Draft Paul Krugman for Treasury Secretary

Now this is about the best idea I have heard of in a long while.  Imagine a Treasury Secretary who actually understand what’s going on and AND has actually been right about the economy!  Priceless.  (And he does NOT have an MBA…)

Sign the petition at: http://signon.org/sign/nominate-paul-krugman.fb23?source=s.fb&r_by=4571823

CoopBschool: A Business School for the 99%

Author’s note:  This was originally published on September 17th, but due to an active discussion and some edits is being re-posted today.

Happy birthday, Occupy Wall Street!  Exactly one year ago, you took to the streets and changed the conversation in America about economic justice.  Bless your little blue-tarp-covered heart.

But, a year on (what’s a mere year, anyway?), the business schools continue their wooden zombie-stagger onward, celebrating ancient corporate achievements and engorging the impressionable intellects and egos of smart men and women with enough false consciousness to screw the 99% for significant portions of their careers (until they burn out or are brought up short by the tawdry injustice of what they’re doing).

Here’s the kind of MBA school I’d like to see: coopBschool !

A business school for the 99%.

A business school aimed at meeting human needs in a just, sustainable manner, instead of meeting the needs of the few and the rich at the expense of everyone else (and, at best, greenwashing the mess).

A business school that’s about humanity, community, and quality of life, not about dehumanization, extraction, exploitation, and the commodification of life.

The medium is the message, my friends.  You can’t truly change the message without changing the medium.

Smash the B-school paradigm!

CoopBschool!

OccupyMBA!

The Hardest Hit Make the Best of It

Here’s something rich and rhythmic to feed your sense of début de siècle irony and dread:

Stopwatch Hearts” by Delerium on the Chimera album:

Lyrics:

Not that I’m that hard to Please
but lately when I hit the street
it’s hum-de-dum
(hum-de-dum-de dum)
When the hard times hit
they Hit the biz
The hardest hit make the best of it
Strong dollar stockbroker right to the bottom
Sink down with your boomtown
High water realtors arrive
With numbers over their eyes
Stopwatch hearts
Good God I love the party-starved
businessmen with stopwatch hearts
They don’t beat
(They tick)
They don’t beat
(they tick)
Good God I love the party-starved
businessmen with stopwatch hearts
They don’t beat
They don’t beat
‘Round that corner
Down the street
There’s a dive where working girls retreat
from their hum-de-dum
(hum-de-dum-de-dum)
So tilt that felt hat to the side
Thrift store 3 for .99
Gonna get me one
Gonna get me one
(and Get it every night)
Strong dollar stockbroker right to the bottom
Sink down with your boomtown
High water realtors arrive
With numbers over their eyes
Stopwatch hearts
Good God I love the party-starved
businessmen with stopwatch hearts
They don’t beat
(They tick)
They don’t beat
(they tick)
Good God I love the party-starved
businessmen with stopwatch hearts
They don’t beat
They don’t beat
Good God I love the party-starved
businessmen with stopwatch hearts
They don’t beat
(They tick)
They don’t beat
(they tick)
Good God I love the party-starved
businessmen with stopwatch hearts
They don’t beat
They don’t beat
(they tick)
So tilt that felt hat to the side
Thrift store 3 for .99
Gonna get me one
(and Get it every night)

Archipelago Man

Reading Rolling Stone writer Matt Taibbi’s latest political remonstration about Mitt Romney – “Greed and Debt: The True Story of Mitt Romney and Bain Capital” – I felt myself sinking deeper and deeper into that queasy, impotent apprehension we’ve all gotten to know so well since ‘W’ Bush ascended to the throne lo these dozen years ago.

The Dirty Dozen, you could call them.

There have certainly always been shitheads and tyrants and con-artists and despots around to make life uncertain and tawdry for the good folk, but by some odd juxtaposition of truth and cant (or perhaps it was growing up in an intensely hypocritical and/or naive household) I somehow made it well into adulthood believing that all senior leaders in positions of sweeping public responsibility (in America, at least) were committed to doing the right thing for democracy and the common good.

This sense that responsible adults were always there when you needed them pretty much died in my case when James Baker appeared on TV during those fateful days of uncertainty following the 2000 election.  With the question of Florida’s votes tied up in the Supreme Court, and the Gore team making noises that the best thing to do would be to carry out a full recount or even re-vote in FL, Baker stared down the journalists, TV cameras, American people, and world and basically told us to go fuck off and yield to the assertive power and naked ambition of the Bush crew – democratic legitimacy be damned.

We’ve been living with that ever since.

Call it a coup d’état, because that’s what it was.  I never understood why Gore didn’t  fight the worthiest battle ever put before him in his career, before or since.  Sure, off he went pleading for climate sanity, a good cause, right?  But he stepped out of the ring when America’s democracy was threatened, and never made the difference he could have made.  The Big Swinging Dicks (to use the term Michael Lewis immortalized) prevailed, in Washington as on Wall Street.

Taibbi didn’t convince me – I knew it already – but reading his latest article reminded me viscerally how so much of a BSD Mitt Romney is.  The pandering, the manipulation, the falseness, the scaremongering are all part of the communication strategy aimed at pulling off (with thanks to Taibbi for the analogy) the greatest political leveraged buyout in modern history.  He’d clean up, of course.  America would be left in much deeper debt, monetary or otherwise.

What’s this have to do with MBAs?

A lot, actually.  Leaving aside the fact that both ‘W’ and Mitt Romney are alumni of Harvard Business School, the strategies and tactics that both (and their machines) employ are right out of winner-take-all business strategy, and (their lying sanctimonious Christian-Right rhetoric notwithstanding) there’s not a shred of ethical integrity or public-mindedness to be found.  This is all about beating the other takeover team and walking off with the spoils.  The people who live here are just muppets, hobbits, the primordial ooze.  They’ll get over it.

Hm.  That reminds me of some other similar situation in America’s history, but I can’t quite place it…

I hope to dear God that Romney loses, as many polls currently indicate he might.  Not that Obama’s administration entirely lacks the amoral killer-culture we see in Romney’s (shout-out to Hillary!).  But, if Romney wins, I’ll be one of the first to argue that we’ve reached the point where America’s federal core needs to be disassembled so that the immense concentrated power that these sociopaths are drawn to is dissipated and a more direct, decentralized, accountable form of democracy begins to replace what we are presently confronted with.

Then the B-school boys can return to business and leave our critical, precious socio-political value chain alone.

A vain hope?  Entirely beyond the scope of The Curriculum of the West?

OccupyMBA!

PS – What does the title of this post mean?  Read this gripping excerpt from the final paragraphs of Matt Taibbi’s article (below). The bolding is mine.  Perhaps this the the real meaning of globalization.  The older notion of the absentee landlord or the absentee owner assumed that they lived at least somewhere.  A truly evil lord lives nowhere.

Excerpt:

Listen to Mitt Romney speak, and see if you can notice what’s missing. This is a man who grew up in Michigan, went to college in California, walked door to door through the streets of southern France as a missionary and was a governor of Massachusetts, the home of perhaps the most instantly recognizable, heavily accented English this side of Edinburgh. Yet not a trace of any of these places is detectable in Romney’s diction. None of the people in any of those places bled in and left a mark on the man.

Romney is a man from nowhere. …

Romney, … is a perfect representative of one side of the ominous cultural divide that will define the next generation, not just here in America but all over the world. Forget about the Southern strategy, blue versus red, swing states and swing voters – all of those political clichés are quaint relics of a less threatening era that is now part of our past, or soon will be. The next conflict defining us all is much more unnerving.

That conflict will be between people who live somewhere, and people who live nowhere. It will be between people who consider themselves citizens of actual countries, to which they have patriotic allegiance, and people to whom nations are meaningless, who live in a stateless global archipelago of privilege – a collection of private schools, tax havens and gated residential communities with little or no connection to the outside world.

Mitt Romney isn’t blue or red. He’s an archipelago man. That’s a big reason that voters have been slow to warm up to him. From LBJ to Bill Clinton to George W. Bush to Sarah Palin, Americans like their politicians to sound like they’re from somewhere, to be human symbols of our love affair with small towns, the girl next door, the little pink houses of Mellencamp myth. Most of those mythical American towns grew up around factories – think chocolate bars from Hershey, baseball bats from Louisville, cereals from Battle Creek. Deep down, what scares voters in both parties the most is the thought that these unique and vital places are vanishing or eroding – overrun by immigrants or the forces of globalism or both, with giant Walmarts descending like spaceships to replace the corner grocer, the family barber and the local hardware store, and 1,000 cable channels replacing the school dance and the gossip at the local diner.

Obama ran on “change” in 2008, but Mitt Romney represents a far more real and seismic shift in the American landscape. Romney is the frontman and apostle of an economic revolution, in which transactions are manufactured instead of products, wealth is generated without accompanying prosperity, and Cayman Islands partnerships are lovingly erected and nurtured while American communities fall apart. The entire purpose of the business model that Romney helped pioneer is to move money into the archipelago from the places outside it, using massive amounts of taxpayer-subsidized debt to enrich a handful of billionaires. It’s a vision of society that’s crazy, vicious and almost unbelievably selfish, yet it’s running for president, and it has a chance of winning. Perhaps that change is coming whether we like it or not. Perhaps Mitt Romney is the best man to manage the transition. But it seems a little early to vote for that kind of wholesale surrender.

 

Entrepreneurs are not a large part of the 1%

I just heard Nobel economics laureate Joseph Stiglitz interviewed on NPR, and noted a fascinating fact: in his estimation, only a tiny share of the so-called “1%” are entrepreneurs.  He said that the large majority of 1-percenters are people who have inherited wealth, investors, and other sorts of finance jocks (i-bankers, hedge fund managers, traders, venture capitalists, etc.).

What does that say about where America’s incentives lie, in this land where 400 people own more than the poorest 150 million?

Do the the rewards accrue to the inventors, the innovators, the skunk-workers?  To the people who have truly improved our lives?  Or does money simply make money?

When the revolutionaries raise capital gains taxes and carried interest taxes to the earned income tax rate, perhaps they can also figure out a way to eliminate taxation completely from truly value-creating entrepreneurship in technology and other vital areas…

Why MBA students should study Political Economy

Green Mountain Socialist senator Bernie Sanders puts it very plainly in a recent CNN interview with Wolf Blitzer: any talk of “free enterprise” or “the market economy” when it comes to the largest Wall Street banks and many other large corporations/industries is empty rhetoric.  In this realm of political-commercial oligarchy, decisions about leadership, investment, products and services, organizational development, etc. are not made under the logic of market competition but instead through complex relational jockeying among top executives and investors aimed at expanding and perpetuating their oligarchy, especially via their influence over politicians, regulatory agencies, and the courts.

They have captured their regulators (in institutional economic terms) and, in the interests of both American democracy and our long-term economic prosperity as a people, need to be busted up and re-regulated.

Thank you, Bernie, for your clear articulation of this.  (Goes to show what remaining independent does for one’s ability to speak honestly and frankly about the affairs of the nation.)

There’s nothing especially noteworthy about this situation – China runs this way, Russia runs this way, the Vatican runs this way, Machiavelli lived and breathed this logic, and so did the senate and consuls in ancient Rome – but America remains committed (last time I checked) to popular, representative democracy as the way to secure the general Welfare and the Blessings of Liberty (preamble to the US Constitution).  As long as this commitment stands, circumstances such as those of the present simply cannot be allowed.  Look at what happens.

Next week, Sanders will be introducing legislation to force a breakup of the six largest banks in the US.

By the way, if the concentration of influence, capture of government, and failure of both markets and democracy is a problem in the financial sector, what about other industries?  On Tuesday, in his coolly received lunchtime keynote at the VBSR conference in Burlington, Vermont, Seventh Generation CEO John Replogle marveled at the fact that Wal-Mart’s economy was now as large as the GDPs of the poorest 161 nations combined.  Um, concentrated much?  Where is that going to lead…?

MBA students of the world, ask yourselves: is it your lot to do the bidding of the few, the influential, and the democratically unaccountable – and hope a few crumbs fall from their table that put you slightly ahead of every other laboring schmuck in the disintegrating middle class – or should you be able to freely take risks and throw your energy, creativity, and skills into the ring with others like you and create the good society and the sustainable prosperity that you and your community deserve?  Think about that question.  Get involved.  Study political economy.  Because Sanders is quite accurate in both his diagnosis and his proposed treatment, and whether he succeeds or not, you need to understand why, for the sake of your own humanity.

Read Rifkin’s Third Industrial Revolution

I’m sitting in Boston right now at the CERES conference listening to Jeremy Rifkin speak about his new book, The Third Industrial Revolution.  Extremely compelling.  Read it.

The 2nd Industrial Paradigm: top-down, centralized, proprietary, closed, private, elite.  Fueled by hazardous, large-scale energy technologies (oil, coal, gas, uranium).  A very short and dangerous civilization!

The 3rd Industrial Paradigm: lateral, distributed, open, collaborative, shared, accessible.  Energy+Communication+Economy.  Post-carbon.  Unstoppable.

You know the difference when you see it, don’t you?

This applies to MBA education as much as anything else.

OccupyMBA!