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Ted Klumb is a Commercial Real Estate Broker residing in Menomonee Falls. He is a graduate of UWM and ran his own business for 15 years. He is married with two children. Ted is also a former member of the Menomonee Falls School Board, a faith development music teacher, and an avid, but not a very good, musician.

July 2008 - Posts

Starbucks and Boeing

By Ted Klumb
Wednesday, Jul 30 2008, 10:15 PM
I just returned from Seattle, Washington and when I landed, the city was abuzz with the news that the United Arab Emirates had just ordered 200 planes from Boeing. When I left, the news was about Starbucks loosing about 1,000 executive positions. When a city has such diverse corporations, it is easy to see how bad news in one industry can be tempered by great news in another. Love Starbucks or hate them, it would be great to have a company like them headquartered in Milwaukee. There are still lots of good jobs at their headquarters and their building is beautiful site to see in a not so great part of Seattle.

 

Pay Elected Officials More Money

By Ted Klumb
Tuesday, Jul 22 2008, 09:26 PM

That’s right, your eyes are not deceiving you. Future elected officials should be paid more-much more.

                       

As a former elected official who did not run for office for the money, I will provide some very good reasons to support my claim. FYI, I never voted myself a raise or asked for more money for auto mileage. In fact, I never submitted an expense report in my 3 years of service. This is very typical of most elected officials in the Falls and Germantown.

           

Fact: An average board member will save your community or school district hundreds of thousands of dollars, and a good one will save millions in the long term.

           

Fact: A bad board member will cost taxpayers millions and continue to cost you even when they move on (example: Milwaukee County Pension Scandal). They don’t care if they raise your taxes, or about the decline of performance, as much as they are liked. Everyone, good, bad, or mediocre, is paid the same wage, about $4,500 a year. Would you trust your personal finances to someone who only made that much in a year?

                                   

Let’s look at the perceived problems: “Elected officials don’t run government or school districts like a business.” “They don’t care about raising taxes.” “They don’t care about delivering a quality product/service.” “Nobody who could do a better job runs for election.” (I don’t believe any of this to be entirely true, but examples of this can be seen everywhere you go.)

           

Now let’s pretend you are the owner of an enterprise where all, or some, of the above examples were true of management. What would you do?

           

When a company is in trouble, owners usually seek a proven top-gun(s) to come in and turn things around. Higher pay is always necessary, and expectations, time-lines, and results go with it. With taxpayers, it is the opposite.

               

When serving on a board, I will admit, I was more interested in getting results than what someone was paid. However, I was more prone to fire someone, or freeze the pay of anyone who was not performing. That ensures results, or consequences. Results mean more savings, better performance, lower taxes, and better value for taxpayers. Consequences bring faster management changes if results and goals are not met.

                           

Let the free market, capitalism, and competition apply to elections. Higher pay will bring out more quality candidates, or at least, a larger selection of candidates. Some of our best school board members were/are stay at home moms. Many moms have told me they were interested in running but would be better off finding a higher paying part time job that would not conflict with family time. We could tap into that market with higher pay.

               

How many employers are happy to have their employees spend less time on the job to attend committee meetings? None, and few who would admit it. How many professionals could bill more hours or make more sales that are commissionable if they were not spending 4, 9, or more hours a week serving the public? The answer: the very few who are generous enough to stick their neck out for their community or those who could not make $4,500 on the open job market.

              

Paying more will not eliminate opportunists, quite the opposite, but it should inspire more candidates and interest in elections because people should expect more for their money. If the electorate chooses poorly, paying someone more, or less, would not change that result anyway. Vigilance is a price we pay for Democracy and it can pay dividends.

                       

Being in office can be good for business, but the reverse is also true. If you make the hard decisions, as you are supposed to do, few will like you, many won’t care, and some will hunt you down like Inspector Javert in Les Miserables. When someone or a bogus group makes accusations about you, or your business, it can be detrimental even if they are complete fabrications. What person would run for office under those conditions? Someone very committed or someone who should be committed. Higher pay would narrow that spectrum.

                           

I suggest raising the minimum salary of board members to $12,000. The pay increase would take place when the newly elected person taking an incumbent’s position is sworn in. That way nobody votes for his or her own pay increase and the field of candidates opens up immediately.

                          

If you like your elected representative, support them and reelect them. If not, let’s fill the ballot with some fresh candidates.

                          

Yes, yes, public service should be selfless, but most elected officials, who don’t run for the money, also put in time at church, Rotary, schools, community service, etc. so let’s not try and put a guilt trip on them for not being noble. Many miss their kid’s baseball games, wife’s birthdays, etc. to make meetings or keep their full time jobs. Serving is already a personal sacrifice; it should not be a financial one too.

 


 

It's Only Jews...

By Ted Klumb
Saturday, Jul 19 2008, 04:08 PM

It’s only Jews…

 

My favorite college professor, who later became a friend taught valuable lessons that I hope to pass on to my children.

 

Larry Rudner was fascinated by the Holocaust. He lost 3 grandparents and numerous aunts and uncles in Treblinka, an extermination camp in Poland.

 

I was fortunate enough to take his Holocaust course. The first day was very memorable. The first question Professor Rudner asked was how could something like a Holocaust happen? After many different answers he asked, “could this happen again?” Before he would let the class answer he admonished one of the students in the class who was dressed very shabbily. He began to pick on the student by pointing out that nobody should attend class dressed like that and engaged the class to comment.

  

When it became apparent the class was also piling on this student, I spoke up and defended the student. I was promptly instructed to shut up or I would be the next victim of his critique.  For a while, I sat there in stunned silence until reengaging the professor who continued to whip up on my classmate.

  

It was then he stopped. He looked sad and then he spoke. “The student and I had planned this event in advance. He purposely dressed poorly to help me make my point. Holocausts are started by the power hungry; beating up on those that cannot or will not defend themselves. Holocausts grow when those who know better, are stronger, sit by, and let it happen or are willing participants. Silence is willing participation. So far, only one person will pass this class. Now get out of my sight.” That was day one…

   

Those who did not stand up against Kristallnacht (http://en.wikipedia.org/wiki/Krystalnacht) found it harder and harder to maintain their personal freedoms (especially and ironically religious freedom) in their own country or stop a movement that would haunt many untill the end of their lives. Those who justify their silence by thinking, “It’s only Jews, members of our community, someone else’s kid, or that quiet neighbor” are often unaware of who is next in line.       

 

 

Note: Larry Rudner wrote several novels on the Holocaust. His last novel was published shortly after he died of brain cancer. Shalom my friend.

 

Stupidity Disguised as Compassion Makes Taxes High

By Ted Klumb
Tuesday, Jul 8 2008, 05:38 PM

The dreaded “Mortgage Crisis” is in full bloom and the woe lemmings are dutifully following the doomsayers over the cliff of common sense.

 

What caused this crisis?

 

  1. Stupid borrowers who really knew they could not afford to buy a house that was not in their league, No, there was no socioeconomic bias happening here. CEOs loosing million dollar homes were in this equation too and just as stupid as anyone else who wanted to live well beyond their means.     
 
  1.  Stupid greedy lenders who thought they could pass these bad loans on to the secondary market, often took credit applications written on cocktail napkins, never seriously checked reported/claimed salary, and checked credit scores by seeing how many blue stars someone had on Ebay.

 

What is the government solution to this problem? A $250 Billion bail out to Dumb AND to Dumber.

 

We the people are rewarding those who made idiotic financial decisions even though 97% of Americans are paying their mortgages on a regular basis and on time. We are letting the lending entities who made these stupid loans live to loan another day instead of letting them die a rightful death so they won’t corrupt the market in the future.

 

Let the borrowers go back to renting since they have no equity in their “home” anyway. Let the lenders go bankrupt or go to jail since they are bad business people. This is a solution that costs taxpayers nothing and will correct the market within months.

 

 
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