Capitalism; Dead, Alive, and Broken
copyright © 2009 Betsy L. Angert. BeThink.org For but a moment, whilst the Group of 20 [G20] met in London's ancient financial capital, ,"The City," the roars of remorse, could be heard. Words of woe had been whispered in hushed tones for quite some time. Scholars spoke of various possibilities on occasion. Whether Senior Economic Fellows from various think-tanks thought a system to be dead, alive, or near doomed, there was perhaps a bit of agreement. "I see what you mean. It is broken," Economist Mark Thoma mused more than a year ago. |
America adopted and advanced a system that was unsustainable.. More than once, "systemic failures" revealed the folly of free enterprise principles. Nonetheless, worldwide people were convinced to purchase damaged goods and premises. Yet, as Journalist Professor, Robert Jensen contends, "most notably those in the business world and their functionaries and apologists in the schools, universities, mass media, and mainstream politics" do not want to admit that this is so.
Wanted; Dead or Alive
The evidence is everywhere. What was a question rarely uttered, "Is Capitalism Dead?" has become a statement, or perhaps the dream of those who have been severely affected by this most devastating downturn.
Wealthy watch breathlessly as stock markets crash. Banks fail. Blue Chip companies crumble. Foreclosures flourish, and people, those once thoughtprosperous, pour out onto the avenue in search of a job, or some sense of stability.
Perhaps, that is why, average citizens felt a need to break the silence, to speak of the broken Capitalist system. In the shadow of powerful and prosperous Presidents and Prime Ministers, who gathered together for the G20 Conference, 4,000 demonstrators pleaded, not for pity, but for relief from a fiscal system that requires poverty.
Frustrated and forlorn by an attitude that fosters further advancement of free market principles, at least in the United Kingdom, dissenters shouted in disgust. It would not be wise to work within an economic structure that changed the global culture in ways that ultimately brought international institutions down.
On a fateful day, early in April a young girl in the crowd, Aeyla Windridge pleaded. I want "the death of Capitalism." The twelve-year-old spoke to what Heads of State had not for centuries. "Capitalism isn't in crisis, capitalism is the crisis," so said another activist.
Recovery, Reinvestment, and Rescue
Few of the principal players, those who represented the twenty participant countries were willing, or able to acknowledge the free market theory is flawed. Most of the prominent Heads of State were, and continue to be, content with sanguine assessments. Up to 85 percent of global gross national product comes from the shores of but a score of countries. Eighty [80] percent of world trade comes from these territories. Americans, who might be thought of as the authors of Capitalism, saw and see no reason to change the status quo, at least not substantially.
Borrow and spend had worked well in the past for the superpower, or so the US government attempted to advocate. While the President poses this philosophy cannot stand, America must move away "from an era of borrow-and-spend to one where we save and invest," in the same breath, the Chief Executive who represents the country that gave birth to free enterprise, endorses the framework, just as those who preceded him did. (Please peruse the text What Ever Happened to Free Enterprise, By Ronald Reagan)
Capitalism, the Obama Administration states, was not the cause of the planet-wide monetary collapse. Only greed, excesses, and a lack of regulations brought about the demise of the dollar, and the rate of exchange. As he addressed other world leaders in attendance at the G20 Conference President Obama conceded, "the crisis began in the United States. I take responsibility even if I wasn't even president at the time." However, Mister Obama contends all countries must be accountable for this massive macro-breakdown. America's Chief Executive proposes plans intended to strengthen a Capitalist structure.
In his April 4, 2009 Action to Address to the Global Economic Downturn, President Obama encouraged more regulations in an attempt to expand a consumer-based Capitalist theory. With little regard for how the American way of life, which the President does not apologize for, cripples common, people throughout the world, Mister Obama declared.
"(W)e know that the success of America's economy is inextricably linked to that of the global economy. If people in other countries cannot spend, that means they cannot buy the goods we produce here in America, . . . if we continue to let banks and other financial institutions around the world act recklessly and irresponsibly, that affects institutions here at home as credit dries up, and people can't get loans to buy a home or car, to run a small business or pay for college.
Ultimately, the only way out of a recession that is global in scope is with a response that is global in coordination."
One is reminded of why, in earlier years, no one spoke vociferously of the crisis that is Capitalism. Ordinary people were busy. For centuries, regular folks worked day and night only to bring home a nominal paycheck. Even in prosperous nations, people could barely afford to put food on the table. People took trivial jobs just to secure shelter. Millions felt forced to pursue professional paths that offer few rewards. The only goal for the average Joe and Jane was to stay afloat. Few have had the time or energy to protest their circumstances, or what the powers-that-be had and have imposed internationally. Today, and in the past, worldwide economic slavery has sufficed. That is until now.
Lest the President and Prime Ministers elsewhere forget, in the States, and abroad, people are out of work. The promise of an ownership society,where "people, from all walks of life," would open the door of their private residence and say, "Welcome to my home" proved to be but a myth. The pledge of plump stock portfolios for everyone through Capitalism was a claim never substantiated. Contrary to the oft-voiced assurances, the American Dream could be achieved anywhere on Earth If people only invested in a free market economy, this current fiscal crisis has shown the world, words were but wishes promoted by the prosperous.
Regardless of how average people are punished by a fiscal formula that requires there be poor people, the current President intends to preserve the Capitalist principles that govern a global economy. While Mister Obama may not profess a commitment to an "ownership society," he too wishes to encourage people to possess what they cannot afford.
Broken Beyond Benevolence
In contrast, more than a few Economists have begun to contemplate the wisdom of a system based on constant consumption. Experts in monetary movements examine, What went wrong and, rather more importantly for the future, what did not. Other statistician who study the social science of fiscal affairs suggest there is ""Good Capitalism, (and) Bad Capitalism." Certainly, no matter the belief, with cause, "Capitalism is under fire."
William Pfaff, the author of eight books on American foreign policy, international relations, and contemporary history has pondered the depths of a paradigm profoundly broken. Mister Pfaff offers a perspective less limited than the simpler theories often presented by Administrations and Academics. The observer of intercontinental issues writes . . .
The essential question is, what capitalism are we talking about? Since the 1970s, two fundamental changes have been made in the leading (American) model of capitalism.
The first is that the "stakeholder," post-New Deal reformed version of capitalism (in America) that prevailed in the West after World War II was replaced by a new model of corporate purpose and responsibility.
The earlier model said that corporations had a duty to ensure the well-being of employees, and an obligation to the community (chiefly but not exclusively fulfilled through corporate tax payments).
That model has been replaced by one in which corporation managers are responsible for creating short-term "value" for owners, as measured by stock valuation and quarterly dividends.
The practical result has been constant pressure to reduce wages and worker benefits (leading in some cases to theft of pensions and other crimes), and political lobbying and public persuasion to lower the corporate tax contribution to government finance and the public interest.
In short, the system in the advanced countries has been rejigged since the 1960s to take wealth from workers, and from the funding of government, and transfer it to stockholders and corporate executives.
There is ample evidence to support the author's contention. In 1970, the recipient of a Nobel Memorial Prize on Economic Sciences, Milton Friedman, encouraged an emphasis on corporate earnings. A culture that creates a vibrant community, Friedman insisted is counter to "The Social Responsibility of Business is to Increase its Profits"
Decades later, his disciples of sorts, Presidents Ronald Reagan, George Herbert Walker Bush, Bill Clinton, and George W. Bush, each implemented plans that increased earned income for the influential and decreased available dollars for the already disadvantaged. Policies designed to protect and promote an American entrepreneurial taxonomy, or Capitalistic interests, were proposed as a means to spread democracy. Planet-wide, people and economic practices were transformed.
The second change that has taken place is globalization. The crucial effect of this for society in the advanced countries is that it puts labor into competition with the poorest countries on earth.
We need go no further with what I realize is a very complex matter, other than to note the classical economist David Ricardo's "iron law of wages," which says that in conditions of wage competition and unlimited labor supply, wages will fall to just above subsistence.
There never before has been unlimited labor. There is now, thanks to globalization - and the process has only begun.
The variance is vast. Those who have possess so much. The portion of population that owns little, have far less than even an average individual might imagine. The wealthy cannot conceive of a life where food might be the most valuable commodity. A world in which water is worth more than gold seems unthinkable to those who thrive in "civilized" communities, Yet, this reality may come to towns in a Capitalist country. Indeed, in some American communities, this truth appears today.
Nonetheless, agreements secured at the G20 summit ensure the adoption of a debt-driven American-style "democracy." An arrangement, in which all are not created equal, will continue to be the practiced and preferred economic system planet-wide. People will once again forget assessments presented less than a decade ago.
Many of the radicals leading the protests may be on the political fringe. But they have helped to kick-start a profound re-thinking about globalization among governments, mainstream economists, and corporations that, until recently, was carried on mostly in obscure think tanks and academic seminars.The reassessment is badly overdue. In the late 20th century, global capitalism was pushed by leaps in technology, the failure of socialism, and East Asian's seemingly miraculous success. Now, it's time to get realistic. the plain truth is that market liberalization by itself does not lift all boats, and in some cases, it has caused damage to poor nations. What's more, there's no point denying that multi-nationals have contributed to labor, environmental, and human rights abuses as they pursue profits around the globe . . .
(After a ten-year expansion of market capitalism around the world, as of the year 2000) The World Bank figures the number of people living on a $1 a day increased to 1.3 billion, over the past decade.
The extremes of global capitalism are astonishing . . . If global capitalism's flaws aren't addressed, the backlash could grow more severe.
Indeed, the repercussions have been relentless. Near a century of consumption, solely for the sake of profits, has weakened the world. The current fiscal crisis reveals Capitalism was never the cure for what ails the people on this planet. Persistent poverty, and the threat of increased insolvency, born out of a free enterprise system is an expense few, if any, can afford. One need only look at the Capitalism and what it has wrought. Avaricious individuals may acknowledge one reaps what one sows. Independently, or collectively, as a global community anyone might come to understand, "If my brother is poor, I/we too will suffer. Ultimately, I/we will pay for the poverty I/we accept."
Without such a realization, and inspired by the spirit of an individualism that has flourished amongst free-marketers, people may, as President Obama proclaimed. Worldwide, or here at home, we "want a return to that sense of dynamism and entrepreneurship that [has] been missing." However, it is not another glorious "morning in America." Nor is it a beautiful day in most neighborhoods. Were the clouds to clear, globally people might avow, authentically, there need be an actual new dawn. It is time to dream of economic structures that have never been.
The majorities in the States, and throughout the globe, are no longer silent. Common folks have spoken. Capitalism is broken. It is not wanted, dead or alive.
Sources for economic and empathetic structures . . .
- Is Capitalism Dead? No. By William Galston. National Public Radio. March 11, 2009
- Is Capitalism Dead? Maybe. By J.D. Foster. National Public Radio. March 11, 2009
- Is Capitalism Dead? Yes. By Alan Reynolds. National Public Radio. March 11, 2009
- I See What You Mean, It Is Broken, By Mark Thoma. Economist View. January 24, 2008
- 'The World As We Know It Is Going Down', By Marc Pitzke. Spiegel International. September 18, 2008
- Systemic Failure: Capitalism "Lays An Egg," By Stephen Lendman. SteveLendmanBlog. March 2, 2009
- Capitalism Under Fire, By William Pfaff. The International Herald Tribune. 30 March 2006
- Is Capitalism Dead? The Washington Post. October 20, 2008
- Recession Pain, Even in Palm Beach, By David Segal. The New York Times. April 12, 2009
- Blair: Global economic fallout is nation's major threat. Cable News Network. February 12, 2009
- The Social Responsibility of Business is to Increase its Profits, By Milton Friedman. The New York Times Magazine. September 13, 1970. Copyright @ 1970 by The New York Times Company.
- Colorado bank biggest US bank failure of 2009. AFP. April 10, 2009
- Slump Humbling Blue-Chip Stocks, By Mark Healy. The New York Times March 6, 2009
- U.S. foreclosure filings rise in February, By Lynn Adler. Reuters. March 12, 2009
- In Defense of Income Inequality, By Peter Schwatrz. Capitalism Magazine. March 28, 2009
- Congressional Finance Chair Discusses U.S. Economy. NewsHour. September 3, 2007
- Disowned by the Ownership Society, By Naomi Klein. The Nation. January 31, 2008
- The End Of American Capitalism? By Anthony Faiola. The Washington Post. October 9, 2008
- The G-20 and the Future of Capitalism - Part I, By Jeffrey E. Garten. Yale Global. March 30, 2009
- President Obama's News Conference; Transcript. The New York Times. March 24, 2009
- Century of Self.
- Story of Stuff. By Annie Leonard. The Sustainability Funders and Tides Foundation.
- Address by Governor Ronald Reagan, Installation of President Robert Hill, Chico State College. May 20, 1967
- What Ever Happened to Free Enterprise, By Ronald Reagan. Ludwig Von Mises Memorial Lecture at Hillsdale College. November 10, 1977
- 12-Year-Old Protester: 'Death of Capitalism.' By F. Brinley Bruton. MSNBC News. April 1, 2009
- Capitalism Under Fire, By William Pfaff. The International Herald Tribune. 30 March 2006
- Global Capitalism, Can it be made to work better? By Pete Engardio with Catherine Belton. Business Week. November 6, 2000
- Obama's G-20 confession: "I take responsibility." By Marc Hujer, Wolfgang Reuter, and Christoph Schwennicke. Salon. April 7, 2009
- Prepared Remarks of President Barack Obama Weekly Address, The White House. Saturday, April 4, 2009
- Globalization: A Reference Handbook, By Justin Ervin, Zachary A. Smith. 2008
- Capiatlism at bay, What went wrong and, rather more importantly for the future, what did not. The Economist. October 16, 2008
- "Good Capitalism, (and) Bad Capitalism," By David Wessel. Wall Street Journal. Economist's View. May 10, 2007
- Drinking water costs lots of dollars. MarketPlace. March 17, 2009
- Analysis: Obama takes 'morning in America' mantle. Cable News Network. February 25, 2009
- A Different Sort of Red America, By Tobin Harshaw. The New York Times. April 10, 2009
Posted by Betsy L. Angert on April 12, 2009 at 12:00 AM in American Dream, American Family, American Jobs, Americana, Art of Loving, Have or Be, Business, Capitalism and Competition, Civics, Communities, Competitive Production, Consumption and Conservation, Corporate Profits, Debt and Defense, Democracy or Monopoly, Economics | Permalink | Comments (0) | TrackBack
Bailouts Blaze; Exuberance Explodes
copyright © 2008 Betsy L. Angert. BeThink.org
Never spend your money before you have it.
~ Thomas Jefferson
I, however, place economy among the first and most important republican virtues, and public debt as the greatest of the dangers to be feared.
~ Thomas Jefferson
Tis Sunday, September 28, 2008. The weather is warm and word on the streets is warmer. Fire from Hades, fervor, and fury heat the debate heard on the streets and in the halls of Congress. Businesses fail. Banks do too. Bailouts are planned and these too falter. Those in the White House are red hot with concern. People in Treasury Department and within Secretary Henry Paulson's office sense the burn. Many fear they too will be scorched. The flames are intense on the Hill. Yet, on American avenues many feel, while inflamed by the rhetoric, chilled at the prospect that this immediate need for a bailout is but a hoax or perchance, just hype.
Citizens in this country have been lied to too often; particularly, the public believes, the current Administration has been irresponsible with facts and finances. Candidates and Congress have delivered a fair share of untruths. Tycoons, most accept, fudge the numbers. Countless conclude, there is no one, in government, or in corporate offices, they can trust. Hence, when confronted with the claim, American taxpayers must bailout Wall Street, most say, and what of Main Street? What of me?
The electorate fumes. Even the apathetic are steamed. Big-businesses will receive bailouts while the poor wallow in economic waste. What is a person to do?
History might tell us we can do nothing. Rome burned and Nero fiddled. That is often the case when people are provided with fruits of folly in hopes they might forget financial woes. "The fundamentals of the economy are (still) strong," is uttered to appease Americans and perchance, those throughout the globe.
Today, and throughout this week we might recall the recession, the correction that preceded the perceived bump. The year was 1929, near four score ago. The month was October, and the date was the 27th. While America had realized many fiscal depressions in years prior, none was as the crash heard on that solemn Thursday afternoon. Few expected what amounted to a sonic boom. The smoke rose from the floor of the New York Stock Exchange. The fire on that day singed portfolios and people. The rumbles and rubble reminded many of the ruins of Pompeii. Some could not bear the high temperature of an explosive economy.
At first, economists and leaders thought this was a mild bump, perhaps merely a correction of the market, or in any case, no worse than the recession the nation suffered after World War I.Numbers soon proved the optimists incorrect. The depression steadily worsened. By spring of 1933, when FDR took the oath of office, unemployment had risen from 8 to 15 million (roughly 1/3 of the non-farmer workforce) and the gross national product had decreased from $103.8 billion to $55.7 billion. Forty percent of the farms in Mississippi were on the auction block on FDR's inauguration day. Although the depression was world wide, no other country except Germany reached so high a percentage of unemployed.
The poor were hit the hardest. By 1932, Harlem had an unemployment rate of 50 percent and property owned or managed by blacks fell from 30 percent to 5 percent in 1935. Farmers in the Midwest were doubly hit by economic downturns and the Dust Bowl. Schools, with budgets shrinking, shortened both the school day and the school year.
The breadth and depth of the crisis made it the Great Depression.
No one knew how best to respond to the crisis.
Nor does anyone today. On boulevards and in banks, citizen question why do we need a bailout for big-businesses. What of the common folk? Who will or has ever assisted the little guys and gals. All these questions and more are apt. Where were the regulators, and what ever became of regulations?
No one wondered, not even those in the well-educated Middle Class when they could cash in on high home prices. Few fretted when it was easy to secure a loan. Brokers and borrowers could live in the lap of luxury when no one was watching the safe or our fiscal security.
It was fun, to burn billions, while it lasted. Now, as Americans sit on piles of ash, once called McMansions or glorious abodes, too many millions weep for what they were happy to have wrought. Credit card companies call and demand; they must collect on the debt. Americans whimper. "I cannot pay." My foundation, my funds were burned when all was set ablaze.
When life was good Americans bought the oratory from the Oval Office. People purchased businesses, stocks, bonds, clothing, and any capital that could boost a sense of wellness. Americans spent . . . it all, and on what. Inflated images. Irrational exuberance was contagious. It spread as a wild fire in a forest full of tinder dry trees. Yet, now the Bush's are bare. Everyone has his or her hand out. "Alms for the poor" is not the cry. "Alms for the rich is what citizens are told will help. People read.
Bailout failure 'will cause US crash’
The US stock market could suffer a devastating crash with shares losing a third of their value this week if Hank Paulson’s financial bailout plan fails, US Treasury officials have warned.By Tim Shipman in Washington and Edmund Conway
Telegraph
28 September 2008, 10:14AM BSTThe financial system could face a meltdown of 1929 proportions unless US politicians succeed in their efforts for a $700bn rescue scheme, experts added.
The warning came as Republicans and Democrats met in Washington for a rare weekend debating session to attempt to seal agreement on the contentious plan, aimed at preventing a long-lasting recession in the US.
Officials close to Paulson are privately painting a far bleaker portrait of the fragility of the global economy than that advanced by President George W Bush in his televised address last week.
One Republican said that the message from government officials is that “the economy is dropping into the john.” He added: “We could see falls of 3,000 or 4,000 points on the Dow [the New York market that currently trades at around 11,000]. That could happen in just a couple of days.
“What’s being put around behind the scenes is that we’re looking at 1930s stuff. We’re looking at catastrophe, huge, amazing catastrophe. Everybody is extraordinarily scared. It’s going to be really, really nasty.” . . .
Peter Spencer, economic adviser to the Ernst & Young Item Club, said: “This is the time you have to bail people out and ask questions later. It is very difficult to see how the US banking system would survive without that.
This has the potential to make 1929 look like a walk in the park.”
Senator Harry Reid of Nevada, the majority leader, said: “We hope sometime [Sunday] evening we can announce some kind of agreement in principle. We may not have another day.”
Rebel Republicans - who see Paulson’s proposals as socialism by the back door - were warned they will be responsible for causing an “amazing catastrophe” if they continue to oppose the plans, which would see taxpayers buy up the bad debts of failing banks. Instead they want an insurance scheme for banks, which would spread the cost to private enterprise.
Would it be that insurers could ensure, people will not do as they have done and ignore all cautions. In the past, professors preached, "Remember the Alamo," Today, teachers beckon, "Recall the demise of American International Group (AIG)," an insurance company who fell only a week ago.
A person considered a prominent and extremely prosperous investor attempted to teach the world of what no one wished to see. Early in May 2008, Entrepreneur, Berkshire Hathaway Chairman, Warren Buffett warned us the winds from the warm blaze would scorch all life on the planet today. He said in an interview with the German magazine Der Spiegel, we are in for a "long, deep recession," "Perhaps not in the sense that economists would define it. But the people are already feeling the effects. It will be deeper and last longer than many think."
Sadly, Few heard him. People were off shopping. Most paid for purchases with fire. Sales, while robust, were often transactions that led to greater debt. For decades now, people have preferred to buy now and pay later. Only now do Americans experience an economic pinch.
Awestruck by the economic wreckage, people ask why. Why me? Why now; and a few astute monetary masters say, "Why not?" Economists wonder why is it that humans do not learn from history. People look back after they are burned. The question might not be what caused the fire or the frenzy. That answer is easily found. Humans, flawed and filled with the foible of avarice wish to accumulate what they cannot afford. Perchance, the query could be, who or how often will people pursue a bailout? When will debt not be an option and when will humans guard against avariciousness?
References for Fiscal Resources . . .
Posted by Betsy L. Angert on September 28, 2008 at 01:00 PM in Bush 43 Administration, Business, Capitalism and Competition, Congress and Bush, Corporate Criminals, Corporate Profits, Economics | Permalink | Comments (0) | TrackBack
Capitalism; Competitive Markets Cut To The Core; Inequity Is Inevitable
American propaganda - Capitalism (1948)
copyright © 2007 Betsy L. Angert. BeThink.org
Decades ago, Americans watched a televised spoof of current events, the Rowan and Martin Laugh-In Show. A cast of characters sang "What is the news across the nation?" Then they assessed the antics of politicians and celebrities alike. Serious situations were satirized; silliness was glorified. Americans were given an opportunity to reflect and see how sadly corrupt and irrational our competitive Capitalist system is. Exuberance envelops us. Avoidance advances. Americans consume, compete, and settle into complacency.
This week, as we again set aside time to honor laborers in America, this reality seemed ever-present. Labor's failure is perhaps industrialism at its best. Free enterprise follows the market or perchance it creates a product for America to buy.
In recent weeks, the American public was again able to purchase the absurdity that passes for news. The current craze streaming through the airwaves is Senator Larry Craig was arrested in an airport bathroom. Although he plead guilty after being accused of a crime, Idaho Senator Craig, stated, I did nothing 'inappropriate' in [an] airport bathroom. What the Senator did do, regardless of whether he solicited sex from a male officer or not, is provide Americans with another welcome distraction. That is glorious; that is entertainment! In a free-enterprise marketplace economy, we demand diversions. The truth of our status is too painful to bear,
The weighty news daunts and haunts us. There are moments that we wish to share what is thought significant to Americans as a whole. However, these are few and far between. U.S. Workers Are Most Productive. As we read this banner headline, we exclaim, 'Hooray!' America is still Number One!!! Citizens are reassured. The public need not look any further. Nor is there a need for the mainstream media to dwell. Citizens of this country are secure in their knowledge. This nation is great. The numbers support our sense of self, or at least this calculation does.
However, sadly, days later, we learn, 4-Year Growth in Jobs Ends; Dow Off 200. This pronouncement did not appear as prominently; nor did it receive the attention Larry Craig's resignation did. Few wanted to discuss the devastation in the job market or the blow to the economy.
Not only did the report show that there was no job growth last month, but it also found that the job market was significantly weaker in June and July than the government first reported. Revisions to earlier jobs reports showed that 81,000 fewer jobs were created than initially estimated.This bulletin is not novel. Buried in the back pages a thorough reader often finds words that might destroy the illusion. Opinion: Pay heed to needs of the American worker. However, statements such this are far less titillating. Sex sells. Super star sensationalism stimulates. A member of Congress in crisis is a celebrated chronicle. Accounts of Labor Day festivities, those filled with fun and folly can help to affirm America is on solid ground. Any information that attests to the good of Capitalism is treasured.
However, if we care to probe deeply, beyond the hype, we might question the system that leave its citizens steeped in debt, despair, and economic depression.
Just prior to Labor Day, John Sweeney, President of the AFL-CIO, [American Federation of Labor and Congress of Industrial Organizations] published an editorial that appeared in no more than one or two periodicals. Sweeney spoke of the plight of the American employee, the drudge. He discussed circumstances that are yours and mine. We, the laborers, the common folk that sustain this country, and make the United States great may wish to understand.
'What's wrong with America?" That's the question Steve Skvara, a disabled, retired steelworker, asked seven Democratic presidential candidates several weeks ago at the AFL-CIO Presidential Forum in Chicago. Skvara struggles to afford health care for himself and his wife after the company he worked for declared bankruptcy and abandoned its commitment to those who gave the best years of their lives to their employer.Yet, those with an empty stomachs are grateful for the smallest serving. In America, we are trained to believe there is a limited supply. Resources are scarce. There is only enough for a few. Some will have, others must work diligently to acquire a pittance. Citizens are reminded there is reason to hope. The news is filled with success stories. The masses are asked to suspend disbelief. They too must dream.As we approach Labor Day, many of America's workers are echoing Skvara's question.
Corporate greed and nearly seven years of wrong-headed Bush administration economic policies have fed a growing gap between the haves and have-nots. Americans are less secure about their jobs, retirement, health care, and standard of living.
The issue that Skvara so poignantly raised - health care - is on the mind of nearly every American.
Our system is broken; it's left 47 million without insurance coverage and millions more with inadequate or unaffordable care. Rising health costs are crippling families and making it harder for responsible businesses to compete. A recent study by the New York City Department of Health found that one of every six adults in New York has no health insurance, though nearly two-thirds of those without coverage have jobs.
Americans now work longer hours than workers in any other developed country, and as a result, we generate a whopping $13 trillion in income every year. Yet, at the richest moment in our nation's history, the wealthiest 1 percent claims more than 20 percent of the nation's income. As a result, workers have seen their slice of the economic pie shrink to a sliver.
In truth, opportunities are not equal. This reality may seem obvious if you are among a minority, or born poor. Nevertheless, even those that struggle to do well in America, aspire to greatness. After all, this is the land of the free market, free enterprise, freedom, and opportunity.
Citizens and immigrants alike believe as their great grandparents, grandmothers and grandfathers did. We trust in the words of Mom and Dad. America is the land of opportunity. People have faith that in America anyone can make good. Perhaps, early in our nation's history some did. Narratives are nuanced. Nonetheless, today there seems less reason to dream.
[T]he Pew Charitable Trust published the first of its studies on economic mobility. The nonpartisan project is taking input from top economists and researchers across the political spectrum in an effort to measure American mobility — the ability of a person to move up or down the income ladder.Our countrymen complain; yet, customarily, we accept, 'Life is not fair.' In the spirit of an entrepreneur, Americans believe. After all, in this great nation our Constitution confirms, "All men are created equal."The study finds that economic mobility in America is “less than has long been presumed.” It says economic mobility is actually declining for men in their 30s, who are doing worse (as a whole) than their father’s generation when measured by incomes: “This suggests that the up escalator that has historically ensured that each generation would do better than the last may not be working that well.”
The study also says that, based on other research, “about half of the advantages of having a parent with a high income are passed onto the next generation,” which means “one of the biggest predictors of an American child’s future economic success — the identity and characteristics of his or her parents — is predetermined and outside that child’s control.” In other words, the existing rich are just getting richer and the middle class tends to stay middle class.
Nevertheless, Economists theorize. Researchers reassure us, the reality that the 'rich get much richer' is a new phenomenon. It is only in recent years that the Middle Class struggles to sustain a comfortable life style. Always in the past, the poorest among us had a chance at success. In America, the streets are paved in gold. Anyone can make it here.
An individual merely needs to maintain that competitive edge. A word to the wise and those that want more, keep your chin up and nose to the grindstone. Pay your dues. Good comes to those that work hard for a living and wait. Americans accept these standards. Conventional wisdom serves to secure the workforce as is. We understand, We must keep hope alive if the USA is to remain Number One.
The public is encouraged to think the best of the current situation, regardless of reality. Rarely is the populace exposed to fiscal facts. The news is just too disturbing. Besides, in a market economy, actual statistics are dry. Data does not sell. Nor do formulas and figures entertain a society groomed to crave comedy, short stories, drama, and special effects. No one wants to know the myth is a manipulation, necessary to maintain inequality.
Recent studies suggest that there is less economic mobility in the United States than has long been presumed. The last thirty years has seen a considerable drop-off in median household income growth compared to earlier generations. And, by some measurements, we are actually a less mobile society than many other nations, including Canada, France, Germany, and most Scandinavian countries. This challenges the notion of America as the land of opportunity.Elected officials grasp, inequity is exceptionally good for the economy. Indeed, it is essential. Noted Liberal Senator, Barney Frank finds no fault with disparity. The Congressional Finance Chair merely struggles when the difference between the rich and poor is extreme. In a News Hour interview, on a day set aside to honor labor, no less, the Progressive Massachusetts representative concedes.Despite these potentially troubling findings, the current national economic debate remains focused too narrowly on the issue of inequality, leaving aside the more important core question of whether the foundation of opportunity, economic mobility, remains intact. As Federal Reserve chairman, Ben Bernanke recently noted: Although we Americans strive to provide equality of economic opportunity, we do not guarantee equality of economic outcomes, nor should we. Indeed, without the possibility of unequal outcomes tied to differences in effort and skill, the economic incentive for productive behavior would be eliminated, and our market-based economy — which encourages productive activity primarily through the promise of financial reward — would function far less effectively.
Inequality is a good thing. You don't have a capitalist system without it. But we are in a position now in which inequality is excessive.One might ask, in a system that promotes scarcity among the poor, and advances policies that allow the affluent to become more so, how can we expect any outcome other than what we witness today. Yet, Americans do not inquire why or how an economic system that requires inequality is adopted in a nation whose Constitution states, all men women, and children are of comparable worth.
Instead, common-folk suffer in silence. Individuals stress. People in this great country, the land of opportunity, blame themselves for not being better, or at least for not being the best they could be. Our countrymen are convinced the sky is the limit. They watch others on their televisions and think, someday.
Actors and actresses on the silver screen are larger than life. Surely, the audience thinks that could be me. Industrialists are featured in periodicals. We see them in commercials. Businessman and businesswoman write books. These Capitalist share their secrets. People are captivated by the promise that they too could become rich. Competitive drive is all we need.
The media, just as free enterprise Economists, remind us of this in each moment. Residents of this country are persuaded to cling to stories of celebrity, self-made millionaires, and corporate genius. The thought is, if he or she made it, so too can I. As much as Americans enjoy success stories, we much prefer tales of woe. Thus, for weeks now, we have been guided to the toilet. The Larry Craig story lives large. The Senator's sexual preference has been discussed with greater vigor than all other matters since it was first exposed. Howard Kurtz of Cable News Network's Reliable Sources offers his hypothesis for why this might be. He states.
Celebrity scandals have become embedded in the media's DNA. Every couple of days, it seems, somebody somewhere who's been mentioned in "People" or "US" or on "Access Hollywood" gets into some kind of trouble and we all start buzzing about it.Again, we might question why do Americans focus on the failures of the famous. Perhaps, other indulgences, such as sex, drugs, and drink have not significantly dulled the pain. Try as they might, people in this prolific territory, never seem able to compete with the images they have of themselves. Middle Americans do not often live up to their expectations. People become impatient with themselves and with all those around them.
Now comes "Entertainment Weekly" with a cover story on the 25 biggest celeb scandals of the past 25 years.
Residents in this wealthy nation want, they need. We cannot wait. After all, in movies, on television resolution and riches comes within minutes. Granted, people in the United States are greedy. As well they should be. Capitalism demands such an attitude. Immediate gratification is cultivated by corporate America. Once more, Journalist Howard Kurtz assesses this truth in his meta on the media. As Kurtz and his guest correspondents, digest the dynamic of media coverage as it pertains to hurricane Katrina, they accept what many of us perceive. During the tempest, there was much drama. Now two years after the storm, the interest in the circumstances and the people affected has died. The audience is flippant. They are a product of a competitive free-market society.
Kurtz: [O]bviously, John Dickerson, it lacks the drama of the hurricane itself, when you have people clinging to roofs and water rushing in. And, you know, anybody who goes there -- I went there about eight months after the storm -- is just struck by the continuing miles and miles of devastation and abandoned houses and all that. And you come back and you want to sort of tell the world about it. But in the world in which we live, it's got to compete with Michael Vick pleading guilty to dogfighting and Larry Craig and everything else.For the masses, much fades from memory, even when we marinate in what is. Distractions are often a welcome break. The miseryDickerson: That's right. And what was interesting is, after Katrina, there were a lot of people -- you know, even Condi Rice said we need to have a national conversation about race. And what everybody said was, you know, we had forgotten about this story of America's forgotten people and the poor before Katrina, so let's all think about it now. But now we've seen that that conversation, even after this devastating tragedy, has, in fact, shrunken away.
of another can be the source of great entertainment, particularly when, in a nation of lopsided wealth personal fulfillment does not seem possible in the near future.
A year ago, also on the Labor Day weekend, another report surfaced. Only the affirmative aspect of this study was considered suitable for distribution. The Public Says American Work Life Is Worsening, But Most Workers Remain Satisfied with Their Jobs. The qualifier is important to note. People may rant, 'We must make a change.' However, humans adapt easily. Mankind is comfortable when our essential needs are met. People gravitate towards the familiar. If we feel safe and secure in our knowledge, 'life is fine,' we will likely do little to alter what is.
Years ago, I lived in a roach infested studio apartment. I slept on a Murphy, pullout bed. The springs poked through the thin mattress. The stove in my minuscule kitchenette had two small burners. The furniture was used, dirty, and dilapidated. Nonetheless, I was content. Settling seemed more sane than venturing into the unknown. To others my state of affairs seemed sad. For me, all was good enough.
It is good to know, people adapt. They make due. This fact benefits those averse to accepting less than the best. In a Capitalist culture, the affluent must be certain there are those willing and able to serve. The underclass, if gratified with crumbs will continue to work for the wealthy. Thus, the rich can get richer and the economy survives. The elite among us thrive. The poor ultimately perish at an early age. No matter. Reproduction will help sustain the imbalance necessary for Capitalism to flourish. There will be a continual supply of underprivileged to meet the demands of the corporate class.
However, the health of the working class is in rapid decline. Few are able to prevent illness. Health insurance is frequently not provided by employers. Government programs are restrictive. In a Capitalist country, programs that might prevent illness are labeled, "Socialist" and therefore unacceptable. Let people fend for themselves. "Pull your self up by your boot straps," even if the price of foot-ware is beyond your reach.
Poverty Rate Up 3rd Year In a RowAs the years pass, we realize red flags remain ignored. The poor are not the only persons affected.Study: More Middle Class Uninsured. an income once thought opulent now is substandard.
More Also Lack Health Coverage
By Ceci Connolly and Griff Witte
Washington Post
Friday, August 27, 2004; Page A01The number of Americans living in poverty or lacking health insurance rose for the third straight year in 2003, the Census Bureau announced yesterday, reflecting a job market that failed to match otherwise strong economic growth.
Overall, the median household income remained stagnant at $43,318, while the national poverty rate rose to 12.5 percent -- 35.9 million people -- last year, from 12.1 percent in 2002. Hit hardest were women, who for the first time since 1999 saw their earnings decline, and children. By the end of 2003, 12.9 million children lived in poverty.
As expected, the number of people without health insurance grew last year, to 45 million -- an increase to 15.6 percent from 15.2 percent. White adults, primarily in the South, accounted for most of the increase. The proportion of people receiving health insurance through an employer fell to 60.4 percent, the lowest level in a decade, from 61.3 percent.
The census report provided hard numbers to anecdotal evidence that the recent recovery has missed certain regions and segments of the population. An additional 1.3 million Americans fell below the poverty line in 2003, as incomes dipped for the poorest 20 percent of the population. An additional 1.4 million became newly uninsured.
"This recovery has failed to reach those in the bottom half," said Jared Bernstein, a senior economist with the Economic Policy Institute.
Middle-Class Americans Join Ranks of Uninsured in 2006 as Private Coverage ShrinksNumber of Uninsured Swells 2.2 Million to 47 Million
15,000 Doctors: “Single Payer National Health Insurance is the Only Solution”
Chicago — The U.S. Census Bureau released data today showing that the number of uninsured Americans jumped by 2.2 million in 2006 to 47.0 million people, with nearly all the increase (2.03 million) concentrated among middle-class Americans earning over $50,000 per year, according to an analysis by Physicians for a National Health Program (PNHP). Strikingly, 1.4 million of the newly uninsured were in families making over $75,000 per year. An additional 600,000 were in families earning $50,000 to $75,000 per year. (The median household income in 2006 was $48,200).
“Middle income Americans are now experiencing the human suffering that comes with being uninsured. It makes any illness a potential economic and social catastrophe,” said Dr. Steffie Woolhandler, co-founder of Physicians for a National Health Program and Associate Professor of Medicine at Harvard Medical School.
When Americans have health insurance, the coverage is often inadequate. Half-truths flourish in a Capitalist culture. It is imperative we maintain the myth. However, we need only look at our own lives to realize the vibrancy of the "Middle Class" is not what we are led to believe.
Granted, more Americans may have color televisions. Cellular telephones are abundant. Much in the way of supposed material wealth fills our homes, or more honestly, the house the bank owns and we live in. Nonetheless, most of what we possess is not fully ours. We made the down payment on our wares and we continue to pay the bills. Our purchases ensure the economy will remain healthy.
In America, credit card debt is up. Homeownership is down. The miracle of a home ownership with a 'no money down' mortgage was merely a mirage. Ultimately, as might have been expected the bubble burst. Bankers did as the public does. They borrowed from Peter to pay Paul. Our pal Paul had investments on paper. His worth was inflated. Industrialists are able to create great illusions. Print more money; it is the magic cure.
For years, Americans believed as businesses invited them to do. All this can be yours. A signature is all that is required. Brokers said, 'You too can buy a beautiful home." Your good name is enough to secure a loan. Today, Mortgages in foreclosure at record high. The sub-prime fiasco is as much is in a Capitalist society, a front for failures.
We, as Americans fail to save dollars or cents, sense [sic.] We have no time or knowledge of how to do other than what we have done, keep up with the Jones's. It is a competitive world out there. Only the strong survive. Strength is measured in dollars. Yet, all that glitters is not gold.
In a world where inequity is thought excellence, there is much to consider. Americans may speak about a need to change. However, when asked to do so, we proclaim. I do not want to give up the creature comforts that destroy the environment.
Rarely, do we consider that if we work together to better the Earth for all it inhabitants equally, the quality of life will improve for everyone. We dare not contemplate industry and government together can create jobs that nurture nature. This topic is taboo. Government and industry, must remain separate. In truth, they never were in the United States. Capitalism spreads freedom, free enterprise, even as democracy, the free and equal right of every person to participate in a system of government, falters. Thus, we have it income inequity increases. The rich get richer. The masses sink further into oblivion.
Capitalism thrives for citizens of this great nation comply. They accept familiar and comfortable circumstances. It is far easier to do as we have done for centuries. People in this Capitalistic culture continue to claim this "civilized' lifestyle is unsurpassed. Certainly, no country is as great as ours.
Americans compete in a desire to feel complete. We shop until we drop. We drown our sorrows. Those in this, the wealthiest country on the planet, dive into drug-induced stupors. The general public hopes to find happiness. However, they must know, in a culture that breeds inequity, they are powerless.
An educated community exercises their right to free speech. Speaking out pacifies anxious Americans ; still frustration lingers. Ultimately, even the scholarly escape in various forms of entertainment. Men and women in this glorious nation gossip, indulge in rumors, and temporarily absorb themselves in reports to release the pressure. Capitalism and the active marketplace appease the masses and sustain the classes.
Thank goodness, Americans excel at avoidance and diversions are everywhere. If it were not for a Conservative Idaho Senator and his circumstances, Amid sex scandal, Senator Larry Craig resigns we might have to question the quality of a competitive market economy. So, embrace the fury. It is your duty as a Capitalist.
Capitalism, Inequity, and Deplete Resources . . .
Posted by Betsy L. Angert on September 7, 2007 at 01:00 PM in Americana, Capitalism and Competition, Economics, Income Inequity, Inequality in America, Labor, Employment | Permalink | Comments (0) | TrackBack
Business Blunders Burden Society ©
My reaction; I am not surprised. Years ago I was dating a man, a marvelous specimen of a person. He was bright, personable, loving, and truly amazing. I suspect he still is. Tom was the Vice President of a small; yet successful business. Millions of dollars passed through this company's hands perhaps daily, maybe it was monthly. I know not for sure. I am not much of a marketing person. My mind travels elsewhere. Nevertheless, I marveled at how the money flowed, what is was spent on, and what services were provided. Perhaps you would have as well.
You might have contemplated, as I did, what was not occurring. I trust you would have noticed in Tom's business, efficiency was lacking. The man working in and managing the warehouse was a wonder. I always felt as though without his leadership, the corporation would never continue to exist. In truth, I was astonished that this operation not only survived; it thrived! Perchance, you have seen similar.
This week, as in months past, I read articles that reminded me of my musing, "How do corporations, even communities function?" How do they stay alive. From what I observe the world is crumbling around us. Incompetence permeates society. Institutions house the ignorant or avoidant. I hope it is the latter. Nevertheless, whether people are unaware or uninformed they manage. How can this be. I offer the examples I see and saw. I ask you to assess for yourselves. What is going on in the business world?
GM Loss $2B Worse Than Thought
Automaker Now Estimates It Lost $10.6 Billion In 2005
Detroit, CBS News March 17, 2006AP) General Motors Corp. is increasing its previously-reported loss for 2005 by $2 billion as the world's largest auto maker gets a truer picture of the costs of bailing out its former parts-making unit and revamping its loss-riddled North American operations.
GM said in a release after the market close Thursday that it now estimates it lost about $10.6 billion last year from its earlier preliminary report of a loss of $8.6 billion.
It expects to increase the charge for its exposure relating to Delphi Corp.'s Chapter 11 bankruptcy case to $3.6 billion from the previous estimate of $2.3 billion.
Additionally, GM will boost its North American restructuring charge to $1.7 billion from the previously reported $1.3 billion to cover higher expected costs for plants the company aims to close by the end of 2008.
Then there is Ford. They thought they had a better idea; however, evidence shows that they do not.
Ford Losses Widen On RestructuringInvestors are hurt by incompetence and short-range thinking; however workers suffer the greatest loss. Society as a whole endures greater pain when workers are no longer employed. Those laid off from their jobs have little money to spend let alone devote to building a nest egg.
By Annalisa Burgos.
Forbes. April 21, 2006New York. Making news this morning, Ford Motor lost $1.2 billion in the first quarter, its worst performance in more than four years. The automaker took a $1.7 billion charge for costs from its massive North American restructuring effort. The company is cutting up to 30,000 jobs and closing 14 facilities over the next six years.
Even when employees do prosper and their employers are doing well, people can be affected by the incompetence of business moguls.
Failed hedge funds make a big noiseCorporate and government business decisions as a whole cause me to wonder. In truth, companies do not concern me; people in total, worry me. I continue. I offer more examples to better illustrate my distress. Allow me to present two more circumstances.
By Len Boselovic.
Pittsburgh Post-Gazette Thursday, June 09, 2005In the pantheon of hedge fund blowups, the $215 million that Downtown money manager MDL Capital Management lost for the Ohio Bureau of Workers' Compensation is small potatoes.
Nor is Mark D. Lay, who built MDL into an influential $2.8 billion money management firm that has stumbled in recent years, the first investor to lose millions making an errant bet on interest rates.
But the loss will put increased scrutiny on hedge funds, an $875 billion industry that's growing about 20 percent annually, according to figures from The Hedge Fund Association.
The investments, which rely on such techniques as interest rates swaps, options, futures contracts and other complex strategies that typically involve borrowing money or putting down only a fraction of funds, were once strictly targeted at affluent individuals.
Now, pension funds and other institutional accounts are using them to offset risk and enhance performance, particularly at a time the stock market, coming off its steep sell-off earlier this decade, is struggling to generate the sort of returns that seemed commonplace in the go-go '90s. While they are still off limits to most individuals, investors don't have to be as affluent as they once did to buy into the exotic funds.
In the right manager's hands, hedge funds can outperform plain vanilla stock and bond investments with less volatility and less risk. This year, their performance has been less than spectacular.
School district tries to close the book on missing textsIt is bad enough that student lose their textbooks. I think it is worse when administrators lie when asked of the possibility. We ask, and supposedly teach our children not to purposely misinform others; yet, we the educated and ethical; elders do as we profess not to do. We say what satisfies our own needs and not what is morally correct.
By Don Jordan
Palm Beach Post. Sunday, December 10, 2006In the last two years, the Palm Beach County School District has taken a hit of more than $1.1 million in lost or stolen textbooks, according to school records.
Even though that is half of what was reported five years ago, district officials are just now implementing a $515,000 program aimed at stemming the losses. The school district reported $1 million in missing schoolbooks for the 2000-01 school year, according to a state audit.
High schools that recorded missing textbooks last year averaged about $17,000 in losses. However, there were three schools - Boynton Beach, Suncoast, and Palm Beach Gardens high schools - that initially recorded no losses, despite a combined enrollment of more than 5,000 students and more than a combined $28,000 in textbook losses the previous year.
Officials at Boynton Beach and Palm Beach Gardens high schools changed their textbook loss figures on record with the school district after The Palm Beach Post questioned the numbers. Boynton Beach High officials changed their report Tuesday to include more than $39,000 in lost books, the second highest amount among all schools last year.
Boynton Beach High Principal Kathleen Perry said she's not sure what caused the mistake.
"We're trying to determine exactly where we had this problem," Perry said.Palm Beach Gardens High changed its report to include more than $16,000 in lost books.
"For some reason, it didn't get keyed in," Assistant Principal Raymond Ranghelli said.
Students who don't return textbooks - and don't pay for them - can be denied participation in extracurricular activities and, in the case of seniors, the graduation ceremony. They cannot be denied a diploma.
When a textbook is deemed lost or too damaged to be used, the school is responsible for paying 75 percent of the replacement costs, according to Meezie Pierce, director of the school district's instructional materials department. If a student doesn't pay, school administrators must glean the money for replacement books from the school budget - supported by taxpayer dollars - or collect excess money from fund-raisers.
But the schools are charged only if they report the books as lost, a system that district officials admit is difficult to enforce and verify."I send out the reports from the principals, that's all I can do," Pierce said. "I don't have any authority to do anything to a principal who doesn't pay.
"If they don't report their losses, then the books are not replaced," she said.
Eventually, when a school tries to purchase new books, district officials can compare the request to the school's reported inventory and identify unreported lost books.
"The system matches it up if they've not been reporting losses," Pierce said.
Neither the Martin nor St. Lucie County school districts report problems with lost textbooks. The Martin district doesn't track lost or damaged textbooks; it's up to individual schools to replace them, spokeswoman Cathy Brennan said. So far, it hasn't become a problem. Students must pay to replace lost textbooks, and rarely do school officials find a student unwilling or unable to pay for them, Brennan said.
The St. Lucie district also does not track how much is spent replacing existing textbooks, district spokeswoman Janice Karst said. She said those costs are budgeted along with the costs of new textbooks, which the district frequently orders to keep up with changing curricula. Karst said she doesn't know of any time when the costs of replacing textbooks has ever created a problem for the district. "It doesn't seem to be an issue here," she said.
There are times that we admit our deficits and do not expect others to pay for the problems we produce. Please consider the predicament in New York City.
City Fails to Collect Millions for WaterWhy would people think to pay their water bills? Few truly pay attention to the details of their daily doings. At work, they wallow in avoidance. Some seek the solace of blame. Excuses are abundant and this is at work. Imagine what occurs in people's personal lives. I invite each of us reflect, myself included. What do we focus on and why? When do we allow thoughts, words, and deeds to slide? Will we ever stop to examine the repercussions and if we do, will we willingly take responsibility for the role we play in our own lives.
By Anthony DePalma and Jo Craven McGinty
New York Times. December 12, 2006For years, New York City has failed to collect on millions of dollars in overdue water bills because its records are so riddled with factual errors and outdated information that pursuing deadbeats and delinquents has become virtually impossible.
An examination of the city’s water records by The New York Times revealed that, at least on paper, tens of thousands of property owners have not paid a penny for water in at least two years. Officials insist that debtors collectively owe hundreds of millions for water they used but never paid for.
But whether they are true deadbeats or customers with legitimate disputes, all debtors enjoy a virtual immunity because the city, unlike Boston or Los Angeles, will not use aggressive collection methods like service suspension because its records are so unreliable.
The city’s records show a family that owns more than two dozen properties in Brooklyn and Queens owes more than $1 million in water charges. The family blames it on broken meters and misunderstandings and has managed to make no payments in at least two years.
The owners of a 10-unit condominium building on East 50th Street, a few blocks from the Waldorf-Astoria, simply stopped paying their water bills about two and a half years ago. The city says they now owe more than $16,175. The owners say the meter readings are inaccurate. The city just keeps sending overdue notices.
Two doors away, the United Nations Mission of the Republic of Niger has ignored every water bill it has received since 1998 for its elegant town house, accumulating a debt of nearly $120,000, including penalties. It ignored repeated calls for comment. Eight other foreign missions on the Upper East Side are also in debt, and collectively owe the city about $230,000.
Joseph Mannino, the owner of a small building on Staten Island has a water bill of more than $260,000, which represents some 200 years of water use.
“There’s no way I could have used that much,” he said.
What efforts the city has made to collect on thousands of water debts have been made all the more difficult by a broken record-keeping system that even city officials cannot make sense of. Meters that were installed were never read. Buildings that were demolished over the years continued to receive bills. Water use that would have taken a century to run up was billed to one customer in a single year.
Deputy Mayor Daniel L. Doctoroff said in an interview that the city could not be proud of a billing and collection system with such “long standing and deeply ingrained” problems.
Yet, only in the past year have city officials begun examining ways to overhaul the system. They hope to install a $200 million automated meter-reading system, but that will not be in place until 2010.
The city’s records of just how much it is owed — $230 million on debts more than two years old and $400 million accumulated in the last two years — are really just estimates. The actual debts may be less, or more. While city officials insist the debts are substantial and real, no one believes they will be collected any time soon.
The records — which the city provided only after it was sued by The Times under the Freedom of Information Law — showed that more than 21,000 water accounts have been in arrears for at least two years, with more than 4,650 of those accounts delinquent for a decade or longer.
One consequence of the faulty system is that New Yorkers who do pay their water bills are bearing the burden of those who do not. In July, the city raised water rates by 9.4 percent, far more than had been projected. While higher insurance and financing costs contributed to the increase, the city Department of Environmental Protection, which runs the system, explained that “by far the biggest problem that is causing this proposed increase are the deadbeat homeowners who don’t pay their water bills.”
As I evaluate the entrepreneurial world, I wonder. So much survives with little thought. Businesses thrive while the workings wane. Fault can be found in every enterprise; yet, we accept this. Explanations are barely evident. At times, people do not bother to place blame; although when they do, it is tentative. Individuals only wish defer the focus from themselves. They want us to believe that they stake no claim in what comes.
I recall a poster that hung in the Miss Wellington's fourth grade classroom. The message held meaning for me then, and it still does. "Not making a decision is deciding!" Please ponder the proclamation, then decide for yourself. What will you do today, at work, as you travel the streets and avenues; what, more accurately, will you be at home?
Look through the ledgers and marvel . . .
Posted by Betsy L. Angert on December 26, 2006 at 11:11 AM in Business, Capitalism and Competition, Corporate Criminals, Corporate Profits, Economics, Ethics and Profits, Failure, General Motors, GM Short-term Solutions, Society, Success. Failure. | Permalink | Comments (0) | TrackBack
Accountability; History Textbooks Receive a Failing Grade ©
Authors and academician whose names appear on the textbook cover do not pen what is within. Dead authors do. Ghostwriters compose even more; their contributions are expansive. These indistinct individuals construct a convention. Then we, a trusting public, accept what these unknowns inscribe. What most of us believe is valid is not a universal veracity.
Things change in the translation, much to the chagrin of noted authors. When told that text within his book, “America: Pathways to the Present,” was essentially the same as that found in “A History of the United States,” written by the Pulitzer Prize-winning Historian Daniel J. Boorstin, Brooks Mather Kelley, and Ruth Frankel Boorstin, author, Historian Allan Winkler, stated “They were not my words.” He continued, “It’s embarrassing. It’s inexcusable.” Yet, he excused it.
Professor Winkler said he understood the editorial perils of textbook writing, but wanted to reach a wider audience. He said he was not motivated by money. Named authors share royalties, generally 10 to 15 percent of the net profits, on each printing of the text, whether they write it or not.
Allan Winkler, a Historian at Miami University of Ohio, who supposedly wrote the 2005 edition of “Pathways,” book with Andrew Cayton, Elisabeth I. Perry, and Linda Reeder, was now making history, though not necessarily writing it.
According to The New York Times, much of the text offered in the 2005 high school editions of each of these history textbooks was identical. In discussing the September 11, 2001 tragedy or the Persian Gulf wars the verbiage was effectively the same. We might conclude history no longer guides our textbook writings; power and money do. Surprise! Significant stories of eons gone by now must be short, sweet, and yes, even stup**.
The American Textbook Council reports, the problem is
what educators, critics, and journalists informally refer to as "dumbing down.” Many history textbooks reflect lowered sights for general education. They raise basic questions about sustaining literacy and civic understanding in a democratic society and culture. Bright photographs, broken format and seductive color overwhelm the text and confuse the page. Typeface is larger and looser, resulting in many fewer words and much more white space. The text disappears or gets lost. Among editors, phrases such as "text-heavy," "information-loaded," "fact-based," and "non-visual" are negatives. A picture, they insist, tells a thousand words.
What appears in black, white, and is read all over is not as it appears. Authors are not as noted, and facts are flimsy.
As editions pass, the names on the spine of a book may have only a distant or dated relation to the words between the covers, [it is] diluted with each successive edition.This according to people within the publishing industry. Authors themselves make similar assertions.
Again, the American Textbook Council states,
Textbook content is thinner and thinner, and what there is, it is increasingly deformed by identity politics and pressure groups.Apparently, Political Action Committees produce much of the literature. Politicians exert their power; they want those with these groups to vote for them. Money and the market are influential. A contract with a major school district is worth tens of millions of dollars in profit. If a State Department adopts a textbook series, the bucks will surely pour in. Publishing is a business and we know businesses have their own self-interest at heart.
Asking academicians to document a dynamic occurrence or two can deplete profits, and that would not be economically wise. Therefore, it is rarely done anymore. Historians may write the first edition, from there on, no one knows who authors a text.
Professor Winkler, one of the authors of “America: Pathways to the Present,” said he and his co-authors had written “every word” of the first edition, aiming to teach American history from a sociological perspective, from the grass roots up. But, he said, in updated editions, the authors reviewed passages written by freelancers or in-house writers or editors.He said the authors collaborated on their last major revision before September 11, 2001, working with editorial staff members in Boston. But he said that after the attacks, he was not asked to write updates and was not shown revisions.
“There was no reason in the world to think that we would not see material that was stuck in there at some point in the future,” Professor Winkler said. “Given the fact that similar material was used in another book, we are really profoundly upset and outraged.”
However, this practice is not a new one.
Susan Buckley, a longtime writer and editor of elementary and high school social studies textbooks who retired after 35 years in the business, said that “whole stables” of unnamed writers sometimes wrote the more important high school textbooks, although in other instances, named authors wrote the first editions. In elementary school textbooks, Ms. Buckley added, named authors almost never write their own text.What that role might be is illusive. It escapes many that read of this situation.She said even if named authors did not write the text, they had an important role as scholars, shaping coverage and reviewing copy.
Nevertheless, the concept and customs do not go unnoticed. The watchful eye of William Cronon, a Historian at the University of Wisconsin, Madison is aware of what is happening in the textbook publishing world. Mr. Cronon authored the statement on ethics for the American Historical Association.
He said, textbooks are corporate-driven collaborations efforts. The publisher governs the market. They have well-defined rights to hire additional writers, researchers, and editors. They may make major revisions without the authors’ final approval. The books typically synthesize hundreds of works without using footnotes to credit sources. The reason for these declaratory privileges is profit and a conciliatory stance to those in power.
Professor Cronon affirms,
“This is really about an awkward and embarrassing situation these authors have been put in because they’ve got involved in textbook publishing.”
Textbook publishing is an industry like all others; the driving force is the desire to increase earnings. Publishers must be innovative, imaginative; yet, they need not be truly instructive. It is assumed educators will do that. The printers of textbooks create a market regardless of a need. Publishing houses know they have a captive audience. Curriculums change little from semester to semester. However, the text is altered regularly. The publisher must create a demand so that they can offer a supply. They have bills to pay.
In a recent Washington Post article, Textbook Prices On the Rise, journalist Margaret Webb Pressler reported,
the California Student Public Interest Research Group found that the average release time between textbook editions is 3.8 years, regardless of whether the information has changed since the previous version. Of the textbooks surveyed, new editions cost 58 percent more than the older version, rising to an average cost of $102.44.
Publishing corporate bigwigs cut corners as they relate to production and quality; however, they never lower the prices. School districts know this, as do college students. Again, according to the Washington Post,
The National Association of College Bookstores says wholesale prices of college textbooks have risen nearly 40 percent in the past five years. And students are finding that many of the same books are sold overseas at much lower prices.
Yes, textbook publishing is quite beneficial. The printer of these volumes realizes great earnings. Textbook writing can also be quite a prize; authors satisfy their yearnings. A textbook writer may achieve fame and perhaps, further his or her fortune. Allan Winkler acknowledges this.
“I want the respect of my peers,” Professor Winkler said. “I’ve written monographs, biographies,” but these reach a limited audience. “I want to be able to tell that story to other people, and that’s what textbooks do.”Schoolbooks do tell a substantial story, though it may not be the tale Mr. Winkler or we expected.
Thus, I ask again, “Who writes our history?” The answer is, publishers, guided by profits, politicians promoting favorable policies, pressure groups, then historians. After all, Historians seeking acknowledgment from their peers do submit their anecdotes; however, these contributions are less important. Over time, historical accounts will be lost, just as our past is. Apparently, profits and power are our only presents [presence.]
• Author and Professor, James Loewen was kind enough to visit Be-Think and read this exposé. He offered his reflections, and I realized I was remiss in acknowledging Mr. Loewen in my missive. Now, I wish to present this prominent researcher and writer.
With thanks to James Loewen, the staff of the New York Times became aware of the conundrum existing in our schools. Dr. Loewen disclosed the fact that high school Social Science textbooks are not as they appear to be. It was his awareness for the sad the state of affairs that enhanced the knowledge of others. I wish to publicly acknowledge a wise and wonderful scholar, James Loewen, author of Lies My Teacher Told Me, Lies Across America, and now Sundown Towns. Please visit the James Loewen webpage and ponder further.
Read What is Written, if you choose . . .
• Schoolbooks Are Given F’s in Originality, By Diana Jean Schemo. The New York Times. July 13, 2006
• “America: Pathways to the Present,” By Andrew R. L. Cayton, Elisabeth Israels Perry, Linda Reed, Allan M. Winkler
• “A History of the United States,” written by the Pulitzer Prize-winning Historian Daniel J. Boorstin and Brooks Mather Kelley, Ruth Frankel Boorstin
• Allan Winkler, Organization of American Historians
• Daniel J. Boorstin 1914-2004 The Library of Congress
• America: Pathways to the Present, This Prentice Hall "History" Text Is Essentially a Propaganda Tract By John Fonte. The Textbook League.
• Widely Adopted History Textbooks American Textbook Council.
• American Textbook Council.
• Testimony of Gilbert T. Sewall, U.S. Senate Health, Education, Labor and Pensions Committee hearing. American Textbook Council. September 24, 2003
• Doing It by The Book, Textbook Publishers Profiting from Students' Loss. By Tim Paulson. Corporate MOFO.
• Textbook Prices On the Rise, Frequent New Editions, Supplemental Materials Drive Up Costs, By Margaret Webb Pressler. Washington Post. Saturday, September 18, 2004
• California Student Public Interest Research Group
• Frequently Asked Questions About Textbooks The Association of American Publishers (AAP)
• Directory of Publishers and Vendors, Education Publishers, AcqWeb.
• Getting Started Creating A Textbook, By David A. Rees, Southern Utah University. Society of Academic Authors.
• When Government Writes History, A Memoir of the 9/11 Commission. By Ernest R. May. The New Republic. May 16, 2005
Posted by Betsy L. Angert on July 13, 2006 at 04:00 PM in American Textbook Council , Capitalism and Competition, Corporate Profits, Daniel J. Boorstin, Historian , Economics, Education, Education or Economics, Ethics and Profits, Lies, School Days, Teach The Children, Textbooks , Textbooks Receive a Failing Grade , Who Writes Our History? , William Cronon, Historian | Permalink | Comments (8) | TrackBack
