Risk Rap

Rapping About a World at Risk

Chris Christie Blows Into Tampa

As a strengthening Hurricane Isaac takes aim on The Big Easy, seven years to the day of Katrina’s catastrophic devastation, an even bigger bag of wind is set to be unleashed tonight in Tampa as NJ Governor Chris Christie takes the podium as the GOP’s Presidential Convention keynote speaker.

For the past week Chris Christie has been the topic du jour of all the news shows. Morning Joe, Good Morning America, News 12 New Jersey and the front pages of the local press have paraded and fawned over the GOP’s ascending star as if he were the second coming of Abraham Lincoln. 

Journalists ask Christie if he intends to unleash his “fire and brimstone” Jersey hubris during his keynote speech. His tough talking, take no prisoners’ attitude seems to be all the rage in Republican Party circles these days. When GMA host George Stephanopoulos asked Christie if he represented the GOP mainstream Christie answered, “I’ve been to over thirty states since my election as Governor and everyone has welcomed me with open arms. With me you know who you’re buying.” Indeed Christie’s value as a political celebrity is rising. In his brief tenure as Governor he spends a lot of time jetting about the country, politicking for himself and the GOP. He’s been out raising funds for his reelection campaign and his coffers are overflowing with out of state money from his well heeled big time 1% contributors. Mr. Christie’s discerning buyers know what they are purchasing.  His hubris is a nice word for his arrogance and opacity that are the hallmark of the political deals he’s cutting for his out of state friends when he arrives back home in the Garden State.

Christie’s supporters love his tough talking style but his tough talk is nothing more than the arrogance of power, the political and economic elites employ to cover their back room deals. Christie’s tough talk is nothing more than a front to deflect. When a reporter asked Christie about failing water delivery infrastructure and its impact on public health, the tough talking Governor answered “Did I say on topic? Are you stupid? On topic, on topic. Next question,” Christie said to the reporter. “Thank you all very much and I’m sorry for the idiot over there.” Christie also scored big with anti-union and privatization of education supporters by calling public school teachers, “drug mules”.  Its a denigration unworthy of a governor and a damaging characterization of professionals working within a systemically challenged public school system.

Yeah Christie’s a real bad ass tough guy. When a Navy veteran asked for more details from Christie about the proposed merger between Rutgers Camden and Rowan University, he called the gentleman an idiot and used the power of his pulpit to brow beat and insult the man; who had every right as a citizen and taxpayer to receive a respectful reply to his question. This week Christie is crowing that he finally closed the Rutgers/Rowan deal with the bipartisan help of his lap dog democrat friends; as details concerning the financing and costs of the project remain obscure. It will be left to vigilant citizens to follow the money and see where and how state funds will flow into which private hands.

Yes Christie and his GOP supporters may love his tough talking but I suspect they pay a premium for the Christie brand because he knows when to keep his fat mouth shut. Sure their thankful when Christie refuses to shed any light on his business dealings and political moves. Christie’s less then transparent appointments of commissioners to the NJ Highland Commission allowed the governor to pack the oversight board with pro-development interests. The NJ Highlands is a sensitive watershed region for millions of state citizens. In a densely populated state like New Jersey, protection of water resources and environmental conservation should be priorities but out of state El Paso Corp has eminent domain to dramatically expand its pipeline through the ecologically sensitive area to deliver natural gas extracted from the Marcellus Shale deposit. Is this the fruit of Mr. Christie’s cross country road show to interested buyers?  Christie’s short term profit is New Jersey’s long term problem.

In another strange case of the bloviating governor going mute is his refusal to provide insights into his interests and practices in a privately run prison halfway house business that regularly receives state funded taxpayer money. Governor Christie, “the entrepreneur” catches a bad case of laryngitis when asked to provide insights into his cashing in on the privatization of the prison system and the rent seeking practice of his company using government funds to provide substandard service.

Yeah they’ll be a big wind blowing through Tampa tonight that will rival anything Isaac can throw at New Orleans. Christie will crow about the New Jersey miracle since his governorship began but statistics show that the state is lagging its Mid-Atlantic rivals. Facts and politicians seem to be two mutually exclusive matters so it shouldn’t present an obstacle for Christie to say or claim anything the tough talking Jersey Dough-boy claims as truth.

This is particularly true of a fact based, reality challenged Republican Party that believes there is no science to support climate change, the idea that public schools are a liberal conceit, the notion that women rape victims can’t get pregnant, progressives are enemies of the state and to preserve the constitution we must withhold the rights of some citizens. If you think that this is an unfair shot at the GOP mindset, did you see the GOP California poster of Chris Christie riding a surfboard? Talk about a problem with the concept of reality.

Music Selection: Beach Boys, Surfin Safari

Risk: truth, transparency, civil discourse, consensus

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August 28, 2012 Posted by | democrats, elections, labor, labor unions, republicans | , , , , , , , , , , , , , , , , , | Leave a comment

We Deserve Better (2): The Damnation of the Democrats

A few days after President Obama took office I remember him emerging from a meeting at the Pentagon.  The summit was arranged to brief the Commander In Chief on the progress of the wars and to assure the nation that the new president was in-sync with his generals and admirals charged with running the war.  Emerging from the highly publicized meeting America’s new war time president stated “as long as the generals take care of what they have to do, we’ll take care of what we have to do.”  I found the statement to be unsettling.  It implied that  the new administration would not alter the course set by the previous administration insuring that the inertia of Bush’s policies and strategies would continue unabated.  On another level Obama’s statement also seemed to suggest an abdication.  I get nervous to think that the Commander in Chief  has ceded civilian control of the greatest military force the world has ever known.  The decision to pursue war or enjoy peace is too delicate a matter to be left to the decisions of an entrenched military-industrial bureaucracy.  The abdication of assertive control, weather its born from the desire to get along, build consensus or a deep seated need for acceptance has been a disturbing custom of Obama’s presidency and the prevailing characteristic of the Democratic Party.

Obama’s easy surrender to established protocols, processes, precedents has been a hallmark of his presidency.  It exemplifies the failure of the Democratic Party’s oppositional legacy to Republican rule during the two previous Bush Administrations.  At every turn, the Democrats gave in to the Republican conservative legislative agenda with little or no dissent.  The Patriot Act, the blind march to  two unnecessary wars, the dismantling of government oversight and regulatory controls on business, the slavish submission to Republican led expenditures or tax cuts in service to corporate welfare and the tepid lip service to the struggle for social justice made the democrats complicit accomplices in America’s dramatic conservative swing.

The democrats failure as an oppositional force to counter the reactionary juggernaut of neo-conservatism has emboldened the reactionary impulses of the ruthless power elites.  Threatened by economic distress and disintegration of our political institutions, Americas ruling  plutocracy has spawned a malevolent Tea Party movement to crush any progressive populism that may arise to counteract their social position, economic power and political sovereignty. The democrats adamant refusal to stand firmly against the destructive impulses of xenophobia and virulent nationalism has allowed an ugly chorus of fear to become our new national anthem.  The resentful voices of suspicion, intolerance and  exclusion grows ever louder each day as emboldened Falangists and neo-fascists take center stage on a surreal  commercial production of American political theater.

In defense of President Obama his presidential campaign and his administration have expressed a deep desire to pursue a political consensus.  This sentiment is admirable and the ability to form a consensus is an absolute and critical virtue to the health of a democratic society.  The freedom to express differing opinions, voice dissent, air grievances, petition, ability to listen, interest to hear, converse, change opinions and assimilate these competing impulses to form a consensus to express the common will are what makes democracies imperfect yet the fairest expression of governance.  Mr. Obama has sought to pursue and build consensus with an opposition Republican Party that has been nothing short of obstructionist since the democrats assumed control of the Executive office.  Rush “Country Firster” Limbaugh said it best “I hope he fails” set the tone and sealed the intractability of Republicans and any possibility of bipartisan cooperation to deal with the critical issues confronting the nation.

Last summers spectacle of town meetings designed to initiate a national conversation on Health Care Reform devolved into a partisan shouting match and an opportunity for the formation of the Tea Party galvanized by propaganda about a socialist takeover of the economy, death panels, and the idea that President Obama was a fascist dictator.  At this point President Obama still took the opportunity to sit down with the leadership of the GOP in a televised discussion to initiate a dialog.  The Consensus Builder in Chief was rebuffed again.  The democrats responded by killing single-payer and backing down on universal health coverage.  The watered down health care reform bill accomplished an extension of coverage for more, but not all Americans and eliminated preexisting conditions as a disqualification for coverage while also extending the power of insurance companies by making it mandatory that all tax payers purchase health insurance.

This reform is not a significant ground breaking legislative event.  President Obama and the democrats should have recognized early on the inability to work a compromise with the obstructionists in the Republican Party.  As is the case with Cap and Trade legislation, rescinding  Don’t Ask Don’t Tell, ending the Iraq and Afghanistan war, financial services reform, TARP and the economic stimulus bill;  the GOP, “Party of No” has done everything in its power to derail the efforts of the democratic party to address the deep problems confronting America.  The Democratic Party should have leveraged its control of the legislative and executive branch of the Federal Government to push through a program for a new America.  The pressing circumstances of history required decisive leadership and bold ideas to address the complex problems confronting America.  FDR’s “New Deal” or Johnson’s “Great Society” were ideas accompanied by innovative legislation to solve systemic problems.  The democrats tepid response acquiesced to the conservative demands of the GOP.   The Blue Dog Democrats yelped and barked louder then any rabid GOP hound subverting a robust game changing legislative response to the problems confronting America.

The democrats would again demonstrate their timidity in how they responded to the Gulf Oil Spill.  If the free falling economy was the equivalent of economic Armageddon the Horizon Deep Water catastrophic oil spill was its environmental equivalent.  In each case President Obama fashioned piece meal responses designed not to offend “free market evangelists” for fear of being accused of over reaching.  Both instances provided opportunities to mobilize the nation and its significant resources in these titanic tests of national resolve.  In both instances the cojones challenged donkeys failed to seize the reins of state to wield its power.  I am still shocked by images of Jamie Dimon and Lloyd Blankfein pulling the strings on Timothy Geithner like a marionette to exact concessions during the banking crisis.  Or consider the high profile of BP CEO,  Tony “I want my life back” Hayward mounting a $50 million PR campaign to quell any concerns that the benevolence of corporate capitalism will eventually “set things right.”    The Republicans turned this into President Obama’s Katrina with Bobby “don’t spend no stim in Louisiana” Jindal taking the EPA to court for declaring a moratorium on deep water drilling.  And the fattest of fat cats Republican Mississippi Governor Haley “rebuild the casinos first” Barbour shaming Obama to spend a portion of his non- Martha Vineyard family vacation swimming in the pristine waters of the Gulf of Mexico.  It was a PR disaster for President Obama because he failed to act with the resolve or manner of a strong decisive leader.

But now as the midterms approach the democrats must answer to a crumbling alliance of constituencies that they have taken for granted and failed to help.  They are unable to see  constituents as anything other then a demographic voting block devoid of a face, personality or soul.  The democrats see stereotypes not people.  Labor unions are blue collar voters that now approximate 7% of registered voters.  This year the democratic controlled legislature failed to act on Card Check legislation that would protect the right of labor unions to vote and organize non-union companies.  Another important constituency of the Democratic Party is the LGBT community.  The military said it would comply with the decision of a California District Court  that overturned Don’t Ask, Don’t Tell.  Incredibly, President Obama’s Attorney General appealed the decision and asked the court to reinstate Don’t Ask, Don’t Tell.  Teacher unions are also big supporters of the Democratic Party, but many democrats support school vouchers and Charter Schools and seem unconcerned that financial and institutional support of public schools continues to erode.  Working class families and woman  are under severe distress as unemployment rates approach 10%, home foreclosures rise , spiraling cost of living increases spike, the cost of sending kids to college slip out of reach and a marked erosion in quality of life and expectations for a secure future and comfortable retirement evaporate.    The democrats did little to solve these pressing problems save the offer of cheap lip service that they understand their pain.  Charlie Rangel secure in the refuge of his four rent controlled apartments will not feel the cold experienced by a homeless mother and her children this winter;  nor will Hillary Clinton lose any sleep worrying about  deploying Chelsea to fight an incomprehensible war in Afghanistan.

This mid term election democratic candidates are running away from their unpopular president.  They will run on a platform of tax cuts and appear as local election district manifestations of gun toting patriotic Christophanies.  The poverty of a party with no conviction of principle is made plain.  Having no principles, Democrats have not offered a true alternative to reactionary Republicanism.  Nearsightedness has robbed them of a vision for a new republic.  They offer no demarcation with the broken policies that preceded their rule.  The hallmark of their governance has been the complete compromise with an recalcitrant opposition; content to administer a broken and corrupt apparatus rather then chart a new path.  The democrats remain shining examples of self serving politicians retuning to office  on mythical inertia to secure rent controlled apartments while public housing remains an endangered and dear want for many.  They believe themselves to be righteously led by the presiding shame of a president made possible by an epic civil rights struggle who cannot muster the fortitude or conviction to extend the equal right of marriage for one of his liberal constituencies.

We deserve better.

You tube Music Video: Les McCann, Eddie Harris, Compared to What

Risk: democracy, two party political system, liberalism

 

October 28, 2010 Posted by | Bush, conservatism, culture, democracy, democrats, environment, labor, LGBT, Obama, politics, recession, republicans, social justice, TARP, taxation, Tea Party, unemployment | , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , | 1 Comment

We Deserve Better (Part 1): Tea Party Fundamentalism

You hear it all the time.  All the candidates running for office are horrible.  The democrats and republicans both stink.  But this guy ain’t as bad as the other guy.  “He is the lesser of two evils”.  So we make our choice based on two evils.  We deserve more then the lesser of two evils.

When you think about it, a lesser evil is still an evil.  Even if its a lesser evil, the essence of its nature will soon enough turn on us as it seeks to actualize the essence of its nature.  It brings to mind Aesop’s Fable of the scorpion and frog.  The scorpion comes to a river that it can’t cross and calls on a passing frog to let it ride on its back to the other side of the river.  The frog was suspicious because it knew of the scorpions venomous nature but finally relented and let the scorpion mount its back for the ride across the river.  When they were halfway across the river scorpion delivered a fatal sting to the frog, dooming them both.   As the deadly venom took its hold, the frog asked the scorpion why it delivered its sting that would destroy them both?  The scorpion answered “it is my nature to sting.”  In a nutshell that is the nature of evil.  It will eventually deliver its sting.  So if we want to be safe we must avoid evil whenever we can.  This is most true when we are considering political candidates.

In many respects The Tea Party has done this country a favor.  They have energized the country by reigniting passion back into the political process.  Their raucous demonstrations and appeal to populist sentiments has served to remind America of its activist heritage and the many protest movements that have been central to the creation of our republic.  America, the great democratic experiment,  is the result of a history of struggle to claim and extend democratic rights and privileges to all citizens.  The great social justice struggles that fought for universal suffrage, women rights, living wages and labor laws, civil rights, environmental protection and antiwar movements are important chapters in America’s story that are often neglected and too often forgotten.  The Frederick Douglas admonition that “power concedes nothing without demand” is a keen wisdom that Tea Party activists have taken to heart.

The Tea Party has adamantly asserted that the elite class of professional politicians is beyond reformation.  The political elites cannot change their nature.  The Democrats and Republicans are well beyond redemption.   A more astute truism has never been spoken.  Here the Tea Party rhetoric diverges from their practice because they advocate support for GOP candidates.  So the first lesson we can learn from the Tea Party is to do what the Tea Party says “don’t trust either party,” not what they do, support the GOP.

I am convinced that both parties are totally bought and controlled by big money channeled through K Street lobbyists doing the bidding of large corporate interests. The final nail in the coffin was Citizens United v. Federal Election Commission.  This decision has altered the democratic scales of our Republic.  They have been dis proportionally tipped against the individual citizen.  The law of the land  has codified this inequity by protecting the right of deep pocketed corporate institutions to purchase the favor of political elites that rule America.  This will further strengthen the entrenched class of the two party monopoly.  This leaves the citizen to content themselves in the illusion that America is still a participatory democracy.  Dressing up in Minuteman costumes to pretend we are racing off to meet the dreaded enemies of our republic; and proclaiming an intention to water the tree of liberty with the blood of tyrants makes for amusing political theater in a land where  the value of one man one vote is severely distressed.

Here the mendacity of the Tea Party’s populism is made clear.  Tea Party candidates are the principal recipients of corporate money.  This money finances expensive media campaigns that flood the airways of critical electoral districts with advocacy ads  in support of Tea Party sponsored candidates.  This money is also used to attack liberal Democratic Party opponents.  The populist claims of the Tea Party are bankrupted by the heaps of corporate gold flowing into their campaign war chests.  This prompts conservatives to parrot “global warming is a liberal fiction” and “God placed oil on this earth for our use and its our divine right to extract it.”  They condemn government regulations as an assault on the economic liberties expressly protected in the Constitution.  It is as if they believed the  natural resource of the land was theirs and not the property of a faceless global corporate entity.

We can also be thankful to the Tea Party for revealing how the core values of conservatism are put into practice.  Property rights trump all rights.  Militarism and nationalism is our salvation.  Tolerance is the hallmark of ignorance.  Compromise and negotiation is a sign of weakness and consensus born from a democratic process must be repressed.   The stridency of their pronouncements seep with homophobia, Islamophobia and insistence on closing the southern border and eradicating illegals within our midst expresses deep cultural and racial fears born from an eroding cultural supremacy.

The geopolitical reality of the changing demographics of America’s ethnic and cultural landscape fuels a desire to arrest the democratic political process.  The populism of  the Tea Party is based on summoning the support of the declining population of Caucasian America.   They give voice to the anger of  the ebbing dominance of a demographic group;  screaming, crying and cursing its economic, political and cultural pain.  Barack Obama manifests the threat in a stark contrast of black and white.  He fuels the fear that gives pointed political focus to the racial aspects of Tea Party politics.  The nations first Afro-American President conveniently offers cover to an undercurrent of racial animus prevalent in Tea Party slogans and images.

The Tea Party’s professed love of the Constitution is disingenuous.  I ask where was their righteous outrage as Bush and the Republicans violated some of the basic tenants of the Constitution.  Most were out front cheering him and his fellow Republicans on.  Their support of positions that deny the basic civil rights to the LGBT community; the clamoring silence concerning violations of privacy rights under the Patriot Act; the failure to recognize religious freedom and the right of Muslims to build mosques; their practice of advocating the selection of circuit judges on the basis of ideological commitment to the GOP and the endorsement of torture and unlimited imprisonment without due process for enemy combatants in the war on terror are examples of their disdain for constitutional protections and basic human rights.

Fundamentalism is a strain of thought that is psychologically appealing in a complex world with no easy answers.  With fundamentalism the cosmology is all figured out.  There is no need to ask any questions because the answers are self evident truths that confirm the ideology before the question is asked.  The Tea Party raises the US Constitution with a fervor that rivals any Bible thumping Born Again Christian or Quran fueled Taliban operative.  I heard a Tea Party member once advance the idea that no new legislation can exceed 30 some odd pages in length because that was the length of the original US Constitution.  This thinking fetishizes the Constitution.  It believes the original document to be a holy tablet that the Founding Fathers brought down from the highest peak in the Appalachian Mountains.  It fails to take into account that the United States of 2010 is a vastly different place then it was when it emerged on the world scene as the first democratic republic in the late 18th Century.  This fundamentalism fails to remember that some of the original framers of the Constitution were slave holders, considered people property, disenfranchised women and perceived Native Americans as savages and worthy targets of genocide to annex their lands for the new and growing republic.   No the reality of the 21st century nation state and the rights and responsibilities of its citizens in an interconnected global ecosystem has evolved and is vastly different from the time when the Constitution was authored.  The foresighted crafters of our Constitution sat through a sweltering Philadelphia summer and sweated out this hollowed document  through intelligent compromise and a respect for consensus and the democratic process.  It is a vital lesson lost on Tea Party zealots content to wave copies of the document as some righteous proof of their love of country while they profane the spirit and enduring truths of the Constitutions essence.

The Tea Party’s political fundamentalism is mirrored in many respects by the religious fundamentalism held by many of its members.  If the Constitution anoints true believers with political righteousness, religious fundamentalism provides theological justification for a social agenda advanced with nasty intolerance, celebratory bigotry and cultural exclusion.  Religious fundamentalism has long been the cornerstone of the conservative movement.  They attack secularism as an obscene manifestation of the liberal welfare state.  It threatens civil liberties for everyone as it seeks to exclude the full rights citizenship  for all citizens.   It is a dangerous foil aimed at the heart of public education.  It is a tool employed by education reformers to underfund school programs, transfer monies to charter and private schools and transform humanities based curricula. It seeks to replace science in our public schools with stories from the Bible.  Evolution, natural selection, and big bang theories are replaced with creationism and  a 6,000 year old world that was created in 6 days.  Civil law and cultural mores will be guided and enforced by a moral code of prohibitions written 3,000 years ago to bring order to a nomadic tribal people assembling the nation of Israel.

The future competency of our nation and its ability to compete in a complex world is at stake.  America cannot hope to maintain its leadership in the world economy if it allows science to be politicized, its schools to crumble and a segment of its people not fully enfranchised with the rights and responsibilities of citizenship.  The greatest danger is the installation of a bifurcated society where well to do Judeo-Christian Caucasians are in a position to purchase the best education, access health care services and enjoy a full pallet of rights and freedoms not available to the growing stable of “others” lawfully excluded from their rightful inheritance of citizenship.

The Tea Party has crystallized the choice in the coming election.  Beware of the Bible thumper.  Beware of the Constitution waver.  The stridency of  Tea Party proponent’s and their religio-political fundamentalism may stand like “Old Hickory” on a timely quote from their sacred tomes but  resorting to such a defense reveals an inherent weakness in their argument.  No dialog, no consensus, no possibility of arriving at a democratic resolution to problems.  Tea Partyer’s may offer factual recitations from the books but no understanding and less truth can be found in pronouncement of their words.

You Tube Music Video: Art Tatum, Tea for Two

Risk: Constitution, secular democracy, education, civil rights

October 21, 2010 Posted by | Bible, Christianity, Civil Rights, class, culture, democracy, elections, government, labor, LGBT, politics, Quran, religion, republicans, social justice, Tea Party | , , , , , , , , , , , , , , , , , , , , , , , | 1 Comment

Regulation and Social Democracy

Last year during the height of the banking crisis I remember Larry Kudlow stating that the US market has a choice. It could pursue the EU model of high regulated markets producing low consistent returns or the American model of less regulation and volatile cycles of high risk and potentially higher returns. If the sole focus of government was the peace of mind and well being of investors Mr. Kudlow’s observation would be valid. Government however must consider a larger community of stakeholders in its scope of concern. Regulatory oversight, the harmony of capital and labor and the incubation of an economic culture that is favorable to and supportive of SMEs are the critical questions confronting all governments particularly those in developed economies.

The EU’s social democratic economic models embody the best and worst aspects of these issues. The social democratic state attempt to combine entrepreneurial impulses of capitalism with the management and administration of social welfare for all its citizens. Democratically “elected administrators” use the apparatus of the state to facilitate and manage the competing interests of capital and labor, free markets and regulation while seeking to balance an entrepreneurship friendly culture with long term sustainability.

Yesterday a toxic tsunami of aluminum sludge coated 16 square miles of pristine Hungarian countryside. It is a telling example of a severe risk event that confronts modern life. A lassiaz-faire approach to the event is not viable and offers no solace to those harmed by this assault. Communities cannot be asked to suffer a market response that promises to correct the problem of the next instance of this event. The construction of better berms and the implementation redundant protection devises to safeguard against this risk for the future is little compensation to those who were killed, injured and lost property or livelihoods as a result of MAL Zrt poor risk management practices.

Better to suffer a regulatory initiative that is based on an understanding of an economic ecosystem as complex and inhabited by competing interests of diverse stakeholders. The ecosystem including the shareholders of MAL Zrt, residents of the surrounding communities, plant workers (also community residents), small businesses (SME) and down stream farmers making a living on arable land and access to clean water all have a stake, albeit competing, in the safe operation of the plant. The possibility that the toxic sludge may find its way into the Danube poses a threat to the water supply of other eastern European nations. This elevates this catastrophic event to other EU jurisdictions. The inter-dependencies and interconnectedness of the pan-regional and larger global economy requires vigorous regulatory safeguards, mitigation initiatives and enforcement response.

The true cost of this event is potentially staggering. It supersedes the narrow interest and economic value of shareholders rights and capital invested in MAL Zrt. Bad economic behavior exemplified by BP’s Horizon Deepwater failure to install redundant protective devises to keep production costs to a minimum, ended up costing BP shareholders and Gulf Coast stakeholders dearly.

State intervention in markets and the reemergence of managed economies is a reality of the global economy. The “managed economy” of the Peoples Republic of China places western style “free market” economies at a disadvantage. The managers of the PRC efficiently deploy and manage capital, effect trade and market protections and scrupulously manage currency valuation. It has created enormous social wealth for China and has contributed to its rapid rise as a preeminent world power. China’s rise requires better coordination of private capital and government to marshal a competitive market response to the challenges posed by managed economies to free and open markets of western democracies. The massive pools of capital deployed by sovereign wealth funds of oil producing regencies and the growing insurgency and power of underground economic activity also pose significant challenges to the viability of unregulated markets.

America’s free market model that eschewed regulation since the 1980’s evolved into a mercantile economy with a weakened economic base. The outsourcing of manufacturing infrastructure loosened free market impulses that left in its place a debtor nation whose warped economy depended on housing/commercial real estate construction (collateral creation/securitization), credit marketing, retailing and a service sector that was designed to support the new economic paradigm. It is a model that has proven itself to be wasteful, costly and unsustainable.

Deregulation has led to the dislocation of the capital markets from the real economy. It has contributed to the massive disparities in social wealth and a crumbling infrastructure. Milton Friedman’s mistaken belief that free market impulses would preserve infrastructure investment has been proven incorrect. Ironically this has added to the government’s burden to provide social assistance to segments of the population disenfranchised from economic participation. Some believe that the basis for the prosecution of the wars in Iraq and Afghanistan are economic stimulus programs designed to keep the economy going due to the vacuum created by the loss of manufacturing.

China’s example nor the resurrection of the soviet socialist model is not a desirable alternative for western democratic capitalist societies. Centralized control and state economic planning is rife with inefficiencies. State run economies threatens liberty, stifles innovation and encumbers economic dynamism. The virtues of capitalism (innovation, dynamism, liberty) needs to be encouraged and blended into the new economic reality of a highly dependent and interconnected world that requires cooperation, coexistence, sustainability, fair asset valuation, and the equitable sharing of resource and responsibility. SME’s are at the forefront of innovation, value creation and dynamism and will play a leading role in the creation of new social-political values as sources of sustainable growth and wealth in the emerging economic paradigm.

You Tube Music Video: Franz Liszt, Hungarian Rhapsody No.2 Orchestra

Risk: regulatory, capitalism, sustainability

October 6, 2010 Posted by | democracy, economics, government, labor, politics, real estate, recession, regulatory, risk management, SME | , , , , , , , , , , , , , , , , , , , , , , , , , , | Leave a comment

Honda Motors Practices Enlightened Capitalism

Amidst all the layoffs, business closures and shutdowns the hard edge of capitalism is a painful experience far too many people are forced to endure. During times of plenty, the relationship of labor and capital is harmonious and symbiotic. Both parties recognize the value that each bring to the corporate community and each parties enrichment and well being is served by the degree of harmony present in that relationship. During down business cycles management may resort to layoffs to preserve the enterprise. Unfortunately this often causes resentments and hard feelings on the part of workers who have lost the means of earning a living. When workers return to their jobs this can cause problems and hurt an affirmative corporate culture that is critical to maintaining a sustainable business enterprise.

In the face of the meltdown in the automobile manufacturing sector, Honda Motors is one of a very select few that is not resorting to layoffs. Honda Motors known for product quality and leadership in product innovation and business processes is also highly respected for its treatment of employees. Honda Motors places great emphasis on the creation and maintenance of an affirmative corporate culture to sustain profitability and market leadership.

Honda Motors decision to restructure the work force, and give workers a period of paid leave until business conditions improve speaks volumes about how management respects and values the contribution labor makes to the long term sustainability of the enterprise. Any remuneration workers receive during the leave will be paid back to the company with unpaid overtime when the workers return to the production line.

The value of good will on the Honda Motor balance sheet has increased exponentially. The sustainability of an affirmative corporate culture will drive profitability, product innovation and market leadership for the many years to come.

We applaud Honda Motors for this innovative and enlightened response to the current market challenges.

You Tube Video: June Carter Cash & Johnny Cash, One Piece At A Time

Risk: sustainability, labor relations, corporate culture

February 3, 2009 Posted by | culture, labor, reputation, risk management, sustainability | , , , , , , | Leave a comment