Friday, August 17, 2012

Is LEED Certified Construction Management Worth the Investment?


Nearly every major city or province is investigating the possibilities of renewable energy, as attested in a recent post about the Bala Falls Hydro Project in Ontario. Green building projects are on the rise in North America, with many new building achieving LEED certification at some cost to builders and homeowners. While everyone can agree that we need to conserve the earth’s dwindling resources, not everyone is pleased about those upfront costs, as Noelle Hirsch writes in today’s post. Noelle writes for http://www.constructionmanagement.net/, an online resource about all things construction.  Check out her guest post below

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By: Noelle Hirsch

There are two competing interests in construction management today: first, to overcome the slumping market and sell buildings; and second, to build with energy-saving and eco-conscious features in mind. Ideally, these two should go hand in hand, and in many cases they do. It can be tempting, though, for construction managers to seek cost-saving shortcuts for purposes of funding or expedience. Designing a building to be “green,” and seeking green certifications, is a costly and time-consuming process, which has many wondering whether the investment is worth it. In most cases, buildings built to green standards save a lot of money in energy costs over the years. The payback window can be long—20 to 30 years in some cases—but for permanent structures like houses, government offices, and schools, those savings can really add up.

Reduced energy consumption is one of the primary goals of the United States Green Building Council’s Leadership in Energy and Environmental Design (LEED) certification program. Construction teams who build structures to LEED certifications are eligible for inspection by USGBC officials, which culminates in an award corresponding to one of LEED’s five tiered levels: certified, bronze, silver, gold, or platinum. There are many different criteria for building teams to meet. Some are simple fixes, like using energy-efficient appliances or motion-sensing faucets and low-flow toilets. Others, like geothermal heating and cooling units and construction designed to maximize natural light and air flow, are more complex. All relate in some form or another to energy conservation, however, which can mean big cost savings for building owners and tenants.

Energy expenditures tend to be huge in the United States. Inefficient building is mostly to blame. Poor insulation, unnecessarily wasted water, and lights left burning strong waste significant sums each year. Ernst & Young, a financial services company, recently shaved $1 million off its annual electricity bill simply by replacing all of light bulbs in its Times Square offices with efficient models, and installing light sensors in public spaces. “The retrofit is one of the largest LED lighting retrofits yet in New York City. It will cut Ernst & Young’s lighting-related energy and maintenance costs in half,” SmartPlanet reported in 2012.

While the cost savings were substantial, the retrofit was not cheap. After rebates and grant awards were factored in, Ernst & Young spent $2 million upfront for the changes. If energy efficiency keeps up, the changes will of course pay for themselves. Many skeptics of the green program wonder if there is not too big a focus on the bottom line, however.

Henry Gifford, a New York-based energy efficiency expert, has openly criticized the LEED certification program’s focus on energy saving potential, rather than energy saving actuality. “It's impossible to go out and buy a building with a guarantee for how much energy it won't use,” Gifford told National Public Radio’s All Things Considered. “What really needs to happen is the transformation of the owners and the operators of the buildings to ensure that the building is being operated properly,” he said. “I like to say you can get the same gas mileage out of a Prius that you get from a Hummer if you drive it incorrectly.”

One thing seems clear, though: building owners who are committed to keeping their costs low can usually succeed, either with LEED or other small energy-saving measures. As was the case with Ernst & Young, a number of grants and subsidies are usually also available, which can help keep the upfront investment manageable. Many states and localities offer tax breaks for green building initiatives, for instance. Reductions or waivers for city inspection fees are available in some places, as well.

The federal government, usually through the Department of Energy, the Environmental Protection Agency, and the Department of Health and Human Services, also offers grant money to help builders and designers offset the costs of planned green improvements or additions. Applying for these grants and understanding the parameters often takes a lot of time and planning upfront. This means that construction and design teams usually need to budget not just finances, but also time for their projects.

“Going Green” is fast becoming a way of life for many in the construction industry. Seeking certification is usually about more than just earning a fancy credential—it is about long-term savings and reduction in energy consumption. This takes planning, saving, and doing, but is worth it for most in the long run.

Wednesday, August 8, 2012

Why the “Free Market” Today Resembles Soviet-Style Communism

A free market isn’t the same as “freedom.” In several blog posts, I’ve heavily criticized the conservative perspective that naively – and inaccurately – couples neoliberal economics with our broader concept of freedom.

Like economist Milton Friedman and his legion of followers, proponents of free markets argue that any governmental regulation that prevents a private enterprise from achieving its profit goals is a widespread and unlawful attack on the freedom of every man, woman, and child. On the surface, the logic of the argument is convincing. Government regulation – in the form of new environmental standards, stricter health standards or small business registration hurdles – creates costs for private companies. It inhibits people’s ability to start new businesses that create jobs and to generate profits, which presumably create more jobs.   

But the connection between free markets and freedom is more complicated than that. It originates in the two socio-economic systems that at one time characterized our way of life on this planet. Up until the 1990s, “free-market” capitalism was considered the opposite of Soviet-style communism, in which economies were centrally planned, consumer choice was non-existent, and citizens were subject to the whims of a few centralized authorities. This dichotomy between communism and capitalism was characterized in the West as “The Free World” vs. “Behind the Iron Curtain.” 

I recently came across an interesting article in Salon.com that articulated the irony of our perception that free market capitalism equates to freedom in society. In particular, author Sara Robinson argues that neoliberal economics is not a counter to Soviet-style communism but in fact analogous to its attack on individual liberties.  There are at least three ways in which the free market ideology now mimics Soviet-based communism.

Central Planning and Control
First, one of the things we associate with communism is central planning and control of the economic system. The supposed free market approach was meant to completely decentralize economic development through the “invisible hand.” (The invisible hand theory argues that, driven by self-interest, individuals will use capital to address market needs, creating value for both consumers and themselves.)  

But a small number of business leaders today possess shocking levels of power over society. As Ira Jackson from the Kennedy School at Harvard explained, CEOs and executives of companies are “the new high priests, reining oligarchs of our capitalist system.” Driven primarily by the need to create shareholder wealth, these individuals secure highly prestigious positions of influence over governmental bodies. They do so through mechanisms like the US-based “super PACs” – powerful political action committees that spend millions of dollars bolstering, but not directly supporting, political candidates or specific pieces of legislation. They wield power through the “revolving door syndrome” – a practice that sees people from an industry take regulatory or legislative jobs overseeing that industry, and vice versa. And these powerful business leaders also suffer from the assumption that they are “too big to fail”.

Consider JP Morgan’s Jamie Dimon, who sits on the board of the Federal Reserve, the very same body meant to regulate his firm. Consider the many food and beverage corporations that have immense influence on food and safety regulations. Or the cozy relationship between oil giants and the Minerals Management Service – a now-defunct federal regulatory body that was responsible for managing the United States’ natural gas, oil and other mineral resources. That relationship resulted in the approval of careless oil projects and was associated with serious oil spills.

It is in business’ best interest to replace government regulation with self-regulation. And when that happens, you get CEOs and top executives - not that unlike communist totalitarians - with substantial power over the very products and services that define our way of life. 

Limited Consumer Choice
Second, communism limits consumers’ choice to those products and services determined by the state, not the market. Ironically, though, consumer choice in the West has become severely limited under free market capitalism.

My students often argue it is the consumer’s responsibility to “vote with their dollars”: the free market provides a powerful force through which to address issues of inequality and sustainability. I cringe when I hear this argument, though, because it overlooks the fundamental motivation of business: to limit consumers’ choice of products and services by erecting entry barriers to new ones or by buying out and eliminating existing ones.

For instance, North American consumers today have no choice but to purchase appliances that will break down in approximately seven years. This unavailability of longer-lasting appliances is not caused by limited technological capabilities; it is the result of an optimality equation designed to maximize repeat revenue. Companies make more money if they can sell you a new stove every seven years rather than every 30. Gone are the days, as Robinson explains, when products are as abundant as the mom and pop shops that sourced them. Product diversity is the antithesis of economies of scale and if companies have the power to limit the supply of this diversity, they will. So, the supposed freedom associated with market demand for products and services has been severely stunted by companies’ quest for market dominance and power. 

The Propaganda Machine
Third, and perhaps most sinister, is the level of cognitive influence companies hold over us. During the Cold War, the Iron Curtain earned its name because of its ability to prevent citizens living behind the curtain from knowing what was happening outside the borders of their country. This information control kept citizens in check and ensured the outside world didn’t affect people’s acceptance of the communist regime.

It’s no coincidence that one of the largest expense items on a corporation’s balance sheet today is communications, marketing and public relations. It is absolutely mind-boggling to comprehend the sheer magnitude of capital used by corporations on communications to the public. I’ve said before that it’s hard to believe this marketing hasn’t had a substantial impact on our values, our beliefs, and our way of life. As Naomi Klein explained in her book No Logo, marketing has evolved from promoting a product to promoting a lifestyle. As the largest institution in today’s society, business’ impact has gone beyond the provision of a product or service to the primary vehicle shaping society.

A very important debate I have with my students is whether citizens of the West realize how much the plethora of marketing messages dominate their lives. My students have a difficult time accepting the notion that their behaviour is influenced by decades of messaging. In their minds, every consumer has the ability to detach from this external influence and make objective decisions. But this assumption overlooks the fact that business, like any other actor, has the ability to socially construct the norms and beliefs of a given society, whether intentionally or not.

Take, as an extreme example, a marketing initiative that introduced the scent of bacon into baby blankets to establish a solid future customer base. On top of all this, there’s the very monopolistic media industry, where the dissemination of information is based on whether it generates shareholder return rather than whether it in the best interests of society.  There is no question in my mind that the West is equally trapped behind an iron curtain of commercialization, excessive consumption, and a biased media, shielded by a seemingly endless supply of messages.

Where is the freedom that a “free market” society was supposed to provide? 

Stephen Barley, one of the most prominent management academics recently called on his fellow researchers to examine more closely the influence companies have on those institutions meant to protect democracy and the public good. He did so in the backdrop of the role creditors played in changing bankruptcy reform, which made it more difficult for individuals to declare bankruptcy, and the role pharmaceutical companies’ played in persuading the US congress to amend the Food, Drug, and Cosmetics Act so that drugs are approved without going through any clinical trials.   

Yet management scholars have spent more time examining how companies can more effectively play this role rather than examining how to engage in business practices that preserve democracy and the public good.  A rather large research area in business is what is known as Corporate Political Activity where some of the leading management scholars theorize how for-profit businesses can manipulate the regulatory environment for their own benefit by, for example, pushing for government policy that will position firm level capabilities as having a competitive advantage over competitors. 

So while there is no doubt in my mind that “freedom” is a contentious term when discussed in the context of the “free market”, we as business scholars are no less complicit than the companies who directly or indirectly erode such freedoms.  

Thursday, June 28, 2012

The Sadistic Nature of the Insurance Industry


According to the National Journal’s Influence Alley, health insurers in the US secretly spent huge amounts of money to defeat health care reform while pretending to support Obamacare. The industry gave $102.4 million over 15 months to the Chamber of Commerce for advertising designed to convince the public that the legislation should be defeated.  This is completely legal because there is no law that requires groups to publicly disclose where they are sending money or who they are receiving it from.  Up until now, this expenditure was unknown to the public because the insurance industry accounted for it on their books under the heading “advocacy”. 

At first blush, insurers’ attempting to influence public sentiment to oppose the bill would seem odd because health care reform essentially creates more customers for insurance companies overnight.  But according to Neera Tanden, who served as the senior advisor for health reform at the Department of Health and Human Services and was a member of the Obama White House health reform team, the industry’s distaste for reform revolved around a provision under the Affordable Care Act that requires companies to spend at least 80 percent of customers’ premium dollars on actual health care expenditures and that failure to do so would require them to refund the money back to customers. 

These two stipulations would essentially rein in escalating premium amounts by keeping them tied to the level of claims made by customers.  In other words, insurance companies would be bound to stick to their primary value proposition, which is to protect consumers.  By working to defeat the bill, companies are aiming to use customer premium amounts for purposes other than what they were originally set out to do.  This is not that dissimilar to the financial services industry that fought hard to overturn Glass Steagal so that they could use their revenue from customers’ deposits for investment purposes – purposes other than what the customer is expecting that money to be used for. 

I find this shocking discovery to be a fantastically accurately illumination of the underlying motivation of the insurance industry.  On the one hand, they market themselves as being the protectors of their customers in the case of emergencies yet do everything in their power to renege on that promise when an emergency does in fact take place.  Is it that simple?  Do we account for the industry’s schizoid behaviour around advocacy on Obamacare to their underlying culture of hypocrisy that has all but infected this industry? 

In my view, the insurance industry is one of the largest market failures in our economic society.  The underlying purpose of their efforts to eliminate the bill is to wipe out any accountability to their customers because it would mean that they could overcharge on premiums and at the same time do their best at reneging on a promise to fulfill insurance claims.  Sadly, this is the ultimate objective of business – maximize revenues and minimize costs.

But the provision in the Affordable Care Act would put a cap on the margins that insurance companies can make because 80% of their premium revenue has to be spent on claims.  As a consequence, Obamacare is seeking to fix this market failure.  The problem though is that influencing regulation is considered another strategy to appropriate value from society (in this case customers).  Value appropriation is a fundamental pillar of business strategy where the objective is to extract economic value that exists in society and to bring it into the firm for the benefit of shareholders.  The simplest example of this would be Wal-Mart, whose size has allowed them to successfully cut the margins of their suppliers (i.e. appropriate value) for the benefit of their own shareholders.  The insurance industry recognizes that Obamacare would cripple their ability to appropriate value because any excess margin they accumulate has to be given back to customers. 

What is more disturbing for me as a business professor is that I consider myself complicit in the sadistic act of the insurance industry.  I recently read an article on Online MBA that talked about 8 ways in which business schools are building in more responsible decisions in their graduates by altering business school curricula.  Many of these changes are a direct response to the financial crisis for which business schools carry much of the blame.  But what I find interesting about these eight changes and the many other initiatives I’ve seen at business schools is that the underlying paradigm of shareholder maximization and value appropriation remains unchanged.  Offering specializations in ethics and corporate social responsibility (CSR), adding more courses in this domain, aligning their mission statements with society’s interests, and deemphasizing profits as the primary function of business are insufficient in my view and ignorant of the elephant in the room.  

Fundamentally, what we teach as our core capstone course is to do precisely what the insurance industry is doing.  We teach them to appropriate and monopolize value, value that may originate from any sector of society.  These business school CSR initiatives represent fluffy disguises analogous to putting a nice coat of paint on a termite-infected house. Until business schools, their board of advisors, academic conference delegates, and the many other institutional pillars that support the existing business school paradigm look themselves in the mirror and recognize that they provide the platform through which this sort of behaviour is considered legitimate, they should be standing by the insurance industry in their attempts to defeat Obamacare.  

Sunday, June 10, 2012

Why do we ignore climate change?


The scientific community has reached a consensus that the build-up of heat-trapping emissions from burning fossil fuels and clearing forests is changing the climate, the result of which imposes significant risk to our well-being. Yet as conclusive as these studies are, we continue as a society to accelerate our emission levels putting us on a trajectory of temperature increases well in excess of the two degree celsius target established by the international community in the 2009 Copenhagen Accord. 

This shocking ambivalence persists in the backdrop of 2011 being a “real killer” when it comes to hot temperatures and a record number of extreme weather events including droughts, catastrophic floods, and forest fires, including the worst ever in Texas.  This alongside a recent study that showed how our current trajectory will lead to an unprecedented and permanent tipping point in the Earth’s ability to provide ecosystem services.

Why then, despite unequivocal conclusions, does society drag their feet in acting?  Several studies have looked at this question and through doing so they tend to distinguish between those people who deny that climate change is a reality from those people who accept human-induced climate change as reality, yet are inactive in response.   Let's look at each in turn.

Why do people deny climate change? 

You may be surprised to learn that only a small minority of people actually all-out denies that climate change is real and/or caused by human action.  Even in the US, a country known for being skeptical of climate science, only 10-20% of the population is in denial. This denial persists despite some of the worst skeptics coming out to admit that the leading scientists are in fact correct including Richard Muller at UC Berkeley who originally set out to debunk climate change mantra but then after an objective analysis conceded in a wall Street Journal article that “GlobalWarming is Real”

Misleading Media:  The media unfortunately does a very poor job at educating the public on the facts of climate change and instead has played an important role in spreading doubt by giving the false impression that climate science is one side of an equally valid set of arguments. David Johnson at Huffington Post remarked on this pathetic reality and blasted the integrity of the journalistic profession for perpetuating this very ambiguity in their efforts to be objective.  I recently attacked Margaret Wente and Canada's Globe & Mail for spreading such doubt through outdated scientific knowledge and opinions of highly unqualified individuals. 

Related to this is the fact that the deniers, according to Dr. Leiserowitz, Director of the Yale Project on Climate Change Communication, oftentimes drown out the broader conversation about the subject, making themselves seem more numerous than they are in reality.  These individuals have borrowed from the tobacco industry’s playbook of the 1980s/1990s of dis-information where the objective is not necessarily to deny climate change but to raise enough doubt so that you can “blunt the urge for calls for political reform”.  As a consequence, the 70-80% of the public who are neither strong believers or strong skeptics are highly swayed by this megaphone. 

Political Affiliation:  The second reason has to do with political ideologies.  Of those who reject climate change outright, 76% were conservatives.  The conservative mantra tends to associate action on climate change with a breach of fundamental human liberties presumably because such action will impose unnecessary regulation that will choke the very foundations upon which freedom flourishes.  As a consequence, right wing conservatives have lumped climate change among other topics that carry “liberal views” such as pro-choice, same-sex marriage and gun-control. 


(Allow me to digress: This is a very simplistic argument because on the one hand it overlooks the fact that a lack of regulation to curb human impacts on the climate is a recipe for a loss of freedom as more and more individuals struggle to rely on the basic necessities that enable such freedoms.  On the other hand it overlooks how a lack of regulation represents a platform through which those actors most complicit in causing climate change are in fact appropriating the very freedoms that we value.)  

Culture of Denial: Australian intellectual Clive Hamilton argues that denial is not necessarily due to a deficit of information as much as it is due to culture. Hamilton demonstrates that society has a history of denial and delusion in the face of substantial threat because people have a tendency to ignore knowledge that unsettles the mind.  As Hamilton explained, “so earnestly did the British public wish for peace that they were prepared to suspend their grasp of reality in return for a comforting delusion” that a world war would never happen.  The desire to disbelieve deepens as the scale of the threat grows, until a point is reached when the facts can be resisted no longer.  Unfortunately with climate change, unlike war, this ‘point’ is largely hidden from daily view.” 

Why do we not act? 

Now what about those who concede that climate change is a reality and that humans are the primary cause yet still do very little in response?  The American PsychologicalAssociation commissioned a task force to look at the Interface BetweenPsychology and Global Climate Change to identify the factors that prevent people from taking immediate action.  Many of these same factors were identified in other sources.  I summarize a selected few here: 

Climate Change Isn’t an Evil Tyrant:  The first reason has to do with the fact that climate change doesn’t represent an easily digestible evil character to which we can all rally against.  We worry more about anthrax (with an annual death toll of virtually zero) than influenza (with an annual death toll of half-million people).  Because climate change isn’t intentional, it does not capture out attention. So it’s a shame that climate change isn’t trying to intentional kill us! 

Climate Change is beyond our Noses:  Some argue that the economic recession has pushed climate change down on the priority list in light of more urgent economic needs.  It costs money to do some of the right green things. But more importantly, like all animals, we are more prone to respond to clear and present danger.  Our brains evolved that way.   Despite the fact that our intellectual prowess has enabled us to predict dangers before they actually happen, our brains haven’t developed the natural biological instinct to do something about it.

Climate Change is Inconvenient.  Old habits die hard.  There is a massive institutionalized system of social norms and practices that make it very difficult to change behaviour. How many times have you forgotten shopping bags or your reusable coffee mug?  Our way of life for the last several decades  (past two generations) has spawned behaviour that presumed that we had unlimited resources.  Look around you – everything you purchase is slated for the landfill.  It is seemingly impossible to do something without living in a clay hut, peeing in a hole in the ground that acts as compost for your garden, or walking several kilometers to the nearest congregation of box stores.  When you go into the grocery store or a home improvement store, the procedures for domesticating our lifestyles is based on an unsustainable system albeit with small yet humorous products that help us to be less unsustainable, perhaps out of guilt. 
Climate Change is an Underestimated Risk.  Finally, we tend to underestimate the risk associated with climate change to the point where we presume that our human ingenuity will come to the rescue.  This very naive perspective is common among neo-liberal observers who claim that the market can and will resolve the problem.  When I hear this rhetoric, i can't help but think of one of Albert Einstein's favourite quotations where he says (if I may paraphrase) that one cannot resolve a problem by using the same approach that initially caused it.  
All in all, the task for social scientists is huge.  The non-social scientists have done their job just as they had done in the 1960s proving unequivocally that tobacco was a cause of cancer.  But it wasn't until the 1990s that we finally began to take action at the societal level.  Let's hope we don't take so long this time around!  

Friday, May 25, 2012

The Veil is Lifted on ALEC


Up until a month or so ago, I hadn’t heard of an organization called ALEC (the American Legislative Exchange Council).  According to their website, ALEC’s objective is to “advance the fundamental principles of free-market enterprise, limited government, and federalism at the state level through a nonpartisan public-private partnership of America’s state legislators, members of the private sector and the general public”.  This certainly reads as a noble mission and until 4 weeks ago it hadn’t really been questioned whatsoever.  In fact, most people had not heard about ALEC. 

But all that changed when member companies Coca-Cola, Mars, Wendy’s and Kraft started withdrawing their membership of ALEC following the Treyvon Martin shooting.  ALEC is a staunch supporter of the infamous “stand your grand law”, which is a law in Florida that permits individuals from shooting someone in self-defense.  The reaction to their withdrawal is what I find especially striking.

On the one side you have right wing pundits at the WallStreet Journal and Fox News strongly defending ALEC’s ambitions and thereby criticizing the companies for withdrawing their membership. On the other side, you have left wing groups criticizing these organizations for taking so long to withdraw and only doing so because of the potential PR backlash that would ensue if they didn’t. 

But the criticism goes much deeper than that.  The stand your ground law really opened a can of worms to a more sinister secret of ALEC. Behind closed doors, ALEC brings together executives of the largest companies and state legislators to draft legislation that promotes the free market, limited government ideology of the organization. Once drafted and accepted by members of ALEC, they are proposed to the state senate by the state legislator who is essentially a member of ALEC.  The fascinating part of this though is that this process has been occurring for decades with no public knowledge.  Al Jazeera uncovered that an National Rifle Association (NFL) gun law was approved through ALEC and subsequently pushed through state legislatures.  It provided a venue for the NRA to present their law. 

The recent revelation of ALEC hints at the underlying objectives of what this organization is trying to do.  The general public is excluded from this conversation, especially since the media has been unable to figure out what this organization has been doing for over four decades now.  ALEC calls itself a charity and by law it cannot engage in more than 20% of their activities towards lobbying, which comes across as amusing when we consider that ALEC’s primary purpose is to draft legislation to benefit its members.  Common Cause argues that what ALEC does is pure lobbying because they are essentially encouraging public policy makers to pass laws that they themselves design.  Common Cause claims that they have thousands of pages of internal records that prove beyond doubt that this is a lobbying organization.  This would mean that they are breaking the law because they’ve denoted themselves a charity to evade federal taxes.  The Guardian noted:

"Alec boasts about how frequently its bills are introduced in state legislatures to show its influence over the legislative process," the complaint notes. In one annual scorecard, Alec's executive director, Samuel Brunelli, told corporate backers that, with a success rate higher than 20%, "Alec is a good investment. Nowhere else can you get a return that high."

Rashad from Common Cause made the point crystal clear on AlJazeera when he explained that by withdrawing from ALEC over the public eye on the Florida gun law, the corporations like Coca-Cola and Wal-Mart were getting their cake and eating it too in that they were supporting an organization that was doing some questionable behaviour yet also helped push policies that were in their best interests.  Only because they recognized the public backlash that could ensue did they withdraw.  One can conclude that they likely wouldn’t have withdrawn if this didn’t happen.  Is this social activism in action or merely the tip of the iceberg of a host of activities like this that we just don’t now about? 

Fox News, WSJ and right-wing pundits argue that there is nothing wrong with this. To them, this is democracy in action with private sector businesses engaging in their right as active and legal citizens to voice their opinion by using ALEC as a mechanism through which to advocate certain policies.  What drives me most crazy is the rather pervasive belief, however genuine, that pushing for limited government and free enterprise policies is analogous to the very freedoms to which we all aspire.  This is the veil that many push on voters because of the perceived implications for job creation.  But it’s organizations like ALEC, the ridiculous super-pacs that Stephen Colbert rightly mocks and the more general pervasiveness of the private sector to push the above-like policies that do the exact opposite.  And it’s still unclear to me whether these organizations really don’t understand market failures or whether they are aware but maintain the rhetoric to prevent the public from catching on. 

Unfortunately, the news about ALEC has all but faded at the time of this posting.  This is disappointing because while it illuminated the destructive effects such an organization can have on a democratic society, a lack of persistence in calling out organizations like this likely won't change anything.