Jeffrey Sachs

August 17th, 2014

The Book of the Week is “Jeffrey Sachs: The Strange Case of Dr. Shock and Mr. Aid” by Japhy Wilson, published in 2014. This ebook emphatically argues that the highly influential Ivy League economist Jeffrey Sachs has wreaked havoc on at least three nations’ economies in the last thirty years with his non-stop publishing, lecturing and implementation on and of, (in the author’s opinion) delusional, elitist, anti-communist, anti-union schemes; he is, arguably, an economics criminal, so to speak (the counterpart to a war criminal) in that the implementation of his policies caused deaths. As an aside, this blogger disagrees with the author’s spelling of “publically” rather than “publicly.”

Sachs has refused to acknowledge that his “shock therapy” method employed in Bolivia, Russia and Poland was a dismal failure. It was supposed to help them make the transition to capitalism through conferring responsibility for previously government-led distribution of goods and services, to private citizens without warning them of extreme measures to be imposed in accomplishing this. The countries were forced to adopt a model at the far opposite end of the spectrum of the welfare state.

Sachs’ first victim, Bolivia, was experiencing 60,000% inflation and 20% unemployment in the summer of 1985. By 1987, pursuant to Sachs’ plan, a free market had been created, but the costs included a 50% higher unemployment rate and a 40% lower real-wage level. Over the next five years, the mining and industry sectors lost jobs by the tens of thousands.

In Russia, a few powerful wealth owners were already experienced in “managing” assets, so their receiving additional private property–  with no laws requiring them to treat their workers in a humane manner– made them even more exploitative. In the early 1990′s, leader Boris Yeltsin became a convert of Sachs. The result was mass corruption.  On the other hand, this has helped the United States and other nations with already evolved capitalist systems to maintain their economic dominance in the world. This blogger is not saying such a goal is right or wrong, but merely suggesting that this might have been Sachs’ goal.

Sachs also helped the rich get richer in Uganda, by providing specially chosen farming families with certain resources, such as fertilizer and seeds, in a few villages. The goal was to have those politically connected farmers “… magically combine entrepreneurial self-interest with community spirit, based on a patronizing representation of the deserving poor.” This smacks of a similar kind of mentality in the New York City schools under former Mayor Michael Bloomberg in the early 2000′s, based on the mistaken notion that all students were bound for college. Sachs’ program started charging money for conferring some of its resources, “… which inevitably privileges those with the ability to pay.” Bloomberg imposed various policies (still in effect as of this writing), that inevitably privilege those students who have the ability to pay for private school, and testing and tutoring services. That is just the tip of the iceberg in both cases.

A World Trade Organization conference in Seattle in 2000 was discontinued because “… Suddenly, this orderly world of billionaire philanthropy and elite policymaking was overturned by massive street protests involving unions, NGOs, and activist groups, demanding an end to the global neoliberal agenda of free trade, privatization, and corporate power.”

Read the book to learn of additional outrages associated with Jeffrey Sachs.

The Snowden Files

August 3rd, 2014

The Book of the Week is “The Snowden Files:  The Inside Story of the World’s Most Wanted Man” by Luke Harding, published in 2014. This ebook eloquently describes how Edward Snowden became a whistleblower, and the immediate consequences of his actions.

President Barack Obama vowed to curtail intrusive collection of personal data from and on the American people during 2008. A set of policies passed after 9/11, the Patriot Act, originally allowed certain kinds of spying. The goal was to root out terrorists. Instead of curbing the program, Obama authorized the National Security Agency (NSA) of the United States government to become an all-out global spying operation. By 2009, it was collecting metadata from millions of American and English citizens, as well as numerous global government officials, through phone records and email. It teamed up with GCHQ, the United Kingdom’s governmental branch that handles intelligence, and later, elicited customer data from the major U.S. tech companies Google, Facebook, Apple and Microsoft. The NSA and GCHQ “…secretly attached intercepts to the undersea fibre-optic cables that ringed the world.”

However admirable the intentions of government officials might be– thinking they are seeking out evil and preventing incidents of terrorism, their actions are misguided. They might contend that there have been no terrorist attacks on American soil since 9/11, so therefore, the program is working. This erroneous reasoning is like the stupid joke: A man is sitting outside on a city street waving around an odd contraption. Someone walks by and asks him what it is. The man tells them it’s an elephant repellent. He is asked how he knows it’s working. He says, “It must be working. Do you see any elephants around here?”

This blogger believes that the privacy violations– arguably unconstitutional– are a secondary reason why the nature of the NSA’s actions are so dangerous. One major aspect that makes the spying so dangerous is that comprehensive searches can be done on electronic-records literally at the speed of light.

Excuse the cliche, but “Absolute power corrupts absolutely.” Abuse of power is inevitable. For instance, there have been incidents involving the TSA. Throughout history, only bad publicity generated by whistleblowers who have made serious sacrifices– their livelihoods and/or their lives– has stemmed the tide of the evildoing. The same is true with this NSA/GCHQ situation. This ebook likened the spying to the East German Stasi prior to the fall of Communism. This blogger thinks eventually, absent a whistleblower, there would have emerged an individual with the mentality of Stalin or the late U.S. Senator Joseph McCarthy. Fortunately, Snowden found a way to act on the conviction of his beliefs in a mature, if illegal, way. He communicated with the right individuals at The Guardian, “… the third largest newspaper website in the world.”

A minor side effect of the collection of massive amounts of data, even if only a fraction of it is looked at– is that mistakes of honest ineptitude will be made. Lives have been greatly inconvenienced at best, due to the erroneous data in credit records, and those whose names have been mistakenly placed on a “no-fly” list, among various other cluster screw-ups of record-keeping entities.

Read the book to learn of the different media cultures in the U.S. and U.K., and the details of this suspenseful saga.

My Mistake

July 21st, 2014

The Book of the Week is “My Mistake” by Daniel Menaker, published in 2013. This is the autobiography of a well-educated Northeastern American male typical for his generation who, born in the 1940′s, entered the publishing profession. However, his mother was exceptional for her generation in that she was an editor at Fortune magazine.

At the then-academically rigorous Swarthmore College, during spring of his senior year, Menaker was “… taking Honors exams– eight three-hour written exams and eight oral exams, all administered by professors from other colleges.” He spent most of his career at The New Yorker, and then switched to Random House about a year after Tina Brown took over the magazine in 1992. He wrote that she halved the quantity of fictional stories appearing in the publication and employees of both the fiction and nonfiction sections competed with each other in kissing up to her to get their pieces published.

Read the book to learn the details of Menaker’s work, of a traumatic event involving his older brother, and his bout with cancer.

Louis Renault, A Biography

July 13th, 2014

The Book of the Week is “Louis Renault, A Biography” by Anthony Rhodes, published in 1969.

Renault, an automobile extrepreneur, was born in February 1877. When he began his career, there were only two classes of any real importance in France– the aristocracy and the bourgeoisie. Renault sold vehicles initially for commercial purposes like taxis, public buses and milk delivery trucks.

By 1905, there were 22 intensely competing European automakers. The year 1908 saw six-cylinder engines made by eight French, ten American, three Belgian and one German manufacturer. In 1909, Renault sold his cars in New York. The goal was to sell 1,200 to 1,500 of them.

In the 1920′s, Citroen, Renault’s chief rival, employed many women in his factories. He condutcted an ongoing direct-marketing campaign, mailing letters to potential first-time and new car buyers who had visited the local showroom and expressed interest in a purchase. He also made toy models of his cars for kids. Renault and Citroen competed in starting bus lines between cities in France. Citroen was taken over by Michelin after going bankrupt in 1935.

Read the book to learn of Renault’s accumulation of wealth, his company’s corporate culture and labor troubles, what transpired among automakers during the World Wars and through the decades, and how history dealt Renault a serious blow toward the end of his life.

Dirty Daddy

June 29th, 2014

The Book of the Week is “Dirty Daddy” by Bob Saget. This is a tell-all autobiography. Some people are shocked to learn of Saget’s stand-up comedy persona–all toilet and sex jokes– because they knew him only as the goody-goody father of three young daughters on the 1980′s American sitcom “Full House.”

Saget writes that the development of his dirty image was influenced by his father, a butcher, who had a lively, shameless sense of humor. He rambles on a little too long about relationships– his own, and in general. Nevertheless, one should read this book to learn about the people and experiences that shaped his life through his gratuitous name-dropping and lighthearted anecdotes, if one can stomach occasionally repulsive scenes.

Bonus Post

June 27th, 2014

This blogger skimmed the ebook, “In the Name of Profit” by multiple co-authors, originally published in 1972. This depressing set of anecdotes on corporate greed simply reminds the reader that there is nothing new under the sun.

One theme is that through the 1950′s and 1960′s, big manufacturers such as Goodrich and General Motors had constructive knowledge that the products they sold were defective. Purchasers had bad experiences, and were seriously injured or were killed by those products. The companies’ attorneys and their employees rationalized that “‘planned obsolescence” meant progress. “But the meaning is clear: ‘Go cheapen the product so we can make more money.” In the case of drug company Richardson-Merrell, the product wasn’t cheapened, but rather, serious side effects were downplayed or hushed up and the results of FDA pre-approval testing were fabricated. Unsurprisingly, the company and its subsidiaries hired top-dollar attorneys skilled at helping businesses weasel out of legal trouble.

Another topic covered was Napalm, whose evolution began at Guadalcanal during WWII. “The Napalm fire bomb was deliberately designed as an indiscriminate terror weapon for mass destruction and death among civilians.” When people in Vietnam were harmed, Dow Chemical’s legal defense was bolstered by the fact that it had received orders by the U.S. Government to make the controversial product.

This ebook also discussed stock manipulation and corporate takeover. SEC laws were shown to be very lax in the 1950′s and 1960′s, as one particular perpetrator did jail time for various securities violations, but after his release, went right back to his old tricks. One Herbert Korholz repeatedly gamed the system with acquisitions. President of the Susquehanna corporation, he was able to bribe directors and officers in taking over another company with a secret tender offer of a share price higher than what was to be offered to the general share-owning public. “Profit-making firms can cut their taxes magnificently by merging with big losers…” One Maurice Schy, an attorney, attempted to make the government aware of Korholz’s unethical, unlawful and disgusting behavior, by filing lawsuits through the years, to no avail. Government officials were mired in conflicts of interest (favorable to Korholz’s interest) and ruled against Schy every time except one; a ruling was pending as this book was being released in 1972. Schy had finally gotten a possible break only because there was another case brought by another party against Korholz’s companies’ illegal activities.

In sum, we human beings are a mixed bag of evolutionary traits; altruism and greed among them. On many occasions, greed wins out, and we never seem to learn from those past occasions.