faith * politics * culture * economics * social issues * history : for now we see in a mirror dimly, but then face to face; now I know in part, but then I will know fully
Wednesday, July 14, 2010
Mind the Gap
Interesting review and response article to a new book, The Spirit Level: Why Greater Equality Makes Societies Stronger.
Wednesday, October 28, 2009
William T. Cavanaugh, Being Consumed; Economics and Christian Desire: Review Part 3
There are numerous ways to go about responding to Cavanaugh’s claims. One, for instance, could place his theology within numerous streams of Christian reflection. He draws off the Christian personalism of John Paul II and the economic distributism of early 20th-century Catholic ethics. He also shows a great debt to the tradition of virtue ethics currently taught by Stanley Hauerwas at Duke Divinity School. Likewise, Cavanaugh is much indebted to the Augustinian tradition of reflection on ordered and disordered loves within the City of God and the City of Man, as well as the new Trinitarian insights of Hans urs von Balthasar, to name only one theologian. Each of these streams of Christian reflection has strengths and weaknesses. One could also ascertain whether he has truly understood the experience and logic of late, global capitalism in the last few decades. Has he, for instance, ignored counter-examples that might go against his theses of hypermobilization of capital, of the creation of constant, movable desire, and of globalization as a false parody of true Christian catholicity?
However, I want to respond more personally as one First World, Christian individual to his book. In my experience, much of what he claims rings true, at least some of the time. I am ashamed to say that I have found myself at various points in my life addicted to the buying of things, and of late, equally tempted by the consumption of short bursts of image and experience though online social networking and news. I, too, have often thrown up my hands in despair at the news of overseas economic abuses, wondering where to buy my clothing, my coffee, or my children’s toys. And I, too, have taken a kind of superficial pride and joy in my “diversity,” listening to African music while I eat fajitas, read a Russian novel, and look forward to watching a Dutch film on video later that evening. I would rather play it safe and not have to interact with the truly poor, unless, of course they seem grateful and don’t smell too much. After I finished reading Being Consumed , I struggled with what I should do in response, and my first desire was to simply and sadly think I could do nothing. Of course, this would simply be to “consume” Being Consumed as part of the endless diet of ideas in a collegiate environment. Instead, I am praying and seeking how my family should act differently in what we eat and buy and give. I have talked to my wife some about the book and will continue to do so.
It does not seem to me that you need be convinced by everything that Cavanaugh claims in order to respond to it with repentance and action. For example, I am somewhat dissatisfied with his theology of the Church and world. He seems to conflate the distinction between them too much at times, the logic of the Eucharist almost dissolving the need for individual repentance. I can’t always tell if his doctrine of the Supper actually merges nature and grace or simply brings them into a particular and local relationship for our time. Likewise, his portrait of multi-national abuses does not reflect the experience of local managers who are attached to their workers and seek to work for change for their benefit. Nonetheless, I am still left crying mea culpa. Well, not only “my fault” per se, for that too is part of his point. I am joined to the Body of Christ, and I must learn to work within the messy, faulty life of that local community called a church if I am to develop with others the habits and practices that help address some of these matters. Happily, Cavanaugh has provided some examples worth learning more about:
- Mondragón Cooperative Corporation, based on the principles of distributism, is worker-owned and governed and contributes greatly to neighborhood health, education, and lower crime.
- CRS Fair trade program in coffee, chocolate, and handcrafted items seeks to deal directly with growers and local artisans to promote fair payment, as well as promote a sense of solidarity with those overseas.
- Church Supported Agriculture (CSA) seeks to create a direct market between local family growers and local churches in hopes of providing a face-to-face buying environment with growers and helping to promote sustainable farming.
- The Economy of Communion Project associated with the Focolare Movement promotes a business model that divides profits into 1/3 aid to the poor, 1/3 education promotion, and 1/3 business sustainability. As of 2006, 700 businesses worldwide had adopted their model.
I would challenge us all to learn more about these and other Christian options like them.
William T. Cavanaugh, Being Consumed; Economics and Christian Desire: Review Part 2
Chapter 3, “The Global and the Local,” is the most densely theological of the book, yet I suspect it is also the heart of Cavanaugh’s attempt to provide a Christian vision that runs counter to consumerism: “[C]ulture and economics are not autonomous spheres with no mutual effect. Economic relationships do not operate on value-neutral laws, but are rather carriers of specific convictions about the nature of the human person” (59). Globalization is a false catholicity; it purports to offer a universal world of multicultural communication and exchange, but it actually tends to flatten out local cultures into a world of McDonalds and Disneys, even as it also works to dismember communities into atomistic individuals. Here, he returns to his concern with the “hypermobility of capital” which can abandon its people easily, thus creating a situation that makes labor unions fairly impossible, as well as negotiations for better working environments, higher wages, and more ownership in the means of production. Cavanaugh is equally suspicious of the claims of religious pluralism and multiculturalism. Both doctrines, he believes, really perpetuate a post-modernist version of persons and reality that is still radically individualistic. We can consume surface-level, multi-cultural experiences without necessarily changing anything about ourselves and our patterns of First World consumption. The global village is a comforting fiction. In response to this, Cavanaugh looks to Jesus Christ as the “concrete universal: “Only in the Incarnation can an individual be universal and the universal be individual” (76), and only in the mission of Christ can we truly discover ourselves, for Christian discipleship teaches us to lay ourselves aside for others: “The true identity of each unique human person is thus founded on the overcoming of an illusory self-sufficiency” (83). This practice is deeply Trinitarian, for we enter into an exchange of mutual giving and receiving. But this Christian exchange is always realized in local places over time. Only then can we truly be and model what God intends for Creation.
Thursday, September 10, 2009
Joint Ownership of the Means of Production? (John Paul II series)
This selection from Laborem exercers shows John Paul II embracing the "middle way" of distributism. he argues against socialist collectivist and state control of the means of production, as well as those forms of capitalism that would deby labor the right to ownership of the means to produce. He insists on the right to private property but not on the absolute right divorced form the higher good of the common good of a society of persons. My guess is there's something here to annoy everyone:
". . . the Church, diverges radically from the programme of collectivism as proclaimed by Marxism and put into pratice in various countries in the decades following the time of Leo XIII's Encyclical. At the same time it differs from the programme of capitalism practised by liberalism and by the political systems inspired by it. In the latter case, the difference consists in the way the right to ownership or property is understood. Christian tradition has never upheld this right as absolute and untouchable. On the contrary, it has always understood this right within the broader context of the right common to all to use the goods of the whole of creation: the right to private property is subordinated to the right to common use, to the fact that goods are meant for everyone.
"Furthermore, in the Church's teaching, ownership has never been understood in a way that could constitute grounds for social conflict in labour. As mentioned above, property is acquired first of all through work in order that it may serve work. This concerns in a special way ownership of the means of production. Isolating these means as a separate property in order to set it up in the form of "capital" in opposition to "labour"-and even to practise exploitation of labour-is contrary to the very nature of these means and their possession. They cannot be possessed against labour, they cannot even be possessed for possession's sake, because the only legitimate title to their possession- whether in the form of private ownership or in the form of public or collective ownership-is that they should serve labour, and thus, by serving labour, that they should make possible the achievement of the first principle of this order, namely, the universal destination of goods and the right to common use of them. . . .
". . . The principle of respect for work demands that this right should undergo a constructive revision, both in theory and in practice. If it is true that capital, as the whole of the means of production, is at the same time the product of the work of generations, it is equally true that capital is being unceasingly created through the work done with the help of all these means of production, and these means can be seen as a great workbench at which the present generation of workers is working day after day. Obviously we are dealing here with different kinds of work, not only so-called manual labour but also the many forms of intellectual work, including white-collar work and management.
"In the light of the above, the many proposals put forward by experts in Catholic social teaching and by the highest Magisterium of the Church take on special significance -- proposals for joint ownership of the means of work, sharing by the workers in the management and/or profits of businesses, so-called shareholding by labour, etc. Whether these various proposals can or cannot be applied concretely, it is clear that recognition of the proper position of labour and the worker in the production process demands various adaptations in the sphere of the right to ownership of the means of production. This is so not only in view of older situations but also, first and foremost, in view of the whole of the situation and the problems in the second half of the present century with regard to the so-called Third World and the various new independent countries that have arisen, especially in Africa but elsewhere as well, in place of the colonial territories of the past.
"Therefore, while the position of "rigid" capitalism must undergo continual revision, in order to be reformed from the point of view of human rights, both human rights in the widest sense and those linked with man's work, it must be stated that, from the same point of view, these many deeply desired reforms cannot be achieved by an a priori elimination of private ownership of the means of production. For it must be noted that merely taking these means of production (capital) out of the hands of their private owners is not enough to ensure their satisfactory socialization. . . .
". . . A way towards that goal could be found by associating labour with the ownership of capital, as far as possible, and by producing a wide range of intermediate bodies with economic, social and cultural purposes; they would be bodies enjoying real autonomy with regard to the public powers, pursuing their specific aims in honest collaboration with each other and in subordination to the demands of the common good, and they would be living communities both in form and in substance, in the sense that the members of each body would be looked upon and treated as persons and encouraged to take an active part in the life of the body."
Tuesday, September 8, 2009
Family, Work, and "Dominion" (John Paul II series)
This is section 10 of John Paul II's encyclical Laborem exercens. It raises a number of important questions about not only the nature of work, but also what Christians should believe about the nature of the family and community:
"Work constitutes a foundation for the formation of family life, which is a natural right and something that man is called to. These two spheres of values-one linked to work and the other consequent on the family nature of human life-must be properly united and must properly permeate each other. In a way, work is a condition for making it possible to found a family, since the family requires the means of subsistence which man normally gains through work. Work and industriousness also influence the whole process of education in the family, for the very reason that everyone "becomes a human being" through, among other things, work, and becoming a human being is precisely the main purpose of the whole process of education. Obviously, two aspects of work in a sense come into play here: the one making family life and its upkeep possible, and the other making possible the achievement of the purposes of the family, especially education. Nevertheless, these two aspects of work are linked to one another and are mutually complementary in various points.
"It must be remembered and affirmed that the family constitutes one of the most important terms of reference for shaping the social and ethical order of human work. The teaching of the Church has always devoted special attention to this question, and in the present document we shall have to return to it. In fact, the family is simultaneously a community made possible by work and the first school of work, within the home, for every person.
"The third sphere of values that emerges from this point of view-that of the subject of work-concerns the great society to which man belongs on the basis of particular cultural and historical links. This society-even when it has not yet taken on the mature form of a nation-is not only the great "educator" of every man, even though an indirect one (because each individual absorbs within the family the contents and values that go to make up the culture of a given nation); it is also a great historical and social incarnation of the work of all generations. All of this brings it about that man combines his deepest human identity with membership of a nation, and intends his work also to increase the common good developed together with his compatriots, thus realizing that in this way work serves to add to the heritage of the whole human family, of all the people living in the world.
"These three spheres are always important for human work in its subjective dimension. And this dimension, that is to say, the concrete reality of the worker, takes precedence over the objective dimension. In the subjective dimension there is realized, first of all, that "dominion" over the world of nature to which man is called from the beginning according to the words of the Book of Genesis. The very process of "subduing the earth", that is to say work, is marked in the course of history, and especially in recent centuries, by an immense development of technological means. This is an advantageous and positive phenomenon, on condition that the objective dimension of work does not gain the upper hand over the subjective dimension, depriving man of his dignity and inalienable rights or reducing them."
- Should we see work and family as intimately related? Why or why not?
- Is human dignity tied to our work, to its place in our homelife, and its place in the larger community?
- What role should technology play in the humanizing of work, especially as a part of family and community?
Friday, September 4, 2009
Persons, Their Dignity, and Work (John Paul II series)
"Work is one of the characteristics that distinguish man from the rest of creatures, whose activity for sustaining their lives cannot be called work. Only man is capable of work, and only man works, at the same time by work occupying his existence on earth. Thus work bears a particular mark of man and of humanity, the mark of a person operating within a community of persons. And this mark decides its interior characteristics; in a sense it constitutes its very nature. . . ." (intro.)
"In order to continue our analysis of work, an analysis linked with the word of the Bible telling man that he is to subdue the earth, we must concentrate our attention on work in the subjective sense, much more than we did on the objective significance, barely touching upon the vast range of problems known intimately and in detail to scholars in various fields and also, according to their specializations, to those who work. If the words of the Book of Genesis to which we refer in this analysis of ours speak of work in the objective sense in an indirect way, they also speak only indirectly of the subject of work; but what they say is very eloquent and is full of great significance.
"Man has to subdue the earth and dominate it, because as the "image of God" he is a person, that is to say, a subjective being capable of acting in a planned and rational way, capable of deciding about himself, and with a tendency to self-realization. As a person, man is therefore the subject to work. As a person he works, he performs various actions belonging to the work process; independently of their objective content, these actions must all serve to realize his humanity, to fulfill the calling to be a person that is his by reason of his very humanity.
"This does not mean that, from the objective point of view, human work cannot and must not be rated and qualified in any way. It only means that the primary basis of the value of work is man himself, who is its subject. This leads immediately to a very important conclusion of an ethical nature: however true it may be that man is destined for work and called to it, in the first place work is "for man" and not man "for work". Through this conclusion one rightly comes to recognize the pre-eminence of the subjective meaning of work over the objective one. Given this way of understanding things, and presupposing that different sorts of work that people do can have greater or lesser objective value, let us try nevertheless to show that each sort is judged above all by the measure of the dignity of the subject of work, that is to say the person, the individual who carries it out. On the other hand: independently of the work that every man does, and presupposing that this work constitutes a purpose-at times a very demanding one-of his activity, this purpose does not possess a definitive meaning in itself. In fact, in the final analysis it is always man who is the purpose of the work, whatever work it is that is done by man-even if the common scale of values rates it as the merest "service", as the most monotonous even the most alienating work. . . .
"[I]n the light of the analysis of the fundamental reality of the whole economic process-first and foremost of the production structure that work is-it should be recognized that the error of early capitalism can be repeated wherever man is in a way treated on the same level as the whole complex of the material means of production, as an instrument and not in accordance with the true dignity of his work-that is to say, where he is not treated as subject and maker, and for this very reason as the true purpose of the whole process of production.
"This explains why the analysis of human work in the light of the words concerning man's "dominion" over the earth goes to the very heart of the ethical and social question. This concept should also find a central place in the whole sphere of social and economic policy, both within individual countries and in the wider field of international and intercontinental relationships, particularly with reference to the tensions making themselves felt in the world not only between East and West but also between North and South." (section 6)
John Paul II ties work to the human vocation. For him, it is a biblical idea, one arising from the creation mandates of Genesis. Work must not, however, reduce human beings to their material existence alone. It must play a role in and recognize the nature of human beings--their personhood, their communal existence, their social and ethical existence, their need to make and create, to produce and partake. Human economic systems--socialist, communist, capitalist--that treat persons as objects, rather than as subjects, are to be condemned and brought to repentance.
Tuesday, August 11, 2009
Simone Weil and Rootedness--Part 2
This distinction is important for Weil because obligations take root in physical and social relations. Writing in 1943, she sees the French as having been uprooted in the towns because of an education that prizes technical know-how at the expense of an expansive liberal learning. Workers have become alienated from their true obligations; the life of the factories is mechanical and inhumane. It demands work which is neither interesting nor lively. It is too often exhausting and dangerous. What is needed are "forms of industrial production and culture of the mind in which workmen can be, and be made to feel themselves to be, at home." She goes on to line out sixteen or so proposals that bear a striking resemblance to those of Catholic distributism, including the abolishment of large factories for small guild-run workshops; the ownership of the tools and machines invested in the workers themselves, and a system of vocational adaptation for those with superior or inferior talents in any one profession. Each one is intended to return workers to a life of natural obligation because they are connected to their work and their work to their lives.
Weil also laments the loss of rootedness in the countryside. This takes shape in the way "peasants" are denied the private ownership of the land, have no pensions to survive on when they grow old, and the general way in which rural persons are educated away from a love of the land. Weil argues that rural education should inspire in its workers a love of the beauty of the land and of the beauty of the lifecycle. Likewise, she holds that rural Catholicism should seek to prepare the people to engage a life of farming as a truly holy, noble task: "The contemporary form of true greatness lies in a civilization founded upon the spirituality of work" (97).
Nonetheless, for Weil, the most fearful trend towards uprootedness is in the nation a whole. Patriotism upon various levels has been replaced by a singular economy of state. The family, village, district, and region have all ceased to matter before the national interest: "Man has placed his most valuable possession in the world of temporal affairs, namely, his continuity in time, beyond the limits set by human existence in either direction, entirely in the hands of the State" (100). Her point is that life is made up of numerous intermediate communities and associations that stand between the individual and the nation-state, and patriotism has historically been made up of numerous types of loyalty to king, village, children, neighbor, region, and so on. These have been weakened by a nation that has money as its only value: "The State is a cold concern which cannot inspire love, but itself kills, suppresses everything that might be loved; so one is forced to love it, because there is nothing else. This is the moral torment to which all of us today are exposed" (114).
Weil overgeneralizes here; still, what she says has a a note of reality to it. Her key point is that the nation-state does not and cannot easily ask for the same kinds of personal obligations that other social formations more naturally call up. The general French disdain for politcs and for public life she sees as emblematic of this problem, one which has historical causes including that of the abuse of royal power, the large landed aristocracy, the military and social abuses of the republican regimes after the Revolution, and the colonial abuse of the country towards other nations. At the heart of these is the break up of the trades, families, and traditional education for morals. Nationalism has displaced obligations to family, fellows, and truth. To this, she replies that the only authentic patriotism at the moment is one of compassion, the same kind of compassion that one feels for those who are suffering and poor. "If their country is presented to them as something beautiful and precious, but which is, in the first place, imperfect, and secondly, very frail and liable to suffer misfortune, and which it is necessary to cherish and preserve, they will rightly feel themselves to be more closely identified with it than will other classes of society" (174-5).
Taken together, Weil's three concerns with uprootedness point to the local, human, and personal shape of our obligations and loyalties. We love what we know and what we are tied to. We respect, honor, and treat as sacred those to whom we are intertwined in the precious nets of family, neighborhood, town, and congregation. Of course, all of these can be abused, as Weil acknowledges. But they are also natural in a way that the power of national force is not. She concludes that the state is "sacred" only in the way an altar is, that is to serve a higher purpose, not to draw attention to itself. The only other options she thought were anarchy or the idolatry of communism.
Monday, July 27, 2009
Christopher Lasch on the Need for a 3rd Way
Lasch's last important work was The True and Only Heaven, a history of the populist movement in the United States in the nineteenth and twentieth centuries and its criticism both of the unfettered market system and of the liberal state and the planned economy. In the last few pages of his groundbreaking history, Lasch offers his own opinion that any new populism would learn from the old populism in its critiques but it would have to offer an entirely different vision of wealth and community.
Lasch was something of a pundit, hated by both the Left and the Right, and was even a measured critic of the communitarianism of those like Amitai Etzioni, which he criticized as being concerned with political agendas without being concerned with moral life and personal change. Here's an example of his basic analysis:
"On the one hand, the market appears to be the ideal embodiment of the principle--the cardinal principle of liberalism--that individuals are the best judges of their own interests and that they must therefore be allowed to speak for themselves in matters that concern their own happiness and well-being. But individuals cannot learn to speal for themselves at all, much less come to an intelligent understanding of their happiness and well-being, in a world in which there are no values except that of the market. Even liberal individuals require the character-forming discipline of the family, the neighborhood, the school, and the church--all of which (not just the family) have been weakened by the encroachments of the market. The market notoriously tends to universalize itself. It does not easily coexist with institutions that operate according to principles antithetical to itself--schools and universities, newspapers and magazines, charities, families. Sooner or later the market tends to absorb them all. It puts an almost irresistible pressure on every activity to justify itself in the only terms it recognizes--to become a business proposition, to pay its way, to show black print on the bottom line. . . .
"In the attempt to restrict the scope of the market, liberals have therefore turned to the state. But the remedy often proves to be worse than the disease. The replacement of informal types of association by formal systems of socialization and control weakens social trust; undermines the willingness both to assume responsiblity for oneself and to hold others accountable for their actions; destroys respect for authority; and thus turns out to be self-defeating. Consider the fate of neighborhoods that serve so effectively, at their best, as intermediaries between family and the larger world. Neighborhoods have been destroyed not only by the market. . . but also by enlightened social engineering. . . .
"Communitarians regret the collapse of social trust but often fail to see that, in a democracy, trust can only be grounded in mutual respect. They properly insist that rights have to be balance by responsibility, but they seem to be more interested in the responsibility of the community as a whole--its responsibility, say, to its least fortunate members--than in the responsibility of individuals. We have become far too accommodating and tolerant for our own good." ("Communitarianism or Populism? 60-1, 64)
Friday, July 24, 2009
Tocqueville on Materialism
"There is, indeed, a most dangerous passage in the history of a democratic people. When the taste for physical gratifications among them has grown more rapidly than their education and their experience of free institutions, the time will come when men are carried away and lose all self-restraint at the sight of the new possessions they are about to obtain. In their intense and exclusive anxiety to make a fortune they lose sight of the close connection that exists between the private fortune of each and the prosperity of all. It is not necessary to do violence to such a people in order to strip them of the rights they enjoy; they themselves willingly loosen their hold. The discharge of political duties appears to them to be a troublesome impediment which diverts them from their occupations and business. If they are required to elect representatives, to support the government by personal service, to meet on public business, they think they have no time, they cannot waste their precious hours in useless engagements; such idle amusements are unsuited to serious men who are engaged with the more important interests of life. These people think they are following the principle of self-interest, but the idea they entertain of that principle is a very crude one; and the better to look after what they call their own business, they neglect their chief business, which is to remain their own masters.
"As the citizens who labor do not care to attend to public affairs, and as the class which might devote its leisure to these duties has ceased to exist, the place of the government is, as it were, unfilled. If at that critical moment some able and ambitious man grasps the supreme power, he will find the road to every kind of usurpation open before him. If he attends for some time only to the material prosperity of the country, no more will be demanded of him. . . . A nation that asks nothing of its government but the maintenance of order is already a slave at heart, the slave of its own well-being, awaiting only the hand that will bind it." (474-5)
"Whatever elevates, enlarges, and expands the soul renders it more capable of succeeding in those very undertakings which do not concern it. Whatever, on the other hand, enervates or lowers it weakens it for all purposes, the chief as well as the least, and threatens to render it almost equally impotent for both. Hence the soul must remain great and strong, though it were only to devote its strength and greatness from time to time to the service of the body. If men were ever to content themselves with material objects, it is probable that they would lose by degrees the art of producing them; and they would enjoy them in the end, like the brutes, without discernment and without improvement." (480)
Thursday, July 23, 2009
Gratitude, Gifts, and Health
"[Y]oung people are profoundly unhappy because they have lost a sense of gratitude. They can speak only of rights. Health is a right and sickness a frustration of this right. Healing, so quick now, thanks to our antibiotics, is no longer a gift from God. Happiness is a right. Since no one achieves it, despite all our modern conveniences, everyone is the victim of a frustration complex. No gift can bring joy to the one who has a right to everything. Even love has been devalued; it is but a commonplace convenience which the sexes render one another, without there being any deeper self-commitment. There is no real giving of the self!
"No giving. This word “giving” brings to mind the subtle transition from gift to trade. For it seems to me that it is in this profound human need to give that we need to give that we need to seek for the desire for trade, commerce, and even for farming and industry. For these “offer” men the goods which they need. That the pleasure of giving is reciprocal, that it is organized into exchange systems, that the invention of money has generalized it on a world-wide level has in no way changed its physiological meaning. The best businessmen, those who illustrate most truly the business mind, are men who like to give, who like to please the customer. They always feel as if they were bestowing a gift with their merchandise, adding again a kind word and a beautiful smile. They also feel that they are recipients of a gift when people pay them.
"Effective advertising has its roots in just such an attitude of mind. Because these men are themselves convinced that they are offering what the client needs, they are able to persuade him that it is so. . . . Is it not interesting to look upon the whole of economic life from this point of view? Not just as an instinctual need to procure for oneself the means of subsistence, but equally as a universal, spiritual need for exchanging with others: In other words, to see it as the need for interpersonal contact." (31-33)
Thursday, July 16, 2009
Why We Must Ration Health Care
Saturday, June 27, 2009
Study: Economic Boost of Deforestation Is Short-Lived
Friday, June 26, 2009
Economic Crisis Stirs Free-Market Debate
Monday, June 22, 2009
World Bank Delivers Haymaker
Today, the bank delivered a knee-bucking report on the health of the global economy. The global economy will shrink by 2.9% during 2009, according to the bank.
The carnage is not isolated but extends across the entire globe. Overall, global investment dropped by nearly 40% over the past year. Scary.
Friday, June 19, 2009
Bernanke Under Investigation
This is scary since the president's new fiscal policy would appoint the fed as watchdog for our economic system.
Who was Charles Ponzi
I think it is interesting that his original scheme was legal and sought to profit from market inefficiency. He also did a decent job of defending himself while acting as his own attorney. This may tell us something about the legal profession.
Here is a short video that provides further explanation of a Ponzi and how it works.
Friday, May 29, 2009
Leap in U.S. Debt Hits Taxpayers With 12% More Red Ink
Wednesday, May 27, 2009
California Faces Fiscal Reckoning!!!
http://www.msnbc.msn.com/id/30893006/
California’s day of fiscal reckoning has arrived. When everyone it seems, is having to cutback in the world because of what seems to be a global recession, California seems to be beyond just a cutback. California is looking at a $24 billion dollar budget deficit, which is more than one quarter of the states general fund.
The governator, Arnold Schwarzenegger has said that he intends to close the gap by drastic spending cuts. I think when this starts and I question whether it will, I think that the pushing and shoving may get so out of hand that it will make the gay marriage issue seem like a school yard scuffle.
The article goes on to say that the problem exists because California has been over spending and living beyond its means. That has to be the understatement of the year. The article is complete with a statement that Arnold took over a mess from the previous administration. (Where have we heard that?) It also says that he promised to clean up the mess by eliminating wasteful spending. (We’ve heard that before too!)
I have been saying for years that we are all going to have to suffer in order to clean this mess up. We don’t want to hear this but we are all going to have to adjust our lifestyles in order to save our country. And if we do nothing, which seems to be a trend of our elected officials we will all be forced into facing and dealing with many years of a much worse situation.
Joe Stanley
Friday, May 22, 2009
Wednesday, May 13, 2009
Hold on to your 403-b and 401-k
Ever since 2000, as the years go by, the projections for survival of Social Security and Medicare keep getting shorter, and shorter, and shorter.Projections from yesterday give Medicare a life expectancy of 8 years and Social security - of 28 years.
Graph from New York Times.