Grumpy Editor

Taxpayers to foot $20 million ObamaCare PR push

While the U.S. government over the years has run TV/radio public service announcements (PSAs) --- at no cost to taxpayers --- to inform or educate the public about an issue, now, in promoting ObamaCare, the public relations price tag to taxpayers will be $20 million, notes Grumpy Editor. 

Surprisingly, few newspapers this week mentioned the costly promotion. 

The Health and Human Services Department handed the task to global public relations firm Porter Novelli. 

Based in New York, the PR agency, part of the Omnicom Group international marketing communications firm, maintains 90 offices (13 in the U.S.) in 60 countries. 

What’s interesting about the assignment is that Porter Novelli co-founder (in 1972 with Jack Porter) is William Novelli, who retired in April, 2009 after eight years as AARP chief executive officer. 

His departure came at a time when AARP, representing 40 million people 50 and older, was running into unexpected PR problems with some members stemming from its stance backing what was to be labeled ObamaCare. 

“Health care reform is AARP’s top priority,” declared incoming AARP CEO A. Barry Rand in the July, 2009, AARP Bulletin.  “We simply can’t fix the economy without restructuring the delivery of health care, expanding access and cutting costs."

The lucrative ObamaCare account was being kept secret on the Porter Novelli website.  As of yesterday, no mention was made. 

However, the opening page noted in bold letters that Porter Novelli is “Named Top PR Agency in Spain.” 

The site described what Porter Novelli is all about: 

“Combining the power of immersion with the rigor of data, we create a deeper human insight that transforms the opinions, beliefs and behaviors of those who matter most to our clients.” 

That’s what probably moved HHS to sign the firm.

 

Confusion continues on inflation: trending up or down?

So which way is inflation headed --- up or down?  With release of the consumer price index for April, confusion still reigns, notes Grumpy Editor. 

The headline on a May 15 news release from the Bureau of Labor Statistics read:

CPI all items unchanged in April as decline in energy index offsets other increases

Working off the BLS data, a Wall Street Journal story followed that with its own headline:

Inflation Eases as Gasoline Prices Fall 

The BLS lead spelled out, “On a seasonally adjusted basis, the Consumer Price Index for All Urban Consumers was unchanged in April after increasing 0.3 percent in March.  The index for all items less food and energy rose 0.2 percent in April, the same increase as in March." 

That’s where the confusion starts with words unchanged and rose in the same paragraph. 

As the WSJ pointed out, the CPI “measures what Americans pay for everything from breakfast cereal to doctor visits.” 

So that was heralded as unchanged, according to the BLS, from March to April. 

But then “core” prices entered the picture. 

The BLS news release indicated, “The index for all items less food and energy rose 0.2 percent in April, the same increase as in March.  Increases in the indexes for shelter, used cars and trucks, medical care, airline fares, new vehicles and apparel all contributed significantly to the April increase.” 

With that, the WSJ story added core prices “were up 2.3 percent from a year ago --- matching the biggest 12-month increase in this category since September 2008.” 

Now are you briefed on which way inflation is going.

 

Children can continue driving tractors on family farms

Credit the Labor Department’s withdrawal of a dopey 85-page proposed rule that would have affected children doing routine duties on family farms to a report by The Daily Caller’s Paul Conner, mentions Grumpy Editor.

 The planned regulation would have drastically changed the extent to which children could work on family farms and learn valuable skills.

Editorial writers on major city newspapers --- far from rural farms --- were quiet on the development, apparently unaware of the planned rule.

As Conner explained it:  “The rule would have dramatically changed what types of chores children under the age of 16 could perform on and around American farms. It would have prohibited them from working with tobacco, operating almost all types of power-driven equipment and being employed to work with raw farm materials.”

Sen. John Thune (R., S.D.) said the proposal would “ultimately undermine the very fabric of rural America.”

The Labor Department said the decision to withdraw the rule “was made in response to thousands of comments expressing concerns about the effect of the proposed rules on small family-owned farms.”

Appearing Friday on Fox News, Sen. Jerry Moran (R., Kan.) said “farming is a family operation” and that’s where “kids learn the work ethic.”  He said 18,000 comments went to the Labor Department last week.

In a statement from his office, Moran said, “If this proposal had gone into effect, not only would the shrinking rural work force have been further reduced, and our nation’s youth deprived of valuable career training opportunities, but a way of life would have begun to disappear.”

 

Details from 1940 U.S. census go on Internet April 2

Not as speedy as the monthly U.S. Bureau of Labor Statistics’ employment figures currently released for the previous month, the U.S. Census Bureau on April 2 makes available --- via the Internet --- details of the 1940 census from the National Archives, notes Grumpy Editor.

Why the extra long delay?

Official reason:  “Strict confidentiality laws ensure that census records are only unsealed after 72 years have passed."

The 1940 census involved more than 120,000 enumerators who tallied information on 132 million people of which an estimated 21 million are alive today.

Compilation was done the old-fashioned way --- without computers.

It wasn’t until 1951 that the first large-scale computer --- a UNIVAC 1101 with a price tag close to $1 million --- was delivered to the U.S. Census Bureau.

The UNIVAC, short for Universal Automatic Computer, was considered to be the first capable of storing and running a program from memory.  (UNIVAC became a division of Remington-Rand Inc.)

The census form in 1940, a year before the start of World War II, contained 34 questions directed at households plus 16 others aimed at 5 percent.

After the lengthy Great Depression (which started in 1929), one of the most sensitive questions in 1940 dealt with personal income.

So it was placed at the end of the survey.

 

Editors should note FEMA aid denial to 5 Illinois counties

Editors in hurricane, earthquake, tornado and flood-prone areas should be concerned about how five southern Illinois counties and especially Harrisburg, Ill, recently smacked by a 170-mph twister that damaged or destroyed hundreds of homes, are being nixed for assistance by the Federal Emergency Management Agency (FEMA), advises Grumpy Editor. 

The “no help” should spark editorials because the same thing could happen in the areas they serve. 

Denial of aid comes despite the stated mission of FEMA, with about 7,500 employees, that is part of the U.S. Department of Homeland Security:

“FEMA’s mission is to support our citizens and first responders to ensure that as a nation we work together to build, sustain, and improve our capability to prepare for, protect against, respond to, recover from, and mitigate all hazards.”

Denying aid means residents of the region will not be eligible for federal funds to assist in repairing or replacing damage from a mighty Feb. 29 twister.

Eric Gregg, mayor of Harrisburg, where the tornado killed seven residents, said, “I want to know how this decision was reached and why because frankly, I don't understand it.”  He estimated damage to his community at “tens of millions.” 

Gregg hoped President Barack Obama will visit southern Illinois to see the devastation first hand. 

Illinois Gov. Pat Quinn said he was “extremely disappointed that FEMA denied our request for federal assistance that is needed to help people in Harrisburg, Ridgway and the other communities.  After personally surveying the damage and talking to many residents who lost their homes, I firmly believe federal assistance is crucial to help them begin the recovery process." 

The governor hoped to get the FEMA decision appealed.

A FEMA spokesman said agency officials determined assistance from state and local agencies, combined with volunteer groups and private insurance, would be enough for the five counties to rebuild on their own.

 

Few raise eyebrows after BLS January employment tally

Heavy broadcast and print coverage Friday and over the weekend stemmed from the Bureau of Labor Statistics’ Feb. 3 news release on employment for January, loaded with upbeat figures amazingly compiled and swiftly released only three days after the end of the first month of 2012, notes Grumpy Editor. 

Most editors and business writers, seeking to get the details out promptly, ran with the information.  Few raised eyebrows.

The story topped most radio/TV broadcasts and grabbed front-page space heralding the pace of job creation as total nonfarm payroll employment in January rose by 243,000 while the unemployment rate decreased to 8.3 percent from 8.5 percent in December, according to BLS. 

Job growth was widespread in the private sector, with large employment gains in professional and business services, leisure and hospitality, and manufacturing, BLS added.

Government employment changed little over the month, it pointed out. 

But missed by many was this BLS message relating to “changes to the employment situation data”: 

“Establishment survey data have been revised as a result of the annual benchmarking process and the updating of seasonal adjustment factors.” 

Writers, with more time, would call for a government jargon translator for that line. 

So how many business writers were led astray? 

Newsmax writer Amy Woods related Rush Limbaugh on his Friday radio show said, “The jobless rate reported today is ‘corrupt as it can be’ because President Barack Obama’s administration has decreased the size of the work force.”

Jeff Cox, CNBC.com senior writer mentioned, “The January numbers can be volatile as the Bureau of Labor Statistics makes seasonal adjustments. This year's round produced 1.25 million fewer people in the work force in December, a number that drew some focus as evidence that the drop in the jobless rate could be misleading.”

Some alert business writers pointed out that 11 million people either have stopped looking for jobs or are, reluctantly, working part time.  When that figure is added to the 12.8 million unemployed, almost 24 million people are considered underemployed.

See the full BLS news release here.

 

U.S. population grows, wolf enters California, radio talk show replays, Kodak stock sinks, among year-end events

Catching up on some year-end events that Grumpy Editor feels some folks (and editors) may have missed --- 

+ The Census Bureau’s projected U.S. population going into 2012:  312,780,968.  The agency also calculated one birth is expected every eight seconds and one death every 12 seconds in the U.S. 

One would think that with more people contributing to the federal pot, taxes would be lowered much like a going-away office party in which the more participants involved mean less contributions per person toward an outlay for a gift. 

+ A dopey year-end Verizon Wireless move to yank $2 a month for online or telephone payments from each customer lasted a day before the pickpocket idea was shelved.  The “convenience fee” plan immediately triggered a lot of grumbling and complaints from users of Verizon Wireless, a joint venture of Verizon Communications Inc. and Vodaphone Group Plc. 

It followed the bad PR Bank of America received two months earlier when it attempted to impose a $5 monthly fee for debit card use. 

+ Associated Press got excited when a lone gray wolf crossed into California from Oregon.  That warranted an eleven-paragraph report, noting the animal --- wearing a global positioning system collar since February --- had wandered more than 300 miles from its original location.  Last gray wolf spotted in California was killed in 1924. 

+ Radio listeners during the holidays heard much of “best of” (the upscale name for repeats) talk shows.  What talk show hosts and their syndicators seem to forget is that radio is hailed for immediacy.  Year-end airing of such things as preparing for Thanksgiving dinners and other “upcoming” events that have long passed is just plain stupid. 

Guest hosts should be used to keep the focus on current events in a fast-moving world.  It’s an opportunity, too, to develop fresh fill-in talent at microphones. 

+ The stock of once-booming Eastman Kodak Co. closed 2011 at 65 cents a share, compared to the year’s high of $5.85.  The struggling image and printing company’s stock sold for about $30 a share on the New York Stock Exchange as recently as mid-2007.  Its last dividend was in December, 2008. 

Three Kodak directors resigned in December as the company works on shoring up an eroding cash position.

Year-end observations conclude tomorrow.

 

FDIC spends funds on WSJ ‘notice’ on Aug. 5 bank closure

A lengthy legal notice from the Federal Deposit Insurance Corp. in The Wall Street Journal yesterday caught the attention of Grumpy Editor who wonders why the FDIC --- with wide efforts to reduce federal expenditures out of Washington --- is spending advertising money on information and material on a failed bank that has already been covered by news media and the FDIC’s own Web site. 

Purpose of the paid space was “Notice to creditors and depositors of Bank of Whitman, Colfax, Washington.” 

Even more interesting and raising eyebrows:  The public notice in English was duplicated in Spanish. 

Why the need for dual languages?  Following the Spanish language version at the bottom of the two columns by 14-inches paid space: 

“This translated notice is solely for information purposes only.  The official notice is the version published in English.  All proof of claim forms submitted to the FDIC as receiver of Bank of Whitman must be in English.” 

The bank was closed on Aug. 5 and all depositors’ accounts were transferred to Columbia State Bank, Tacoma. 

Information, phone numbers and contacts were spelled out in an Aug. 5 FDIC press release.   

Points raised by Grumpy Editor: 

Why the legal notice route in a major publication more than two months after the event that was already detailed in local newspapers and the FDIC’s own Web site? 

Thirteen other banks have failed since then.  Will these also get the delayed “legal notice” treatment? 

Why run a Spanish language version of the notice when the profile of Colfax, where Bank of Whitman was based, showed about 2,700 residents with 97 percent white and only 1.5 percent Hispanic? 

Proof of claim form, mentioned in the paid notice in the WSJ, for creditors and other information is easily obtained at:

http://www.fdic.gov/bank/individual/failed/whitman.html 

The legal notice in print warned claims must be submitted on or before Nov. 8.  But the FDIC’s Web site cited the cutoff date a day later, Nov. 9.

 

Violent crime figures focus on reported incidents in 2010

Violent crime rates dropping for the fourth straight year received heavy broadcast/print coverage yesterday --- with apparently few editors or writers raising eyebrows, notes Grumpy Editor. 

Key word in the information from the FBI is reported as with crimes reported to authorities.  Many victims, for various reasons, fail to file crime reports.

Estimated also appears in released material. 

Nationwide, an estimated 1.2 million violent crimes and an estimated nine million property crimes occurred in 2010, reports Associated Press. 

The decline, say criminologists, is attributed to an aging population, better policing and continued high rates of imprisonment for criminals, adds AP. 

This runs counter to other news stories that cross editors desks during the year that point to jobless younger people in troubled economic times turning to crimes, slimmer budgets with freezes or cuts to police departments, and closing of prisons along with early release of inmates in efforts to reduce costs in a down economy. 

Robust gang activity is keeping many police departments busy and away from other investigations. 

Most television stations’ news programs often air shooting stories first.  “If it bleeds, it leads,” is the cry of TV news editors. 

Thus, it’s difficult for many Americans to agree with headlines such as:  “Crime rates continue decline in U.S. despite high unemployment.” 

Meanwhile, not mentioned in the latest crime tally stories are lesser offenses --- from identify theft to imposter scams --- directed at consumers. 

The Federal Trade Commission places identity theft at the top of the list of consumer complaints, accounting for 250,854 out of 1,339,265 complaints filed last year.  Never-ending various scams not only are multiplying, but are being aimed at seasoned investors, too. 

Many of these also go unreported to authorities. 

 

Dr. Oz cites arsenic in apple juice, irks FDA --- and ABC

Dr. Mehmet Oz, the celebrity doctor of the syndicated “The Dr. Oz Show” on television and coauthor of a daily newspaper column, stirs things up on TV with his findings on arsenic content found in mostly imported apple juice, observes Grumpy Editor. 

After testing dozens of samples from three U.S. cities, Dr. Oz discovers some of the nation's best known brands of apple juice contain arsenic, a heavy metal known to cause cancer. 

That brought immediate reaction from the Food and Drug Administration, disputing Dr. Oz’s findings --- and from ABC’s health and medical editor, Dr. Richard Besser. 

An exchange of Dr. Besser, a former acting director of the Centers for Disease Control and Prevention, and Dr. Oz on ABC’s “Good Morning America": 

Besser: “ I’m very upset about this.  I think this was extremely irresponsible, putting out this kind of health warning, manufacturing a health crisis based on faulty, incomplete data.” 

Oz:  “We did our homework.  We spent a lot of time making sure we got our numbers right.” 

Dr. Oz stresses most apple juice is not all-American, pointing out 60 percent of apple juice, made from concentrate, is imported from China.

Grumpy Editor, in efforts to determine the source of apple juice from concentrate distributed by Kroger Co., for example, finds one has to examine the container very carefully.  The information is not on the wraparound label indicating nutrition facts and ingredients but is in tiny, easy-to-overlook print directly on the plastic container about an inch above the label.

Sure enough, it reads:  “Contains concentrate from Argentina/China.”

Arsenic, banned in the U.S., is not always regulated in other countries where it may be in the water supply or used in pesticides contaminating the juice you're giving to your children, says Dr. Oz. 

To settle the argument, rather than running a pros and cons story (and probably again in a few months), a major U.S. newspaper, magazine, wire service or TV outlet should independently test --- as a public service --- for arsenic content in apple juice and promote the results. 

Meanwhile, see Dr.Oz’s findings and more information at:

www.doctoroz.com/videos/arsenic-apple-juice