Despite the jocular admonition from “Jazz” who commented on my last post that I might be listed as a subversive under Federal terrorism laws; I am still here in sunny Phoenix at my computer. I joined TMV only a few months ago after enough positive reinforcement from TMV’s Editor in Chief, Joe Gandelman and a few other long-time contributors and editors. (I don’t want to set up my own blog as I don’t have the time and my ego doesn’t demand it either.) I had been reading TMV for over a year, having discovered TMV by means of a daily link from “Real Clear Politics.” I also regularly read “The New York Times,” “Business Week,” “The Arizona Republic,” and a few other online news sources.
I am honored to be part of a really intelligent, thoughtful, varied, and opinionated group of regular contributors and bloggers who post on TMV from whom any person could be refreshingly enlightened. I have been educated by some recent posts on healthcare reform, particularly (1) the 5/22/09 TMV post of the interview by Bill Steigerwald of Regina Herzlinger, (2) the 5-part series by Ned Lips (May 12-19, 2009) outlining some important healthcare reforms that have not been fully discussed, and (3) the earlier 3/26/09 TMV Healthcare Post by Patrick Edaburn and its many smart reader comments. TMV contributors bring up points often lost in the din of most Internet blogs who are addicted to 24/7 info-news entertainment. (I will continue to explore some healthcare reform options and transportation infrastructure ideas in my future posts.)
By and large, most TMV reader comments are enlightening and they are not just predictable rants from either the left or right. (Many reader comments on other secondary or more popular Internet news and editorial sites are depressingly ignorant, profane, or unenlightening.) Some TMV commentators should even try their hand at complete “Guest” postings (the way I originally started) because some of their ideas are good seminal points that deserve more analysis and discussion. Of course, other TMV bloggers and contributors are also regular commentators (openly or in disguise) and they help build a lively and intelligent debate on a daily basis.
I have had at least 3 or 4 posts that mentioned the U.S. political and economic system is an oligarchy or plutocracy (essentially the same meaning today.) Some readers have taken this as a negative and a complete disillusionment as part of my world view. That’s not really the case. I realized many years ago that reality and an ideal world are sometimes far apart, but that is not a reason to give up trying for a better reality. However, you have to work with the “hand that you are dealt” and try to see how the major and influential players and decision-makers view the world. If you cannot communicate with them effectively and convince them on whatever grounds possible, any move towards a better reality is destined to fail.
Uncontrolled and unregulated capitalism inevitably moves towards monopolies. Some business models work best when they are very large and competition is limited. However I have yet to see any rational business model work best when it is a complete monopoly, except for those who control and own it, and who reap all the profits from its activities.
Whereas in the past we saw serious antitrust, consumer and regulatory laws passed and enforced after prior economic collapses, it is disheartening that we are seeing so little governmental actions in theose areas during this current economic debacle. Instead, the Obama Administration has frequently joined the Bush Administration (with bi-partisan tacit and overt Congressional support) that some private entities are “too big to fail” as they are afraid of the possible consequences of a different world if they do. I am more concerned that these “too big to fail” entities have caused enough harm to most families and other business enterprises across the country and globe. It would be a refreshing change, no matter how difficult the transition for some, that their elimination or bankruptcy (particularly some in the financial and banking sectors) might be in the country’s and humanity’s overall best interests. In the current political and economic situation, the Obama Administration may have decided that it can pick so many fights in the first 4 years when its overarching goal is to get reelected in 2012 and secondarily not to lose its democratic majority in 2010.
Representational democracies work best in fairly small, uniform and cohesive countries such as Western Europe and a few in Asia and the Americas. A robust and regulated capitalistic system ultimately works best under the maximum of personal freedom offered by responsible republics. Countries that are too diverse, divided, poor or large, struggle with balancing a vigorous free-market economic system and a limited democratic governing system. India is proving to be a great hope to the world, and also Brazil and Indonesia, but all 3 countries happen to have significant numbers of well-educated people who are essential to their current and long-term success. However, the extreme cultural, ethnic, religious and economic differences in some will be major obstacles to their development – but I remain very hopeful for all 3 and a number of other developing countries around the world.
The U.S. is one of the world’s oldest continuous constitutional democracies and capitalist systems. In some ways our business and governmental models have ossified over the past several decades. We have lost some of our competitive advantages as we have become collectively lazy, greedy and cheap with respect to the common good and best long-term national interests. Intense partisanship and the promotion of the most extreme idiotic policies from both the right and left have rendered much of our entire culture hostage to the whims and rants of the few.
There is nothing wrong or unfair with accumulating wealth from hard work, creativity, inventions, and cooperating with others. However every large fortune comes with ethical and moral imperatives, as there are similar ones for those individuals with particular talents and intelligence. Simultaneously we should not view those who are far less endowed with intelligence, opportunities or wealth with condescension. We must try to improve the overall fairness in our many economic and social playing fields. We must also realize that many people will not exceed in most fields of endeavor. However, they are still our fellow human beings deserving of respect and protection, and their children are an untapped resource for everyone in society. In a crass sense, they are still consumers, thus they should be part of our overall economy as best they can and as best we can encourage by means of inclusive political, economic and social laws and policies.
Many of our governmental and economic policies over the past 30 years have unnecessarily enriched the wealthiest 5% of Americans at the expense of everyone else. Decades of stagnant wages have still produced the highest productivity (and lowest vacation and sick leave options and most inefficient healthcare system) on the planet. When I refer to the wealthiest of American, it is mix of accumulated wealth and assets, and current incomes. We have known about the widening disparity in incomes and stagnant growth for at least 10 years, but everyone ignored it. In fact, we still are pursuing those policies at the highest levels of our government.
The few wealthy people that bother me the most are those who have the delusion that they made it completely on their own, ergo all the money is theirs to keep and they owe no one else or society anything in return. I choke on that sanctimonious hypocrisy. I have been involved in 4 business start-up and advised dozens more small to large private enterprises, and I can tell you that there are hundreds of people who make any person’s success a reality.
Certainly one’s parents, family and friends are often people who provide education, money and support for new ideas and ventures. They also provide connections to other people who can provide advice, customers and money as well. Most importantly every business depends upon customers – those valuable people who trust and believe in a new venture’s products or services, and stay with that venture despite alternatives and competitor offers. Then for any business, there are its employees, independent contractors, accountants, lawyers and other advisers who are additional keys to its eventual success.
Finally, there is our society and country as a whole that has determined and still determines the success of individuals and businesses in the U.S. By and large, this country has provided the best environment in the world to start and grow a business due to its (1) past support for all levels of education, transportation infrastructure, science and technology, (2) a predictable and regulated marketplace, tax system, and common currency, and (3) the overall size and education level of its consumer market. The U.S. is a country full of natural resources, and a long history of competent government in all branches and at all levels that looked after the needs of business and commerce. It also has enough collective wealth within its continually growing population to be clients of many new businesses.
For those wealthy arrogant imbeciles who believe they are “self-made men” I have summarized some of the principle arguments to the contrary. If you cannot acknowledge these arguments, then possibly the only remaining argument is a hard punch in the face as an alternative to a one-time 100% confiscatory tax on all excessive accumulated wealth.
Most global religious traditions and humanistic ideals hold that a person’s neighbor is actually every other human being on the planet. Furthermore, from those with much wealth or many talents, much is expected for the benefit of all humanity and the planet as a whole. Therefore, for the wealthiest people to only care about further accumulations of wealth to the detriment of everyone and everything else is simply greedy, myopic, unethical, immoral, and pretty sad. However, the sins of greed, avarice, narcissism, sloth, and others, have been with us since recorded history and our earliest religions.
If a person cannot be convinced by another person or a few others of his unethical or immoral ways, it may require a larger number of people confronting that person. In the case of extremely large and powerful wealthy people or entities, it may require a countervailing public outcry, often through our government. If that entity is part of the problem, then by means or the ballot box, or in the case of deaf or tyrannical regimes, then unfortunately violent overthrow of the status quo might be the only remaining option. Fortunately, the U.S. still offers the means of the ballot box as one of the safest yet most effective means of long-term political, economic and social change.
What was sad in the recent California special elections over 5 ballot measures proposed by the incompetent legislature with respect to the state’s dismally dysfunctional tax and financial situation, only about 2.6 million voters out of 17.3 million registered, bothered to go to the polls. More people voted in the recent “American Idol” TV talent search competition from this state of nearly 40 million inhabitants, than bothered to take an interest in its government or economy, both in extremely bad shape due to the recent deep recession, and as a result of decades of mismanagement and voter neglect. California is often the harbinger of things to come with respect to the rest of the U.S. by the sheer size of its economic, cultural and population weight globally and nationally. Only a dangerous mix of ignorance, laziness, and narcissism by all people from all economic, social and political backgrounds, resulted in California being where it is today, and the same may hold true for the country at large.
If most people are angered by the government’s strong tilt towards the wealthiest of Americans who are its greatest campaign contributors and benefactors of laws and policies enacted, then why keep voting those same representatives? Why not form a third party if both Republicans and Democrats have shown to be mere spokesmen of the status quo? Ultimately all politics is local and anyone can get involved. It does require missing hours of mindless TV, Internet surfing, cell phone and texting additions, and a variety of other narcissistic, lazy and worthless activities with which we fill our days. In the end we do not regret those things that we have tried but failed. Instead we regret most the things we never even attempted. So my advice to everyone is (1) get involved and (2) give a damn.
5/26/09 by Marc Pascal in Phoenix, AZ. So readers might know my particular perspective on these issues, here’s a short summary: My annual income over the past 20 years has varied greatly. I have never been “poor” but I have never been part of the wealthiest 1 to 5 percent of Americans either. My parents were both well educated but not wealthy by any stretch of the imagination. I was fortunate to attend college and graduate schools principally on academic scholarships. Some of my personal investments paid off handsomely and in others I was lucky to break even. I am fortunate to have a beautiful, young, loving, smart, hard-working and frugal wife and we have only 1 child. We have no real estate mortgages, and no student, auto or credit cards debts. We have some small savings at this time (but far less than we had just a few years ago). We have often chosen to travel with our extra money rather than accumulate material things. Great vacations and what we learn from them stay with us for a lifetime; all the material stuff is eventually worthless. Our other financially wasteful habits are infrequently (1) attending cultural and sporting events, classical music concerts, art museums, and movies, (2) buying and drinking red wines (all between $5 and $10 a bottle) and (3) my personal blogging on TMV.