Category: Economics – Miscellaneous

A Greek Tragedy

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The Book of the Week is “A Greek Tragedy, One Day, A Deadly Shipwreck, and the Human Cost of the Refugee Crisis” by Jeanne Carstensen, published in 2025.

The author a bit naively labeled her jumbled compilation of stories, “the” refugee crisis. It was tiny compared to WWII’s refugee crisis. Two among many others that occurred from the second half of the 1970’s into the 1980’s included the “boat people” in the waterways between the United States and Cuba, and between Vietnam and Thailand. By the 1980’s, the United States and Thailand respectively, resented taking in those refugees.

A mere twenty years later, refugees (mostly from Syria, Afghanistan, Iran and Iraq) in overcrowded vessels in the Aegean Sea were fleeing their troubled homelands. By 2015, Jordan, Lebanon and Turkey were tired of taking in those refugees.

In this hodgepodge of a volume, the author described the various groups of people (smugglers and the smuggled, humanitarian workers, the rescuers and the rescued, residents in the area, and government officials) involved in a late October 2015 disaster in the Aegean Sea. Two overcrowded boats collided. Organized crime groups in Turkey ran the people-smuggling rings which refugees hired for steep prices, to help them get to Greece, and they hoped, to freedom.

The governments of Turkey and Greece don’t cooperate in investigating refugees who disappear while fleeing their homelands. So no one has accurate numbers on the dead and missing on the aforementioned boat collision. Never mind the number who have gone missing through the decades.

Read the book to learn: the history of the region; the extremely good and bad behavior prompted by the disaster (hint: among the bad– price-gouging of food and supplies for the refugees; among the good– people risking their own lives to save others’); and the prevailing political, cultural and social conditions of that particular time period.

How to Save the Amazon

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The Book of the Week is “How to Save the Amazon, A Journalist’s Quest for Answers” by Dom Phillips and various authors, published in 2025. This hodgepodge of a volume listed various issues related to the destruction of the Amazon rain forest, which spans eight different countries. Nevertheless, the title was misleading in that all the articles except for one about Cost Rica– were about the Amazon region in Brazil.

Over the decades, there has been a tug of war between monetizing of, and attempting to enforce laws to protect the Amazon region, involving:

  • changing politics
  • supply and demand for real estate
  • supply and demand for products such as fossil fuels, fish, fruits and nuts.

Anyway, simply enacting laws, and then underfunding and understaffing the laws’ enforcement NEVER works in such an environmentally delicate, resource-rich region where the people born there have a simple lifestyle, and aren’t sufficiently powerful to defend their way of life against exploitation of their land.

For decades, business people have worked around the Amazon river in gold mining, commercial fishing, logging, rubber tapping, farming, oil wildcatting, and cattle ranching (beef production).

On and off, Brazil’s government agencies, and the Pastoral Land Commission (a Catholic organization) have assisted the Indigenous people who have small farms in the region. There had been programs similar to those implemented in the western United States in the 1800’s, of homesteading and sharecropping. BUT, more than half of the population of Brazil consists of Amazon-region residents (Indigenous peoples) whose dark skin makes them subject to discrimination.

There are tens of different Indigenous peoples who choose to live in the region, isolating themselves from the rest of the world. Their mentality is described in the song, “Colors of the Wind” from the Disney movie soundtrack Pocahontas. One Indigenous individual interviewed by one of the authors wrote, “That land could be owned by a single person is unthinkable to us because everyone’s survival depends on it.”

The Indigenous peoples and NGOs are the only people who should be stewards of the land, because they live and work there, on the ground. Outsiders are mostly bureaucrats and exploiters.

One can get a bank to finance cattle-ranching, as beef production is a major way to make the land productive. So the government encourages homesteaders to go into cattle-ranching. However, it deforests the land.

The entrepreneurs behave like organized crime syndicates– ruthlessly killing people who obstruct their illegal profiteering, and donating big bucks to political candidates to perpetuate their lawlessness.

In addition, ironically, the Indigenous people aid and abet the entrepreneurs! They serve as slave labor in the entrepreneurs’ businesses because their education and skills are insufficient to make a living otherwise.

Bottom line: the Amazon rain forest is one of the few remaining resource-rich regions on earth that has yet to be completely looted– that could still be used for more good than evil.

Read the book to learn about: the annual Davos-like conference called COP where the (mostly greedy, power-hungry) attendees pretend to wring their hands over the destruction of the Amazon rain forest; the entrepreneurs who do agroforestry; the dreamers who want to turn their land into environmentally friendly utopias; and the one small cause for optimism that can improve the situation (hint: high-technology satellite images can measure deforestation).

Weapons of Math Destruction

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The Book of the Week is “Weapons of Math Destruction, How Big Data Increases Inequality and Threatens Democracy” by Cathy O’Neil, first published in 2016.

This hodgepodge of a volume pointed out the dangers of Big Data, whose name has been changed to AI. The software that collects data and does number-crunching that results in harm– the author calls “weapons of math destruction” or WMDs. Since the book’s writing, ALL aspects of Americans’ lives have been taken over by AI. The author provided several real-life examples of groupthink and herd mentality that has led to a toxic loop of self-deception and cluster-screwups.

The three elements of WMDs are: damage, scaling and opacity.

In software engineering, the cliche, “Garbage in, garbage out” means that a flawed process that generates inaccurate data (garbage) will result in an end-product of inaccurate data (garbage). When AI models collect data on a small number of people, and those data are extrapolated to an entire applicable population (“scaling”), there can be honest ineptitude or even malice; numerous additional people’s lives can be adversely affected. The software models used are opaque because they are considered trade secrets or intellectual property. Of course, maximizing profits is the number one goal of AI makers.

The author discussed the subprime mortgage crisis that resulted in the 2008 financial crash. In 1999, the Glass-Steagall Act was repealed. The repeal allowed banks to enter the securities business. The securities-ratings services went hog-wild in their quest to collect huge fees from banks, labeling high-risk securities as the opposite of what they really were, while the banks bet against the very same securities they’d sold to their customers.

These perpetrators poisoned the well for everyone, so that new laws were enacted that made it more expensive for financially responsible, law-abiding people to apply for mortgages going forward.

In the 2010’s, students in Zhongxiang in China were slated to take the national standardized university entrance exam. There had been a crackdown on cheating. Approximately two thousand students protested outside their school, shouting “We want fairness. There is no fairness if you don’t let us cheat.”

American politics is currently witnessing this kind of unmitigated lawlessness and hubris. It waxes and wanes through decades, but now it is more extreme than ever because:

  • Since the 2008 financial crash, the profiteers’ wealth has been compounding, which has increased its power, as money is power.
  • The “president” (who some would argue is a dictator) is entrenched with the legal system.
  • Previous administrations were neither as litigious nor as driven to stay in power forever by rigging everything (including but far from limited to: a blood-for-oil war, insider trading, redistricting, launching smear campaigns against all enemies, sweetheart contracts with political donors, etc., etc., etc.).

Here is one last example of how poor Americans were the victims of expensive stupidity: Between 2013 and 2015, a deeply flawed AI system that screened unemployment-benefits recipients in the state of Michigan, wrongly accused 93% of the recipients of waste, fraud or abuse.

Read the book to learn about many more examples of the Orwellian juggernaut AI has become.

The Calling

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The Book of the Week is “The Calling, A Memoir of Family, Faith and the Future of Healthcare” by Dr. Chris Chen and Dr. Gordon Chen, published in 2022. In this wordy, redundant volume, the brother-authors recounted their family’s history.

The Chen brothers, their wives, and their parents have built a successful medical practice of value-based care. They began in South Florida, serving low-income senior citizens in poor health. Their primary-care physicians (formerly called “general practitioners”) are truly passionate about treating their patients as though the patients are their own loved ones.

The family’s business, ChenMed, gets a flat fee from health-insurance companies, rather than a fee per patient. It is up to the practice’s bean-counters to do preventive care to make the business profitable. Arrogant and greedy doctors need not apply to ChenMed.

The doctors do quality over quantity, seeing a maximum of four hundred fifty patients per month. They have maximized the efficiency in their business so that they can spend a lot more time with each individual patient. Initially, they see cardiac patients daily until they get to know them. Of course, there is an emotional toll on the medical personnel when there are inexplicable complications or deaths.

It appears ChenMed has bragging rights– in the last forty years, it has established an impressive presence in the United States. And its monster-sized competition has copied the concept of their business model.

The Chens practice not only medicine, but also Christianity. The family’s patriarch thinks that one who does not believe in a supreme being, does not have a moral compass. Yes, people who have a bible that’s falling apart, usually aren’t. But that doesn’t mean that people who don’t have a bible usually are falling apart. There are plenty of ways other than religion for people to relieve the stresses of daily life, and still behave ethically.

Anyway, read the book to learn much more about the family’s and ChenMed’s backgrounds.

The Lords of Strategy

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The Book of the Week is “The Lords of Strategy, The Secret Intellectual History of the New Corporate World” by Walter Kiechel III, published in 2010. This wordy, redundant volume showed how: times have changed; capitalism has become leaner and meaner; and in one way, American society has stayed the same since the Era after WWII.

In the 1950’s, the major reasons American companies began to acquire other companies included:

  • Dividends paid by public companies were highly taxed, so instead of paying dividends to shareholders, a growing company that was sitting on a pile of cash would reinvest it by acquiring other companies.
  • There were antitrust laws prohibiting companies from acquiring others in their same industry, so the companies bought others in industries unrelated to their core competencies, or snapped up companies in their supply chain.

By the end of the 1960’s, companies were going bust because, blinded by greed and ego, the stupid corporate executives had no experience in industries unrelated to their own.

In the early 1970’s, management-consultants began to counsel their clients (who mostly manufactured physical products) on strategy. Also, Boston Consulting Group began to advise their consumer-goods clients to engage in deficit financing to grow their businesses. Corporate executives began to adopt an even more greedy mentality. Maximizing shareholder value became their main goal.

The author listed four game-changers of recent decades:

  • deregulation;
  • new technologies including computers, the internet, the maximization of computing power and simultaneous minimization of costs in connection therewith;
  • the way target-companies wised up after the hostile takeover-mania of the 1980’s; and
  • globalization.

As America has switched to a service-oriented economy in the last fifty years or so, the consultants have been forced to pivot to advise clients on human-resources, public-relations and technology. In the early 1980’s, a Harvard Business School professor did a study of senior executives at major U.S. corporations, and found that their game-changing stemmed not from bossing people around or speechifying, but rather, from infinite interactions with their social networks whose relationships they’d been developing over the course of years.

The author commented that when internet use was becoming widespread, there was a brief flirtation with socialistic entities arising from the open-source movement, including but not limited to: the Linux operating system, wikis, BitTorrent, and Napster. But the inclination of the American powers-that-be, to monetize everything, has largely put the kibosh on those.

Generation X and the Millennials have picked up the cudgel of capitalism and it remains to be seen how Gen Z is going to make a living. Having evolved rapidly in the last thirty years, the internet is currently plagued by creative destruction. But not to worry. There will be jobs in national healthcare, geriatrics, building charging-stations for hybrid vehicles, and harnessing renewable energy. Lying politicians (a redundant phrase) will say they “created” those jobs. Don’t vote for those politicians.

On the other hand, it’s deja vu all over again in American society. Nowadays, AI software is replacing consultants because: American management-consultants were mostly elitist, sexist, racist alpha-males in the “old boy network,” and AI software is created mostly by elitist, sexist, racist greedy alpha-males, still in the “old boy network” (but that network is slowly shrinking).

And the stereotypes about the consultants (and now AI software creators) are still true: They’re like seagulls– they fly in, leave a mess, and fly out; they show their clients a line graph that looks like a hockey-stick– that represents how their services will do financial miracles for the clients’ business, but the line graph has no correlation with reality.

Read the book to learn the details.

Strongmen – BONUS POST

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The Bonus Book of the Week is “Strongmen: Mussolini to the Present” by Ruth Ben-Ghiat, published in 2021. In this hodgepodge of a volume, the author described the traits and behaviors of a “strongman” through a few real-life examples of dictators of the past hundred years.

A strongman is a male leader who finds ways (that happen to be nefarious) to maximize and maintain his power; including: causing needless deaths and ruined lives in the forms of propaganda (repeated scapegoating, generating crises and other brainwashing techniques), waging war, engaging in sexual conquests, seeking political dominance and enriching himself, usually through looting resources from the territory or territories he rules.

In October 1922, in an Italy of about forty million people, approximately thirty thousand people comprising the Fascist Party appointed Mussolini as prime minister. In the next two decades, in order to rule by fear and force, Mussolini formed various political and military groups, and passed laws that violated human rights. He incited excessive violence, and had dissidents killed.

In July 1925, Mussolini pardoned all political criminals (those who would help him stay in power). But by 1926, he had run out of money. Fortunately for him, he had friends in high places. Thomas Lamont– his contact at the American financial institution, J.P. Morgan, arranged a loan of one hundred million dollars for him. At that time, Hitler actually looked up to Mussolini and eventually got friendly with him, in order to get mentored. By 1933, the German industrialists had fallen for Hitler’s populist rhetoric.

In 1965, Mobutu, who engaged in drugs and arms sales, (with the help of the CIA) came to power in Zaire. He, along with a number of other dictators, had been war heroes, so they had military backing. Beginning in 1969, oil money allowed Gaddafi to give his government a socialistic bent– funding Libyans’ education, housing and other basic needs.

In 1994, Italy’s Berlusconi controlled very nearly all the messaging heard and seen by his people. He crafted laws to: give himself a get-out-of-jail-free card, and his businesses, to weasel out of legal and financial trouble. His propaganda screamed that immigrants were criminals. Gaddafi and Berlusconi (who should have been enemies) became besties– keeping their friends close and their enemies closer. Libya got weapons from Italy, and Italy got oil from Libya.

In Trump’s United States, “Women advance their careers by making it easier for the leader and his inner circle to harm other women.” Another strongman technique Trump uses is to put his assets in foreign bank accounts. In 2014, Eric Trump said, “We [Trump Organization] don’t rely on American banks. We have all the funding we need from Russia.”

Like Berlusconi, Trump and his media outlet, Fox News, have repeatedly, emphatically smeared immigrants as criminals, and he has used his military, ICE, to detain or deport them. The author named locations of various detention camps that had inhumane conditions: in Florida– Homestead, and in Texas– Clint, McAllen, Rio Grande, and El Paso del Norte.

In sum, once the strongman has stolen all he can get from his citizens, his next tricks are to negotiate a peace treaty and schedule elections.

Read the book to learn much more about how the above-named and a few others have used strongman tactics to turn into not-so-benign dictators.

ENDNOTE: Here’s a song that describes Trump’s strongman tactics.

MODERN STRONGMAN

sung to the tune of “Modern Woman” with apologies to Billy Joel and to whomever else the rights may concern.

You see Trump on the idiot box touting his high-tech war-toys of his cronies’ design.

With his continual cruel smears he aggravates the tension. Tries to save face while losing his mind.

Now Trump’s in trouble. He fired all the intellectuals. He always figures voters aren’t very smart.

Or maybe he hopes his hype covers up his conflicts. Oh, he’s got to use PR tricks ’cause his wrongdoing’s off the charts.

He always puts on an ACT of ranting-frat-boy modern strongman. And he’s an old fascist man. He understands just what he’s doing. He’s a modern strongman.

His mean streak is exceptionally unprofessional. He’s got a lot of cockiness, it’s easy to see. You don’t want to be rude but you get so furious when he’s so injurious to American democracy.

He’s got bile and he’s got billionaires’ money and lots of attorneys so his-foes, he quickly disarms. His slow rise means you may not realize, YOU’RE jeopardized by his gradual harm.

He’s got his plan of attack and got the power-play knack of modern strongman. And he’s an old fascist man. He understands just what he’s doing. He’s a modern strongman.

The king won’t die. There is no president. He says he loves you but he treats you unkind. In the morning he detains you. You’re accused by your neighbors. It’s a cagey situation for an old fascist guy.

Times have changed, and you cry in vain, lately. He’s become extreme in his bad attitude. His cock-and-bull just used to be for kicks. But now he controls your politics. After 2026, you might get a clue.

You can’t relax and face the facts of modern strongman. And he’s an old fascist man, he forces your hand in the things he’s doing.

He’s a modern strongman. He’s a modern strongman.

He’s got the sociopathic zip that allows the grip of the modern strongman.

The Picnic

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The Book of the Week is “The Picnic, A Dream of Freedom and the Collapse of the Iron Curtain” by Matthew Longo, published in 2024. This volume, whose language is awkward in spots, detailed some of the changes– especially in Hungary– that led to major transformations of balances of power in the world.

In sum, thousands of people acting together (rather than one dissident here and there) whose dissatisfaction reached critical mass, are what forced Eastern Europe to radically change politically, culturally, and socially, starting in the late 1980’s. Or, as the American 1960’s counter-culture expressed it: “United we stand. Divided they catch us one by one.”

The author called people who fled East Germany at the tail end of the 1980’s, refugees. They were actually immigrants. Refugees are fleeing from war, anarchy or starvation where their lives are in danger 24/7. Immigrants move to a different country because their own country dooms them to a life of crushing oppression, but no immediate life-threatening danger.

Anyway, by the late 1980’s, there appeared signs that the Soviet yoke of Communism in Hungary was becoming frayed, as its leaders sensed the people were approaching the point at which beheadings or a firing squad of themselves was in the offing.

In 1988,

  • “Moscow” (the authority that ruled all Soviet satellites, which included Hungary) allowed Hungarians to form non-Communist parties, although the new parties had only advisory power;
  • Moscow restored the freedom of assembly;
  • Hungary’s economy was tanking, so its Communist functionaries appointed as its prime minister, a young economist– Miklos Nemeth, a believer in free markets and democratic elections– who had studied in the US;
  • Moscow began to allow the issuance of special travel visas for families to drive into Austria to shop for Western consumer goods with a $350 government subsidy.

And in 1989,

  • The Hungarian minister of state delivered a radio address, shocking listeners (who had been brainwashed by Soviet propaganda for decades) with the truth about the 1956 uprising and incredibly, he wasn’t shot or hanged by his comrades;
  • In Budapest, police allowed a public protestor’s recitation of a poem about tyranny;
  • The Hungarian prime minister asked Mikhail Gorbachev to withdraw Soviet troops from Hungary, and the latter agreed to withdraw a few, as a public relations gesture;
  • Through Gorbachev’s permissive policy that each Soviet satellite’s leader could take whatever political actions he deemed necessary to keep the peasants from revolting, Nemeth ordered the dismantling of electrified barbed wire at Hungary’s borders with Austria and Czechoslovakia;
  • Some of the Stasi (the ubiquitous, brutal [Soviet] East German spying agency– the new breed of “Nazis” after WII), actually directed East Germans toward a border-crossing location, or stood by and let Hungarians and West Germans help the East Germans run through the gap in the barbed wire, in order to cross the border to Austria or Czechoslovakia.

There were countless other societal changes taking place in Eastern Europe. In June 1989, a few Hungarian dissidents who were forming a new political party, planned a picnic as a symbol of friendship among Hungarians, East Germans and Austrians.

In October 1989, the GDR turned forty years old. “There were lavish parties, honoring years of Soviet-East German cooperation.” Small wonder why the peasants were revolting. By November 1989, the Soviets had secretly moved all their nuclear weapons located in Hungary, to Ukraine. By the dawn of the 1990’s, the Hungarian Communist Party had ultimately renamed itself the “Hungarian Republic.” BUT a one-party State is not a democracy!

The former Stasi spies who got new jobs after the USSR dissolved, felt right at home helping Western businesses seek new markets in Eastern Europe. For, skills required for the jobs included exploitation, expropriation, and data collection.

The author wrote that a compromise between capitalism and socialism is possible. In 2009, he had a reunion with an East German couple who had fled to West Germany. They were very anti-Communist, but also shunned using crassly commercial, modern technology such as mobile phones and email. They didn’t care that they weren’t keeping up with the Joneses. Their experience in the East taught them to be grateful for the material possessions they did have.

But it’s actually not that simple. If everyone disengaged completely from their automated lifestyles and electronic communications, the world economy would crash.

Read the book to learn about various East Germans who left their homeland for what they perceived to be a better life after seeing how the non-Communist world lived, and about some of the historical changes wrought in their region of the globe.

BONUS POST

I am pleased to announce that my book “The Education and Deconstruction of Mr. Bloomberg, How the Mayor’s Education and Real Estate Development Policies Affected New Yorkers 2002-2009 Inclusive” is available through the following online channels:

Amazon.com

alibris.com

https://books.google.com

booksamillion.com

fishpond.co.nz

betterworldbooks.com

northtownbooks.com

commongoodbooks.com

bol.com

regulatorbookshop.com

wildrumpusbooks.com

https://www.amazon.ca

https://business.walmart.com

https://www.fruugo.us

https://www.worldofbooks.com

https://www.dymocks.com.au

https://www.takealot.com

https://bookscape.com

https://www.mightyape.co.nz

https://www.flipkart.com

The Rebels

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The Book of the Week is “The Rebels, Elizabeth Warren, Bernie Sanders, Alexandria Ocasio-Cortez (hereinafter referred to as “AOC”) and the Struggle for a New American Politics” by Joshua Green, published in 2024. In this hodgepodge of a volume, the author described some practices of the U.S. government that has led to its currently precarious economic state of affairs.

As of early 1978, president Jimmy Carter had failed to keep three economics-related campaign promises with which he tried to incite the hard-working American masses: income-tax reform (angry at the rich’s business tax-deductions); a stimulus (because stagflation was dogging everyone’s pocketbook); and an energy bill (due to rising oil prices). June 1978 saw California’s voters approve a huge reduction in property tax.

In October 1978, the Carter administration passed a tax-bill– the Revenue Act– that actually favored the rich and Wall Street. The bill cut capital gains taxes; funds were shifted from investing in factories and equipment to gambling in the securities markets. The president could have vetoed the bill, but instead, he sold out because his party would benefit with mere weeks to go before midterm election-day. Ironically, Ralph Nader, who was known for advocating for consumers, urged the government to deregulate airlines and trucking. It turned out that deregulation of these exceptional industries was to hurt consumers (and their employees!) in a few short years.

There also occurred the privatizing of retirement funds in the form of 401(k). As is well known, it was touted as a tax shelter, but it gave Wall Street more control over Americans’ hard-earned money.

After Carter lost his bid for reelection, Democrats such as Paul Tsongas, Mike Dukakis, Bill Bradley and Bill Clinton pivoted toward neoliberalism– appeasing the corporate community with anti-union legislation, deregulation, and allowing monopolistic practices.

Unsurprisingly, the above, and the implementation of a bunch of other unwise economic policies, led to the 2008 financial crash. The American people were understandably very angry to learn that the government bailed out the crash’s institutional perpetrators (whose obscenely paid executives had jobs that weren’t pay-for-performance, and who still got their bonuses); never mind helping hard-working ordinary Americans.

According to the author, the bailout cost U.S. taxpayers $32 billion instead of between $700 billion and $1.5 trillion. It is impossible for laypeople to believe that “experts” can accurately estimate those kinds of numbers, given the pressure on “experts” to propagandize. Ever since, there is almost total disbelief of all economics numbers spouted by those “experts.” It is actually the age-old activity of lying with statistics.

The author wrote that, as a newly elected U.S. senator from New York State, Hillary Clinton paid her dues by playing well with others, making friends with strange bedfellows, while U.S. senator from Massachusetts, Elizabeth Warren, nearly a decade later, behaved in a confrontational manner that garnered applause from the little people– grassroots supporters.

The author contended that the aforementioned Warren paved the way for the Independent Bernie Sanders’ surprising popularity among the young voters in the 2016 Democrat primary election for president. His presence in the primary affected the choices of voters in the general election, adversely affecting Hillary’s chance to win.

The author explained why AOC achieved what most politicos thought was going to be impossible. “Running as a Democratic Socialist, she [AOC] drew a large, multiracial progressive coalition that overwhelmed an incumbent, in [Joseph] Crowley, who personified the Wall Street-friendly Democrat uninterested in local concerns but assumed to be too powerful to be held to account.”

Read the book to learn much more about how the individuals named in the book’s title have influenced American politics in a major way in the last fifteen years.

ENDNOTE: In sum, American voters would like to see their government return to rule of law, civility and transparency! They would also like to see political workers and candidates: answer the questions asked of them, and clarify what they mean. Various terms of late have been given emotionally-charged interpretations to incite people who easily get upset at political news. For example, climate change and woke mean different things to different people. Instantaneous communication among Americans has made them hyper-aware of shenanigans in the staged and scripted reality show that is currently American politics.