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The Yelp Scam

[ 48 ] January 19, 2012 | Erik Loomis

In theory, Yelp is a great thing. People can write reviews, people can read reviews, choose where to go. But like everything, real life is more complicated. The way I figure it, review writers can mostly be reduced to 3 categories: a) people who like to review things and treat things fairly, b) people who love something and are excited to review it, c) people who are motivated to review by a bad experience. It’s a democracy of the motivated, but it also requires reading between the lines. Is that restaurant not good, or did 2 people give it 1 star because it didn’t have enough vegan options?

Restaurants (other places too but I’m focusing on restaurants here) need quality reviews for success. This is even more so today when people are making dining decisions based on Yelp reviews. So there’s also a tremendous opportunity to take advantage of these restaurants. And Yelp is filling this gap:

During interviews with dozens of business owners over a span of several months, six people told this newspaper that Yelp sales representatives promised to move or remove negative reviews if their business would advertise. In another six instances, positive reviews disappeared — or negative ones appeared — after owners declined to advertise.

Because they were often asked to advertise soon after receiving negative reviews, many of these business owners believe Yelp employees use such reviews as sales leads. Several, including John, even suspect Yelp employees of writing them. Indeed, Yelp does pay some employees to write reviews of businesses that are solicited for advertising. And in at least one documented instance, a business owner who refused to advertise subsequently received a negative review from a Yelp employee.

Many business owners, like John, feel so threatened by Yelp’s power to harm their business that they declined to be interviewed unless their identities were concealed. (John is not the restaurant owner’s real name.) Several business owners likened Yelp to the Mafia, and one said she feared its retaliation. “Every time I had a sales person call me and I said, ‘Sorry, it doesn’t make sense for me to do this,’ … then all of a sudden reviews start disappearing.” To these mom-and-pop business owners, Yelp’s sales tactics are coercive, unethical, and, possibly, illegal.

It’s hard to say whether this is a policy developed at the top of Yelp headquarters or whether individual workers with access to the reviews have figured out a way to make a buck. The story’s lead-in speaks of a person calling a restaurant owner and offering to monitor his reviews–for a mere $299 a month.

Regardless of the particulars of that tale, and it is a tale that many business owners confirm with their own, there is much of the sketchy in Yelp’s business model. How to make money off the internet is always a legitimate question. Yelp seems to be coming up with a viable answer: extortion.

Your 21st Century University

[ 67 ] January 19, 2012 | Erik Loomis

Rutgers, setting an example for universities everywhere:

Rutgers University forgave $100,000 of the football coach’s interest-free home loan last year. The women’s basketball coach got monthly golf and car allowances. Both collected bonuses without winning a championship.

Meanwhile, the history department took away professors’ desk phones to save money and shrank its doctoral program by 25 percent. After funding cuts by the deficit-strapped Legislature, New Jersey’s state university froze professors’ salaries, cut the use of photocopies for exams and jacked up student tuition, housing and other fees.

If Rutgers just eliminated their history department, they could simply buy Greg Schiano’s house for him! Whoops, I might have given the school an idea.

There’s much more.

Via.

Jordan Weissmann: Hack

[ 103 ] January 19, 2012 | Erik Loomis

What on earth has happened to the Atlantic? It’s become embarrassing, especially considering the century and a half of great authors who have published there. It still occasionally publishes some very good pieces and I really like Ta-Nehisi Coates, but in the internet age the grand old magazine has evidently decided to split the difference between Slatepitches and the Washington Post op-ed page. It has gone all in for corporate shilling, hosting any number of big corporate events that potentially compromise its journalistic integrity. Here’s an example of how the Atlantic pitches this stuff. Among the speakers the Atlantic has hosted: union-buster Michelle Rhee.

As far as the hackish writers go, we all know about Caitlin Flanagan and Megan McArdle. But we have a new arrival in the battle for the Atlantic’s most hackish writer: Jordan Weissmann. His relative anonymity is blown out of the water by this story on supposedly indulgent out-of-touch teacher unions in Buffalo. Weissmann writes Mitt Romney some Republican debate talking points about teacher unions by blowing up the fact that Buffalo teachers have reconstructive surgery covered by their insurance. Equating Buffalo teachers with Beverly Hills starlets getting breast implants, Weissmann paints a picture of union greed.

Where to start here? The sexism of the photo published at the top of the article? That Weissmann provides not a single example of what any of these teachers used the benefit for during this supposed boom in plastic surgery of recent years, not to mention any comprehensive data? That he doesn’t bother to interview a single union member for his piece? That he doesn’t explore any other possible way for Buffalo balance the budget? That he doesn’t explore how much money Buffalo school administrators make? You have to especially love this bit, showing the sheer temerity of those fat cat union leaders:

In 1996, the rider was nearly cut. But after the daughter of a district employee was hurled through a windshield during a car wreck, requiring surgery to repair scars on her face and body, union officials lobbied to keep the benefit in place.

How dare those corrupt unionists demand that this woman not be disfigured for life!!!! I now totally support right to work a person to death laws!

Weissman of course follows with this all the evidence-free claims, the one-sided reporting, the disinterest in actually exploring what these surgeries were used for.

And of course, what does the average teacher in Buffalo make a year? $52,000!!! Talk about the 1%!!!!!!!! And I assume this means the average starting salary for a teacher is, what, in the high 30s or low 40s?

Here is a more balanced story on the matter. Note that the union has not rejected getting rid of the program, but argues it needs to be part of a comprehensive agreement. This totally makes sense–what union just gives back benefits without sitting down and hashing everything out? That would be counter to what a union fundamentally does. We’ll give back the benefit and you give us something else. Negotiation. But it’s far easier for Weissmann to provide a Republican talking point than engage in real journalism.

The most important point: if you are a journalist working for a major publication and writing a piece attacking unions and you can’t be bothered to call the union office and ask for a comment, you are a grade A hack.

Keystone

[ 45 ] January 18, 2012 | Erik Loomis

Congressional Republicans ensured the death of the Keystone XL pipeline. By forcing Obama to decide on granting a permit within 60 days, they made it impossible to re-route the pipeline in a way that Nebraska lawmakers would find less unacceptable than the original route. Republicans did this to make an election point. On that front, I’m a little bit worried. With gas prices rising again, discontent could rise too and even though Keystone would mean nothing for gas prices in the short term, the president and his political party always suffer. On the other hand, gas was high 4 years ago and people are slowly accepting this new reality, Michelle Bachmann’s laughable pledge to get gas back to $2 notwithstanding.

So this is a pretty big victory for those trying to move us to a cleaner energy future, those opposed to massive pollution and those fighting climate change. Of course, others are upset about this. David Frum has an odd column bemoaning its failure, saying that environmentalists shouldn’t celebrate and that we need to build our way to the future, not deny permits. Yglesias retweeted this column with full his full approval: “What @davidfrum said.” You mean denying this one permit isn’t going to halt climate change and isn’t the final answer to all our energy questions? Who knew! Frum might be right that we need some carbon taxes, but it is an absolute environmental victory to stop the Keystone XL pipeline.

SOPA and PIPA

[ 68 ] January 18, 2012 | Erik Loomis

The movement to fight against SOPA and PIPA, bills that would destroy much of what the internet is good for, is winning. When Marco Rubio and John Cornyn back away from a corporate-driven bill, you know it is dead. It’s another of the still too few but growing examples of how people are effectively protesting the corporate dominated world. Personally, while I’m glad Wikipedia stepped up to the plate on this and shut down its site for the day, I would have opposed, say, shutting down LGM, because what good would it possibly do? It’s better to talk about this stuff.

And the one point worth discussing that I have is to wonder what causes some of our most progressive legislators to support such a bad bill. Patrick Leahy is a big mover of SOPA, Al Franken of PIPA. This kind of thing is hardly uncommon. I guess they see something as a problem and make poor decisions on how to fight it. Or they are looking for huge campaign donations. But it’s frustrating.

Beverages

[ 24 ] January 17, 2012 | Erik Loomis

A couple of beverage-related stories this morning.

1. If you didn’t oppose fracking the Marcellus Shale before, let the Post provide some really strong evidence while you should: there is a significant chance the fracking process will pollute the groundwater used by Ommegang for their excellent beers. The thought of losing Ommegang is too much for me to contemplate. Luckily, the Ommegang brewers are leading the charge to protect their product and New York’s groundwater.

2. I know progressives love to trash Texas left and right but it’s a land of small charms. One of those charms is the town of Dublin, which has a restaurant serving the a 19th century offshoot Dr. Pepper recipe. It is (or was) delicious. I used to drink a lot of Dr. Pepper, though I gave it up a couple of years ago. But the Dublin Dr. Pepper was amazing. The multinational beverage corporation The Dr. Pepper Snapple Corporation was never comfortable with this “threat” to their brand and now they’ve cracked down. Dublin was so popular it began to sell some of its product online, violating the six-county radius agreement they had previously signed. Instead of coming to a compromise and saving this unique product, the multinational chose to crush Dublin Dr. Pepper, pulling the naming rights. Theoretically, the Waco-based corporation is going to continue the recipe and the store, but without the town’s association with it. We’ll see how long this lasts.

There really is nothing else in Dublin. It was a tourist attraction for this reason alone. The future viability of this town relies on it’s connection with its version of Dr. Pepper.

If you go to the Dr. Pepper museum in Waco, the top floor is a love fest to the multinational that runs it. It’s pretty gross. Maybe it’ll include an exhibit on crushing small-town Texas.

More here.

Jacob Lew: Union-Buster

[ 58 ] January 17, 2012 | Erik Loomis

Josh Eidelson on Jacob Lew, Obama’s new Chief of Staff. When Lew was Chief Operating Officer at NYU, he took the lead in crushing the university’s graduate student union, which had organized under the leadership of the United Auto Workers.

Makes you wonder if Mark Penn isn’t advising the president after all.

Blue-Green Alliances

[ 29 ] January 17, 2012 | Erik Loomis

Last week, AFL-CIO President Richard Trumka addressed the United Nations Investor Summit on Climate Risk. He made a couple of important points.

First:

And to those who say climate risk is a far off problem, I can tell you that I have hunted the same woods in Western Pennsylvania my entire life and climate change is happening now—I see it in the summer droughts that kill the trees, the warm winter nights when flowers bloom in January, the snows that fall less frequently and melt more quickly.

Even so, some will ask, why should investors or working people focus on climate risk when we have so many economic problems across the world? The labor movement has a clear answer: Addressing climate risk is not a distraction from solving our economic problems. My friends, addressing climate risk means retooling our world—it means that every factory and power plant, every home and office, every rail line and highway, every vehicle, locomotive and plane, every school and hospital, must be modernized, upgraded, renovated or replaced with something cleaner, more efficient, less wasteful.

Taking on the threat of climate change means putting investment capital to work creating jobs. It means building a road to a healthier world and a healthier world economy–one less dependent on volatile energy prices, one where many more of us have the things that modern energy makes possible.

But of course, as Trumka notes, fighting climate change on the ground is deeply complex:

Now, some people’s response is to demand that we end all coal production now—they say “End Coal.” Never mind that such a thing is simply not going to happen—there is no substitute now for metallurgical coal and if we stopped burning coal this afternoon and cut the power in the U.S. grid by 50 percent, as Mayor Bloomberg advocates, he’d be reading handwritten memos by candlelight this evening. Given that reality, it’s important to think about how that slogan is heard in places like my hometown of Nemacolin, Pennsylvania.

Nemacolin lives on coal—the coal mine my grandfather and my father went down to every day of their working lives, the power plant the mine feeds, the rail lines that carry coal to other plants. When these folks hear “End Coal,” it sounds like a threat to destroy the value of our homes, to shut our schools and churches, to drive us away from the place our parents and grandparents are buried, to take away the work that for more than a hundred years has made us who we are.

So why, in an economy without an effective safety net, would the good men and women of my hometown and a thousand places like it surrender their whole lives and sit by while others try to force them to bear the cost of change.

Trumka goes on to state that in the transition to a green economy, working-class people need to be the first consideration, not the last. That can be easier said than done. As Ken Ward notes, the United Mine Workers, Trumka’s home union, has not exactly articulated a very clear environmental critique of the coal industry. The coal is running out in many Appalachian mining communities and the UMWA sees itself attacked from all angles, even if evils of mountaintop removal are obvious. It hasn’t even expressed strong stances against companies on worker health, by which it could define an environmental program even if it can’t fight to end mountaintop removal.

This gets to the complexities of the blue-green alliance, or the coalition between labor and environmental groups to craft policies that builds a unionized and sustainable future. There are clear areas where labor and environmentalists should have a common agenda–green technology, worker health, pollution. But there are equally clear lines that demarcate where the two groups can and can’t work together, particularly in extractive industry unions. My book-in-progress explores how logging unions in the Pacific Northwest organized around environmental issues, broadly defined. In the 1970s, a strong blue-green coalition (though I don’t believe the term had been invented yet) existed in the Northwest, with logging unions allying with environmentalists to keep workers safe and force timber companies to comply with the era’s new environmental regulations. But this was fraying at the same time it was peaking. The International Woodworkers of America had long criticized the timber industry’s unsustainable cutting, but when the rubber met the road and environmentalists in the 1970s and 80s were demanding increased wilderness areas and the protection of the last remaining old-growth stands, how could they vote their own members out of work? Especially when their union was coming under attack from so many other sides, with mills shutting down left and right?

The lesson from both the Northwest forest and Trumka’s coal miners is cultural. In the end, cultural divides shouldn’t stop anyone from promoting environmental positions with as much vigor as possible. But there is something very real about the resentment engendered when so-called outsiders (a term that can mean so many things) demand the end of an extractive industry without much thought into where workers are going to go. Even though those jobs are probably going away anyhow, it gives business a convenient target to direct workers’ ire. Of course, I don’t have any great answers about how to avoid this problem except to build understanding between the two constituencies, hoping that alliances over keeping workers’ bodies safe and air and water clean lead to stronger connections that allow environmentalists and labor to build toward understanding on the more intractable issues.

Breaking News!

[ 26 ] January 15, 2012 | Erik Loomis

Irrelevant Jon Huntsman dropping out. Every progressive blog and twitter feed reporting incessantly. No one talking about Indiana right to work a person to death law. Politics as entertainment far more important. I’m already getting bored. I wonder if Rick Perry has said anything crazy in the last 30 seconds? Would love to tweet about that!

Branding

[ 24 ] January 15, 2012 | Erik Loomis

California ranchers are unhappy that the federal government wants to replace branding cattle with electronic chips placed in cattle’s ears. The chips make a lot of sense on many levels. It’s not the 19th century anymore. It’s also far less cruel to the animals. But people are moaning about the dying West. Then again, the West has been dying ever since it was discovered in the 1880s. Buffalo Bill’s Wild West Show, The Virginian, early conservation laws, the western, the writings of Edward Abbey, etc., have all bemoaned a lost West. Of course, cowboys still exist by the thousands, even though their very dangerous labor is forgotten about by the larger society. I’ve driven around the West multiple times with people whose jaws drop upon seeing a real life cowboy. But Western development has always used the most modern technology masked with a veneer of rustic romanticism–mining technology, dams and the incredibly sophisticated water systems that allow western cities to grow, logging, agribusiness. Cowboying too, especially in the 21st century.

Most Dangerous Cities

[ 34 ] January 15, 2012 | Erik Loomis

A new survey of the world’s most deadly cities show that the top 33 are in the Americas, with the vast majority along the drug highway in North America and northern South America, beginning with San Pedro Sula, Honduras, followed by Ciudad Juarez. This includes New Orleans and Detroit. At #34 sits Cape Town. Mosul is #44. What do all these cities in the Americas have in common? I can think of two things. First, they are on the road to the United States for drugs. Second, the all have violence fueled by the loose gun laws of the United States. While it would be naive to argue that legalizing marijuana would completely solve these problems (drug gangs are already transitioning into kidnapping, extortion, illegal logging, and other illicit activities), ending the war on some people who do some drugs would sure make a huge difference.

The second thing Americans could do would be enacting reasonable gun control legislation. Since we will do neither, we can expect these horrible numbers to continue. White Republicans will talk about the savage nature of brown people killing each other and demand ever higher walls on the border, either unaware or unconcerned with how the policies they espouse fuel these horrors.

Labor Notes

[ 28 ] January 15, 2012 | Erik Loomis

1. North Carolina call center workers are organizing with the International Brotherhood of Electrical Workers. Sitel treats their employees like early 20th century sweatshop workers, with the classic bathroom problem at the center of worker complaints. Like tenement sweatshops in 1910s New York, Sitel has vastly underprovided bathrooms for workers (1 bathroom for 200 women) and then punish workers for waiting in line to use it. Moreover, Sitel is threatening to fire workers involved in the union effort, leading to IBEW filings charges with the National Labor Relations Board. Classy company.

2. If you want to die on the job, I recommend working in Wyoming. Part of this has to do with the hard natural resource extraction jobs based in that state (oil, cattle) and part of it on the lack of a culture a safety or an enforcement regime for existing regulations.

3. After Indiana pushes through its new anti-union regulations (which progressives still aren’t paying any attention to. But hey, what did Romney say on Face the Nation? It’s very important!!!!! We need 4 million tweets about it!), Kentucky is almost certainly the next battleground, where workers will have a very hard time fighting back right to work a person to death laws.

4. Martin Luther King on right to work a person to death laws: “In our glorious fight for civil rights, we must guard against being fooled by false slogans, as ‘right-to-work.’ It provides no ‘rights’ and no ‘works.’ Its purpose is to destroy labor unions and the freedom of collective bargaining… We demand this fraud be stopped.”

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