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Business Letters

Surcharges spur energy efficiency

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January 27, 2008

Friday's Globe points out the impact of high electricity prices on manufacturers in Massachusetts ("Soaring electricity prices leave state's manufacturers struggling," Jan. 18). Some folks quoted in the story highlighted certain government-mandated surcharges on electricity as a reason why Massachusetts power rates are high relative to the rest of the country. However, the surcharges for energy efficiency and renewable energy have been in place for 10 years and have not risen. Rates have risen greatly because of our region's overdependence on natural gas and oil. Study after study shows that the energy efficiency surcharge has worked well to reduce market clearing prices. Without investments in energy efficiency spurred on by those surcharges, rates would be higher than they are today.

Larry Chretien,
Executive director
Mass. Energy Consumers Alliance
Quincy

'Welfare queen' canard appears
The Globe has decided to resurrect the old African-American "welfare queen" canard on the latest home mortgage crisis ("Broker's clients detail web of dashed dreams," Jan. 20).

I see it as an outrageous exploitation by the rich and powerful of the poor, mostly African-Americans, and other minorities and their communities.

Did you know that African-Americans and other minorities who do honestly qualify for a mortgage generally pay more? BWB. Borrowing While Black.

This same criminally inflated real estate bubble happened 20 years ago and caused the collapse of the savings and loan industry. But instead of this experience informing the politicians, who raked in the campaign contributions, or the media, who lapped up the advertising dollars, it only informed the criminal conspirators, who were more brazen this time than the last, making bad loans to desperate working people who lost confidence in the rental market.

Dick Gregory observed that a man without knowledge of himself and his heritage is like a tree without roots. Is it any less true of a community or a nation? We pin this tragedy on the minority and other working-class brokers sadly chasing the American dream as it has been presented to them, at our peril.

Can we go a little further up the food chain this time, so there won't be a next time?

Kerry Joyce,
Cranston, R.I.

Psychological skills often overlooked
So much of success at presidential leadership has less to do with a business degree than with intellectual, interpersonal, and psychological competence that cannot be measured by the acquisition of a master's degree in business ("MBA CEO president," Jan. 20).

While success in the business world may be a measure of certain valuable leadership traits, we often overlook the psychological issues that go into success as chief executive.

Leadership of a complex enterprise like this country is more than value-based or mission-driven.

As president, one must balance ability to serve several highly different constituencies; the people, the other branches of government, the political party, and the world at large.

Serving those who elect you must be balanced with adeptness to negotiate with other branches of government along with dexterity to represent this country's interests on the international stage.

A presidential leader needs the capacity to simultaneously listen, reflect, communicate, and regulate their own reactions to be effective.

The importance of the psychological skills requisite for effective presidential leadership is so often overlooked in understanding what makes for success and competence in companies and in this, the most influential role in the world.

Dr. Kenneth M. Settel,
Brookline

Clinical instructor of psychiatry, Harvard Medical School

Look elsewhere for retailer's woes
In response to the article regarding the bankruptcy filing of home furnishing retailer Domain, I think the Globe should not always rush to assume that every home furnishings retailer that has to file for bankruptcy is doing so because of a slowing economy or competition from cheap Chinese imports as you suggest ("Its furniture sales slipping, Domain files for Chap. 11," Jan. 21). There are plenty of upscale retailers doing well in the home sector in spite of a slowing economy or the competition from "inexpensive imports from China" being sold by others.

As a person who has spent 25 years supplying products to many national retail chains, I believe further analysis would find that Domain quite simply became irrelevant to the fast changing retail environment. Styles and consumer tastes change every decade or so in home furnishings and retailers must change also. Domain has had the same look for years and quite possibly consumers just got tired of it.

Larry Traverso,
West Roxbury

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