The Progressive Ensign

insights and analytics to build an economy that works for all

Category: Solution (Page 1 of 2)

California Urges World Leaders to Move Fast On Climate Solutions

(Editor Note: Insight Bytes focus on key economic issues and solutions for all of us, on Thursdays we spotlight in more depth Solutions to issues we have identified. Fridays we focus on how to build the Common Good. Please right click on images to see them larger in a separate tab. Click on the Index Topic Name at the beginning of each post to see more posts on that topic on PC or Laptop.)

Image: globalclimateactionsummit.org

Yesterday, California Gov. Jerry Brown, convened the  Global Climate Action Summit in San Francisco.  The Summit brought together climate change leaders from around the world in private, government and non – government sectors to focus on action-oriented programs to mitigate the effects of global warming. Just before the meeting started Governor Brown signed into law a goal for the state to be using 100 % electric and renewable energy by 2045.

The conference sponsors focused on urgency in their introduction to the conference:

The Global Climate Action Summit, happening midway between Paris 2015 and 2020, is timed to provide the confidence to governments to ‘step up’ and trigger this next level of ambition sooner rather than later. 

The momentum we generate this year must lead to bending the curve of emissions down by 2020—science advises us that this gives the world the best opportunity to prevent the worst effects of climate change. 2018 therefore must be the beginning of a new phase of action and ambition on climate change.

The Summit will underscore the urgency of the threat of climate change by mobilizing the voices and experience of real people, in real communities already facing real and stark threats. It will challenge and channel the energy and idealism of people everywhere to step up and overcome it.”

The carbonization of our planet is the preeminent challenge of our times, possibly threatening our very existence long term.  World-wide temperature records are being set from Tokyo to Washington as the following heat map for 2018 indicates:

Source: The Washington Post – 7/5/18

About 25 % of the heat is being soaked up by the ocean causing algae blooms which can contaminate water and cause wildlife to die. Scientists in the Pacific Northwest have discovered how certain ocean plants can dilute and mitigate water acidity. There are a variety of solutions being developed by governments and private businesses, yet what we need is a coordinated effort focused on those solutions that are most effective, affordable and can be quickly implemented.

We applaud California leaders for taking the initiative on this critical issue of our times to urge world governments to implement solutions to climate change before the problem goes beyond our ability to cope with the effects.

Apprenticeship Program A Good Step Forward

 

Photo: siemens.com

The Administration has announced a new job training and apprenticeship program focused on many hard to fill positions in manufacturing. The President signed an order to create a Council for the American Worker instructing the secretaries of commerce and labor to coordinate existing federal programs and focus on new apprenticeship programs for job seekers without college degrees and older workers.  Labor Secretary, R. Alexander Acosta noted prior to the announcement that in June 2017 the administration had allocated $150 million in funding to strengthen apprenticeship programs.

Officials from various job development interested groups including unions, corporations,  and trade association officials signed a ‘Pledge to America’s Workers’ committing to the creation of more career opportunities.  Many of the leaders had made previous commitments, though Fed Express announced a new pledge of 512,000 workforce development slots with tuition assistance provided.

While, ‘dual careers’ have been a staple part of German and European education programs in the U.S. the ‘college for all’ mantra has taken its effect discouraging apprentice program candidates. However, many European firms like Zurich Insurance have applied their experience with apprenticeship programs to their U.S. subsidiaries to fill positions and have shared their experience with U.S. based firms like Accenture and Walgreens. Apprenticeships are 4.0% of the workforce in Germany while in the U.S. the total is about 500,000 in skilled trades like plumbing, electrical or metal work, just a small fraction of the U.S. workforce.

Source: The Labor Department, The Wall Street Journal – 2016

American employers are struggling with filling many positions in manufacturing that require special skills but not at the level of a college degree. We expect that as more co-automation jobs are created apprenticeship programs will become the norm to accelerate the number of qualified workers and retrain those workers who lost jobs from automation.

We are pleased to see the GOP Administration move ahead with executing on its pledge to increase the number of apprenticeship training programs and enlist all interested stakeholders in the process. However, this Administration has also announced budget cuts of 40 % to a Department of Labor Workforce Innovation and Opportunity Act, so making the program work and develop momentum seems challenging given the mixed signals.  We see apprenticeship programs as crucial to expending jobs opportunities for the working class when they are combined with good salaries, benefits and continued training. Education is a bedrock institution to build a thriving society  for all not just the wealthy.

Scientists Discover Plants Can Reduce Ocean Acidity

Image: see.systemsbiology.net

Global ocean acidity has increased by 30 % over the past 200 years and is expected to increase by 150 % by 2099 to the highest level in over 20 million years.  About 25 % of the carbon dioxide in the air is absorbed into the ocean.  For carbon organisms like algae they will grow increasingly prevalent yet for calcifying organisms like oysters, lobsters, clams, sea urchins, corals and others they will lose the ability to grow and reproduce.

Source: WXshift

Three and one half billion people rely on the ocean for food. It is of huge consequence to have the oceans of the world become so acidic that the sea cannot sustain ocean life nourishing billions of people.

So, what is being done to reduce ocean acidification?  Certainly, efforts at reducing global warming are having an impact in the ocean specifically. There are some intelligent solutions being developed that would immediately improve shell organism survival.  The Pacific Northwest has a $200 million shellfish industry for export and shipping to West Coast cities.  Baywater Shellfish, west of Seattle, is having trouble growing geoducks, oysters and clams for market due to increased acidification of the water causing the shellfish to lose nutrients they need to grow and survive.  However, Oregon State University researchers working on an solution have discovered that eelgrass growing near the shell fish farms can lower the acidity in the water through photosynthesis absorbing the carbon, and pulling it from the water. This process allows vital nutrients to become available to the shellfish.  Eelgrasses can be planted in oyster farms or near shellfish hatcheries to provide the necessary lower acidity levels to nourish the shellfish.

The ocean covers 70% of our planet and provides food for 3.5 billion people making it crucial to human existence.  We have a stewardship responsibility to reverse the damage we are causing by human activity to preserve the oceans for future generations.  Cleanup of the ocean is a top priority for all of us and businesses too, as business success in the future assumes access to safe, clean, reliable water supplies and ocean environment.

States Move Ahead of Fed To Reduce New Drug Prices

(Editor Note: Insight Bytes focus on key economic issues and solutions for all of us, on Thursdays we spotlight in more depth Solutions to issues we have identified. Fridays we focus on how to build the Common Good. Please right click on images to see them larger in a separate tab.)

Photo: healtheconomics.com

Several states including New York, Vermont, Massachusetts and California have begun initiatives to take on drug companies for the their exorbitant prices of new drugs.  New York is taking a price versus effectiveness approach with a new drug called Orkambi for cystic fibrosis.  The New York state Medicaid department is demanding a lower price as it is not clear the drug helps patients with the disease better than existing treatments. Vertex,  the manufacturer of Orkambi made $1.3 billion in sales from the drug which is a high sales level for a drug that is marketed to only 26,000 eligible patients.  Vertex prices Orkambi at $272,000 for one year of doses. The drug costs so much that some insurers pass on the high costs to patients in some cases $3000 per month.

Dr. Steven D. Pearson, President of the Institute for Clinical and Economic Review is working with New York officials on a state board case against Vertex to bring the price down.  The state board found that Orkambi did not meet the effectiveness claims by the manufacturer so New York should receive a 77 % discount.  Dr. Pearson said his evaluation of the costs indicated that the drug could be discounted by 77 %.

Major states like New York and California are taking on the drug companies with renewed interest as their Medicaid costs soar in part from new drugs where companies like Vertex price the medication at extreme multiples of a fair cost. While the GOP Administration has promoted some ideas to bring the cost of new drugs down, nothing to date has been done.

The U.S. is alone of all major developed countries in not directly regulating drug prices.  In Europe health services officials do not accept high prices for drug with marginal value and negotiate using their purchasing power to bring the price down.  Congress has consistently bowed to the drug lobby by not speeding generic drugs to the market and not including in any drug bill the power for Health and Human Services to directly negotiate the price of all the medications it covers for U.S. patients.

Source: Bloomberg – 5/11/18

In 2014, U.S. patients paid the most of ten developed countries at $1,100 per year out of pocket and for many patients with difficult treatment diseases the costs per year are significantly more.

Next Steps:

Time is up for the drug companies and insurers gouging patients with soaring prices while they make hefty profits and executives pocket huge compensation packages.  Drug companies need to stop buying back their stock, wasting the money that could be used to bring the price of their drugs by billions of dollars.  Congress needs to give HHS the power to negotiate prices and effectiveness limits on drugs of dubious value the way most developed countries in the world do today.  Over the past decade pharmaceutical companies have found that their exorbitant prices have not stuck in Europe or other developed country market, so they jack up the price of the medication in the U.S. where there is little regulatory constraint.

Startup Creates Executive Tracks For Women With Innovative Job Definitions

 

Image: vnnc.org

Women often face job flexibility issues in managing their job.  Time to be a caregiver, take care of children, or just needing to take care of kids when they get sick and can’t be in daycare. Werk co-founder, Anna Auerbach found in the workplace there was just not enough jobs that offered flexible hours, location or time agility to put women on an executive track.  Werk offers products to help companies change their thinking about full time W-2 jobs but with some unique flexible characteristics.

Source: Werk.com

The Werk team has identified 6 different types of flexible work through their research that companies need to be more inclusive, hire more women and accommodate men with flex time needs. The options range from Desk Plus – with different company locations for an employee’s desk, to MicroAgility where the worker can step out of the office for 1 – 3 hours to take care of an emergency. The firm trains their client company executives on how to re frame their jobs and how to recruit for more women and men who need flexible schedules.

We have seen the need for more women executives starting new businesses, in venture capital, angel funding and mature companies.  It has been difficult to bring more women into the job market due to the fact their needs for jobs with greater flexibility have not been met by standard HR job definition practices.  It is time these practices change to hire more women into management roles and assist men that may have caregiver or family needs.

Wood Project Gives Ex-Offenders New Lives

(Editor Note: Insight Bytes focus on key economic issues and solutions for all of us, on Thursdays we spotlight in more depth Solutions to issues we have identified. Fridays we focus on how to build the Common Good. Please right click on images to see them larger in a separate tab.)

Photo: USA Today

The US Forest Services has kicked off a new program to reclaim urban lumber from abandoned homes by using workers from non-profits who had criminal records.  The innovative program attacks two major problems in urban centers like Baltimore, where 70 % of criminal offenders are returned to prison within 3 years, and there are over 16,000 abandoned structures in the city.  Quite often the abandoned structures are hives of prostitution, drugs and criminal activity.

Morgan Grove, Urban Wood Project leader, says “It’s about air quality and water quality.  It’s also about reducing crime and helping people move forward”.  She continued by declaring, “At its core, it’s really still maintaining the mission of revitalizing that the Forest Service has had since the agency was started in the early 1900s.”

The following table outlines the linked issues of high crime, abandoned buildings, high prison rates and the health of communities:

Sources: Justice Policy Institute, Prison Policy Initiative – Maryland, USA Today – 6/11/18

It is interesting to note the issues Baltimore city officials face in reclaiming their communities to return them to being healthy places to live, environmentally, and to redeem the people in the community to a productive life. We see many of these same issues in the rural regions of our country, that have been left behind by losing jobs to other offshore sites, reduced education opportunities, poor health, drugs and slow Internet infrastructure.

As a country we are missing the opportunity to rebuild lives, the environment and the economy unless we support innovative programs like the Urban Wood Project.

Ocean Cleanup Takes on the Plastic Environmental Challenge

(Editor Note: Insight Bytes focus on key economic issues and solutions for all of us, on Thursdays we spotlight in more depth Solutions to issues we have identified. Fridays we focus on how to build the Common Good. Please right click on images to see them larger in a separate tab.)

Photo: The Ocean Cleanup

We have noted in recent discussions the environmental disaster lurking in our oceans from tons of plastic.  Now there is a company that is doing something about this problem with unique technology to pull the plastic out of the ocean.  The non-profit, The Ocean Cleanup Foundation headquartered in the Netherlands with its first operations center in Alameda, California in the San Francisco Bay has developed an innovative passive system with a floater, a solid screen floor and sea ancho causing the system to move slower than the plastic and guide the debris into a collection system.

The Ocean Cleanup prototype has been tested over the past several months in the ocean outside the Golden Gate. The environmental group plan on launching the first operational system in June to begin removal of plastic in the Great Pacific Garbage Patch in the Northern Pacific. Founder, Slat Boyton, estimates their system will collect up to 50 % of the garbage or 40,000 metric tons can be collected in 5 years.

Sources: NOAA, Woods Hole Grant, BBC – 2014

It is critical to clean up the existing plastic as it takes 450 years to degrade completely and prior degrading can sometimes be in micro plastic pieces easily stuck in the digestive systems of ocean wildlife.

Ocean Cleanup plans on bringing the plastic back for recycling and sale to plastic reuse companies. While recycling economics may not allow for a break even business, the UN estimates the value in damage to the marine ecosystem at $13 billion.  Regardless of the cost, plastic pollution at the magnitude it is now destroying wildlife, will eventually cut a key link in the life food chain and hurt us all.

We are pleased to see Boyton and his team take on this huge environmental threat to our oceans, the wildlife that lives there and our own existence in the end.

Activists Push Environmental Corporate Reform at McDonalds

 

Image: thepeoplesconvention.org

We believe corporate behavior will most likely only change when shareholders demand change through corporate reform.  While some farsighted companies are moving to all sustainable materials for their packaged goods McDonalds has been slow to make it happen.

McDonalds says it is willing to move to eliminate plastic straws by 2025 – seven years from now.  That timeframe is just too late.  There are plastic straw substitutes like biodegradables are available now made from starch, corn or bamboo. The giant restaurateur has been dragging on making shift.  Plastic in our oceans is a huge problem, destroying habitat for ocean creatures and fouling their food sources multiplying each year by 8 million metric tons.

Source: The Ocean Conservancy – 5/24/18

We applaud the plastic straw proposal by SumOfUs, corporate reform activists, obtaining 450,000 signatures to qualify for a shareholder vote.

Corporate decision making must continue to be monitored, and when a decision is making our planet more uninhabitable it must be changed to make our life here sustainable.  The reality is that those profits are not going to matter in a planet where our environment is destroying the world we live in placing people world-wide in jeopardy of shortened life spans.

Unfortunately, today the plastic straw proposal only received 8 % of shareholder votes.  The vote of major shareholders and institutions against the proposal shows there is still work to be done to in corporate reform.   We are pleased to see major institutions, like Blackrock, where CEO Larry Fink has demanded that companies they invest in get more engaged in environmental issues and ‘how’ they make money not just make money. When CEOs at major companies see that it is in their interest to move the paradigm of environmental protection ahead then we will know that they are listening to us, the people, rather than Wall Street. Corporations and the wealthy control Congress so we need to go directly to Corporate Nation States to bring about real change.

Bi-Partisan Support to Cut Drug Costs – Stalled by Brand Drug Companies

Image: freopp.org

In an unusual development in the Senate, senators from the Republican side like Sen. Ted Cruz – (R- TX) to Democrat Sen. Diane Feinstein (D – CA) agree that the process of converting brand name drugs to generics needs to be sped up and reduce drug costs.  With 23 co- sponsors the CREATES Act would require brand name drug companies to provide large enough quantities of samples of their drugs to generic manufacturers in a timely manner and that are safe.  At the present time brand name drug manufacturers often do not supply the quantities necessary or block access due to safety concerns – unnecessarily delaying the conversion of a brand name drug to a generic.  The bill provides a remedy for generic manufacturers by allowing them to sue the brand name manufacturers for not providing the necessary samples.

Sen. Patrick Leahy (D-VT) a bill sponsor, says the Congressional Budget Office estimates the bill would save the federal government about $3.8 billion over a decade in drug costs.  The Congressional Budget Office and the Generic Pharmaceutical Association estimate a total savings of $250 billion in 2013 by using generic drugs versus brand name drugs.

Source: CBO, GPha – 2014

As we have noted before drug companies are running their companies focused on making unreasonable levels of profit through $50 billion stock buy backs to increase executive and shareholder compensation and paying $1 billion a year in direct advertising to consumers for prescription medications. If the drug companies allocated these wasted funds toward price reduction we would see a dramatic reduction in drug prices.  The CREATES Act is a good bi-partisan way to at least begin to tack down agreement on drug price reductions in a fair way.

California Leads with Solar New Home Requirement

Photo: npr.org

The State of California is the first state in the country to require all new homes being built beginning in 2020 have solar panels.  The requirement applies to all single family and condo units up to three stories high.  The additional cost is estimated to be about $9, 500 added onto one of the highest median prices in the country at $565,000.

Some observers would have preferred that the State focus on building large solar farms rather than residences since the residence approach means that utilities have to deal with power coming up line that may be difficult for them to handle.  Yet, residence based solar panel electricity provides for a more distributed system, rather than a centralized one offering more redundancy, options for homeowners and great self-reliance.

The residence based electricity option basically poses an alternative to central line based power utilities.  Essentially with competition from residences it will spur utilities to cut costs and see how to move into renewable energy quicker to take advantage of lower costs for solar power.

Sources: California Energy Commission, The Wall Street Journal – 5/9/18

The shift to renewable energy sources is crucial to meet objects for climate change as endorsed by 175 countries in the Paris Climate Accord. When we think about the consequences of not meeting the challenge of climate change it is unthinkable how hostile our planet will be to live on – eventually making it uninhabitable.

We call for a national initiative to make renewables the standard for all new homes. As we have noted almost 60 % of the people want to set the environment as a priority even if there is an economic cost.  if the federal government won’t do it then the top 20  new housing states should implement the plan and make renewables as the de facto approach toward home building.

To assist first time buyers, we recommend the State of California offer for homes under $400k an energy credit to be used as a credit on families’ state taxes to help out with the added solar expense added onto the price of a new home.

Let’s get the country moving toward renewable energy as our standard way of building communities and enjoy a climate that we all can live in.

Page 1 of 2

Powered by WordPress & Theme by Anders Norén