What Has Happened to Morality in the USA?

moralityYears ago, religions enforced what I would call a pseudo moral code through the power of the state to enact laws desired by the most powerful religions.  This of course reflected the power that religions had in society back when you could go to hell for missing mass on Sunday.  Gambling was verboten.  There was legalized horse race betting in only a few states, and a few states had some other sports such as greyhound racing or Jai Alai which you could bet on.  Legally, you could only place bets at the venue.  Of course, organized crime found it very lucrative to offer “off track” betting.  Every street corner where I grew up had a bookie some place or other.  And of course, the numbers game was a very popular way for fools to lose their money.  Sports betting was done privately, and casino gambling did not start in Las Vegas until 1931.  It had been legal earlier but was outlawed in 1910 and not legalized until 1931.  The only lottery I ever heard of when I was growing up had to do with the Irish Sweepstakes.  There must have been some way to buy these tickets, but I never investigated it.

Today, you can buy pull tabs and lottery tickets in almost every gas station.  Casinos are just around the corner in twenty states and sports betting became legal on April 15, 2021, in the USA.  Organized religion believed that gambling would be addictive, and husband and wives would neglect their parental responsibilities as they gambled away their hard-earned wages.  People who regularly buy lottery tickets are the norm today even though economists refer to the lottery as a tax on the poor and the stupid.

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Marijuana was once considered a drug from Satan and every state in the Union banned its sale.  The movie “Reefer Madness” came out in 1936 and portrayed wild eyed youth going crazy after smoking a joint.  Smoking weed was a sure path to hell and damnation.  As of May 27, 2022, 19 states, two territories and the District of Columbia have now enacted measures to regulate cannabis for adult non-medical use with several other states limiting its use to medical purposes.  You can now smoke that joint where it once would have put you in jail.

drink-whiskey-hail-satan-satanic-baphomet-gift-manuel-pichlerWhiskey can now be purchased almost 24/7 in many states.  You can buy it in grocery stores, gas stations, bars, and convenience stores.  Perhaps no substance has been more abhorred by religions than whiskey.  Benjamin Franklin said that “Beer is proof that God loved man and wanted him to be happy.”  However, this was not the attitude of most religious organizations.  Temperance movements motivated by so called moral considerations did their best to ban alcohol in the US.  It is illegal in thirteen countries in the world.  Several of the world’s major religions ban the use of alcohol.  There are seventy-five scripture (Bible) warnings against the drinking of alcohol.  Is it any wonder that so many religions have prohibited the drinking of alcohol.

  • Hosea 4:11 – Intoxicating wine takes away intelligence.
  • Micah 2:11 – Israelites are eager to follow false teachers who prophesy plenty of intoxicating drinks.
  • Habakkuk 2:16 – Drinking leads to shame.

I have been trying to show some of the influences that religion and state have had in terms of legislating and enforcing moral codes and policy.  I could say more about prostitution and pornography but the nuances I hold regarding these subjects would entail a blog of their own.  Suffice it to say that restrictions in these areas have declined considerably in the last fifty years.

The_Fire__Brimstone_PreachingNow there may be some of you reading my blog and expecting a fire and brimstone sermon regarding the sins of humanity and the temptations of the devil.  Nothing could be further from my mind.  I am not advocating going back to the religious sanctions or beliefs that fueled so much of our political system.  In the first place, they were misguided and in the second place they penalized those who could practice moral virtues along with those most reluctant.  I could never understand why I could not buy liquor on Sunday or after 10 PM on weekdays or in a grocery store.  I have never received a DUI or even a warning for driving drunk.

The biggest problem with efforts to legislate morality is that they assume that the legal sanctions will result in a more moral society.  The evidence of racism, sexism, homophobia, and xenophobia in America should put a stake through the heart of that false belief.  The government has never been a vendor of morality.  People confuse legality with morality.

1787-Money-Mania-fullThe government has always been in the marketing business.  They would market “SIN” if they could find a way to sell it or allow it to be sold.  In some respects, they are already doing that with the legalization of gambling and their promotion of bigger and bigger lotteries.  The poor buy more and more tickets when the odds go ever higher against anyone winning.  Powerball’s odds are 1 in 292 million, and the combined populations in the states where tickets are sold equal nearly 320 million.  What would anyone do with 2 billion dollars?  (As I write this, the lottery of 2.0 billion has been won by a single person in California)

This is the stuff of more is better which I talked about in my last blog.  How large of a jackpot would be enough to support you for the rest of your life?  Assuming the average age of a lottery ticket holder, it would take nearly $5 million, according to Robert Pagliarini, president of Pacifica Wealth Advisors.  With a net take home of 1 billion dollars, one billion dollars could easily support 200 people for the rest of their lives.

There is nothing moral about ever bigger lottery purses.  Not to mention the fact that the odds are better that the lottery winner will go bankrupt rather than that they will see a happy old age with lots of money.  “Life after winning the lottery may not stay glamorous forever. Whether they win $500 million or $1 million, about 70 percent of lotto winners lose or spend all that money in five years or less.”Easy Come, Easy Go.

What does this have to do with morality? 

First, we must define morality.  It is not about making money, winning the lottery, drinking booze, smoking weed or visiting a casino.  The Prosperity Gospel is a distortion of the idea of moral behavior.  Morality is the process of asking yourself what impact an action, a course of action, a decision, a purchase, or a behavior will have on other people.  It does not mean that you cannot drink and gamble.  It does not mean that you cannot have wild sex at a swinger’s party.  It does mean that you need to be able to ask yourself if your gambling and drinking is having a negative impact on others.  It does mean that you need to ask yourself if your sexual habits are having a negative impact on other people.  By others. I mean more than your family, more than your friends, more than your neighbors.  I mean other states.  I mean other countries.  I mean the entire world.  This does not mean that you have no rights.  You have the right to swing your arm but your right proverbially stops at the nose of another person.

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As I said in my last blog, we must look outside of ourselves to find morality.  This is not easy to do.  Some of us, (fewer every year) go to a church on Sunday where we may get a sermon that asks us to look at our behaviors and what we can do for other people.  (“According to a 2021 survey, 31 percent of Americans never attend church or synagogue, compared to 22 percent of Americans who attend every week.”— Church Attendance of Americans)  Those of us who attend church hear maybe a twenty or thirty minute sermon each week on morality.

Compared to this 30-minute sermon once per week for maybe fifty percent of Americans:

The average American watches four hours of TV each day (that’s down from about six hours in the 1960s through 1990s by the way). There are about twenty minutes of “non-program material” per hour, which includes ads, promos, news updates, etc. For our purposes, let’s consider all of this commercial matter.  So in four hours, we see eighty minutes of commercials.” — Fred Pagano, Radio, television and Internet advertising producer and director.

This means that the average American hears about 560 minutes of paid advertisements each week or the equivalent of 19 sermons.  These ads exhort you to think of yourself.  You are special but you need more to be more special.  If you don’t buy more, you neighbors will look down on you.  Your friends will surpass you in status.  Your family will stop loving you.  You can be a better smarter person, but you must buy the new Persico Bacon Maker.  You need a new car or maybe even a bigger house.  You should go out to eat more or get a new insurance policy.

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Advertisements are NEVER what you can do for other people or society.  They are ALWAYS inherently selfish.  Is it any wonder that Americans shop till they drop or keep on buying more stuff that is bigger and bigger than they will ever need?   Americans have been and are continually bombarded by Madison Avenue messages that are a form of de facto brainwashing.  Too many Americans today are selfish, self-centered, narcissistic, and exhibit an entitlement mentality.  Economic policy extols benefits that will accrue to society with more buying and more spending.  It is somewhat ironic that the rampant inflation today and the wild economic swings have not been helped one iota by a greedy narcissistic economic policy that ignores any effort to provide a balance Moral Policy.  In addition, Americans are no happier today than they were seventy years ago.

“The vast majority of Americans report being “very” (42%) or “fairly happy” (44%), but the combined 86% is down from 91% the last time Gallup asked about this, in December 2008. It is also the lowest overall percentage happy Gallup has recorded in periodic readings over 71 years and is only the fifth time happiness has dipped below the 90% mark in 23 readings since 1948.”Happiness Not Quite as Widespread as Usual in the U.S

How do we get a balance between Moral Policy and Economic Policy?

My apologies.  This blog was longer than I thought it would be.  I will address the above question in my next blog.  In the meantime, I would love to hear any comments, questions or ideas that you might have concerning the issues I have raised in this and my previous blog.

All About that Money

its all about the money

Because you know it’s all about that money

‘Bout that money, no people

It’s all ’bout that money, ’bout that money, no people

It’s all ’bout that money, ’bout that money, no people

It’s all ’bout that money, ’bout that money (money, money, money, money)

I want to thank Meghan Trainor for the inspiration for my blog this week.  Her song “All About That Bass” is one I have listened to many times.  If you have not heard it, it is a great tune.  But be sure to read the lyrics.  The lyrics tell you something about our current attitudes towards health and beauty.

My second inspiration for this blog came from a recent James Hightower article in his newsletter “The Lowdown, Volume 24, Number 2, February 22, 2022.”  The title of the article was “Gouge Consumers -> and Blame Joe Biden.”  A good friend of mine who I often discuss politics with sent me this article and wanted to know my opinion.  At first glance, I thought it resonated quite well with my series on corporate greed.  “It’s all ‘bout that money.”

Hightower argues that the Republicans want to do anything they can to pin the problems with the inflationary economy on poor Joe Biden.  Joe and the Democrats are (as usual) caught between the proverbial rock and a hard place.  According to Hightower, Joe is being unfairly blamed for an inflationary spiral that is actually caused by corporate greed.  This greed is aided and abetted by Republicans who wine and dine the fat cats so that they can get their coffers filled with campaign contributions come election time.  So far so good right?  “It’s all ‘bout that money.”

However, this scenario has several major flaws in it.  Let me list three erroneous assumptions that I will dissect in this blog.

  1. By rallying the American people, the Democrats can curtail the power of the corporations to control prices and win the votes of the adoring populace.
  2.  Inflation is the major enemy of America, and it must be returned to the Pandora’s box that it somehow escaped from.
  3.  The Democrats (If they control Congress) will be motivated to make systemic changes to the power structure that gird elections in America today. This means making major changes in corporate charters, anti-trust laws and the military industrial complex.

 Let us look at each of these assumptions to see how I think they really will or can play out.

  •  By rallying the American people, the Democrats can curtail the power of the corporations to control prices and win the votes of the adoring populace.

Americans have benefited for many years from an economic structure which traded off low prices for corporate power.  Corporations have since the 1950’s shucked off most of the power restraints that had been imposed during the era of the “Robber Barons.”  Little by little, inch by inch and year by year, corporations gained back more and more power.  At some point, they gained enough power to dictate the laws that they would play the capitalism game by.  Congress stood by as these powerful companies gained this power.  The Citizens United Decision is one manifestation of this situation.  “It’s all ‘bout that money.”

What did the American people get in return?  Simply the ability to shop nonstop.  To celebrate profligacy with the axiom that everything in America must be bigger and bigger.  From car engines to houses to burgers, the impelling religion in America is that more is better, bigger is better.  He or she who has the most toys wins.  It has become a cornerstone of American life to buy, buy and then buy some more.  The damage to the environment has been ignored.  Just as long as there is cheap gas, cheap energy and cheap food, the hell with the climate and the hell with any economic restraint.  “It’s all ‘bout that money.”

Biden will do everything he can to stop gas prices from rising.  But he is powerless to stop them from doing so.  The Republicans are like pigs wallowing in mud.  They can fling accusations everywhere and they will hit their target.  The Democrats are trying to tell people that the higher gas prices are the sacrifice we must make for Ukrainian Freedom.  This is laughable.  Since when have Americans been willing to sacrifice for anything these past fifty or so years?  For the environment?  For the poor?  For minorities?  For Immigrants.”  I should mention the unwillingness of millions of Americans to follow a mask mandate or vaccination requirements to help stem the Corona virus pandemic.  Our country has become so self-centered and narcissistic that the only thing that motivates us is our wallet and how much money we can spend on gas guzzling pick-up trucks.  “It’s all ‘bout that money.”

To be honest, I also own a 2011 Ford F150 pick-up truck.  If gas goes up to twenty dollars a gallon, I will gladly junk the truck and either walk more or travel less.  I realize that for many people this may not be an option.  However, it is also a fact that many pick-up truck owners seldom use the “pick-up” capacity of their trucks or tow anything.  The main purpose for many owners of a pick-up truck is a status symbol.

“The high-spec, luxuriously equipped pickup truck has become a status symbol again, argues Chris Woodyard for USA Today. ‘Driven by cheap fuel, a surging economy and a rising stock market, more buyers are willing to pay as much for a richly appointed truck as they would a fancy Mercedes-Benz or Lexus sedan,’ he writes.”

  • Inflation is the major enemy of America and that it must be returned to the Pandora’s box that it somehow escaped from.

Maintaining a stable and consistent economy is not a one-time deal.  It is a process that involves a continuous juggling act with many different balls.  Some of the balls include, unemployment, interest rates, deficit spending, environmental regulations, wage, and price controls.  There are many other balls, but my point is that no single ball will keep the economy on an even keel.  “It’s all ‘bout that money.”

Economic spirals and economic adjustments are inevitable.  They have been since the beginning of the world.  Complicating the juggling act is that now more than ever we are in a global economy where the actions of many other actors can distort or influence the juggling act.  No one nation has the power to control the global influences that impact all of the world’s economies.  A misguided reliance on military power can to some extent be blamed for the many conflicts that disrupt the lives of average people who simply want to live a good life and have the freedom to choose how they live.  “It’s all ‘bout that money.” 

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Biden will be blamed for the economy since the “blame game” seems to be the major policy element used by both parties.  Their reliance on this blame game shows their contempt for the American people since they assume that most of us are either too stupid or too myopic to understand that the President has very little control over the economy in the short run and to some extent even in the long run.  More important are the influences of the various economic policies and economic philosophies guiding how the juggling will be done.  I can safely say that economists are continually wrong but also continually readjusting their models to better stabilize and adjust the economy.  Just as new variants of the Corona virus seem to be continually emerging, new economic theories are continually being developed to better explain economic realities.  “It’s all ‘bout that money.”

  • The Democrats (If they control congress) will be motivated to make systemic changes to the power structure that gird elections in America today. This means making major changes in corporate charters, anti-trust laws and the military industrial complex.

If past is prologue, I will bet that the Democrats will not do anything major to upset the corporate apple cart that they as much as the Republicans depend on to get elected.  I have not seen Democrats, progressive or not, supporting term limits, redoing corporate laws, corporate charters, monopolies, monopsonies or global trading powers.  For the past fifty years, the Democrats, well intentioned sometimes, have let themselves be out-thought, out-planned and out maneuvered by their slick cousins the Republicans.  The Republicans scream, threaten and berate the Democrats for the exact same behaviors that they exhibit when they are in power.  What do the Democrats do?  They maintain that they are “taking the high road” when their cousins are taking the low road.  “It’s all ‘bout that money.”

The new ten-year budget for the US military was passed after an increase from 2.8 trillion dollars to 3.2 trillion dollars by a bipartisan vote.

“The bill, which angered antiwar progressives who had hoped Democrats’ unified control of Washington would lead to significant cuts in military spending, passed overwhelmingly on an 89-to-10 vote.  The lopsided votes, both in the Senate and the House, which passed the legislation last week, underscored the bipartisan commitment in Congress to spend huge amounts of federal money on defense initiatives at a time when Republicans have balked at spending even a fraction as much on social programs.”

Over the past twenty or so years, every time we have gone to war whether in Iraq, Libya, Yemen or Syria, the Democrats have linked arms with the Republicans as we embark on yet another unsanctioned war to protect American interests.  The only interests I ever see us protecting are our oil interests.  American soldiers are fodder for American industry in the sense that it is their lives and bodies that are sacrificed so that Global corporations can make ever greater profits.  “It’s all ‘bout that money.”

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So pardon me please, if I am skeptical of the Democrats or if I see the Democans and Republicats as more or less Tweddle Dee and Tweddle Dum.  Many people have said that we need a third party.  In some ways, we did get a third party.  The Tea Party became the Republican Party and kicked out the old-time Republicans.  We still have two parties.  I think it is high time we start a Progressive Party and leave the lame Democrats to party with their Republican Cousins.  Perhaps there are enough people who want to see major changes in Government and will allow us to get rid of the ever running, ever campaigning, ever raising money, lifetime professional politicians.  “It’s all ‘bout that money.”

“Net worth data compiled by the nonpartisan Center for Responsive Politics for 2018, the most recent year available, shows that almost two-thirds of U.S. senators have a net worth exceeding $1 million. A few of them are exceptionally wealthy.”

Years ago, I voted for the best person regardless of party.  The past eight or so years facing Trump and an increasingly right-wing Republican party, I succumbed to the “Lesser Evil” concept.  I voted for the Democratic candidate regardless of whether or not I thought they would make much of a difference.  In the past, I seldom voted for a Democratic candidate.  I voted for people like Ross Perot and Ralph Nader and many others who were given little or no chance of getting elected.  I was told that “I threw my vote away.”  Sad to say, I used the same argument on many friends as I encouraged them to vote for Hillary or Biden.  I am back to the “old” John. 

It’s all ’bout that money, ’bout that money, no people

It’s all ’bout that money, ’bout that money, no people

It’s all ’bout that money, ’bout that money (money, money, money, money)

PS:

Why is it that Politicians keep screaming about tax cuts and the need to cut taxes but Tax Revenues by State (some exceptions) keep growing?

Real_Tax-Revenue_19-12_update_650px

Taking It to Extremes – Part 3 of 5 – Society versus the Economy

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Introduction: (Skip if you have read Part 1)

A number of years ago, I wrote an article about the famous “Golden Mean” of Greek philosophy.  The mean was basically a rule that said the best way of living is to balance extremes.  Another way of looking at what this rule implies is that evil or bad things happen when we over do something.  We need to take all things in moderation.  Thus, drugs, smoking, guns, watching TV etc., are not evil or bad in themselves but when we take them to extremes, they became dangerous and counterproductive.

Life is an ongoing struggle to find our proper balance.  However, it may never be a question of equal balance because the proper balance can never be static.  There are many dimensions or polarities in life where it is not really a matter of moderation or balance but more a matter of dynamically imposing a temporary order between two extremes.  The concept of Hegelian Dialectics comes to my mind as an aide in thinking about this process.

Dialectical thinking can be described as: “The ability to view issues from multiple perspectives and to arrive at the most economical and reasonable reconciliation of seemingly contradictory information and postures.”  This is a much more complex process than simply balancing extremes.  The more I thought about it the more I decided to add a corollary to the Greek Rule.  Since I think time has easily proved the value of the Golden Mean, a corollary by definition is a proposition that follows from and is appended to one already proved.  My corollary is as follows:

John’s Corollary:

Anytime, one concept in a set of opposing concepts is allowed to dominate the other concept, extreme dysfunction will result.

I want to discuss this more by using five pairs of concepts that I think are critical to our world today.  I want to show you how the distortion created by proponents of each concept is dangerous to life as we know it.  I do not use the word dangerous loosely or frivolously or for effect.  The battle between these ideas is destroying life as we know it on this planet.   The proponents of each side of these polarities seek to destroy the proponents on the other side.

Rather than looking at things from a systems perspective and trying to dynamically adjust the system, opponents are driven to allow one idea to dominate to the exclusion of the other idea.  Witness the name calling between conservatives and liberals today.  Each side demonizes the other side and assumes God is on their side and Satan is on the other side. Liberals are evil to conservatives and conservatives are evil to liberals.

Here are the five pairs of concepts we will look at in the next few weeks.  This week we will look at number three on my list.  We have already discussed the “efficiency versus effectiveness” dimension in part one of this blog series and the “growth versus development” dimension in part two.

  1. Efficiency versus Effectiveness
  2. Growth versus Development
  3. Society versus the Economy
  4. Conservative versus Liberal
  5. Rights of the Individual versus Rights of the Group
  1. Society versus the Economy:

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Today we are faced with an epic pandemic.  This threat has led to a battle between those who want to protect the economy and those for whom society is more important.  This is not the first time such a battle has been waged.  Four thousand years ago Moses battled Ramses over the same issue.  Pharaoh Ramses had cheap labor with the Israelites.  The Egyptian economy was purring along.  Pharaoh did not want to change anything.  The Israelites were not so happy.  Their society was in chaos as it was being slowly but inevitably destroyed by Egyptian culture.  A few hundred more years and there would be no Israelites.  A leader named Moses decided his people must leave Egypt.  He first tried to convince Ramses to simply “let my people go.”  Ramses would have none of this idea.  He had a good thing going with cheap labor and he was not about to rock the boat.

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Moses decided to play hard ball.  He brought a plague to hurt the Egyptians.  Ramses was aggrieved and decided to allow the Israelites to leave.  However, at the last-minute Ramses changed his mind.  It was a question of what would be good for the economy or what would be good for the Israelites.  The economy won out.  Moses brought another plague and then another.  Each time, Ramses would acquiesce and then at the last minute he would change his mind.  He finally let the Israelites leave but once they were “on the road” he had his last-minute regrets again and sent his army to bring them back.  The rest is (as they say) “history.”

Fast forward to the world in 2020.  A pandemic more widespread and as lethal as any in history has struck the world.  The battle is again engaged between leaders like Donald Trump who care more about the economy and leaders who care more about society.  A false dichotomy if ever there was one.  Under John’s corollary, taking either position and ignoring the other position can and will only result in a destruction of both.  You cannot have a society without an economy, and you can not have an economy without a society.  But what is the purpose of each?  What is a society and what is an economy?

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A society is a group of people, perhaps a tribe, a nation, or a family that choose to live together to share mutual resources.  People that live together beget relationships that involve feelings of community that grow out of common concerns.  These feelings range from love to sometimes hate.  There is a mutual interdependence in a society that implies the good of the society is based on the good of the individual and vice versa.  Societies develop a strong bond based on this mutual interdependence.

An economy is a means of providing resources for a society.  It is the means towards an end.  The end being the perpetuity of the society.  No society can exist without an economy.  Social economies have existed since the cave people and at one point simply involved people hunting and gathering together.  In modern times, we see economies based on a much more complex web of “hunting and gathering.”  The hunting and gathering in a modern society may involve Internet hunting or gathering crops at the local supermarket.

whatstheeconomy

A supply chain exists in modern societies based on what economists’ call “comparative advantage.”  This involves multiple components of a supply chain each doing what they do best.  Farmers raise dairy cattle.  Dairies make milk.  Trucking companies transfer the milk.  Retail stores sell the milk and other dairy products.  Consumers work at some part of a supply chain (there are thousands of supply chains that exist in the world today) to earn money to purchase goods and services sold at one or more other supply chains.  This is a simple version of an economy.  The bottom line is that in the 21st Century, no jobs mean no money.  No money means no ability to purchase goods and services.  Ergo, you starve to death or rely on the charity of your neighbors in your society.

Since the Covid-19 Pandemic began, leaders seem to have chosen sides in a fruitless and ignorant battle between “society” and the “economy.”  Over and over again we have seen leaders propose one extreme position or the other.  “We must shut everything down or we must open everything up!”  In the USA, there has been endless wrangling over a second stimulus bill.  Instead of intelligently looking at the balance between society and the economy, both Democrats and Republicans have used the crisis to further their own goals and agendas.

coronavirus

This lack of leadership of both parties directly dovetails with the lack of leadership set by the former President of the United States.  A man whose own agenda was based on keeping an economy going to further his chances for reelection.  For a man who scorned Marxism and socialism, he realized that the economy always plays a major role in the life of the common person.  He thought that if the economy was going strong, people would overlook the thousands of deaths of their friends and neighbors.  He created a narrative that the entire pandemic was “false.”  The deaths were false.  He claimed falsely that the hospitals were reporting everything as Covid-19 deaths when they were actually due to something else.  I personally talked to many Trump supporters who told me that doctors and hospitals did this because the reimbursement rates were higher for deaths due to Covid-19 than for other causes.

trump on virus magic

I served four years in the United States Air Force.  I learned while in the military that a commander, whether of a battalion, a squadron or a platoon has a major responsibility to keep his soldiers as safe as possible.  Any military leader who recklessly and needlessly puts his or her soldiers in harm’s way will be tried and court martialed for “dereliction” of duty. Following are two examples from a Marine publication titled: “Leadership, Ethics and Law of War Discussion Guide for Marines” by Marine Corps University, Lejeune Leadership (2008)

“The platoon commander was charged with violations of Article 92 (Dereliction of Duty), Article 109 (Willful and wrongful damage to an automobile), Article 118 (Premeditated murder) and Article 133 (Willful and wrongful failure to safeguard the detainees) of the Uniform Code of Military Justice on 1 Feb 2005.”

“1st Lt Lawson was charged with dereliction of duty for failing to account for LCpl Rother’s welfare by posting him alone as a road guide. He was also charged with disobeying an order for two violations: failing to post guides in pairs as Judgment Case Study 5 Dependability Proficiency as directed and failing to provide a roster of the guides to the logistics officer before they were posted.”

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We have a former President who claims to be the Commander in Chief, yet he violated every canon of military law by recklessly and needlessly putting the entire US population in harm’s way by his disregard for the lives of these people.  His actions resulted in the deaths of thousands and yet I hear no outcry for justice.  I hear no strong voices noting his responsibility for these thousands of deaths.  As the primary person responsible for politicizing this Pandemic, he must be held accountable for these deaths.  The liars and sycophants who supported him must also be held accountable.

I blame the Democrats for their continuing stupidity to face reality.  I blame the Republicans for their lack of integrity and for their greed.  Both parties have made the pandemic in the USA much worse than it needed to be.  The lack of courage on one side and the greed on the other side created a perfect storm for the Covid-19 Virus to spread.  As I speak, we are witnessing a spike and increase in cases that seems beyond belief.

online-school-socialization

Part of the reason for the increase in Corvid-10 cases has been the rush by both parties to open the schools.  So-called well-meaning educators and health experts even supported this rush.  On one side it was the belief that “day care” was needed to get the economy going again and on the other side, it was the need for teachers and schools to regain income.  Both sides used such flimsy excuses as “students need socializing” and would not get it at home or “students would fall behind” if they did not have direct contact with teachers.  No one ever defined what “socializing” children means or how schools accomplish this.  As for students falling behind, were they talking about their ability to take these ridiculous standardized state tests which add little or nothing to a student’s ability to think and reason for themselves?   No one ever defined what these children would be “falling behind.”

I realize that I have digressed from my original thesis.  To sum it up, a failure to balance the needs of both the society and the economy has led to disastrous results.  Add to this, the overall lack of leadership by the US President and both parties and we have a crisis that has never before been witnessed in the USA.  Some of these same problems beset the rest of the world.  The stupidity we have seen is not simply a manifestation of American ignorance, greed, and short-sightedness.  The world abounds in bad leadership.  Will we learn anything from our mistakes?  Will we admit that we were so polarized that neither side would listen to the other side?  Will we make progress under a new President?  Only time will tell.

It’s the Economy Stupid! The Five Myths of Capitalism – Part 2 of 5

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In my last blog, I asserted that unless we change our attitudes and policies regarding Corporate Capitalism, it will destroy our country, our way of life, our freedoms, and our environment.  Furthermore, we will undoubtedly take some of the rest of the world along with us.  This is a serious accusation and one I do not take lightly.  I have been a business educator in higher education and a management consultant to some of the top corporations in the world.  My opinion is not based on theory or just observations.  It is based on the in-depth work I did with over 32 companies during the time I was actively consulting.  There are many good people working in corporate America but as Dr. Deming once said “You put a good person in a bad system and the system will win every time.  Myth #2 is:

  1. Corporations are self-regulating entities for the common good

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Let me explain what I mean by this.  There is a doctrine or concept in economics called “laissez faire.”  Laissez faire is a belief that business and the marketplace works best without the interference of any government agencies.  It implies that there is an invisible hand which controls the dynamics of markets.  This invisible hand ensures that markets reach some kind of an equilibrium.   One example of this is the “law of supply and demand.”  When demand is high, prices will be high, and supplies will be low.  Not everyone who wants the product will be able to find them or afford them.  Producers will then create more of the product to meet demand.  As product quantity rises, prices fall until an equilibrium price is reached that allows everyone who wants the product to purchase the product at a price that is fair to them and allows the manufacturers to make a profit.  Governments can intervene (as they have done) by price controls or subsidies.  Such efforts by the government are generally felt to destroy the inherent equilibrium of the market.

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government-warning-poster-mock1_1024x1024People who believe in the idea of “laissez faire” want us to think that corporations can regulate themselves and do a better job of it then when government interferes with rules, policies, laws and regulations.  Business leaders do their best to hype this belief and to create the idea that government run organizations are always less efficient than those run by private entities. Conservatives and Republicans subscribe to this belief and spend a great deal of time and effort trying to thwart those who disagree.

The conservative mantra is that “no government is good government.”  In the past forty or so years, there has been a concerted effort by conservative politicians to eliminate government regulations and to allow private for-profit business to take over such services as public education, wastewater treatment plants, social security, Medicare, and prisons.  The argument is always the same “private business can do it more cost effectively than government.”

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Here is the catch or hypocrisy in the above argument.  It is only heard when businesses can easily make a profit.  When there is an easy market with lots of potential and lots of potential customers, business leaders want the government to stay out of the way.  However, when things turn sour and profits turn to losses or when the loss potential is high, business then want the government to step in.   The mantra that “No government is good government” soon turns to “We need help, or we will have to declare bankruptcy.”  Suddenly, the government that has been spurned and criticized for being too intrusive and for screwing up the equilibrium of the market is now called upon to help save private companies.  Here are some recent headlines that highlight this hypocrisy:

  • Airlines will receive billions of dollars in grants and loans to pay flight attendants, pilots, and other employees
  • Boeing still expects to get some help from the federal government
  • Trump administration eyes paying oil companies to keep crude in the ground
  • Coronavirus Stimulus Shows Big Government is Back
  • Washington is gripped in a bailout frenzy. Nearly every industry is sending its lobbyists to ask Congress for handouts
  • The coal industry wants permission to stop making payments to miners with black lung disease.
  • The hotel industry alone has requested a $150 billion bailout

For a complete list of companies or industries that have received government bailouts going back a number of years see ProPublica Bailout Tracker.  There are almost a thousand major corporations on this list.

During the recession of 2007 and 2008 government bailouts in the form of loans and outright grants were given to a wide range of American companies.  Many times the argument was heard that “They are too big to fail.”  Some Conservatives actually opposed these bailouts and some Democrats were in favor of them.

Now understand this please.  I am not necessarily in favor of letting all businesses fail.  The Austrian school of Economics would argue in favor of letting them fail.  They call this  “Creative Destruction.”

“According to Schumpeter (A leader in the school of Austrian Economics), the “gale of creative destruction” describes the “process of industrial mutation that incessantly revolutionizes the economic structure from within, incessantly destroying the old one, incessantly creating a new one”.  — Wikipedia

“Creative destruction is a process through which something new brings about the demise of whatever existed before it.  Old industries and firms, which are no longer profitable, close down enabling the resources (capital and labour) to move into more productive processes.” — Economics Help

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In other words, if Boeing and United Air and General Motors and all the other companies that want a bailout can’t hack it, them let them fail.  Let them declare bankruptcy and get out of the way so new more productive and more efficient firms can enter the marketplace.  This is a little like the Theory of Evolution in which the weaker species die out and the stronger species survive.   Thus, company bankruptcies and jobs lost will in the long run result in a more efficient industry.

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I am not against bailing some companies out.  The one thing I have learned in my years on this earth is that there are always exceptions to every rule.  There may be times when we should let businesses fail and there may be times to help them survive a rough patch.  I have no problems with the foregoing thoughts.  What I do have a problem with is the laissez faire argument that ends with “Leave us alone when we are making heaps of money but help us out when things turn bad.”  This is a deceitful and duplicitous argument which has led to an extreme gullibility on the part of many Americans.  Too many Americans now believe that “Government is the Problem” to quote Ronald Reagan.

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Here is a short list of how private business benefits from Government:

  • Copyright protection
  • Trademark protection
  • Patent Rights
  • Tax breaks for siting a new business
  • Police protection
  • Fire protection
  • Military protection for overseas business
  • Research and development studies
  • Mineral rights
  • Right of ways
  • Land ownership at sometimes exceptionally low prices
  • Tax concessions, such as exemptions, credits, or deferrals
  • Assumption of risk, such as loan guarantees.
  • Government procurement policies that pay more than the free-market price
  • Stock purchases that keep a company’s stock price higher than market levels
  • Subsidies for externalities that could not be recovered at competitive costs
  • Tariff protections
  • Subsidies for farmers, oil companies and many others
  • Job training programs for workers
  • Education programs for workers 

https___blogs-images.forbes.com_adamandrzejewski_files_2018_08_Forbes_USFarmRecipients-2Corporations are liars.  They say they want to live in a laissez faire environment.  They say they want fewer government regulations.  They say the government only interferes and adds no value to their products.  They say they don’t want the government telling them what to do.  The lie is that they do want Government involvement.  They want the government to bail them out of a situation when they will suffer losses or see lower profit margins.  They want the government to give them preferred bankruptcy conditions.  They want the government to side with them in labor-management disputes.  They want the government to help them out with all of the items on my list above.  Do some research.  Find out how many companies and industries get government handouts.  Check out Government Subsidies.

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Thus, the myth that organizations are self-regulating is the myth of the impossible.  You might as well believe in a perpetual motion machine.  It does not exist because it is impossible.  The Second Law of Thermodynamics states: “That there is a natural tendency of any isolated system to degenerate into a more disordered state.”  Thus any entity or organism or system needs energy from outside in order to maintain a state of equilibrium.  If the energy is less than needed, the entity will eventually degrade into a state of maximum entropy or disorder.”  For instance, when we die, we will degrade into dust.  If you do not periodically clean and organize your home, it will degrade into a garbage bin.  You cannot expect any system to maintain a steady state without input from outside.

The bottom line is that no corporation including illegal ones like drug cartels and the mafia can exist without independent inputs from outside their system.  Corporations are dependent on governments for their very survival.  Anyone who thinks that Corporate Capitalism could survive (much less thrive) without the input of Government is either stupid, naïve, or trying to sell you the Brooklyn Bridge.  It is about time for politicians and Americans to realize that business needs government and government needs business.

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Enough with these moronic arguments made by right wing protestors to do away with government.  A capitalistic economy without a government to monitor its excesses and to protect it from the vagaries of the marketplace would soon evolve into a system of chaos, lawlessness and monopolies that would be totally dysfunctional and destructive. The present emphasis on deregulation, privatization and less government has been taken too far and with too little appreciation of the need for government balance and oversight.  If we continue down this road, we will destroy our country and any vestige of the ideals of a free marketplace.  There is no such thing as free.  A free market requires policies, regulations, and rules.  There is no such thing as an economic system without some form of government to oversee, watch out for and protect its lawful interests.  Even illegal systems court the interests of governments albeit with bribes and threats rather than lobbyists and special interest groups.

Some of you might find the following article interesting.  It was published several years ago in the Harvard Business Review.

Does Privatization Serve the Public Interest? by John B. Goodman and Gary W. Loveman from the November-December 1991 Issue of Harvard Business Review.

 

 

 

 

 

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