The Truth with Jokes – Bonus Post

With the U.S. midterm elections approaching, this blogger paged through Al Franken’s book, “The Truth with jokes” (but it isn’t funny), published in 2005. It is mostly about:  election, military and economic issues in connection with George W. Bush’s first term.

One controversial issue (still a relevant question years later) that Franken covers is that “…seven months into the [Iraq] war, Donald Rumsfeld wrote a memo asking whether we were creating more terrorists than we were eliminating. ‘We lack the metrics to know,’ he lamented at the time.” A few years later, the government admitted it had the metrics– statistics on terrorist attacks– and the answer was yes.

In 2000-2001, when Bush was first “elected,” Federal Reserve Chair Alan Greenspan was excited that “After eight years of Clinton-style fiscal discipline and economic growth, the era of big deficits was over, and we were running surpluses…” As is known now, Greenspan’s assessment of America’s financial shape turned out to be a bit off the mark. By 2005, the U.S. government had to borrow $2 trillion.

Therefore, the Bush administration might have been wrong in predicting that Social Security would run out of money by 2042. There were then murmurs about privatizing it. Al Franken and his political ilk squelched Bush’s attempt.

Nevertheless, Franken has done extensive economics research, as is shown in this video:

This blogger thinks it is well worth watching in its entirety.

In the Name of Profit – Bonus Post

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.

On the Wings of Eagles

The Book of the Week is “On the Wings of Eagles” by Ken Follett, published in 1983. This ebook recounts how a group of employees from the American company EDS, stationed in Tehran, underwent an incredible, life-changing experience in early 1979, at the start of the Iranian revolution. H. Ross Perot, CEO of EDS, got “down in the trenches” with his men, and toward the end of the story, was portrayed as a Daddy Warbucks character; his endless money and friends in high places helped him magically remove bureaucratic obstacles to get things done in a hurry.

The Iranian government was EDS’s sole client in Iran. In mid-1978, it started to default on EDS’s multi-million dollar bill for engineering social-security and health insurance software. The extremely suspenseful series of events was focused on two EDS men in particular whom one Iranian in particular from the old (Shah’s) regime had arrested and jailed. He set their bail at an outrageous $13 million in a petty power game. There were three ways the company could get those two employees released from jail: “…legal pressure, political pressure, or pay the bail.” Or a few other ways, which were illegal.

Assistance and sympathy of the officials at Tehran’s American Embassy for EDS were less than forthcoming. There were many more serious problems to deal with.

Initially, the aforesaid Perot exhibited an American mentality, thinking that he and the bad guy could settle the matter with legalistic negotiations. However, Iran was not playing by the same rules. He then came up with a hare-brained scheme, which would involve breaking various federal laws if certain of its components were to occur in the United States.

As an aside– this blogger found it hard to get used to the vocabulary that Americans used at the time of the book’s publication– “…what the McDonald’s girl said to me…”  “…blond Swedish girl in her twenties,” “stewardesses” and “knapsack,” among other old-fashioned terms. There was also a funny scene late in the group’s emotionally traumatic saga. After surviving many serious threats to their lives over the course of weeks, the EDS group was on a plane that was having mechanical trouble in the air. “I can’t believe this,’ said Paul. He lit a cigarette.”

Read the book to learn the fate of the individuals involved in this riveting thriller.

Savage City

The Book of the Week is “Savage City” by T.J. English, published in 2011. This book highlights particular incidents in the lives of three people– two black men and a white police officer– in New York City between 1963 and 1973. All three– George Whitmore, Dhoruba al-Mujahid Bin Wahad, and Bill Phillips– experienced the city’s criminal justice system for prolonged periods, subject to the whims of cultural and political forces.

The author describes the era as one of racism, violence, corruption and injustice. He discusses the activist political group, The Black Panthers, formed in 1967, at length. The white Irish Catholic forces of the law charged the African American group with conspiracy after several ugly incidents.

Another group, the BLA (Black Liberation Army), formed in 1971, was involved in more of same. “It was a bitter harvest of BLA shootings, bombings, and threats against the police…” Autumn 1971 saw the aforementioned Bill Phillips of the NYPD (New York Police Department) turn informant to expose the rampant corruption in his organization.

Read this set of sordid anecdotes to learn the details of the moral bankruptcy and negative traits of human nature that pervaded the aforementioned decade.

Fateful Harvest

The Book of the Week is “Fateful Harvest” by Duff Wilson, published in 2002. Here is yet another book that describes one of the countless ways humans are destroying the earth and themselves.

Wilson, a journalist, revealed an environmental problem (and by natural extension, health hazard) perpetrated by large corporations on people in a small town in Washington State. It is unknown how many people elsewhere are affected, since it is extremely difficult to prove proximate cause when it comes to cancer in people who have had unmeasured exposure to countless carcinogens throughout their lives. The story was reminiscent of the book and movie “A Civil Action.” However, in Quincy, Washington, there has yet to be a class action suit.

In recent decades, companies have found a way to save millions of dollars disposing of toxic wastes they generate. In the 1990’s, they paid $50-$100 a ton to have fertilizer companies use those wastes in fertilizer, which was then sold to farmers. They would have paid $200 or $300 a ton to dump the wastes in a landfill instead. The fertilizer companies take advantage of a loophole in the law, which regulates “wastes,” not “products.” Fertilizer is a “product” even when it contains fly ash, contaminated phosphoric acid, beryllium, cadmium, chromium and other toxins from automakers, zinc smelters, copper recycling plants and steel mills.

Food becomes contaminated when grown in contaminated fertilizer. The farmers grow the potatoes, corn and beans, etc., sold to food processing plants that make and sell French fries and other edible products.

Read the book to learn how this serious environmental threat was discovered, and the various reasons why outspoken farmers, a horse breeder and the mayor, among other adversely affected Quincy residents, could not acquire sufficient power and influence to close the loophole in the law.