Presidential Authority and Bureaucracy: Regulatory Agencies

Circulating in Congress in the fall of 2012 was a bill that would have allowed "the White House to second-guess major rules and mandate that agencies carefully study the economic effects of new regulation. The change could, in effect, delay a number of rules for the financial industry. Those who support preserving the status quo where Wall Street regulates itself will find much to like in this legislation," said Amit Narang, a regulatory policy advocate at Public Citizen, a nonprofit government watchdog group.[1] President Obama had received $1 million from Goldman Sachs as a campaign contribution in 2008. Yet of how much value to Wall Street is a mere delay in regulation? Some, surely, but not enough to make this the decisive issue here. Rather, I submit that the president's control as chief executive of the regulatory agencies and the added bureaucracy are more salient in this case study. 

The full essay is at "Presidential Authority and Bureaucracy." 

1. Ben Protess, “Lawmakers Push to Increase WhiteHouse Oversight of Financial Regulators,” The New York Times, September 10, 2012. 

President Obama's Justification for Limited Military Intervention in Libya: Driving a Wedge between the Bushes

In the early evening of March 28, 2011, President Obama addressed the American people and the world to explain his administration’s involvement in the international coalition that had been implementing a no fly zone over Libya while protecting Libyan civilians from their own ruler. He sounded much more like the first President Bush than the second in terms of foreign policy.  Similar to how the elder Bush had restrained himself from going all the way to Baghdad after he had joined an international coalition in removing the Iraqis from Kuwait, Obama said that directing American troops to forcibly remove Colonel Qaddafi from power would be a step too far, and would “splinter” the international coalition that had imposed the no fly zone and protected civilians in rebel areas of Libya. Interestingly, in taking the elder Bush’s route, Obama came out strongly against that of Bush II. Referring to the alternative of extending the U.S. mission to include regime change, Obama stated, “To be blunt, we went down that road in Iraq . . . regime change there took eight years, thousands of American and Iraqi lives, and nearly a trillion dollars. That is not something we can afford to repeat in Libya.”[1] In effect, Obama was exposing a fundamental difference between George H.W. Bush and his son by saying essentially the same thing as the elder Bush had done while excoriating the foreign invasion of his son. Yet Obama did not stop there. He added a theoretical framework that the elder Bush could well have used.

The full essay is at "U.S. Justification for Limited Military Intervention."

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[1] Helene Cooper, “Obama Cites Limits of U.S. Role in Libya,” The New York Times, March 28, 2011.

Speculators and Price Volatility: The Case of Gasoline

According to The Huffington Post, “Oil prices took a nosedive [on May 5, 2011] in a historic selloff, erasing weeks of gains and indicating that the months-long climb in energy prices may have hit a ceiling. Crude oil plunged 10 percent as startled investors unloaded their positions and a weeklong decline accelerated into an outright freefall. The price of U.S. crude went from triple digits to double digits, falling below $100 after opening at close to $110. Brent crude, a European benchmark, lost $12 at one point in a sell-off that exceeded the one following Lehman Brothers' collapse.”[1]  The question, for course, is why, the answer of which can lead us to consider some public policy recommendations. Understanding the previous price rise is a first step both to answering this question and for evaluating public policy solutions.

The full essay is at "Speculators and Price Volatility."

1. William Alden, “Oil Prices Plunge in Record Sell-Off,” The Huffington Post, May 5, 2011.

Sexual Harassment at Yale: A Wider Picture of Intolerance in Political Correctness

In his commentary on “Sex and the College Dean” in The Wall Street Journal, William McGurn bemoans what he calls the “surrender [of] what little moral authority [deans and college presidents] have left to their in-house counsel and off-campus government authorities.”[1] McGurn points in particular to the rising influence of lawyers in college administrations. “Today deans have given way to lawyers. The consequence has been endless gestures to raise ‘awareness,’ constant upgrading of procedures and the proliferation of committees—all designed primarily to limit the institution's civil liability. Thus Rutgers says it is working on making the school ‘more inclusive’” after a gay student killed himself after his roommate had posted video secretly shot of the gay student having sex in the dorm room. Not to completely dispute McGurn’s “lawyer thesis,” I do, however, want to broaden the explanation based on material provided by McGurn himself. Specifically, the “more inclusive” language McGurn cites is the signature of the political-correctness movement that had swept college campuses in the United States since the late 1980's. McGurn claims that deans of students have gone from being adults to legalists in seeking to minimize their school’s liability; I want to add that those deans went from being adults to ideologues as well.

The full essay is at "Sexual Harassment at Yale."  

1. William McGurn, “Sex and the College Dean,” The Wall Street Journal, April 26, 2011, p. A15.

Ownership and Compensation Conflated: The Case of Bill Gates and Paul Allen at Microsoft

Paul Allen claims in his memoir that Bill Gates tried on more than one occasion to reduce Allen’s relative ownership interest in Microsoft. Of course, the veracity of Allen’s explanation can be questioned even if the ownership changes in percentage terms are a matter of public record. Whereas The Wall Street Journal focused on Allen's credibility in making his claim, I see a case study on the difference between ownership and compensation for labor.

The full essay is at "Ownership and Compensation."

Anna Hazare: A Modern Incarnation of Gandhi?

On August 21, 2011 in New Delhi, India, tens of thousands marched in support of Anna Hazare, then in the sixth day of his hunger strike in support of the Jan Lokpal anti-corruption bill. He told the crowd, “Even if the prime minister comes, I will not withdraw my hunger strike until the [bill] is passed in the Parliament. I can die but I will not bend.”[1] What a unique and intriguing statement! To be sure, the man's “professed unwillingness to compromise,” as well as his “occasionally belligerent tone, . . . attracted criticism.”[2] Even so, he inspired mainly hope, particularly from the young. His main constituency, however, was the middle class, who felt alienated and unfairly treated. Hazare self-consciously embraced the model of Gandhi. That model, including the principled unbending, is no stranger in India, yet I am surprised that it took until 2011 for a societal figure so Gandhi-like to emerge and galvanize a mass protest using Gandhi’s methods. Of course, the likeness between the two men could be overstated. How much like Gandhi was Hazare and his political action? For example, would Gandhi have stopped eating simply out of preference for one of two bills before the Parliament? Putting a stop to widespread violence is arguably much more significant than reducing corruption. Also, the demand that conduct be changed is more direct than that a law be enacted unless to abolish an unjust one. 

 

                              Associated Press

The full essay is at "Hazare and Gandhi."

1. Jim Yardley, “Thousands Back Antigraft Hunger Strike in New Delhi,” New York Times (August 22, 2011). 
2. Ibid.

On the United Technologies-Raytheon Merger: The Macro Level of Analysis

In analyzing a merger, incorporating the macro context is vital. For very large mergers, for instance, public policy concerns inevitably surface even if they are typically ignored not only in merger analyses, but also by in societal and even governmental public discourse. Analysis at this level takes a societal standpoint, including on the relationship of business and government. This does not diminish the salience of firm-level analysis, for even how the respective organizational cultures would mesh is very important to a functional merged company. This is even true regarding the respective business-ethics climates, for it is not a given that a healthy organizational culture dominates an unethical one.

The full essay is at "On the United Technologies-Raytheon Merger."

So You Want to Become an Excellent Writer?

A good writer writes well. This truism maintains that a good writer is has mastered the craft of writing. Unfortunately, this feat does not come without considerable effort, for takes some good old-fashioned study in grammar and spelling. Unfortunately, the linguistic mechanics furnish only the means of entry, though this point seems to be lost on the American English teachers who slighted grammar pedagogically in the opening decades of the twenty-first century. Perhaps the novelists who have felt immune from being grammatical for the sake of style have been the interlarded culprits behind the trend of grammar be viewed as relative or an elective. To be sure, style has right of exception, but the problem is when the exceptions become the norm and even an excuse for bad grammar. This is all just foundational stuff; the quality distinguishing the excellent writer from even a good one is passion-fueled insight. The writer who writes out of a strong urge, or instinct, to express an insight publicly naturally finds his or her own voice, and thus identity, as a writer.  In this sense, a writer is like an entrepreneur whose passion breaks through the confines of an organizational structure like lava pushes through the tough shell of a lava dome.

The full essay is at "Excellent Writing Is More than Grammar."

Is Blogging a Marxist Activity?

In writing posts on a blog, is a blogger alienated, or estranged, from his or her own labor and the product (i.e., the posts)? If not, would Karl Marx say that both the blogging activity and any resulting content exemplify his ideal? In short, are bloggers de facto Marxists? Or are we entrepreneurs better suited to Capitalism? In this respect, we can distinguish the free-standing blogger from the blogger who works on a blog owned by a company (i.e., others). In answering these questions, I look first at Marx’s criticism of labor that is alienated from the worker. Marx argues that a worker laboring on another’s product is estranged from both the worker’s own labor and the product. In both respects, clues of the sort of labor that Marx advocates can be found. From these inferences, I turn to Marx’s positive characterization of labor that is natural for the sapiens species, drawing also on Maslow, Locke, and the erasable Nietzsche for additional support.

The full essay is at "Blogging from a Marxist Perspective."

Ethics in Blogging: A Normative Constraint on Excessive Economizing and Power-Aggrandizement

Blogs are interesting creatures. Like humans, they seek not merely self-preservation, but also the expansion of their domain on the internet. The empire-building does not have power-aggrandizement as its goal; rather, bloggers use what power they have to maximize the reach of their words. To be heard by as many people as possible—as if quantity were more important than quality—is a still more intermediate means, with the end being to bring one's words to the world-at-large. At the extreme, a blogger wants to see a world that has become a projection of his or her own words. Less extreme, a blogger wants to be a significant player in societal discussions even beyond the internet. Toward such ends, bloggers economize in the sense of seeking to minimize what they incorporate of other blogs beyond what they view as being useful to themselves, while attempting to maximize that of themselves that is incorporated on other blogs by power or moral suasion. For example, a blogger might say to another blogger, “I’ll blogroll you if you blogroll me.” This is a variant of “I’ll follow you if you follow me” on Twitter. As Susan Gunelius, an expert on blog marketing, observes in Blogging for Dummies, such reciprocity is no longer a normative practice in blogging. Indeed, the “I’ll follow you if you follow me” mentality is questionable at best. It implies that one person follows another not because of any value perceived on the followed’s account, but, rather, solely so he or she can be followed by yet another person. In other words, the apparent reciprocity is actually egoist. 

The full essay is at "Ethics in Blogging."

Hong Kong’s Chief Executive Caves in on a Proposed Extradition Law: Yielded to the Street, Business, or Beijing?

Facing huge violent protests, Carrie Lam, the chief executive of Hong Kong, a semi-autonomous region of China, decided on June 15, to indefinitely suspend her proposal to open extradition to mainland China and Taiwan. As the Chinese government demonstrated during the protests at Tiananmen Square decades earlier, holding a mass protest in China was not among the ways to impeded proposed legislation. Why, then, did Lam seem to cave into the popular protests in Hong Kong?

The full essay is at "Hong Kong's Chief Executive."

The Impact of Federalism on Corporate Power in American Legislatures: The Case of Health-Insurance Reform

Florida, like about a dozen other states, debated in 2009 a proposed amendment to its state constitution that would have blocked, at least symbolically, much of the federal health-care insurance overhaul on the grounds that it tramples individual liberty. Behind the amendments was an industry with a vested interest—an industry that made substantial campaign contributions to the supporters of the amendment. An ethical conflict of interest lurks here, even if it is constitutional (assuming that wealth constitutes free speech, which itself is a problematic assumption), but the main issue here is how the blockage of federal law applying in Florida (and other states) would have affected federalism. What would have been better for the American federal system: federal or state legislation, or perhaps a combination? 

The full essay is at "Federalism, Corporate Power, and Legislation."

Encroaching Political Consolidation: The Weakening of the U.S. Federal System

It is much easier to point out the sliver in the other person's eye than the plank in one’s own. Regarding the gradual political consolidation of power at the federal level in the U.S. at the expense of not only the member-state governments, but also the federal system itself, it is easier for a political party to dismiss its own contribution than to take a wider stance including the continued viability of the federal system, or federalism, itself. As a result, both of the major parties has contributed to the increasing political consolidation at the expense of the check-and-balance feature that a balanced federal system has.

The full essay is at "Encroaching Political Consolidation in the U.S."

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.

President Obama Took Care of Wall Street below a Public Persona of Reform

In April, 2010, President Obama gave a speech in New York City to counter what he called “the furious efforts of industry lobbyists” geared to weakening or stopping the new financial regulations that Obama claimed would be needed to stave off a second Great Depression.[1]  It is telling that the banks that had contributed to the financial crisis of 2008 were trying to diminish or block any new regulation. The very legitimacy of industry calls for deregulation in the wake of a market failure caused in part by the industry flies in the face of the rationale for regulation. In short, the rationale for government regulation has to do with market failures, which includes fraud and over-zealous profit-taking at the expense of the public good. The root of the rationale is the difference between the interests of an organization and society (i.e., the public good). 

The full essay is at "Obama Took Care of Wall Street."

1. Peter Baker, "Obama Issues Sharp Call for Reforms on Wall Street," The New York Times, April 22, 2010.