On the Social Psychology of Rising Credit-Card Debt: A Reflection of American Society?

It is perhaps too easy to point to economic reasons for an increase in debt within a society. The Wall Street Journal reported during the first quarter of 2020 that credit-card debt in the U.S. “rose to a record in the final quarter of 2019 as Americans spent aggressively amid a strong economy and job market, and the proportion of people seriously behind on their payments increased.”[1] The record $930 billion, according to the Federal Reserve Bank of New York, was “well above the previous peak seen before the 2008 financial crisis.”[2] After critiquing the economic explanation, I will suggest that a social-psychological mentality or attitude may be behind not only the rising debt, but also other disappointing manifestations in the contemporaneous American society more broadly speaking.

The full essay is at "A Sordid Mentality Underlies Credit-Card Debt"

---

1. Yuka Hayashi, “Credit-Card Debt in U.S. Rises to Record $930 Billion,” The Wall Street Journal, February 11, 2020.

2. Ibid.

Politics and Religion: President Trump at a National Prayer Breakfast

Politics and religion intermeshed can be a nasty business. Franklin Graham, son of Billy Graham, witnessed every venue of his planned tour in Europe cancel because Franklin had “called Islam ‘evil,’ attacked laws increasing rights for transgender people, and told his followers that the legalization of same-sex marriage was orchestrated by Satan.”[1] Although criticizing another religion is religious in nature, turning to laws renders the attack political too. Although Franklin Graham may have assumed that many of his co-religionists would agree with him both in religious and political terms, wading into controversial political matters risks alienating people who are or would otherwise be religious followers. Even the willingness to traverse into the political realm may not be liked by some religionists, whether followers or not, especially if the incursion is into a controversy. Some co-religionists may agree with the distinctly religious belief, yet hold dissimilar political views. Such distance created between religionists can weaken a religious leader’s credibility and even following in the religious domain. Politicians dragging their respective religious faiths into the political domain can also be problematic, though authentic applications can pay off even if there is a cost politically. The incursion of Christianity at the end of U.S. President Trump’s trial in the Senate and as he took a victory lap can demonstrate the complexities of religion distended into another domain.

The full essay is at "Politics and Religion: President Trump."

---

[1] Rob Picheta, “Evangelist Preacher Franklin Graham Planned a Seven-City UK Tour. All Seven Venues Have Dropped Him,” CNN.com, February 6, 2020(accessed same day).

Tension between Wall Street and Main Street: A Case beyond the Reach of Corporate Social Responsibility

In October 2011, Gerald Seib wrote that political and economic pressures in the wake of the financial crisis were “pushing business leaders into the public cross hairs.”[1] I submit that the very existence of the largest American banks was becoming an issue. In such a case in which a gulf between business and society is so fundamental or deep, corporate social responsibility programs do not suffice and may even backfire. While it is normal for the norms and values of a business sector to differ from those of the wider whole (i.e., society), it is uncommon for a rupture to be so deep that corporate marketing and CSR are not sufficient business responses. I submit that in such cases and where corporations have a lot of power over government officials, CEOs extend their toolset to government to fill in the trench. The "Occupy Wall Street" protests is a case in point. 

The full essay is at "Wall Street and Society Diverge at the 'Occupy Wall Street' Protests." 

1. Gerald F. Seib, “Populist Anger Over Economy Carries Risks for Big Business,” The Wall Street Journal, October 11, 2011. More generally, see Skip Worden, Essays on the Financial Crisis.

Bank Bonuses and Dividends After the Financial Crisis: On the Power of Banks in European and American Government and Society

Dividends are typically based on how much a bank (or company, moreover) has profited, less whatever capital is needed from the profit. Similarly, bonuses are based, at least theoretically, on how the managers and the nonsupervisory employees alike perform as well as how the bank performs. In their respective ways of shoring up banks amid the financial crisis of 2008, the E.U. and U.S. differed on how easy it would be for banks to pay dividends and bonuses, as well as to have access to governmental funding. These differences reflect both the relative power of the financial sector in the governmental sector and the cultural attitudes toward business.

The full essay is at "Bank Bonuses and Dividends After the Financial Crisis." 

CSR and Corporate Governance Reform: An Opporunity for BlackRock as an Activist Shareholder

In 2019, BlackRock’s management and board publically fired two executives in the Hong Kong office for breaching company rules on dating subordinates. The firings demonstrated to employees that the company would enforce its employee policies and sent the message that employees would be “free to point out problems in the workplace.”[1] This would not be so extraordinarily significant but for the fact that BlackRock is the “world’s largest money manager with $7.4 trillion under management,” which enables the company, through the funds it runs, to be “one of the five largest shareholders in nearly every corporation in the S&P 500.”[2] So BlackRock “can cast votes and pressure boardrooms to effect change.”[3] The company would be hypocritical in using its power as a major stockholder to get managements to have and enforce good workplace policies if the company were not doing so itself. From the standpoint of self-regulatory capitalism in society, BlackRock could make a significant contribution far beyond improving workplace policies.

The full essay is at "CSR and Corporate Governance Reform."

---

[1] Dawn Lim, Steven Russolillo, and Jing Yang, “At BlackRock, Public Firings, Overseas Probe Send Message About Office Misbehavior,” The Wall Street Journal, February 3, 2020.

[2] Ibid.

[3] Ibid.

Judaism and Christianity on Climate Change

First Reformed (2017) contains fundamental ideas concerning the human condition and wrestles with the relationship between religion and politics.  Ideas play a significant role in the film, hence it can be used in support of the thesis that film is a viable medium in which to make philosophical (and theological) ideas transparent and derive dramatic tension from clashing ideas. In this film, the ideas that clash concern the role of religion in the political issue of climate change—or is that issue primarily religious?

The full essay is at "First Reformed."

Brexit as a Contribution to Political Development

Britain’s secession from the E.U. was, I submit, based on a reaction within the state against it having given up some of its sovereignty to the European Union. The American states too were originally (i.e., from 1776) fully sovereign until they gave up some limited (i.e., enumerated) sovereignty to the federal level in 1789. In 1861, South Carolina, like Britain, also sought to secede based on the view that too much sovereignty had been transferred. Unlike the UK, however, SC (and then the other seceding states) resorted to force. Although the process of Britain’s secession was arduous, I submit that South Carolina and federal officials had been excessively rigid. Even though the “dual sovereignty” of the European and American federal systems is perpetual, only the E.U. allows for peaceful secession. This evinces a step forward in the political development of federalism. Both a federal union and a strongly anti-federalist state are better off with secession being possible, especially if the process is peaceful. Europe deserves to be congratulated, and America would do well in taking a lesson in order to benefit from the advance. Peaceful secession can be done in a federal system of dual (i.e., federal and state) sovereignty.

The full essay is at "Congratulations to Europe!"

The Senate Trial of President Trump: Riddled with Conflicts of Interest

At the beginning of a U.S. Senate trial on whether to remove an impeached U.S. president from office, the senators take an oath to be impartial jurists. The impartiality is important because the senators are theoretically to listen to the partial U.S. House prosecuting managers and the president’s defense lawyers. Were the senators themselves partial, they would simply reflect the two sides that make their respective cases. In the trial of Donald Trump, I submit that few if any senators had any intention of being impartial and thus as serving as a jurist rather than as an extension of the prosecutors or defense. In effect, the verdict is left to whichever political party controls the Senate. I contend that having the Senate try presidents is problematic due to conflicts of interest.

The full essay is at "A Constitutional Conflict of Interest."

National Absurditas

Words can be stretched, or even abused, in the service of a self-serving ideology that is utterly unfair to other people as well as stubborn facts. Nietzsche theorized that ideas are the stuff of instinctual urges tussling for supremacy in the human mind. Against Kant’s love of the fixed laws of reason for their own sake, I submit that Nietzsche’s tussle of ideas can bend even the laws of reason, like the gravity of large masses can bend space (and thus light) and time. The basic framework of the universe is not static. Neither, I believe, are the rules of reason, and reasoning itself. Intense power, such as that of an ideology, can warp both the basic framework and process of reason. This can explain why ideologues can be seen by others to suffer from cognitive dissidence: holding two contradictory beliefs at the same time. A defense mechanism of ideology can block awareness of one of the two. Self-serving applications of the word, national, is a case in point.

The full essay is at "National Absurdity."

Terms of Office in a Representative Democracy: Greek Austerity

In September 2012, the E.U. state of Greece was in the process of working out a 11.5 euro austerity plan that would involve forced retirements in public sector and pension cuts so the E.U. would approve another installment of the bailout to the state. One resident remarked at the time, “Mark my words. In the coming months, there will be a revolution, and this government will fall.”[1] This sounds a bit like “buyer’s remorse” concerning the election the previous June  in which the anti-bailout/austerity party barely lost. What about all the Greeks who voted for Samaras, the pro-bailout/austerity leader? It cannot be assumed that they, too, had buyer's remorse even as the additional cuts went into effect. Even if the electorate shifted in the direction of anti-austerity as the forced retirements and pension cuts occurred, the ingrediants of representative democracy includes terms of office to protect the elected officials by giving time for their policies to work. Representative democracy does not reduce to the momentary passion of the masses. According to Plato, mob rule is the bad form of democracy. 

The full essay is at "Terms of Office in Democracy."

1. Liz Alderman, “Greek Government and Public at Odds Over New Cuts,” The New York Times, September 6, 2012. 

A Teachable Moment for Americans: Solidarity as a Shared Value in European Identity

Speaking at the Schloss Bellevue palace in Berlin, President Joachim Gauck used a televised speech in February 2013 to make the case for more European integration. At the time, calling for “more Europe” in terms of shifting still more governmental sovereignty from the state governments to that of the Union was not a very popular task. Further limiting the power of his message is the fact that the German presidency is largely ceremonial , unlike the office of governor in an American state. Nevertheless, Gauck was determined to put the contemporary condition of the “European project” in favorable perspective. The most striking—and even effective—aspect of his speech is his repeated references to “European citizens.” Had he used “Germans” instead, he would have subtly undercut his own message. The prime minister of the E.U. state of Britain at the time would never have used the term, "European citizens." Nor would he have agreed with the E.U. value of solidarity and especially the ensuing social policy. The American media tended to follow suit, rather than covering the otherness of the other: the European Union as having a societal political value that has been very recessive in the United States. In this regard, I contend, the American media companies let down the American people, who would have stood to benefit from the wider perspective that would have enriched American political debates from the tyranny of the hegemonic value ensconced in American culture: that of the self-sustaining individual ideally in the state of nature, economically speaking. Reporting on the principle of solidarity would have given Americans the acccurate picture of the E.U. as being more than just a trading "bloc." This point in turn could have resulted in Americans coming to the realization that the E.U. is equivalent to the U.S.—both being empire-scale federal systems wherein governmental sovereignty is split.

The full essay is at "Solidarity as a European Value."

Italian Election Roils Markets: An Over-Reaction

With no party having gained sufficient seats in the upper house of the Italian legislature, analysts warned on February 25, 2013 of a “hung parliament,” which would make it even more difficult for structural and fiscal reforms to be passed. Even though the Democratic Party appeared to have gained a slim victory in the lower house, giving that party the majority of 340 seats out of 630, the upper and lower houses have equal law-making ability so even the possibility of a hung parliament roiled markets. I contend that this is yet another case of financial analysts over-reacting to political uncertainty. 

The full essay is at "Political Uncertainty Overstated." 

American Federalism: Christianity as the Official Religion in North Carolina

“Congress shall make no law respecting an establishment of religion, or preventing the free exercise thereof.” Congress. The writers of the First Amendment of the U.S. federal Constitution were obviously excluding the state governments. Even so, the U.S. Supreme Court has established that the amendment applies to the states as well as Congress. From Lemon v. Kurtzman (1971), the Court gave us what is known as the Lemon test. State funding for parochial schools (e.g., Catholic schools) must have a secular legislative purpose (e.g., education), neither advance nor inhibit religion in its consequences, and not foster “an excessive government entanglement with religion.” Yet the leap in claiming that the amendment bears on the states must deal with the explicit language that “Congress shall make no law.” Even so, it did not seem constitutional to many people in 1913 when the North Carolina legislature tried to make Christianity the republic's official religion. Even so, because the United States is essentially a federal empire of fifty republics, care ought to be taken when applying a one-size-fits-all approach as it does not take into account interstate political, religious, and cultural differences. Much is made of these in the European Union, but not in the United States. 

The full essay is at "Christianity as a State Religion in the U.S." 

The E.U. as Peace-Maker: Bringing in Serbia and Kosovo

Serbia and Kosovo reached an agreement on April 19, 2013 bearing on how much autonomy Kosovo would allow Serb cities in return Serbia’s recognition of Kosovo’s remaining authority in the cities.[1] Kosovo had seceded from Serbia in 2008, and the ensuing conflict kept both states from joining the European Union. As it turned out, the prospect of accession gave both Serbia and Kosovo enough incentive to reach an agreement. Indeed, only a few days after the agreement had been reached, the governments of Serbia and Kosovo approved it. Such swiftness indicates how strong of an incentive accession can be for belligerent republics in Europe. The E.U.’s deployment of this “carrot” is fully in line with the main objective of the European Union: to prevent war in Europe. According to the New York Times, the accord is thus “an important victory” for the E.U.[2] An even further victory in line with the E.U.'s most important purposes would be to internalize both Serbia and Kosovo so any future interstate conflicts could be peacibly resolved. 

The full essay is at "The E.U. as Peace-Maker."

1. Dan Bilefsky, “Serbia and Kosovo Reach Agreement on Power-Sharing,” The New York Times, April 20, 2013.
2. Ibid.

The British Pound Reacts to Secession

When the E.U. state of Britain held a vote in 2016 on whether to secede from the union, the British currency plummeted. On the day of the December 2019 statewide election in the U.K., that currency initially jumped and held on the day after as official results confirmed that the conservatives had won a majority and thus would be able to see the secession through. I submit that uncertainty itself was a major factor in both swings, and that the market put too much emphasis on the matter of uncertainty at the expense of the substantive economic effects of secession.

The full essay is at "The British Pound and Secession."