Russ: This is the Businessmakers Show heard on the radio and seen online at thebusinessmakers.com. This is that show that feels real positive about free enterprise, about capitalism, about John Galt.
John: John Galt, yeah. The premier of the movie --
Russ: Dagny Taggart.
John: Yeah, they had - the Shrug Part two is -
Russ: Part two, yeah.
John: It started, I think, this Friday, this past Friday.
Russ: Now, do you - for those of you who don't know what we're talking about, we're talking about Atlas Shrug.
John: Right. Yeah, right.
Russ: You saw part one. I didn't. I've read the book twice.
John: See, they had to rush it into production or the guy would have lost the rights to the movie so that's why it took him so long. That's why it wasn't that great. Second one though, looks pretty good.
Russ: Well, I heard some people think it was not - didn't get that good of reviews which was just the whole political -
John: Well, that too.
Russ: ...debate going on. You know, nobody wanted to acknowledge that was an interesting story, although it was.
John: Yeah. It is an interesting story and we're living it right now.
Russ: Yeah. And you might share with the audience what I got you for your birthday.
John: That's right. The John Galt tee shirt and they're reared in steel.
Russ: Yeah, a reared in steel.
John: Reared in steel tee shirt yeah.
Russ: That's pretty cool.
John: That's very cool.
Russ: What I didn't tell you is that when I got that, I also got me a bumper sticker that's a Galt -
John: For president?
Russ: Galt/Taggart, 2012.
John: There you go.
Russ: Dagny's gonna be the vice president.
John: For all you folks out there, I mean, it's - one of the great things about the book is the main character. I'd say there's like, probably three or four real main characters but one of the drivers of the book is a female business executive.
Russ: Yeah. Just a champion. A major leader. A successful -
John: That's right. Her brother's running -
Russ: A wimp and -
John: Is a wimp running the railroad and she's the one actually running it.
John: So it's a - all those women in business people out there, you ought to read it just for that.
Russ: Yeah. Now, I will tell you it's kind of a long book in there.
John: Well, it's 1,000 pages, but I tell you - once you get into it, it's hard to put down.
Russ: Yeah. To a degree. There's some long descriptions where she gets a little carried away.
John: Yeah, and then there's a couple of speeches that are, yeah, but, uh...
Russ: But the premise is what's important, again.
John: And we're living through the result of that premise right now.
Russ: Yeah. And the premise - for those of you who don't know, I mean, it's like, government is essentially just taking over and when somebody comes along with a better product, the government always sees the side of those that get left behind because innovation has taken off, you know. The government starts deciding, "Do we want Solendra or do we want, you know, to help these small..."
John: We're picking winners and losers right now, though the government's just picking losers.
Russ: Yeah. And despite that, what is so incredible - here's an important lesson that we'd like to share - there should be a United States celebration going on right now for what the innovators have done in the oil and gas exploration and development.
John: This is an economic miracle for what it is.
Russ: It's a - three years ago we were boo-hooing that we were totally -
John: Couldn't go out in the Gulf.
Russ: No. And we were - and we were also at the mercy of a bunch of unstable governments that didn't like us and were sending billions of dollars to 'em to keep the lights on.
John: Right. And then they were taking part of that money and giving it to the Taliban or the Muslim Brotherhood or the, you know, whatever.
Russ: And for those of you who said, "Well, that's why we need to solar and wind to keep the lights on and keep the car" - there's not enough solar power and wind power to come close to fulfilling our energy needs. Not even close.
John: Well, here's one of the ironic things about the wind energy, okay? If you and I go out hunting and we shoot a bald eagle and kill it, that's like a $5,000.00 fine and federal imprisonment because they're a protected species and should be. It's the national bird, okay? Now but, however, if you operate a windmill farm and you kill one of those birds, that's okay.
Russ: Yeah. That's interesting.
John: Collateral damage, you know? Things must be sacrificed for the greater good.
Russ: So are you saying that bird hunters are starting to convert to turbines and...? [Laughter]
John: No, it just shows you how mixed the whole environmental movement is.
Russ: And for those of you who are out there hanging on the edge of your seat waiting for us to start school business, don't worry. We're gonna start.
John: Right. We are.
Russ: But there's another thing I want to talk about.
John: Go ahead.
Russ: These surveys. I don't -
John: Oh, the polling, the polling. Yeah. Right.
Russ: I mean, there must be some voodoo math going on. I mean, I understand when they all shifted after the debate because it was so obvious.
John: Yeah, it was obvious, yeah
Russ: But to shift that - why didn't people know it was obvious before the debate, you know?
John: Well, 'cause you know, most people get their information through television.
Russ: Yeah. And they'll whine and say some -
John: And most of the TV net - most of the TV news is very pro -
Russ: From television and some of the candidates -
John: Very pro-Obama.
Russ: Some of their candidates get their information from Teleprompters.
John: Right, yeah.
Russ: Which brings on another important question.
John: I know.
Russ: Should - well, you ask it.
John: I don't think Bobamba - President Obama is gonna want to keep operating at such a disadvantage. I think he's gonna make a move where he can actually use a teleprompter during the debates.
Russ: Yeah. He probably should.
John: The only problem with that is the debates, instead of an hour and a half, will probably run around four hours.
Russ: 'Cause he'll have to wait for people -
John: 'Cause he - I mean, a debate is an impromptu discussion, right? So when Obama gets his - hang in there with me, this - but what's gonna happen, Obama will get his question and then he'll leave the podium for about five minutes to discuss his answer.
Russ: With the staff?
John: With his staff and his staff will take that information and conjure up a response but it's gonna take time to load it up on the teleprompter and then he'll give his reply.
Russ: What the Romney people ought to do is to come up with a 3D teleprompter.
John: A 3D teleprompter.
Russ: You know, we talked about this but there is a poll up and one of the networks went to the University of Wisconsin where Bobama gave his rebuttal speech, you know, about the debate. He couldn't give the rebuttal at the debate. He had to wait a day. And they were asking the students there, "Do you think it was fair that Obama did not get to use his teleprompter?" And a lot of them said, "Well, yeah. It was completely unfair." [Laughter] All right. And here's our line up for today's show. Our guest will be Nicholas Phillips, the young founder of Culture Map and what an extraordinary guy this is. He's a fun guy, a smart guy and probably already qualifies as a serial entrepreneur but it's gonna be a cool interview. But first [Break in Audio]. That's right. Finally it's time for the business maker's school of business.
John: Right. And well, I should bring up the fact that if you want the full curriculum, you need to go on to the website to businessmakers.com and you can listen to this week's lesson including our diatrad that we just - which I think was very necessary and very necessary thing to do.
Russ: I had to get it out of my system.
John: I know, but you'll get the full course instead of just a summary, which is what you get on the radio.
Russ: Absolutely. All right. So when - we kick off the school of business each week with the quote of the day.
John: The quote of the day.
Russ: And today's - the author of today's quote is Aldous Huxley.
John: Oh, Aldous Huxley.
Russ: That was 1984, right?
John: No, that was -
Russ: Brave New World?
John: Brave New World, yeah. 1984 was -
Russ: George Orwell.
John: George Orwell.
Russ: Yeah, okay. His cousin, right?
John: Yeah, they were related. They were twins separated at birth.
Russ: Right. Aldous Huxley, the author of Brave New World -
John: Yeah, that's a good story, by the way.
Russ: Yeah, it was great, right? And here's a good quote, too. Listen to this. "Facts do not cease to exist because they are ignored."
John: That's right. They're still out there.
Russ: Yeah, and I think that's kind of playing a role in the - some of the issues with the presidential election.
John: That's why Obama did not do very well in the debate.
Russ: He was trying to make them disappear by ignoring them.
John: Yeah. Well, you cannot argue socialism by using factual facts.
Russ: Right. 'Cause there aren't any.
John: Because there aren't any. No one can really point to anyone where a socialistic society has outperformed a capitalistic, free enterprise system.
Russ: Good point for our school mates there. All right. And that brings us to this week in business history so what happened during this October week in business history?
John: Okay, well, this week in business history 1797 - you know, I always used to think the bravest person in the world was the person that had the first glass of milk.
Russ: Yeah. 'Cause he didn't know, right?
John: He didn't do what was coming out of another animal for God's sake, right? It wasn't like rainwater or something. But I think this was a close second.
John: Or maybe a close third considering what we're gonna talk about right after this. But this was a person Andre Jacques Garnier who was the first to parachute jump.
Russ: In what year?
John: in 1797.
Russ: My God, this week in 1797.
John: That's right. So he was - the hydrogen balloon was about 3,200 feet above Paris and he just jumped out with a true leap of faith, you know, not knowing if the chute was gonna work and it did.
Russ: Okay. Cool.
John: So, anyway. Then getting on to our next unbelievable - 1846, the first public demonstration of anesthetics - the use of anesthesia in surgery. This was in 1846. Now, before anesthesia, there wasn't anything.
John: Just a shot of - a bottle of booze or something and doctors, you know, had to hold - had to hire strong men to hold the patients from squirming and bucking around, you know?
Russ: I wonder what kind of pay that was.
John: How would you like to get your appendix removed without any anesthesia, you know?
Russ: "What's your job?" "Well, the doc bring me in anytime he's doing surgery. I'm just in charge of holding down the guy that's being cut open."
John: Just think of all those people who got put out of work because of anesthesia? Thomas Green Morton, he was a dentist studying medicine and he began experimenting with ether and the rest is history.
John: This week in business history in 1867, the US formally takes possession of Alaska.
Russ: Thank goodness we did that.
John: Purchased it for $7.2 million. I wonder if they got a subprime loan for that. $0.02 an acre.
Russ: That's a good deal.
John: And they thought - and it was championed by the secretary of state under President Andrew Johnson who took over after Lincoln was assonated. William Henry Seward was secretary of state and everybody called it Steward's Folly. He was completely ridiculed, the guy, 'cause nobody thought there was anything up there.
Russ: And he bought it from Russ Capperia, right?
John: Yeah, the Russ Capperians, yeah. This week in business history in 1919, Radio Corporation of America was created.
Russ: RCA, wow.
John: RCA. They're still around.
John: All right, this week in business history in 1954, Texas Instruments announced the firs transistor radio.
Russ: My goodness. That was huge.
John: Where would we be without that?
Russ: That was huge and this generation doesn't understand it at all. I mean, transistors [Inaudible due to crosstalk] -
John: That's not the only thing this generation doesn't understand.
Russ: That's right. But it was such a big deal when radio - there was a few portable radio's before the transistor.
John: But they were huge.
John: Bulky like the brick cell phones.
John: Remember those?
Russ: And all of a sudden they were much smaller and really cool.
John: All right. This week in business history in 1956, FORTRAN - the first modern computer language - is shared with the coding community for the first time.
Russ: Wow. And it lasted a while.
John: You were part of that.
Russ: Well, not in 1956 but in -
John: Well, you were around then.
Russ: I was definitely around. I didn't know anything about software.
John: Well, then you were a part of it.
Russ: All right. I was. But in 19 -
John: You probably heard about it.
Russ: In 19 - this would have been in my second year - 1969, I took a FORTRAN course.
John: A course.
Russ: And did some FORTRAN coding. It's not very valuable anymore but at the time it was.
John: Well, it gives you a history. It gives you an appreciation of the business. This week in business history in 1973, the Zaïre Oil Embargo.
Russ: Yeah. It's a huge week.
John: I know. It resulted in very high gasoline prices, rationing. If you had an even license plate number, you could only go on an even day during the week.
Russ: They made you turn your thermostat up in office buildings.
John: I know. It's terrible. And then Carter turns around - President Carter turns around and blames us for having this national apathy thing going on.
John: You know, come on. Give me a break.
Russ: But I think that was the beginning of the desire to be energy independent so that was 27 -
John: Yeah, we won't use any energy anymore.
Russ: 39 years ago.
John: Back then, that was the way to do it.
Russ: 39 years ago. And we are now - believe it or not - on the verge of - I mean, there's a debate on whether or not we're gonna get there totally but with Canada and Mexico, our friends, we're gonna be in good shape.
John: I know. But the only one holding us back is our own president or employed the leadership, who thinks it's not. We should be holding all the cards in the energy market.
Russ: Well, and they're worried a bit about global warming. What's so interesting though about this new wave of energy innovation, there's so much abundance of natural gas and the CO2 emissions is way down.
John: I know. It is. And it's so -
Russ: Abundant, clean.
John: All I can say is, "So what?" I mean, we breathe in and out oxygen and carbon dioxide comes out and that's why we have all these trees around there. They take the carbon dioxide and manufacture oxygen.
Russ: That's right.
John: Now, if we cut down the carbon dioxide, that's less carbon dioxide for the plants and they're gonna make less oxygen and we're all gonna die.
Russ: We're gonna have a shortage of CO2 emissions.
John: Of people, yeah.
John: This week in business history in 1987, Black Monday. The DOW Jones industrial average falls by 22 percent. Wow. 1987.
Russ: Yeah, now that's interesting 'cause it was 508 points but it was 22 percent. This week is huge in business history.
John: Yeah, right. Okay, this week in business history in 2008, the DOW Jones Industrial closes down 733 points or 7 percent. The second worst day. We had the worst day and the second worst day.
Russ: So in this week, so you investors out there that are in the market these days, hang on to your -
John: Go buy some gold. Or silver. Silver's good, too.
Russ: It's interesting though because in 1987 it went down 500 points but that was 22 percent then. And this time, in 2008, it went down 730 points, but it was only 8 percent. But I remember 2008. Man, it was scary. And hope that don't happen again. So that wraps up this huge week in business history. All right. But that does bring us to navigating business jargon. This is that segment we kept with from back in - probably when we started this show in 1954 where it's also known as our vocabulary lesson.
John: That's when we had vacuum tubes in our transmitter.
Russ: That's right. And this is where I go out and find a brand new word -
John: Brand new.
Russ: Just come up.
John: Brand spanking new.
Russ: Hide it from John all week.
John: I know. In a mayonnaise jar.
Russ: Spring it on him right now and he's to guess the meaning.
John: 'Cause I have no idea what the meaning of the word is. I mean, I may know the meaning of the word, I just don't know what the word is right now.
Russ: Yeah, I would bet -
John: But I might come up with a word.
Russ: I would bet you might get this.
John: See, now you're gonna put this pressure on me, 'cause if I don't get it, then I'm gonna look like an idiot.
Russ: You ready?
John: I mean, I'm already a loser in this thing half the time.
Russ: After a string of about 30 weeks of nothing but nouns, we have an adjective today.
John: Okay. All right.
Russ: Orange collar.
John: Orange collar. Well, blue-collar worker is a - someone who works, you know, machine - heavy machinery, makes things with his hands. White collar is like a person who works in an office, and orange collar - hmm. Orange collar. Let me see. What would be an orange collar? Someone who works out in the Orange Groves of California.
Russ: No. No. You were going right down the right path and then it got hard. An orange collar worker is one that wears an orange safety vest while on the job. Like -
John: Those don't have collars.
Russ: No, it's a great point. But I'm sorry; they play a role in this world.
John: I have to disqualify the term.
Russ: There might be.
John: I am officially -
Russ: Vest with collars.
John: Have you seen any?
John: I am disqualifying that. Okay.
Russ: This week's jargon challenge has been roundly protested.
John: Under protest, yes.
Russ: All right. Before we wrap up today's school of business, it's time for the very popular PKF Texas Entrepreneur's Playbook. So let's welcome Mister Greg Price. [Break in Audio] And that wraps up today's school of business. Stay tuned in for our interview with Nicholas Phillips, the founder of Culture Map. This is the Businessmaker Show, heard on the radio and seen online at the businessmakers.com.