Baldo Minaudo’s Blog

A few months ago I wrote about how a leader can have a greater impact on the people than any specific political ideology.

There is an importance distinction that needs to be made when we speak of politicians.  Politicians are not necessarily leaders.  A leader is someone who leads the people - a politician is someone who follows the people and is easily influenced by any threat to his/her career.  A leader is someone who cares for the people and takes the leadership role for his/her concern for the community - a politician is someone who often takes the job because he/she isn’t doing well in their career or has no job.  A leader takes responsibility to assess the situation, make decisions and implement plans - a  politician looks to deflect, dilute and defer the issue to someone else. A leader looks to give to the community, a politician looks for the community to give to him/her.

This is not meant to bash or criticize any particular person, but to make the distinction between a leader and a politician.  Now, based on the above who do we know in recent years at any level of government that we can call a leader?  Notice that no where in my description of a leader do I require a leader to be right all the time.

Leadership is an issue that once again has my attention because of the pending Toronto municipal election.  Last week I found myself chatting with a friend who asked me if I was going to run for Mayor of Toronto.  I giggled and then I realized she was serious.  So, I thought about it for a few moments and then found myself thinking about it again during the week. 

In order for me to run for Mayor, I’d have to believe that I can make a difference to Torontonians and to the City of Toronto, which I do believe.  I also have a vision of what Toronto used to be and what it can become.  A city that guided by prudent use of resources, social engineering, business decisions and long-term planning, something this city hasn’t seen in a long time.

The reality of it is that for those of us that can and want to make a difference the price of running for Mayor and then performing the duties with full intent is too high.  This morning I asked another friend of mine what he thought about me running for Mayor and his reply was, ‘I thought you had to be unemployed to run for Mayor’.  In my laughter I was inspired to write this entry.

Will I run for Mayor….hmmmmm - what do you think?

Meanwhile, I’ll be watching the candidates as they throw their hats in the ring.  As they do that I will not only be asking if they will make a great leader, but also if they  have a job and why they are running for the position.  What will you be asking yourself?

Happy Leadership,

Baldo

It was a betrayal that shook the Liberal party to its roots.  After years of a culture of entitlement that grew at an unobstructed pace the Liberals had gone too far.  In Jean Chretien’s hands the Liberal gang was caught in a $100,000,000 scandal whereby money was basically given to Liberal friends.  Even the long-time Liberal supporters were in shock, felt betrayed, like they couldn’t trust the Liberals again. 

The Liberal supporters that continued to vote for the Liberalts were compared to an abused wife.  The idea is that if you’re abused once to such a fundamental degree (not to mention the ongoing abuse that had gone unspoken) then why would the Liberal gang stop? 

Despite the remaining Liberal voters, the consensus was that the Liberals had to go through extremem bloodletting, a changing of the guards if you will before they would be fit to return to power.  The problem is that bureaucrats can live a long time and by the time they die of old age (because there really is no other way to get rid of them), it could take decades.

So, why am I writing about this now?

In the Saturday Star (November 21, 2009) I read that Gills-Andre’ Gosselin (a key player in the federal sponsorship scandal) pleaded guilty last week to several charges related to fraud totally $655,276.  The interesting thing is that a few months earlier he decided to file for bankruptcy.  Hmmmm…that’s interesting isn’t it?  If he’s bankrupt, then does that mean the court, even if it rules to have him return the money doesn’t have a way of collecting?  He’s guilty but he’s not giving the money back is that the case?

He probably wouldn’t be pleading guilty if he had any chance of winning the case.  Regardless, he’s sentenced to two years and one day.  Which brings me to another thought - I wonder how much of that he’ll serve in jail?

Even though Saturday’s story was printed on page A16, let’s not forget the abuse that the Federal Liberals have inflicted on its long-time supporters and the fact that they have done nothing to rectify the matter or return the money to the taxpayers.

As I have said many times before, what matters more than the ideology of the party is the quality and intention of the Leader and his Team. Let us hope that the Federal Liberals are able to find a good Leader with a good Team who will clean up this mess soon.

‘Is it true that Dalton McGuinty wants you to stop exercising?’  When my friend a Canadian molecular biology researcher now based in the U.S. asked me why our premier wants our population to be less healthy I responded with  a ‘what are you talking about?’.

She referred me to an article in the Globe and Mail Canada’s National Newspaper dated March 27, 2009.  I had to read the front page twice, but it’s true - Premier Dalton McGuinty and his Liberal Government is discouraging Ontarians from exercising by taxing Gym memberships and Vitamins. 

I called my friend back at which point she pointed out how short-sighted and outright stupid such a tax is.  ‘Shouldn’t you be encouraging a healthier population she asked?’  If Ontarians exercise less they’ll end up with many more health problems, especially when they’re older.  The cost of this will be multiples greater than any possible taxes you can collect in the short run.

‘But it wasn’t too long ago that we introduced a Chidren’s Fitness Tax Credit to encourage physical fitness and better health amoung our children.’ I replied.  She then pointed out that it was Stephen Harper’s Progressive Conservative government that introduced that at the federal level.

Regardless, I’m still trying to figure out how a leader, let alone a whole government could make such a decision to tax better health.  I would be extremely disappointed if the Liberal government justifies taxing of good health through some claim that it is too difficult to do as part of the harmonization of GST and PST.  Well then, how about a tax rebate or tax credit for those that have to pay this tax? 

When is the next provincial election anyway?

When Barack Hussein Obama was elected President of the United States I thought ‘if anyone can turn things around for the United States it is this man.’

I didn’t know much about Obama at the time, didn’t know about his credentials, business abilities, values and I still don’t.  But, I did listen to his campaign and the ideas he conveyed of hope and a new perspective for the future.

For years I’ve watched the United States slowly deteriorate into a fallen country with no end to the collapse.  Only some new ideas and perspectives can turn things around.  But, these ideas have to be implemented and implemented before it’s too late.

The United States has been in deterioration since it first placed a man on the moon.  After that, it’s been all downhill.  Why?  Because it has not invested in the future.  Americans have been living off the wealth and competitive advantage created during the 1800’s and first half of the 1900’s.  They’ve been busy consuming their vegetables and not working the land to improve on the production.

You may or may not agree with this perspective, but consider this.  It was in the late 1800’s that U.S. ships lay off the coasts of Japan and China looking to land in order to replenish their supplies.  When the rulers at the time refused, the ships shot their cannons at the mainland.  This was enough for the rulers of the day to realize the significant superiority the U.S. held over them.  Out of fear they agreed to let them on shore.  The fear and resentment was so deep routed that they started planning the solution to this foreign threat.  The rulers started their 100 year plan of developing to the point where they would dominate over the U.S. and possibly the world. 

To accomplish this, China targetted specific industries and specific locations to promote as leaders.  Government worked to establish plants in order to produce goods they could sell to foreigners, specifically the U.S.  These products were clearly inferior, yet priced at such a discount that American consumers couldn’t resist buying them.  The reality is that the total direct cost to the consumer of buying these products (not including the cost in lost jobs, the environment, etc.) was much greater than buying a higher quality locally manufactured version.  This was apparent to me recently when my best friend bought a pair of casual shoes made in China. The same day the shoes broke and he couldn’t wear them any longer.  Next day he had to take them back.  The shoes cost him $25 (an Italian or Canadian manufactured pair would have cost him $100). So he thought he saved $75 right? Wrong!  He had to go back to the store to return the shoes that’s an extra hour out of his schedule.  He gets paid over $100 per hour. Already he’s lost money not counting transportation cost.  Now, if you consider this further you’ll realize that someone who only buys these low quality shoes would be making several purchases (as much as 8 purchases) over a period of a year or two, whereby the higher quality shoes would require only one visit. So the cost would be $25 plus 8 hours of your time compared to $100. 

The consequence of this is that American consumers have lost 8 hours of their productive time and rather than look at ways to better their life or spend time with their family and friends they’ve spent it buying products.  Meanwhile on the other end Chinese manufacturers are counting their sales and investing their profits to improve on their industries.  Over years more and more products were manufactured in China and China was protecting its own consumer base by making it virtually impossible for foreign products to reach their market.  And with each additional product manufactured in China, more jobs were created in China, they became more competitive, they accumulated more savings and America started losing jobs, expertise, competitiveness and even savings.  The Chinese became stronger and the Americans became weaker.

Today Americans have been taxed generations into the future yet their ability to generate wealth has tremendously deteriorated.

My message to President Obama and the American people is that there is no short solution to the problem they face.  There is also no use in blaming business leaders or individuals. If there is anyone to blame it is the politicians for at a time that their counterparts in China were formulating and executing effective plans for economic development and growth they were playing political games and maneouvering to secure votes for their personal career aspirations.  But lets not lay blame for that is not where the solution lies.  The solution lies in coming up with a plan and implementing that plan. 

The solution is in the answer to this question: “President Obama, what are you going to do to provide America the ability to sell superior products at competitive prices for export all over the world, including into China, India and other developing countries?

In answering this question the details will provide a plan of action revealing the steps of what needs to be done to make it happen.  If you can sell products you can create jobs, if you can create jobs you can earn money and accumulate wealth, if you can earn money you can improve your quality of life.  The Americans need to be more thoughtful and planning than the Chinese have been in order to compete and excell in today’s and tomorrow’s world.

This Friday I went to dinner with a friend.  We had searched on the internet for a restaurant where we could enjoy some good food and maybe make some friends.  I had clearly remembered passing this area the Saturday before and it was very much like an inner city nightmare, a place where I wouldn’t stop, let alone eat.  I scratched my head and wondered if this was really the same place.  So, off we were to Fells Point on the waterfront, but a funny thing happened along the way.  Why driving along E. Biddle Street we suddenly realized that the people were professionally dressed, walked in a straight line and seemed to be in a generally happy and sociable mood.  So we parked our car (lucky to find a free parking space on the street) and ended up at ‘Thai Landing’ restaurant near N. Charles Street and E. Biddle Street and while listening to my friend lament about how Vancouver is such a better city to live in than Toronto I enjoyed a wonderfully prepared cuisine by an attentive (but not overly so) staff.  I knew this would be a good restaurant when I entered the front door and saw a dozen awards from various magainzes and associations placing it among the best places to eat in Baltimore.  Yet, the price was very affordable. 

After finishing my dinner and taking in all my well-educated (Ph.d molecular biology) and athletic (certified personal trainer) friend had to say about Vancouver I put my urban planner hat and pointed out a few things that she had not achnowledged about Toronto, as well as some negatives about Vancouver that she was ignoring.  You see what triggered all this discussion was the question that my friend posed to me - “Do you think Toronto is a good place to live?”.  My answer was “I’ve travelled to hundreds of cities around the world and lived in most of them from between a few days to several weeks.  For me, I would rather live in Toronto than any other city all else being equal (such as career, family, etc.).  There are however some smaller communities that I would consider living, especially for raising a family in the early years.”  Apparently, this reply didn’t sit well with my friend and I found myself listening to someone with a mission to change my viewpoint.  Of course, she didn’t change my viewpoint because you see in my travels I not only looked at the cities I visited as a tourist, resident, and business traveller, but also an entrepreneur, sociologist, immigrant and urban planner.  I also find comfort in that Toronto has been successfully ranked by independent international organizations as a top world city.  Yet, I also agree that the quality of life in Toronto during the reign of the present mayor for whatever reason has significantly decreased. 

Well, back to what happened on Friday.  We crossed the street to Sammy’s Trattoria.  There we waited for 10 minutes for a place at the bar.  The place was very busy.  My friend turns to me and asks, “What do you notice about this place”.  “Lots of things what do you mean?” I reply.  My friend clarifies, “What do you notice about the people?”  I look around and notice that for the upscale decor they tend to be more casually dressed than Torontonians would, but a good mix of age groups, some university students, some in their sixties.  “There aren’t any Afro-Americans in here” she points out.  I look around and notice one Afro-American waitress, but everyone was caucasion with the exception of one oriental man.  Come to think of it Thai Landing also didn’t have many Afro-Americans there.  I think to myself is this the same Baltimore?

Two spaces open up at the bar and we finally get to order our Tiramisu dessert and coffee.  Before our order is even taken the couple next to us strikes up a conversation.  That was a real pleasure and the first time that someone in Baltimore that I hadn’t met tried to strike up a conversation with me without asking me for a hand out.

Turns out that Karin is a business lawyer and Greg is an Oracle database programmer.  And they have lived in both El Paso and Washington D.C. previously and therefore were able to speak intelligently about Baltimore.  I received quite an education about what has happened in the last few decades in Baltimore, as well as about the nightlife, where to eat and the neighbourhoods to check out.

Turns out that the property tax rate in Baltimore is 2.2%, compared to Toronto’s 1.25%, but they are not as stringent on updating the property assessment as Toronto is.  The second significant thing I found out is that the reason there are so many boarded up (and I mean blocked in homes) in the city is because the government has taken back the property due to unpaid property taxes.  This in turn has increasing caused the tax base of the city to decrease.  But, combined with the increasing crime rate within the core, which was addressed in a band-aid fashion by putting more strongmen police officers on the street as well as thousands of videocams on the street, has resulted in huge budget requirements.  In ordre to meet these increased requirements, the city had to raise its property taxes.  It’s all in the numbers my friend, higher expenditures lower revenues, spells disaster.  A lesson that many uneducated poticians throughout North America don’t seem to be able to learn.  And yes, this also applies to politicians in Toronto.

So, as I’m preparing for sleep that evening I think to myself was that the same Baltimore as last Friday?

In the movie, Dances With Wolves there is a scene in which is a significant key to the major socio-economic-political difference between most societies.

The movie is the story of an American soldier during the frontier times when the West was being settled.  A single solder was sent to man a fort, which became of interest to one of the nomadic Sioux tribe of the time.  Somehow the soldier made contact with and started building a relationship with the Sioux.  The bond grew so great that he considered them his family.  He even participated in a great Buffalo haunt at their side.  In the battle he had dropped his hat and forgot about it because he was occupied with saving a young boy’s life.

Later that evening as he’s recanting the story to the tribe around the fire, a Sioux warror enters the tent wearing his hat and as he claims his hat back the Indian replies:

“He left it on the Prairie. He did not want it” or something to that effect.

I thought about it for a while and realized the significance of this one comment.  There are many aspects and consequences of this philosophy of finders keepers.  In North America we have laws to protect people’s possessions.  These laws make it possible for you to leave your home for work in the morning and expect it to be there and available for you when you return.  But, what if a street person were to see it was empty and break in because he/she needed it and it wasn’t being used.  Or went into your refridgerator and ate your food because it was there and well if you left it there, then you didn’t want it.  Right?

Yet, this is exactly the philosophy that nomads would need in order to survive.  They take what they need, nothing more, nothing less.  Unfortunately, most people in urban areas that take from others don’t really take just what they need, but what they can get away with. 

Imagine what it would be like if you could use whatever resources were available, regardless of who owned them.  Of course, it would mean that the use of these items wouldn’t deplete them or preclude them from being used by the owner.  So what’s wrong with using these resources? 

I know this is a dangerous comment, especially to those sensitive to the dangers of communism and socialism, but it isn’t about politics, but  necessity.  You see, nomads aren’t in for a free ride.  The seek their food daily and work with the tribe in order for everyone to exist.  In the city, many people are supported by government and programs and sadly contribute nothing to helping the community move function properly.  It is as though the politicians are trying to buy them off to keep them quite and out of the way because they don’t know how to deal with them.

Well, I know how to deal with them.  I have the solution on how to include them in a productive way in our society and help them in their happiness and success in life.  I’d like to roll-out this solution and it is one of the reasons why I have thought about running for politics many times.

If you ever come across an impactive comment, let me know about.

Until then, enjoy your resources and assets.