The federal antitrust case against Apple got underway a couple weeks ago.  The Justice Department contends that Apple plotted with five publishers to artificially inflate the cost of books in 2009-2010.  At the time, prior to the existence of the tablet device market that Steve Jobs created with the iPad, Apple did not sell e-books while Amazon sold 9 out of 10.  The Justice Department claims Jobs forced Amazon and every other e-book distributor to adopt a new e-book pricing model that harmed consumers.  Is this the “Right Thing to do?”  Did Apple violate antitrust laws that restricted competition and harmed consumers?  Let’s look at some issues:

1. Amazon’s Kindle is still the industry leader with Apple trailing in third.

2. The average retail price for trade e-books has since dropped from $7.97 to $7.34.

3. Over the same period readers bought 447% more e-books, and they can choose from dozens of tablets for titles and other media content.

4. Justice looked at the prices for digital versions of new and best selling books, which jumped a few cents.  Justice blames this on Apple’s so-called agency sales model.

5. Like Jobs had done earlier to music with iTunes, he wanted iBookstore to let producers set retail prices within simplified limits—songs for 99 cents, books capped at $12.99 or $14.99 depending on the category.  Apple would take a fixed 30% commission.  Note, he wanted to CAP prices—not require minimum prices and did not deal with retail prices.

6. Historically the book business has operated on wholesale distribution with publishers charging a fixed price and retailers setting the consumer sale price.

7. Amazon was used to buying e-books wholesale and selling them as loss leaders at $9.99, which publishers worried was erasing hard copy sales and freezing digital price expectations.

8. The Justice Department is trying to set a dangerous new theory of antitrust liability, contrary to multiple legal precedents going back to the 1980′s.  Normally, investigations use a “rule of reason” standard to weigh how business practices help or hurt competition.  The government wants the courts to declare Apple’s pricing model is a per se violation, or inherently unlawful.  Justice claims that Apple indirectly coerced Amazon to raise prices.  In other words, the still dominant online retailer is the victim because a rival entered the market.

9. The book publishers hated the $14.99 cap Apple insisted on to maintain standard pricing across its bookstore, but Justice cites these ceilings that constrain the ability to raise prices in a case allegedly about raising prices.

Is this antitrust suit the “Right Thing to do?”  The Justice Department is attempting to dictate how the book industry and online commerce must be structured in a way that benefits an incumbent like Amazon in what is otherwise a fluid, dynamic market.  Lower prices, more sellers, and better products don’t sound like restricting competition or harming consumers.  Is this one more example of government overreach?  It is not the “Right Thing to do.”

How the Government Rakes in Big Money with Student Loans - David Jesse, Higher Education Reporter, Detroit Free Press – The federal government projects a record $50 billion profit on student loans this year.  So, how does it do that?
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Ann Arbor Ypsilanti Regional Chamber of Commerce: Reflexology – Jackie Stoliker, Owner, oh so relaxing – A gentle style of foot message called reflexology  can induce deep relaxation, which is why Jackie Stoliker named her business oh so relaxing.  She says our feet provide access to our body’s “circuit board” with more than 7,000 nerve endings in each foot.
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Business Ethos: Punishing Apple – Dr. David Mielke, Retired Dean of the College of Business at EMU – Did Apple collude with publishers to raise e-book prices?  The U.S. Justice Department’s antitrust case against Apple is trying to prove that Apple served as the “ringmaster” of a conspiracy in violation of the Sherman antitrust act.   But do they have a case?  Read Dr Mielke’s blog here, and listen to our conversation at the link below.
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Milan Area Chamber of Commerce:  Culver Estates Apartments – Stacy Johnson, Manager – The city of Milan offers many housing options for its residents.  At Culver Estates Apartments you can choose from a number of innovatively designed apartment homes, including an amenity that most residents never find in an apartment.
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Think Local First:  The Indie Awards and the 2013 Resource Guide – Ingrid Ault, TLF Executive Director - Thanks to a new partnership with The Ann, distribution of Think Local First’s  Resource Guide is increasing 400%.  Ingrid explains where you’ll find copies of this publication that lists TLF members, and she also updates us on the first ever awards celebrating independent businesses in Washtenaw County.
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A study that included almost 4,600 men with non-metastatic prostate cancer suggests that healthy unsaturated fats can inhibit progression of prostate cancer.  The study was published in the June 10, 2013 issue of JAMA Internal Medicine and evaluated mortality rate in men with prostate cancer who substituted healthy unsaturated fats from plant sources, such as nuts and avocados, for saturated fats found in meats and high-fat dairy.

The greatest benefits were seen in those men who also cut back 10% of their carbohydrate (starchy foods) consumption in addition to making healthy fat substitutions. Research findings indicate that these dietary changes lowered risk of developing lethal prostate cancer by 29% and lowered risk of death from all causes by 26%.

All men can benefit from making simple dietary changes that substitute healthy fats for saturated fats.  These dietary changes also help reduce risk for heart disease, the leading cause of death for men.  Follow these simple steps to help increase your intake of healthier fats, while cutting back on saturated fats:

Broccoli Crunch Salad

Serves 6

Ingredients:

4 to 5 cups broccoli florets

1/2 cup finely chopped red onion

1/4 cup Meijer raisins

1/4 cup Meijer sunflower seeds

1/2 cup sliced celery

1/2 cup halved green grapes

1/4 cup Meijer light Mayonnaise (made with olive oil)

1 Tbsp. red wine vinegar

Directions:

1. In a large pot bring 6 cups water to boiling.  Add broccoli; cook 3 to 4 minutes until crisp-tender.  Drain and transfer to a large bowl of ice water to cool immediately.  Let stand 3 minutes, drain and pat dry.  Transfer to a large serving bowl.
2. Add onion, raisins, sunflower seeds, celery, grapes, mayonnaise and vinegar; toss to combine. Season with salt and pepper to taste and serve.

Spiced Salmon Fillets with Avocado Salsa

Serves 4

Ingredients:

4 (4-oz.) salmon fillets (NuVal Score 87 – aim for the higher score!)

½ tsp. McCormick® Ground Coriander Seed

1 tsp. McCormick® Ground Cumin, divided

1 lime, juiced, divided (NuVal Score 91)

1 Fresh California Avocado, pitted, peeled and cut into chunks (NuVal Score 89)

1 Markets of Meijer Vine Ripe Tomato, seeded and chopped (NuVal Score 96)

½ small red onion, finely chopped (NuVal Score 93)

1 tbsp. chopped fresh cilantro (NuVal Score 99)

1⁄8 tsp. McCormick® Cayenne pepper

Additional chopped fresh cilantro (NuVal Score 99)

Directions:

1. Preheat oven to 350°F. Line a baking sheet with foil; lightly coat foil with nonstick cooking spray. Season fillets with coriander, ½ teaspoon of the cumin, half of the lime juice, and freshly ground pepper to taste. Place fillets skin side down on the foil. Bake 15 minutes or until fish flakes easily with a fork.

2. Meanwhile, for the salsa, in a medium bowl combine avocado, tomato, onion, 1 tablespoon cilantro, cayenne, remaining ½ teaspoon cumin and remaining lime juice. Season with freshly ground pepper to taste.   Spoon salsa over fillets, sprinkle with additional cilantro, and serve.

Nutrition Information per serving: 210 calories, 11g fat, 2g saturated fat, 45mg cholesterol, 55mg sodium, 7g carbohydrate, 4g fiber, 22g protein

Recipe Source:  www.meijermealbox.com,  TryFoods International

Ann Arbor Board of Education Budget:  Lone Dissent - Christine Stead, Vice President, Ann Arbor Board of Education –  This week the Ann Arbor School Board approved the budget for the upcoming school year, and trustees did it without cutting bus transportation for high school students.  How they did it was by dipping into the equity fund.  We talk with the one trustee who maintains it was wrong to do that.
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Downtown Friday with the Main Street Area Association:  Last Chance for Ann Arbor Restaurant Week – Maura Thomson, MSAA Executive Director; Michael Hole, General Manager, The Black Pearl  - It’s the final night of Ann Arbor’s Restaurant Week, and The Black Pearl is offering a three course meal for $28.  The menu includes its award-winning Fish Tacos, which recently captured the Best Entrée award in the Taste of Ann Arbor for the second year in a row.
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Around the Home:  Norfolk Homes in the Parade of Homes – Pete Nowakowski, , Marketing & Communications Director, BRAG Ann Arbor; Janet Gilbert- Smith, Sales Manager, Michigan Division of Norfolk Homes – We get a sneak peek at three of the homes in the Parade of Homes designed and built by Norfolk Homes.  See what the trends and highlights in new homebuilding are.
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Downtown Friday with the Downtown Association of Ypsilanti: Medical Marijuana - Dave Heikkinen, DAY President; Katie Johnson, Manager, StickyYpsi – Michigan voters may have approved medical marijuana, but that was just the beginning of what has become a very complicated situation for caregivers and their patients.  Earlier this year the Michigan Supreme Court overruled the Michigan Court of Appeals and limited the role of marijuana dispensaries.  StickyYpsi is a member-based cooperative of caregivers and patients.
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Dexter Area Chamber of Commerce: What Relay of Life Means to Me – Holly Kipfmiller, Parent; Joe Schultz, Chamber President – When her 18 year-old daughter was recently diagnosed with cancer, Holly Kipfmiller realized that an event she had already been involved with was their way to fight back.  It’s a remarkable story of how a teenager is learning to beat back a disease with the love and support of her family.  Dexter is hosting Relay for Life Saturday, June 15 at Monument Park.  Learn more by clicking here.
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Tech Thursday:  Apple’s Announcement  – Rob Lewis, Owner, MacNirvana – Apple introduced a revamped version of iOS, its operating system, at its Worldwide Developers Conference Monday.  Our Mac expert tells us what we should expect when Apple’s latest software hits the market this fall.
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Ypsilanti Author Publishes Book She First Wrote in High School:   Barb Mattie, Katie’s mom; Katie Mattie, Author, M.A.J.I.C. and the Oracle of Delphi  - As an Ypsilanti High School student Katie Mattie wondered if she and her friends had a superpower, what would it be?  That resulted in Katie writing the young adult fantasy, M.A.J.I.C. and the Oracle of Delphi, landing a New York book agent, and now self-publishing her book.  Today Katie is a senior at University of Notre Dame.  She tells us about the incredible journey she has been on, how she is still anticipating that a publishing house will come calling, and how her connections in the movie industry could open another venue for her book.
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Saline Area Chamber of Commerce: Tax & Financial Planning  – Art Trapp, Chamber Executive Director; Chris Michalak, Capstone Tax & Financial – Located in the Busch’s Shopping Center in Saline, Capstone Tax & Financial was started in 1983 by Dennis Michalak.  Today his son, Chris, partners with him in the business which provides longterm financial planning for individuals and families.
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Wellness Wednesday:  Heroin in Washtenaw County – James Balmer, President, Dawn Farm – There have been eight overdoses from heroin in two days in the Ann Arbor area with one of those persons dying.  What is going on?  We talk with a man who is on the front lines fighting substance abuse in our community.  Since we first conducted this interview, a second person’s death from the eight overdoses has been confirmed.
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Manchester Area Chamber of Commerce: Relay for Life of Manchester   – Patti McCabe, Kiwanis of Manchester – Help create a world with no cancer and more birthdays.  Local residents participating in the Relay for Life of Manchester will be fighting back against cancer June 22-23 in Manchester.
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Who’s Watching the White House? - Henry Payne, Detroit News - Recent testimony by Tea Party representatives who had been harrassed by the IRS was riveting to watch, but where was the coverage by the mainstream media outlets?  Columnist Henry Payne says the Detroit Free Press, CNN, and ABC realized that the greatest threat of IRSgate is not to America’s civil liberties – but to their Democratic allies.
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Chelsea Area Chamber of Commerce:  TCF Bank – Bob Pierce, Chamber Executive Director; Valerie Foshee, Assistant Branch Manager, TCF Bank Chelsea – TCF Bank began business in 1923 as Twin City Building and Loan Association.  The company went public in 1986 and currently has 430 branches throughout an 8 state region, 53 of those here in Michigan, including Chelsea.  Learn about TCF’s Savings Promotion which runs through July 31, 2013, along with other savings advantages.
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Re:New Michigan: Combating Cardiovascular Disease – Larry Eiler, CEO, Eiler Communications; Bill Brinkerhoff, President, AlphaCore Pharma – Cardiovascular disease is the single leading cause of death worldwide.  Ann Arbor’s AlphaCore Pharma has been working on preventing and treating the conditions that lead to heart problems.  The company is now operating under the umbrella of multi-national pharmaceutical company AstraZeneca, which acquired AlphaCore Pharma earlier this year.
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Message Blocks – Len Gauger, Winner of “Best of SPARK Ann Arbor Boot Camp”  - Trying to arrange and conduct a meeting can be a frustrating process.  Message Blocks, a comprehensive system to streamline workflow and team coordination for meetings, can make your meeting better and give the planner an opportunity to enjoy the process.  The concept recently was awarded “Best of Boot Camp” following Ann Arbor SPARK’s 22^nd Entrepreneurial Boot Camp.
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West Washtenaw Business Association: Jackson Road Cruise – Rick Stites, WWBA President; Todd Bailey, Dunning Toyota – Cruise on over to the west side of town for the 5^th Annual Jackson Road Cruise.  The event is slated for Saturday, July 13 and will feature a parade of cars that span the ages.
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The Value of Ann Arbor SPARK – Paul Krutko, President/CEO, Ann Arbor SPARK – What is the value of Ann Arbor SPARK?  You can count it in jobs – 600 jobs that were created and more than 1100 jobs retained last year alone.   Paul Krutko shows us why his organization is an economic driver.   Ann Arbor SPARK’s mission is to advance the economy of the Ann Arbor Region by establishing the area as a desired place for business expansion and location, and it’s accomplishing that.
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Ypsilanti Teen Dymond Harding Wins National Pop Music Competition – Dymond Harding, Lincoln H.S. Junior – After winning a national pop music competition, Lincoln High School’s Dymond Harding worked with Grammy Award winner Salvador Santana and his10-time Grammy Award winner dad Carlos Santana to record a new single entitled “Me, Myself, & I.”  The project was created through PAVE, Preventing Abuse and Violence Through Education.  It’s a collaboration between Verizon, Minnesota based domestic violence agency Cornerstone, and MTE Inc.  The competition was created to promote healthy relationships and empower teens to take a stand against dating violence through the expression of pop music.  Photo:  Salvador and Carlos Santana with Dymond Harding.
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Ann Arbor Ypsilanti Regional Chamber of Commerce: MacNirvana – Rob Lewis, Owner/Trainer – The recently launched MacNirvana offers training and technical support for people and their Apple products in their home and/or business.  Owner Rob Lewis says technology is a tool; it might help in solving a problem but you still need a plan to get to the solution.
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Business Ethos: One Cost and Benefit of Immigration – Dr. David Mielke, Retired Dean of the College of Business at EMU – Today Dr. Mielke tackles the complicated issue of immigration and says there is a good reason to pass comprehensive immigration reform, but it’s one that few are talking about.

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Former Ann Arbor School Board Members Counter School District on Budget – Kathy Griswold & Bob Rorke – As the Ann Arbor School Board grapples with budget decisions, two former trustees say they have a number of  ideas on how to fix the fiscal crisis.

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Milan Area Chamber of Commerce:  Security & iPhone Repair- Jeff Morris, Owner, Call Your Help Desk – Learn about encryption software and proper use of passwords.  Also, break your iPhone screen?  Don’t despair – - they can actually be repaired in just a few hours.
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Immigration reform is a complicated and multi-faceted issue.  Questions arise regarding border security, amnesty or the conditions or requirements for citizenship for those here illegally, the need for more HB-1 visas for college graduates as demonstrated by the system quota being filled within a week, visas for students who graduate from US universities with advanced degrees, the thousands of high tech jobs open that could be filled by immigrants, the question of social welfare costs (for example Medicaid, welfare, food stamps, education), the right to vote, and from the standpoint of ethical treatment—should we bring people out of the shadows.  What is the “Right Thing to do?”  Let’s look at one cost issue that some consider as an important issue that has gotten minimal coverage.  What is the cost and benefit from the standpoint of social security?  Here are some points to consider:

1. Social security is the costliest of all federal programs.

2. As some 75 million baby boomers prepare to retire, immigrants could be crucial to keep the federal pension program solvent.

3. As too few Americans understand, Social Security is not a pre-funded retirement system.  There has been no money set aside to pay the benefits.  It operates as a pay as you go system.

4. Benefits paid each year roughly match payroll taxes collected, at least until the program goes into deficit in a few more years.  The Social Security Administration estimates the present discounted value of the 75 year shortfall of promised benefits beyond taxes collected is $8.6 trillion.

5. One of the major problems is too few current workers paying Social Security taxes to provide the benefits for retirees.  While there were 16 workers for every retiree in 1950, the ratio now stands at a little under 3 to 1 and within 20 years when baby boomers are age 65 or older, the ratio will fall to about 2.5 to 1.

6. Analysts claim that immigrants could ease the demographic problem in 3 ways:

a. Most immigrants come here between the ages of 18 and 35, at the start of their working years.

b. Few come with elderly parents and seniors who do come cannot claim Social Security because they have no work history here.

c. Immigrants tend to have more children than do native born Americans and their children also pay into the system.

7. Social Security’s chief actuary estimated the value of the 1.08 million net new legal and illegal immigrants that currently come to the US every year.  He calculates that the present value of the first 25 years is $500 billion and the surplus increases to $4 trillion over 75 years.

8. The Senate bill also increases immigration quotas to 500,000 a year over the next decade and then by about 150,000 a year after that.  That will mean an extra $600 billion and $4.6 trillion over 75 years.

9. Current illegal immigrants who have been paying into the system with phony Social Security numbers don’t qualify for benefits.

Based on these estimates, immigration reform can go a long way to solve the Social Security funding problem.  I am not arguing that the cost and benefit of immigration reform is the only issue or the most important to consider when asking, “What is the Right Thing to do?”  However, it is one more reason to pass comprehensive immigration reform.

This past week brought food industry news that has potential for a significant impact on public health.  The Alcoholic beverage industry has received temporary approval from the Treasury Department to add nutrition labels to their beverages. Also this week, the processed food industry’s pledge to cut 1.5 trillion calories from the U.S. food supply hit their goal two years early.   Overall, this is very good news for consumers.

The Skinny on Alcohol

The Treasury Department, which regulates alcohol, said this past week that beer, wine and spirits companies can voluntarily use labels that include serving size, servings per container, calories, carbohydrates, protein and fat per serving. Such package labels have never before been approved.

This is a win for distillers, who want to inform consumers that distilled spirits are low calorie, low in carbohydrate and fat free.  Consumer groups want alcoholic drinks to have the same transparency as packaged foods, which are required to be labeled.  Adding calorie content per serving to alcoholic drinks, especially pre-mixed drinks such as margaritas, can help guide consumer choices to lower calorie options.  And, keeping information on percent of alcohol by volume can also help consumers regulate their alcohol consumption.

Some public health advocates, such as the Center for Science in the Public Interest, criticize the labeling effort stating that nutrition labeling may give consumers a false sense of gaining a nutrition benefit from alcohol (i.e., distilled spirits are low calorie).  The beer industry is opposed to how the new labels may define serving sizes (actual serving size vs. serving size equivalent to 1.5 ounces pure alcohol per serving).

Beer and wine industry representatives may be less likely to include nutrition labels.   The wine industry states that, in their experience, nutrition labeling is not a key factor in consumer purchase decisions when it comes to wine.  Plus, the labels may take away from the sleek look of wine bottles.

The bottom line, labeling can increase consumer awareness when it comes to portion sizes and calorie consumption from alcoholic beverages.   This awareness can contribute to better choices and fewer calories consumed, helping consumers better manage a healthy body weight.

One thing the alcohol industry does not tell you is that alcohol contains 7 calories per gram (more than protein and carbohydrate, but less than fat).  Alcohol is metabolized by the liver as a fat (triglyceride).  Excessive alcohol intake can increase blood triglyceride levels and promote alcohol related liver disease (fatty liver disease, alcoholic hepatitis, and alcoholic cirrhosis).

Food Industry Cuts Calories for You!

After receiving strong criticism for contributing to America’s obesity crisis, in 2010, the companies that make up the Healthy Weight Commitment Foundation (HWCF) committed to meeting the 1.5 trillion calorie-reduction goal (which is against a 2007 baseline) by 2015, as part of First Lady Michelle Obama’s Partnership for a Healthier America.  According to the food industry, it has hit its goal two years early!  The Robert Wood Johnson Foundation (RWJF), an independent organization focused on improving America’s health, will review the data later this summer to verify the calorie reduction numbers.

The companies that make up HWCF are Bumble Bee Foods, LLC; Campbell Soup Company; ConAgra Foods; General Mills, Inc.; Kellogg Company; Kraft Foods, Inc.; Mars, Inc.; McCormick & Company, Inc.; Nestle USA; PepsiCo; Post Foods/Ralston Foods, LLC; Sara Lee Corp.; The Coca-Cola Company; The Hershey Company; The J.M. Smucker Company; and Unilever.

Calorie reduction in the food supply reflects changes in food formulations and more low- and zero-calorie and controlled-portion options, as well as marketing investments in these products.  These initiatives also contributed to a combined $1.25 billion increase in sales of lower-calorie products across the 16 companies between 2007 and 2011 (82% of total sales growth), versus a lower sales increase of $300 million for other, higher-calorie products.

How did the Healthy Weight Commitment Foundation (HWCF) come up with 1.5 trillion calories as a goal?  Expert consultants to the committee determined that this was the number of calories the 16 companies would need to cut so that if the same share of calories was cut from the rest of American food, and if exercise rates rose by the equivalent of cutting the same total number of calories again, then the total progress would exceed 100 calories per person per day — enough to at least start to reduce obesity rates, by some estimates.

One key point: Those 1.5 trillion calories work out to a 14-calories-per-day per-capita reduction based on the U.S.’s 2007 population. One academic metabolism researcher termed 14 calories “a drop in the bucket” against the 220 excessive calories per day being consumed by Americans, on average, as of 2007, according to U.S. Dept. of Agriculture research. Additionally, the FDA allows for a 20% margin of error in the calculation of calories on food labels.  This could contribute to inadvertently overestimating calorie reductions in the U.S. food supply.

Overall, the food industry is off to a good start at helping to curb calorie intake and reverse the sky-rocketing obesity rate in the U.S.  The bottom line, however, is still with the individual consumer.  Practicing portion control and making healthy food choices will have the greatest impact on reducing obesity in our nation.

Content adapted from mediapost.com, Karlene Lukovitz, May 30, 2013 “Industries Meet Calorie-Cutting Pledge Early”

Skinny White Sangria

Serves 6 (1 cup servings)

Ingredients:

1 1/2 cups mixed colorful bite-size fruit (raspberries, strawberries, blueberries, melon)

1 (750-ml) bottle white wine-slightly sweet (such as Barefoot® Refresh) or sweet white (such as Moscato)

1/4 cup brandy

2 tablespoons Triple Sec, or other orange-flavored liqueur (1/4 tsp. McCormick® orange or lemon extract may be substituted)

3/4 cup sparkling water or club soda

Ice cubes

Orange, lime or starfruit slices and fresh mint, for garnish

Directions:

1. Just before serving, stir wine, brandy, Triple Sec (or other orange liqueur) and sparkling water (or club soda) into the pitcher.
2. Add ice cubes to 6 glasses. Fill the glasses with the sangria, spooning some of the fruit into each glass. Garnish each drink with a slice of citrus or starfruit and a sprig of mint.

Note: for a little sweeter sangria, add two-three packets stevia sweetener (such as TruVia) or 2 Tablespoons Agave Nectar to pitcher and stir well to dissolve before serving.

Nutrition Information (per serving):  160 Calories (130 calories from alcohol), 0g Fat, 0mg Cholesterol, 14mg Sodium, 7g Carbohydrate, 1g Fiber, 0.5g Protein.