Tag Archives: Government

Peter Drucker Has Some Sage Advice For How Execs Should Respond To Charlottesville

BOOK REVIEW

Concept of the Corporation, The Practice of Management, The Effective Executive, Author: Peter Drucker.
The End of Economic Man, Author: Peter Drucker.

By Rick Wartzman – Drucker advised countless executives on how to more effectively run their companies.

Along the way, however, Drucker never lost sight of his real aim: not to help companies make more money (although he recognized that without turning a steady profit, it was impossible to be sustainable) but to encourage business to fulfill its role as a leading institution of society.

Drucker knew firsthand, after all, what happens when our institutions don’t act as unflinching protectors of our most basic values: “Terror,” as he put it, is apt fill the void.

“To make our institutions perform responsibly,” Drucker asserted in his 1973 masterpiece Management: Tasks, Responsibilities, Practices, is “the only safeguard of freedom and dignity.”

The obligation of business—which, Drucker reminded us, “is one of the very few institutions . . . that is not nationalistic in its worldview” and, at its best, “brings together” all kinds of people and “unites them in a common purpose.” more> https://goo.gl/QvrBNF

Investing in the next generation

A bottom-up approach to creating better outcomes for children and youth
By Bruce Katz and Ross Tilchin – The American dream is built on the promise of upward social mobility. Over the course of the past 30 years, the vast majority of our population has seen mobility rates stagnate.1 For too many, the American dream has stalled.

Making greater and more effective investments in children and youth will be the best way to improve social mobility throughout the nation. Research has demonstrated the positive long-term effects of providing a specific set of coordinated interventions from “cradle to career.” Despite the conclusive evidence, our nation has been unable to provide those in need with access to the right kinds of services.

The time to act is now. The question is, who will lead the effort to expand these proven strategies? Over the past decade, it has become apparent that we cannot rely upon the federal government or the states. Washington and many state governments have been hijacked by partisanship, leading to paralysis on or hostility toward many of the policies and interventions necessary for improving outcomes for children and youth.

Locally driven approaches to investing in children and youth are a part of a larger national trend. Over the past decade or so, cities and metropolitan areas have risen to the forefront of national problem solving across a wide range of policy areas. more> https://goo.gl/pj8f25

Did Google and GoDaddy Set a Dangerous Precedent by Dropping a Neo-Nazi Website?

By Jack Denton – GoDaddy’s decision comes at a particularly fraught moment in the debate over whether freedom of speech can be reconciled with attempts to quell hateful discourse and actions. Additionally, with the Internet becoming the preferred mode of public discourse, abusive trolling and rampant falsehoods have led some to call for increased accountability from Internet service providers and social media companies for the content they host and support.

The central question of this debate continues to be: Is freedom worth its consequences?

Preventing people from reaching the Daily Stormer’s website does nothing to actually combat the ideas. There’s the old, famous saying that the remedy for bad speech is more speech—it’s not silencing the bad speech. Hate speech is legal in the United States. And people are going to continue to express themselves in awful ways, and cutting off the domain name isn’t helpful for the dialogue.

Any attempt to try to hold service providers responsible is absolutely bound to backfire. In the marketplace of ideas, we need to have exposure to all sorts of ideas. Good ones, bad ones, fake ones—all of them are valuable in their own way. The reader is the only one whose judgment matters.

The problems in Charlottesville were not problems of speech, they were problems of violence. more> https://goo.gl/YBkDkM

In 1939, I didn’t hear war coming. Now its thundering approach can’t be ignored

BOOK REVIEW

Don’t Let My Past Be Your Future, Author: Harry Leslie Smith.

By Harry Leslie Smith – Because I am old, now 94, I recognize these omens of doom.

Chilling signs are everywhere, perhaps the biggest being that the US allows itself to be led by Donald Trump, a man deficient in honour, wisdom and just simple human kindness. It is as foolish for Americans to believe that their generals will save them from Trump as it was for liberal Germans to believe the military would protect the nation from Hitler’s excesses.

Britain also has nothing to be proud of. Since the Iraq war our country has been on a downward decline, as successive governments have eroded democracy and social justice, and savaged the welfare state with austerity, leading us into the cul de sac of Brexit. Like Trump, Brexit cannot be undone by liberal sanctimony – it can only be altered if the neoliberal economic model is smashed, as if it were a statue of a dictator, by a liberated people. more> https://goo.gl/HaqHQ7

Are Index Funds Evil?

A growing chorus of experts argue that they’re strangling the economy—and must be stopped.
By Frank Partnoy – Index funds have grown exponentially since John Bogle founded Vanguard in the mid-1970s.

The top three families of index funds each manage trillions of dollars, collectively holding 15 to 20 percent of all the stock of major U.S. corporations. Best of all for their investors, index funds have consistently beaten the performance of stock-pickers and actively managed funds, whose higher fees may support the Manhattan lifestyle of many bankers, but turn out not to deliver much to customers.

Concerns about the potential dangers of shareholder diversification first surfaced back in 1984, not long after index funds themselves did. Julio Rotemberg, then a newly minted economist from Princeton, posited that “firms, acting in the interest of their shareholders,” might “tend to act collusively when their shareholders have diversified portfolios.” The idea, which Rotemberg explored in a working paper, was that if investors own a slice of every firm, they will make more money if firms compete less and collectively raise prices, at the expense of consumers. Knowing this, the firms’ managers will de-emphasize competition and behave more cooperatively with one another. more> https://goo.gl/AWXivG

Is America Headed for a New Kind of Civil War?

By Robin Wright – The more relevant question after Charlottesville—and other deadly episodes in Ferguson, Charleston, Dallas, St. Paul, Baltimore, Baton Rouge, and Alexandria—is where the United States is headed. How fragile is the Union, our republic, and a country that has long been considered the world’s most stable democracy?

The dangers are now bigger than the collective episodes of violence. America’s stability is increasingly an undercurrent in political discourse.

Based on his experience in civil wars on three continents, Keith Mines cited five conditions that support his prediction: entrenched national polarization, with no obvious meeting place for resolution; increasingly divisive press coverage and information flows; weakened institutions, notably Congress and the judiciary; a sellout or abandonment of responsibility by political leadership; and the legitimization of violence as the “in” way to either conduct discourse or solve disputes. more> https://goo.gl/W6awUm

Related>

The Psychology of a Nuclear Standoff

By Tom Jacobs – The “nuclear taboo” has held for 70 years for two reasons, according to Jacques Hymans: “the enormity of the decision of use nuclear weapons,” and the unpredictability of the consequences of doing so. Nevertheless, he warns, these are dangerous times.

New nuclear states have always been highly interested in trying to use their weapons as means of compellence, i.e. threats to get some benefit. New leaders have also had such tendencies. This is understandable, because it takes time and experience to accept the counterintuitive reality that the biggest bomb in the world is mostly useless as a military weapon, and therefore also useless as a means of compellence. So, history teaches us that both the U.S. and North Korea at present are liable to try to push their nuclear luck. That makes for a dangerous situation.

The chances are higher that the U.S. will launch first. But this would be a terrible humanitarian catastrophe and the U.S. would lose Asia politically for a hundred years. more> https://goo.gl/CtHxCU

Why a Consumption Tax May not Make any Sense at All

By Steve Roth – You often hear calls out there — mostly from Right economists but also from some on the Left — for a consumption tax in the U.S. As presented, it’s a super-simple idea: tally your income, subtract your saving, and what’s left is your consumption. You pay taxes on that.

We want to encourage thrifty saving and discourage profligate consumption, so what’s not to like?

Start with a simple pared-down household. The only accounting complication is that they own a house.

How much did this household “save”? Should the interest payments count as consumption? The principal payments almost certainly should not. But what about home maintenance? A new paint job increases your home’s asset value. Should you depreciate that asset value over some years? Or say you buy new appliances for your kitchen: You’re cash out of pocket, but your home is worth more. Are those purchases “consumption”?

This notion of some simple tally of your “saving” starts to look more complicated.

The tuition line raises a particularly vexing question, and brings us back to the second question: what economic effects would we see from a consumption tax, under various accounting and taxation rules? Clearly, if you tax tuition, you discourage education.

And consider more-prosperous families paying for private school. Are those families “consuming” more education than public-school families? Those households would be especially hard hit if tuition counts as taxable consumption — as would those private schools. Is that A Good Thing? more> https://goo.gl/LZSRZd

Why Is Donald Trump Still So Horribly Witless About the World?

By Robin Wright – “The President has little understanding of the context”—of what’s happening in the world—“and even less interest in hearing the people who want to deliver it,” Michael Hayden, a retired four-star general and former director of both the C.I.A. and the National Security Agency, told me.

“He’s impatient, decision-oriented, and prone to action. It’s all about the present tense. When he asks, ‘What the hell’s going on in Iraq?’ people around him have learned not to say, ‘Well, in 632 . . . ’ ” (That was the year when the Prophet Muhammad died, prompting the beginning of the Sunni-Shiite split.)

Trump’s policy mistakes, large and small, are taking a toll. “American leadership in the world—how do I phrase this, it’s so obvious, but apparently not to him—is critical to our success, and it depends eighty per cent on the credibility of the President’s word,” John McLaughlin, who worked at the C.I.A. under seven Presidents, from Richard Nixon to George W. Bush, and ended up as the intelligence agency’s acting director, told me.

“Trump thinks having a piece of chocolate cake at Mar-a-Lago bought him a relationship with Xi Jinping. He came in as the least prepared President we’ve had on foreign policy,” McLaughlin added. “Our leadership in the world is slipping away. It’s slipping through our hands.” more> https://goo.gl/Nza7eC

Can Government Earn Citizens’ Trust?

BOOK REVIEW

Can Governments Earn Our Trust? Author: Donald F. Kettl.

By Donald F. Kettl – The foundation for building trust begins with the argument for transparency. The central idea, developed during the Enlightenment, is that government’s legitimacy builds on the consent of the governed. But, to give consent, citizens must know what government is doing and find effective levers of influence.

James Madison, one of America’s most distinguished founders, and later the country’s fourth president, wrote in Federalist 51, part of a series of papers devoted to making the case for the new American Constitution: “If angels were to govern men, neither external nor internal controls on government would be necessary. In framing a government which is to be administered by men over men, the great difficulty lies in this: you must first enable the government to control the governed; and in the next place oblige it to control itself.”

Of course, men are not angels, so democracy requires ways of helping the governed to control government. That begins, in the minds of many theorists and citizens alike, with the most important and fundamental tool to build trust: transparency.

The underlying assumption is that the more information that’s available to the public, the more accountable and better-performing government will be.

In the United States, the Sunlight Foundation is singularly devoted to making all government information open and available in real time. more> https://goo.gl/m71Cs4