (the clear implication being that I had none).

One commenter really threw down the gauntlet:

"Just exactly what would this 'expert' propose to do, other than criticize. I read nothing in the article suggestion [sic] that he had a clue. Maybe instead of writing that we need a 'bold vision' he could maybe give some details of what would be included in his 'bold vision'."

Ouch. If I had feelings, they'd be hurt. I don't think putting "expert" in quotes is intended as a compliment. If only punditry paid better.

So here I am, some six weeks later, ready to revisit this issue of the importance of having a new and bold vision for our country. And certainly neither the poignancy nor irony of the October 5th death of Apple co-Founder and former CEO, Steve Jobs, one of America's greatest contemporary innovators, has been lost on me in the process. I promise my four or five devoted followers, as well as my legion of torch-and-pitch-fork-wielding critics, that I do, indeed, have my own vision for our future,... which I will happily share with all,... eventually.

But only a fool would believe to single-handedly hold the key to America's future. So any discussion about an economic recovery plan crafted cohesively around a singular vision of a new, resurgent United States of America, would be well-served to at least consider some innovative ideas crafted and/or promoted by others. I offer here summaries of three innovative concepts to be explored more fully over the next several weeks.

The Good Corporate Citizen. The vernacular phrase for this concept is "doing well by doing good." On Monday, October 3rd, Charles Schulz, CEO of Starbucks, announced the Create Jobs for USA program, which will provide loans to underserved community businesses, and is being seeded with a $5 million contribution from the Starbucks Foundation. Of course, Starbucks is only one of a handful of successful U.S corporations to suggest that it is possible to combine profit motives with a business model that favors workers, communities, and the planet. These "socially responsible companies" integrate such ideals into their business models and practices.

In 1993 Paul Hawken, co-founder of garden supply retailer Smith & Hawken, published The Ecology of Commerce: A Declaration of Sustainability, offering a vision of corporate sustainability in which profitability and respect for the environment could be successfully blended. Retail companies like Smith & Hawken, Starbucks, and Chipotle (promoting organic and local food sourcing for its restaurants), as well as manufacturers including 3M, Adidas, and BMW, have recognized social responsibility programs that are integral to their business models. At a time when the three-week old Occupy Wall Street protest has expanded into the nationwide Occupy Movement, and there is increasing suspicion and even growing animosity among a majority of American voters and consumers toward business in general, those that sincerely embrace social responsibility may fair much better with consumers in the future, particularly those consumers with more limited dollars to spend.

Reducing Our Reliance on Foreign Oil While Increasing the Viability of Energy Alternatives. This is a topic that, in reality, gets talked about a lot but neither seems to gain much traction with the American public nor lead to new solutions upon which economic growth might be founded. In fact, the emerging P.R. campaign for approval of the Keystone XL Pipeline pits job creation against serious environmental concerns, uncoupling rather than dovetailing these two issues. The Solyndra bankruptcy, following a $535 million federal loan guarantee, hasn't helped either.

Efforts two years ago to do something legislatively creative through the Administration's carbon cap-and-trade proposal were summarily killed in Congress, primarily by lobbyists for the largest carbon emitters in the U.S., who didn't want to suffer a competitive disadvantage because of their polluting ways. Nonetheless, there is strong merit to the notion of carbon pricing as a means of accounting for the societal costs of poor air quality practices. Moreover, using some form of carbon tax and/or low carbon-emission credits to create funding mechanisms to promote Green Energy production would certainly help create jobs in the short term and a cleaner environment in the long-term. And, indeed, many of the recently created manufacturing jobs in the U.S. have been "green energy jobs" such as battery production for electric vehicles.

Three-time Pulitzer Prize-winning author and New York Times OpEd Columnist Thomas L. Friedman, in a September 13, 2011, OpEd entitled "Is It Weird Enough Yet?" had this to say:

"We need revenue to balance the budget. We need sustainable clean-tech jobs. We need less dependence on Mideast oil. And we need to take steps to mitigate climate change -- just in case Governor Perry is wrong [about the lack of scientific evidence of man's role in climate change]. The easiest way to do all of this at once is with a gasoline tax or price on carbon. " [Emphasis added.]

I rarely find occasion to argue with Mr. Friedman's facts or logic.

Changing the Public Education Paradigm. Sir Ken Robinson believes the public education system in Britain needs to be fundamentally reformed. His views are directly applicable to the American public education system, which has gotten way off track, most recently with an over-emphasis on standardized testing as the metric by which we judge how good a job we're doing of educating our children. The RSAnimate video "Changing Education Paradigms," graphically presents some of Robinson's thinking on the subject.

Reforming the U.S. public education system to make it less like a factory processing future workers, and focusing instead on creating a nation of thinkers, might seem counterintuitive to matching up high school and college grads with scarcely available jobs. And, indeed, this kind of "trade school approach" to recasting secondary and post-secondary education is something recently suggested by The Economist's Matthew Bishop, author of "The great mismatch," Sept. 10, 2011.

However counter-intuitive this notion may appear, fostering a nation of creative thinkers will serve the U.S. well in an increasingly global and technological economy. After all, one of the most successful and profitable companies in the world (high-tech or otherwise) is Apple. Until August 25, 2011, Apple was led by CEO Steve Jobs, who stepped down (for the second time) for health reasons. Jobs was one of the most creative thinkers of the past 50 years and was not trained by the American university system for such greatness. He was a creative thinker, not the toiler of a particular trade conferred upon him by some professional degree.

The potential, long-term implications for the U.S. economy of each of these innovative ideas will be explored more fully over the next several weeks, along with ways in which promoting these ideas could help the U.S. economy in the short-term (e.g. through the immediate creation of job opportunities).

 

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03:06 AM on 10/18/2011
"COLLEGE PARK, Md. - An innovative Maryland technology transfer program - the first of its kind in the United States to partner federal labs and public universities - has received an award honoring its success.
The Maryland Proof of Concept Alliance, which teams the Army Research Laboratory (ARL) and the University System of Maryland, was recognized as a national model by a group representing federal labs.
The Mid-Atlantic Federal Laboratory Consortium for Technology Transfer (FLC) - has made the Alliance the first recipient of its Partnership Award honoring successful collaborations between educational institutions and federal labs.
To speed researchers' innovations to market and help create jobs, the University of Maryland-led Alliance gives small, targeted grants for demonstration projects that can help prove to potential investors that a successful laboratory concept works - often a make-or-break challenge."
This is just a part of the initiatives that universities around the country are aiming for, namely to partner with the private sector to market research for commercialization, thus creating jobs. However, there are laws that are impeding this from happening.

Re the vocational high schools, there are jobs that are begging for the kinds of skills that vocational schools of yesteryear used to prepare students for. Namely, jobs such as auto repair, plumbing, electricians, welding, etc. These are jobs that aren't specific to one geographic area. Initiatives abound in both the college research sector and for vocational education.
11:46 AM on 10/10/2011
Re: "trade school approach" The world needs all kinds of trained professionals. Not all of them need a four-year degree. The GI Bill was a great gift to many, and set a post-secondary education standard that we still hold dear, but it's at the expense of trade professions, which have far fewer artisans and masters.

College tuition being what it is, a lot of people are rethinking the necessity (and ROI) of a four-year degree, and redefining what it means to make a living in this "anti-economy."

Public schools eliminated trade/vocational classes. Private schools never offered them. Community colleges used to be vo-tech centers, but they're now the lower-cost option for four-year students to get their "basics" out of the way. Our cities are clogged with for-profit "career" schools that promise exciting careers after just a few weeks of training that you could just as easily do OTJ.

And there's Europe, where people seem to have always understood that a university education is impractical for all but a few. European schools, like schools in many parts of the world, don't favor creative or critical thinking. They are training workers who will do as they're told, not educating thinkers who might challenge protocol. Think call centers: When was the last time you talked to an offshore rep who went "off script" to help you solve a problem?

A solution? I don't have one.

Great read, Peter. Thank you.
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HUFFPOST BLOGGER
Peter Smirniotopoulos
Saving the world 1 Tweet @ a time; HP blogger
02:04 PM on 10/10/2011
Susan, as always written by someone who actually knows her subject matter. It's funny but when I wrote "trade school approach" it was really my short-hand for the college prep approach to secondary education intended to create a workforce of doctors, lawyers, engineers, accountants, IT professionals, and the like, rather than focusing on critical thinking. But then again, I know you know that. However, your point is an interesting one indeed. Ironically, one of the things the recession has done, combined to a lesser extent with the collateral damage of the "Cash for Clunkers" program, is increase the demand for trained auto mechanics because people are keeping their cars much longer as part of our new Culture of Austerity. There are a lot of building trades--masons, plasterers, custom cabinetmakers, and woodworkers (yes, I draw the distinction)--that appear to be disappearing in favor of much more compartmentalized, assembly line construction trades like setting and pouring foundations, framing, and insulation installation. And yet, we still have a pretty impressive stock of older and historic buildings for which the available talent to repair and restore them has almost evaporated.
11:21 AM on 10/10/2011
Re: Social responsibility. Many companies ditched it in those days of slashing everything that wasn't a profit center. We vote with our dollars and our talent. We can commit to companies that build doing good things into their business model - as customers, and as employees.
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Peter Smirniotopoulos
Saving the world 1 Tweet @ a time; HP blogger
02:09 PM on 10/10/2011
As I'm sure you recall, for a time there was also a movement to focus investments--particularly of pension funds of union groups--in socially responsible companies. Like many things that seem to fall victim to an environment of fear, like our civil rights and more open discourse of the issues, as investment returns started to dwindle, the notion of "doing well by doing good" with one's pension monies became a quixotic idea. I hope to point out a few such companies in this week's blog entry, however, and discuss how an economic model can be formed around this premise.
10:00 AM on 10/10/2011
This approach makes a great deal of sense. I do seem to recall some of these ideas being floated around during the last election. But the Washington morass called Congress has been like a great, black hole sucking any ideas presented by the White House into oblivion.
The President has tried so hard to find common ground and end the standoffs that he has often given away too much and weakened his own policies. How do we overcome this standoff? I realize that the Founders intentionally put these checks and balances into the system, but the system is now so capable of shutting itself down that we are drowning in our own divisiveness.

As for Creative Thinking - this is my primary argument for Arts Education. Teaching Arts in the classroom isn't about making a new generation of painters, actors, musicians, etc; it's about making a generation capable of thinking beyond today's reality and inventing the next one. That doesn't come from learning facts and figures and passing standardized tests; it comes from engaging creative imagination and learning how to manifest a new reality from an idea.

Well done. Looking forward to the next article!
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HUFFPOST BLOGGER
Peter Smirniotopoulos
Saving the world 1 Tweet @ a time; HP blogger
02:14 PM on 10/10/2011
Colette, thanks for your kind comments but also for exploding the myth about arts education. If you haven't seen it I strongly encourage you and everyone else to watch the RSAnimate video of Sir Ken Robinson's presentation to the Royal Academy in London (which I linked to my blog entry), about changing the public education paradigm. Robinson goes into some detail about how arts education contributes to more creative and broadly based thinking. We seem to have an overly narrow conception about public primary and secondary education in this country, especially things that are viewed--because they're not appreciated fully or understood--as being superfluous to a complete education.

All of your comments in this regard are very well taken.
09:23 AM on 10/10/2011
To create jobs - and sustain these jobs for decades without adding to the deficit, Obama or the next POTUS needs to do just three things:

1. Repatriate the $1.4 Trillion already earned from US corporatio­ns overseas at ZERO rate, provided that HALF of the 35% that would have been levied as tax, be used to fund GRANTS for STARTUP companies.

2. The Startups companies that will be funded with GRANTS (not loans) and long-term tax incentives must have patented products that are truly needed worldwide.

3. The Startup companies must VOW to keep jobs in the USA.

Why Startups? Because Startup companies have NO CHOICE but to hire people asap. Don't take my word for it. Listen to the Kauffman Foundation for Entrepreneurship:

Job Growth in U.S. Driven Entirely by Startups, According to Kauffman Foundation Study
http://www.kauffman.org/newsroom/u-s-job-growth-driven-entirely-by-startups.aspx
"When it comes to U.S. job growth, startup companies aren’t everything. They’re the only thing."

Here's one Startup that vows to keep ALL jobs it creates in the USA, sustained by exports of its innovative and vital product worldwide: http://www.youtube.com/watch?v=csa459eSZr8
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HUFFPOST BLOGGER
Peter Smirniotopoulos
Saving the world 1 Tweet @ a time; HP blogger
02:20 PM on 10/10/2011
You're a little bit ahead of where I'm planing on taking my blog over the next several weeks but I appreciate your comments, particularly those relating to strategies for how the U.S. economy can create and sustain jobs in this country. I have some ideas, as well, about incentives for keeping newly created jobs from ever being outsourced, and look forward to sharing them with you and other readers as well. And while I would like to see us get away completely from including in our tax code any incentives in the form of either industry specific deductions from AGI or credits against the payments of Taxable Income, I agree that those government subsidies will need to be replaced with some form of direct investment, whether those be loans, grants, forgivable loans, or--most likely--some combinations thereof. I look forward to your comments on future posts.
08:00 AM on 10/10/2011
It's been a long time since I heard the term "social responsibility." I thought the idea was dead--glad to hear it isn't.

As for creative thinkers, I couldn't agree more. But there are obvious reasons why many do not want a thinking public--too hard to control and lie to. And our current society does not treat individuals who dare to form their own opinions, instead of just "agreeing to get along," kindly.

Peter, I look forward to your post.
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Rixar13
U.S. Coast Guard Veteran and University
09:41 PM on 10/09/2011
"I rarely find occasion to argue with Mr. Friedman's facts or logic."

I agree and wonder what happens to logical ideas like this....?
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LeftCoastEng
Obsessed with failed trade
05:04 PM on 10/09/2011
Here's another idea: reform our trade policies before our economy and country is completely ruined.