The 4th Quarter of the Business calendar has traditionally been the rallying time for the bottom line. From the coffee-riddled shopping day “Black Friday,” to the celebration of Kris Kringle’s one day of work a year it is one of corporate America’s favorite times of the year.
But, with the downturn of the economy; scratch that-recession; this is shaping up to not be the most wonderful time of the year. Retail industry analysts are predicting consumer spending to drop by more than $100 million dollars; estimating metro and suburbanites spending to fall to roughly $830 million, a steep fall from $930 million spent in 2007.
The decrease in spending is the economic reality that we all find ourselves in. With frequent references to the Great Depression and Bailout plans, America’s steadfast capitalist are lining up at the Capital looking for their Treasury endorsed “Advance to Go” card.
There are a lot of reports about why the economic collapse has transpired. Everything from the catastrophe of the sub-prime mortgages, stifling fuel costs, and the pinch of lending has bottlenecked cash flow. Restricted lending and rising mortgage payments has all but eliminated discretionary spending. Non-essential outlets have been reduced to laying off employees, or worse, closing their doors and watching a real estate advertisement hung in their best window space.
One repeated trend that has been reported on has been the steady decline in traffic at stores nationwide. One of the key contributors to declined isle traffic is the cost of gas. Over the course of the summer, AAA reported national average of over $4.00 a gallon. People of all ages were not inclined to cruise to the mall. Though preserving in both the fuel and wallet categories is critical to personal budget stability, it is a virus to retail livelihood.
However, when traffic numbers have been on the decline at the physical locations, potential losses have been offset by online offerings.
The online shopping experience has evolved. Though the end goal has always been the same (click here, put item A in your shopping cart, enter credit card number, and proceed to checkout- Cha-Ch’ing) the presentation has become interactive. You can pick, zoom in, tailor the apparel to match your body image, listen to a song clip, watch a 30 second preview or read an excerpt. And the best part of is that all of this can be done from anywhere; from the office cube to the living room recliner and in any state; from Red Bull energy spurts to the lingering effects of tryptophan.
But this year, even the internet is poised for a substantial drop. Though there are competing figures, the general theme is RED. Specialized industries are falling victim daily. The one-time advantages of opting for running your e-commerce were low cost domain maintenance and no location lease costs have been eliminated in the time it takes to click the mouse. Even though your competitor is thousands of miles away in actual distance a simple google search and they are off with their money and your profit.
Therefore the decline in online shopping has forced a price war that is rarely seen. Companies big and small alike have concluded that volume is better than margin and that any money is good money. There is a generalized acceptance of the vaporization of profit margins to accommodate the price conscious shopper. Click on any major retailer (Wal Mart, Target, Kmart, etc.) and just look at all the promotional efforts that state “free shipping”.
This aggressive push to provide an added value service is one of the main dishes being served this year. In fact, it is likely that this issue is going to be one of the cornerstones for capturing and retaining holiday traffic. Obviously, mass retailers are in a much better position to absorb the shipping expense. So that being said- go spend an additional $10 dollars!
Revolving banners on most e-commerce sites are in full-on promotional mode. If these efforts stay consistent, the notion of ‘free shipping’ will be another branded motto that consumers will link to the online shopping experience. And if that is the case, this trend is going to stay relevant far longer than any recessional timing. Additionally, with the low expectations for an economic rebound in 2009, consumers will likely continue to expect; better demand, free shipping options for good.
So regardless if you are a business or a consumer, it is apparent that at this point in time, every dollar counts.
Thursday, November 20, 2008
Monday, November 10, 2008
Running on Empty
Back in April, I wrote about the downward spiral of the US economy. At that point, I commented on how our collective national feeling was leaning against the railing over-looking the recession valley. The course of our country over the last 6 months has been amazingly tragic. Since then, we have seen a domino effect that has not been experienced for 70 years on the descent into the red. Furthermore, we have seen the US Government become the baby-sitter to Capitalism. Never before have such efforts been made to privatize private profits while socializing their losses. And sadly, it is the bad guys in this story who are going to reap all the fruits of taxpayer charity.
This economic crisis drove one presidential candidate to suspend his campaign to return to Washington to ‘get back to work’. It created a national conversation about dollar amounts that the average American cannot even begin to comprehend. It showed that poor fiscal responsibility, multiple companies’ aggressive means to achieve profit margin goals and little to no accountability for Wall Street can even leave financial wizards in a muted state. It revealed the cause and effect disconnect on Capitol Hill between lobbying efforts/limited oversight and the ultimate impact these actions have on their constituencies’ lives. The standard capitalist defense mechanism has been to “let the markets work its way out.” But, when the market is no longer bearing down on the competitors bottom-lines, and the vicious trend is now devouring their business’s sustainability- the white flag is raised and the government is called in.
For better or worse, all of this has taken place on the watch of George W. Bush. President Bush, the Texan Governor who campaigned on the Republican virtues of fiscal responsibility and limited government, has seemingly strayed quite far from the Elephant ranch. My intention is not to simply conclude that the financial monsoon that we are now in is the direct result of one man’s actions. However, it is under Bush 43 and a Republican party that has enjoyed the power seat for 6 of the last 8 years that have had the best seat for viewing the Bankruptcy of our nation. Through launching multiple wars, easing tax obligations of the richest 1 percent, and trying to privatize the sacred institution of Social Security, they have been grossly negligent in their respective roles as representatives. Shame on them.
And now, in the wave of bailout support to our major banking systems, another industry is screaming for their share of the Treasury piggy bank.
For years, the Auto Industry was a major player in growing the US economy. From the days of the Model T through the latest offering from Chevrolet, people have shown consistent infatuation for their vehicles. There was the deep seated pride in “Made in America,” and Michigan grew up around the manufacturing plants and assembly lines. But, over the past few years, as the credit crunch has set in, consumer confidence tumbling, and lending reserved for those with nose-bleed credit ratings, the Big 3 automakers in the US have seen record drops in their balance sheets.
What can these massive losses be attributed to? Surely there is an array of explanations that would satisfy some while igniting indignation in others. However, some novice observations can point to 3 key contributors. The first is the easiest: INDUSTRY GREED.
For years, the auto industry reaped the profit margins gained through the sale of SUV’s. These suburban cruisers not only clogged roads across America, they also provided amazing profitability margins for manufactures. Industry leaders perfected the building and selling of these gas guzzlers to the tune of $10-$15 thousand per assembly line roll off. So, the executives that were high fiving over 5 digit bonuses have now turned their palms over into the form of a donation cup.
A second contributor to industry woes is OPTIONS.
Manufactures lost their collective focus on making sensible options on vehicles. The new millennium has seen the number of options per model go from 2-3 upwards of 7 or 8. It seems that market research and sensibility was abandoned on the hope that “if we build it, they will buy it.” For example, the 2009 GM Sierra 1500 series has 6 different options alone. If the focus could return to limiting options, research and development funding, additional manufacturing costs, and time to market could all help the bottom line. I am not recommending returning the Henry Ford philosophy of “you can have any color…as long as it’s black,” however; dropping options by 50% could have a significant impact to company financials.
The last observation that is contributing to poor financials is TECHNOLOGY.
This is the scapegoat for a lot of the industry’s wounds as of late. With the historic rise in oil prices and the cost of a gallon of gas rising at an alarming rate until recently, people have been hesitant if not resistant to driving their fuel inefficient vehicles. As was mentioned a moment ago, industry greed saw the explosion of SUV’s on the American Market. Though these beasts of the road provide all the off-roading capabilities that the Suburbs demand, the 9 mile/gallon is grossly inadequate for the family budget. Consumers now want fuel efficiency, they want a car that emits less harmful toxins into the air, and they want dependability. Prior to 2000, the concept of hybrids vehicles came with the “future” label. Auto makers were hesitant to invest in the technology because the profit margins were low.
However, the demand and the technology have spiked tremendously over the past 5 years. Expectations have changed. People are viewing hybrid options less through the eyes of an expense, but rather an investment. But, with the repeated quarterly losses posted, American manufactures have lost the necessary capital to invest in technology. Therefore, if any bailout resources are allocated, I believe that the bailout benchmarks need to be outlined in the contractual obligations to invest, develop, and manufacture efficiency. No more excuses.
Even if the 3 contributors above are addressed tomorrow, the situation would still be in dire straits. This past Friday GM announced that it might not have enough cash to make it to the New Year. Losses that preformed worse to industry analyst expectations in addition to the hemorrhaging of cash have created a slippery slope for GM towards the Bankruptcy fall. The losses amount to a reported $4.2 billion (equivalent to $7.35/share) drop in sales along with cash expenditures of 6.9 billion. The announcement of 3rd Quarter performance saw GM shares drop to a 60 year low.
GM's principal rival Ford also performed below Q3 projections. Though Ford’s losses were not as devastating as GM’s the industry pillar said that current liquidity is safe until 2010. But, if operating costs continue to chip away at the reserves, Ford’s predicament could rival that of GM. To stem the tide of debilitating losses Ford announced that it would cut an additional 10 percent from salaried employment, eliminating bonuses, amongst other efforts. Plans are also in the works to offer an additional 2,600 buyout packages to its union workers.
Though the chief officers at GM and Ford have scuttled the ‘B’ talks thus far, many observers to feel that the auto industry cannot sustain itself back into stable performance without government intervention. If the industry watches the key companies fall into the void and cease all operations, as many as 3 million jobs will be lost in the first year alone. Another key category to focus on is the drop in personal income. An estimated 275.7 billion could be lost due to employment loss related to the industry. Michigan, a state already decimated by the dismal economy and massive job loss in the car sector would slip further away from the path. In 2008 alone, over 110,000 jobs have been lost, 15,000 alone in the month of October. Unfortunately, it will not be a merry Christmas for many families whose livelihoods have been crushed by layoffs.
Therefore, what is the next step? Where does the market go from here? What is needed to stop the bleeding? What is needed to restore confidence? Hopefully you didn’t come to this article for those answers. These are the challenges of the industry and the federal government who are currently working on securing an exit strategy. Let it be noted that if the American taxpayer has to provide any amount of donations to the industry that the government needs to reciprocate some of that generosity back the masses. Possible Government action to help the average American would be to slow down home foreclosures, bankruptcy claims, lower credit card interest payments, suspend student loan payments and the like.
During the long course of the political campaign season, politicians on all sides of the spectrum spoke to the character of the American people. That regardless of our differences, our collective will power will see us through any challenge presented. That being the said, the government should help out the American people and not just big industry. While Wall Street leaders wait in line for their taxpayer donations, countless people see their houses taken away, their small businesses close their doors and their savings depleted. So, at the end of the day, make sure that the ‘little guy’ gets his ticket to the bailout tent event. For if this bailout only address businesses needs and not the people, then the Preamble of the Declaration of Independence needs to be amended to read:
“We hold these truths to be self-evident, that all big businesses are created equal, that they are endowed by the Government with certain unalienable Rights, that among these are Profit, Privatization, and the pursuit of bailout resources when needed…”
This economic crisis drove one presidential candidate to suspend his campaign to return to Washington to ‘get back to work’. It created a national conversation about dollar amounts that the average American cannot even begin to comprehend. It showed that poor fiscal responsibility, multiple companies’ aggressive means to achieve profit margin goals and little to no accountability for Wall Street can even leave financial wizards in a muted state. It revealed the cause and effect disconnect on Capitol Hill between lobbying efforts/limited oversight and the ultimate impact these actions have on their constituencies’ lives. The standard capitalist defense mechanism has been to “let the markets work its way out.” But, when the market is no longer bearing down on the competitors bottom-lines, and the vicious trend is now devouring their business’s sustainability- the white flag is raised and the government is called in.
For better or worse, all of this has taken place on the watch of George W. Bush. President Bush, the Texan Governor who campaigned on the Republican virtues of fiscal responsibility and limited government, has seemingly strayed quite far from the Elephant ranch. My intention is not to simply conclude that the financial monsoon that we are now in is the direct result of one man’s actions. However, it is under Bush 43 and a Republican party that has enjoyed the power seat for 6 of the last 8 years that have had the best seat for viewing the Bankruptcy of our nation. Through launching multiple wars, easing tax obligations of the richest 1 percent, and trying to privatize the sacred institution of Social Security, they have been grossly negligent in their respective roles as representatives. Shame on them.
And now, in the wave of bailout support to our major banking systems, another industry is screaming for their share of the Treasury piggy bank.
For years, the Auto Industry was a major player in growing the US economy. From the days of the Model T through the latest offering from Chevrolet, people have shown consistent infatuation for their vehicles. There was the deep seated pride in “Made in America,” and Michigan grew up around the manufacturing plants and assembly lines. But, over the past few years, as the credit crunch has set in, consumer confidence tumbling, and lending reserved for those with nose-bleed credit ratings, the Big 3 automakers in the US have seen record drops in their balance sheets.
What can these massive losses be attributed to? Surely there is an array of explanations that would satisfy some while igniting indignation in others. However, some novice observations can point to 3 key contributors. The first is the easiest: INDUSTRY GREED.
For years, the auto industry reaped the profit margins gained through the sale of SUV’s. These suburban cruisers not only clogged roads across America, they also provided amazing profitability margins for manufactures. Industry leaders perfected the building and selling of these gas guzzlers to the tune of $10-$15 thousand per assembly line roll off. So, the executives that were high fiving over 5 digit bonuses have now turned their palms over into the form of a donation cup.
A second contributor to industry woes is OPTIONS.
Manufactures lost their collective focus on making sensible options on vehicles. The new millennium has seen the number of options per model go from 2-3 upwards of 7 or 8. It seems that market research and sensibility was abandoned on the hope that “if we build it, they will buy it.” For example, the 2009 GM Sierra 1500 series has 6 different options alone. If the focus could return to limiting options, research and development funding, additional manufacturing costs, and time to market could all help the bottom line. I am not recommending returning the Henry Ford philosophy of “you can have any color…as long as it’s black,” however; dropping options by 50% could have a significant impact to company financials.
The last observation that is contributing to poor financials is TECHNOLOGY.
This is the scapegoat for a lot of the industry’s wounds as of late. With the historic rise in oil prices and the cost of a gallon of gas rising at an alarming rate until recently, people have been hesitant if not resistant to driving their fuel inefficient vehicles. As was mentioned a moment ago, industry greed saw the explosion of SUV’s on the American Market. Though these beasts of the road provide all the off-roading capabilities that the Suburbs demand, the 9 mile/gallon is grossly inadequate for the family budget. Consumers now want fuel efficiency, they want a car that emits less harmful toxins into the air, and they want dependability. Prior to 2000, the concept of hybrids vehicles came with the “future” label. Auto makers were hesitant to invest in the technology because the profit margins were low.
However, the demand and the technology have spiked tremendously over the past 5 years. Expectations have changed. People are viewing hybrid options less through the eyes of an expense, but rather an investment. But, with the repeated quarterly losses posted, American manufactures have lost the necessary capital to invest in technology. Therefore, if any bailout resources are allocated, I believe that the bailout benchmarks need to be outlined in the contractual obligations to invest, develop, and manufacture efficiency. No more excuses.
Even if the 3 contributors above are addressed tomorrow, the situation would still be in dire straits. This past Friday GM announced that it might not have enough cash to make it to the New Year. Losses that preformed worse to industry analyst expectations in addition to the hemorrhaging of cash have created a slippery slope for GM towards the Bankruptcy fall. The losses amount to a reported $4.2 billion (equivalent to $7.35/share) drop in sales along with cash expenditures of 6.9 billion. The announcement of 3rd Quarter performance saw GM shares drop to a 60 year low.
GM's principal rival Ford also performed below Q3 projections. Though Ford’s losses were not as devastating as GM’s the industry pillar said that current liquidity is safe until 2010. But, if operating costs continue to chip away at the reserves, Ford’s predicament could rival that of GM. To stem the tide of debilitating losses Ford announced that it would cut an additional 10 percent from salaried employment, eliminating bonuses, amongst other efforts. Plans are also in the works to offer an additional 2,600 buyout packages to its union workers.
Though the chief officers at GM and Ford have scuttled the ‘B’ talks thus far, many observers to feel that the auto industry cannot sustain itself back into stable performance without government intervention. If the industry watches the key companies fall into the void and cease all operations, as many as 3 million jobs will be lost in the first year alone. Another key category to focus on is the drop in personal income. An estimated 275.7 billion could be lost due to employment loss related to the industry. Michigan, a state already decimated by the dismal economy and massive job loss in the car sector would slip further away from the path. In 2008 alone, over 110,000 jobs have been lost, 15,000 alone in the month of October. Unfortunately, it will not be a merry Christmas for many families whose livelihoods have been crushed by layoffs.
Therefore, what is the next step? Where does the market go from here? What is needed to stop the bleeding? What is needed to restore confidence? Hopefully you didn’t come to this article for those answers. These are the challenges of the industry and the federal government who are currently working on securing an exit strategy. Let it be noted that if the American taxpayer has to provide any amount of donations to the industry that the government needs to reciprocate some of that generosity back the masses. Possible Government action to help the average American would be to slow down home foreclosures, bankruptcy claims, lower credit card interest payments, suspend student loan payments and the like.
During the long course of the political campaign season, politicians on all sides of the spectrum spoke to the character of the American people. That regardless of our differences, our collective will power will see us through any challenge presented. That being the said, the government should help out the American people and not just big industry. While Wall Street leaders wait in line for their taxpayer donations, countless people see their houses taken away, their small businesses close their doors and their savings depleted. So, at the end of the day, make sure that the ‘little guy’ gets his ticket to the bailout tent event. For if this bailout only address businesses needs and not the people, then the Preamble of the Declaration of Independence needs to be amended to read:
“We hold these truths to be self-evident, that all big businesses are created equal, that they are endowed by the Government with certain unalienable Rights, that among these are Profit, Privatization, and the pursuit of bailout resources when needed…”
Sunday, November 2, 2008
The Curse of the Babe
Throughout the past 85 years this phrase has reverberated across the lips of baseball fans. More specifically, the phrase has served as the theoretical basis for the Boston Red Sox continued struggle to gain exclusive access back to baseball immortality. It was incorporated into the nighttime prayers of young Yankee fans. It whispers through the squeaks of the B and D trains. And it provides the twinkle in the eye of all the Yankee greats watching from Monument Park.
But, the phrase carries a lot more metaphorical weight. Take the focus off of the New York Yankees and the Boston Red Sox and view this statement in terms of US economic and political health. For the past 85 years the US has evolved from a supplemental power on the other side of the Atlantic to a global force that has been able to tap every international resource and export American culture for an unbelievable return.
Over the last century New York has arguably been the Economic Capital of the world. It is the home of Wall Street, Time Square, and the Yankee’s. Though it was the natural capital of the young nation following the revolutionary war, a Dinner party deal between the financial genius Hamilton and the articulated pen Jefferson allowed the move to the swamp land on the Potomac. This moved political undertones to the south and opened New York to the benefits of capitalism. With the boom of capitalism, the expectations and wealth have transferred from the towers of Wall Street to the grounds of Yankee Stadium. Therefore, when the Yankees are winning, the US is winning.
So to get back on the economic tracks, the US needs to re-embrace the Yankees. We need to reacquaint ourselves with our past momentum and realize that the Yankees were right there with the upward trends. The Yankee’s have hoarded 26 World Series Trophies to their display case. Take note of the following years that the Yankee’s finished on top: 1923, 1927-1928, 1932, 1936-1939, 1941, 1943, 1947, 1949, 1950-1953, 1956, 1958, 1961-1962, 1977-1978, 1996, 1998-2000.
The 1920’s was a credit explosion. The flapper nation was thoroughly eating up the financial freedom that lending and credit provided. The art of commodities were introduced. US citizens went from the necessity driven individuals to a company’s target market. With the credit explosion and the lending power of American’s, the owners of the Yankee’s made one of the best investments in New York history, Babe Ruth. The babe was the 1920’s version of an economic stimulus. The swing of his bat and the long ball buzz that he created is why Yankee Stadium is coined “the House that Ruth Built”. 1923 saw the Yankee’s relocate into the newly built Stadium, an edifice that gave New Yorkers the emotional equivalent of what yesterdays Romans felt when they came upon the Coliseum.
In the same year, the Yankee’s took their first championship. Later in the decade as the wealth of the growing nation continued to balloon, the “murder’s row” Yankee’s enjoyed the 1927 World Series. 1928 was also a banner year due to the sustained strength that saw the pin stripes repeat. 1929 was a down year not only for the Yankees; Black Tuesday is a benchmark day in American History. It was the end point of Stock Market Success in the 1920’s as on Black Tuesday the market was deflated at an unprecedented rate that carried on for over a month. With this bottoming out, the Bronx also saw a decline in post season success.
With a tumultuous economic situation, countless individuals looking to the government for answers and assistance, FDR was elected to the chief seat. A native New Yorker, the situation was a welcomed relief. With the newly elected President in place, a renewed sense of confidence in the US economy, an eager Yankee club appropriately welcomed the World Series Trophy in 1932. While the US continued to rebound, seeing employment rates climb out of the basement, and the alphabet soup initiatives impacting multiple communities, the Yankees enjoyed the return to stability and success by taking 4 championships in the second half of the 1930’s. With Europe erupting into World War II, the US enjoyed a public appearance isolationist. But, in 1941 just a couple months removed from the Yankee’s 10th Championship, Japan gave the US naval force based in Hawaii a horrific wake up alarm on December 7, 1941.
From December 1941 through May 1945 the US would work with European allies to defeat the axis of evil. With the worlds focus on the events of Western Europe and the Pacific campaign the Yankees took one more championship in 1943. It was during the War that a lot of talent from the baseball diamond transferred to the various branches of the US forces. Joltin’ Joe, Teddy Williams, and the like joined the rest of the American all stars in the fight.
Let it be noted that never again since World War II has such an unprecedented rally or participation taken place. It is hard to imagine the sport starts of today returning home from Iraq; this isn’t a direct shot at current athletes not is a cheap jab at the war efforts. But, I am sure that leaving for war, or stepping away from contractual obligation to Team A and putting your marketing efforts on hold for Company B isn’t at the top of a modern athletes priority list.
With bits of confetti still decaying on the curbs around Manhattan the Yankees enjoyed another Championship in 1947. They would add one more to the display case before the decade was over. While the newly formed United Nations was trying to assess aid needs to war torn Europe in the early 1950’s; in the Bronx it was business as usual. The Yankee’s enjoyed a 4 year run atop the baseball’s summit. The rest of the Decade was full of “Ike,” the Korean War, I love Lucy, and 2 more world championships for the Yankees. Though much of what took place during the ‘forgotten’ war has never been promoted in our textbooks, the world has a lot more to it than the Yankees and the commercial age of the 1950’s.
The 1960’s had a palpable tone of change in the air. With John F. Kennedy narrowly beating Richard Nixon, the youth of America felt like their President had ascended to the White House. While Kennedy was asking “Ask not what your country can do for you, but ask what you can do for your country…” the Yanks were entering Training Camp with the 1960 AL MVP Roger Maris. 1961 would prove to be a record year for the Yankees. Not only did the M and M boys (Mantle and Maris) chase the Babe, the historic season saw the homerun record leave Ruth’s resume for Maris’s, and yet another trophy for the Yankee front office. The Bronx Bombers would also be successful in their defending title role in the 1962 season. This would be the last Championship for New York for the next 15 seasons.
The 1960’s was an intense era in the US. On the political side, the assassination of JFK, Bobby Kennedy, Martin Luther King Jr. and Malcolm X spoke to the undertones of destructive energies. The sense of hope and the belief in progress was all but eliminated. Though the Civil Rights movement did take steps forward, had the individuals listed above lived, the world we know today could be radically different. On the culture side, America welcomed the Beatles, Height Ashbury, and Woodstock.
The counterculture revolution saw experimentation, peace, and protest take progressive strides to make their presence known. Never before, nor since, has a movement of mass participation taken place. And throughout, a stunning soundtrack was solidified by The Grateful Dead, The Doors, Jimi Hendrix and Bob Dylan; voices of an era that still find a home on iPod playlists nationwide. The 1960’s also saw the US take on the French effort in East Asia; Vietnam. This is a topic much bigger than this piece however it should be noted that the Yankees did not obtain October gold throughout the ‘Police’ conflict.
It wasn’t until 1977 that the Yankee’s hoisted the championship trophy. This was the first taste of baseball glory for the new owner George Steinbrenner who led the charge to purchase the team from CBS in 1973 for a mere $10 million dollars. Steinbrenner or “the Boss” has been one of the most vocal and outspoken owners in Major League History. Through confrontations with managers and players alike, championships, and media controversies, The Boss has elevated the Yankees to one of the richest franchises in American sports history.
Under his stewardship, the Yankee’s have won 6 championships including a run in the late 1990’s that saw the pin stripes collect 4 rings in 5 years. And though he has, for the most part, removed himself from the day-to-day operations, he is still the Boss. During the championship runs of the 90’s, the US went from budget deficits to surpluses, job unemployment rates declined annually, and America knew little of international conflict.
I understand that times change, certain actions need to be taken. But, in the absence of Yankee success, America is suffering as well. Since the Yankee’s last championship in 2000 we saw a scandalous Presidential race conclusion, the experience on September 11th, 2 simultaneous wars, and an economic crisis that borders on the conditions of the Great Depression.
I am not a Yankee fan. In fact I actually have enjoyed their absence from the Fall Classic. Additionally, I am by no means under the assumption that should the Yankee’s start winning again, that somehow our country will start turning around. But, as history has demonstrated, the country has enjoyed certain successes while the Bronx was collecting trophies. On the eve of a critical election, and with the Yankee’s moving into their new stadium, let us all hope that through one means or another, some good is in store for all of us in 2009.
But, the phrase carries a lot more metaphorical weight. Take the focus off of the New York Yankees and the Boston Red Sox and view this statement in terms of US economic and political health. For the past 85 years the US has evolved from a supplemental power on the other side of the Atlantic to a global force that has been able to tap every international resource and export American culture for an unbelievable return.
Over the last century New York has arguably been the Economic Capital of the world. It is the home of Wall Street, Time Square, and the Yankee’s. Though it was the natural capital of the young nation following the revolutionary war, a Dinner party deal between the financial genius Hamilton and the articulated pen Jefferson allowed the move to the swamp land on the Potomac. This moved political undertones to the south and opened New York to the benefits of capitalism. With the boom of capitalism, the expectations and wealth have transferred from the towers of Wall Street to the grounds of Yankee Stadium. Therefore, when the Yankees are winning, the US is winning.
So to get back on the economic tracks, the US needs to re-embrace the Yankees. We need to reacquaint ourselves with our past momentum and realize that the Yankees were right there with the upward trends. The Yankee’s have hoarded 26 World Series Trophies to their display case. Take note of the following years that the Yankee’s finished on top: 1923, 1927-1928, 1932, 1936-1939, 1941, 1943, 1947, 1949, 1950-1953, 1956, 1958, 1961-1962, 1977-1978, 1996, 1998-2000.
The 1920’s was a credit explosion. The flapper nation was thoroughly eating up the financial freedom that lending and credit provided. The art of commodities were introduced. US citizens went from the necessity driven individuals to a company’s target market. With the credit explosion and the lending power of American’s, the owners of the Yankee’s made one of the best investments in New York history, Babe Ruth. The babe was the 1920’s version of an economic stimulus. The swing of his bat and the long ball buzz that he created is why Yankee Stadium is coined “the House that Ruth Built”. 1923 saw the Yankee’s relocate into the newly built Stadium, an edifice that gave New Yorkers the emotional equivalent of what yesterdays Romans felt when they came upon the Coliseum.
In the same year, the Yankee’s took their first championship. Later in the decade as the wealth of the growing nation continued to balloon, the “murder’s row” Yankee’s enjoyed the 1927 World Series. 1928 was also a banner year due to the sustained strength that saw the pin stripes repeat. 1929 was a down year not only for the Yankees; Black Tuesday is a benchmark day in American History. It was the end point of Stock Market Success in the 1920’s as on Black Tuesday the market was deflated at an unprecedented rate that carried on for over a month. With this bottoming out, the Bronx also saw a decline in post season success.
With a tumultuous economic situation, countless individuals looking to the government for answers and assistance, FDR was elected to the chief seat. A native New Yorker, the situation was a welcomed relief. With the newly elected President in place, a renewed sense of confidence in the US economy, an eager Yankee club appropriately welcomed the World Series Trophy in 1932. While the US continued to rebound, seeing employment rates climb out of the basement, and the alphabet soup initiatives impacting multiple communities, the Yankees enjoyed the return to stability and success by taking 4 championships in the second half of the 1930’s. With Europe erupting into World War II, the US enjoyed a public appearance isolationist. But, in 1941 just a couple months removed from the Yankee’s 10th Championship, Japan gave the US naval force based in Hawaii a horrific wake up alarm on December 7, 1941.
From December 1941 through May 1945 the US would work with European allies to defeat the axis of evil. With the worlds focus on the events of Western Europe and the Pacific campaign the Yankees took one more championship in 1943. It was during the War that a lot of talent from the baseball diamond transferred to the various branches of the US forces. Joltin’ Joe, Teddy Williams, and the like joined the rest of the American all stars in the fight.
Let it be noted that never again since World War II has such an unprecedented rally or participation taken place. It is hard to imagine the sport starts of today returning home from Iraq; this isn’t a direct shot at current athletes not is a cheap jab at the war efforts. But, I am sure that leaving for war, or stepping away from contractual obligation to Team A and putting your marketing efforts on hold for Company B isn’t at the top of a modern athletes priority list.
With bits of confetti still decaying on the curbs around Manhattan the Yankees enjoyed another Championship in 1947. They would add one more to the display case before the decade was over. While the newly formed United Nations was trying to assess aid needs to war torn Europe in the early 1950’s; in the Bronx it was business as usual. The Yankee’s enjoyed a 4 year run atop the baseball’s summit. The rest of the Decade was full of “Ike,” the Korean War, I love Lucy, and 2 more world championships for the Yankees. Though much of what took place during the ‘forgotten’ war has never been promoted in our textbooks, the world has a lot more to it than the Yankees and the commercial age of the 1950’s.
The 1960’s had a palpable tone of change in the air. With John F. Kennedy narrowly beating Richard Nixon, the youth of America felt like their President had ascended to the White House. While Kennedy was asking “Ask not what your country can do for you, but ask what you can do for your country…” the Yanks were entering Training Camp with the 1960 AL MVP Roger Maris. 1961 would prove to be a record year for the Yankees. Not only did the M and M boys (Mantle and Maris) chase the Babe, the historic season saw the homerun record leave Ruth’s resume for Maris’s, and yet another trophy for the Yankee front office. The Bronx Bombers would also be successful in their defending title role in the 1962 season. This would be the last Championship for New York for the next 15 seasons.
The 1960’s was an intense era in the US. On the political side, the assassination of JFK, Bobby Kennedy, Martin Luther King Jr. and Malcolm X spoke to the undertones of destructive energies. The sense of hope and the belief in progress was all but eliminated. Though the Civil Rights movement did take steps forward, had the individuals listed above lived, the world we know today could be radically different. On the culture side, America welcomed the Beatles, Height Ashbury, and Woodstock.
The counterculture revolution saw experimentation, peace, and protest take progressive strides to make their presence known. Never before, nor since, has a movement of mass participation taken place. And throughout, a stunning soundtrack was solidified by The Grateful Dead, The Doors, Jimi Hendrix and Bob Dylan; voices of an era that still find a home on iPod playlists nationwide. The 1960’s also saw the US take on the French effort in East Asia; Vietnam. This is a topic much bigger than this piece however it should be noted that the Yankees did not obtain October gold throughout the ‘Police’ conflict.
It wasn’t until 1977 that the Yankee’s hoisted the championship trophy. This was the first taste of baseball glory for the new owner George Steinbrenner who led the charge to purchase the team from CBS in 1973 for a mere $10 million dollars. Steinbrenner or “the Boss” has been one of the most vocal and outspoken owners in Major League History. Through confrontations with managers and players alike, championships, and media controversies, The Boss has elevated the Yankees to one of the richest franchises in American sports history.
Under his stewardship, the Yankee’s have won 6 championships including a run in the late 1990’s that saw the pin stripes collect 4 rings in 5 years. And though he has, for the most part, removed himself from the day-to-day operations, he is still the Boss. During the championship runs of the 90’s, the US went from budget deficits to surpluses, job unemployment rates declined annually, and America knew little of international conflict.
I understand that times change, certain actions need to be taken. But, in the absence of Yankee success, America is suffering as well. Since the Yankee’s last championship in 2000 we saw a scandalous Presidential race conclusion, the experience on September 11th, 2 simultaneous wars, and an economic crisis that borders on the conditions of the Great Depression.
I am not a Yankee fan. In fact I actually have enjoyed their absence from the Fall Classic. Additionally, I am by no means under the assumption that should the Yankee’s start winning again, that somehow our country will start turning around. But, as history has demonstrated, the country has enjoyed certain successes while the Bronx was collecting trophies. On the eve of a critical election, and with the Yankee’s moving into their new stadium, let us all hope that through one means or another, some good is in store for all of us in 2009.
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