Category: business ethics

Adding Insult to Injury – America’s Debt Ceiling Crisis & Who is responsible for the financial crisis in America? (via Tucson Blonde)

On By southwerkIn business ethics

This is a explanation of why the rich are gaining ground and the middle class losing it. It cites statistics on a regular basis. No statistic cited is anything that I have heard contrary data on. So, I think the report was written with considerable research. I would note that there is not just a little passion in the post which is delightful to me but not always to my readers.

This blogger wrote a lengthy, well written and thoughtful article. Please visit the web site and reward those efforts.

James Pilant

Whose side is Congress on? In November 2009 the New York Times published an article about the number of US Senators and House members who were millionaires.[i] At the time two-thirds (66%) of the senate and more than half (55%) of the house were also millionaires. That year recorded an estimate of nearly 7% (ca. 21 million) Americans who were, at least, millionaires. If our “representatives” truly reflected the current state of our great Nation w … Read More

via Tucson Blonde

How to have a ‘rational’ debate over nuclear power (via Rational and Green)

On By southwerkIn business ethics2 Comments

There is a lot of debate on the web about nuclear power. This is a different kind of take on the issue. Our author explains how the emotional aspects of the danger of nuclear power has to be taken into consideration. I’m sure there are many who would argue that only the rational arguments should be taken into consideration.

However, the advocates of nuclear power have cast every kind of insult at their opponents ranging from tree hugger to murderer (that’s right, since using coal power can increase death from particulate matter, opposing nuclear power is murder), I think the use of the irrational on that side is already well established.

James Pilant

In any debate over nuclear power, the people calling for a “rational” discussion tend to be proponents of nuclear power. In response, those in the “anti-nuclear” camp will often adopt the “rational” vocabulary of their “pro-nuclear” counterparts, basing their arguments on issues of cost and statistical risk (and perhaps some case studies to prove the viability of renewable sources of energy). And thus, there emerges a tacit consensus between thes … Read More

via Rational and Green

In the Tradition of Shays’ Rebellion, America is Poised to Tear Down Our Monetary System (via Job Voucher Plan)

On By southwerkIn business ethics

This is a really interesting take on history comparing Shay’s rebellion with current unrest. It is an intellectually stimulating argument. I rarely see historical arguments on the web. In my field you mainly get economic, philosophical or political arguments. This is refreshing change.

I don’t agree with everything here. But full agreement is never necessary to enjoy a good post. I hope you enjoy it as much as I did.

James Pilant

In the Tradition of Shays' Rebellion, America is Poised to Tear Down Our Monetary System America is now poised to repeat a test of our Republic that played out at the end of the Revolutionary War in the state of Massachusetts, that of Shays’ Rebellion. In 1776, 90 percent of the patriots who fought in the war left their farms to do so. To feed the war effort, others sought loans from bankers and wealthy merchants to increase the size of their farms. Returning from the war in 1783, former soldiers found their farms in disarray. Return … Read More

via Job Voucher Plan

High radiation found at Japan’s Fukushima plant (via National Post | News)

On By southwerkIn business ethics

Just when you think the Fukushima crisis had finally been scrubbed from the news by various interest groups and the Japanese government, it comes roaring right back at you.

James Pilant

TOKYO — Pockets of lethal levels of radiation have been detected at Japan’s crippled Fukushima Daiichi nuclear plant in a fresh reminder of the risks faced by workers battling to contain the worst nuclear accident since Chernobyl. Plant operator Tokyo Electric Power (Tepco) reported on Monday that radiation exceeding 10,000 millisieverts per hour was found at the bottom of a ventilation stack standing between two reactors. On Tuesday Tepco said i … Read More

via National Post | News

Jayaraman Rajah Iyer Comments on My Post – The Ethics Sage Wants the Politicians Gone!

On By southwerkIn business ethics

Jayaraman Rajah Iyer is a buddy of mine. He comments on economic issues and always has something interesting to say and often controversial as well.

Here are his comments in full.

James Pilant

Jayaraman Rajah Iyer

I quote from my bookmark of Washington Post by Jim DeMint “On Sept. 12, 2009, millions of citizens rallied across the country. They gathered in the nation’s capital and other cities to convey a clear message: You work for us; we don’t work for you. Stop the bailouts, the takeovers, the debt and dependence”

In response to the first amendment Freedom of Speech, ‘Government for the People’ maintains stoic silence and conveys ‘yell as you like. Always, it is Government for a few people’.

In India we do have to go a long way in bringing the Government tuned to the people. Those who are trying, struggle but no comparison to the struggle of the masses who exist below poverty line, a 550 million of them. However, there are some initiatives from the government that were put through some years back, would be of considerable interest to the people of United States. It was in 1965 that the government of India brought out a compulsory Cost Audit for manufacturers of vegetable oils as an essential commodity for the masses. Every fortnight companies like Unilever had to go to the government for permission to increase the price of a tin of vegetable oil justifying in detail the cost escalation the company in question had gone through the period of 15 days. [Dr. Kaplan’s ABC that came in 1983, was in full use in 1966 by every such company providing the government with cost data analysis.] The cost audit system was successful and subsequently it was extended to very many commodities including medicine and petroleum that are in vogue even today.

Had not the Indian government introduced the cost audit we would have rich companies, poorer government and higher inflation. In US it is unthinkable that the government would intervene in the running of the companies. Today US is full of companies that are very rich, like Apple is said to have more money than the government, but government is running at loss. The US Senators and Congressmen do not realize that ‘Government for the people’ is no longer with them, it is with a few with ‘massive private gains at public loss’. Corporate Social Responsibility in US is an illusion.

Why is the Debt Ceiling Crisis a Business Ethics Crisis?

On By southwerkIn business ethics1 Comment

Because there are several serious business ethical questions involved.

We simply be in this mess without astroturfing by corporate interests. That is immoral. Creating apparently grass roots public groups with corporate money and then launching it at opponents as if it weren’t the financing corporation is blatant deception.

The hard right wing candidates would have had a great deal more difficulty getting elected without last minute infusions of corporate cash made possible by the Supreme Court’s Citizen’s United decision. The idea that a corporation is the equivalent of a person in terms of political and free speech activity is more political comedy than rational thinking. The concept that a corporation with forty billion dollars it can allocate to a political campaign should be on the same footing as a actual human being who on the average makes about 34,000 dollars a year in this country is a concept whose only value is a massive shift in political power and that is what is happening. American citizens are increasingly insignificant in the political realm. The decision was immoral. It placed the interests of powerful corporations above that of humanity.

The current economic crisis was caused by financial profiteering. Without this current depression, there would have been a great deal more tax revenue. Besides the practice of “disaster” conservatism, where any economic disaster can be exploited to impose financial hardship on the middle class, would not have been possible. Financial profiteering is immoral. It is also illegal but you couldn’t tell it by the actions of “our” government.

I can go on – blatant manipulation of our laws to directly divert public money into corporate coffers – outsourcing – avoidance of taxes – and on and on. All of these and more created our current impasse and are destroying the ability of middle class Americans to own homes, provide for their children, have stable retirements or too survive financially day to day.

We have a crisis in this government but the moral and ethical crisis of the businesses of this nation are root and branch of the problem.

We would not be in this situation without rampant ethical and moral failings in the business world. And the corruption has afflicted our government and there seems little hope of a cure.

James Pilant

Tea Party gives Boehner a budget headache (video)

On By southwerkIn business ethics

This is an animated film from Taiwan News explaining the budget impasse in the United States. It’s very strange and a mild R for scatological humor.

James Pilant

Paul Krugman Says to the House of Representatives – Vote NO

On By southwerkIn business ethics1 Comment

Best line –

Third, the idea that a temporary disruption would permanently damage faith in US institutions now seems moot; if you haven’t already lost faith in US institutions, you’re not paying attention. 

Paul Krugman

This is from Krugman’s post – If I Were In The House

Here’s his essay –

I guess I have to be explicit at this point: yes, I would vote no.

What about the catastrophe that would result? Several thoughts.

First, what I keep hearing from people who should know is that Treasury won’t actually run out of cash tomorrow, that it still has a few more days.

Second, the people who claim that terrible things would immediately happen in the markets also claimed that there would be a big relief rally once a deal was struck. Not so much: the Dow is down 121 right now.

Third, the idea that a temporary disruption would permanently damage faith in US institutions now seems moot; if you haven’t already lost faith in US institutions, you’re not paying attention.

Fourth, those legal options are still there. Obama can move now; and even if he eventually loses in the courts, that gives him time.

Sure, it’s risky. But the whole situation is immensely risky, thanks to the extremism and bloody-mindedness of the right. There are no safe options, and trying to play it safe when there is no safety lands you, well, where Obama is right now.

I fully agree. No deal and default is better than submitting to blackmail and creating a new forth branch of the government.

James Pilant

Bulldoze: The New Way To Foreclose (via Time Magazine)

On By southwerkIn business ethics2 Comments

Let me try and understand this. The banking industry seized these homes, these precious homes, often the most valuable single thing that a family had, and having seized the home and cast away the occupants like so much chaff, they bulldoze it?

The banks do the deals because once the properties are donated they no longer have to pay taxes or for upkeep. Tax experts say the banks may also be able to get a write off for the donation. That appears to be a better deal than trying to repair some of these homes, which according to a BofA spokesperson are more economical to demolish than fix up. The local governments like these deals because they get free land to develop or use for open space. Cleveland-based Cuyahoga County Land Reuntilization Corp., which inked the deal with BofA, has been one of the most aggressive local government organizations in striking these deals. Housing economists like these deals because they remove homes from the market that would otherwise sell for a low price or not at all, dragging down home prices in general. An oversupply of homes on the market has been once of the big problems plaguing real estate. At the end of June, it would take nine and a half months for the current number of homes on the market to sell. The housing market is considered healthy when supply equals six months of sales. So taking some of these homes off the market for good could remove some of the inventory drag.

Thank God, Time Magazine is on the story. They’ll give these banks a talking to. They’ll call down the righteous ire of the oppressed down upon these home destroyers.  But wait … !!! –

The question is whether the banks will ever put up enough housing for demolition to make a difference. The Obama administration says it is working on its own plan to revamp its loan modification program in order to help keep more people in foreclosure in their homes, reducing the number of foreclosed properties on the market. Some areas of the country are looking at how to speed up foreclosures in an effort to return some normality to the market. It’s not clear that any of this will work. Certainly, the idea that we are at the point where banks would be better off knocking down houses that reselling them shows there is still something very wrong with the housing market. But what is clear is that banks and others are at the point where they are ready to try something new to boost the housing market. And that is a good sign for the future.

Time Magazine says we’re not bulldozing enough homes. That’s right. We live in a nation where the weekly press has discovered that if only the banks had the guts to bulldoze a lot more homes, things would be better.

This is the wisdom of the beltway, a never never land generally located near Washington but often and more simply a state of mind. In the beltway, the concerns of people for jobs, homes and economic security are the cries of the weak and whiny. Really important people are concerned about “who is winning” in Washington. Really important people constantly read articles about where it’s most profitable to live, where the taxes are lowest and where to invest their money. Really important people sit up and take notice of every move on the stock market and if a man has made a fortune his lack of gentlemanly qualities, overt greed, and often actual crimes means he is quoted as an authority.

Go read the magazine if you can stomach it. They simply don’t live in a middle class world. And they don’t care.

James Pilant

Rogue Columnists Blasts Debt Deal (via Rogue Columnist)

On By southwerkIn business ethics
Rogue Columnist!

As always, Jon Talton writes with a acid pen but this budget deal calls for nothing less. Here’s what he has to say –

As expected, President Hoover and the corrupt/enervated Democratic Party gave away any tax increases in the debt-ceiling stand-off. The results of this “balanced approach” will be years, if not decades, of economic and social destruction. The Republicans have a partner in their cherished ambition to dismantle Social Security, the Great Society and the New Deal in the party of Franklin Delano Roosevelt. As with the 24 million un- or underemployed Americans in a nation of 301 million, the damage will begin at the margins and not be fully felt for years.

That’s about right. This horrifying spectacle of political blackmail and presidential failure will damage this country for decades. The agreement calls for the creation of a Super Congress which will not be subject to the will of the people, essentially a politburo designed to do the unpopular things because in their minds the desire of the American people for job security, a stable retirement and help with medical costs brand them as irresponsible.

James Pilant