The People News, a free newspaper serving Cleveland Tennessee (TN) and Bradley County Tennessee (Tn).





Of Bradley County Tn.


SEPTEMBER  2008

                            The People News, a free newspaper serving Cleveland and Bradley County Tn.

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It's all about the Money or Is It?

It is about time for my annual sojourn west to that great little place known as Las Vegas. As I do before every trip, I read several economic books just to remind myself not to be tempted. Remember, if you place little value on money just try doing without it sometime. If you are economically challenged (or poor as we once referred to ourselves) you know that money matters.

Adam Smith in The Wealth of Nations taught us a most important economic principal: "Consumption is the sole end and purpose of all production." P. J. O'Rourke illuminates them in an even more entertaining and witty manner in explaining Smith's ideas. O'Rourke builds on Smith's view of economic progress which he states depends largely upon "a trinity of individual prerogatives: pursuit of self-interest, division of labor, and freedom of trade."

Although The Wealth of Nations is widely regarded as Smith's most influential work, it has been reported that Smith himself "always considered his Theory of Moral Sentiments a much superior work to his Wealth of Nations." P. J. O'Rourke, agreed, calling Theory of Moral Sentiments "the better book". It was in this work that Smith first referred to the "invisible hand" to describe the apparent benefits to society of people behaving in their own interests.

Nobel Prize Winner Muhammad Yunus of Bangladesh who champions the poor has written a book that many people in this town, especially the spiritually inclined should read: A World Without Poverty: Social Business and the Future of Capitalism. Dr. Yunus developed the idea of Microcredit that he employed in the Grameen Bank. This concept and practice of "dispensing tiny'' loans is creating global change and putting a conscience into capitalism allowing for true compassion, lasting peace cannot be achieved unless large population groups find ways to break out of poverty. The broader goal is financial inclusion for those who have been left out of the economic boons of the past. Micro lending is also a smart concept as a commercial proposition, as funders can also earn money. The revolutionary Grameen banking system is estimated to have extended credit to more than seven million of the world's poor, most of them in Bangladesh, one of the poorest nations in the world. But this country is now on track to eliminate poverty. The amazing thing is that the vast majority of the beneficiaries are women.

J C Bowman

-J. C. Bowman, a native of Cleveland, is a well informed and outspoken conservative educator. Is a freelance public policy analyst who resides in Cleveland, TN. Prior to this, he was Director for the Center for Education Innovation at Florida State University.  He served as the Director for the Florida Department of Education Choice Office and as the Chief Policy Analyst of the Education Policy Unit for Florida Governor Jeb Bush.

E-mail: flapolicy@hotmail.com


Website: www.policyexperts.net


The conventional banking system had been reluctant to give credit to those who were too poor to provide any form of guarantee. Micro Credit reaches out to people shunned by conventional banking systems - people so poor they have no collateral to guarantee a loan, should they be unable to repay it. Dr. Yunus' has transformed the vicious circle of "low-income, low saving and low investment" into a virtuous circle of "low income, injection of credit, investment, more income, more savings, more investment, more income." We need to listen to more people like Smith, O'Rourke and Yunus. Perhaps that is why I have a problem with two groups of people: socialists who want to take from the rich and give to the poor in a wealth redistribution scheme and opportunists who want to keep "the poor" poor so that they have no outlet and they can take advantage of them.

Speaking of people who take advantage of others, if you think giving up your favorite food vice is tough, try quitting your gym. Trouble canceling membership is one of the top complaints against fitness clubs logged with the Better Business Bureau and states' attorneys general offices. That is why I am member of the hassle-free YMCA. The fact that a certain, unnamed fitness facility signed up a low income, unemployed individual with no car or house and a boatload of bills irks me. I contacted this "fitness facility" and asked if I could pay a small cancellation fee on behalf of this non-related person so that he end his 3 year contract--and pay for his food, clothing and shelter. They were not only rude shuffling me off to others within their organization they were not at all helpful. Finally, to reach the corporate headquarters I had to institute a series of calls, which I found time consuming and frustrating. Did I mention, they also gave me some third party billing company and an incorrect headquarters telephone number? In the end I left a message on some "corporate" voice mail system. I am still waiting on a call back. Finally, I just told the 19 year old kid to just close his bank account. I guess the "fitness" facility can harass his 75 year old grandmother for the young man's portion of beans and cornbread. Because the "fitness club member" he has no job, no car and no home. He worked out a total of three times. I am sure his credit rating will be ruined. My advice is to see an attorney before joining anything but the YMCA and create a paper trail, and you might want to alert credit agencies about the issue. You can also work out free with my friend Maurice Saliba just call 715-2058. Tell him I sent you.


Speaking of economics. There are an estimated 93,538 people living in Bradley County this includes infants, adults and a sizeable elderly population. The Cleveland Daily Banner reports a daily circulation of 16,277. I would argue that the number of paid subscriptions is actually much lower--probably around 11,000, with Wednesday and Sunday papers being the best days of circulation. However, suppose 1 in 10 people living in Bradley County purchase the Bradley News each week for 50 cents. The potential customer base, which is probably unattainable at least initially, is 9353 paying customers. If the Bradley News could reach the target number within a year, the once free paper would generate $4676.50 each week for the company. That would be $243,178 potential dollars annually in revenue. (Keep in mind indications are they only plan to publish 50 times a year which would also reduce revenue). If paid advertising could simply equal the cost of production, which is also doubtful but possible, and operational costs (telephone, rent, taxes, electricity, workman's compensation, employee benefits, social, security, etc...), were held to roughly $63,178 dollars--which is probably a fair assessment. There would be $180,000 left to pay for salaries. I have no idea how much was invested on the front end, but considering there would be about 10 employees needed to operate a small newspaper (reporting, editing, advertising, layout/graphics, delivery) the average salary would be about $18,000 a year for a full time job.

From a big picture view I simply do not see a large profit margin for ownership or investors in weekly newspapers other than a daily (Cleveland Banner) or monthly paper (The People News) and clearly this venture might be a high risk investment. Now Art Newman may have that kind of money to lose, but unless advertisers flock to reach the 9,000 plus potential readers in droves--they would have to ask themselves with an economic downturn and declining newspaper sales if that risk is a good return on investment. Radio, TV and the Internet would probably reach more people cheaper and more efficiently. My friend Jennifer Demuth at www.bradleyondemand.com probably has a novel way to reach thousands. Believe this or not, I really do wish the Bradley News good luck on their latest endeavor, but many are already anticipating their demise. There are a few people, probably the Riviera or Monaco visiting types who specialize in off-shore betting, laying odds on the closure date as we speak. Let me caution you, Susan Shelton is one tough and resourceful lady. She might just figure a way to pull this off. I have to go; my bookie is on the other line. I love Vegas. Now show me the money. Happy Birthday Mom!

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