Thursday, November 3, 2011

Opportunity at the Intersection



As a wide eyed graduate student, I set out to field verify my research. I had compiled copious amounts of information for my "Index of Historically Significant Sites In Kansas City Jazz History". I poured over city directories verifying where, and how Kansas City became one of the cradles of Jazz in America. The Sunset Club, The Reno Club, The Eblon Theater: Each has it's own significance, and each solidified my understanding of KC as one of the centers of the universe for Jazz. Quickly, however, I learned a hard truth. 


Those places are all gone. Almost without exception. 


The dark side of the end of segregation was that it destroyed vibrant independent economies within the black community. It quickly became apparent that I had stumbled into an area far beyond the scope of a thesis in Jazz musicology and history. I found myself at the intersection of sociology, economics, governmental policy, and a whole mess of other stuff that was to me, confounding.


A little over a decade ago, under the leadership of Mayor Emmanuel Cleaver, the first phase of a major revitalization was complete in the area of 18th and Vine. Ultimately, it manifested in the major construction projects of The American Jazz Museum, The Negro Leagues Basesball Museum, and the Gem Theater. Later the Lincoln building was revitalized and now houses several small businesses, and even a small business incubator. There are several restaurants, and night clubs that feature Jazz and Blues. There are also neighborhood businesses, and the Zodiac Motorcycle club is still there, and has been for over 30 years. The Mutual Musicians Foundation is still one of the greatest places in America to experience authentic Jazz culture into the wee hours of the morning. 


The development of this area preserved what little still existed of the historic infrastructure. This is a very good thing. In sociology, they refer to these places as "sacred spaces". 18th & Vine is arguably one of the most recognizable sacred spaces in African American cultural heratige. It is right that we invested to bolster that legacy.


Unfortunately, ten years later, not much more has been done. White folks have some general vision  of the district (that they have probably never been to) as "scary" or a "crappy neighborhood", and for the most part, black entrepreneurs have not build on the momentum of this decade old investment.


As evidenced by my glorious profile pic on this blog, I am a white guy. Now I work in the Jazz district every day. I can tell you it's an area ripe for development, with low cost land, potential subsidies, and it's flush with low-cost labor resources. It's safe, and has a neighborhood feel. As a matter of fact I find people to be much more friendly and cordial than in many other parts of the metro area. Eye contact, and "how are you doing" is the norm when passing people on the street. In this way, it reminds me of the small rural town I grew up in. The surrounding neighborhoods actually are suffering from urban gentrification, and less people live in the area than in years past. Because of this, there is less crime and such than many other areas in KC. There are more break-ins and assaults in the P&L District, and on the Plaza.


There should be more development here.
The reason the development does not happen has nothing to do with scared Johnson county wussies (they are) or territorial black folk who want to "get mine" (they do). 

It's because three entities "own" the district. The JDRC, The BEU, and KCMO. All of these entities have done great and important things to help preserve and develop the Jazz district, but it often seems like a pissing contest as to who has done the most, and who "owns" whatever succeses have occurred.


Until all three of these organizations get on the same page, relinquish control, and move forward with an open plan that promotes and allows investment , nothing will happen, EVER! Also, the last-minute deal to make most of that great new housing built in the Jazz District into HUD housing does not help. If these things were to change, affluent african american entrepreneurs would invest heavily. (Um yes, they do exist...many of them) Hell, entrepreneurs of all stripes will invest. But you can't even purchase one of these nice condos or apartments, not at any price. So why should business people risk it? HUD is an important program that gives people a needed leg-up, but in the district, I believe it's misplaced. . 


It's fundamental, and it's never going to change until the current systems of administration are destroyed, and replaced.


Cities like Memphis, and New Orleans have done similar things. It did not happen orgnically. It did not happen on it's own. It took years of concerted effort and cooperation on the part of private investment, government entities, and the people all together. There is no reason we cannot do the same thing here in KC. We just need to get everyone to the table.
People need to break out of their safe little bubbles in southern Johnson County, or as I call it "Caucasia". We have a rich cultural heritage in KC. It's fun and exciting to try new things, really, I promise. No one is going to steal your pocketbook, at least no more than they might in the P&L District or on the Plaza. 


...And for those stakeholders already in the Jazz District, no one is going to steal your legacy. It's set in stone. The only way to grow this thing is going to be for us all to get together. As the great philosopher James Brown said, 


People, People
We've got to get over
Before We go under


People People
We got to get together
Get on the Good Foot
Change it, yeah!
So what do you thin KC? Are we ready to have these fierce conversations? Can we find the path to investment and continued development in this gem of an area (pun intended). Can we keep our eye on the ball and make our own rich cultural history part of our city's growth and economic recovery? Or will we keep things as they are, let fear and misunderstanding rule our decisions, and possibly loose our own sacred spaces? I'll be at the bar at the Juke House, or the Blue Room, or Danny's Big Easy, or maybe the Foundation. Let's all talk about it, first round's on me. 

Wednesday, August 31, 2011

What if there is no exit?


"No Exit" is a 1944 existentialist French play by Jean-Paul Sartre. In it, a man  named Joseph Garcin finds himself in a room that the audience soon realizes is hell. The room has no windows, no mirrors, and only one door. Essentially, there is no exit. 


I have come to realize that the current investment culture in America sees business equity investment in the same way. If there is no exit, you are stuck in hell.


There are many organizations focused on the development of personal wealth using investment in start-ups and new business ventures. We call them Venture Capitalists. This banner is somewhat aggressive, and for some, can carry a negative connotation. So many high net worth individuals are banding together to create "Angel" groups. That sounds much nicer doesn't it? I envision ethereal winged beings of light and energy descending on me and my business to bestow capital from the vaults of altruism and hope.

These groups seem to be aimed at the very thing we need most in the US. We need innovation and new business to start moving the needle back to prosperity. We need America to get back to the business of making stuff, and doing things. 
But let's get real- VCs, Angels, whatever you want to call them, are in it for one purpose- to make a return. And why not? That is the name of the game baby! Let's make as much money as possible while extending the minimum in resources, and energy. That's how we make profit!
But the chasm between the haves and the have-not's is so vast that, in many cases, the only way for those with creative ideas and effective business models to pass though the door of prosperity (assuming they do not have high degree of personal wealth) is to sell off a piece, or most of the pie to these types of investors. 
Borrowing isn't really an option anymore either. The current banking and financial crisis has manifested in such a way as to make the bankers loose their damn minds. The person of average means can hardly get a business loan or a home loan today. And if they can, they probably do not want to. For many, the only way a business person can qualify for a loan today is if they have enough assets that they do not really need one in the first place. 
The financial services industry has turned off the money faucet. Too many bad loans, or haven't you heard? They bought insurance to cover the bad debt, but then the insurance company was "too big to fail". 
SBA, a program supposedly aimed at helping American entrepreneurs, can't really help either. Unfortunately, programs are only "good enough". They don't go deep enough and they don't apply the types of rigor needed to truly analyze and identify barriers to success for entrepreneurs. They are wrought with books, information, fliers, web sites, and all kinds of information, but virtually no individualized help for the entrepreneur to actually apply this information to their business or idea. The issue is not curriculum, it's knowledge transfer. The best these programs can do is to find volunteers to mentor entrepreneurs.
I'm sure that some of these volunteers are great, and some have undoubtedly helped entrepreneurs do great things. But you get what you pay for. And I know entrepreneurs who have participated in these programs who tell me they feel uncomfortable asking for too much help from these mentors. After all, they are volunteers. So, as is often the case with state sponsored programs, good enough, is just good enough.

Anyway, we are left with this alternative of a burgeoning cottage industry of investment capital. Investment into companies for one main purpose- to exit. To leave. To stop. 
The very idea that business can or should be created for any other purpose than to sell is thought of as foolish, quaint, "old-timey". 

"Everyone sells", is what one venture capitol expert said at a recent conference I attended. "It might take 50 years, but everyone sells". This might be the most cynical, and saddest affront to the American dream I've ever heard. The "American Dream" had been hijacked and twisted into something that aspires to a ridiculous notion that everyone can be filthy rich. That is NOT the American dream. The American dream is that each of us can pursue happiness, with dignity. How in the hell did that become "filthy rich" only?

I know many VCs. I know many Angels. This post is not meant to be an affront to them. Money makes the world go 'round. My point is this:

Rather than exclusively creating business for business sake, expecting the big pay day, working toward the "exit"... what if, and this is going to sound crazy so bear with me...


What if we tried going back to developing businesses designed to help the owners to make a living with dignity, rather than to cash out? What if we worked to support business models that are built to serve a neighborhood, rather than a pan-global scalable enterprise? What if we focus on creating an ecosystem that fosters business development with, gulp, no exit? 


Would it really be hell?


Friday, June 24, 2011

Kids, I don't know whats wrong with these kids today...

This review serves as a microcosm of what is terribly, terribly wrong with the millennial generation. Rather than cultivate an understanding of music, music history, musicology, not to mention basic journalistic competence- just regurgitate a set of banal comments that reflect your own shallow emotional responses to things you do not comprehend. You must take responsibility for the fact that you are the reason why we live in a world where Justin Beiber can exist. Please stop. Now.


NPR would not post my above comment. I believe it violates their posting "rules" that prevent them from allowing unimaginably young reviewers (who are given a platform to engage with millions) to get hit with some truth. Weep with me for the future of rock and roll.


Here's the review that inspired my ire.


http://www.npr.org/blogs/allsongs/2011/06/24/137105421/youve-never-heard-dark-side-of-the-moon#commentBlock?sc=fbc



Monday, June 13, 2011

Yes Boomers, it IS your fault.


I recently read a very insightful blog by Uber-blogger and thought leader Ted Coine'. He makes some great points in his post entitled "An Open Letter to the Young & Unemployed".  You can read it here: http://www.tedcoine.com/archives/107

There was a theme however, that got me thinking. It has to do with the push-back I keep hearing from Boomers about our current economic situation we find ourselves in. Essentially, it comes in the form of this statement: "It does no good to keep trying to place blame on us for this mess, we just all need to work hard to get out of the situation".

My own caveat: I agree kids today should listen to grown-ups, because they know stuff.  If you are over 50, you are not going to be comfortable with much of this, but please read through to the end. Also, this post is meant to be less a direct response to the actual article or Mr. CoinĂ© , and more a general commentary on generational issues we face as a society. Having said that….giddy up!!

An open Letter in Response-

Dear Baby Boomer,

It's not young peoples fault that your boomerang kids are still at home.

In the spirit of full disclosure, I’m what one would call a GenX'r. I was born solidly in the middle of the range that is generally referred to as the "Lost" generation.

We grew up hearing the same rhetoric about us that is now used about the Gen Y and Millennial people. "They are self absorbed", "They are coddled", and “They are entitled".  Believe it or not, they get it, and they hear you. They stand ready to take whatever punches are coming. They may even have to take knee sometimes, but their resolve is strong, as is the desire to win.

However, there is a 500 pound gorilla in the room that no one wants to talk about. That is the fact that, yes- this economic mess IS your fault! Stop telling us to pay no attention to the man behind the green curtain! Please stop trying to stifle the conversation as just a meaningless “Young vs. Old” argument. Boomers are now in the power seat, and have directed the conversation away from this fundamental fact for too long.
Sure, it’s easy enough to say that it does no good to place blame on anything as vague and encompassing as an entire generation.  In this case it is unfortunately true. Here is why: the defining characteristic of your generation is inconsistency, and hypocrisy.

WOW! That is a pretty aggressively negative statement, right? Well, buckle up, because it’s the main driver for many of our society’s problems today.

Boomers like to wax poetic about being the generation that spurred a new expanded consciousness and forward thinking in the world. After all, your generation was the one who fought for equal rights and social change in the 60’s.  You rebelled against the self-sacrificing, duty and honor based concepts of your parents. You created a new world of social values. This became your defining characteristic as a generation.

You then immediately turned your backs on those concepts in the 70’s and made it about hedonistic self-indulgence. As your generation made it’s way into the work force and became influencers of the economy, America saw one it’s most dark and depressing economic eras including not one, but two recessions, stagflation, and the beginning of the end of the American dominance in many industries including the automotive industry. 

Then in the 80’s you overcorrected, and made it about greed and economic self-indulgence. You turned your back on the concepts of dignity for the working class, and created a fantasy that everyone should aspire to be wealthy and affluent. You dropped your deeply held beliefs that economic goals and focus where a bad thing, and you did a 180. You made it ALL about that. You took social justice off the mantel and replaced it with perceived affluence. Again, you turned your back on your core-identifying characteristic.

The 90’s came, and you doubled down. You created false tech economies, and gambled with IPOs, VCs and worthless stock options. No longer where you about creating something, or even building something, you made it about profit, and outsourcing. In 1995 your generation was at the reigns for the first bail out of Goldman Sachs, and that public/private parasitic relationship was cast in iron. You created the paradigm of  “irrational exuberance” for the economy, and we are still paying for it today.

By the year 2000, the defining characteristic of the Boomer generation became an egocentric pseudo-nostalgic attitude coupled with evangelical conservatism. This again, is something that people don’t want to discuss, but what a contradiction!

At this point Boomers are creating false economies so elaborate that they make the IPO tricks of the 90’s seem “Old Timey” and quaint. (Google this: Sub-Prime Lending Crisis). Government backed trillion dollar handouts to billionaires are so common now, that no one bats an eye. The dignity of the working class no longer exists in popular culture. As Ricky Bobby said, “If you ain’t first, you’re last”.  Meanwhile, Boomers are more concerned with spending their retirement savings on some sort of rock band camp, or surfing lessons, or some other equally self indulgent activity, than they are in mentoring, developing, or engaging in any altruistic endeavors (see “The 60s”).

Only now are some of the older Boomers beginning to realize that these generations that they have maligned from Gen X on, are the ones who will be wiping their butts and changing their adult diapers for the next 30 years. Only recently have some began to decry the fact that “our grandchildren will be paying for this”, even as they vote en masse to protect their own back sides with the safety net of Social Security, and Medicare while making it all but inevitable that that system will implode by the time the next generations will need it.

Well, there is a silver lining. You see, the Gen X, and Gen Y generations are also connected to the Greatest Generation. They were and are our grandparents. Believe it or not, many of us have developed a sense of duty, honor, and altruism because of this.  We’ll take care of you. We’ll carry you through. Your parents taught us that. And many of us are teaching this to our kids.

While it makes a lot of sense to tell this newest generation entering the work force to “buck up” and “pull themselves up by their bootstraps”, be aware that the boots need to be pulled up because of what YOU did, not because of what THEY did. Be careful with the sanctimony. Kids today have instant access to every bit of information in the world, including details about the Boomer generation and what you have done for half a century.

There is no getting around the fact that YOU created this economic disaster, not the boomerang kids.

As negative as this portrait of the Boomer generation may seem, young people don’t hate you. Some of our best friends are Boomers. And you get all the credit in the world for some pretty awesome cultural phenomenon such as real rock music played with electric guitars, and a thousand sweet soul songs with a melody.

There is still hope for you guys. You still have immense capacity and resources to make a difference. At this point, my only hope is that you stick with your defining characteristic: inconsistency and hypocrisy.

1) Be hypocritical and mentor a young person, rather than focus on the indulgent retirement dreams you have been building and rebuilding. If you place so much value on your experiences, then don’t malign the young people for being the product of the society that you created, take a proactive role and help them.

2) Be inconsistent and reverse the mental attitude that contributed to this situation. Help work towards an altruistic society where the working class is no longer the working poor. Bring it back to thinking about others, even if it’s just a little. Turn your vision outward, rather than inward. You remember right? Help make the role of the common man something aspirational in our society again. Work to change your own way of thinking and try to realize that personal financial wealth may be a valid and important thing, but it’s not the only thing.

3) Reverse the rhetoric and stop maligning the young folk for complaining about this economy. Accept responsibility for your generation’s role in this mess. These kids where not even born when the dot com bubble burst, and we should have all learned our lesson the first time.

4) Do a 180 and make it about social justice and change again. Consider the truth in the discrepancies of available opportunities for young people, women, and people of color. They still exist. Dust off your old LPs and listen to the lyrics again: Pete Seeger, Bob Dylan, Marvin Gaye, Phil Ochs, Joan Baez, Sam Cooke, among others.

5) Please- for your own sake, quit hoarding your time and treasure and invest in a future that you will have no personal stake in (because believe it or not, you will be dead). Set an example for a young person that acknowledges we are all connected. You are the sage ones now. It’s up to you to set the example of personal investment in understanding our connections to yesterday, today, and yes, tomorrow.

6) Turn tail and redefine your generations legacy. Actively take the role as self-sacrificing, servant leaders of our society. Show the newest generations how to give to get. Give of your time, experience and treasure. Do it by example. Do it now. Do it a lot.

It is true that this too shall pass. But what will be left when YOU are gone? What will you pass along to the young and unemployed? You benefited from the immeasurable sacrifices of the greatest generation. They covered your butts and helped you every step of the way. Now that they are fading away, what will you do to pay it forward? How will you step up and help these young people…other than to tell them it does no good to blame you for the problem that you created?