Monthly Archives: June 2010

Not Either/Or, But Both

If you spend any time reading about current affairs, whether you read newspapers, magazines or blogs, you tend to see that issues are discussed in dualistic terms. Most authors say the matter at hand is the result of either X or Y: two oppositional explanations.

For example, in this Atlantic article about obesity in America, the discussion tends to fall in one of two camps: either X) the obese are weak-willed, or Y) the obese are victims of the US system of cheap corn subsidies and for-profit food companies with their manipulative marketing and clever chemists.

Or in this NY Times article about why the military is awarding fewer Medals of Honor, the reasons given are: either X) the nature of current war doesn’t create as much of the close-in combat that tends to lead to Medals of Honor, or Y) the military system that awards medals has become so risk averse and bureaucratic that someone in the chain rejects even worthy Medal of Honor recommendations.

I understand why authors do this; it’s easier to bundle complex systems into single narratives, and creating oppositional tension makes an article more interesting. But rarely in real life are there two mutually exclusive and oppositional reasons for something. It’s not either/or; it’s both.

Life is complicated, and in virtually all situations there are multitudinous reasons for any phenomenon. Take obesity: of course some people simply won’t restrain their appetites. But it’s equally obvious that the nexus of policies and food companies greatly increases the likelihood of people eating fattening food. X and Y. And there are plenty of other likely causes too.

This shouldn’t be a great revelation to anyone – “oh, you mean there usually isn’t one simple cause for everything?” – yet journalists and pundits continue to employ the binary analysis. Does this matter? I think it does, because popular dialogue ends up framing the debate. If all people ever hear about is either/or, then they will look for a single solution, which will inevitably be insufficient. If the public instead hears about both, then they will look for more complex solutions that can address the multiple causes, and which will be far more likely to succeed.

For example, take the ballooning federal deficit, please. Pundits and politicians would like you to believe that the cause is either too much government spending or tax rates that are too low. If the public buys into that dichotomy, then the public will assume that simply cutting spending or raising taxes will solve the problem. But it won’t. The problem involves both federal spending and insufficient taxes, and it will only be solved by addressing both causes.

Discussion matters because it ends up circumscribing actual policy. So let’s make sure our discussions are accurate, even if complicated, because life is complicated.

CEO Pay: Out of Control

I was reading an article the other day about executive pay in America. This article said that in 1980 the ratio of what the CEO made to what the average worker made was 44:1. By 2007, that ratio had risen to 344:1. In other words, CEO pay went up 7.8 times as much as average worker pay.

That got me to thinking: has the average American company gotten 7.8 times as complex since 1980? That seems unlikely. So I searched for data that would answer my question, and I couldn’t find any. Therefore my assumption that companies have not gotten 8 times more complicated will have to stand.

But even if that assumption is wrong – even if companies HAVE gotten 7.8 times more complicated – that doesn’t mean that the ratio of CEO pay should have gone up that much. The ratio compares CEO pay to average worker salary. And if companies are getting more complex, then lots of worker salaries should be going up. Maybe not folks on the factory floor, but the guys who run the factory. Basically, everyone at director level and above should have their salaries going up to reflect any increasing complexity. Thus CEO pay is going up even faster than any increase in corporate complexity.

So what is the explanation? You’ll have to read the article, which discusses the invidious system of compensation consultants and interlocking boards. But the bottom line comes down to greed. CEOs get as much as they can, without concern for the impact of their compensation on the company or the workers below them in the hierarchy.

As many pundits pointed out after the financial meltdown [see examples here, here and here], American companies used to have a public service obligation; they were expected to provide some value to society, not be purely profit-making vehicles. The authors of the article (who are both, I should note, professors at Harvard Business School, the American epicenter of corporate greed) call for a return to that earlier attitude, with societal obligations providing a normative check on unrestrained greed. Their money quote (sweet irony!) is here:

“Every corporation is embedded in a social matrix, and is accountable for multiple factors within that social setting: obligations to the society that provides it tax advantages or public goods, such as public schooling, publicly financed research, or basic infrastructure such as roads and airports. In a democratic society like the United States, the general public expects responsible and ethical practices and the exercise of self-restraint among business leaders in exchange for vesting an extraordinary amount of power that affects society’s well-being in private, corporate hands.”

On Sacrifice: Eliot Spitzer, Moral Leader?

Disgraced New York governor Eliot Spitzer has a great article in Slate about how Americans have lost their commitment to shared sacrifice, referencing Lincoln’s Gettysburg Address and the exhortation to all Americans to work hard so that the soldiers of the Civil War “shall not have died in vain.” I know it’s ironic to be lectured on sacrifice by someone who couldn’t even sacrifice his own orgasm for the good of his family and his state, but he makes some excellent points.

Spitzer talks mostly about taxes and energy, discussing for example how reading the Gettysburg Address makes  investment bankers arguing for millions in additional compensation seem petty. But I would go further than Spitzer; the need for all of us to sacrifice to solve some pretty big problems could be extended from investment bankers to union members. Shared sacrifice should apply to those who sue for millions when they trip in the grocery store, those who are always looking for a government handout, those who hate sharing. During World War II women stopped wearing stockings because the silk was needed for the war effort. My guess is that we all have a metaphoric stocking we can give up for the good of the country.

GOP vs. Democratic Messaging

E.J. Dionne recently wrote a piece about the open Supreme Court seat covering some of the same issues of Republican vs. Democratic messaging that I covered here and here. And a few weeks ago he wrote another article even more explicitly criticizing Democrats for continually losing the war of messages. Why are Democrats so terrible at this game? How is it possible for Frank Luntz to single-handedly kick Democratic ass time and again? I’d be willing to bet that the majority of folks at ad agencies are Democrats….so get them on the team.

You might think, and certainly we would all like to think, that policies and results are more important than messaging. Oh, how sweetly naive! If you lose the messaging battle, you never get to implement the policy and see the results. Messaging is how you get the support of the public, and since most people have very little time and/or attention for politics, your message has to be short and sweet.

Since Democrats can’t seem to get it together to develop appropriate messaging, I thought that I would take a crack at some of the key issues of the day. I don’t claim genius for any of these efforts – I’m a blogger, not a fighter – but maybe they will spark a little conversation and get some more talented folks to chip in.

Judges respecting individual rights
GOP

  • Judicial activism
  • Non-elected officials creating laws

Thoughtbasket

  • Understanding the meaning of the Constitution
  • Following in the Founding Fathers’ footsteps
  • Looking at the spirit of the law if the language is unclear

Estate taxes
GOP

  • Death taxes

Thoughtbasket

  • Monarchy prevention policy
  • Asset transfer payment

Regulation
GOP

  • Government control
  • Business killer
  • Job destroyer

Thoughtbasket

  • Public safety measure
  • Children’s health initiative

Aid to Poor
GOP

  • Socialism
  • Promoting dependency

Thoughtbasket

  • Safety net
  • Short-term help for the most vulnerable citizens

Economic Equality
GOP

  • Threat to liberty

Thoughtbasket

  • Promoting American capitalism

Questioning Security Policies
GOP

  • Unpatriotic

Thoughtbasket

  • Keeping America safe
  • Developing the best security system in the world

Healthcare Reform
GOP

  • Government takeover

Thoughtbasket

  • Preventing the deaths of innocent citizens

Finance Reform
GOP

  • Enabling taxpayer bailouts

Thoughtbasket

  • Stopping taxpayer bailouts

Raising Tax Rates
GOP

  • Destroying individual initiative

Thoughtbasket

  • Fiscal responsibility

Reaching Out to Non-allied States
GOP

  • Appeasement

Thoughtbasket

  • Realpolitik

Cap & Trade
GOP

  • Energy tax

Thoughtbasket

  • Grandchild Safety Act

Immigration Reform
GOP

  • Amnesty

Thoughtbasket

  • Continuing the American melting pot tradition

Nuclear Arms Treaties
GOP

  • Weakening America’s defense

Thoughtbasket

  • Making America safer by reducing nuclear proliferation