2011 has been the year of Bill Gates bashing

From government criticisms to former co-workers, 2011 was a year full of unusually sharp and personal criticism of Bill Gates.

First of all, Governing Magazine ran a front page cover story about billionaires meddling in the classroom with the photo of a sneaky Bill Gates peering from the corner. The article represented a teacher backlash to Gates’ $400 million annually worth of education initiatives . In fact, the Gates Foundation devotes $75 million to policy-related advocacy, a significant figure for a “philanthropic” organization and one that enables Gates to wield influence in nearly every major area of education policy. One critic said that top officials in the U.S Department of Education have become so influenced by Gates that “it’s not too great a stretch to say that the Gates Foundation is, in effect, running the Department of Education.”

Also, this year saw the biography release of Apple co-founder, Steve Jobs, who did not withhold back any of his criticisms challenging his creativity and his ethics. “Bill is basically unimaginative and has never invented anything, which is why I think he’s more comfortable now in philanthropy.” Perhaps to compensate for his own limitations, Gates, said Jobs, “just shamelessly ripped off other people’s ideas.”
One could perhaps chalk Jobs’ estimation of Gates up to a casualty of healthy competition—the battle of ideas and wills in the pursuit of market dominance. After Apple popularized the personal computer in the mid-to-late 1970s, Microsoft quickly entered the personal computer marketplace. Teaming up with IBM hardware, its Windows platform enjoyed near total market dominance for decades.

The Gates criticism closest to home came from long-time friend and Microsoft Co-Founder Paul Allen who published an autobiography. Allen accused Gates of scheming against his interest in Microsoft during a personal health crisis.

Allen and Gates became friends in high school and eventually attended Harvard together. During college, they teamed up to create Microsoft. Because Gates dropped out of Harvard to devote full-time to the new company, Allen agreed to be the junior partner and accepted 36 percent ownership to Gates 64 percent.
Sometime in 1982, Allen overheard a conversation between Gates and current Microsoft CEO Steve Ballmer during which Gates complained of Allen’s recent lack of production and hatched plans to undermine his interest. That conversation took place shortly after Allen was diagnosed with Hodgkin’s lymphoma—a life threatening form of cancer.

For his part, Gates has his own opinions of both Jobs’ strengths and weaknesses, as well as Allen’s interpretation of events in 1982. As for controlling how his $400 million in education funding is being spent, Gates understands how quickly enormous amounts of education dollars can be wasted.

Criticism or no criticism, Bill Gates will continue to wield power and influence for years to come. Some of those years will likely be kinder to him than 2011.

In the Fall, he was on the front page of Forbes magazine for their profile on the world’s most powerful people. The interview highlighted the positive influence his charity has had on other charities around the world. That may well be the enduring legacy of Bill Gates.

Billionaire and Microsoft co-founder Paul Allen has turned his attention and money to an endeavor that has eluded corporate and government rocket scientists for decades: launching satellites into space from and ascending aircraft. Allen plans to inject $200 million of his own money for the project, which he hopes will usher in “the dawn of radical change in the space launch industry.” as stated to BusinessWeek.

Currently, satellites are hurled into space through conventional rockets that launch from a ground pad. Instead of ground launches, Allen envisions satellites and eventually human space vehicles launched from an airborne “mother ship” created from older Boeing technology and the latest cutting edge booster designs. The aircraft would be comprised of twin fuselages and feature six Boeing 747 engines. A rocket would rest underneath between the fuselages, launching after a sharp climb that would commence once 30,000 feet had been reached.

Costs to launch satellites into orbit from a ground launch pad currently run between $30 million and $200 million. If successful, Allen’s plan to utilize recycled Boeing airplane technology could result in significant savings for aerospace companies and the government. Additionally, ground launches are subject to weather fluctuations and rely upon optimal times and location to reach specific orbits—virtual non-factors in air launches.

Can Allen’s plan work? Time will tell. Scientists have been working on the principles of air launches into space for 20 years or more. To help him succeed where others have failed, Allen has enlisted the help of credible and influential partners, including former senior NASA official Gary Wentz and esteemed aerospace engineer Burt Rutan, who originally conceived the current aircraft design.

As the economy continues to sputter, U.S consumers have increasingly cut spending and embraced bargain shopping as a way of life. New data, however, suggests that recent fixtures of American frugality may be on the way out.

Daily Deals hitting peak

Studies indicate that the once booming “daily deal” industry by Living Social and Groupon may be losing steam. Facebook and Yelp once aggressively embraced the business model are now cooling to or spurning it altogether. And major players like Groupon and Living Social have experienced sharp declines in unique visitors in recent months. Living Social, for example, saw its unique visits decline by nearly 30 percent from June through July 2011.

According to a recent survey conducted by PriceGrabber, the proliferation of players in the “daily deal” market may have induced consumer fatigue. Of those surveyed, 52 percent of U.S. “daily deal” users say that they’re overwhelmed by the volume of deals they receive, and 60 percent believe the industry is too crowded.

The pace at which enthusiasm for “daily deals” is declining may largely be a consequence of too much market noise. It nonetheless offers insight into the willingness of even cash-strapped consumers to sift through multiple solicitations in search of a bargain.

Netbooks decline

Enthusiasm for relatively inexpensive personal computers (PCs) also appears to be waning. Despite ongoing improvements to PCs—portability, size, sophistication, and cost—sales are trending downward in leading countries, including the U.S. Alternatively, consumers are increasingly willing to spend more money for the convenience and power of tablets, like the iPad, even though they cost twice as much as a netbook, its PC rival.

Last quarter likely marked a turning point in the tablet/PC competition and established a “new normal” for the future: for the first time ever, tablet sales surpassed netbook sales, jumping 112 percent to nearly 14 million. Sales of netbook PCs, which on average cost half as much as tablets ($300 versus $600), declined by more than one million (7.3 million) over the same period.

As with certain kinds of technology, U.S. consumers are also paying more for clothes, toys, and other household items. That trend, however, is less a function of choice than global economic forces driving costs to figures not seen since the early 1990s.

China goods see price increase

Domestically, few things have been as economically predictable as the abundance of cheap Chinese goods. But that may be changing, as well. China’s growing prosperity and accompanying wage increases in recent years have driven the prices of many products upward. Price inflation appears to be accelerating. Clothing prices, for example, were still 9 percent lower this past spring than in 1991. Six months later, prices are now only 5 percent lower—a sharp rise in an overall upward trend beginning in 2007 when clothing prices bottomed out.

If the trend continues and the days of inexpensive Chinese products become a thing of the past, consumers who hope to save money on a range of everyday goods may be forced to look elsewhere for savings. “Daily Deal,” anyone?

Shoplifting appears to be a growing problem for America’s retailers, and thieves are growing in their sophistication. That’s according to the Retail Industry Leaders Association, a prominent industry trade group that recently released its annual report detailing the latest trends in retail industry related crime.

According to RILA’s report, individuals acting alone and organized crime rings are targeting retailers with growing frequency— up 41 percent and 60 percent, respectively, from last year.

Though not surprising, the increase in retail related crimes such as shoplifting and gift card fraud stands in sharp contrast to recent declines in violent crime statistics. Violent crimes dropped dramatically last year by 12 percent, a figure that has surprised many experts who predicted such crimes would only increase as the economy continued to struggle.

The most popular items lifted include computer books, televisions, iPods and other Apple products, and Blackberry devices. More run-of-the-mill products are also favorites, such as razors, shampoo, cigarettes, air fresheners, over-the-counter medications, and Crest white strips. These and other items increasingly appear in the online marketplace as thieves try to resell them for a profit. In fact, 61 percent of retailers saw an increase in the number of stolen goods making their way online.

Among other things, retailers say that organized theft rings are using increasingly sophisticated methods to ply their trade, including social networking sites, improved communication devices, and iPhone applications enabling instant upload to online sellers’ accounts.

Given persistently high unemployment and the sagging economy, however, the increase in shoplifting hasn’t caught most retailers off guard. And many stores have stepped up their efforts to prevent and pursue shoplifters. Those efforts include developing better partnerships with local law enforcement and other retailers. Stores have also devoted more resources to monitor social networking activity. The use of Facebook, for example, has been highly effective in tracking criminals, some of whom publicize exploits and give clues about their next move. Perhaps one of retailers’ best weapons against shoplifting is good old fashioned customer service. Eighty-five percent of retailers reported “customer service” to be an effective shoplifting deterrent.

Of particular concern to individual stores may be the increase (44 percent) of their own employees shoplifting or helping organized groups gain access to goods. Employers are more actively screening potential employees and building cultures of integrity through orientation and training programs. Interestingly, RILA’s report seems to indicate that the better retailers treat and pay their employees, the less likely employees will steal from them.

Honest consumers can help, too. While criminals increasingly rely on technology, most still use time tested methods such as lookouts, grab and exit, get-a-way cars, and multiple distractions to succeed—all of which alert shoppers can notice and report to the store manager.

The latest U.S. Post Office TV commercial is trying to get the public to take a great leap backwards by not engaging in online transactions. The Post Office commercial tries to strike a wedge between online and postal commerce by using the security card. Here is what the post office TV commercial says as it shows families putting important letters on the kitchen refrigerator and corkboard:

“A refrigerator has never been hacked. An online virus has never attacked a corkboard. Give your customers an added feeling of security of printed statement that a receipt provides. With mail.”

On one hand, the Post Office is doing the right thing by finding reasons for customers to change their behavior and switch. Security is a good reason. But the question arises on whether consumers will view it as a complete reason. Is not mail subject to identity theft just as much as online transactions? Another question that came to mind while watching this commercial is this effort trying to stop an unavoidable technology trend. While other post offices from other nations have chosen to expand services as a way of adapting to the times (cell-phones, email), it looks like the U.S. Postal Service is attempting to pull customers back from the future. This ad campaign seems like a huge risk to the Post Office. The results of risk taking may prove beneficial as the final verdict is the sales numbers after teh TV ad has run.

See the Post Office Commercial Here

Annual Small Business Summit Oct. 2-4
Every year the NFIB/Oregon Small Business Summit gets better, and this year’s will be no exception. The 2011 gathering will be packed full of in-depth policy discussions and other important topics relating to small business.

Last year’s Summit drew members and guests from all over Oregon who discussed small business issues with State Sen. Chris Telfer and State Reps. Bruce Hanna, Dennis Richardson, Judy Stiegler, and Gene Whisnant. The keynote speaker, Jonathan Williams, director of tax and fiscal policy for the American Legislative Exchange Council and co-author of Rich States, Poor States, wowed attendees with brilliant analysis of where states across the country went wrong and why they find themselves in the dire straits they are in today. He also explained why ALEC’s economic forecast ranked Oregon near the bottom at 41.

This event is open to anyone interested in Oregon’s Economy, Policies and Small Business.

EVENT AGENDA
Sunday, October 2nd
Welcome Reception with Rep. Gene Whisnant

Monday, October 3rd
Public Policy & Regulation Panel

* Senator Ted Ferrioli – Environmentalism
* Senator Chris Telfer – Government Regulation
* Representative Mike Schaufler – Getting Oregon Back to Work
* Jon Chandler, CEO Oregon Homebuilders Assoc Oregon’s Construction Industry – Past, Present & Future

Lunch with Keynote Speaker, Jonathan Williams – ALEC and Co-Author of “Rich States, Poor States” 2011

Healthcare Panel

* Dr. Robert Graboyes, (MSHA, PhD), Senior Fellow for Health and Economics for the NFIB Research Foundation “Federal Healthcare Reform: The Search for Sasquatch”
* Rocky King, Interim Director Oregon Health Insurance Exchange

“Business at the Speed of Now” – John Bernard, Entrepreneur & Author

Tuesday, October 4th
State of Oregon Small Business Panel

* Cheryl Myers, Office of the Governor, Director – Economic & Business Equity
* Dwayne Johnson, Chair – Oregon Small Business Advisory Council

Oregon’s Budget & Revenue – Representative Dennis Richardson – Member, Oregon’s Budget Committee

NFIB’s Worker’s Comp Insurance Program – Jeff DeHaan,

“The Art of Perseverance” Rip Caswell, NFIB Member & Renowned Artist

Agenda subject to change without notice.

Join us :
• Sunday, October 2 – Reception, 5:00 p.m. (NFIB/OR Leadership Council meeting earlier in the day)
• Monday, October 3 – Oregon Legislative Issues, 8:00 a.m. – 4:00 p.m. Evening Annual Appreciation Dinner 5 – 8 p.m.
• Tuesday, October 4 – State and Federal Issues, 8:00 a.m. – Noon Conclusion

NFIB/OR has negotiated special rates for lodging at the beautiful Sunriver Resort, pictured below. Details can be found on the RSVP form at www.NFIB.com/OR . For more details or to be more involved with NFIB/OR contact Stacy Jenkins or toll free at 866.307.2846.

Nike has produced 1500 pairs of replica shoes based on the pair that Michael J. Fox wore in the 1989 movie Back to the Future II. The shoes are available on Ebay until September 18. They have sold there for prices between $3,500 and $10,000. At a live auction last week, British rapper Tinie Tempah paid $37,500 for a pair.

All proceeds are being donated to the Michael J. Fox foundation for Parkinson’s disease research—plus, Google’s Sergey Brin will match all proceeds up to $50 million through the end of next year.

The shoes contain LED panels, the word “Nike” on the strap glows. The batteries last for about five hours per charge.

Tinker Hatfield, who worked on the original shoe for the movie, created the new version. According to Nike, the shoe’s being released meant it was no longer “the greatest shoe never made.”

The number of farmers markets selling fresh, locally and regionally grown produce grew significantly over the past year. According to the 2011 National Farmers Market Directory recently released by the U.S. Department of Agriculture, more than a thousand new farmers markets were added this year, bringing the total reported number to 7,175—a 15 percent increase from 2010.

Well established in far West and Northeast states, farmers markets are rapidly catching on in popularity in other parts of the country. The biggest growth occurred in states as diverse as Alaska, Texas, Indiana, South Dakota, and Colorado. California currently has the most farmers markets at 729. According to the Oregon Farmers’ Markets Association, there are currently 111 farmers markets operating across Oregon—well behind North Carolina, which has 217 to round out the top 10 list of states with the most farmers markets.

The directory was released in advance of National Farmers Market Week, which runs from August 7-13. Among other things, farmers markets appear to be growing in popularity across socio-economic groups, and an increasing number of markets even accept government food benefits. Consumers interested in researching local farmers markets can access the report directly at http://farmersmarkets.usda.gov.

Click HERE to read more…

An accidental fire at the historic View Point Inn and Restaurant overlooking the Columbia River Gorge left the Inn’s future in limbo. The fire apparently started when a spark from the chimney ignited the roof on July 10, closing the Inn indefinitely. Co-owner Geoff Thompson and his partner, Angelo Simione, hoped to rebuild the Inn, but financial woes quickly quashed their dream.

Geoff Thompson filed for bankruptcy in late June to prevent selling the inn in a foreclosure auction. However, after the fire, Thompson lost control of the inn when the bankruptcy court converted his Chapter 11 bankruptcy filing, which allowed him to continue running the inn with protection from creditors, to Chapter 7, which allows a trustee to take over and liquidate the debtors’ assets.
After losing the Inn, the Portland Business Journal reports Thompson’s debts total $2.92 million to his top 20 creditors. The creditors include former employees of the inn, who are seeking thousands of dollars for unpaid wages through the Oregon Bureau of Labor and Industries.
Despite Thompson’s financial troubles, he quickly pointed his finger at Representative Matt Wand, who participated in the bankruptcy hearing while representing Steve Serafini, a creditor who Thompson owes about $200,000; and Dick Wand Construction, which Thompson owes around $20,000 to $30,000 in principal, interest, attorneys’ fees and collection fees. The Portland Tribune reported that Simione and Thompson blasted Representative Wand for killing their dream of keeping the Inn.
The Portland Tribune also reported that Representative Wand said his uncle, Dick Wand, performed $10,000 in construction at the inn four years ago but never received payment. With the sky high debt, the historic landmark’s future is grim.