U.S. Chamber of Commerce

Unethical Quote Of The Month—But Awfully Revelatory, If You Have The Integrity To Accept What It Means—California Gov. Jerry Brown

/ Jack Marshall / 25 Comments

0404_NWS_LDN-L-BROWN-DC

“Economically, minimum wages may not make sense. But morally, socially, and politically they make every sense because it binds the community together to make sure parents can take care of their kids.”

—–Governor Jerry Brown on April 4, as he signed into law a phased state-wide increase in the minimum wage to $15 dollars an hour.

As Commentary wrote in reaction to this jaw-dropping admission following an irresponsible act, “Good intentions have always inoculated the left against criticisms of the consequences of their policy preferences.” This has become a culture-wide, self-destructive malady during the Obama administration, led by the President. Lately, Obama has become increasingly open about it, as when the President killed the Keystone pipeline citing climate change concerns while admitting that doing so would have no likely effect on climate change, but most of his “signature policies” are similar. The Iran deal bids fair to leave Israel as a smoldering wasteland, and the Iranian government has gone out of its way to demonstrate that it cannot be trusted while already violating, as even Obama admits, the “spirit” of the deal, but God Bless Obama for trying to restrain its nuclear ambitions.

The Affordable Care Act is failing in virtually every respect, fulfilling most of the dire predictions of its opponents, but this is still an “achievement” because, and it’s true, more Americans are insured than before. Obama’s Education Department’s sincere—I’ve no doubt about it—effort to make women feel supported and safe on college campuses seeded extensive due process abuse and discrimination against male students, and the most-gender divided campus community since the Seventies. His civil rights policies and rhetoric have created the worst racial divide since the early 1960’s. The intentions in all of these cases were, at least arguably, impeccable and admirable, and apparently for committed progressives, it is that, and not that the policies in pursuit of Panglossian goals have been societally disastrous, that matters.

The mass insanity of raising the minimum wage is the apotheosis of this mania. Note that I am trying to attribute the best possible motives with this: I have read many conservative writers who believe that the left knows the policy will be catastrophic economically, but because it will be politically useful in the short-term, they don’t care about the long-range consequences. Admittedly, statements like Brown’s makes this difficult for me not to agree with them, except that it is usually considered stupid to tell voters that what you are doing makes no sense.

To state what should be obvious, if  large minimum wage increases don’t make sense economically, that means they are bad policy, incompetent, and thus unethical. And we know–know—that they do not make sense economically.

Here’s economist Robert Samuelson: Continue reading →

Ethics Heroes: Five Democratic Economists

/ Jack Marshall / 4 Comments
Senator Warren, who is always right.

Senator Warren, who is always right.

Senator Elizabeth Warren (D-Mass)  was annoyed that Robert Litan, a nonresident and unpaid economics fellow at the reliably liberal Washington think tank, the Brookings Institute, dared to author a study critical of financial advisor regulations being pushed by Warren and the White House. Thus she sent a letter to Brookings last week, challenging the independence of the study and the integrity of Litan, since the study was, as Litan states up front, “supported by the Capital Group, one of the largest mutual fund asset managers in the United States.”

Warren called the report “highly compensated and editorially compromised work on behalf of an industry player seeking a specific conclusion.”

You know, unlike the various donors to Warren’s political war chest, who are not trying to buy specific policies and votes from her.

Literally hours after receiving the letter, Brookings, knowing which side of the bread its butter was on, dutifully forced Litan to resign.

The issue isn’t whether the policy Warren wants is a good one or not; personally, I tend to agree with Warren on the need for the regulation, which would make 401(k) and 403(b) advisors as well as other compensation-related retirement plan advisors be subject to fiduciary duties. the issue is Warren’s embrace of the increasingly popular tactic from the Left of dealing with adversaries by silencing them. Continue reading →

How the Lack of Ethics Cripples Democracy, Reason #2: Corporate Executive Greed

/ Jack Marshall / 11 Comments

 

"Let's see...that's one schilling for Cratchet, 280 for me..."

The average compensation for chief executives of the 500 largest U.S. corporations is going up again.

According to Governance Metrics International, the average compensation for the CEOs, including salary, bonus and benefits plus the exercise of stock options, the vesting of stock grants and retirement benefits, was just under $12 million in 2010, up 18 percent from 2009. As Washington Post business writer Steve Pearlstein observes in his column this week, if you believe this is justified by market forces and common sense, “then you must also believe two things: First, that none of these guys would do the same job for a nickel less. Second, that the value of the chief executive went up 18 percent last year while the value of average workers in their companies changed very little.”  “And,” concludes Pearlstein, “if you believe that, you are a fool and an ideal candidate for an open seat on an S&P company board of directors.” Continue reading →

The Unethical Deficit Debate, a Cause for Despair

/ Jack Marshall / 2 Comments

Our future, thanks to Washington, D.C.

If the bi-partisan dishonesty and unethical conduct surrounding the budget showdown last week didn’t cause you to despair, then you weren’t paying attention:

  • At a time when the federal deficit threatens the long-term (and not all that long, either) solvency of the U.S., risking quality of life, world leadership and security while placing us under the thumb of China, a Machiavellian adversary, both parties—and the President— opted for ideological point-scoring and demagoguery rather than serious explication of the issues.  Irresponsible cowards.
  • The government was brought to the brink of a shutdown over a pathetic, meaningless, 39 billion dollars of cuts that Democrats called “draconian” and Republicans and Obama trumpeted as the “largest budget cuts in U.S. history”. They were draconian only if you think like Senate Majority Leader Harry Reid, who argued that Republicans were heartless to put “cowboy poetry” on the cutting block, and if, as is increasingly looking to be the case,  the Democrats are willing to let the country stay on the road to bankruptcy as long as it also leads them to power. The cuts were the “largest” only in their inflated figures: the budget was cut close to 50% after World War II. Liars and frauds.
  • Even if it were truly”the largest,” the heralded 39 billion dollars cut represented an infinitesimal dent in the overall budget and will have no appreciable effect on the deficit at all. It took a near shutdown to accomplish that. Easy Quiz: what are the chances of our current leaders displaying the political courage to make the substantial, genuine, painful cuts that all serious analysts agree are imperative to stave off financial ruin? Liars and cowards.
  • After all of the drama, after all the condemnation and hype, after “draconian” and “largest ever,” and after the President joined the charade, the no-nonsense Congressional Budget Office announced that by its calculations, the so-called cut was mostly fiction. It boiled down to only $352 million, less than 1% of a 39 billion that was inadequate to begin with. Incompetents.
  • The Democrats chuckled into their sleeves; the Republicans cried that they had been deceived, as if legislators don’t have the resources to find out what the money in the budget they are charged with approving actually pays for. Liars, incompetents and fools.

For me, the low point was President Obama’s speech at George Washington University, announcing his engagement—finally!—in the deficit-cutting debate while resorting that old Democrat stand-by, class warfare; blaming the Bush tax cuts, irresponsible but only one of many contributors to the deficit crisis; and  pledging to cut expenses by ending waste, fraud and abuse while simultaneously stating that the deficit couldn’t be cut by addressing waste, fraud and abuse.  It wasn’t any of those cynical moments that caused me to lose hope, however. It was the President’s insistence that the deficit cutting measures must not interfere with his highest priorities…such as building “new roads.” Continue reading →

Outrageous Corporate Conduct 2011: Transocean’s Unconscionable Bonuses

/ Jack Marshall / 11 Comments

"Sure, but other than THAT: great night at the theater, right?"

I believe that much of the time the corporate sector is unfairly treated by the media, politicians, and the public. Part of this conviction arises from my experience working at the U.S. Chamber of Commerce, directly under its current president when he was a rising young Turk. I dealt with corporate executives every day, and got to see the challenges of big business from their side. Most of the time, they struck me as genuinely concerned about workers, communities, fairness, while believing, of course, that an unfettered private sector was in the economic interest of everyone.

Increasingly, however, I see corporate behavior that is so arrogant, so transparently greedy, so contemptuous of the public’s intelligence, so blatantly, obnoxiously wrong that I wonder if it was all a dream. There was AIG, accepting billions from American taxpayers to save it from the consequences of its own fiduciary crimes, immediately spending some of it on lush retreats and parties for its executives. There were the leaders of Goldman Sachs, telling gape-jawed U.S. Senators that, no, they didn’t see anything unethical about selling their trusted clients investment products so awful that the company made money betting on their failure. There are the U.S. banks, hoarding their money and refusing to refinance mortgages that were unconscionable to begin with,  preferring to make the nation’s economic problems worse by foreclosing on families’ homes rather than making a good faith effort to undo a human and social catastrophe that was substantially of their own making.

Now comes the news that Transocean Ltd., owner of the Deepwater Horizon oil rig, has announced that it is giving millions of dollars in bonuses to its executives after “the best year in safety performance in our company’s history.”  Which seems perfectly reasonable, unless you want to make a big deal over that one little Gulf oil spill incident last April…you know, the one that began when a Transocean oil rig exploded, killing eleven people including nine Transocean employees. Continue reading →

The Problem With Multi-Culturalism

/ Jack Marshall / 17 Comments

One of many abominations we can blame on Jimmy Carter is the United States’ blessedly half-hearted embrace of multi-culturalism, which Jimmy and his acolytes believed was enlightenment from Europe when in fact it was a disease. This was linked to the ethical value of tolerance, which was in turn used to bludgeon into submission anyone who committed the politically incorrect crime of criticizing conduct that was antithetical to American values engaged in by citizens from other nations.

Civilization needs standards, and culture is the setting of standards, ethical and otherwise. Multi-culturalism is a compact oxymoron that makes society’s standards schizophrenic, impeding efficiency, fairness, and consensus about right and wrong. “Tolerance” requires acceptance of the intolerable, or in its most common permutation here, tolerating the intolerable practices that progressives would like to see established here, while somehow reasoning that other practices that progressives don’t admire shouldn’t qualify for “tolerance.” Continue reading →

Ethics Heads-Up: When the President Talks About “Investment in Infrastructure,” Pay Attention

/ Jack Marshall / 5 Comments

Yesterday, a massive water main rupture shut down part of the Washington area Beltway, tying up traffic and swamping cars. From the Associated Press story:

“At one point, water from the broken main shot eight or nine feet in the air, said Lyn Riggins, a spokeswoman for the Washington Suburban Sanitary Commission. There was significant damage to the office park, with chunks of asphalt strewn across the parking lot, building windows shattered and three cars filled with water.

“It looks like somewhere where you would go white water rafting,” Riggins said.”

Advance reports discussing President Obama’s State of the Union message tonight note that he will be talking about, among other things, investing the nation’s resources on infrastructure renewal: roads, sewers, bridges and more. Already, Republican budget hawks and the conservative talk shows are mocking this as simply a euphemism for more “out of control spending.”

Addressing this country’s dangerously decrepit infrastructure will be expensive all right, but it is definitely an investment, and not undertaking it immediately is irresponsible, short-sighted, dangerous and foolish. For a quick refresher on why the neglect of U.S. infrastructure has been a scandalous breach of duty  of duty by generations of U.S. leadership, read this.

Schemes, Slander and Deception: The Most Unethical Maneuvers of Campaign 2010

/ Jack Marshall / Leave a comment

Well, I have to admit they were creative. And despicable.

2010’s most unethical maneuvers ran the gamut from lying to zombie exploitation, from false identity to extortion. Unfortunately, most of the worst stunts were pulled by or on behalf of Democrats; I say unfortunately because I try awfully hard to keep these kinds of lists in partisan balance. But the Democrats and their progressive fans were especially slimy this time around, and it it figures. When the going gets tough, the tough get unethical, and it is the Democrats who are facing ballot box carnage. They have been pushing the envelope, to say the least, in their campaign tactics, and I think it probably made their situation more dire rather than less.

Here, in reverse order of ethical outrageousness, are the Ten Most Unethical Maneuvers of Campaign 2010: Continue reading →

Stay Classy, Mr. President: It’s Part of Your Job

/ Jack Marshall / 3 Comments

Appearing on PBS’s “Inside Washington,” this week, veteran Democratic media cheerleader Mark Shields reached the conclusion that other Beltway pundits on the Left and the Right had reached before him: Democrat  accusations that the U.S. Chamber of Commerce is pumping foreign contributions into domestic campaign ads, in violation of Federal law, are baseless, and worse.  “It was absolutely fallacious on their part,” said Shields. “And they made it up, the White House did.”

President Obama, in his campaign appearances, has continued to suggest that this illegal tactic is occurring. The facts the accusation is based on was revealed by White House advisor David Axelrod when he repeated the accusation to an incredulous Bob Shieffer on last Sunday’s “Face the Nation” on CBS. Shieffer asked Axelrod if he had any evidence this was true, and Axelrod’s replay was,”Well, do you have any evidence that it’s not, Bob?” He then called upon the Chamber to prove a completely unsubstantiated claim wrong. This is, of course, a small bore version of Adolf Hitler’s unethical “Big Lie” tactic. Hmmmm…where else have I heard this approach used recently? Oh, I remember: “If Barack Obama really is a U.S. citizen, why doesn’t he prove it?” One would think the White House and President Obama would find this tactic beneath them.

The sad fact is that in the past few weeks, almost nothing has been beneath the President’s dignity. Continue reading →

Blame Everyone for Infrastructure Ruin: Unethical, Irresponsible Priorities from Reagan to Obama

/ Jack Marshall / 4 Comments

In the early Eighties, I oversaw an independent study funded by the Highway Users Federation and the National Chamber Foundation called “Transport Tomorrow,” exploring the immediate need for transportation infrastructure repair and expansion in all modes of transportation: roads, railway, waterway, and airports. In the process of learning how dire the need for massive construction and repair was if America’s future commercial needs were to be met, the study commission made a disturbing discovery: urban water and sewer systems were crumbling too. There was literally not enough money to fix all the roads, bridges, tunnels, water mains and sewer pipes that had to be fixed, and the consequences of not doing so would be economic paralysis and worse, disease and even social unrest.

In the face of this looming and undeniably real disaster, the Reagan Administration did—pretty much nothing. Neither did the Bush, Clinton and Bush II administrations, and even the Chamber of Commerce failed to make infrastructure repair one of its key issues. Oh, there were new projects, of course, and when a major bridge started to dump cars into rivers it was repaired. Holes were patched, pipes were replaced here and there. But the full-fledged commitment to the unsexy and incredibly expensive job of keeping the infrastructure sufficient to meet the needs of the nation, and protecting it from the ravages of use and time was deferred, and deferred, and deferred. Something was always more important: wars…tax cuts…the environment…health care. The Obama Administration is following this irresponsible pattern, except it has combined with the profligacy of the Bush Administration to push the Federal deficit into unprecedented dangerous territory. New taxes on just about everybody and everything are going to be needed to stave off financial ruin, and there will be little political will to spend any of the income on something as mundane, but crucial, as sewers.

The problem, however, has become infinitely worse since 1983, when “Transport Tomorrow” was released, and then as now, the attitude of our elected leaders is to let the next guy deal with the problem. Is this responsible? No. Is it cowardly? Yes. Is it a blatant, intentional and knowing distortion of priorities that will threaten American prosperity, jobs, and lives? Absolutely.

Here is a small glimpse of the enormity of the crisis: Continue reading →