A free market would have saved his life

Mohamed Bouazizi was described as an unemployed 26-year-old university graduate who lived in Sidi Bouzid, Tunisia. On December 17, 2010 he snapped. He grabbed a gun and sprayed a barrage of bullets on a gathering organized by his government representative--no, wait! That's not his story. Let's see... he snapped - bought a gun, went to his university, emptied a magazine in a classroom full of students and then turned the gun on himself... hm... doesn't sound right, either.

Maybe this is it: Mohamed snapped - he left his family and joined the Al Qaeda Organization in the Islamic Maghreb. On December 17 he put on a suicide vest and walked into the crowded city center of Sidi Bouzid...

Mohamed Bouazizi is dead now.

Mohamed is indeed dead, but his story isn't either of these. Mohamed's story is different and, unfortunately, already forgotten. It goes like this:

Mohamed Bouazizi was 26-year-old university graduate. He grew up in a white stuccoed house, on a dirt road near the edge of Sidi Bouzid. [1] After finishing college he couldn't find a job in his field of study. But he was unemployed only in the sense that John Jacob Astor was unemployed when he was roaming the woods of Northern Michigan.

This Mohamed, not unlike John Jacob Astor, was a trader - he sold fruits and vegetables from a cart in his hometown. He took initiative, put his own capital at risk, exerted effort humbly (he was, after all, a college graduate selling produce on the street) to earn a meager living. Thus he supported his family. Mohamed provided fresh food to the people of his town and by competing with the other sellers he helped keep prices low for all consumers.

Just because nobody in Tunisia offered Mohamed Bouazizi a job, he did not jump on a boat to immigrate to Italy or France, as many of his countrymen did. Nor did he spend his days idly at the town's coffee shops or tea houses lamenting his plight. He didn't join Al Qaeda, much less strap on a suicide vest. He became an entrepreneur.

"Mohamed hoped most to buy his own van," said his sister, Samia Bouazizi, 19. "But he wanted it for work, not for himself." [1]

On December 17 the authorities approached Mohamed, told him he did not have the right to sell vegetables because he did not have a permit, and confiscated his inventory. Mohamed snapped - he got some gasoline, poured it over himself, and set himself ablaze in the main city street. He died from his burns two weeks later.

Mohamed Bouazizi's self-immolation has sparked nation-wide protests in Tunisia with police murdering dozens of protesters, and the unrest has forced the president Ben Ali to flee the country. The political turmoil is now the lead story.

But this simple fact remains: if Tunisian police had left alone Mohamed Bouazizi to sell his fruits and vegetables he isn't likely to have set himself on fire. Perhaps one day he would have earned and saved enough to buy a beat-up old van. With that old van he would have been able to bring more fruits and vegetables from farther away, providing greater variety, and possibly lower prices, to the people of Sidi Bouzid. He may have even made a little more money for himself and his family. Then maybe he could have bought a newer van, and then another. And as the little business grew, he may have needed to hire a couple of sales people to work his fruit stalls. And then he may have needed someone to keep track of the books, and hired a young Tunisian with an accounting degree, and then maybe somebody with a marketing, and then with operations degrees... And maybe then he would have hired an architect, and a builder, and borrowed money from a bank to build a refrigerated warehouse on the outskirts of town. The architect would have made some money, and so would have the builder, and the bank, and all of their employees... And so it goes.

Laissez-fiare, in plain English, means simply "let Mohamed sell his produce." That's the free market. If you think it sounds like a fantasy, read John Jacob Astor's story. For the alternative, read the news from Tunisia.

Government logic

The US House of Representatives has passed two bills that affect auto dealers, reports Automotive News today.

The Dealer Arbitration Bill is described as giving the 2,150 auto dealers whose franchises were canceled by GM and Chrysler more favorable terms in the arbitration of their disputes with the automakers. So the government decides to interfere in this business dispute not by establishing a mechanism for impartial resolution, not in support of its own to companies involved in it (GM and Chrysler), but by tilting the field against them and in favor of the dealers.

The second bill is the 1,279-page financial regulation legislation, which would create the Consumer Financial Protection Agency. Its intent is to protect consumers from making bad financial decision by regulating the sources of financing, such as mortgages, credit cards, etc. Given that the second largest financial transaction for most Americans is the purchase of an automobile, and that dealers are the biggest targets of consumer complaints about financing, one could expect the new law to regulate dealer financing as well. Not so--the bill excludes dealers-assisted financing from this regulation.


If your politics lean to the left, you're likely to accept the first bill but be appalled at the omission in the second. If your politics lean right, you would likely disprove of both. If you're an auto dealer...

Also today Automotive News reports that all of Toyota's North American factories are running over time to keep up with demand. Hm... if you're an auto dealer you might just want to get a Toyota franchise.

Moore and Me

Today (4/1/2009) Michael Moore (the same one of "Roger and Me" and "Fahrenheit 9/11" fame) posted a letter on his website addressing the Obama's administration involvement with the US auto industry. The letter starts by suggesting that it is very inappropriate for the President of the United States to interfere directly in the business of a private corporation. It's April 1st, after all, and the punchline comes soon enough:

" 'What are we going to do about this Obama?' Not much, fellows. He has the massive will of the American people behind him -- and he has been granted permission by us to do what he sees fit."

President Obama may have the massive will of the American people behind him, except, apparently, the will of the workers at the GM Powertrain plant in Ypsilanti, MI. A relative, who drives an eighteen-wheeler, was in the plant yesterday to pick up a load. He said that the workers were so angry, frustrated, even distracted by the decision of the President (of the US, not of GM) that they loaded his truck with the wrong parts at first.

Furthermore, and Mr. Moore should know this since he has a picture of the US Constitution on his website, right above the title of his letter, the President of the United States has not been "granted permission by us to do what he sees fit." He was only elected by us to "... faithfully execute the Office of President of the United States, and ... to the best of [his] Ability, preserve, protect and defend the Constitution of the United States" (the Oath of office). Article II of the US Constitution spells out what the president can do, such as appointing ambassadors, cabinet members, even Supreme Court Justices, but nowhere does it say appointing CEOs or firing them.

Michael Moore's point later in the letter is that after all these years when GM presidents (starting with Roger Smith) laid off thousands of hard working auto workers, someone finally gave a pink slip to the president of General Motors:

"Not one of them ever thought that one day they would witness the CEO receive the same treatment. Of course Chairman Wagoner will not have to sign up for food stamps or be evicted from his home or tell his kids they'll be going to the community college, not the university. Instead, he will get a $23 million golden parachute. But the slip in his hands is still pink, just like the hundreds of thousands that others received -- except his was issued by us, via the Obama-man. Here's the door, buster. See ya. Don't wanna be ya."

Don't wanna be ya? Mr. Moore seems to miss his own point: the laid off GM workers struggled precisely because they lost their source of income. Most laid off workers would rather be Rick Wagoner with his $23 million golden parachute.

This doesn't seem to be the first time Michael Moore misses his own point. In Roger and Me (watch the movie - it's great!) he spends half the time outlining the struggles GM is facing as it attempts to adapt to global competition (which, if it had done successfully, would not have caused GM to be facing bankruptcy today) and the other half on the failures of the Flint city government to bring about economic development. It seems lost on him that while he is asking government to solve economic problems he is exposing precisely government's inability to solve economic problems.

But the points above are merely philosophical. As a practical matter, take a look at these Time magazine articles on two cars made by government-run factories: Trabant and Yugo. Though they weren't particularly environmentally friendly, they got excellent gas mileage, and with today's advanced catlytic converter technology and the right government mandates, we could make them as clean as Prius.

Lights out - now we need the light bulbs on

It was sad to see the beautiful Chrysler headquarters building outside Detroit seemingly deserted when I passed by it last Saturday evening. While office buildings normally leave many of their lights on 24/7, the only lights visible that night in the glass and steel Chrysler tower were the faint emergency exit lights. I figured it must be some cost saving measure (it is), but the momentary thought that the building might actually be vacant was jolting.

Chrysler is an American institution. Founded in 1925 by Walter P. Chrysler, the company introduced numerous innovations, many of which became industry standards. Walter Chrysler was a manufacturing and engineering genius who cut his teeth in the locomotive building business before switching to automobile manufacturing. The company is one of the "Big 3" American automobile manufacturers that survived competition and consolidation in the industry that saw literally hundreds of companies go out of business since the 1920s. None of this, of course, mandates that Chrysler must survive the current economic turmoil. On the other hand, the possible demise of this venerable American corporation is neither necessary, nor necessarily helpful.

It would be really sad, I think, if Chrysler ceases to exist. Not just for sentimental reasons, either. But the current artificial life support, the government loans with their strings attached, may not be the solution to bringing Chrysler from the brink of extinction. It seems to me that now is the time to open the floodgate for all kinds of creative ideas, as many as possible, from anywhere across America and around the world. I teach my students that modern corporations must be learning organizations in order to survive the global competitive environment. Now is the time for Chrysler to become a learning organization- to plug into as many people and other organizations as possible, to plug into any source of ideas that might flame the creative sparks, which might lead to new, innovative, creative solutions for its current predicament.

There are thousands of business and engineering school students who crave for an opportunity to put their minds to work on really challenging real-life cases, there are tens of thousands of workers (and former workers), with their ears (and noses, and eyes) close to the ground who have perspectives and experiences that the corporate executives lack, there are civic organizations and others, thousands, if not hundreds of thousands, who may be interested in solving a challenging problem like bringing Chrysler back from life support. Thomas Friedman would call this "open source innovation." It's possible, it's doable, it's a bit crazy, but it's the way the knowledge economy (fyi: that's today's economy) works. The real question is, can Chrysler plug into, and manage, such an open source innovation model, or will it just wait to hear for whom the bell tolls? Alas, the answer is out there: Its own blog rules state:

1-In the spirit of honest, free-flowing conversation...
...
11-The blog is not intended as a forum for outside suggestions, including but not limited to those which pertain to vehicle design, product attributes, marketing or advertising, and no such material will be posted.

Yes, I know, the Chrysler blog is just one out of many possible ways to plug into the open source innovation 'thing' in this flat world of ours, still... The company saves a few thousand dollars by turning the lights off at night, but what it really needs is to find a way to turn lots of light bulbs on if it should have any hope of survival. In the spirit of honest conversation, I'd like to help you out, Chrysler, really, but my entire lifetime tax dollars just went to the guy sitting over there, in the dark corner of the AIG executive cafeteria. Sorry, all I've left is advice.

DART-ing to the airport (Part 2)

(In the spirit of Christmas, I write this post with gratitude to my neighbors who were forced to finance about 3/4 of my public transit trip. Thank you! Read part 1 here. )

...The only notable observation as the train emerged from the tunnel into downtown was a yuppie couple walking their dog. Dallas has been making an effort to bring residents back into the downtown area with some success.

At Union Station downtown I had to switch from the DART light rail to the TRE (commuter train heading to the airport). I had never been to Union Station in Dallas and was not sure what to expect. Fortunately, all trains run on only two tracks, right next to each other. There are no different platforms to find for different trains and different destination. One only needs to make sure to get on the train going in the right direction. A man asked me what time the Blue Line train was coming, heading south. As I was running my finger down the schedule posted near the ticket vending machine, the man expressed surprise that that , actually, was a schedule. I didn’t know if he’d been this close to the ticket machine before.

The TRE commuter train arrived shortly; we boarded to stay warm during the 20 minutes to departure. Almost every seat was eventually occupied, and there were several people traveling standing. In 2007 the TRE carried a total of 2.5 million passengers. On an average weekday last month it carried more than 10,500. It took 30 minutes to reach Centerport station, halfway between Dallas and Fort Worth and nearest to the airport. A shuttle bus was waiting, a pleasant surprise given that the online schedule (on the TRE website, not on Google Maps) showed I’d have to wait 20 minutes for the shuttle. According to the driver they usually wait for five minutes past the TRE’s scheduled arrival time at the station (if the train is late) to pick up passengers for the airport. The shuttle technically goes to the airport, but in fact we were deposited at the Remote South parking lot, from which the final leg of the journey is effected on the intra-airport shuttles, depending on which terminal ones has to go to.

The entire trip, from locking my front door to lining up to check in luggage (Northwest Airlines now charges $15 for the first checked bag) cost me $5 and took two hours. The same one-way trip in a taxi costs $50 and takes 40 minutes. A friend can drive you “for free”, though the round trip would take two gallons of gas and, when you add the airport entry fee, the real price approximates the public transportation fare.

I was pleasantly surprised by my experience: although it took longer than the alternatives, it was by far the most relaxing way to accomplish the trip. And I was able to do productive work on my computer for most of that time. The only thing is, next time I will use Google (a private company) to do my trip planning on the DART system (a public organization).

And then I wonder if we shouldn’t just let Google run our public transit. I mean, my trip cost me $5 and it cost the taxpayers in Dallas around $13.50 in subsidies. (Thank you, neighbors, for paying for most of my trip!) Maybe this helps explain why my property taxes went up 10% this year when housing values (on which the taxes are based) are crashing. So I say, let Google run DART! I won’t mind looking at some targeted text ads inside the train while I’m riding for free, saving $5, saving Dallas taxpayers another $13.50, and saving Lee from his worries of being caught (again) without a ticket.

DART-ing to the airport (Part 1)

The outside temperature had been 30 degrees earlier, then it dropped to 28. An hour later I felt none of the cold as I was running to the bus station dragging a suitcase behind and worrying I might miss the bus. It was a feeling I had last felt a decade and a half earlier. This would be my first purposeful use of public transit as an adult. I had declined several offers for a ride to the airport and was dead set on using only public transportation to get there from home.

Public transportation in the Dallas area is operated by the Dallas Area Rapid Transit (DART), running buses and DART light rail, and in collaboration with the Trinity Railway Express (TRE) commuter train service provides a link from the city to the Dallas Fort Worth International Airport and on to Fort Worth itself. Altogether is served more than five million passengers in November of 2008.

Two days prior I had gone on the DART website to find out how I could get to the airport from my home using only public transit. The website’s “A to B done quickly” trip planning function did not work but a customer service representative answered the phone quickly and was very informative. With her help I had the schedule figured out: I would take the bus to a DART train to the TRE train to a Shuttle to another Shuttle. Figuring it all out, including time spent on the website and speaking with customer service took me 30 minutes. It was my first time, after all. Then a friend showed me how in 30 seconds I could get the same information on Google maps. (Click on 'get directions' and then select 'by public transit' from the drop-down box, where the default is 'by car.') Except Google had more helpful scheduling and map information and was better organized.

I had not realized that on my block there were DART bus stops. Rushing and dragging the suitcase behind it took me one minute to get to the farther stop, the one I needed. I was exactly five minutes early, as the DART website advised. Four minutes later the chilly air had cooled my face pleasantly and was starting to freeze my fingertips through the gloves. Right as the bus was coming.

I was the only passenger, though on an average weekday over 160 thousand people ride on a bus in Dallas. The driver had served four years in the Army in Germany in the late 70s and early 80s. He liked it so much he extended his stay by two years. He didn’t look that old but said he had a 31-year old son. It was a short trip to the DART rail station.

I could take either the Red or Blue lines, whichever came first to go downtown. On an average weekday 70,690 passengers ride DART rail. At the station there were a few people. I met Lee. He had a sore throat. He had moved from Chicago two months ago to the south Dallas neighborhood of Oak Cliff to care for his blind mother. He was the only son out of six children. He had a jacket ripped at the left sleeve and said he earns his living by doing small projects in a woodworking shop his father had left him. He asked if I would leave him my ticket after my last stop but we were going in different direction. The time he got caught without a ticket he said he was only issued a warning. I wondered if DART statistics count all passengers or just paying ones.

The Red Line train came first and left a minute ahead of schedule. There were a few riders, Lee and I among them. Between this station and downtown the line goes underground, like a subway. As it went into the tunnel my ears popped. I suppose the fast moving train caused the air pressure in the tunnel to rise. Inside the car the electronic mini billboard caught my attention: free pregnancy tests, become a barber, try Newport seafood and steaks, hiring RNs part and full time, trivia answer: b) a can of who hash, time 3:20. It was actually 3:23.

To be continued...