Risk Rap

Rapping About a World at Risk

Sustainable Economics

We have put our good mother through a lot over the past few million years. Ever since we walked out of the great rift the biospheres dominant species has really left a mark. I know that mark is but a tiny spec on the archaeological record of the earth which spans a few billion years but our impact is unmistakable.
 
I guess it started with the invention of hand tools, fire, wheels, shelter construction, water cultivation and agriculture. You can’t forget hunting in packs, weaponry, domestication of animals, speech, art and writing. A consciousness of a portfolio of skills, specialization, division of labor and the ability to discern exchange value within the community birthed a notion of governance. Our social nature was crowned with our ability to transmit craft and knowledge to successive generations, assuring continuity and cohesion with a common history and a well articulated cosmology. Put it all together and I think you got your basic modern Homo sapien.
Oh yeah, we also developed a psychology, an ego, that incorporates the primacy of ourselves and our selfish needs. It rationalizes and guides our interactions with nature, transforming the intention of our labor into a transaction that alters the conditions of the environment. It also serves as indisputable empirical evidence of the master species, elevated above all others as time marks the progress and dominion of the human race.
 
Our dominion has been codified into our sacred literature. Our creation stories and cosmic mission statements expressly state to exercise our dominion over nature, to propagate the species and to be fruitful and multiply. The screaming unencumbered id, left to its own devises, unchecked in the grand supermarket. We human’s have succeeded beyond our wildest expectations and the species continues to be fruitful and multiplying. 
 
We sojourn on, notching the ladder of history with marks of our progression through the ages. Along the way we Cro-Magnons expropriated the Neanderthals and moved into their Mediterranean digs complete with fire pits, burial chambers and the best take on modern art until Picasso came along.
 
I guess that’s the point. Our survival comes at the expense of other creatures and things. I’m no Malthusian, but Tom Friedman’s flat world is getting crowded.    And as we celebrate the 44th Earth Day a midst the greatest die off of species since mankind coronated himself as master and commander of all things earth; it may be time to consider how our dominion is hampering the well being of the lesser flora and fauna kingdoms and what we can do to begin the practice of a more sustainable economics.
 
When I look at Las Vegas, I behold a garish mecca of capitalism on steroids.  I’m overwhelmed by the banality of the the things we so highly esteem. A community venerated and propped up on the foundation of vice, hedonism and the radical pursuit of money. Unbridled development of a crystal neon city constructed in the middle of a desert, recklessly consumes water and energy resources and misdirects human capital to maintain the facade of an unsustainable economy. 
 
Phoenix poses the same paradox. Darling child of the credit boom, Phoenix is a city consuming itself. The rising threat of climate change, blistering heat, dwindling water supplies and raging haboobs would give any urban planner reason to pause. A bustling city of many millions of striving citizens consuming energy, water and human capital built on the unsustainable foundation of excessive consumption and an unrealistic valuation of the capital required to maintain it. 
 
The explosion of fracking natural gas deposits in the Marcellus Shale formation is another example of sacrificing long term sustainability for the immediacy of shareholder returns. The Marcellus Deposit has proven reserves that only last a decade. As evidenced by the hyper development occurring in North Dakota,  economies tied to resource extraction are prone to experience classic boom bust cycles. During boom times all is well. But the good times don’t last all that long and communities are left in the wake of the bust cycle to deal with the aftermath. 
 
The Keystone XL Pipeline and the rapid expansion of the LNG extraction industries are being touted as the foundation of American energy independence. But this energy resource extracts a high cost on the land and its natural bounty. It poses significant risk to water aquifers, air quality, wildlife and the storage of waste-water byproducts will present long term remediation challenges to communities for many decades after the last well is capped.
 
Our new found fortune of LNG comes with a significant opportunity cost to develop alternative energy sources as it continues to tether our economic dependence on a dwindling supply of fossil fuels. Perpetuating this dependence also requires us to expend huge sums of money on the military. The political arrhythmia in the Ukraine and the keen interest of the United States has much to do with the changing political economy of fossil fuels and the protection and accession of markets.
 
Sustainability requires a new approach to the emerging realities of the global political economy. Recognition that competing interests bring important capital to the table, and that all must be recognized and fully valued in the new algorithms of sustainability is the keystone and pipeline of sustainability. The practice of unfettered development is unsustainable. Regulation, arbitration and revitalization cannot be sacrificed at the altar of laissez-faire politics that only serves to widen the wealth gap at tremendous social cost. The politicization of economic policy cannot continue to be beholden to rampant monetization. Sustainability is the creation of long term value for a diverse community of stakeholders. It needs to become our guiding mantra as the global population approaches 8 billion souls. Happy Earth Day.

 

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Risk: fracking, political, water, air, war, opportunity cost, renewal clean energy, climate change

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April 22, 2014 Posted by | cities, commodities, community, compliance, corporate social responsibility, ecological, history, politics, psychology, regulatory, sustainability | , , , , , , , , | 1 Comment

Convergence and Innovation Inhibitors: 011110

As we start the second decade of the new millennium, innovation is understood as a critical driver to overcome the economic malaise plaguing the global economy. Economic stasis and political factionalism has made it increasingly evident that faltering economic and social institutions cry out for sweeping reform. These reforms can only be achieved with innovative approaches in policy and practice. Innovation is realized by giving flight to uninhibited thought and the clear application of ideas with decisive action. Though most agree that we badly need reform, we remain at painful odds as to what those reforms should be and how to implement them. The destructive legislative debates on health care and the ugly political theater of town meetings that occurred in the United States over the summer accomplished little in regards to meaningful reform. The exercises  only served to drive a deepening wedge into the ability of a democratic culture to form a transformative consensus.

Our society is a complex ecosystem comprised of many competing interests. The classic definition of politics, “the means to decide how limited resources are allocated to disparate interests” is clearly a truism that must be applied if we are to realize the reform that we desperately need. In a post scarcity society that definition may seem a bit crude or antiquated. America’s history is marked by a culture of innovation and the incubation of industry. Innovation and its commercial expression in entrepreneurialism is a national asset that tempers the hard edges of stringent allocation or resources and has been the source of our great social wealth. Democracies continually require citizens to arbitrate how competing interests are reconciled and converge. As a self professed democracy the United States must break down the barriers that inhibit innovation by confronting the challenges posed by convergence.

Convergence has been the watch word in the tech industry for the past few years. Convergence aggregates, joins and aligns discreet trends, competencies, technologies and missions to spawn innovation and progress. Masters of business innovation understand that a precondition of convergence is the ability to collaborate. Collaboration requires extended conversations and dialog to understand how competing interests can be reconciled and brought together so that innovation and progress can be achieved. Marketeers invent neologisms like coopetition to brand the idea and lend heft to its thrust. We believe that innovation borne from convergence is the path to rebuild our economy, heal cultural wounds and take a step toward political maturity the United States needs to sustain the great experiment of our democratic republic.

With that in mind we offer a list that outlines the inhibitors to innovation. It is hoped that our nations leaders and people can begin an earnest conversation to address these barriers to growth. Maybe I’m wrong with offering this modest list but I remain willing to discuss it, hopeful that people of good will with a different viewpoint will be open to correct my thinking and contribute to my enlightenment.

1. War: War is inherently wasteful. The current wars in Iraq and Afghanistan are grievous examples of waste and national distraction that hampers the United States economic recovery. At an  Ecumenical Memorial Service held at Yankee Stadium following the 9/11 terror attacks  a Buddhist Monk stated that  he believed “it was wiser to drop refrigerators on Afghanistan then bombs”.  Almost a decade later and two wars on I can’t help but to think what a meager $100 billion investment in Afghanistan would have returned to the United States tax payers.  More importantly it would have shown the world that above all else America values the sanctity and preservation of life.  It would have also minimized the rising toll of casualties of both citizens and soldiers.   We developed some great bunker buster bombs but we can’t figure out a way to stop a suicide bomber with exploding underpants.  We succeeded in stirring up a hornets nest of angry insurgents and failed to build innovative pathways to peace with steadfast bridges to secure allies and pacify combatants.

2. Politics: To be sure politics is omnipresent  but the politicization of faith institutions and government functions is a great separator of people. When politics infects faith institutions their ability to breach the social divide and  join people together is seriously compromised or downright destructive. The Catholic Church’s practice of denying the Eucharist to parishioners based on political biases of the communicant places politics at the center of the Lords alter.  The recent occurrences of  radical Islamists burning down Christian Churches in Malaysia  is tragically ironic.  The violence, a response to the Christians appropriation of the word Allah as a name for God; is  a violent rejection of  language convergence of two great faith traditions.  It would seem that unity is a  threat that God cannot abide and is a growing threat that must be abolished.  In the secular world government agencies  were instructed to withhold scientific climate change research of the National Science Foundation because it did not conform with the politics of the party in power.  The extent of the politicization of the judicial branch of government under the Bush Administration was a seditious move worthy of dictatorships.  Innovative application of constitutional law in defense of civil liberties is one of the greatest challenges the war on terror poses to this country.  The creation of kangaroo courts to support the politics of the ruling party would undermine our system of justice.  It would  transform our judiciary  into a repressive apparatus of the state, our laws into  stale dogmas ill suited to meet the legal challenges  of our time and a  justice system that is indistinguishable from the justice offered by our opponents.

3. Ideology: Only good ideas need apply. Deng Xiaoping said it best “does it matter if its a communist or capitalist mouse trap. The question is, does it catch mice?” Seeing this as a threat, Mao Zedong unleashed the cultural revolution and routed the capitalist roaders as a threat to the Great Proletarian Revolution. After the death of Mao, Deng would be rehabilitated and play a key role in China’s adoption of a market economy and its current ascendancy as a world economic power.  In my mind there is a striking resemblance to the debate about heath care.  Socialized medicine is bad.  Do you want to turn into France?  Canadian health care is too expensive.  UK heath care system is overloaded and can’t cope with demand.   These problems would be solved however after the death panels had a chance to meet  and decide who shall live and who must walk the plank.

4. Entrenched Commercial Interests: Though we are ardent believers in capitalism as an engine of innovation the dictatorship of ROI, entrenched concentrations of capital and an unwillingness or inability to adopt longer term investment horizons hamper innovation. The failure of the United States automobile industry to develop fuel efficient vehicles is a good example of market intransigence. The development of junk bonds by Michael Milken and Drexel Burnham Lambert dismantled the manufacturing base of the US economy accelerated the countries decline as a net exporter of products creating the foundation of a debtor nation. During the presidency of Jimmy Carter solar panels were installed on the roof of the White House. The succeeding administration had them removed. Imagine where the alternative energy industry would be today had it developed this leading edge idea and capitalized on this first mover advantage.

5. Unbridled free markets: The economic carnage of the banking meltdown is a startling example of the excesses the pursuit of profit will create. The boom in commercial and residential real estate construction created massive stocks of unused inventories that misdirected and wasted enormous resource. The energy and capital expended on these wasteful endeavors misdirected funds and created huge social hazards that requires massive amounts of capital to mitigate. Also worth mention is the development of video gaming. Lots of energy and creativity is being expended on the best techno music to use while your Mafia Avatar bashes open the head of your opponent with a baseball bat. We are not suggesting censorship or a prohibition of video games nor centralized economic planning. Its a compensation and social value issue.  Perhaps a communicants denial of participation at the Lord’s Table lead them to leave the church and miss the message about social values.

6. Technology: It may seem odd to include technology as an inhibitor to innovation but technology for technology sake may inhibit the development of innovative applications solutions that are not technological in nature. The technorati of the world is transforming technology into a religion. Deprived of its human dimension it can become a dogma that grows in an antagonistic relationship with its human masters. The United States continues to trumpet its technological prowess as the deciding factors in its war in Afghanistan. But that paradigm was explored during the war in Viet Nam where pungi sticks ultimately trumped napalm bombs. The power of an idea and how it connects and motivates people is force that is mightier then the sword.

7. Fundamentalism: The Pharisees once asked Jesus, “is it lawful to heal on the sabbath?” Jesus answered that it was always the right time to heal those who are sick. The world recoils in horror at the capacity for destruction fundamentalism regularly visits upon the world. The denial of equal civil rights to LGBT people creates a  bifurcated system of citizenship.  It is an ugly stain on our democratic heritage.  The gravest peril to democracy is the abridgment and denial of civil rights to any group of citizens. Democracy necessitates that all republicans enjoy equal access and rights in order for it to function. The denial of that right based on a fundamentalist reading of religious scriptures makes it particularly abhorrent because civil rights of citizens in a secular democracy is not an issue that is decided by theologians or the adherents to a particular theology.

Tolerance and consensus are both antithetical to the precepts of fundamentalism. Fundamentalism is not the sole province of religion. It has its secular and ideological adherents as well. Fundamentalism is a pillar of dictatorship; either of a political or theocratic nature both are enemies of secular democracy. Secular democracies require tolerance to respect the diverse ideas and competing viewpoints require in the democratic process. Secular democracies require the trust to converse and hash out the best ideas that serve the greatest good. This is only possible if consensus can be achieved. It is how “out of many becomes one”. It is the true genius of America. It is a worthy innovation of governance that every freedom loving citizen should jealously guard and consciously pursue.

8.  Public Education:  The public education system that the United States built is the true arsenal of democracy and the nations source of wealth and its many contributions it has made to the world.  Without the vast network of learning institutions built and supported by successive generations of Americans the worlds great experiment in representative democracy would have long ago perished.   The public schools sole charter is to create an enlightened citizenship with the skills to discuss, discern and decide in a civil and constructive manner the ever evolving dialectic of a democratic consensus placed at the service of the republic.  It is one of the true geniuses of America and remains her enduring strength.

Today public schools are under attack by forces whose agendas are the pursuit of parochial goals that first and foremost seek their enrichment and interests at the expense of the greatest good of the republic.  The charter school movement is a trend that threatens the public school system by privatizing some of the systems assets and draining away much needed resource and financial support.  It forces public schools to dispense with curriculum offerings like music and arts, sports programs and civic excursions that will convey an understanding of how institutions  interact and support the greater social good. This aspect of the educational experience is supplanted by an exacting examination regime that destroys the love of learning.  Secular learning is also being threatened through the introduction of theological precepts like creationism into the science curriculum of public schools.  Religion and faith are important precepts to offer in a public educational curriculum;  however theology that masquerades  as   science  is an ideological stricture that has no place in public schools.    These  trends are pose great challenges to the  public  schools mission to form enlightened citizens free to think and free to act in the sole service of liberty and participatory democracy.  Innovation and progress is in danger of becoming a secular sin a disease of the soul that needs to be eradicated from the public schools as its threatens to infect the greater body politic.

You Tube Music Video:  Louis Armstrong, I Get Ideas

Risk: innovation, convergence, progress, tolerance

January 11, 2010 Posted by | 9/11, business, Carter, China, Christianity, culture, democracy, economics, faith, history, institutional, manufacturing, Muslim, politics, real estate, recession, regulatory, sustainability, terrorism, war | , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , | Leave a comment

Blog Action Day: The Jersey Tomato is Hurtin Too!

jersey tomatoThis summer Georgia and other southwestern states emerged from their prolonged drought by experiencing the nightmare of devastating floods.  It was shocking to see how volatile and changeable the climate of that region was becoming.  I counted my blessings that I lived in New Jersey because our moderate climate saved us from living through those types of extreme weather events.

During the summer my wife and I took a trip to Northern California.  We hiked through the dwindling Redwood forests and scaled peaks in Lassen Volcano National Park.   It’s beauty was at times overwhelming.  One afternoon we took a dip in the pristine Yuba River but we had to cut that short due to the raging 49er fire that destroyed over 50 homes and businesses.  We were happy to return home to New Jersey where the problems posed by wild fires and exceedingly dry climate are not that  great a threat.

In addition to a temperate climate another benefit New Jersey offers its residents is the famous Jersey Tomato.  Those with discerning pallets eagerly await the end of summer when farmers begin the harvest and bring to market the agricultural crown jewel of the Garden State, our beloved Jersey Tomato.  It is big, juicy and luscious.  It doesn’t require a sandwich or Hogi to sit upon.  Its is great with a touch of basil leaf or sitting a top a slice of fresh mootz, that Jersey slang for mozzarella cheese.  You can make an entire meal of it if you add some crusty Hoboken brick oven bread.  Yes, Jersey at its culinary lip smacking best.

One Saturday morning my wife returned from Abma’s Farm in Wycoff with the devastating news that their would be no Jersey Tomatoes this year.  Unusually excessive rainfall across the region had destroyed much of the crop.  We would have to do without our much looked forward to annual treat.  I was crushed.  I started to do a bit of research into this degustibus disaster.

I discovered that Jersey farmers are coping with heavy crop losses after steady summer rains saturated fields, creating an environment ripe for overgrown weeds, rot and disease.   The downpours damaged crops, from tomatoes, green bell peppers and corn, to barley, peaches and watermelon, decimating whole crops or severely reducing yield.

Wilfred Shamlin of The Courier Post reported on the economic impact the unusual weather had on some of the states farmers.  His report is an important anecdotal record of the economic distress changing weather patterns can cause.  The observations and quotes from farmers directly effected by this years extreme weather change is an important testimony on the risk of climate change and its impact on crop yields and economic solvency of small farmers agricultural businesses.

“The rains have just killed me this year,” said Tucker Gant, 51, a vegetable and fruit farmer in Elk, who estimates his total losses this year at nearly $220,000.

In Mullica Hill, Fred Grasso, 52, said late frost damaged his peaches and rot ran through his tomatoes, green bell peppers, zucchini and watermelon.  “Nobody has ever seen rain as drastic as this year, even talking to old-time farmers,” said Grasso, a third-generation farmer who estimates losses so far at roughly $50,000.

“Weeds are a big issue, especially in a wet year. When it’s time to cultivate, you can’t and when you finally get in there and cultivate, and it rains day after day, weeds set in and reroot because of the moisture,” Grasso said.  “Weeds steal nutrients from crops, grow tall and block out sunlight, and prevent plants from drying out after rainfall. And constant rain creates problem because the weeds grow faster and herbicides get washed away before they work.”

“It’s never been that bad as far as I can remember,” said Gant, pointing to water pooling in a field as he drove his pickup truck along a bumpy dirt trail toward 35 acres of barley overrun by tall weeds. “I have never seen water lay there more than two days. It should have been harvested, but you can’t harvest weeds taller than barley.”  Blueberry and peaches thrived in the wet weather but the same disease responsible for the Irish potato famine attacked South Jersey’s tomato crops.

“Farmers’ yields will be down this year because a lot of fruit out there wasn’t able to be marketed,” said Michelle Casella, an agricultural agent for Rutgers Cooperative Extension for Gloucester County.   Gov. Jon S. Corzine has requested that 15 counties be declared disaster areas by the U.S. Secretary of Agriculture after rain, hail, wind and even a tornado caused crop and property damage across the state. The designation would allow farmers with severe weather-related losses to apply for emergency low-interest loans.

This year’s hay crop was such poor quality that Gant marked down the price for landscapers, making 25 cents profit per bale rather than $1.50.   Though struggling, Gant and Grasso are bent on persevering as operating costs continue to climb. Gant’s losses include $30,000 on bales of straw for mom-and-pop stores that order 15,000 bales and sell it as decoration during the holidays. He grew enough straw to make 10,000 bales but he had to buy the remaining 5,000 bales from a neighboring farmer. Crop losses have cut into profits that the Gant and the Grasso family normally would have invested back into the farm. “We have cut every corner we can without hurting the business itself,” Grasso said. “We’re at just about the limit where we can’t cut anymore. I’m trying to conserve.”

Gant said he has depleted his retirement savings and supplements his income by working three days a week repairing tractor-trailers. He often works 16-hour days on the farm. His wife also works full-time.  He has trimmed unnecessary expenses, postponed farm equipment upgrades, and criticizes the federal government for coming to the aid of car dealers and other big businesses, but not farmers.

“Where’s the bailout for farmers?” Gant asked.

“When everything went into the toilet, my costs didn’t go down one bit,” Gant said.

Gant said he would need a $250,000 loan to bail out his farm.

Gant remains optimistic that he can ride out the recession. He’s planting seeds now so he can get barley, rye and wheat next spring.

“We’ll get there. It’s just a matter of time,” he said. “I believe in the Lord. I know He’s going to take care of me. That’s one reason I’m confident we can come back.”

As all farmers know, we reap what we sow.  We trust that Mr. Gant’s optimism and faith will help to restore the good fortunes of farmers and the hungry citizens of New Jersey.   We should also view this as an opportunity to begin the sowing the seeds to address the problems of climate change.  Even in an area as blessed as New Jersey.  Farmers livelihoods and a significant portion of the economy of New Jersey depends on the economic viability of small farmers.  I also have a selfish reason to address the threat of climate change.  I continue to crave the  taste of the sweet fruits of our farmers  yields and pray that the Jersey Tomato makes a reappearance on our dinner plates next summer.

This article extensively used the report of Mr. Wilford S. Shamlin at The Courier Post.

To Reach Wilford S. Shamlin at (856) 486-2475 or wshamlin@courierpostonline.com

You Tube Video:  Billie Holiday,Lets Call the Whole Thing Off

Risk; small businesses, farmers, agriculture, climate, Jersey Tomato

Riskrapper is pleased to participate in this years Blog Action Day.  The subject is climate change.  We hope you enjoyed the post.

More than 7000 bloggers have registered to participate and thousands more will join in the next 24 hours. There’s already buzz growing across the blogosphere and on Twitter in anticipation, with updates from around the world every minute about the upcoming event.

October 15, 2009 Posted by | Uncategorized | , , , , , , , , , , , , , , , , , , , , , , , , , , , , , | Leave a comment