Why the Recent Supreme Court Ruling is Anti-Democracy

I am still pained by the recent supreme court decision which allows corporations to spend unlimited dollars in political advertising under the supposed protective shield of Freedom of Speech. What was once the country where "all men are created equal," is rapidly becoming the country where "all dollars are created equal."

What do I mean by this?

By this ruling, the court is creating an unlevel playing field in an individuals right to participate in government and civic affairs. Instead of individual having an inherent equal right to participate in our democracy, the court is defining a persons or entity's ability to participate by the number of dollars they have. Not only is this not "Freedom of Speech," it actually stifles freedom of speech because the wealthy few can drown out the unwealthy masses with their dollars. This is not what the framers of the constitution had in mind, I assure you. Right now, Jefferson and Franklin are turning in their graves.

Our democracy is rapidly becoming anything but a democracy; in fact, we are becoming an oligarchy -- where those individuals rewarded disproportionally by the vagaries of an imperfect market are having a disproportionate impact on our government and way of life.

What a shame.

What's Wrong with American Business Today. Part 2: Immediate Gratification

Last time I talked about The Compartmentalization of Markets and Human Values. This time it’s about Immediate Gratification. Here we go:

2. Immediate Gratification Short Term Focus
It’s true, we live in an immediate gratification society. Unfortunately, it’s even more true in American Business. It’s all about the quarterly numbers and top management’s stock options. So, when the topline isn’t doing well, Sr. Execs make the bottom line look better by cutting staff and programs, like R&D, employee benefits, marketing plans, etc. This begs the question – is eliminating or diluting part of the firm’s human capital (some of whom have been around a long time – longer than the usually transient CEO – and are literally the hearts, soul and minds of the company) and important projects that may spur future growth, really in the best long term interests of the firm? In my estimation, usually not. But it does lead to seven and eight figure bonuses for some top execs. Sometimes a company just has to take the short term hit for the long term good. Unfortunately, management is incented to do exactly the opposite. What a shame.

In upcoming posts, I’ll discuss:

3. Financial Sector as Lord and Master
4. Consumer Schizophrenia
5. Creative Destruction Destroys Creatively.
6. The Rise of “Professional CEOs”
7. The “small business fallacy”
8. The 401K Con Job
9. Bigger is Better and Disruptive Market Power
10. Merger Mania, Leveraged Buyouts and Other Destructive Habits.
11. The Asymetrical Rewards and Punishments of the Business Cycle
12. The marketing afterthought
13. International Sanctuaries for Tax Evaders

What's Wrong with American Business Today? Part 1: Compartmentalization of Markets and Vaues

I’ve been very critical of American business and its role in the meltdown in many on-line forums, particularly the Wharton forum (and, as a result, have been anointed “Wharton’s Resident Socialist” – which is cute, but I’m definitely not). I am, though, what I would call a “compassionate capitalist” (to paraphrase one of my least favorite politicians). So I thought I would jot down some thoughts on what I think is wrong with American business. I’ll try to send one out every day or so. Okay, here’s the first:

1. The Compartmentalization of Markets and Human Values

Way too often business leaders “compartmentalize” between their business sides and human sides and never in the twain shall they meet. It’s like Bill Clinton, Elliot Spitzer and Tiger Woods compartmentalizing their trysts completely out of their public personas. I think, in many ways they actually think there are two of them ! The same goes with many business leaders. In the workplace, they march to the beat of Adam Smith and the “Invisible Hand.” Out of the workplace, most try to be respectable members of the community and some even Bible-toting churchgoers. But here’s the problem – the decisions they make in the boardroom, when they are driven by the pure profit motive affect the community and society as a whole – many times in a negative way. But in the office they hide under the cover of “profit maximization”, using it as a shield. I’m sure those Enron folks who robbed their employees of their 401Ks - -- or the Citigroup execs who brought the company down but still think they’re entitled to big bonuses -- were good church-going citizens, but it certainly didn’t factor into their business decisions. They’re decisions many times leave people homeless, without health insurance and/or pensions, while the corporate execs live the “high life,” even after they’ve failed miserably. Capitalism without a social conscious is an empty vessel.

Some topics I’ll cover in subsequent posts:

2. Immediate Gratification

3. Financial Sector as Lord and Master

4. Consumer Schizophrenia

5. Creative Destruction Destroys Creatively.

6. The Rise of “Professional CEOs”

7. The “small business fallacy”

8. The 401K Con Job

9. Bigger is Better and Disruptive Market Power

10. Merger Mania, Leveraged Buyouts and Other Destructive Habits.

11. The Asymmetrical Rewards and Punishments of the Business Cycle

12. The marketing Afterthought

13. International Sanctuaries for Tax Evaders