Yes!!! Protect infant industries, not legacy industries. Exactly!

E

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> On May 6, 2017, at 19:16, BILROJ via Centroids: The Center of the Radical 
> Centrist Community <[email protected]> wrote:
> 
>  
> A vision for the future of American Capitalism
> Moral Economics
>  
> Alexander Hamilton's view was that we should protect infant industries
> because of the potential benefits of various businesses if they are able
> to take root and become part of the national economy. You can't ask
> a toddler to compete with athletes or professional engineers or surgeons
> at adult tasks; but with the right nurture and education, the infant grows
> to maturity and then can become competitive.
>  
> Moreover, we should protect other businesses for the sake of national
> security, something overlooked in "bottom line" economics. What possible
> justification is there for not manufacturing electrical transformers in 
> America,
> for instance?  If there ever is a disaster that damages the power grid
> we would need to import transformers from China and in a major emergency
> the Chinese might not want to sell them to us, or might decide to charge
> us so much money that various businesses might become bankrupt. We almost
> lost Boeing's capability to manufacture air refueling  takers because
> the EU offered a better price for such aircraft. That might have saved us
> a few billion dollars in the short run but in event of war, especially
> if  Europe was hard hit, all savings would be meaningless because
> we might be defeated in battle.
>  
> In such cases strict economic efficiency is less important than some other
> value. When you think about any kind of "big picture" it is no problem
> to conceive of still other values that are superior to economics.
>  
>  
> The environment also needs protection because, if the natural world is
> exploited it not only demoralizes people it imposes economic costs
> in the form of effects of pollution and destruction of secondary values;
> that is, the cheapest way to extract coal is through strip mining practices
> that, however, destroy the tourist potential of a region and cause medical
> harm to people in an area effected by chemical runoff  due to a
> form of mining that exposes poisonous subsoil to the elements. There may
> be other kinds of costs for other industries if, for example, a  port is 
> silted up
> or sinkholes swallow houses.
>  
> There is also a cultural imperative. The wrong kind of culture within a 
> company
> and the business falls apart or, at best, "underperforms."  However, the wrong
> kind of culture and a nation falls apart or becomes economically inefficient.
>  
> Certain social values are necessary for a smoothly functioning society.
> Other values can undermine or damage or ruin a society. At the head
> of this list is greed, closely followed by excessive status seeking,
> rapaciousness, and lack of community consciousness. Another way
> of saying the same thing is that libertarianism or its cousin, laissez faire
> Capitalism, have no solutions at all for these kinds of problems.
> Indeed, by valorizing avarice and materialism, libertarianism
> and laissez faire make matters worse.
>  
> This is masked by the fact that greed can generate wealth. A monopoly
> business can be very profitable. Price gouging or excessive profits
> can mean that a class of people do very well for themselves and,
> in the process, some economic advantages accrue to others via
> "trickle down" effects.
>  
> The question is how do we change the system so that necessary and "good"
> social values become widely popular and are regarded as necessary
> for any respectable business, and all "anti-values" become anathema
> to just about everyone and simply are never indulged in.
>  
> This said, we cannot eliminate economic self interest, nor should we
> want to do any such thing. People are not angels, they may well have
> '"better natures" but they are also creatures of passion and of an
> assortment of passions, and seeking advantage, including economic
> advantage, is part of human nature.
>  
> What is the solution?
>  
> Part #1 is identifying the problem for what it is. This means an imperative
> to discredit libertarian political philosophy and also laissez faire economic
> thinking.
>  
> Part # 2 is just as necessary, or even more important. It is vital to show
> that an alternative to the existing Capitalist model is feasible and can 
> produce
> impressive results for large numbers of people. This obviously means
> that we must abandon failed models like that in effect in various Communist
> regimes in the past  -as well as more recent failed systems like those
> in Venezuela, Haiti, Burma, Afghanistan, Libya, Yemen, or various
> kleptocracies in Sub-Saharan Africa
>  
> The power of non-economic motivation should never be underestimated.
> As Francis Fukuyama has pointed out, there is no such thing as pure
> economic motivation in politics and, indeed, economics may not rise
> to the level of anything more than a secondary factor.  After all, was
> the American revolution motivated primarily by a desire for better prices
> for imports or an increased standard of living?  You don't need democracy
> to reach those objectives yet our forefathers chose democracy and freedom
> of the press and free speech, etc., as rallying points and the multitudes
> responded. Was the Civil War fought primarily for economic reasons?
> Certainly economics played a part but a set of values that permitted
> slavery was the main cause  -along with sectional pride and the
> perceived need to safeguard one's culture.
>  
> Did the youth revolt of the 1960s revolve around a desire for money
> or a desire to create a new kind of culture with new social values? 
> We can justifiably argue that some of the sought-for values were
> not good ideas but the point is that the young rebels of that era were
> willing to accept a much lower standard of living for the sake of the
> values they believed in.
>  
> So it goes through a long list of social movements, revolutions, and
> mass protests. If you leave out the economic factor you would
> be foolish, it is always there in some form, but if you insist that
> economics necessarily is primary you could not be more wrong.
>  
> But how do we demonstrate that there is a better alternative to the
> existing economic regime? The reason this is essential is that otherwise
> any claims to an economically superior system could be perceived as
> will-o-the-whisps, so much wishful thinking with no basis in reality.
>  
> Therefore we need to use examples from the actual economy that are
> far less than what is being proposed here yet similar enough that people can
> understand the logic and ideas involved, sufficient that no great stretch
> of the imagination is required to conceive a working system. The proposal
> is to build upon parts of some currently existing system.
>  
> There are several models for what this might be but Fox News TV
> provides a very useful example. This is not an endorsement of
> everything that Fox does, most of what it broadcasts is news-tainment
> and is basically not worth much at all. However, Fox discovered that
> there was a huge untapped market for conservative (conservative-lite)
> news coverage and opinion. You might say that MSNBC made use
> of the same format for Left-wing news except that it has such low standards
> of journalism that it has almost no value for our purposes here and would
> simply muddy the waters.
>  
> The point about Fox is simply that it operates on the basis of a 
> point-of-view,
> in this case more-or-less conservative in character. Fox management and
> ownership take the view that some values that are under-reported by the
> mainstream media are worth putting time and effort into, seeking to change
> public opinion rather than simply trying to be neutral in reporting news.
>  
> This is manifestly not a screed in opposition to objective news coverage.
> Quite the opposite, objectivity should be the primary goal, but to state
> an obvious fact of media life.
>  
> The libertarian / laissez faire position, while it is not honored in reality,
> is that any and all values are equal in merit. Whichever values win
> the national popularity contest are the best because they have the
> largest market share. Actually, what this is, is promotion of nihilism,
> amorality, or even criminality, but to speak of the public image
> the media seeks to convey.
>  
>  
> Another example of an institution that seeks to change public opinion
> is Liberty University, which was founded in an attempt to create a
> counterweight to Left-dominated higher education in America.
> In effect, Liberty U. was created by a large Baptist church and
> its political allies.
>  
> There are also foundation supported institutions that would like to change
> social values, these organizations funded by consortia of like-minded 
> individuals
> or businesses that share common interests. Hence American Enterprise
> Institute and the Brookings Institution.
>  
> Fox, however, is not the object of philanthropic concern. It is a profitable
> business that needs no outside help to survive and thrive. But it could not
> have begun unless its potential was recognized by investors and a man
> with far sighted vision, Rupert Murdoch.  Again, not to overstate the case.
> Murdoch also was responsible for the wreckage of  News of the World,
> a newspaper that indulged in shady practices and was not above violating the 
> law. 
>  
> The point of everything is that corporations do not need to be obsessed
> with the bottom line nor with maximizing shareholder profitability.
> Yet public service enterprises can be profitable if they are based upon
> well conceived business models that, in turn, are built up a sense
> of values that are treasured by millions of  people.
>  
> That is, there is such a thing as citizen good will  -with customers happy
> to make purchases or otherwise contribute to the success of a business
> they feel represents the social values they hold dear.
>  
> Do institutions such as AEI and Brookings change public opinion?
> It is difficult to say "no" when considering the fact that they allow
> opinion leaders to flourish and produce some of their best work
> -that is then "consumed" by TV viewers or people who read books
> or attend lectures and seminars.
>  
> ----------------
>  
>  
> The objective is to work with a new kind of business model that borrows
> from these examples as a starting point  -but with a new set of social values
> that the model seeks to promote. This is to discuss the kinds of values
> which are associated with Radical Centrist philosophy. However, this concept
> could be adopted by people with different outlooks, actual conservatives,
> actual liberals rather than today's Leftists, and so forth, including Greens
> and Constitution Party people and still others.
>  
> This is not about  philanthropy. However, it also is not about bottom line
> profitability.  There may well be profits but, if so, they would be secondary
> to the purpose of promotion of values that, by reasonable standards,
> are in the best interests of American citizens seeking to maintain
> a "melting pot" society based on modern democratic principles.
>  
> That is, Radical Centrism is opposed to libertarian emphasis on
> "freedom" as a universal solvent for all that ails us. We certainly need
> as many freedoms as feasible but the objective is identifying what is
> in our actual best interests, not free-for-all ethics that have
> no moral grounding.
>  
> Think of it as a secular version of Christianity if you will, but it could
> also be conceived as secular Judaism or secular Buddhism, et. al.
> This is anti-nihilist, and takes the view that some behaviors are
> objectively good and some that are evil, and likewise for the realm
> of ideas and social values. It is time to abandon the view that
> "anything goes" values are something other than a form of insanity.
>  
> What is possible? What is thinkable?
>  
> The idea is promotion of corporations based on the premise that profitable
> businesses need to cultivate the best in people, which primarily means
> US citizens even if, with luck, other societies might adapt the ideas
> in question for themselves.
>  
> Set aside the ways that "public service" is ordinarily conceived by American
> business firms at this time in history. By that standard public service means
> a form of charity primarily intended to burnish a company's image. Instead,
> this is all about a company's mission statement and the deepest social values
> of its leadership. The concept is not only to make money but to make better
> people generally. Hence the bottom line is not gross profit but literally
> making the world a better place. It is assumed that no-one in a firm
> will stop making useful products or providing valued services
> that can be appreciated prima facie for what they are. However,
> the model assumes that business reputations matter greatly and that
> with even a few significant examples most businesses would feel
> compelled to do likewise.
>  
> In other words,  a business has two responsibilities, not just one, to the
> shareholders. A business also has a responsibility to the community,
> including those members of the community who are its employees.
>  
> This would not apply to the smallest businesses except to minimum extent.
> A business with 10 employees is in no position to invest much of anything
> in the wider community. But at some point, we can use 100 employees
> as a benchmark,  responsibility to the community should become a factor
> of consequence, perhaps calling for a 1% investment. At 1000 employees
> this might become 5%, and so forth up to 10% or so for the very largest
> and most profitable corporations.
>  
> This does not mean government regulation, it means transparency by law,
> so that a company's expenditures for genuine public service can be known
> to anyone with an interest, including elected officials, journalists,
> and educators.
>  
> Where the government would play a role would be in expediting the process
> by passage of laws that would make things easier for businesses to live up to
> these standards. Where there would be regulations would be in passage
> of laws that requite foreign businesses to adopt systems for their US 
> operations
> that are consistent with those enacted by American business companies.
> Exactly what might be involved would be left for future determination;
> there are many kinds of businesses, including those with few employees
> in America but that feature large sums of money. Under no circumstances
> should American companies be disadvantaged with respect to non-American
> firms doing business in the United States.
>  
>  
> This is not a "tax."  Monies spent for public service as outlined here would 
> be
> disbursed at the discretion of each business. Moreover, simply because a
> business provides a public service does not need to mean that it operates
> in the red. Like Fox TV it might even earn a good deal of capital
> and be positive financially for a business sponsor. Still, by their nature
> some public services might not be able to do more than break even.
> But any such venture that loses money could be terminated with short
> notice so that a new and better service can be launched that
> can be self-sustaining.
>  
> The objective is to create a new kind of competition: Who can do the
> most good for the community?  This means every type of business
> from  bakeries to mega-banks will billions in assets.
>  
> The objective is not simple charity, to repeat this point. What is intended
> is that a business would invest in a public service venture that has some
> direct relationship to its core enterprises. A publishing giant might want to
> set up a new kind of university, a software business might want to establish
> an online college that offers training in computer skills to people who
> are seeking employment after an industrial company ceased operations.
> A medical supplier or pharmaceutical firm might want to create a program
> that offers low cost dental services based on low incomes. Or, for example,
> a consortium of companies might want to take part in a joint venture
> for a massive project such as cleaning up Salton Sea in southern
> California and turning it into a middle class community with a world
> class school system. There are numerous possibilities.
>  
> Any business should benefit directly from whatever public service project
> in takes part in. This is not meant to feature false modesty whereby
> a company is recognized by a plaque in a park or a credit on a TV show,
> but full recognition for services rendered. Something that can realize
> maximum good publicity and due recognition by political and
> other leaders.
>  
> Some projects, if not all, might well be innovative and create new products
> as part of the public service, or test existing products for reliability or
> new uses. Any project should be directly associated with its business sponsor.
> 
> "We are Random House, we publish quality books and we created
> Writers University, in a league of its own, rated as highly in its subject
> areas as any  Ivy League school  -and we did it with a performance based
> system that has no faculty tenure, which integrates written text with
> innovations in computer software, and which is so good that our
> graduates are in demand all over the world."
>  
> Think of your own examples of what can be done.
>  
> The objective is to mobilize American business in a national competition
> not to make America great in ways that we can scarcely imagine today.
>  
> The objective, and this is only a first sketch for this idea,
> is to create an economic system that re-creates Capitalism such that
> doing entirely good things for American communities throughout
> the country and, just maybe, sets an example for other nations
> to emulate. Capitalism should not only be synonymous with making
> money, it should do good things for American citizens   -structurally,
> as part of the process of being profitable.
>  
>  
> Billy Rojas
>  
>  
> -- 
> -- 
> Centroids: The Center of the Radical Centrist Community 
> <[email protected]>
> Google Group: http://groups.google.com/group/RadicalCentrism
> Radical Centrism website and blog: http://RadicalCentrism.org
> 
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