Thank You for Proving My Point….

It seems that each new day brings new evidence that too many Americans haven’t the foggiest idea what’s in the U.S. Constitution or what its provisions mean.

Exhibit #1: the large cross erected on public property in Dugger, Indiana. The huge cross with “Jesus Saves” prominently printed on it has been challenged by Americans United for Separation of Church and State. The town fathers–evidently recognizing a loser when they see one–agreed to move it rather than spending tax dollars on expensive and hopeless litigation. But residents are up in arms. My favorite quote came from the fellow who said people who were offended could just look elsewhere.

How much do you want to wager that he’d feel differently if the symbol on public property praised Satan? or Allah? or Karl Marx?

This is a recurring battle. As the courts routinely point out, the rules are pretty clear: government cannot sponsor or endorse religion. Government cannot sponsor or endorse atheism, either. Government must stay neutral when it comes to the expression of political or religious beliefs. Allowing a religious symbol on public property is an impermissible endorsement of that religion–exactly the sort of favoritism the Establishment Clause of the First Amendment forbids.

This sort of conflict is easy enough to resolve. Move the cross to private property. People will still see it.  Folks who reject this relatively simple fix are really giving away the game–no matter what they claim, they don’t just want people to see their message. They want government to endorse their message. They want special status and recognition for their religious beliefs.

Exhibit #2. Micah Clark. Again.

The AFA has its panties in a bunch–as usual–because the Indiana Chamber of Commerce is considering opposing the mis-named “Marriage Protection Amendment.”

Why oh why would the Chamber “want to see marriage unraveled and destabilized” in Indiana? Micah wants to know. Here’s a clue, Micah–that “destabilization” hasn’t happened anywhere that same-sex marriages are legal. Quite the opposite, in fact–Massachusetts, the first U.S. state to recognize same-sex unions, has one of the lowest divorce rates in the country.

Leaving aside the hysterical rhetoric and tortured “evidence” in the AFA’s Weekly Email, one sentence leapt out at me: “It is the people of Indiana who should decide on marriage.”

No, Micah, it isn’t.

In our system, we don’t get to vote on other people’s fundamental rights. We don’t get to vote to segregate black people, we don’t get to vote against interracial or interfaith marriages. We don’t get to vote to abolish jury trials, or to override restrictions on search and seizures. We don’t get to vote to make people Baptists or Episcopalians.

Justice Jackson said it best, many years ago, in West Virginia Board v. Barnette:

The very purpose of a Bill of Rights was to withdraw certain subjects from the vicissitudes of political controversy, to place them beyond the reach of majorities and officials and to establish them as legal principles to be applied by the courts. One’s right to life, liberty, and property, to free speech, a free press, freedom of worship and assembly, and other fundamental rights may not be submitted to vote; they depend on the outcome of no elections.

Maybe you don’t agree that people who are different from you should have the same civil liberties and rights that you enjoy. Fine. Don’t agree with it. But it is the law of the land, and you really ought to know that.

I wonder what new evidence tomorrow will bring….

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Framing the Wrong Argument

I like David Brooks. I even agree with a significant part of what he writes. But his column in yesterday’s New York Times not only missed the boat, it swam in the wrong ocean.

Brooks characterized the Obama ads attacking Romney’s performance at Bain as an attack on capitalism, and essentially framed the current Presidential race as a contest between “big government” and “capitalism.” This is wrong on so many counts, it’s hard to know where to begin.

I am an ardent believer in capitalism and free markets.  In my opinion, Mitt Romney is the poster boy for a destructive and distorted vision of market economics that is giving capitalism its current bad name.

The sort of capitalism that works, the capitalism that originally made this country the most productive in the world, is characterized by transparency and a level playing field. Transparency means marketplaces with willing buyers and willing sellers who both possess the information relevant to their transaction. There are obviously areas–like healthcare–where that sort of information symmetry is impossible; in such areas, markets cannot work. Markets work extremely well, however, when buyers and sellers both have access to sufficient information on which to base their economic behavior.

The metaphor of a level playing field goes well beyond parity of information, however. A level playing field requires rules against cheating–and authorities willing and able to enforce those rules. Crony capitalism is the antithesis of a level playing field. Gaming the system by sending your lobbyists to Washington to buy influence, obtain favorable tax treatment, gut regulations and subsidize your endeavors are hallmarks of oligarchy. Such behaviors bear no relationship to a true market economy.

The notion that Mitt Romney represents true capitalism is delusional. So, for that matter, is the charge that Obama represents “big government.” As even the Wall Street Journal has conceded, growth in government spending under the Obama administration has been the lowest since the Eisenhower administration. The charge of “big government” rests on two aspects of Obama’s presidency: the Affordable Care Act (aka “Obamacare”) and his continuation of George W. Bush’s policies on surveillance and national security.

I agree with critics of Obama’s national security policies. Those policies infringed civil liberties when Bush inaugurated them, and they are no less ill-conceived and dangerous simply because the President pursuing them can pronounce “nuclear.” But the widespread belief that the ACA is anti-capitalist and pro “big government” rests on the same fundamental misapprehension as Brooks’ column: that anything done by the private sector is by definition “capitalism.”

The basic question to be answered when constructing a government is: what is its role? What tasks must we do collectively,through this governing mechanism we have created, and what tasks should be left to individuals, businesses and/or nonprofit organizations?

In areas where markets work, we should let them. But there are areas where markets don’t work, or work only with substantial assistance. Think public safety, national defense, infrastructure provision. Healthcare is an area where markets demonstrably do not work and have not worked. Every other western industrialized nation has come to that conclusion. The cost of ignoring that reality is draining our treasury and increasing the inequities that are splintering our polity.

Recognition of reality is sanity, not preference for “big government.”

If we really need to frame the electoral choice we face, I’d suggest “a contest between ‘I’ve got mine’ and the common good.”

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Absence of Strategy

Eugene Robinson makes a point that many political junkies are pondering:

Romney has spent the better part of a decade running for president. Did it never occur to him that if he ever won the Republican nomination, surely there would come a time when he was under pressure to release multiple years’ worth of tax returns? Did he think everyone would forget that it was his own father, George Romney, who set the modern standard for financial disclosure? Did he not recall that when he was being considered for the vice presidential nod four years ago, he furnished tax returns spanning more than two decades to the John McCain campaign?

There are two parts to this puzzle. One, of course, is the tantalizing question of what is in those tax returns? The general conclusion at this point is that it must be something really damaging, else why would Romney prefer being criticized for lack of transparency rather than incur whatever criticisms would follow disclosure.

The second part of the puzzle is actually more damaging. As Robinson notes, Romney has been running for President for what seems like forever–surely he and his campaign staff knew he’d be asked to provide tax information that has become a routine and expected part of candidate disclosures. In the decade he’s been running, he surely could have tailored his taxes so as to avoid major issues when they were ultimately made public. This lack of foresight is ultimately more troubling than whatever tax avoidance or other issue might emerge from disclosure of his tax returns.

Among the qualifications for the nation’s highest office, an ability to think strategically–to see the likely long-term consequences of a course of action, and plan accordingly–is vitally important.

If a candidate can’t even think ahead sufficiently to act in his own self-interest, how can we trust him to steer a course for the country?

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I Think We’re Onto Something….

Usually, when I am hot and bothered about something, other people aren’t. (Something about me has always been out of step…) I’m used to people shrugging and yawning–and occasionally suggesting therapy. So this article in yesterday’s Fort Wayne Journal Gazette was a very pleasant surprise.

In the interests of shameless self-promotion, I am yielding todays blog post to the Journal Gazette, and encouraging you to read the whole thing!

On a different note, we’ve been having internet connectivity problems at my house. This periodic lack of access throws me into  panic and depression. I guess addiction isn’t limited to drugs….Anyway, posting will be iffy until it’s fixed, which we hope will be today.

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Ownership

We talk a lot about ownership in America: George W. Bush promoted an “ownership society;” people trying to change institutional systems are urged to help those involved to “own” the changes.

The disconnect comes when we consider corporate ownership–which, increasingly, doesn’t exist in any meaningful way.

Think about the origins of the business corporation. A Henry Ford, an Eli Lilly, a J. Randolph Hearst would begin an enterprise that continued to reflect upon its founder whether or not that founder retained majority ownership (which most did). Other shareholders profited or not, participated in the election of the board or not, attended annual meetings or not, but it was understood that they weren’t owners in the way we understand that word.

A business school colleague once described today’s shareholders and bondholders as two different kinds of lenders. The guy who purchases corporate bonds wants priority and a secure rate of return. They guy who buys shares is gambling, in a sense: he’s willing to risk a greater downside in hopes of a bigger return. Neither of them is really interested in the company or its business, except to the extent necessary to make an investment decision.

Meanwhile, the company is managed by hired guns who rarely have any sort of emotional connection to the corporation, and whose own “ownership” is limited to stock options and other incentives–incentives that tend to reward quarterly rather than long-term performance.

Real ownership is so different.

Last week, the Indianapolis Public Library hosted a small reception for the Lacy family, one of the increasingly rare exceptions to the picture I’ve just painted. The impetus for the reception was the family’s donation of a book–a history of the company–to the Indiana collection. The book traced the company from its origins manufacturing corrugated cardboard boxes to its current incarnation as LDI–Lacy Diversified Industries. During the brief talks, someone made the point that multi-generational family ownership like LDIs currently represents perhaps 3% of American businesses.

If you are thinking, “so what?” think about the contributions made to this community by family-owned companies like LDI or MacAllister Machinery. These are enterprises still run by their founders, or the children and/or grandchildren of their founders. Such businesses are connected to this community in multiple ways that the more impersonal, shareholder-owned companies and their managers are not. They are also far more likely to make business decisions based upon the long-term interests of the enterprise, rather than on the next quarterly or annual report. As a result, they are more likely to be corporate good citizens.

Mitt Romney to the contrary, corporations are not “people, my friend.” But a dwindling number are owned by identifiable people. And that kind of ownership is infinitely preferable to the lottery-ticket shareholder mentality that has largely replaced it.

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