Tag: #davidbrooks

  • Morality in Economics

    I read David Brooks today, and call me crazy, I think that this conservative guy is slowly becoming liberal. I will thank Trump for that, but more importantly, I welcome David to the party.

    I took the point of his piece, which was that America business needs to get its morality back in check. Think about employees, customers, and the communities they exist in, and not just the bottom line, shareholders, and stock value.

    Is this the first crack in the Conservative love of all things that came out of Milton Friedman’s mouth?

    I have held, and said many times, that Friedman’s approach and the way he viewed capitalism was destructive to all of us. I always felt that Friedman’s failure was rooted in the idea that an individual or corporation would “pay by the rules” in their quest for capital, and no one would cheat. The truth of the matter is that if there is money to be made, someone, inevitably will cheat, and someone gets hurt.

    Also, Friedman thought that governments should get out of the way and let companies do what they do. He thought all companies would want deregulation, but what he missed was that companies want regulation on everyone else, just not them. That’s why there is a weird revolving door with CEOs and executives getting named as heads of regulation organizations. (FCC, FDA, ect…)

    In a philosophical sense, I believe that all economics are based in emotions and not in logic. Economies are not math, it is not a science; it is completely man made, and as such, will behave illogically often to meet its desired ends. To put a morality on top of capitalism is a neat idea, and to do that, you need some agreed upon regulations.

    Welcome to the party, David.

  • It’s the Debt, Stupid

    I like reading David Brooks. Today, I read his opinion piece about how it’s not about the economy anymore. That things seems to be going well with the economy; stock market is up, GDP is up, growth is booming… but somehow no one is happy. He points out the many ills in society right now, especially the report that showed that American life expectancy has decreased due to suicide and drug overdose. He draws his own conclusion on what we should do, but my gut tells me that what he prescribes is just old thinking for new problems; as he put it, policy makers will need to “…figure out how economic levers can have moral, communal and sociological effect.”

    So… Jobs won’t solve these problems, but jobs will solve the problem?

    I have heard that before. Polices have been made around that idea, and yet here we are. A job without dignity, both moral and economic, creates more problems than it solves.

    The thing is that if you don’t earn much money and if you get a minuscule raise, though statistically a significant increase, you still don’t have shit. And if shit keeps increasing in price, you never get ahead.

    Why do people under forty spend more money on “experiences” rather than homes, retirement, or even a savings account? Because that’s all they can afford.

    A dollar value-based society, whose capital is not easily accessed by any economic levels except the top, creates a debt culture, and in the end, will start to eat its tail to survive.