Moments of Clarity

Giving Away the Collective Iowa "Farm" for the Google Server Farm

There's a googolplex of reasons why the state of Iowa is gushing over a new Googleplex being built within its borders. There are about 100 articles/posts hitting the wires every hour about it.  Here's a post at InfoWorld on it.

But has anyone done the math on this project with the tax credits, sales tax exemptions, and alleged jobs this facility will produce?  Does Google (NASDAQ:GOOG) have so much "star power" that legislators are willing to sell their souls to the "do no evil" Googolopoly?  I wonder if some GAAP accounting applied properly would yield that the cost to operate and build this facility is net zero for the next 20 years...just in time for an exit? 

I'm going to head out to Council Bluffs and do some investigative reporting a la Stone Phillips to get real resident reactions, etc. 

Are you nervous about Google and their continuing global domination...or are you concerned with them terraforming (or Googleforming) another colony here in the heartland?  Or are you just happy to have your city in the paper in a positive way?  More reports from the field to come.

People Drought

Today, the Des Moines Register posted an editorial piece entitled:  The Issue:  The People Drought.  The piece highlights the major challenge that Iowa (like most of the non-coastal cities) will face in the coming decades.  According to demographers and other experts, we'll face a massive shortfall of workers here.  It's estimated that by 2012 (only 6 years from now mind you) that we'll have 150k more jobs than workers to fill them. 

It’s estimated that Iowa will have 150,000 more jobs than workers by 2012, and it could get much worse thereafter. Rather than new businesses coming to Iowa, the specter is of businesses leaving Iowa because they won’t be able to hire enough workers.

Living in California all of my life until 2005...I never had to face an issue like this...nor do I think we'll have to face it here.

Here's why.  These dire predictions of worker shortage seem to rarely if ever come true.   The statistics assume that at "retirement age", baby boomers will perform a mass exodus from the work force.  Wrong.  Using the same statistics, I'm sure we'd find that a majority of those boomers have under capitalized their retirements..and thus will be changing careers, filling in at mall jobs part time, and the uber professionals will be called in to perform their acts of gray haired wisdom at companies around the state. 

No one here is throwing illegal immigration into the mix either.  You can continue to put off the inevitable by allowing unfettered immigration to "fill the jobs"...but what job deficits are we really talking about here?  Are we facing a lack of 150k skilled workers, burger flippers, or doctors?  No one ever really makes that clear when they speak expertly.

The core of this insane political football remains:

1. If education was the priority of this state above all else...we'd have the best starting point of ANY state from which to build our foundation.  End of discussion.
2. If Iowa and the Midwest puts its full force behind becoming the scientific and ag/biofuel technology leader...we'd have no trouble attracting smart people and entrepreneurs and venture capital after the initial ethanol hangover wears off.
3. Stopping illegal immigration will force the economy to realign itself with the proper market forces at play...this will throw all formulae off by an order of magnitude.

I'm an even bigger Khosla fan

The good folks at the Domestic Fuel blog posted a great piece highlighting speeches given by the American Petroleum Institute CEO Red Cavaney and green energy superman VC Vinod Kohsla.  Cindy links to audio clips too.

The bottom line here is that Kohsla is pitching the "real deal" transformation that I believe America is ready for...and willing to pay for.

Following is quoted:

Khosla outlined a three mandates to make that “e85 future happen.”
1. Mandate that 70 percent of all new cars made in America be flex-fuel cars to “ensure that the consumer can pick the cheapest fuel that is available.”
2. Mandate that at least ten percent of all U.S. gas stations, either “owned or branded by any of the major suppliers” offer e85.
3. Make the current 51 cent blender’s credit a variable credit to insure against drastic ups or downs in oil prices. “I’m recommending a 25 cent credit at $75 oil and a 75 cent credit for $25 oil.”

I'm ready to rock and when my lease is up (or when Honda jumps on board and makes a retro-fit E85 kit)