U.S. Defense Contractors under Pressure

In a republic, which is characterized by representative rather than direct democracy and includes checks on even the elected representatives, private interests, such as corporations that manufacture weapons purchased by the government, undue the very legitimacy and public good of a republic when the elected (and appointed) public officials capitulate to those interests because those interests are of a part rather than the whole. The profit calculus of a defense contractor is not necessarily in line with the national interests of the country in which the corporation operates. Furthermore, acquiescing to the relatively narrow private benefit of corporations places an elected official in the position of possibly betraying one’s constituents and even the national security—the public good—of the whole, the country. It is in the political (and even financial) interests of such officials to hide or obscure their motives in voting on a defense budget by using “real threats abroad” as a subterfuge to increase defense spending going to contractors in payment for more weapons. The threats may be real or not. How would an electorate possibly know without access to classified information? Adam Smith wrote of his concern that governments and capitalists would collude to shortchange labor. The collusion can also be at the expense of an electorate and even a republic itself. In response to Elizabeth Willing Powel’s question on what sort of government the U.S. Constitutional Convention had just proposed, Ben Franklin is said to have replied, “A republic, if you can keep it.” The People may be at a considerable disadvantage without realizing it if distant collusion is financially and politically sufficiently concentrated and furtive under subterfuges of public-policy ideals.

The full essay is at "U.S. Defense Contractors under Pressure."

Regulatory Capture and the Public Interest: The FDA

The head of the Food and Drug Administration, Marty Makary, “resigned” in May, 2026 even though the decision had been made by U.S. Health and Human Services Secretary Robert Kennedy “and then the White House signed off on it.”[1] Although Makary had been annoyance to drug-company executives, and to that extent his removal was due to pressure on President Trump by the CEOs, his “resignation” supports the theory of regulatory capture, wherein the regulated companies control the very regulatory agencies (and regulators therein) that regulate those companies, this case shows that it is possible for an industry’s interests to be aligned with the public (health) interest. Does the alignment regarding getting rid of a particular regulator lessen the unethical quality of the broader conflict of interest between business and government?

The full essay is at "Regulatory Capture and the Public Interest."

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1.  Matthew Perrone and Seung Min Kim, “Trump FDA Chief Is Leaving After Angering Pharma CEOs, Vaping Lobbyists and Anti-Abortion Groups,” APnews.com, May 12, 2026.

UN Climate Conferences Harbor an Institutional Conflict of Interest

Whereas people become instantly upset upon hearing that someone has self-aggrandized oneself by exploiting a conflict of interest, by, for example, embezzling funds for personal use, our species has the tendency to ignore the institutional variety of conflicts-of-interest. We don’t want to hear of another person incurring a privately-held benefit by ignoring the duties of one’s office, such as fiduciary responsibility, but we are fine with countries whose dominant industry is oil hosting the UN’s annual climate conferences. The sheer denialism entailed in assuming that the governments of such countries can be expected to steer a conference from the interests of the domestic oil companies is astounding. If there were ever a case of private benefits being at odds with the public benefit from mitigating climate change from carbon emissions by humans, this instance would be it. As had been the case of tobacco companies that promoted smoking even to minors while knowing that smoking kills or at least shortens a person’s lifespan, oil companies place their own profits, which are only a benefit to themselves, their managements, stockholders, and their external sycophants (i.e., governments) through more tax revenue and higher political contributions, above whether the planet warms more than 2C degrees—1.5, the prior limit, being passed in 2024. In other words, greed (i.e., the desire for more) can render board directors and managements oblivious to even forecasts of catastrophic impacts from global warming. In 2024, as COP29 was in progress in the Azerbaijani capital, Baku, Al Gore, who had been the U.S. vice president during the eight-year Clinton administration in the 1990s, was astonished by how blatant (and undercutting relative to the conference’s goal) the institutional conflict of interest has been in allowing petro-states to be the hosts. I’m skeptical, given the lapse that seems to be inherent in the human brain when it comes to assessing and even recognizing such conflicts of interest, whether Gore’s “wake-up” call would make more than a ripple next to the power of the oil industry, given its private wealth.

The full essay is at "UN Climate Conferences: An Institutional Conflict of Interest."

A Grocery Store Company Lobbies for Special Status during the Coronavirus Pandemic While Falling Short

In early April, 2020, Albertsons Companies, which at the time owned Safeway, ACME Markets, Jewel-Osco, Vons, Pavilions and Albertsons grocery stores, joined with United Food and Commercial Workers International Union (UFCW) to get American governments to designate the workers as first responders. The joint statement reads in part, “The temporary designation of first responder or emergency personnel status would help ensure these incredible grocery workers access to priority testing, have access to personal protection equipment, like masks and gloves, as well as other workplace protections necessary to keep themselves and the customers they serve safe and healthy.”[1] Although keeping grocery workers healthy was important, the focus on testing and equipment can be viewed as problematic in that the company’s management was falling short on more crucial safety measures to protect the employees (and customers) from becoming infected.

The full essay is at "Grocery Store Employees as First Responders."

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1. Aine Cain and Hayley Peterson, “A Major Grocer Is Pushing to Classify Its Employees as First Responders, Giving Them Priority for Testing and Protective Gear,” Business Insider, April 7, 2020 (accessed April 8, 2020).

Members of Congress Secretly Lobbied the Fed

As of late September 2012, more than one hundred members of Congress had lobbied the Federal Reserve and other regulatory agencies on the Volcker Rule, the part of the Dodd-Frank Financial Reform Act of 2010 that prohibits banks from operating like casinos (e.g., trading with proprietary funds, rather than those of customers).[1] The rule stems from the importance of banks in our financial system. In September 2008, the world nearly witnessed the collapse of that system when banks stopped trusting each other (e.g., via commercial paper market) because of the risks that some of the big ones had been taking with mortgage-backed derivative securities and the related insurance swap securities. Awash in healthy-seeming fees, the banks purchased risky subprime mortgages and bundled them into bond-like securities that could be sold to investors.

The full essay is at "Congress Secretly Lobbied the Fed."

1. Ben Protess, “Behind the Scenes, a Lawmaker Pushes to Curb the Volcker Rule,” The New York Times, September 21, 2012.

Corporations and Political Debate: Taxation & Regulation

Under U.S. law, the corporation is a legal person, whose wealth can constitute political speech protected by the first Amendment. It is no matter that the corporation is an artifice constructed by the state for economic purposes: to concentrate wealth in order to produce goods or provide services. That such an entity would lobby and spend money (or “speak”) for political purposes may from this standpoint seem strange, or out of place. To be sure, political influence can indeed help the bottom economic line, but is a corporation a political actor if the purpose is economic? 

The full essay is at "Corporations and Public Debate."

On the Political Power of Capitalism in American Society

In his confidential memorandum, “Attack on American Free Enterprise System,” Lewis Powell, later to be a justice on the U.S. Supreme Court, wrote in 1971 that the “leftists” were launching a frontal assault on the “free enterprise system,” “capitalism,” or the “profit system.” Powell saw this as an attack on rather than a defending of the “American political system of democracy under the rule of law.” That the corporate profit-interest might be a threat to “one person one vote” apparently did not occur to the future Justice. Rather, what is good for GM he presumed must be good for American democracy. Moreover, both, he presumes, are consistent with, or perhaps even foundational for, American values.

The full essay is at "On the Political Power of Capitalism."

Facebook’s Mark Zuckerberg: Power beyond Corporate Governance

Facebook’s Mark Zuckerberg and Sheryl Sandberg did not attend a committee hearing at Canada’s Parliament on May 28, 2019 in spite of having received summons from Bob Zimmer MP, the committee’s chair. Instead, Facebook sent its director of public policy and its head of public policy for Facebook Canada. “Shame on Mark Zuckerberg and shame on Sheryl Sandberg for not showing up today,” Zimmer said toward the end of the hearing.[1] For sending two representatives rather than themselves, Zuckerberg and Sandberg faced the possibility of being held in contempt. They had testified before the U.S. Congress, so by sending two representatives the two leaders of Facebook may have acted rather dismissively concerning Canada’s federal legislature. At the time, Zuckerberg had virtually unchecked power at Facebook, including over the other stockholders. From his perch, the power may have been going to his head; even after two years of user-privacy scandals, Facebook’s CEO and Chairman of the Board may have determined that summons from legislatures where the company was operating were beneath him. Such a mentality is dangerous for a person with autocratic control of such a large company.

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1. Donie O’Sullivan and Paula Newton, “Zuckerberg and Sandberg Ignore Canadian Subpoena, Face Possible Contempt Vote,” CNN.com, May 28, 2019.

Behind Corporate Loopholes: Wealth and Power

A company in the U.S. wants a tax loophole to apply. Starbucks, for example, wanted to be able to use the manufacturing deduction by stretching manufacturing to include the roasting of coffee beans. So in 2004 the company hired Michael Evans, a lobbyist at K&L Gates who had just a year before worked as a top lawyer on the U.S. Senate Finance Committee, which writes tax law. Evans was able to urge his former colleagues in the Senate to expand the definition of manufacturing to include roasting in a clause added to a 243-page tax bill called the American Jobs Creation Act.  As you might imagine, Starbucks was not the only company to get a tax break written into that law. By 2013, the manufacturing deduction had saved Starbucks $88 million that the company would otherwise have had to pay in corporate income tax. In 2012, corporate tax breaks and loopholes added $150 billion in lost revenue for the federal government, increasing the budget deficit by that amount.[1] Three lessons can be gleamed from the hidden corporate loopholes.

The full essay is at "Behind Corporate Loopholes." 

1 Ben Hallman and Chris Kirkham, “As Obama Confronts Corporate Tax Reform, Past Lessons Suggest Lobbyists Will Fight For Loopholes,” The Huffington Post, February 15, 2013.

Public Access to the Public Domain Increasingly Privatized for Profit

To Aaron Swartz, the subject of the documentary, The Internet’s Own Boy (2014), the major concern in his day regarding the internet was not the ability of a person to create a blog or use social media; rather, the problem was in the trend of the power of the gate-keepers, who tell you were on the internet you want to go, concentrating. In other words, the issue concerned what commands our attention. More specifically, who gets access to the ways people find things on the internet. “Now everyone has a license to speak; it’s a question of who gets heard,” he said.  Although he was a computer wiz, he also had political aspirations; both of which were on display as he lobbied against the Stop Online Piracy Act (SOPA), which was introduced in Congress in October of 2011. Unfortunately, the combination of his computer and political skills got the attention of the FBI, which engaged in a relentless pursuit of him until, under the pressure, he committed suicide at the age of 26. His short life was one of idealism that should not have been squashed by an unstoppable criminal-justice system, especially when influenced by political pressure from corporations and politicians. Lest the overzealousness of law enforcement obscure a vision of Aaron’s idealism, it can be viewed as public access being restored to the public domain in terms of the internet.

The full essay is at "The Internet's Own Boy."

Corporate Appointees in the West Wing: A Counter-Productive Way of Holding Business Accountable

Presidents in governments are called to be leaders, which means advocating a vision of change from the status quo. Otherwise, they are merely administrators. So it would be counter-productive for a U.S. president to fill his administration with people financially invested in the status quo. Yet President Obama did just that, in spite of the fact that his rhetoric envisioned radical change in health insurance and still regulations on Wall Street to prevent another financial crisis. In short, he not only let the regulatees in the room, but also gave them important roles with power that would affect their respective industries.


The full essay is at "Corporate Appointees in the West Wing: A Counter-Productive Way of Holding Business Accountable."

Auto vs. Oil Industries on Emission Standards: Putting a Part Above the Whole

When a company or an entire industry skips over the good of the whole—the public good—in lobbying for legislation that only reflects the needs or desires of individuals (qua consumers only), the society itself (and even the Earth) is slighted and thus more at risk. For the good of the whole is more than just the cumulative needs and desires of individuals in part because the latter do not take into account the wider effects of their choices. When an individual company or industry takes this point into account and rebuffs favorable legislative proposals because they would do too much damage to society and/or the planet, social responsibility is at hand. Companies or industries that do not are thus irresponsible from the standpoint of the whole, which, through government, is justified in keeping an eye on them (especially in making transparent their efforts to influence legislation and regulation. The American auto and oil industries can be distinguished in this regard. 

The full essay is at "Industries: Putting a Part Above the Whole."

Handouts in Averting the Fiscal Cliff: The Price of Politics?

What is that nebulous thing called politics? Might it be that the practice is essentially exploiting or creating what are known as principal-agent costs? That is, might politics boil down to a skill in the agent (elected representative) in putting his political or economic interests ahead of doing the bidding of his principal(s) (i.e., his constituent body).  
In the U.S. Senate bill in early 2013 to obviate the “fiscal cliff,” for example, the Democrats may have agreed to benefits for the Republican lawmakers’ campaign backers in exchange for going along with a more progressive federal income tax system. Among the added provisions were special expensing rules for certain film and television productions—no doubt those made by particular campaign contributors. The provision for tax-exempt financing for the New York Liberty Zone around the former World Trade Center may also have been a favor to a particular someone. Lest it is wondered what an extension of the American Samoa economic development credit was doing in an expedited measure to obviate the “fiscal cliff,” the answer may have had to do with a particular Republican lawmaker’s relationship with someone having an interest in American Samoa. I can only speculate here, as I was not privy to the actual relationships and negotiations. However, the sheer strangeness of such provisions in such a bill suggests that the particular political or economic interests of particular Republican lawmakers may have been the culprit.

 Is money the language of politics?    citizen.org

The full essay is at "Handouts in Averting the Fiscal Cliff."

Were Raises at Bailed-Out U.S. Companies Approved by Treasury?

In early 2013, the Special Inspector General for Troubled Asset Relief Program reported that the U.S. Treasury Department disregarded its own guidelines in order to allow large pay increases for executives at three major companies that had received bailouts during the financial crisis. In particular, eighteen raises for executives at American International Group (AIG), General Motors, and Ally Financial were approved. Fourteen were for $100,000 or more. A raise for the CEO of a division of AIG was $1 million. Treasury approved these raises even though they exceeded the pay limits set in Treasury’s own guidelines.

Was Treasury Secretary Tim Geithner smirking because his friends were happy?     NYT

The full essay is at "Raises at Bailed-Out Banks: Taxpayer-Funded?"

Gary Cohn of Goldman Sachs in the White House: A Hidden Agenda?

Rex Tillerson, the U.S. Secretary of State fired by U.S. President Donald Trump and former CEO of Exxon, an international oil company based in the U.S., did not allow his difference with the president of tariffs on steel and aluminum to be a deal breaker. In this respect, the ex-CEO was not doing his company’s bidding. That is to say, he was not primarily in public service to serve the private interests of a multinational corporation. Unfortunately, this cannot be said of Gary Cohn, the ex-president of Goldman Sachs who quit as Trump’s chief economic advisor just after the tariffs were announced. Tariffs in general and especially to protect goods in another sector are not in the interests of a major American banks with substantial international business. If the former president of Goldman Sachs had taken the post in government to further Goldman’s interests, the question is whether public service is mere window-dressing at the highest levels of government—plutocracy being the real name of the game.

The full essay is at "Gary Cohn of Goldman Sachs."

A Critique of Corporate Political Risk Analysis and U.S. Foreign Policy: The Case of Libya

Even though people the world over instinctively recoiled as reports came in of Gadhafi's violent retaliation against Libyan protests on February 21, 2011, the official reaction from the US Government was muted at best. The refusal to act on an intuitive response to immediately remove the Libyan dictator's ability to wantonly kill people resisting his right to rule may have come from concerns that the mounting tumult of a change of government in a major oil-producing region of North Africa could cause even just a disruption in the supply of crude. Indeed, even the mere possibility was prompting a spike in the price of oil (and gas)--what one might call a risk premium. Even the prospect of an ensuing nasty electoral backlash from consumers having to face a possible increase in their largely non-discretionary gas expense was not lost on their elected representative in chief at the White House. 

The full essay is at "The Case of Libya."

Political Black Holes: On the Power Behind the Throne

Our galaxy, the Milky Way, has a black hole. If this is news to you, there is no need to go hide under a rock. It turns out our black hole is not the biggest by far, and it doesn't spew out a lot of excess energy that falls into it. Even so, it is ours, and we can be glad that we have one of our very own even if it isn't the biggest one on the block. In case you are interested in seeing it’s baleful look in a picture, I’ve got bad news for you; it is invisible. No light can bounce off it.  You are probably wondering how the scientists found it.  Well, they knew that black holes are in the center of galaxies, so the crafty lab coats used invisible light to find our center because there is too much gas there for much there to be visible to us.  The scientists noticed that the speed of stars speeds up around a certain point and posited the existence of a highly-dense black hole.

The full essay is at "Political Black Holes."

On the Strategic Use of Regulation: Financial Reform at the Bequest of Wall Street

According to The New York Times, Wall Street bankers were busy working on how to weaken the regulations or otherwise profit from them before the ink was dry on the financial reform law of 2010 . First, regarding trying to profit from the new regulations, BOA, Wells Fargo and other big banks that were faced with new limits on fees associated with debit cards were imposing fees on checking accounts. Compelled to trade derivatives in the daylight of closely regulated clearinghouses rather than in murky over-the-counter markets, titans like J.P. Morgan Investment Bank and Goldman Sachs were building up their derivatives brokerage operations. Their goal was to make up any lost profits — and perhaps make even more money than before — by becoming matchmakers in the vast market for these instruments. That critics were pointing to them as a principal cause of the financial crisis made no difference to those bankers. Even when it comes to what is perhaps the biggest new rule — barring banks from making bets with their own money — banks found what they thought was a solution: allowing some traders to continue making those wagers as long as they also work with clients.

The full essay is at "Strategic Use of Financial Regulation."

Corporate America's Apathy toward Federalism

In October of 2009, the U.S. House Financial Services Committee voted to give the federal government the power to block the states from regulating large national banks in some circumstances. The compromise approved by the House allows the Comptroller of the Currency to override the states, but only if that office found that the state law “significantly” interfered with federal regulatory policies.  This clears the way for a new federal agency to protect consumers from abusive or deceptive credit cards, mortgages and other loans.  Adoption of the compromise was a partial setback for the banking industry, which would have preferred to avoid having to comply with state laws that are sometimes stricter than federal rules.  Barak Obama and Barney Frank were pushing in the other direction—for subjecting banks to the relatively strict state laws with no chance of appeal to the US. Government.

The full essay is at "Apathy toward Federalism."

Foreign Policy in International Business: BP Trading a Libyan Terrorist for Libyan Oil

Senator Kirsten Gillibrand, D-NY, claimed in July of 2010 that the UK government should investigate what role BP played in Britain’s decision to free Abdel Baset al-Megrahi in August 2009. Al-Megrahi is the only person convicted of carrying out the 1988 bombing of a Pan Am airliner in which 270 people were killed over Lockerbie, Scotland. This is not to say that he acted alone. In February, 2011, Gadhafi's justice minster, Mustafa Abdel-Jalil, who resigned in protest against Gadhafi's massacre of unarmed protesters, told a Swedish newspaper that Gadhafi had ordered the attack. Abdel-Jalil also claimed that Megrahi threatened to "spill the beans" unless his return to Libya were secured. It would appear that BP, a publically-traded stock corporation, played a vital role between Gadhafi and the British government. If so, then aside from Gadhafi's sordid role, this case presents us with an issue of business ethics. Specifically, does a corporation, which is essentially private wealth but with responsibility befitting the power that comes with such wealth, cross a line when its employees engage in foreign policy? The ethical problem inherent in interfering in a juridical sentence is troubling enough; if an unelected corporation becomes so powerful that it can affect international relations between (and foreign policies of) countries, then the issue involves not only business ethics, but also democratic governance. As the line between private and public blurs, the respective bases of legitimacy can become conflated or transposed.

The full essay is at "BP Conducted Foreign Policy."