Russ: This is the BusinessMaker's Show heard on the radio and seen online at thebusinessmakers.com. This is Episode Number 335 of the show that champions entrepreneurship.

John: That's right, Russ. We're on the ball here every week talking about what we like to talk about best and that is the entrepreneur and the role they play in society and the economy --

Russ: You bet!

John: which is part of the society.

Russ: You bet!

John: Yes.

Russ: And they more positively affect our lives than any other sector that I know.

John: That's right.

Russ: All right.

John: And we know a lot of sectors.

Russ: You bet we do. It is a fact one of the key members of the entrepreneur sector is the E.O. Houston Group. That's the Entrepreneur Organization, a collection of make-it-happen people with experience under their belt. In fact you hafta have more than $1 million in revenue on an annual basis to be a member of that organization.

John: Wow, that is a very exclusive club because most people have a negative net worth out there and here's people that gotta $1 million of revenue comin' in every week --

Russ: There ya go.

John: every year, so that's good. That's a good thing.

Russ: You bet. All right and here's our lineup for the day. First up we're gonna be talkin' about major cyber security. I'm gonna sit down with Henry Goodrow of Microsoft. You know when you talk and think about cyber security, my goodness, what happened to those Iranians about - I think it's about six months or a year ago now when some professional hackers got into their system that was making their nuclear bombs and had 'em screwed up for a long time and they didn't even know it!

John: They didn't even know it, right, yeah.

Russ: Yeah cyber security. I'm not saying that Henry Goodrow did that.

John: No.

Russ: No, all right. All right and that's gonna be followed by a repeat guest on the show as I sit down with Dr. Cliff Kurtzman, the founder and CEO of MyCityRocks, a guy that went from being a rocket scientist to a social media scientist.

John: There ya go.

Russ: All right!

John: Yeah.

Russ: But first --

Russ: That's right. It's time for the Business Makers School of Business, not your business-as-usual school

John: No, no. It's much more important to society than the typical business school you're about because anybody can attend our school. There's no test to get in other than the fact that is if you can turn on your radio dial at this time, you're automatically admitted into the school

Russ: Absolutely. That's all it really takes. In fact I know for a fact real business school professors that use our curriculum in teaching their class.

John: I know and it's a real honor. I think we should get some money for that but --

Russ: I think we should, too!

John: Every time you bring it up with these people they're broke.

Russ: That's right, that's right.

John: Everybody's broke out there when ya ask 'em for money.

Russ: All right and we kick off the School for Business each week with the Quote of the Day.

John: The quote of the day.

Russ: And today's comes from the famous essayist Albert Hubbard who said --

John: Is that the Scientologist guy?

Russ: No.

John: No? This is the telescope guy.

Russ: Oh, no, it's not him, either. It's just another Hubbard.

John: A Hubbard? Okay all right.

Russ: And he said, "To avoid criticism do nothing, say nothing, be nothing."

John: Right.

Russ: It's pretty good advice, isn't it?

John: Well, unless you're married and you wife will get on your case, why don't ya get outta the house and make something of yourself?

Russ: Do something! Do something! So if you're single and like that, you're right, you could just become invisible.

John: But if you're married and like that you're gonna lead a pretty miserable existence every day, okay.

Russ: All right now that brings us to This Week in Business History. What happened during this November week in business history?

John: Well going back to 1633 - and again I'm constantly amazed at how old some of these inventions are that we take for granted every day - the inventor of the thermostat passed away in 1633.

Russ: 1633!

John: Yeah, right, Cornelius Jacobszoon Drebbel was born in 1572 in Holland and he studied glasswork and graving, got into some alchemy and some magical things but he studied dyes and glassware and all that and by then - and somehow he got this thermostat idea to regulate the temperature of an oven and it's still around.

Russ: It probably fell into that category of his interest in magic.

John: Yeah, well he tried to be a magician, you know? Pull rabbits out of his hats and stuff like that and he ended up inventing the thermostat.

Russ: All right, cool.

John: Another big invention. This came a lot later in life. This week in business history in 1895, Wilhelm Conrad Röntgen, a German scientist, he discovered X-rays and he discovered these accidentally where he was doing some testing on cathode rays passing through glass, et cetera, et cetera, and he discovered these X-rays that could - that were strong enough to go through skin but could not penetrate bone and heavy masses.

Russ: And how valuable that is!

John: I know because before then surgeons would hafta open up a bady to find out what was wrong with somebody.

Russ: Right

John: Say, "Gee, I gotta pain in my side," they'll say, "Okay, well lay down," you know? Boom they'd hafta open ya up to find it but now they've got MRI's and stuff like that.

Russ: Well, and would you talk about how valuable X-rays are. I remember in the '50s they were even valuable for shoe stores. You could go in a shoe store.

John: Oh, I remember that, yeah.

Russ: They'd have a little X-ray machine that you just stick your feet in there and you could see your bones.

John: That all stopped because there was a big case of foot cancer.

Russ: Yes, there was. Yes, there was.

John: You want some shoe salesman operating an X-ray machine?

Russ: Exactly what happened.

John: I mean some of these guys can't even, you know, tie their shoes ____.

Russ: Right, right.

John: Okay this week in business history, in 1904, Harvey Hubbell II - obviously the son of Harvey Hubble I but much more famous than Harvey Hubbell I - Harvey Hubbell II, in 1904 patented electric plug.

Russ: Wow!

John: It started when homes started to - were able to get wired for electricity, you know, it's only used for lighting but they had other appliances they wanted to use so they developed this electric plug thing.

Russ: Yeah, so I guess originally it was just a screw-in plug, like, for a light bulb and finally Harvey came along and said, "Well, wait a minute!" And, yeah.

John: There's other things you can use.

Russ: Yeah, right, cool.

John: So there ya go.

Russ: Yep.

John: All right, this week in business history, in 1918, World War I ends on the 11th hour of the 11th day of the 11th month of 1918.

Russ: Well, we thought that was big and gonna end all wars.

John: No, we were wrong.

Russ: Yes, we were!

John: Okay this week in business history, in 1927, the Holland Tunnel was officially opened, connecting New York City with Holland and France and Europe, the Holland Tunnel! I mean, my gosh! I mean, can you believe that?! I mean you can drive! A very little-known fact is that New Yorker wanna keep it a secret because - and the airline industries are payin' 'em off because if you knew you could go and drive over to New York and go under and end up in Holland then no one would take an airplane because you wouldn't hafta take your shoes off, you wouldn't hafta take your clothes off, you wouldn't hafta take your belt off, you know? So but we're breaking this for the first time.

Russ: That's right! Right here on the business Makers Show.

John: Holland Tunnel and the Business Makers Show. Forget about takin' an airplane, just drive your car to New York City and find the Holland Tunnel but, again, you're gonna be underground for quite some time. You hafta bring extra gas tanks, obviously.

Russ: And probably some kind of smog --

John: Because that's like 2,000-mile trip, you know?

Russ: Right, underground.

John: All right, so it's not as easy as it sounds, which is why nobody knows about it because nobody does it.

Russ: Right.

John: Of course we jest here at The Business Makers Show. We always and we should tell people we do make some of this stuff up. Instead of Holland it was actually went to New Jersey.

Russ: Yeah, right, okay.

John: This week in business history in 1940 one of the most infamous structural collapses occurs at the Tacoma Narrows Bridge, they called it the "Galloping Gertie" collapsed in a narrow section of Pungent Sound called the Tacoma Narrows. When they built the bridge it wasn't aerodynamically ready to handle the wind and all that and the concrete was - and you see pictures of it.

Russ: Yeah, they actually have a video of it.

John: A video, yeah, right, it - they had some problems with the architecture and the design --

Russ: Yeah, I would say so.

John: and all that so anyway, that's the way it goes.

Russ: All right.

John: This week in business history in 1941 Tom Fogerty of Creedence Clearwater Revival is born.

Russ: Wow, that means he's 70 years old!

John: I know. "Willie and the Poor Boys," and what was that, "Proud Mary?"

Russ: Yeah.

John: Yeah.

Russ: Lotsa hits!

John: Lotsa hits, okay. This week in business history, in 1961, Brian Epstein saw The Beatles for the first time and he was --

Russ: Forever enshrined in Rock 'N Roll History.

John: Yeah, I mean The Beatles, my God, yeah, so anyway.

Russ: Of course if he hadn't found 'em, I think they would've also been discovered by somebody else, dontcha think?

John: Yeah, talent will always find an audience, somehow, someway, so anyway, this week in business history, in 1975, the largest Great Lakes freighter, the S.S. Edmund Fitzgerald sank there in Lake Superior and, you know, there were 2 tragedies involved here, of course, the 29 or so members of the crew who died and the other tragedy was that miserable Gordon Lightfoot song that I'll listen to every now and then.

Russ: That he makes tons of money off of.

John: Well, good for him but it's just I hate the song. It's a terrible song.

Russ: Yeah, it is.

John: Yeah, I mean, it really is. You can't dance to it so let's don't play it, okay? No, let's do because if we hafta suffer through it, we hafta suffer through talking about this year after year.

Russ: All right.

John: Okay, this week in business history, in 2001, Apple resellers start selling the iPod.

Russ: Goodness gracious, so that was really preceded Apple Stores, you know, one, so --

John: Well, I don't think there were Apple Stores back then in those days, so.

Russ: Yeah, there weren't, so.

John: Everybody made a lotta money on it.

Russ: And iPods seemed to be the beginning of this incredible Steve Jobs digitization thing that he figured out.

John: Yeah and he - what Apple was able to do was take the technology and the Macintosh and the Apple world and convert it into consumer entertainment to divide and be --

Russ: Plus he - plus he -

John: That's where they made their money. Everybody else was still trying to get a better or lighter laptop or a desktop thing where - I mean they were concerned with miniaturization of the computer and perfecting the computer where apple took that technology that made a computer work and made it work for consumers and entertainment, you know?

Russ: Well, plus he completely re-engineered the selling of music and the way that that formula worked through iTunes, through the iPod.

John: Well actually Napster was the first one where they were downloading.

Russ: Well yeah but they were giving it away.

John: Yeah, I know.

Russ: And he was the first one to put money in it and now there are so many musicians that think that he didn't put enough money for them in it.

John: Yeah, right, that's why, like, The Beatles never really - Apple -

Russ: Right. it took a long time.

John: Took a long time.

Russ: Right. Does that wrap up the history lesson?

John: I think it does, yeah.

Russ: My God! World War I, iPod.

John: I think it does, yeah.

Russ: My God! World War I, iPod.

John: Driving from New York to Holland.

Russ: Yeah, lotsa stuff.

John: Lotta stuff there.

Russ: Good history lesson and that brings us to Navigating Business Jargon, also known as our Jargon Challenge Round.

John: Yes.

Russ: For those of you who are new to the show, we do this in a contest format. I get to go choose or make up a new jargon word --

John: Yeah, right.

Russ: and hide it from John all week long and then he has to guess it right here just using his cognitive skills.

John: yes, cognitive.

Russ: Are you ready?

John: Yes, my cognition is ready. Cars have an ignition; I've got a cognition so I got the keys in my brain there.

Russ: That's good, all right. There's no wagering.

John: Yeah.

Russ: Okay, today's word ineptocracy.

John: Ineptocracy, okay.

Russ: Ineptocracy.

John: oh yeah, okay. Kleptocracy is a form of government where the ruler steals.

Russ: Yeah, yes it is.

John: Like Moammar Gaddafi is a kleptocracy, you know?

Russ: Yeah, but this is ineptocracy.

John: Like Moammar Gaddafi is a kleptocracy, you know?

Russ: Yeah, but this is ineptocracy.

John: An ineptocracy is a form of government that is so - is totally incompetent and the rulers are totally inept and, as a result, the society is a huge failure economically, socially and morally.

Russ: I'm gonna give you a 75-percent correct answer and you'll probably understand why when I read you the official definition. It is a system of government where the least capable to lead are elected by the least capable of producing and where the members of society least likely to sustain themselves or succeed, like maybe Occupy Wall Street ,are rewarded with goods and services paid for the by confiscated wealth of a diminishing number of producers. It's when the producers - living that.

John: Not having heard the word before I think I should get the whole thing because what I do is I summarize the component parts that you're talking about because sometimes an ineptocracy the rulers are not voted on. They inherit the throne. Just think if the House of Windsor were actually running Great Britain right now instead of being figureheads.

Russ: That's true, yes.

John: Just think how inept that family is.

Russ: That's true. The whole key though is for some reason it's kind of like an anti-producers' form of government, which is exactly what we're lookin' at, you know? We're for the producers. We're for the entrepreneurs and innovators and they're the ones that are being demonized often these days.

John: You know I was gonna use this for the Dumb Moment but I decided not to but there's 10 percent, which is - they've surveyed, like, 1,000 Occupy Wall Streeters and they found out, like, about 10 percent of 'em live in homes that are valued at $500,000.00 so there's huge misunderstanding about these people and these people, in fact, have a total misunderstanding about how the world works.

Russ: Well, since you're not gonna use that as your Dumb Moment what are you gonna use because it's time for Dumb Moments?

John: Well, it looks like according to The Hill, this is a publication that's distributed mainly around The Capitol and they call it The Hill and it just goes to people who are generally interested in government in how it works and how it doesn't work and, in this case, this is how it doesn't work because they've discovered another Energy Department-backed company that has gone bankrupt.

Russ: Another one, huh?

John: This is a Massachusetts company, received $43 million in energy Department loan guarantee.

Russ: That means our money.

John: Our money, right. Filed for bankruptcy and it's another Green Energy Financing debacle in the wake of solar company Solyndra's collapse.

Russ: Yeah, Solyndra, yeah.

John: Now the name of the company is Beacon Power Corporation, which develops energy storage systems. Now the Dumb Moment here is not that the company went bankrupt and who knows why it went bankrupt? It might be a dumb thing that made it go bankrupt or not but the fact is the dumb part of this whole thing is the fact that the government is actually deciding on what horse to back.

Russ: They're not good at picking winners.

John: No, no, they're not and even if they do pick a winner it's only because the company wins because they're getting money that the ordinarily couldn't get in the free market.

Russ: Right, I agree.

John: And they get propped up and I mean look at Chrysler Corporation. That's the perfect example. The bond-holders got shafted big-time. They should've gotten paid back first but they didn't and that's another story but just another, you know? Nobody asked you and me whether we wanted to sink our tax dollars into this company. They didn't even vote on it. There wasn't even a vote. It was a fiat. It was a dictate from the Energy Department to give this money away and it's ridiculous.

Russ: I agree. Totally agree. All right before we wrap up today's School of Business, let's welcome Mr. Greg Price.

John: Mr. Price always on time, always lookin' pretty sharp.

Russ: Well, look at this. He actually has a guest with him today. This is gonna be interesting. It's time for the PKF Texas Entrepreneurs Playbook. All right and that wraps up today's School of Business. Stay tuned in for our interview with Henry Goodrow of Microsoft talking about cyber security followed by an interview with a former guest, Dr. Cliff Kurtzman, Founder and CEO of MyCityRocks. This is the BusinessMakers Show, heard on the radio and seen online at thebusinessmakers.com.