Category Archives: Business and economics

Not for Trump, but here’s where he’s right

By Steve Brawner, © 2019 by Steve Brawner Communications, Inc.

Let’s start with some transparency: In 2016, I voted enthusiastically for Ohio Gov. John Kasich in the Republican presidential primary and then voted for Evan McMullin in the general election because he was the best alternative to Donald Trump and Hillary Clinton. I don’t want President Trump to be re-elected (but also don’t support impeachment) and am hoping a credible third party candidate emerges before next November.

I said “hoping,” not “holding my breath.”

But not being a Trump supporter shouldn’t blind anyone to ways his presidency has benefitted America, particularly this: He has challenged some assumptions about trade that needed to be challenged.

For decades, the consensus among political elites has been that trade is a good thing, and it has been. It has lifted millions worldwide from poverty, reduced the chance for conflict with rivals, and introduced free markets and the concept of freedom to autocratic countries such as China. As bad as China is, it was far worse decades ago, and in the Korean War Americans and Chinese were killing each other. Meanwhile, free trade has lowered prices for American consumers. The shirt I might buy today costs about what one did when I graduated high school in 1987. Continue reading Not for Trump, but here’s where he’s right

Pastor: Churches must make green to avoid red ink

Mark DeYmaz is the pastor of Little Rock’s Mosaic Church.

By Steve Brawner, © 2019 by Steve Brawner Communications, Inc.

The pastor who started a church for white, black and brown people to worship together says churches must get serious about another color – green.

Mark DeYmaz started Mosaic Church in Little Rock in 2001 after deciding God was calling him to start a multiethnic congregation in a city with a segregationist history.

Now it’s a thriving inner city church. Its ministry arm, Vine and Village, monthly provides three or four days’ worth of groceries to residents of one of the city’s neediest areas. Operating partly through grants and partnerships, last year it fed 20,000 unique individuals in a zip code with 32,000 people.

Along the way, DeYmaz realized the typical church’s financial approach – more members equals more money for operations and ministries – wouldn’t work at Mosaic. Too many of his people are too poor. Continue reading Pastor: Churches must make green to avoid red ink

If China will silence a tweet …

By Steve Brawner, © 2019 by Steve Brawner Communications, Inc.

I generally believe free trade can point an authoritarian country like China in the direction of freedom and free markets. One downside, however, is that both sides can be influenced.

On Oct. 4, Daryl Morey, the general manager of the NBA’s Houston Rockets, tweeted seven words: “Fight for Freedom. Stand with Hong Kong.”

China was offended, and the backlash was immediate. The Chinese Basketball Association ended its relationship with the Rockets, which had been the most popular NBA team in China because star Yao Ming played there. Already scheduled preseason games in China between the Los Angeles Lakers and New Jersey Nets were taken off Chinese television. Corporate sponsors withdrew, and their names were scrubbed from the floor.

The response by many in the NBA was … less than courageous. Rockets owner Tilman Fertitta said Morey does not speak for the team, and Morey deleted the tweet and apologized. The NBA initially called Morey’s tweet “regrettable” and declared its “great respect for the history and culture of China.”

Then NBA Commissioner Adam Silver backtracked with a second statement that affirmed Morey’s right to express himself. China’s state TV response was this: “We’re strongly dissatisfied and oppose Adam Silver’s claim to support Morey’s right to freedom of expression. We believe that any remarks that challenge national sovereignty and social stability are not within the scope of freedom of speech.”

Let that sink in. Continue reading If China will silence a tweet …

What will NCAA choose to do now

By Steve Brawner, © 2019 by Steve Brawner Communications, Inc.

At the Little Rock Touchdown Club Sept. 23, University of Arkansas Athletic Director Hunter Yurachek was asked about a California bill allowing college athletes to profit from endorsements.

He said he’d been told by NCAA attorneys not to comment but said the university invests its revenues in the athletes and that the student-athlete experience is the best it’s ever been. He also said this.

“Being a student-athlete is a voluntary activity. It’s a heck of a commitment, but no one is making you be a student-athlete. No one’s making you put your name on that line and sign that scholarship. That’s something that you do, and you understand when you sign your name … what comes with that and what doesn’t come with that. And so if there’s an opportunity for you to make some money … as a person off your name, image and likeness, right now that’s not as a student-athlete, and so you ought to take that opportunity and go somewhere else with that.”

In other words, the athletes knew the rules and still agreed to play.

But those rules will change, sooner or later. Thanks to California’s law, it’s probably sooner.

On Monday, Gov. Gavin Newsom signed into law the Fair Pay to Play Act, which bars the NCAA from banning participation by California schools whose athletes are compensated for using their name, image or likeness. It takes effect Jan. 1, 2023.

It applies only to California, but the NCAA and other college athletic departments will have no choice but to respond – by suing, of course, and by threatening California with expulsion.

It won’t work, at least not for long. Eventually the NCAA must find a way to share more of its billions with the athletes if it wants to continue existing. After all, if the best college athletes can make money only in California, that’s where they will play.

The NCAA and the college athletic departments want to keep the status quo because they benefit from the rules they wrote. Those rules haven’t changed much even as college sports evolved from an extracurricular activity into a multi-billion-dollar business. Generations of college athletes from poor and minority backgrounds have struggled to make ends meet while the rich old rule-makers made plenty. At one point, the NCAA even made money from video games featuring players’ names and likenesses – again, without compensating the players – until a lawsuit finally ended that. In 2015, the NCAA finally began allowing players to collect small stipends in addition to their scholarships to help pay for incidental expenses. But those are pennies compared to what the rule-makers are paid.

At the highest levels, college athletics is really becoming a farce. Big-time programs exist alongside rather than as a part of their universities. Coaches’ salaries dwarf the universities’ presidents’. It’s “amateur athletics,” but only the athletes aren’t being compensated – legally, anyway, because the system encourages under-the-table payments.

The status quo is most unfair to football players. The best 18-year-old basketball players can play in the NBA or overseas. The best 18-year-old baseball players can go straight to the minor leagues. But the best 18-year-old football players must go to college if they want to keep playing.

In signing the bill into law, Newsom said he knows it will have consequences, and the state wants to “engage” the NCAA. In other words, the NCAA had better make a counteroffer before Jan. 1, 2023. He pointed out that only athletic governing bodies can keep students from making money off their name and likeness. If you’re a student with another skill, the free market still applies.

Yes, college sports is a voluntary activity, but so is almost any adult endeavor. No one “makes” you work for a factory or a newspaper. That doesn’t give a powerful entity the right to act like the standards that apply to the rest of society don’t apply to it.

Perhaps this could have been avoided had the NCAA voluntarily shared revenues with athletes more equitably.

Or maybe this was inevitable. This America. If you own anything, it’s your name and likeness.

Regardless, the rules are changing. Soon it will be the NCAA that must adapt if it wants to keep playing.