California and Britain: “Calexit” and “Brexit”?

Nearly six months after a majority of British voters voted to secede from the E.U., interest was building among Californians on the possibility of a “Calexit” from the U.S.[1] In fact, supporters were proposing a referendum to take place in 2019. Although the two exits would be comparable—two large states of empire-scale unions (California’s economy being larger than that of France, and California’s population being larger than that of Poland)—the reasons for a Brexit are more fundamental than those for a Calexit. As a result, the secession of Britain from the E.U. would have a firmer foundation in terms of political theory.

The complete essay is at Essays on Two Federal Empires.

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1. Eugene Scott, “Interest in #Calexit Growing after Donald Trump Victory,” CNN, November 10, 2016.

Societal Norms Understating Unethical Corporate Cultures: The Case of Wells Fargo

The case of Wells Fargo suggests that even when a massive scandal is revealed to the general public, the moral depravity of a company’s culture is skirted rather than fully perceived. Wells Fargo was fined a total of $185 million by regulatory agencies including the Consumer Financial Protection Bureau, which had accused the bank of creating as many as 1.5 million deposit accounts and 565,000 credit-card accounts that for which consumers never asked. The bank fired 5,300 employees over the course of about five years after it was revealed those employees had opened the accounts and credit cards.[1] Wells Fargo's CEO at the time, John Stumpf, "opted" for a cushy early retirement after an abysmal performance before a U.S. Senate committee; he walked away from the bank with around $130 million[2], and none of the other members of senior management were fired, or "retired," obliterating any hope societally that any of the senior managers would be held accountable. This result is particularly troubling, given the true extent to which that management had turned the bank into an ethically compromised organization.

The full essay is in Cases of Unethical Business, available in print and as an ebook at Amazon.com.  

Organizational Conflicts of Interest and National Interest: The Case of Hillary Clinton and the Clinton Foundation

Organizational lapses, such as in non-profits or companies, regarding institutional conflicts of interest can extend in impact as far as distorting or impairing government policy and national interest if a principal of the organization also holds a high government office. Relying on whether a position in such a dual-role has scruples of character against exploiting conflicts of interest is vulnerable because people differ substantially in character. As a result, I contend that even the appearance of such conflicts should not be permitted. I use the case of U.S. Secretary of State Hillary Clinton and the Clinton Foundation to make my point.

The full essay is at "Hillary Clinton and the Clinton Foundation."

Iceland’s Pirate Party on Systemic Change in Developing Democracy

Rarely does systems theory become a political issue; instead, political parties and their respective candidates brandish policy positions geared to fixing particular issues (i.e., parts of systems). In Iceland, the Pirate Party proffered an exception leading up to the 2016 election. “We do not define ourselves as left or right but rather as a party that focuses on the systems,” said Birgitta Jónsdóttir, the party’s leader.[1] In other words, the party made the system itself the issue. “We stand for enacting changes that have to do with reforming the systems, rather than changing minor things that might easily be changed back,” she said.[2] Even if the minor things could not be easily changed back, I contend that fixing them is still sub-optimal when the systems of which they are part are warped, and thus deficient as wholes. Therefore, a political party’s emphasis on systems as themselves being in need of reform presents the world’s population with a practical way to redress systemic problems.

The full essay is at "Iceland's Pirate Party."

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1. Kim Hjelmgaard, “Hacker-founded Pirate Party Could Win Iceland’s Election,” USA Today, October 28, 2016.

2. Ibid.

Wallonia Threatens to Veto the E.U.-Canada Trade Treaty: Complicating State Sovereignty in the E.U.

"The European Union and Canada signed a far-reaching trade agreement on [October 30, 2016] that commits them to opening their markets to greater competition, after overcoming a last-minute political obstacle that reflected the growing skepticism toward globalization in much of the developed world."[1] The obstacle may indeed have reflected increasing resistance at the time to globalization, but this veil can be pulled back to reveal the underlying political obstacle--that of states' rights in the E.U., taken to a crippling extreme.

The complete essay is at Essays on Two Federal Empires.

1. James Kanter, "Canada and E.U. Sign Trade Deal, Bucking Resistance to Globalization," The New York Times, October 30, 2016.

An Anti-Obesity, Anti-Poverty Philanthropist Joins PepsiCo.’s Board: A Case of Reform from Within

In October 2016, Darren Walker, president of the Ford Foundation, became the newest member of PepsiCo’s board of directors. Whereas Walker worked at the time for a more just and equitable society, Pepsi was making the bulk of its money by selling sugary drinks and fatty snacks and there being a well-established link between obesity and economic inequality. Would he be working at cross-purposes? “There’s a risk that he will be viewed as inconsistent,” said Michael Edwards, a former Ford Foundation executive at the time.[1] The company itself could also be viewed as being inconsistent—lobbying against anti-obesity public-health legislation while putting Walker on the board of directors.

The full essay is at "Philanthropist Joins PepsiCo.'s Board."

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1. David Gelles, “An Activist for the Poor Joins Pepsi’s Board. Is That Ethical?,” The New York Times, October 28, 2016.

CO2 Record-Level in Atmosphere: Implications for Human Population

In 2015, average global CO2 levels for the year surpassed 400 parts per million for the first time, the WMO revealed in its 2016 annual Greenhouse Gas Bulletin. At the time, any scientists regarded that ratio of carbon dioxide to other gases in the atmosphere as a “climate change touchstone.”[1] Curiously, however, 400 ppm was not considered a tipping point. It was still possible to reverse the progression of the ratio—yet no one seems to ask how long that would take. In this regard, the ratio’s accelerating rate is particularly telling. Practically speaking, 400 ppm may in fact be a tipping point.

The full essay is at "CO2 Record-Level."

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1. Lydia O’Connor, “The Planet Just Crossed Another Major Carbon Milestone,” The Huffington Post, October 25, 2016.

AT&T Buys Time Warner: An Expansive Strategy Amid Industry Uncertainty

After Comcast’s $30 billion takeover of NBCUniversal and Verizon’s acquisitions of the Huffington Post and Yahoo, AT&T agreed on October 22, 2016 to buy Time Warner for $85.4 billion. The ability to produce content and deliver it to millions of viewers “with wireless phones, broadband subscriptions and satellite TV connections was not lost on either board.[1] At the time, AT&T sold “wireless service in a saturated market, while Time Warner [was] a content company whose primary assets, networks like CNN and HBO, [faced] tougher times in a cord-cutting world.”[2] Although AT&T’s board could be accused of empire-building wherein bigger is better (i.e., more powerful), the stabilizing impact of combining wireless service and content could hardly be ignored in a business-environment so full of change and uncertainty. In other words, with the traditional television industry facing such dire threats to its revenue-structure due to the proliferation of high-tech substitutes, having the wherewithal to formulate and experiment with different distribution means and even content was at the time a fitting strategy.

The full essay is at "AT&T Buys Time Warner."

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1. Michael J. de la Merced, “AT&T Pledges $85 Billion To Acquire Time Warner,” The New York Times, October 23, 2016.

2. Farhad Manjoo, “AT&T-Time Warner Deal Is a Strike in the Dark,” The New York Times, October 24, 2016.

Apple’s iPhone and the FBI: Recalibrating the Right-to-Privacy

On February 29, 2016, a federal judge rejected the FBI’s request to unlock the work-issued iPhone 5c of Syed Rizwan Farook, who with his wife killed 14 people at a 2015 holiday gathering of county workers. The FBI and DEA cited the All Writs Act, a law passed in 1789 that authorizes federal courts to “issue all writs necessary or appropriate in aid of their respective jurisdictions and agreeable to the usages and principles of law.”[1] The U.S. Justice Department was demanding that “Apple create software to bypass security features on the phone.”[2] In other words, Apple was to “write code that overrides the device’s auto-delete security function.”[3] In response, Apple’s lawyers argued that the statute does not give the court the right to “conscript and commandeer” the company into defeating its own encryption, thus making its customers’ “most confidential and personal information vulnerable to hackers, identity thieves, hostile foreign agents and unwarranted government surveillance.”[4] Tim Cook, Apple’s CEO at the time, said the FBI “was asking his company to create a ’back door’ that could be used to unlock other phones, exposing customer data. Agreeing to the FBI's demand would set a dangerous precedent that could lead to other calls for Apple's help to obtain private information, Cook said.”[5] Only weeks later, the FBI abruptly dropped the case because the bureau had found an outside company with technology that could serve as a master key. The FBI could use the “key” to unlock any iPhone. This left customers fearful that their data was now less than private even though Apple had promoted the iPhone product as not having a “back door” In the end, “(t)he iPhone fight exposed a rift between the FBI and Silicon Valley technology companies over encryption, and sparked a debate about the right balance between privacy and national security.”[6] I suspect that although a trade-off, or tension between the right of privacy and the national-security interest of the United States existed at the time, electronic privacy would become harder and harder to protect as a result of the FBI’s tactics.  

The full essay is at "Apple's iPhone and the FBI."

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1.  Jim Stavridis and Dave Weinstein, “Apple vs. FBI Is Not About Privacy vs. Security—It’s About How to Achieve Both,” The World Post, March 8, 2016.

2. The Associated Press, “New FBI Head in San Francisco Was Key Figure in iPhone Hack,” The New York Times, October 5, 2016.

3. Jim Stavridis and Dave Weinstein, “Apple vs. FBI Is Not About Privacy vs. Security—It’s About How to Achieve Both,” The World Post, March 8, 2016.

4. Jim Stavridis and Dave Weinstein, “Apple vs. FBI Is Not About Privacy vs. Security—It’s About How to Achieve Both,” The World Post, March 8, 2016.

5. The Associated Press, “New FBI Head in San Francisco Was Key Figure in iPhone Hack,” The New York Times, October 5, 2016.

6. The Associated Press, “New FBI Head in San Francisco Was Key Figure in iPhone Hack,” The New York Times, October 5, 2016.

Saudi Arabia Beheads a Member of the Royal Family: Justice for All, Atrociously

On October 18, 2016, Saudi Arabia executed a member of the royal family for committing murder during a brawl. Prince Turki bin Saud bin Turki bin Saud al-Kabeer was put to death most likely by beheading in a public square—as this was the usual method at the time. As horrific as such an execution is, the point that law applies to everyone is laudable—especially “on point” for countries in which the rich can “get away with murder” by hiring the best (and most expensive) lawyers.  The atrocious means of execution coupled with the dictum that the law really does apply to everyone renders this case particularly difficult to analyze from an ethical perspective. 

The full essay is at "Saudi Arabia Beheads."

A Housing Bubble in China: A Rationale for Government Intervention

As of October, 2016, China was in the midst of a dizzying housing bubble. A month before, “economists at the Bank of China warned in a report that worsening asset price bubbles were adding to a frothy market that could result in trouble.”[1]  Shanghai’s average housing price was up nearly one-third from a year before; prices in major cities like Beijing and Guangzhou were not far behind.  The recognition of the bubble—which does not come easily—should have triggered counter-cyclical measures by the Chinese government.

The full essay is at "A Housing Bubble in China."

1. Neil Gough and Carolyn Zhang, “In China, Property Frenzy, Fake Divorces and a Bloating Bubble,” The New York Times, October 16, 2016.

U.S. Government adds $587 Billion to Its Debt in 2016: Revealing a Fault-line in Democracy

The U.S. federal-budget deficit for the fiscal year that ended at the end of September, 2016, represented a reversal on the six-year run of declining deficits. The $587 billion deficit is equivalent to 3.2% of GNP; the previous year’s deficit had been $438 billion, which is 2.5 percent of the GNP.[1] The underlying reason for the altered trend has to do with democracy itself—something notoriously difficult to budge.

The full essay is at "U.S. Budget Deficit of $587 Billion."

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1. Jackie Calmes, “U.S. Deficit Increases to $587 Billion, Ending Downward Trend,” The New York Times, October 14, 2016.

Christian Leadership in Pope Francis’s Naming of Cardinals

In naming 17 new cardinals in October, 2016, Pope Francis moved closer to putting his stamp on the sort of cleric who would follow him as pontiff. Similar to a U.S. president’s power to nominate justices to the U.S. Supreme Court, a pope’s power to appoint cardinals who presumably can vote in the next concave is decisive in terms of leaving a legacy. With the additional cardinals, Francis had appointed 40 percent of the cardinals who could vote in the next conclave. The fact that cardinals tend to be old suggests, however, that any lasting legacy would not be long lasting. I submit that the cardinals’ typical age and even other qualities suggest that the rubric a pope uses in selecting clerics for the red hat says a lot about how the pope approaches Christianity. 

The full essay is at "Christian Leadership."

E.U. Free-Trade After Brexit: Applying Domestic Requirements to International Trade

With the E.U. state of Britain set to secede from the Union, one major question was whether British businesses would continue to get unfettered access to the E.U.’s domestic market. I submit that subjecting free-trade negotiations to stipulations that are oriented to states rather than trading partners is unfair to Britain. Given the extraordinary influence of E.U. state officials at the federal level, this is a case in which the political influence of British business would be constructive rather than subversive of the public domain to private interests.

The full essay is at "Essays on the E.U. Political Economy," available at Amazon.

The E.U.’s Border-Control and Coast Guard: Held Hostage by Confederalism

In policing its borders as late as 2016, the E.U. suffered the same plight as the U.S. did under its Articles of Confederation—only whereas in the case of the U.S. the States retained all of their governmental sovereignty under the Articles, some governmental sovereignty in the E.U. was already lodged at the federal level. I contend that this perplexing disjunction between extant federal competencies and state rights in the E.U. is not sustainable.

The full essay is at "E.U.'s Border-Control."