Facebook Ruminations and the Lack of Jobs in America

Browsing the Forbes Magazine Special Issue Meet the Richest People on the Planet, I found Mark Zuckerberg with a fortune of $33.4 billion as number 16 on the list. Footnote: I just tried to get you a link to this article on-line. Forbes website sucks. It is choked with video ads to the point where you can’t find the content. Click on this link at your own risk.

As of today, Facebook’s market cap is $234 billion and rising. Facebook has about 7,000 employees according to Wikipedia.

How does a company that young, with comparatively few employees, have such immense value? 7,000 employees is VERY LITTLE for a company that large and valuable. For comparison, J.P. Morgan Chase has a market cap of $230 billion, about the same size as Facebook, but it has 63,000 employees worldwide. Both Target and Wal-Mart have over 300,000 employees each and have less market cap than Facebook.

Who are the job creators in this country? Well, it’s not Facebook.

I have “used” Facebook for many years, but I cannot say that I ever paid a penny for it. Ever.

The Facebook posts inserted in my feed are always ticklers with interesting headlines that have me clicking quite often to find out more, only to be redirected to some aggregator site that is so choked up with advertisements (I have seen pages with 20 ads within the user’s view) that the actual content is very hard to find. The sites are also so cumbersome and slow, it’s painful to navigate and it’s difficult to page through the content without accidentally hitting some advertisement. This is an example from today. Click on it and see what I mean.

In summary, the ads that Facebook leads me to are so annoying that I have conditioned myself to resist even clicking on content that looks vaguely interesting.

However, Facebook does have 1.3 billion users, 800 million of who log in every day. I am one of them. I check what’s going on with my friends. That takes about 5 minutes in the morning. I finish up clearing all my posts older than a few days – so my “wall” is usually empty, and I get out of there.

So how is it that something that creates so little stuff that can be sold, that really doesn’t CONSTRUCT or BUILD anything, creates such enormous wealth for its founders and owners?

The economy of the United States is built on companies like these now. They create value, but not a lot of jobs and really no “goods and services” that are pumped back into the economy. A few people and engineers in Silicon Valley get very rich, but the middle class across America does not get jobs out of those. Apple, by far the most valuable company on the planet by a factor of two, does most of its manufacturing overseas. Few jobs in America.

For America to be competitive, for the middle class to thrive, we have to “create jobs” here in this country. And unfortunately, it’s not something the politicians can do, no matter what the loud-talkers like Scott Walker, Mitt Romney and Jeb Bush trumpet.

I have spoken, and now on this sunny Saturday afternoon, I go back to work on the stuff I didn’t get done last week at the office.

 

The Birth of a Logo

In 1822, Rowland Hussey Macy was born on Nantucket Island, Massachusetts. At the age of 15 he hired on at the whaling ship Emily Morgan. As sailors often got tattoos, and still do today, Rowland had a red star tattooed on his hand. After he left whaling at age 21, between 1843 and 1855, he opened four retail dry goods stores to serve the mill industry employees of the Haverhill, Massachusetts area. All those stores failed, but he learned from his mistakes.

In 1858 he moved to New York City and established a new store named R.H Macy Dry Goods at Sixth Avenue on the corner of 14th Street in Manhattan. On the first day of business, his sales totaled $11.08.

The tattoo on his hand became the logo of his company.

Macys

 

Germany to Ban Email to Colleagues at Night

 According to this article in Metro, Germany is planning on making emails to coworkers after 6pm illegal.

The advent of smartphones has allowed us to be plugged in and able to read work emails around the clock.

But research suggests that this is adding an extra five hours to the average office worker’s day.

That is why Germany is considering bringing in new laws that will make it illegal to email colleagues after 6pm.

The research, commissioned by the German minister for Labour, Andrea Nahles, also found a relationship between workers having constant access to their emails and poor mental health.

‘There is an undeniable relationship between constant availability and the increase of mental illness,’ Nahles told the Rheinische Post.

New legislation limiting worker’s access to their emails outside office hours could come into force in 2016, which would make Germany the first country in the world to pass such a law, although France passed a similar legislation this year requiring workers to turn off their smartphones after 6pm.

I grew up in Germany, a country that is proud of the fact that it controls what its people can and cannot do and when. For instance:

  • There is a law that controls when bakers can bake: Nachtbackverbot (prohibition of baking at night).
  • There is a law that controls when stores are open: Ladenschlußgesetz (law for closing stores)

Now the German government doesn’t like it that people email each other after normal business hours, and business hours being what the government determines they should be.

It is idiotic regulation like that, probably welcomed by a majority of the people, that hobbles industry, ensures that startups are just about impossible to succeed, squelches the entrepreneurial spirit and certainly results in Germany being ever more obscure and irrelevant on the world stage.

Rather than educating people to use technology wisely, the government plays Big Brother and tells people what can be done. If a person is stressed out about reading emails at night, why don’t they just stop reading? That would make too much sense. They rather demonize the writers. Bad, bad, productive, industrious workers!

Make no mistake about that: Brazil, India, Korea and China aren’t gagging their people and keeping them from emailing each other about work whenever it strikes their fancy. Those are the places where industry will boom, innovation will flourish and growth will abound in the coming century.

This is one of the main reasons why I am not a German anymore. It has always bothered me how the government controls everyone and everything, from when they can work, what they can do, who they can marry, what names they can give their children, and how they can modify their cars (they cannot).

I left early and have spent my life as an entrepreneur, something I could not have done in Germany.

By regulation like that, they are ensuring that the best, brightest and most driven continue to leave the country, for places that appreciate their contribution more, places like Silicon Valley, New York, and — Beijing.

Nice knowing you, Germany. I won’t email you after 6 pm. Do you feel better now?

Donald Sterling’s Stable

Donald Sterling made racist remarks to his girlfriend in his own home. Critics of the media suggest that he has a right to privacy. He does. We all do.

But he should know that in today’s world, there is no privacy. Our phone calls are monitored and recorded by NSA goobers in cubicles in Virginia. We are constantly being photographed and video recorded. Recall the plethora of pictures showing the Boston Marathon bombers. The people we think are our friends may not really be our friends. Ask Mayor Ford of Toronto about that. And then, of course, there is the privacy bomb of all time: Remember Mitt Romney’s speech in Florida about the 47 percent? That one might have killed a presidential candidacy and changed history.

But it does not really matter. I have now heard what Donald Sterling thinks and how he feels about his team. I cannot “unhear” that.

He thinks of his team of basketball players no different from what a Polo rider thinks of his horses. They are animals that are making him money. He said himself that he pays them, so he feeds them, buys them clothes, cars, houses. Just like the Polo player has to stable and transport his horses, feed them, groom them, vaccinate them, and exercise and train them.

To Donald Sterling, those who have less money than he are simply accessories. That’s how the man thinks.

If I were a stallion in his stable, white or black, I would get out fast.

Apple and Corporate Responsibility

Apple has been, for a while now, the most valuable company on the planet, with a market cap of $469 billion as of today. The next largest is Exxon/Mobil with $417 billion, followed by Google with $408 billion.

The National Center for Public Policy Research (NCPPR) is a conservative think tank based in Washington, D.C. and an Apple shareholder. At the company’s annual shareholder meeting, NCPPR’s general counsel Justin Danhof wrote in a statement before the meeting:

“We object to increased government control over company products and operations, and likewise mandatory environmental standards. This is something [Apple] should be actively fighting, not preparing surrender.”

Tim Cook, Apple’s CEO responded that environmental efforts also make economic sense. “We do a lot of things for reasons besides profit motive. We want to leave the world better than we found it.”

Anyone had a problem with that? They should sell their Apple shares.

“Get out of the stock,” Cook suggested.

Danhof’s proposal was voted down by shareholders.

Here is a company that takes no shit from pseudoscience promoters. Apple has a long way to go to clean up its act, but with this statement, my respect for Cook has just jumped up a few notches.

Facebook’s Astonishing Valuation of WhatsApp

WhatsAppFacebook just announced that they have purchased WhatsApp for 19 billion dollars. Yes, that’s 19 BILLION.

This must be the highest valuation for a company ever that I have never consciously heard of before. This is what WhatsApp does, based on their website:

WhatsApp Messenger is a cross-platform mobile messaging app which allows you to exchange messages without having to pay for SMS. WhatsApp Messenger is available for iPhone, BlackBerry, Android, Windows Phone and Nokia and yes, those phones can all message each other! Because WhatsApp Messenger uses the same internet data plan that you use for email and web browsing, there is no cost to message and stay in touch with your friends.

In addition to basic messaging WhatsApp users can create groups, send each other unlimited images, video and audio media messages.

I have used Viber, one of their competitors. It’s a good app for texting and free phone calls. When my son was overseas and didn’t have cell phone access, we used Viber to communicate, when he was in WiFi range. It cost nothing. We both just downloaded the app and off we went.

Looking at WhatsApp’s site, the main app, the text function, looks like an Apple iPhone messaging knock-off.

The company was founded only in 2009. Jan Koum, one of the cofounders, applied for jobs at Twitter and Facebook and didn’t get hired. They raised “only” 8 million dollars and now they have only 50 employees. Their app is free. They charge 99 cents per year for premium accounts. They seem to be more popular overseas than in the United States. Some of their installed base appears to be in India. They have 450 million users.

And there lies the secret: Facebook was not much interested in anything else but their user base, it seems. 450 million users is more than just about all other sites, except Facebook. This can certainly help cement Facebook’s power in the mobile space, and expand Facebook’s reach to more users, something they can’t just keep doing with their website after a certain saturation point.

If every one of their users were to pay the 99 cents annual fee (which will never happen), the company would have annual revenues of $450 million. This is not bad for a company with 50 people, not bad at all, but nowhere near justification for a 16 billion dollar valuation. Let’s put it into perspective with other companies and their market cap:

  • American Airlines: 12 billion
  • Harley Davidson: 14 billion
  • Nordstrom: 11 billion
  • Southwest Airlines: 14 billion
  • Xerox: 13 billion

This is naming just a few. These companies all have massive assets (airlines) and sell tangible goods or complex services,  and their valuations are all below WhatsApp.

Obviously, this is “bubble” value. WhatsApp is this valuable only to Facebook. Nobody else in the world would really know what to do with it.

However, the founders and employees of WhatsApp did a marvelous job to pull this off. I am impressed. Here was an interesting idea in an already fairly crowded market. They made a slick product for which there was a solid need, they focused on a very narrow mission, they kept their finances tight, and they built their user base.

Koum, one of the founders immigrated to the U.S. from the Ukraine as a child. The family made the early years work by relying on foodstamps. Koum is now a billionaire several times over.

Congrats to WhatsApp.

The Most Devious Scam of the Big Banks Yet

The Vampire Squid Strikes Again: The Mega Banks’ Most Devious Scam Yet

MegaSquidWhile we’re talking about the 1%, the big banks, and government bailout, I invite you to read this very long and detailed expose by Rolling Stone on the machinations of  the big banks. You thought what happened in 2007 was bad? Read this and tremble.

Bill Gates to Bring Cool Back to Microsoft

Bill Gates [photocredit Borowitz Report]
With the announcement of Microsoft’s new CEO, Satya Nadella, the company did some more restructuring. Bill Gates is coming back to take a more active role as technology adviser.

Since Steve Ballmer was blamed for lack of vision and sluggish execution, causing much of Microsoft’s decline, I concur that having Gates back inside the company, working technology, should be very helpful to the new CEO – perhaps.

On his very first day back on the job, Gates tried to install Windows 8.1 on his laptop, upgrading from Windows 7. But he couldn’t do it for several hours. He got Nadella to help. Still, by noon, no success. After some choice expletives, they both gave up and Gates will stay on Windows 7 for now.

I know what that’s like. I have needed help installing many a Microsoft product in my career. I can already tell, having Gates back at work at Microsoft will be great for the company. At least the install programs will be working soon!

This reminds me of what Steve Jobs supposedly said when he came back to Apple in 1996 when the company was close to bankruptcy. When his team asked him what he thought the problem was, he said: “The products suck!”

I can just see it:

Bill Gates returned to the company and he saw that the products sucked.

And Bill Gates said: Let there be cool products. And there were cool products.

And Bill Gates said: Let there be a cool CEO with a hoodie. And there was a cool CEO with a hoodie.

satya-nadella
Satya Nadella [photocredit: The Frontline]

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You Are the Product at Facebook

Facebook stock has jumped recently due to better than expected earnings. The site is riding high, and people are getting very rich from it. But it’s free, right?

Nothing is free in this world. Especially online. Always remember, if you are on a website and you are not paying for it, you are the product.

You Are the Product

I have recently paid a little more attention to the ads Facebook presents to me on the right side of the screen. That’s where it makes its money. And what is going on there has annoyed me. Here are today’s ads with my commentary:

Facebook Ads1

Remember, if a website is free, you are the product. The site is after your private data, which is sells to hucksters that are looking to make money by selling fun, xex and love.

Does Facebook really think men my age respond to this stuff? Apparently they do, because as I stated above, their earnings recently have jumped and the only way they can jump is if users like me click on these ads and then buy stuff.

Kevin O’Leary and the Distribution of Wealth

Recent news by Oxfam stated that the richest 85 people on earth – yes 85 individual people which is about a half-full Southwest plane – have more wealth than the poorer half of the world’s population. 85 people control more than 3.5 billion people.

Kevin O’Leary, famous from Shark Tank on TV, said something that made no sense to me:

“I applaud that. That’s great news. If you work hard, you can be filthy rich one day!” — Kevin O’Leary

There are so many things wrong with that statement, I don’t even know where to start.

Working hard has nothing to do with getting rich, nothing at all.

Think about the miner in a coal mine in West Virginia, who started working in the mine when he was 14, and “retired” at age 54 with emphysema with nothing to show for but a few kids who are now also working in the mine, every day.

Think about the shop girl in Bangladesh who has worked 14 hour days since she was 8 years old, in a system oppressive to women, oppressive to the poor and illiterate, oppressive to everyone but the elite who live lavishly, fly corporate jets to New York so they can shop on 5th Avenue.

Think about the workers in the diamond mines in South Africa.

Think about the high school dropout in Dallas who works at Wal-Mart for minimum wage.

Think about the Chinese peasant.

Think about the El Salvadoran who is illegally in the United States to pick strawberries in the San Joaquin Valley and lives in a hovel, so he can send his money back to his family.

Every one of these people works very, very, very hard, all the time. None of these people will every be filthy rich, or rich, or even middle-class rich. Billions of people work very hard every hour of every day. Billions.

Those billions were not lucky.

Lucky to be born in an industrialized country in the late 20th century. 85% of the world do not qualify for that kind of luck.

Lucky to be born to a family that recognized the importance of education, sound health in childhood and solid family values.

Lucky to be born to parents who were not disadvantaged, in slavery, illegal aliens, uneducated, addicted to drugs, or homeless.

Lucky to be born smart, at the right time, with the right background, with the right parents, in the right country, in good health, with the right education, in the right field.

Yes, Bill Gates (and many others I could name here) had all these factors of luck. And not to take away from Bill Gates, in addition to all these luck factors, he worked hard, he took risks, and he was competitive. He earned his success.

But I am certain that Bill Gates, if he had been born in Bangladesh in a slum today, Microsoft would not have been created.

It was not just his hard work, Kevin O’Leary. There was much more to it than that. I know you worked your way up from a modest beginning yourself. I know you worked hard, you worked smart, you out-foxed the competition, you earned what you have. It was the fact that you were born in a capitalist country at a good time in history that laid the foundation so you could do that, and be what you are today.

Being a Canadian born in 1954 was one major prerequisite – omitted in your argument.

And that’s why you look like a prick in the video above.

Hobby Lobby and Religious Choices

David Green, the CEO of the Hobby Lobby, suggests that due to mandates relating to birth control in the Affordable Care Act, he would rather close more than 500 stores in over 41 states, abandoning all these American jobs, than to comply. Apparently his Christian values are more important than his business and the livelihood and health (and reproductive choices) of his employees.

This article in Your Daily Does of Conservatism illustrates his reasoning. I have a lot of respect for a man who has built a large retail business, based on hard work, sound principles of business, moral conduct and Christian values. But I have difficulty following his reasoning. Here are some of his statements:

Being Christians, we don’t pay for drugs that might cause abortions, which means that we don’t cover emergency contraception, the morning-after pill or the week-after pill. We believe doing so might end a life after the moment of conception, something that is contrary to our most important beliefs.

It goes against the Biblical principles on which we have run this company since day one.

This makes it sound like all his employees are going to run to the store and buy morning-after pills. I venture to say that some of the 21,000 Hobby Lobby employees are using morning-after pills right now. They are currently making their private reproductive choices. If their health plan covers such drugs, does he really believe that more people out of his 21,000 employees will start using those drugs?

It seems like a stretch to me. Either a woman believes she should not destroy a zygote because it represents a potential human being. In that case, she is not likely to use a morning-after drug. Or she does not agree that a zygote is a human being, potential or not, and she will possibly make that choice and opt to use morning-after drugs. These decisions are currently being made every day by the 21,000 Hobby Lobby employees. Whether their health insurance pays for the drug can’t possibly be a big factor in that moral, ethical or religious decision.

He says:

The government is forcing us to choose between following our faith and following the law. I say that’s a choice no American and no American business should have to make.

The government cannot force you to follow laws that go against your fundamental religious belief. They have exempted thousands of companies but will not except Christian organizations including the Catholic church.

So he is actually blaming the government for the what I would call very bad business decision he is about to make. The government is purportedly forcing them to go against their faith.

Christians often quote specific bible verses to justify certain decisions and behaviors. That goes both ways though, and I wonder how they can reconcile this.

I did a quick check of my bible and searched for the phrase “put to death.” This exact phrase resulted in 80 matches. Here are a few of them along with my thoughts with respect to Green and Hobby Lobby.

The man who acts presumptuously by not obeying the priest who stands to minister there before the LORD your God, or the judge, that man shall die. So you shall purge the evil from Israel. [Deuteronomy 17:12]

This basically says that if a man does not obey his priest, the man deserves to die. What if that priest has been found to molest children? I hear that there are some of those. Does Green suggest that those few of his 21,000 employees that have not obeyed their priest should die? Why is he not following through on that bible verse?

If a man lies with a male as with a woman, both of them have committed an abomination; they shall surely be put to death; their blood is upon them. [Leviticus 20:13]

This is the famous homosexual clause that so many of our conservative lawmakers invoke damning homosexuality. Gays should die! Statistics indicate that about two to ten percent of the population is homosexual, depending on what study and statistic you want to quote. So let’s say it’s only two percent. That means that there are about 420 homosexual employees at Hobby Lobby, probably less, since they may have been driven out by a possibly homophobic company culture (I really don’t know their culture, but I would assume there might be a homophobic element given the founder’s statements). Does Green want to put those 420 folks to death? His bible apparently commands him to do so. Why isn’t he following?

And they entered into a covenant to seek the LORD, the God of their fathers, with all their heart and with all their soul, but that whoever would not seek the LORD, the God of Israel,  should be put to death, whether young or old, man or woman. [2 Chronicles 15:12-13]

Here is the one that states that  anyone who does not seek the lord, for instance an atheist, should be killed. If this were a Christian nation, I’d be put to death. I guess I am lucky to be born in the 20th century, not in the 3rd, in a nation where church is separated from state, and I can safely write this post. I wonder what Green would do with the atheists or non-Christians among his 21,000 employees. There must be some?

But if the thing is true, that evidence of virginity was not found in the young woman, then they shall bring out the young woman to the door of her father’s house, and the men of her city shall stone her to death with stones, because she has done an outrageous thing in Israel by whoring in her father’s house.  So you shall purge the evil from your midst. [Deuteronomy 22:20-21]

This is a particularly hilarious one in Deuteronomy. It gives instructions to the family to check out the bride to be and make sure she’s a virgin. If she is not, she must be stoned to death. Surely the Hobby Lobby is not checking out its maiden employees before they get married?

I am puzzled by Green’s insistence on honoring one of the more obscure laws of his religion, when there are so many other atrocious ones that he ignores, like some of these listed here. He is willing to give up the company, shut it down, lay off 21,000 people, affect thousands of suppliers, all because his health plan has to supply the option of a contraceptive choice.

Toastmasters International Makes a Huge Difference

I am an introvert. In 1994 I joined Toastmasters International. When people asked me why, I always told them that I knew that one day I’d have to give a million-dollar speech, and I wanted to be ready for it.

I was an active member of Toastmasters for about 10 years, went through their program and even won a number of speech contests. I have given many presentations, some as long as two full 8-hour-days, where much more than a million dollars of business was at stake, and I came through.

Today I can pretty much give a speech on demand. I still get the butterflies, everyone does, but I can control them and come out with success. Toastmasters has made that possible for me. I cannot imagine a business career where Toastmasters does not play an important role.

Here is an example of a presentation or speech that did not go so well.

Michael Bay is a successful movie producer of Armageddon, Pearl Harbor, and the Transformers film series. But success does not a speaker make.

Watch this and cringe. This is what we have Toastmasters for.

Wal-Mart – Evil Empire or Opportunist?

This is a scene in front of one Wal-Mart on Thanksgiving night. People line up to get in, and when the doors open, the stampede starts quickly. The guards are simply overwhelmed.

American consumerism has gone amuck. We line up, jump barriers and get into fistfights for the privilege to buy a toaster, a television set or a video game. We have created a society of consumerism completely absorbed by commercial goods.

Wal-Mart pays its employees an average of $8.80 – it’s the largest employer in the country and one that pays the lowest. Of the goods sold at Wal-Mart, more than 90% are imported. More than 70% of all the stuff Wal-Mart sells comes from China. Estimates are that over 10% of all job loss in America in the past decade was due to Wal-Mart alone.

Yet, our young people line up at night on Thanksgiving to spend their dollars (earned or welfare) at Wal-Mart, which sends the money directly to China – after it pays its employees $8.80. The rampant consumerism, the shipping of manufacturing to China, the extension of the welfare state in America, the lack of education of your young people and the loss of real values, common sense and dignity will bring this country down, if it hasn’t already.

At the same time, there are protests at Wal-Mart and other retailers about their low wages and the extended hours imposed on employees, particularly during the holiday season. Protests may get our attention for a few minutes. A much more effective strategy would be to simply stop shopping.

Do you think that Wal-Mart would notice that it was not smart to make people work on Thanksgiving day if nobody showed up to shop? The doors would close quickly. Wal-Mart is not the evil giant that we make them out to be. Wal-Mart is simply an opportunist.

Wal-Mart can pay $8.80 because there are plenty of people willing to work for $8.80. Wages won’t go up until they can’t find people anymore willing to take these jobs. Wal-Mart can sell Chinese stuff and send our money to China because we’re willing to stand in line to give our money to them.

Stop working for Wal-Mart, stop shopping at Wal-Mart, and things will change quickly.

Kleargear.com – Watch What You Sign

KleargearThis company (www.kleargear.com) may have ruined online commerce for me. I have been a proponent of online commerce. My company is delivers its product online. We don’t happen to sell stuff, but we provide our services online. So I support the concept.

Kleargear looks like a cool place. They sell neat novelties. It looks like their stuff is great for gifts. If I stumbled upon their site, I’d want to buy things.

Then I found out that when you buy something from their site, you have to consent to a number of clauses before you can purchase. Ok, what’s wrong with that?

Well, one of those clauses, according to a Mark Frauenfelder on BoingBoing, is this:

Non-Disparagement Clause

In an effort to ensure fair and honest public feedback, and to prevent the publishing of libelous content in any form, your acceptance of this sales contract prohibits you from taking any action that negatively impacts KlearGear.com, its reputation, products, services, management or employees.

Should you violate this clause, as determined by KlearGear.com in its sole discretion, you will be provided a seventy-two (72) hour opportunity to retract the content in question. If the content remains, in whole or in part, you will immediately be billed $3,500.00 USD for legal fees and court costs until such complete costs are determined in litigation. Should these charges remain unpaid for 30 calendar days from the billing date, your unpaid invoice will be forwarded to our third party collection firm and will be reported to consumer credit reporting agencies until paid.

Would you really continue to purchase from a company that had this clause in front of you? Hell, I would RUN fast and far. It would simply not be worth it to me. But I am not sure I would even see this in the buying process. Knowing me, I’d blindly blow right past it and hit “Buy Now.”

Here is what they apparently do: When you post a negative comment in a review site of any type, or on a blog, or on Facebook, they send you an email giving you a 72-hour warning. If you don’t heed the warning, they send you an invoice for a $3,500 fine. If you don’t pay the fine, they report the amount due to collections and report you to the major credit bureaus, which of course ruins your credit, and your ability to buy a car or a house at reasonable rates, if at all.

Check out the horrifying story of Jen Palmer here. This actually happened to her, after buying something three years ago at Kleargear. Apparently, the company sometimes does not ship the goods or ships bad goods. Reviewers claim that there is no way to ever get through to a human being when contacting support. Apparently they don’t answer the phone or respond to emails.

If you google “kleargear sucks” or “kleargear scam” you will quickly see that many people consider the entire business one big scam. Here is just one of the review sites that will give you the willies.

Here is another outrageous review on ComplaintsBoard.

The bottom line is, the moment you hit the “buy” button on Kleargear, you are at their mercy. If you happen to receive your order and you are happy, congratulations. But if anything goes wrong, you’re stuck. They apparently keep your money and don’t answer the phone or email. If you complain online, anywhere, anyway, and they find out about it, they send you a bill for $3,500 to punish you. If you don’t pay the bill, they come after you and they ruin your credit.

Way to do business!

Why do I think this could ruin online commerce? Because I have bought many things at many sites, and I don’t always read all the terms and conditions before I buy. I tried to find the non-disparagement clause above in their site’s terms and conditions just now, and I could not find it. It looks like a legitimate site. The only way I apparently would come across this clause is if I actually went in and bought something. But I must admit, once I make a buying decision for a novelty gift, I don’t go and read a bunch of terms and conditions. I put in my credit card number, or my PayPal account, and I click “Buy Now” and be done with it.

I had my own bad experience with MobilityPass about four years ago, where I spent about $200 on a product and service that never worked. Search for MobilityPass in this site and see all my related posts. I never got my money back, after everything I tried. I was screwed by a scammer. And the scary thing is, four years later, they are still out there at http://www2.mobilitypass.com.

Companies like this ruin it for all the legitimate small businesses that want to sell online. I want to trust my suppliers. Weary consumers will simply retrench and go to Amazon, where they are assured of good prices, flawless fulfillment, great return policies and overall good quality of service. That’s why Amazon, and trusted sites like it, are taking over the retail world.

Is Kleargear a scammer like MobilityPass? I don’t know. But I am not going to find out.

ObamaCare: How Not to Build a Website

I think the reason why the website for ObamaCare glitched is because Controltec didn’t create it…

This is a real quote by one of our state government customers to our support center.

When I heard that I was honored. Our company has been building and hosting web-based systems for governments for over 15 years. That’s what we do. That’s what people pay us for. That’s why our company is there. Having one of our customers, even in humor, make a statement like the one above makes me feel proud.

And then it made me think about the Affordable Care Act.

Many things went wrong. The news that insurance companies are now canceling the existing policies of millions of people, no matter what the reasons, is not good for the Administration. The fact that prices for policies are higher than expected also does not help. There are many, many contributing factors that make this law controversial, and I don’t think I need to list them here. The talking heads are full of it. Just watch Fox News for a few hours on any day and you will get your fill.

With all the controversy, all the uproar about the Affordable Care Act, one thing the Administration didn’t need was a web site that didn’t work. This gives fodder to the critics, validates their claim that “the government” can’t manage anything, let alone a health care program. And I have to say: they are right.

The website fiasco, for one, was avoidable. How much better would the lives of the Administration and its supporters in Congress be if the federal website had come up on October 1 and run flawlessly?

The evidence shows that the site was put together with inferior coding, possibly based on outdated technology. Error messages relayed personal information over the Internet without secure encryption. People were able to bypass the email verification system. These are flaws that any entry-level hacker could quickly exploit and get access to private accounts to harvest personal information. The database is meanwhile riddled with mistakes and duplicated data records, resulting in multiple cancellations and enrollments. Records don’t have timestamps, so there is no telling which records are the correct ones and which are duplicates. These flaws are just some of the obvious things that made it into the news media.

The government put the Department of Health and Human Services in charge of designing and building a major web site using a host of government contractors. The Department of Health may know something about health, but it’s not equipped to build a major web site.  It also is not efficient at managing corporate entities. I am pretty sure that the contractors, for the most part, knew what they were doing, but the leadership and attention to detail at the highest project management level was probably sub-par. The result is a system based on faulty design, implemented with outdated technology, poorly tested and therefore overall not functional.

Fixing something like this is a nightmare. If the castle is built on a sandy foundation, it will sink and crumble, no matter how many reinforcements are installed into the walls.

The Administration has now put out a call for new contractors and Silicon Valley talent. I wonder what happened to the hundreds of millions of dollars paid to the old contractors? I don’t want to ask.

But Silicon Valley talent isn’t going to fix this. The only way to really make it work is tear it down and start with a new, solid foundation.

The sad thing is that this COULD have been done right from the start. There are companies that know how to build a major site that does not go down. Facebook, Twitter, Amazon and Google are some of the obvious ones. Have we ever seen those go down? When Twitter went down for just part of a day, the whole world was a-flutter. I cannot remember Facebook ever not responding when I checked in. Amazon seems to be there any time I want to buy something. This stuff does not have to be created from scratch. In this country we have the resources and know-how to make world-class sites.

It’s just that the government is not smart enough, nimble enough and flexible enough to avail itself of this talent and capability. It’s mired in stodgy procurement practices, weird contracting rules and endless delays. Things get done at a snail’s pace, and the creativity and the pride is often lacking. Bureaucrats know how to churn red tape, but they don’t know how to make competitive, slick, efficient systems.

The government should not be in the business of managing and building websites, just like it shouldn’t be building its own fighter aircraft. It should leave those things up to the people who know how to do that effectively and competitively.

Obama must be furious. At first he got away with the excuse that the site went down because of its tremendous popularity. On October 4 he said that the site was overwhelmed by volume. But by now he has given up on that story. “Nobody is madder than me about the fact that the website isn’t working,” he said.

If I ran a moving company and took on a contract to come to your house at 7:00am to start loading up, and I showed up at your house with my moving truck pulled by a tow-truck, because it was broken down, would I inspire your confidence?

This is exactly what happened to Obama with this website.

Obama didn’t need this. He should have delayed the launch by a year. This would have given the opposition more reason to decry the effort, and more ammunition and time to shoot it down, but it would have been infinitely better than this catastrophe.

Everything else could have been overcome. This website is a disaster, and it’s going to take a long time before it’s right.

Read my lips.

[attribution: some of my facts come from the article in Time Magazine of Nov 4, 2013, page 12]