Saturday Ethics Warm-Up, 3/14/2020: Mrs. Jobs, Senator Schumer, Mayor de Blasio, And A Possum

Hi!

I’m working on Part III of the Wuhan virus ethics series, so I’m going to try to keep related matters to a minimum here. A couple links you can check out to relieve me of the necessity of commenting on them: Here’s Ann Althouse writing about her “social distancing” without, apparently, any awareness that the average American is not retired, financially well off, with a spouse, with grown children, who are happy blogging and reading all day. And here’s Ruth Marcus, long one of the more blatantly biased (and dim) members of the Washington Post’s editorial board, authoring an op ed with the head exploding headline,Why Joe Biden is the antidote to this virus.” I intend to keep this utter crap on file for the next time someone argues that degrees from elite institutions are evidence of intellectual ability. Marcus has a Yale and Harvard  Law degree.

1.  Rich people have a right to their wealth; it’s a shame, though, that their riches can’t buy IQ points, or the wisdom to know when to shut up. Laurene Powell Jobs, widow of Steve , told the New York Times,

“It’s not right for individuals to accumulate a massive amount of wealth that’s equivalent to millions and millions of other people combined. There’s nothing fair about that. We saw that at the turn of the 19th and 20th centuries with the Rockefellers and Carnegies and Mellons and Fords of the world. That kind of accumulation of wealth is dangerous for a society. It shouldn’t be this way….I inherited my wealth from my husband, who didn’t care about the accumulation of wealth. I am doing this in honor of his work, and I’ve dedicated my life to doing the very best I can to distribute it effectively, in ways that lift up individuals and communities in a sustainable way. I’m not interested in legacy wealth building, and my children know that. Steve wasn’t interested in that. If I live long enough, it ends with me.”

What a stupid, ethics-challenged, smug and selfish person. The tell is offering the non-argument that people being able to make as much money as they can and want isn’t “fair” and that it “shouldn’t be that way.” How articulate and persuasive! Continue reading

Comment Of The Day: “Comment Of The Day: ‘Sunday Ethics Warm-Up, 1/12/2020′” (Economic Data Thread)

This Comment Of The Day covers a wealth of ethics issues, including the ancient ethics debates over what is a fair share on societal wealth and who decides when someone has “enough” wealth. It also is an Ethics Alarms first: Chris Marschner’s Comment of the Day is on his own Comment of the Day!

And here it is, his Comment of the Day on his previous Comment of the Day on the post, “Sunday Ethics Warm-Up, 1/12/2020: Broken Ethics Alarms, An Ethics Conflict, And “Who Are You Going To Believe, Me Or Your Own Eyes?”

The point I was making was that people use economic data to illustrate all kinds of things. Typically they use charts and graphs to illustrate a point THEY want to make. The values within those charts and graphs need full examination before drawing a conclusion. For example, Reagan dropped the unemployment rate overnight by including the military in the labor force. In that case the number employed went up and the labor force went up as well. Given that the unemployment rate is the number unemployed/labor force if the denominator rises the UE rate falls.

Conversely, between 2008 and 2012 the unemployment rate showed a downward trend because the Labor force participation rate (LFPR) shrank and not because more people got jobs. People gave up looking for work so they were no longer treated as unemployed and the number of people working grew relative to the LFPR. Since 2016 the LFPR has been growing and the UE rate is dropping. That means that there are more people are working. That is a good thing because it puts upward pressure on wages.

For some, higher wages have overtaken what is known as an individual’s reservation wage. The reservation wage is the minimum amount needed to get a person to accept the offered job. Unfortunately, we have a great number of people whose true reservation wage has been distorted in both psychological and real terms. Reservation wages have been growing because of the growth in governmental income maintenance programs. Imagine how many will decide to live only on Yang’s guaranteed $12K a year. Couple that $1000 a month with housing assistance, food stamps, childcare, Medicare, and WIC you can live quite well on the dole. Oh I know, Yang says he would replace all those other programs to fund his guaranteed minimum income. Name a program that ever went away. We just layer one atop another.

These are not my opinions but well established facts and fundamental economic theory that is taught in first year Econ classes. I know because I taught those courses for 20 years. Continue reading

Comment Of The Day: “Sunday Ethics Warm-Up, 1/12/2020: Broken Ethics Alarms, An Ethics Conflict, And ‘Who Are You Going To Believe, Me Or Your Own Eyes?”’

For today’s “Economics for Dummies” lecture, and we can only hope those in thrall to the “income inequality” hucksters running for President will somehow hear it, we have Chris Marschner. What inspired his discourse was this chart,

from #3 in the 1/12 Warm-Up, regarding Michael Bloomberg’s deliberately dishonest statement, “The U.S. economy is working just fine for people like me. But it is badly broken for the vast majority of Americans.”

Here is Chris Marschner’s Comment of the Day on the post, “Sunday Ethics Warm-Up, 1/12/2020: Broken Ethics Alarms, An Ethics Conflict, And “Who Are You Going To Believe, Me Or Your Own Eyes?”

One of the great fictions of economics lies in how data is portrayed. Growth rates are one of my favorite methods of telling lies. The wage growth rate above requires a bit of basic math and economics understanding to fully capture its relevance.

The lowest quartile or quintile will have substantially higher rates of growth even if all incomes rise at exactly the same amount. For example if someone making the highest limit of the lowest quartile (say $25,000) gets a $5000 raise that earners wage growth is 20%. As we move up the line, if the highest limit of the second quartile is $50,000 and a  $5,000 raise, that rate of increase is a mere 10%. As we move up the ladder the basis or denominator gets progressively larger and if the numerator – the raise – remains constant, the rate of growth falls. Most people know this or should know this. Continue reading

Reparations Again.

Almost all of the Democratic Presidential wannabes are claiming that they support reparations for slavery. This is signature significance for shameless pandering and dishonesty, of course, and pretty redolent, in my assessment, of buying black votes. There are many, many things coming out of the mouths of the various demagogues, empty suits and crypto-socialists aspiring to unseat Donald Trump that are impossible–banning combustion engines, free college for all, ending the Electoral College, and many more—but reparations is a special species of fantasy, wrong in every way.

I have been periodically reading scholarly and not so scholarly debates about the feasibility  and justification for reparations for decades, and I have come to see this as less of a policy debate than a confession of defeat. Of course, every year that the timeline retreats from the end of slavery, the more logically untenable the mass hand-out of massive amounts of money that the nation cannot afford  to the descendants of slaves becomes. Ethically it was always untenable, and guaranteed, if such an irresponsible thing actually happened, to exacerbate racial divisions while creating endless demands for similar programs to benefit other groups, especially Native Americans. And why shouldn’t women receive reparations for all those centuries of forced labor and childbearing without civil rights, if the United States is going into the retroactive damages business?

Polling is a bad way to conduct a nation’s business, but sometimes the public can detect a true stinker when it sees one:. Reparations are unpopular with about 80% of the population, and I sense that even progressives just pretend to tolerate politicians who blather on about it because they know it’s all for show, and designed to harvest naive votes for more practical crazy leftist proposals.

Many of these proposals involve trying to somehow solve the gaps between black and white success and achievement in America, and mostly consist of rigging the system in various ways, especially now that Affirmative Action’s days are numbered, (and didn’t work that well anyway). Are a disproportionate number of blacks getting tossed out of school? Stop holding blacks to disciplinary standards—better yet, stop holding any students to disciplinary standards. Bad test scores making it more difficult to justify discriminating against Asian-Americans with better test scores? Eliminate testing as part of the college admission process!  Are too many African-Americans incarcerated? Legalize as many of the crimes as possible, and then  stop sending non-violent law-breakers to prison. These and other measures are no more fair of logical than reparations, just cheaper and easier to con or guilt Americans into accepting.

Back in March of 2016, I temporarily lost my mind in the wake of our first black President’s utter failure to address our race problems, despite his soaring rhetoric.  Charts from the Brookings Institution’s Social Mobility Memos blog were posted to the web, and starkly indicated that the  apparently intractable problems of American blacks that I studied in college had failed to improve in 50 years. I wrote this post, in which I  concluded, after a number of depressing observations, Continue reading

Ethics Q & A On Obama’s Speaking Fees

Former President Barack Obama received a $400,000 speaking fee for an appearance at an A&E Network event  yesterday, just as controversy was building over Obama accepting the same fee to appear at a Wall Street firm’s conference.

What’s going on here?

The ex-President is cashing in, that’s what’s going on here. This has become standard operating procedure for former POTUSes, beginning with Gerald Ford, who was showered with criticism by Democrats and the news media for signing with the William Morris agency and picking up what was at the time considered obscene speaking fees from corporations and foreign governments. Ford’s fees are dwarfed by Obama’s, but then Barack is a much better speaker than the late President Ford was. (Almost anyone is.)

Jimmy Carter showed admirable restraint by not devoting his post-Presidency to enriching himself off of his years in office, but Ronald Reagan took some mega-fees to speak abroad. The Clintons, as we know too well, instantly went from rags to riches by selling their celebrity, an exercise that was especially dubious because Hillary was on the rise. Obama’s speaking fees are just one more step along the cashing-in path that both he and Michelle had already begun traveling with the astounding 65 million dollar deal the couple signed to write their biographies.

Some questions and answers on the ethics of Obama’s payday:

1.  Is Obama ‘s acceptance of all this money ethical?

In a vacuum, it’s hard to argue that it isn’t. He set a fee, and someone is willing to pay it. Hillary’s fee was $250,000; if she can get that much for her dry-as-toast delivery as a former Senator, Secretary of State and First Lady, Obama’s a bargain at $400,000. As a private citizen, he has the same right any of us do to sell his books and speeches at whatever the market will bear.

I, for example, get $37.56 for an hour long speech, and am glad to get it..

2. But it isn’t in a vacuum, right?

Right. Obama still has power and influence; he still promises to be a voice in the Democratic party. He’s not exactly a private citizen, and no ex-President is. Taking such a large payment from a Wall Street firm, after all of Obama’s rhetoric (and that of Bernie Sanders, the non-Democrat now being paraded as a leader of the Democratic party) condemning Wall Street has the decided whiff of hypocrisy about it. Not only, that, but as with Hillary Clinton and Bill, the payment of such jaw-dropping amounts for minimal service natural raises questions of pay-offs. Obama’s administration famously sought no criminal sanctions for Wall Street executives despite their  role in what Obama called “driving the economy into a ditch.” How do we know this wasn’t part of an installment payment to Obama for services already rendered, a quid pro quo? We don’t.

It is also hard to make sense out of those fees if they aren’t paying for something more than an hour long speech.

3. So these fees create “the appearance of impropriety?” Continue reading

Cutting The Racial Gordian Knot: What Are The Ethical Implications Of The Terrible Economic Disparity Between Black And White In America?

Gordian Knot

The question raises the ethical implications to all American citizens and our shared obligation to our nation and its society of a disastrous, crippling problem that poisons our culture. and society: the persistent plight of Black America.

Back when I was a senior in college majoring in American Government and the U.S. Presidency, I took a course  from Professor Thomas Pettigrew, then as now one of the foremost scholars on race, prejudice and public policy. It was about the challenges facing blacks as they tried then to benefit from new legislation and opportunities created by the Civil Rights Act and other policies, such as school busing. I was very impressed by Pettigrew’s even-handed, objective and non-political approach, even though, at my college, political teaching was the rule, not the exception.

I have never left a course so discouraged. Pettigrew, himself a pretty optimistic man, led us into one dead-end after another: black families, education, neighborhoods, political behavior, crime and more, all dysfunctional or suffering. All areas of black society interfered with or blocked improvements, progress, remedies and policy initiatives that showed promise to address racial inequality in other areas.

Late in the course I asked him if he saw any hope that in 50 years, black America would be approaching parity with white America. “I have hope,” he said. “But I honestly don’t see how we get there from here. There is a path, but we haven’t found it.”

It appears that my discouragement then was an accurate reading of the problems ahead.

Last week, these charts from the Brookings Institution’s Social Mobility Memos blog were posted to the web by other sources. They show how deeply the problems I was warned about have failed to improve in 50 years. Here is what they show:

1. Upward mobility is much more unlikely  for black than white Americans. 51% of the black Americans born into the lowest fifth of the earnings distribution remain there at age 40:

The Chris Davis Saga: How Much Money Is “Enough”?

Chris Davis is under there somewhere...

Chris Davis is under there somewhere…

I have too many political issues on the runway, and I’m about to be buried in snow. This seems a perfect time to reflect on Chris Davis, the slugging Baltimore Orioles first baseman who just re-signed with the team in a seven-year, $161 million deal. Yes, he’s a baseball player, but the ethics issue here is not confined to baseball, or even professional sports.

Two weeks ago, it looked as if Davis and the Orioles were at an impasse. The team had, we were told, offered a take-it-or-leave-it 150 million dollar package, and Davis and his agent had turned it down. Davis’s manager, Buck Showalter, told the press that he had asked Davis, who by all accounts loves playing in Baltimore,”How much is enough?”:  “I asked Chris during the season, ‘Chris, when you walk into a Target store, can you buy anything you want. So, how much is enough?'”

Sportswriters, not being reflective sorts,  even the smarter ones, who are always taking the players union’s position that the more money a player can squeeze out of fat cat owners the better, jumped on Showalter. Said CBS writer David Brown, “Showalter trying to shame him into taking less — so that ownership can keep more — is shameful in itself. Why isn’t Showalter asking Angelos ‘ How much is enough?'”*

Showalter, who is one of the most intelligent and perceptive people in the game, was not trying to shame Davis. He was trying to get him to think; he was trying to impart some wisdom…and some ethics. Continue reading

Ethics Whistle On The Post’s Dana Milbank…So Blood Won’t Shoot Out My Nose

I know just how you feel, Lewis...

I know just how you feel, Lewis…

I was going to ignore this, I really was. Most Washington Post readers know Dana Milbank is a hard left, often unstable partisan reporter pretending to be an objective analyst. Most also know that he is prone to jump the rails of logic, fairness and reality from time to time, like here, when he blamed a “scandal of the week” mentality on the press and Republicans, and not the fact that the incompetent Obama Administration averages a scandal a week…or here, when he called millennials selfish for not supporting their President’s misbegotten health insurance scheme and acting in their own interests rather than their President’s political interests.

But his most recent column was churning around in my brain like Lewis Black’s routine about overhearing a young woman say, at a table next to him in a restaurant, “If it weren’t for my horse, I wouldn’t have spent that year in college.” ( Black: “Now, I’m gonna repeat that, because it bears repeating. “If it weren’t for my horse…” as in, giddyup, giddyup, let’s go — ‘I wouldn’t have spent that year in college,’ which is a degree-granting institution. Don’t think about that too long, or BLOOD will shoot out your NOSE!”) Milbank’s columns are often like that for me, and this one, expressing his outrage that the Republicans are trying to repeal what’s left of the estate, or “death tax,” was one of the worst. So you can regard this post as saving my life, if you wish.

I have no philosophical objection to taxing rich people, none at all. However, I have a very great ethical disagreement with those, like Milbank, who seem to think that there is something so sinister about parents trying to amass wealth for their kids that it justifies the government laying claim to what they have achieved, grown and saved through their own had work and responsible decisions. This was the ethic that drove our grandparents, great grandparents and great grandparents to build values, families, businesses, communities and a nation.  Making life better and easier for their children than it was for them was a virtue, and properly recognized as such.

Many studies, out of fashion now and suppressed in academia because they are politically incorrect, have suggested that poverty persists through generations  in part because of the acculturated lack of a future time perspective among some groups, which is a nice way of saying that when people seek instant gratification and don’t save and invest their assets, they become poor and stay poor. It is essential to progressive cant that there are no differences between successful people and unsuccessful people…not intelligence, talent, diligence, industry or ambition…just opportunity and privilege, or the lack of them.* People really believe this, especially the people I see in worn-out clothes buying 30 bucks worth of lottery tickets at a pop in the 7-11 rather than saving the cash to get some job training, or start a college fund for their children, who, this being the D.C. area, probably don’t live with him anyway. No, there’s nothing these unfortunates can do to better their lot, you see. Meanwhile, the government preys on their present-time proclivities by creating rigged lotteries to take their money from them.

Of course, someone born into a wealthy, two-parent, stable and supportive family is equally deluded to think, as the late Texas governor Ann Richards once said derisively of George H.W. Bush, that he hit a triple when in fact he was born on third base. That still does not mean, as Milbank seems to think, that there is something wrong and undesirable about  American’s parents working and sacrificing to make sure their children aren’t left sitting on the bench, or can’t even get in the park to see the game. Milbank, like the lock-step progressive he is, believes that every individual in every generation should have to start life without any competitive advantages over anyone else, and if that means giving his competitors a head start, or making him run with weights on his feet, or tripping him at the start of the race, well, too bad, and too bad for his parents.

That’s fairness to our many Milbanks. To me, fair is for each individual to be able to make the most of what life and luck  provides, through their own abilities and efforts, with the help and assistance of parents and family being a a vital and respected inheritance that reinforces a duty and obligation to do the same for the next generation.

Anyone is free to see it differently. What should not be tolerated are statements like this, by Milbank: Continue reading

Anderson Cooper’s Reflections on Inheritance: Not Unethical, Perhaps; Just Ignorant, Self-Serving and Presumptuous

I was going to let this go, but it kept gnawing at me, and nobody in the news media called out Anderson Cooper on his outrageous misrepresentation of history and human character. I guess it’s up to me.

gloria-vanderbilt-anderson-cooper

“Thanks for nothing, Mom!”

Cooper is the son of fashion designer Gloria Vanderbilt, and thus an heir to one of the most storied of American family fortunes. Apparently Cooper has known for some time that he’s getting none of his mother’s estimated 200 million dollar estate, and he told Howard Stern recently that he was fine about it, an had no bitterness or regrets.

“I don’t believe in inheriting money, ” he told Stern. “That’s a total fantasy … I think it’s an initiative-sucker, I think it’s a curse. Who’s inherited a lot of money who’s gone on to do things in their own life? If I felt that there was some pot of gold waiting for me, I don’t know that I would have been so motivated.”

As for his mother, who inherited many millions and who still made a name for herself by launching a  line of designer jeans, Cooper told Stern, “I think that’s an anomaly.”

Cooper is free to adopt whatever myths and rationalizations that help him get over the fact that his mother is cutting him off. He is not free to misinform the historically ignorant that a tendency exists which may describe his own mental state but which is far from the presumptive norm with others throughout the centuries. “Who’s inherited a lot of money who’s gone on to do things in their own life?” The answer to that question is “Too many to mention, Anderson. Are you kidding? Do you know anything about history?”

Just counting U.S. Presidents, which I think even in this period of reduced stature among White House occupants, would still qualify as “doing something with your life,” we have Washington, Madison and Monroe, all of whom inherited substantial property and assets from their families, as did William Henry Harrison and his grandson, Benjamin Harrison. Both Roosevelts inherited substantial wealth; so did William Howard Taft, whose family was (and is) one of the richest in the U.S. Both Bush’s managed not to let the curse of inherited wealth undermine their wills to succeed. Continue reading

Unemployment Check Ethics: “The Ethicist” Gets It Right

I regularly check the competition, and “The Ethicist,” Ariel Kaminer, has been solid lately. This past week, she avoided falling into a trap that I am certain her predecessor, Randy Cohen, would have charged into.

The questioner asked Kaminer whether it was unethical “for a relatively wealthy person” to receive unemployment checks, even if he or she met  the requirements. Moreover, “Is the answer different in times like the present, when government resources are extremely strained?” Continue reading