The Covenant
Introduction by Travis Smiely
In summary, to characterize this book, the reader will find a collection of essays by various authors. Hence the title Covenant. The narrative of each essay carries a noticeable collection of data points that are on many occasions not wholly relevant to the theme or case being made. In many cases the facts are not related to each other. And often times the statistical argument finds narrow groups of data conveniently merged with wider groups of data that is marginally related, only to exacerbate or distort the case being made. The second trait found in the book is that while almost every essay finds a solution in the NPO sector, the essay’s author leans hard into and demands for government action. And finally hiding behind these two flaws is too often the truth. That truth beholds the differences and the disparity across color in our society and most importantly the sameness. Unfortunately that truth does not come out in this book. When a Covenant is made with we the people, regardless of race, the solution will not have to be solved. We will awaken to it.
The structure of each essay is the same. Each chapter begins with an introduction on the theme, from urban renewal to rural roots and all points in between. Each essay then follows with a fact check and a section on what works. In every chapter Non Profit Organizations are at the center of what works. Unfortunately this section is always the thinnest section with the smallest voice. There are many examples of cooperatives and institutions dedicated to the improvement of Black America. When I got to the Rural Root section what was described was a fate that crossed the color barrier. Yet the organizations were for African Americans. I asked myself if a white person could and seek the benefit of the institution. Or would there exist an institutional barrier of discrimination within that organization? And would there be a loud cry in lame stream media and white pundits playing a race card.?
While many of the essays, have an overtone of militant demands to fix a society that has wronged them, the most militant chapter in the book is accessing Good Jobs, Wealth, and Economic Prosperity. It is all about entitlements and speaks directly to the Democrat Party platforms which happen to be at the root of our economic collapse; Bill Clinton’s Affordable Housing Act. We are not a country of a government brought here to serve the people. We are a government of the people and by the people. Alexander de Tocqueville, French political thinker of the the mid 19th century, said it best about America’s values. We are a people of great society, in the vision of our Founding Fathers. Not the vision of Lyndon B. Johnson. It is through the philanthropy of the American people that makes this country great. I do not mean the philanthropy characterized in the movie The Help. In doing extensive work with the American Red Cross, I know first hand about philanthropy. I know the feeling you get when you make eye contact with the person you are giving to. I also appreciate that on average seventy-five to ninety-two percent of the dollars donated to NPO’s go towards the cause, as opposed to the seven to twenty percent performance found in our government. Philanthropy is the number two industry in America. Few people know this. The Catholic Church is the number two non-profit in the United States. Fewer people know this. Bill Clinton is very involved in non-profit work and has done infinitely more for man-kind since he left the office of President of the United States than all of his public offices put together. Read his book Giving. And then think this Covenant thing through again.
This book has it wrong. The essay themes are worth a real good look. While I struggled with almost every statistical argument, the theme was worth a look. And I am sure where there is smoke there is fire. But when the solution is laced with a black-v-white narrative, there can be no solution. I draw from the movie V for Vendetta for a closing analogy. I propose that ‘We’ remove the vendetta. Round out the sharp corner at the bottom of the V. Render that ‘V’ a ‘U’ for Unity. I propose these authors make that paradigm shift and re-write this book.
Below is my interactive dialogue with the authors of each essay.
Securing the Right to Healthcare (Clearly the Obamacare agenda)
Page 12: The author advocates a check list of things the individual can do to live a healthy life. Most of all "hold all leaders and officials responsible and demand that they change current policy.
My comment: First the last item is incoherent and inconsistent with the rest of the list. It is a militant demand on those not responsible for healthy living habits.
Page 13: Myser Keels, a leader of and spokesperson for The Affordable Housing Coalition, which includes churches and community groups, said,”We've been waiting too long to get the city to bring in a big store, ... The coalition ... Demanded that the Fresno City council set aside money for it's $11 million Community Development Block Grant to build a shopping center in their community,"
My comment: Couldn't a business case with Kroger have been a more streamline approach? The author does not explore this possibility.
Page 14: Over 50% of the children [in Fayette County Public Schools are on free or reduced plan at 21 of the districts schools.
My comment: While I marvel at the staggering number on the dole, I also look at yet another misuse of statistical picture painting. An early trend set in this book. They start with black and then say persons of color which would then include Latinos and Asians. To further impede my acquiescence to the case made in this essay, I hold out the Travon Martain case, where the media and Black Figureheads (Jessie Jackson and Al Sharpton) actually call the shooter a “white Latino.” A person loses his sense of empathy when there is a strong tendency to skew the facts.
Page 15: The Bucket Brigade story that tells of a community banning together with the assistance of a NPO to prove the local manufacturers polluted their air. It resulted in government action against polluters in industry. This is clearly a case where the Black Community where clearly victims.
My comment: I feel for their suffering and stand behind the call for corrective action. However there is one thing I find in corporate America and that is they are not colored blind. They do not prejudice against blacks, or anyone else. They only prejudice for green…money.
Page 18: To aid in preventing these diseases, city planners must improve the design and construction standards in new public and state-assisted housing to improve ventilation and reduce the likelihood of mold problems.
My comment: I agree, but do not see it as solely a black problem.
Page 19: [the medical field] broader train healthcare professionals to treat patients from different backgrounds.
My comment: I am white my doctor is Indian, and I prefer Indian doctors. They have no issues in communication with me. Oddly enough Indians, do not have white skin. Why would there be an issue with black Americans and white doctors ... Or Indian doctors? If this unsubstantiated rationale prevailed, then it would be a building block for the next argument to make special provisions for more black doctors.
Establishing a System of Public Education
Page 30: A national effort at affirmative development to complement continuing efforts at affirmative action should be much broader than the initiatives directed at improving the effectiveness of education....We propose to embark upon a deliberate effort to develop academic abilities in a broad range of students who have a history of being resourced deprived and who as a consequence are under represented in the pool of academically high achieving students.
My comment: The prelude to this paragraph presents a hodge-podge of inconsistent stats. It starts with stats on blacks and adds them to people of color to exaggerate the problem statement as it the presents nothing more than broader and deeper affirmative action. I feel there may be validity in the problem statement, but the prelude diminishes the credibility. Following the actions taken by Condoleezza Rice as Provost of Stanford I therefore would have hoped for a solution that was more organically borne from within the black community.
Page 35: The Harlem Children’s Zone is one of the largest community based programs devoted to learning in and out of school.
My comment: This is a NPO program that serves 70,000 kinds I. Harlem. It comes under the section titled what is working. Yet the author on page 39 reverts back to advocating federal government spending and provisioning of early childhood schools.
Page 39: In order to level the playing field from day one, early childhood development must be a basic right of all children, just as elementary, junior, and high schools are.
My comment: First, it is not a basic right fir anyone to get an education. There is a mandate to be educated. Second, the States educate their children, not the Federal Government.
Page 40: It is unacceptable for children to be left behind academically; we must find and offer whatever resources are needed to help them learn and progress on par with children their age
My comment: Much is said by our educators about GW Bush's No Child Left Behind Act. What the schools did to the children is teach to a standard. That simple standard is "par". Bush left it to the schools to "find whatever resources.” To meet that goal. Unfortunately I feel the administrations forced a focus on the testing and lost site of the teaching. Apparently unless mandated the education administrators cannot chart their own course to other resources. I don’t fault the teachers…I take direct aim on the administrators.
Correcting the System of Unequal Justice
Page 62: Laws such as "Three Strikes" lead to individuals serving a life sentence if convicted of theft for sterling a slice of pizza. ... If a criminal law is to be effective, the punishment must fit the crime
My comment: I'll be sure to recheck where that is included in our Bill of Rights.
Page 64: it is equally important for the government to fund projects that reach put to youth before they are incarcerated including after school programs, organized mentoring opportunities, and initiatives that provide juveniles in inner cities a with esteem building skills and alternatives to criminal activity.
My comment: If the Harlem Project previously mentioned is so successful shouldn't we model after that before we seek government funding? While I agree, that inner city people need help, why when NPO’s are much more efficient would te author of this essay not reach in that direction instead? What can be done to turn up the volume on NPO engagement?
Page 66: If we encourage and help children in our families and neighborhoods to do well in school, participate in safe engage able activities, and if we hold our elected officials responsible for the rehabilitation and successful re-entry of all ex felons back into our
communities, then we can start to correct the system of unequal justice.
My comment: While generally agreeing with the goals, I find on many levels contradiction in the definition of the problem, specifically as it proposed the solution. It seems that counting on community NPO's for prevention and then falling back on the government for re-entry as a spending that policy that not only is a day late and a dollar short, but in practice in order to get government help, you must first commit a crime of which therefore Entitles you to government funds.
Ensuring Broad Access to Affordable Neighborhoods
Page 101: in the United States, where you live literally determines access to opportunity. Your address dictates whether you will have access to good schools and jobs, grocery stores, parks and other neighborhood communities. The availability of affordable housing in neighborhoods of rich opportunity, therefore, has become the next
battle ground in the fight for black people to fully participate and thrive.
My comment: Where was the battle cry for the white folks living in rural back waters fro the beginning of out nation and thru to today? I have to throw that up for question against the canvas for which the comment was made. That canvass painted the picture of the vacuum left behind by urban sprawl and cities in decline. While I appreciate the problem, this is not a 'black' issue alone. This is a problem equally contributed to by all people and until words like battleground are removed from the dialogue, no solution is at hand. These contributing essay authors draw too close a parallel line to the Israeli-
Palestinian divide.
Page 101: Equally important is access to public transit. Proportionately black people are less likely to own cars and much more dependent on public transit than whites. Plus because so many new jobs are on suburban communities, black people must rely on public transit to get to these jobs. Fair and equitable transportation strategies could effectively link African Americans to opportunity throughout the region. But most transpiration spending goes to support continued sprawl by building more and more highways, not increasing public transit such bas buses, light rail, and subways.
My comment: While I agree in principle this is not a black-white issue and the solution is two fold. First is make the city core vibrant again Mike Illich in Detroit is doing a lot in that effort. Second public transportation would reduce America's dependency on foreign oil. Urban renewal would change the strategy for a public transit system and the Illich strategy should be expanded upon by more enterprising people. What stops them? Here is a clue: I was at an inner city street fair in Cincinnati. It was in a black district
called Over the Rhine. I said to one of the venders “this goes a long way towards urban renewal.". He said “I have been coming here for the last ten years and it's a losing proposition every year". He went on to say of his merchandise, all my profit is stolen right under his nose." Until blacks address the "white flight" syndrome, there is no policy change that will turn the quality of life for blacks around.
Page 108: Public transit is often an under utilized asset in African American communities and low-income communities. By tying housing and other community services, it can link up opportunity and increase mobility.
My comment: This contradicts every thing else written in this book on public transportation. Everywhere else it is written that we need to invest in to public transport because the black community is so far under served. Now here the slippery slope begins in a dialogue on linking the train station to other community services. Regardless of the contradiction the slippery slope is not stepped upon because the whole project Bethel New Life is a private faith based organization.
Page 112: land use laws that require large lot sizes, or large square foot single-family houses drive up the cost, raising the bar too high for low-cost multi family developments.
States can enact fare-share housing policies that require every jurisdiction to plan for and build a portion of their housing to serve low- and modest income families.
My comment: I think it is appropriate for every jurisdiction to zone for housing of a blended variety. A blended community makes for a strong community. However, we need to leave it to private industry and non-profit works to build the housing. The State usually does a poor job at this and the result is an entitled neighborhood prone for crime. Entitled people don't seek work. Idle time is the devils work shop.
Page 114: Owning homes is how most Americans build wealth... Local, state, and federal leaders can systematically increase ownership for African Americans by creating housing capital pools that affirmatively market to underrepresented communities that offer mortgage subsidy, down payment assistance and credit counseling.
My comment: This comes under the heading called Affordable Housing Act. The most destructive act Bill Clinton passed. While well intended, like Bush's No Child Left Behind, the AHA is the card that caused the collapse of cards in 2008. Freddie, Fannie, and Barney forced high risk balloon loans. This hyped the real estate markets. At the time as a Series 6 & 7 Financial Adviser I was doing what was essentially pro-Bono work for financially stressed low income families. Here is what I dealt with. The pitch by realtors was “don't worry about the balloon, the prices are going up so fast, you'll be flipping this house for a larger one before it comes due. You can use the profit on the next one to purchase a conventional mortgage.” And the banks were all too ready to lend the savings for a short term reduced mortgage payment rate to lend them money to buy a new boat at higher interest rates. Based on that ‘card’, Wall Street turned a blind eye to the people's business acumen to execute on that plan. Then this group of entire people, unqualified under previous standards, went out and bought new cars and boats and they ran up credit cards. Then they defaulted leaving the leveraged paper on Wall Street worthless. So I call this entitlement plan a bad plan. What was thought good for to poor an middle class was actually devastating to the whole world. And folks the majority of the people I was doing work for were white.
Page 118: The historic West Oakland African Community paired non profit developers and low-income housing tax credit to build hundreds of new apartments and affordable condominiums near the light rail station that is one stop from downtown San Francisco.
My comment: The one good remedy using the existing system to bring about positive change in this chapter called Ensuring Broad Access to Affordable Neighborhoods.
Claiming Our Democracy (I must remind the reader that we are a Republic)
Page 133: Less than two weeks before Election Day 2005, a court decision was up held that blocked a controversial state law from taking effect that would have dramatically restricted the types of photo identification that may be used when voting. Thus African Americans were allowed to vote with a range of IDs.
My comment: Why can't we go a step further? Let's utilize the State's DMV branches to issue Voter ID cards to those who do not drive, but wish to vote. Therefore the State is doing the auditing of the person's ID.
Accessing Good Jobs, Wealth and Economic Prosperity
Page 165: as painful images of Hurricane Katrina have revealed, there remains a significant wealth gap between blacks and whites in this nation - one that must be closed if America is to thrive in the 21st century.
My comment: While Katrina exposed what is wrong in New Orleans, it was flooding, poor engineering, and incompetent government at city and State level. And yes there is a wealth gap. But I propose the author of this essay read both the Virtue of Prosperity and the Israel Test. I must challenge this notion that Barak Obama has not divided America with his rhetoric of rich –v-poor and then separately he inserts himself into local black white issues as he did in Boston. The Obama and company conveniently reach back to the paradigm of the 60s and 70s and wrongly connect it to black white issues of 50 years later. First there is nothing wrong with the gap. There will always be a gap. The gap is not caused solely by corrupt collusion of rich white people. Since there are rich black people one cannot even say it is a color gap.
Page 167: After the last recession, when white families saw there wealth grow slowly black families lost a fourth of theirs. When white families rode out the bumps in the stock market, black families saw their stock and mutual funds decline by an astounding two-thirds.
My comment: REALLY?!!!!! This author is basing his argument on a stock market conspiracy?!!!! The rising and lowering tide of the stock market adjusts the level of all boats mutually. The solution is not found in Obama's agenda. Nor is the solution based on the word 'fair' being shouted out by the Occupy Wall Street protests
Page 171: African Americans are 3.6 times more likely as whites to receive a home purchase loan from a sub-prime lender and 4.1 times as likely as whites to receive a refinance loan from sub-prime lenders. Sub-prime lending is usually one to six points over prime rate and is reserved for lending businesses that do not qualify for 'prime rates'.
My comment: The last sentence is exactly the deal Clinton cut with the banks when he passed the Affordable Housing Act. He forced banks to qualify what people who, by convention numbers practice, much like how Morningstar rates countries credit rating, for mortgages. The banks were allowed to offset the high risk that comes with unqualified lending with points to cover the risk. Those points were paid by the people that can't afford it. Jimmy Carter passed a similar law with regard to pensions. Obama's legacy is the infamous Obamacare. All three are Democrats. This agenda is prone to passing dramatic law aimed at social equality with its implementation left to Administrative Law. We saw what Freddie and Fannie can do. We are already feeling the negative impact of Obamacare in its nascent stages. Jimmy Carter's 401k plan is about to rear it's ugly head. All three programs force a program on a society that was not prepared for the change.
Page 173: [the whole Farrah Grey story is the one path to social equality]. He took no hand-outs; he was at the same time entrepreneurial and philanthropic. He was a good steward if money. And what went around came around.]
Page 177: The homeownership gap can be closed by lowering down payment requirements and making mortgages more available and affordable to all. Government officials must strengthen the Community Reinvestment Act (CRA, 1977, Jimmy Carter), a civil rights law prohibiting discrimination by banks against low-and moderate neighborhoods.
My comment: see my comment to page 171 above.
Closing the Racial Digital Divide
Page 216: So how in the span of 30 years, did the United States go from being an unchallenged technology leader to a nation falling behind in innovation. And second what does that mean for African Americans?
One explanation seems obvious. Many business leaders have under estimated the impact that personal computers would have in the hands of millions and the speed of change to follow.
My comment: The theme of this chapter is giving the Black Community more access to PCs and the Internet. While I like the idea and am inspired to open an Internet Cafe in the Over the Rhine Neighborhood in Cincinnati, I would do it to study what fruit unstructured Internet and usage would bear. I say that because of the myth the author creates that China and India are passing us up. What the author fails to point out is India and China are faced with a higher poverty gap who don't have PCs either. If indeed they even are out innovating the United States, which is debatable, access to PCs is an irrational leap in cause and effect analysis.
Monday, April 2, 2012
Incredible Carnegie
Incredible Carnegie
By John K. Winkler
How do you know Andrew Carnegie? By his famous music hall, his libraries, his famous steel fortune, his endowments, or the controversy over who he was? Did he fall into the infamous category of the Great Robber Barons? Did he indeed turn a new leaf? Or was he a simply true to his word and core beliefs? What is his legacy and what is his genius? I picked up this book, simply because it was on my bookshelf. As I delved into it I learned about Andrew Carnegie, as he was viewed in 1931, the original copyright date of this 50¢ used bookstore diamond in the rough; the earnest work of my son TJ. It was an entertaining story.
Andrew Carnegie was not born with a silver spoon, rather of an immigrant Scot and son of a weaver. He was a small 5’4” persistent, witty, opportunistic capitalist who begin his road to riches in Pittsburgh as a telegraph operator at the age of thirteen. He worked hard as a lad of which earned him early rank in his telegraph years and then again to higher rank in his railroad years. At an early age, he taught himself the art of investments and pledged to himself to not have to work for a wage by the time he reached the age of 35. This amongst other lofty goals he did achieve. So you could read the above descriptive words of Carnegie as either adjectives or verbs towards his ideals.
Carnegie’s character of fate seemed to place him constantly in the right place at the right time. As head of the telegraph office he was at the crossroads of important information being transmitted and took advantage of every word. One could possibly accuse him in this day of “insider trading”, as he did invest on this information. He leveraged the returns of his early investments to make larger investments. He eventually found himself as the arbitrator in many disputes of the then “pig iron” industry, which eventually found his name on company paper in the Iron Business.
As a matter of conservative policy Carnegie never speculated thus held off on investing into the Bessemer Furnace and the discovery of mass production steel until he was certain of its return on investment. Carnegie knew nothing of the steel making process. But he did know how to put the right people from capitalist, scientists, engineers, entrepreneurs to laborers, on his team and put his money in the game exactly when the technology and the economy were prepared to make something of it. And when you were on his team, you produced or left. His shrewd business demeanor teaches one to demand in writing that of which is spoken. So I came to appreciate the labor of my Uncle Jimmy and my nephew Brian as I read the book. You come to realize how closely knitted are the worlds of economics and philosophy (politics) …law.
As a side note to Carnegies methodology, I also was intrigued to read about the government policy’s of the time and it’s role in intervening in business by passing laws in the United States allowing for Limited Liability Partnerships giving capitalists for the first time protection of their private interests against poor money management. The book describes the second collapse of the post Civil War economy as result of the collapse a Prime bank in 1870, Carnegie’s fortune became at risk due to the unbeknownst speculative investments of one of his associates. On the associates’ promise to temporarily surrender his share of their enterprise, Carnegie took action to secure the associates’ name in a reciprocal promise to assume to assume the bad debt. Once the associates name was cleared Carnegie did not restore his associate’s fortunes on the grounds that the promise he made was not in writing. This is one of the incidences that put the integrity and moral standards of Carnegie on social trial.
There are those that would say that Carnegie was out of order and treated his associate unfairly. And to this point you could debate in behalf of Carnegie on the grounds of the poor speculative investment of one person deserved first evasive action in business, second protective action, and then third control measures, independent of a government policy. Yet in the end Carnegie did ironically take advantage of the LLC Laws and conducted business accordingly. To think there was an opportunity to rewrite Wharton’s business textbooks as opposed to getting on a slippery slope of governmental protectionism…and we missed it!
The authors perspective of the Carnegie Steel Company was summed up in one word; feudalism. The company literally owned the ore mines in Minnesota, shipping lanes on the Great Lakes, the railroads across Pennsylvania, and the Coke and Steel companies; a conglomerate of everything steel and the whole process of making it; what a way to control cost. It was written in 1931; “This arrogant, mercurial little Kaiser was jealous of his rights, impatient of counsel.” Carnegie owned the Steel business, and had President Cleveland in his pocket, writing tariffs to protect him from international competition during the formidable years, the same way we are expected to tolerate liberal Europe protection and funding of the Airbus Industries to gain competitive advantage over the United States aerospace industry. When contrasting Carnegies’ plan to the survival plan of 2004, yes business is consolidating with a more intense focus on cost control. It is the method of continued dominance on the international business stage, so on that mark I give Carnegie an A+.
However Carnegie was NOT recognized as the hero or Prime Mover in this grand scheme to dominate the Steel Industry. He was a seen as a very fortunate man who was surrounded by a handful of Prime Movers, somewhat by fate, and partially by intentional plan, to create a dynasty and mountain of wealth for all those involved with Andra Carnegie on top. Did the people benefit? Well I must ask you to circle back to my original question. How do you remember Andrew Carnegie? Most I suspect would say Carnegie Hall. Some would say his libraries. Others would say the steel business. And the protagonists of liberal ideals where the common man can blame his lot in life on successful men, would site, Carnegie’s faults.
Carnegie did have faults, which left his legacy to debate. Some were perceived and some in my view were valid. He was a hard workingman in his youth and converted his labor into capital. He did that better than the better than average man. In his effort to leverage his industrial capital upon political venue exposed him to criticism. Some were warranted, for instance the steel tariffs were direct booty from his connections to presidents of both parties. He showed no loyalty to a party; only to he who could line his pockets. His forays in to literature, first reading, then writing exposed his moral integrity. Along these lines he once wrote a widely read article proclaiming the honor of the “working man’ and then turned on that same man in a Machiavelli manor during a bitter strike. This was the beginning of his images’ downward slope. Following this his circle of geniuses’ was caught defrauding the government in producing inferior armor for the US Navy. The New York Herald with reason pounced on Carnegie and Cleveland in the same way the New York Times now clobbers Dick Cheney George W. Bush and Haliburton today. How accountable do you hold the man at the top for the actions of the workingman? And how do allegations square with the notion of LLC’s? With these left un answered public perception (liberal press) tarnished Carnegie more than Cleveland. His public image drew fire from not so much the workingman, but the political liberals’ representation of the later.
When Carnegie, an entrepreneurial financier as opposed to a “steel man” finally sold out to JP Morgan the public was alarmed at the amount of wealth that was generated not only by Carnegie, but also by many other people connected to his enterprise. How dare people in America be successful!! It was proclaimed by Senators and Newspapers that America will soon belong to a new kind of king. When I read these words I was reminded of the mullahs of Iran who strike down the enterprising man once the appearance of authority could be challenged. Oh contraire to the vision of our founding fathers of this great Republic. Alone Carnegie amassed $450,000,000 at the closure of his deal with JP Morgan; a deal which formed US Steel. What he did with that money defines his legacy, no matter how one choose to perceive the man and his deeds.
His genius though is without doubt. To quote the author; “Carnegie knew the modulus of human elasticity by instinct. No one ever had to tell him how to ascertain the tensile strength of a man, the point to which he would stretch while preserving uniform diameter. To Andrew Carnegie the molecular construction of human character, its resistance to pressure and its final fracture point were known in the mysterious way in which fledgling find their nest. Behind the luck of his first seizure of capital was the power to seize upon the weakness and utilize the strength of the men with whom he was thrown. The moral specific gravity of every man was known to him instinctively; and he built a mighty organization with human atoms as instinct selected. This was the secret of his success.”
Of this wealth (capital, legacy), Carnegie gave back all but $25,000,000 (10%); of which he bequeathed to his family. In the winter of his years, he was quoted as saying “t is indeed more blessed to give than to receive.” He was certain that to take it with him would be a failure and a mark of an unsuccessful man. But in his vanity, the blessing he received was apparent influence he observed in providing intellectual wealth through thousands of libraries. And of course he and The People should feel blessed; his genius put America in a position to prevail through the trials of the 20th century. His foundations were endless with always an aim towards world peace. However, in the end he was brought before a Congressional hearing and challenged that his phenomenal philanthropy was a threat to the American foundation ??!! All in attendance shared his enjoyment of his turn about thrashing of a liberal Congress. But today, I suspect there are again those who would challenge his means as opposed to his ends. In that light I went back to my previous reviews from Travelers Choice and Prime Movers. Of the seven qualities in either book Andrew Carnegie gets a score of fourteen in my book
This author not only does a great job telling a story about Andrew Carnegie, he did a colorful job bringing in the supporting characters (other “Robber Barons”) of those great people that made America great in that era of Splendid Isolation.
By John K. Winkler
How do you know Andrew Carnegie? By his famous music hall, his libraries, his famous steel fortune, his endowments, or the controversy over who he was? Did he fall into the infamous category of the Great Robber Barons? Did he indeed turn a new leaf? Or was he a simply true to his word and core beliefs? What is his legacy and what is his genius? I picked up this book, simply because it was on my bookshelf. As I delved into it I learned about Andrew Carnegie, as he was viewed in 1931, the original copyright date of this 50¢ used bookstore diamond in the rough; the earnest work of my son TJ. It was an entertaining story.
Andrew Carnegie was not born with a silver spoon, rather of an immigrant Scot and son of a weaver. He was a small 5’4” persistent, witty, opportunistic capitalist who begin his road to riches in Pittsburgh as a telegraph operator at the age of thirteen. He worked hard as a lad of which earned him early rank in his telegraph years and then again to higher rank in his railroad years. At an early age, he taught himself the art of investments and pledged to himself to not have to work for a wage by the time he reached the age of 35. This amongst other lofty goals he did achieve. So you could read the above descriptive words of Carnegie as either adjectives or verbs towards his ideals.
Carnegie’s character of fate seemed to place him constantly in the right place at the right time. As head of the telegraph office he was at the crossroads of important information being transmitted and took advantage of every word. One could possibly accuse him in this day of “insider trading”, as he did invest on this information. He leveraged the returns of his early investments to make larger investments. He eventually found himself as the arbitrator in many disputes of the then “pig iron” industry, which eventually found his name on company paper in the Iron Business.
As a matter of conservative policy Carnegie never speculated thus held off on investing into the Bessemer Furnace and the discovery of mass production steel until he was certain of its return on investment. Carnegie knew nothing of the steel making process. But he did know how to put the right people from capitalist, scientists, engineers, entrepreneurs to laborers, on his team and put his money in the game exactly when the technology and the economy were prepared to make something of it. And when you were on his team, you produced or left. His shrewd business demeanor teaches one to demand in writing that of which is spoken. So I came to appreciate the labor of my Uncle Jimmy and my nephew Brian as I read the book. You come to realize how closely knitted are the worlds of economics and philosophy (politics) …law.
As a side note to Carnegies methodology, I also was intrigued to read about the government policy’s of the time and it’s role in intervening in business by passing laws in the United States allowing for Limited Liability Partnerships giving capitalists for the first time protection of their private interests against poor money management. The book describes the second collapse of the post Civil War economy as result of the collapse a Prime bank in 1870, Carnegie’s fortune became at risk due to the unbeknownst speculative investments of one of his associates. On the associates’ promise to temporarily surrender his share of their enterprise, Carnegie took action to secure the associates’ name in a reciprocal promise to assume to assume the bad debt. Once the associates name was cleared Carnegie did not restore his associate’s fortunes on the grounds that the promise he made was not in writing. This is one of the incidences that put the integrity and moral standards of Carnegie on social trial.
There are those that would say that Carnegie was out of order and treated his associate unfairly. And to this point you could debate in behalf of Carnegie on the grounds of the poor speculative investment of one person deserved first evasive action in business, second protective action, and then third control measures, independent of a government policy. Yet in the end Carnegie did ironically take advantage of the LLC Laws and conducted business accordingly. To think there was an opportunity to rewrite Wharton’s business textbooks as opposed to getting on a slippery slope of governmental protectionism…and we missed it!
The authors perspective of the Carnegie Steel Company was summed up in one word; feudalism. The company literally owned the ore mines in Minnesota, shipping lanes on the Great Lakes, the railroads across Pennsylvania, and the Coke and Steel companies; a conglomerate of everything steel and the whole process of making it; what a way to control cost. It was written in 1931; “This arrogant, mercurial little Kaiser was jealous of his rights, impatient of counsel.” Carnegie owned the Steel business, and had President Cleveland in his pocket, writing tariffs to protect him from international competition during the formidable years, the same way we are expected to tolerate liberal Europe protection and funding of the Airbus Industries to gain competitive advantage over the United States aerospace industry. When contrasting Carnegies’ plan to the survival plan of 2004, yes business is consolidating with a more intense focus on cost control. It is the method of continued dominance on the international business stage, so on that mark I give Carnegie an A+.
However Carnegie was NOT recognized as the hero or Prime Mover in this grand scheme to dominate the Steel Industry. He was a seen as a very fortunate man who was surrounded by a handful of Prime Movers, somewhat by fate, and partially by intentional plan, to create a dynasty and mountain of wealth for all those involved with Andra Carnegie on top. Did the people benefit? Well I must ask you to circle back to my original question. How do you remember Andrew Carnegie? Most I suspect would say Carnegie Hall. Some would say his libraries. Others would say the steel business. And the protagonists of liberal ideals where the common man can blame his lot in life on successful men, would site, Carnegie’s faults.
Carnegie did have faults, which left his legacy to debate. Some were perceived and some in my view were valid. He was a hard workingman in his youth and converted his labor into capital. He did that better than the better than average man. In his effort to leverage his industrial capital upon political venue exposed him to criticism. Some were warranted, for instance the steel tariffs were direct booty from his connections to presidents of both parties. He showed no loyalty to a party; only to he who could line his pockets. His forays in to literature, first reading, then writing exposed his moral integrity. Along these lines he once wrote a widely read article proclaiming the honor of the “working man’ and then turned on that same man in a Machiavelli manor during a bitter strike. This was the beginning of his images’ downward slope. Following this his circle of geniuses’ was caught defrauding the government in producing inferior armor for the US Navy. The New York Herald with reason pounced on Carnegie and Cleveland in the same way the New York Times now clobbers Dick Cheney George W. Bush and Haliburton today. How accountable do you hold the man at the top for the actions of the workingman? And how do allegations square with the notion of LLC’s? With these left un answered public perception (liberal press) tarnished Carnegie more than Cleveland. His public image drew fire from not so much the workingman, but the political liberals’ representation of the later.
When Carnegie, an entrepreneurial financier as opposed to a “steel man” finally sold out to JP Morgan the public was alarmed at the amount of wealth that was generated not only by Carnegie, but also by many other people connected to his enterprise. How dare people in America be successful!! It was proclaimed by Senators and Newspapers that America will soon belong to a new kind of king. When I read these words I was reminded of the mullahs of Iran who strike down the enterprising man once the appearance of authority could be challenged. Oh contraire to the vision of our founding fathers of this great Republic. Alone Carnegie amassed $450,000,000 at the closure of his deal with JP Morgan; a deal which formed US Steel. What he did with that money defines his legacy, no matter how one choose to perceive the man and his deeds.
His genius though is without doubt. To quote the author; “Carnegie knew the modulus of human elasticity by instinct. No one ever had to tell him how to ascertain the tensile strength of a man, the point to which he would stretch while preserving uniform diameter. To Andrew Carnegie the molecular construction of human character, its resistance to pressure and its final fracture point were known in the mysterious way in which fledgling find their nest. Behind the luck of his first seizure of capital was the power to seize upon the weakness and utilize the strength of the men with whom he was thrown. The moral specific gravity of every man was known to him instinctively; and he built a mighty organization with human atoms as instinct selected. This was the secret of his success.”
Of this wealth (capital, legacy), Carnegie gave back all but $25,000,000 (10%); of which he bequeathed to his family. In the winter of his years, he was quoted as saying “t is indeed more blessed to give than to receive.” He was certain that to take it with him would be a failure and a mark of an unsuccessful man. But in his vanity, the blessing he received was apparent influence he observed in providing intellectual wealth through thousands of libraries. And of course he and The People should feel blessed; his genius put America in a position to prevail through the trials of the 20th century. His foundations were endless with always an aim towards world peace. However, in the end he was brought before a Congressional hearing and challenged that his phenomenal philanthropy was a threat to the American foundation ??!! All in attendance shared his enjoyment of his turn about thrashing of a liberal Congress. But today, I suspect there are again those who would challenge his means as opposed to his ends. In that light I went back to my previous reviews from Travelers Choice and Prime Movers. Of the seven qualities in either book Andrew Carnegie gets a score of fourteen in my book
This author not only does a great job telling a story about Andrew Carnegie, he did a colorful job bringing in the supporting characters (other “Robber Barons”) of those great people that made America great in that era of Splendid Isolation.
The Israel Test
The Israel Test
By George Gilder
What is your attitude toward people who excel you in the creation of wealth or in other accomplishment? Do you aspire to their excellence, or do you seethe at it? Do you admire and celebrate exceptional achievement, or do you impugn it and seek to tear it down? This in a nut shell is the Israel Test. In summary, some people admire success; some people envy it. The "enviers" hate Israel. I found while reading the book that those who fail the Israel test do so not with just Jews or Israelis but with all those who excel beyond their capabilities. It is rather the many people who collectively despise the minds of the few that this book is about. For it is the critical thinking mind that produces the fertile ground to advance mankind and the multitudes that envy the wealth they so justifiably earned.
But it is really more than that and this book peels back the layers of the onion and provides a cross-sectional view effect and cause. Specifically he describes accomplishments of Jews and then colludes with their causes. In the process he takes a critical view on leftward leaning thinkers like Barak Obama as they are never a cause for success in the form of a nurturing perspective. However they may be the cause from a survival or self defense perspective. In the mind of Gilder, Barak Obama and Mahmoud Ahmadinejad albeit one Sunni and the other Shea, find themselves of like minds. Notice both men advance their agendas, by attacking their opponent to distract from the flaws of their own agenda. With this thought in mind you can imagine the “pearl in store” for Israel and America and really appreciate what it is that is at stake should they lose their momentum.
The book does an amazing bit of enlightenment to readers not familiar with accomplishments of Jews in America, Jews in Israel, and then Jews of the world. Ironically, while the book is about Jewish contributions to the world and therefore their necessity in the world, it is just as much about the foundation of capitalism within a democracy that allows for a people to move mankind forward. There is always a nagging question on the readers mind; surely excellence cannot be the sole domain of Jews can it? Without a capitalistic economy on a free democracy, the world would be stuck in a time warp of pre-industrial revolution era....Where Islam had been until oil brought a new dynamic on world order. Gilder takes a high horse posture in his presentation of Jewish accomplishment to set the reader up for the test, to answer the opening questions of this review.
On capitalism Gilder writes, “What makes capitalism succeed is not chiefly it's structure of incentives but it's use of knowledge and experience... Under capitalism knowledge grows apace with wealth. Democracy without capitalism has no content, since no power centers outside the state can form and sustain themselves. Without capitalism and free trade, self determination is a pretext for constant civil war, as each shard of nationality is sharpened into a sword implanted in it's own holy specified agenda, presumably defended by the United States or the United Nations. The critical test for democracy is it's ability to free human energies and intellect on the frontiers of human accomplishment.” To test to see if there is something evidently in the human mind, even when carefully honed at Oxford or at Sorbonne, that hesitates to believe in capitalism?
The actual trial on Israel , a Test on mankind as Gilder calls it, of which is taking ample space above the fold on the front pages of world newspapers does not completely hold Israeli’s without flaw. But he demonstrates that not only could Jewish people make adjustments to their own mistakes they were able to for the first time in the history of Palestinian people provide for an improvement in their standard of living. Gilder provides statistics of the land prior to the State of Israel and then specifically illustrates that in the time post the 1967 Six Day War and prior to the 1987 intifada, Palestinians saw significant, 40% year over year, gains in their living standard as they worked side by side with Jews. The trial is not about a fight over a small piece of land, but rather the Muslim’s refusal to work for and acknowledge a Jew for his accomplishments. In this the Muslims fail the Test. At a higher level “The Test “is about all mans’ willingness to work for and in the graciousness of those few people that make the standard of life for all better.
Gilder at times may appear to come across as an “in your face Jew”. However he is everything but and you learn that what is in your face is likely your own denial that the facts. So what is in your face is not Gilder but your own subconscious as Guilder enlightens you with ample cause and effect to demonstrate the world’s dependence on our passing the Israel Test. Where Israel is at the apex of a test for man kind is the culmination of Jewish success second only to the United States against a world of Islamic hatred for them. In this gauntlet under the umbrella of the United States as US citizens Jewish entrepreneurial prowess was given birth in a new and modern world. They then made their pilgrimage to Israel and continued under the protection of Western powers to found a democracy underwritten by capitalism and perpetuated entrepreneurial contributions enhance the living conditions of mankind.
They did this on a small piece of unproductive land that laid fallow under Islamic rule for 1,500 years. Could this test be applied else where? Will time allow India to demonstrate the same prowess? Absolutely and the reason for this is India like many western powers that have found success, are based in the freedoms within democratic law that allow the engines of capitalism to produce the advancement required to meet the needs of a modern world. I bring India in to the equation so that you can read the book and when challenged by the word Jew simply substitute Indian. This is not to slight either peoples, but rather to help you over come the “Jew in your face” reaction and afford a little objectivity as the facts settle in. When you read Gilders final chapter on his own Israel Test, you will appreciate that it is not an insult to awaken to a need for recognition and acceptance of the hand that feeds you, whether it be America, Israeli, Chinese, Japanese, or Indian. Gilder’s Israel Test is just that wake up call.
My notes:
Page 26 after the Arabs refused all offers of land for peace in the wake of the 1967 war, the Israelis inherited it by default. Under Israeli management, economic growth in the West Bank and Gaza surged for some twenty years? And the number of Arabs grew for roughly one million to almost three million in some 261 new towns while the number of Jews in territories rose merely 250,000, settled on land not exceeding 2% of the area of the West Bank. As the Israelis spurred development, Arabs thronged in to participate in it. Between 1967 and the first intifada in 1987, Arab settlers moving in from Jordan and other countries out numbered Israeli settlers by a factor of ten.
Page 27 Hostility toward Jews stems not from any alleged legal violation or untoward violence but from there exceptional virtues. This is the essence of anti-Semitism.
Page 46. In the 19th century Jews purchased land in Palestine a barren land under Arab rule with a poor economy they built an economy that attracted Arab and Jew alike. Arab population surged to 1.35 million the Jews grew to 650 thousand. The peace-process brought millions of dollars in foreign aid which shifted Palestinians from entrepreneurs to codependent ghetto violent male gangs and welfare queens.
Page 59. The concept of economic autarky is the chief cause of the poverty in the world. No one can be rich alone. Wealth is an effect of sharing and collaboration between an elite of capitalists and the insurgent new business rising around them. It is an effect of willingness of the young and less educated or less talented to work for the educated and able. It is a product of apprenticeship and learning followed by entrepreneurial rivalry. The success of the Israeli economy is not an imbalance that crates invidious gaps, it is a gap that summons new energies and new wealth.
All capitalist advance generates imbalances and disequilibrium. Growth is an effect of the dis-equilibrating activities of entrepreneurs, the creative destruction unleashed by rate feats of excellence.
Page 75 by delving down deep in the atom we rise up to a level of mathematical abstraction only glimpsed in the previous experimental science of the visible world.
But we do not, as Von Neumann supremely understood, rise all the way up. As Kurt Godel demonstrated in early twentieth century, and Von Neumann’s Goedel's first interpreter and greatest prophet, repeatedly showed, the symbolic logic driving both math an science - the computer and the quantum - is ultimately axiomatic. It cannot prove itself in it's own term but must rely on a set of assumptions outside the system.
Wealth springs from the minds of men, and, above all from the minds of a relatively few men who operate at the nexus of word and world - on the boarders of math and manufacturer - in the realm of the algorithm.
Page 81 Mathematics ultimately would repose on a foundation of faith. The universe rests on a logical coherence that cannot be proven but to which men must commit if they are to create
Page 104 until 1957 Israel was a high wage, secure job economy. It's economy was not producing. The absence of competition was a result in part of virtually complete protection from foreign competition afforded by import and exchange controls
Page 106 in the mid 1980's Yitzhak Shamir followed Reagan’s example and shortly after the USSR folded and allowed millions of scientist Jews to flee ti Israel. Being anti communist and intellectual gave Israel the engine to jolt them to scientific achievement at first rate based on entrepreneurial capitalism. Their brain power drew in capital which produced technological advancement at pace with the United States.
Page 109. The same forces of freedom unleashed on Israel in the 1990's could well dictate that fortunes will disappear within a few generations. It is a rigid rule of capitalism lm that over funded banks, are disasters waiting to happen, while small sums in the hands of a few exceptional men can yield equally unexpected riches.
Page127 Von Neuman was the paramount figure of the twentieth century science because he was the li k between the pioneered of quantum theory and the machines that won WWII, that prevailed in the Cold War, and the enabled the emergence of a global economy tied together and fructified by the internet. The entire saga is one fabric, woven largely by Jews.
Page 139 the Arab-Israeli conflict everywhere understood (wrongly in my view) as an impossibility embittered dispute over absurdly small patches of geography. The promise of a global network seamlessly providing near-infinite bandwidth indifferent to application is the promise, like almost every major economic advance for the past two hundred years, to render geography trivial.
Page148 Biological beings partake of the Godel proof of the limitations of symbolic logic - it's dependence on axioms that it cannot prove. Like mathematics, biological science depends on and transcends an orderly cosmos of monotheistic faith.
Page 155 Biology is a set of living algorithmic entities. Compile the biological entities into a database and apply the algorithms, and you can find the pathways to the inner logic of life.
The algorithmic thinking that fuels such ventures comes naturally to the gifted few. Without permitting the gifted and diligent to emerge, prevail, create, and ultimately rule the cpanding heights, there is no way to have a successful system based on the algorithms of a new economy.
Page 155 the Talpion system needs to be captured verbatim in the review. The system has vaulted Israel and India in engineering prowess.
Page 165. The successful allocation of capital, like the launch of a new technology, is an elegant expression if the capitalist law that mind rules and matter serves, just as squandering of capital can create havoc far beyond that wrought by any scarcity of goods.
Page 167 in the Period fro 1984 - 1990 evry significant reduction in top marginal tax rates anywhere I. The world for which we have decent data: economic growth surged, inflation fell ( down to 11 percent by 1993$, and tax receipts rose. And Netanyahu's reduction in personal tax rates continues - to a planned 39 percent by year 2015 down from 60% in 1980.
Page 173 Crucial to Netanyahu's is the power as a global financial center to transform the economics of the Middle East. Israel can become the "Hong Kong of the Desert" ultimately reshaped the Chinese economy of it's own image when Deng Xiaoping mimicked it's free economics in his free-zone program. Even the Taiwan and Communist China became turned capitalist and most of Taiwan’s investment moved to the mainland. Under Netanyahu, Israel can become a similar force in the Middle East, reaching out ti Palestinians and other Arabs.
My challenge is why can't this same approach be made in Iraq, Iran or any other country in the Middle East? Is entrepreneurial spirit lacking in Muslim people? Or do their Imams subdue it? There exists an equal comparisons by analysis available between India and The Muslim world.
Page 184 Conspicuous weakness is a prime cause of war.
Page 195. Von Neuman was always concerned with dynamic processes and saw that economic systems could not achieve equilibrium outside an environment of growth. Capitalism by nature is a positive sum game, in which every transaction theoretically can yield two or more winners. As long as the exchanges are voluntary, they will not occur unless both parties believe they will gain from them
Page 197. Newman's message is that civilization depends on long time horizons in repetitive games. In a single exchange, the rational policy is predatory. If predatory action brings success, a player is never induced to extend the time horizon. By accommodating aggression, a nation invites it. Peace requires the imposition of penalties on aggression.
A crucial element in all games is the discount rate, which determines the time value of the reward, the terms in which one can trade benefits now for the benefits over the long run. In economics this factor is quantified as the rate is quantified as the rate of interest.
Capitalism works because if it's long time horizons and low discount rates that optimize behavior. The time element is crucial to the deepening of capital and the generation of positive sum games.
The more players focus on politics rather than on economics, the more the game tends to deteriorate. Without capitalism, democracy is a zero sum game that leads to conflict and war.
Page 217 Netanyahu told Congress after 9/11 that there is no international terrorism without the support of sovereign states...Terrorist are not suspended in mid air. The train, arm, and indoctrinate their killers fro safe havens in terrorists countries.... Iran, Pakistan, Egypt, Syria, North Korea. Until the world community applies 100% of their policy to not feed them in any way from business to negotiating with them terrorism will flourish at some level.
Over all notion of land for peace is in opposition to this idea.
Page 237 with regard to Israel' s survival not only are they the canary in the coal mine, they are an integral part of the coal mine
By George Gilder
What is your attitude toward people who excel you in the creation of wealth or in other accomplishment? Do you aspire to their excellence, or do you seethe at it? Do you admire and celebrate exceptional achievement, or do you impugn it and seek to tear it down? This in a nut shell is the Israel Test. In summary, some people admire success; some people envy it. The "enviers" hate Israel. I found while reading the book that those who fail the Israel test do so not with just Jews or Israelis but with all those who excel beyond their capabilities. It is rather the many people who collectively despise the minds of the few that this book is about. For it is the critical thinking mind that produces the fertile ground to advance mankind and the multitudes that envy the wealth they so justifiably earned.
But it is really more than that and this book peels back the layers of the onion and provides a cross-sectional view effect and cause. Specifically he describes accomplishments of Jews and then colludes with their causes. In the process he takes a critical view on leftward leaning thinkers like Barak Obama as they are never a cause for success in the form of a nurturing perspective. However they may be the cause from a survival or self defense perspective. In the mind of Gilder, Barak Obama and Mahmoud Ahmadinejad albeit one Sunni and the other Shea, find themselves of like minds. Notice both men advance their agendas, by attacking their opponent to distract from the flaws of their own agenda. With this thought in mind you can imagine the “pearl in store” for Israel and America and really appreciate what it is that is at stake should they lose their momentum.
The book does an amazing bit of enlightenment to readers not familiar with accomplishments of Jews in America, Jews in Israel, and then Jews of the world. Ironically, while the book is about Jewish contributions to the world and therefore their necessity in the world, it is just as much about the foundation of capitalism within a democracy that allows for a people to move mankind forward. There is always a nagging question on the readers mind; surely excellence cannot be the sole domain of Jews can it? Without a capitalistic economy on a free democracy, the world would be stuck in a time warp of pre-industrial revolution era....Where Islam had been until oil brought a new dynamic on world order. Gilder takes a high horse posture in his presentation of Jewish accomplishment to set the reader up for the test, to answer the opening questions of this review.
On capitalism Gilder writes, “What makes capitalism succeed is not chiefly it's structure of incentives but it's use of knowledge and experience... Under capitalism knowledge grows apace with wealth. Democracy without capitalism has no content, since no power centers outside the state can form and sustain themselves. Without capitalism and free trade, self determination is a pretext for constant civil war, as each shard of nationality is sharpened into a sword implanted in it's own holy specified agenda, presumably defended by the United States or the United Nations. The critical test for democracy is it's ability to free human energies and intellect on the frontiers of human accomplishment.” To test to see if there is something evidently in the human mind, even when carefully honed at Oxford or at Sorbonne, that hesitates to believe in capitalism?
The actual trial on Israel , a Test on mankind as Gilder calls it, of which is taking ample space above the fold on the front pages of world newspapers does not completely hold Israeli’s without flaw. But he demonstrates that not only could Jewish people make adjustments to their own mistakes they were able to for the first time in the history of Palestinian people provide for an improvement in their standard of living. Gilder provides statistics of the land prior to the State of Israel and then specifically illustrates that in the time post the 1967 Six Day War and prior to the 1987 intifada, Palestinians saw significant, 40% year over year, gains in their living standard as they worked side by side with Jews. The trial is not about a fight over a small piece of land, but rather the Muslim’s refusal to work for and acknowledge a Jew for his accomplishments. In this the Muslims fail the Test. At a higher level “The Test “is about all mans’ willingness to work for and in the graciousness of those few people that make the standard of life for all better.
Gilder at times may appear to come across as an “in your face Jew”. However he is everything but and you learn that what is in your face is likely your own denial that the facts. So what is in your face is not Gilder but your own subconscious as Guilder enlightens you with ample cause and effect to demonstrate the world’s dependence on our passing the Israel Test. Where Israel is at the apex of a test for man kind is the culmination of Jewish success second only to the United States against a world of Islamic hatred for them. In this gauntlet under the umbrella of the United States as US citizens Jewish entrepreneurial prowess was given birth in a new and modern world. They then made their pilgrimage to Israel and continued under the protection of Western powers to found a democracy underwritten by capitalism and perpetuated entrepreneurial contributions enhance the living conditions of mankind.
They did this on a small piece of unproductive land that laid fallow under Islamic rule for 1,500 years. Could this test be applied else where? Will time allow India to demonstrate the same prowess? Absolutely and the reason for this is India like many western powers that have found success, are based in the freedoms within democratic law that allow the engines of capitalism to produce the advancement required to meet the needs of a modern world. I bring India in to the equation so that you can read the book and when challenged by the word Jew simply substitute Indian. This is not to slight either peoples, but rather to help you over come the “Jew in your face” reaction and afford a little objectivity as the facts settle in. When you read Gilders final chapter on his own Israel Test, you will appreciate that it is not an insult to awaken to a need for recognition and acceptance of the hand that feeds you, whether it be America, Israeli, Chinese, Japanese, or Indian. Gilder’s Israel Test is just that wake up call.
My notes:
Page 26 after the Arabs refused all offers of land for peace in the wake of the 1967 war, the Israelis inherited it by default. Under Israeli management, economic growth in the West Bank and Gaza surged for some twenty years? And the number of Arabs grew for roughly one million to almost three million in some 261 new towns while the number of Jews in territories rose merely 250,000, settled on land not exceeding 2% of the area of the West Bank. As the Israelis spurred development, Arabs thronged in to participate in it. Between 1967 and the first intifada in 1987, Arab settlers moving in from Jordan and other countries out numbered Israeli settlers by a factor of ten.
Page 27 Hostility toward Jews stems not from any alleged legal violation or untoward violence but from there exceptional virtues. This is the essence of anti-Semitism.
Page 46. In the 19th century Jews purchased land in Palestine a barren land under Arab rule with a poor economy they built an economy that attracted Arab and Jew alike. Arab population surged to 1.35 million the Jews grew to 650 thousand. The peace-process brought millions of dollars in foreign aid which shifted Palestinians from entrepreneurs to codependent ghetto violent male gangs and welfare queens.
Page 59. The concept of economic autarky is the chief cause of the poverty in the world. No one can be rich alone. Wealth is an effect of sharing and collaboration between an elite of capitalists and the insurgent new business rising around them. It is an effect of willingness of the young and less educated or less talented to work for the educated and able. It is a product of apprenticeship and learning followed by entrepreneurial rivalry. The success of the Israeli economy is not an imbalance that crates invidious gaps, it is a gap that summons new energies and new wealth.
All capitalist advance generates imbalances and disequilibrium. Growth is an effect of the dis-equilibrating activities of entrepreneurs, the creative destruction unleashed by rate feats of excellence.
Page 75 by delving down deep in the atom we rise up to a level of mathematical abstraction only glimpsed in the previous experimental science of the visible world.
But we do not, as Von Neumann supremely understood, rise all the way up. As Kurt Godel demonstrated in early twentieth century, and Von Neumann’s Goedel's first interpreter and greatest prophet, repeatedly showed, the symbolic logic driving both math an science - the computer and the quantum - is ultimately axiomatic. It cannot prove itself in it's own term but must rely on a set of assumptions outside the system.
Wealth springs from the minds of men, and, above all from the minds of a relatively few men who operate at the nexus of word and world - on the boarders of math and manufacturer - in the realm of the algorithm.
Page 81 Mathematics ultimately would repose on a foundation of faith. The universe rests on a logical coherence that cannot be proven but to which men must commit if they are to create
Page 104 until 1957 Israel was a high wage, secure job economy. It's economy was not producing. The absence of competition was a result in part of virtually complete protection from foreign competition afforded by import and exchange controls
Page 106 in the mid 1980's Yitzhak Shamir followed Reagan’s example and shortly after the USSR folded and allowed millions of scientist Jews to flee ti Israel. Being anti communist and intellectual gave Israel the engine to jolt them to scientific achievement at first rate based on entrepreneurial capitalism. Their brain power drew in capital which produced technological advancement at pace with the United States.
Page 109. The same forces of freedom unleashed on Israel in the 1990's could well dictate that fortunes will disappear within a few generations. It is a rigid rule of capitalism lm that over funded banks, are disasters waiting to happen, while small sums in the hands of a few exceptional men can yield equally unexpected riches.
Page127 Von Neuman was the paramount figure of the twentieth century science because he was the li k between the pioneered of quantum theory and the machines that won WWII, that prevailed in the Cold War, and the enabled the emergence of a global economy tied together and fructified by the internet. The entire saga is one fabric, woven largely by Jews.
Page 139 the Arab-Israeli conflict everywhere understood (wrongly in my view) as an impossibility embittered dispute over absurdly small patches of geography. The promise of a global network seamlessly providing near-infinite bandwidth indifferent to application is the promise, like almost every major economic advance for the past two hundred years, to render geography trivial.
Page148 Biological beings partake of the Godel proof of the limitations of symbolic logic - it's dependence on axioms that it cannot prove. Like mathematics, biological science depends on and transcends an orderly cosmos of monotheistic faith.
Page 155 Biology is a set of living algorithmic entities. Compile the biological entities into a database and apply the algorithms, and you can find the pathways to the inner logic of life.
The algorithmic thinking that fuels such ventures comes naturally to the gifted few. Without permitting the gifted and diligent to emerge, prevail, create, and ultimately rule the cpanding heights, there is no way to have a successful system based on the algorithms of a new economy.
Page 155 the Talpion system needs to be captured verbatim in the review. The system has vaulted Israel and India in engineering prowess.
Page 165. The successful allocation of capital, like the launch of a new technology, is an elegant expression if the capitalist law that mind rules and matter serves, just as squandering of capital can create havoc far beyond that wrought by any scarcity of goods.
Page 167 in the Period fro 1984 - 1990 evry significant reduction in top marginal tax rates anywhere I. The world for which we have decent data: economic growth surged, inflation fell ( down to 11 percent by 1993$, and tax receipts rose. And Netanyahu's reduction in personal tax rates continues - to a planned 39 percent by year 2015 down from 60% in 1980.
Page 173 Crucial to Netanyahu's is the power as a global financial center to transform the economics of the Middle East. Israel can become the "Hong Kong of the Desert" ultimately reshaped the Chinese economy of it's own image when Deng Xiaoping mimicked it's free economics in his free-zone program. Even the Taiwan and Communist China became turned capitalist and most of Taiwan’s investment moved to the mainland. Under Netanyahu, Israel can become a similar force in the Middle East, reaching out ti Palestinians and other Arabs.
My challenge is why can't this same approach be made in Iraq, Iran or any other country in the Middle East? Is entrepreneurial spirit lacking in Muslim people? Or do their Imams subdue it? There exists an equal comparisons by analysis available between India and The Muslim world.
Page 184 Conspicuous weakness is a prime cause of war.
Page 195. Von Neuman was always concerned with dynamic processes and saw that economic systems could not achieve equilibrium outside an environment of growth. Capitalism by nature is a positive sum game, in which every transaction theoretically can yield two or more winners. As long as the exchanges are voluntary, they will not occur unless both parties believe they will gain from them
Page 197. Newman's message is that civilization depends on long time horizons in repetitive games. In a single exchange, the rational policy is predatory. If predatory action brings success, a player is never induced to extend the time horizon. By accommodating aggression, a nation invites it. Peace requires the imposition of penalties on aggression.
A crucial element in all games is the discount rate, which determines the time value of the reward, the terms in which one can trade benefits now for the benefits over the long run. In economics this factor is quantified as the rate is quantified as the rate of interest.
Capitalism works because if it's long time horizons and low discount rates that optimize behavior. The time element is crucial to the deepening of capital and the generation of positive sum games.
The more players focus on politics rather than on economics, the more the game tends to deteriorate. Without capitalism, democracy is a zero sum game that leads to conflict and war.
Page 217 Netanyahu told Congress after 9/11 that there is no international terrorism without the support of sovereign states...Terrorist are not suspended in mid air. The train, arm, and indoctrinate their killers fro safe havens in terrorists countries.... Iran, Pakistan, Egypt, Syria, North Korea. Until the world community applies 100% of their policy to not feed them in any way from business to negotiating with them terrorism will flourish at some level.
Over all notion of land for peace is in opposition to this idea.
Page 237 with regard to Israel' s survival not only are they the canary in the coal mine, they are an integral part of the coal mine
The Virtue of Prosperity
The Virtue of Prosperity
by Dinesh D'Souza
The theme of this book is about finding values in Techno Affluence. This
book excites you about our future. The first chapter is dedicated to the
excitement surrounding the potential for wealth borne in technology. From
there we jump into the dichotomy of the Party of Neah and the Party of Yeah.
Neah's are fundamentalists who do not believe the Internet exist and the
.com Stock Market will crash. The Party of Yeah is optimistic. They feel
that new ideas and information are a new form of capital. Imagine these
parties superseding 'Left & Right'. The idea that creativity is an act of
faith puts a techno spin on religion. The Party of Yeah asserts that they
seek to accomplish what Priests, Intellectuals, and Bureaucrats failed at:
solve the problem of scarcity. After putting Techno in the same realm as
religion and politics, D'Souza makes some claims on techno economics that
will surely raise the hair on George Sorro's neck. While D'Souza refers to
many expert authors across the span of the argument on where the virtue lay,
you gain some compassion as to why you may have mixed feelings yourself.
The book closes with a sense of balance that allows a person to be excited
about our future and at the same time maintain a sense of cardinal headings
from lessons learned over the course of mankind.
In the midst of this social conflict we are to observe the over-class
displaying their internal conflict along the same lines. Witnessing rich
folks flaunting their wealth in torn blue jeans and Porsche and NOT leaving
their fortunes to their heirs but giving the majority of their money to
charity. This sets us up for D'Souza's message. To help heal the social
division caused by the new techno-capitalism and to help reconcile what
place technology and wealth should occupy in our pursuit of the good life.
With regard to opportunity, D'Souza describes this new economy as one with a
naturally higher degree of equal opportunity. You read about the wisdom in
our Founding Fathers, proclaiming a voice for equal rights, not equal
outcomes. Furthermore, D'Souza was a middle class immigrant from India who
went to Dartmouth. His Dartmouth education was funded largely by the
private sector, an Ivy League tradition. His book is yet another way of
paying back on that loan. He does however give tribute to the social
connection of Ivy League schools and its merit towards the exposure to
venture capital. In summary I liked this quote by Sabeer Bhatia when
commenting about being a person of color; "I quickly realized that being
foreign born was no barrier, it was only a barrier in my mind."
After being primed, D'Souza delves into the crux of the matter by exploring
all angles of the question. Can you make people better by means of
technological progress? Are the Amish correct in benchmarking technology
against the focus on moral footing in land, family, community? OR can we
have it both ways? It is suggested that free market capitalism is only
one of a three-legged stool. The other two are a democratic polity, and a
Judeo-Christian social ethic.
D'Souza does a very good job drawing on quotations of famous economists,
entrepreneurs, the Bible, and philosophers to rationalize the idea that
capitalism and wealth is good. He draws from people like Adam Smith, Ayn
Rand, and George Guilder, Lockee, Bacon, Adams; summarizes each respective
argument and distills a basic theme that "If the rich are getting richer and
the poor are better off, then this win win scenario has achieved success. I
found it interesting the differences in economic tone between the Old and
New Testaments and the point that Jews only embrace the Old Testament. Then
on drawing a Techno-spin consider that two commandments; thou shall not
steal and thou shall not covent thy neighbors goods contemplate property
and capital.
In contemplation of our gnome future, championed by the Part of Yeah, one
must question our moral foundation by drawing contrast on Aldous Huxley's
vision of a master race back in 1932. Or in the tradition of science, what
if I patent the perfect human clone? What if I purchase a perfect set of
genes for my new child only to find them out dated in five years and no
upgrade available. Will your DNA be part of your resume? Will insurance
companies now have the information to decline you based DNA profile? But
one must also balance this with the virtues of medical break through on
disease. We have a lot of work to do to throttle the scientific minds yet
implement the fruits of their labor. Reality check: biotechnology and
science has brought us to a new horizon. The likes of Richard Dawkins;
rationalizes gnome and carbon software production of humans and thought.
They are pursuing a cure to aging in mind and body. In essence they are
defining an existence that is endless and purposeless: a working definition
of Hell?
The book clearly provoked existing thought within me. It also helped
crystallize some of my own ideas by clearing up some mis-conceptions. I
draw a corollary to reading Supreme Court arguments and opinions. The
arguments from every side are spirited, well thought out, well referenced,
and in many cases convincing on all sides. You discover that you are not
alone in your contemplation or concern on where our scientific minds are
taking us. The enthusiasm behind all argument will vex you, as well as
entertain you. The tid-bits provided here can only tease you into
reading the book. In the end you will most likely find yourself
referencing, the book in your casual conversation on where the future lay
and how to define virtue of prosperity.
Included with this review is also other books appropriately referred to by
D'Souza
1. A Theory of Justice by John Rawls
2. The Cultural Contradictions of Capitalism by Daniel Bell
3. The Spirit of Democratic Capitalism by Michael Novak
4. Natural Capitalism by Hawken, Lovins, Lovins
5. The Extended Phenotype by Richard Dawkins
by Dinesh D'Souza
The theme of this book is about finding values in Techno Affluence. This
book excites you about our future. The first chapter is dedicated to the
excitement surrounding the potential for wealth borne in technology. From
there we jump into the dichotomy of the Party of Neah and the Party of Yeah.
Neah's are fundamentalists who do not believe the Internet exist and the
.com Stock Market will crash. The Party of Yeah is optimistic. They feel
that new ideas and information are a new form of capital. Imagine these
parties superseding 'Left & Right'. The idea that creativity is an act of
faith puts a techno spin on religion. The Party of Yeah asserts that they
seek to accomplish what Priests, Intellectuals, and Bureaucrats failed at:
solve the problem of scarcity. After putting Techno in the same realm as
religion and politics, D'Souza makes some claims on techno economics that
will surely raise the hair on George Sorro's neck. While D'Souza refers to
many expert authors across the span of the argument on where the virtue lay,
you gain some compassion as to why you may have mixed feelings yourself.
The book closes with a sense of balance that allows a person to be excited
about our future and at the same time maintain a sense of cardinal headings
from lessons learned over the course of mankind.
In the midst of this social conflict we are to observe the over-class
displaying their internal conflict along the same lines. Witnessing rich
folks flaunting their wealth in torn blue jeans and Porsche and NOT leaving
their fortunes to their heirs but giving the majority of their money to
charity. This sets us up for D'Souza's message. To help heal the social
division caused by the new techno-capitalism and to help reconcile what
place technology and wealth should occupy in our pursuit of the good life.
With regard to opportunity, D'Souza describes this new economy as one with a
naturally higher degree of equal opportunity. You read about the wisdom in
our Founding Fathers, proclaiming a voice for equal rights, not equal
outcomes. Furthermore, D'Souza was a middle class immigrant from India who
went to Dartmouth. His Dartmouth education was funded largely by the
private sector, an Ivy League tradition. His book is yet another way of
paying back on that loan. He does however give tribute to the social
connection of Ivy League schools and its merit towards the exposure to
venture capital. In summary I liked this quote by Sabeer Bhatia when
commenting about being a person of color; "I quickly realized that being
foreign born was no barrier, it was only a barrier in my mind."
After being primed, D'Souza delves into the crux of the matter by exploring
all angles of the question. Can you make people better by means of
technological progress? Are the Amish correct in benchmarking technology
against the focus on moral footing in land, family, community? OR can we
have it both ways? It is suggested that free market capitalism is only
one of a three-legged stool. The other two are a democratic polity, and a
Judeo-Christian social ethic.
D'Souza does a very good job drawing on quotations of famous economists,
entrepreneurs, the Bible, and philosophers to rationalize the idea that
capitalism and wealth is good. He draws from people like Adam Smith, Ayn
Rand, and George Guilder, Lockee, Bacon, Adams; summarizes each respective
argument and distills a basic theme that "If the rich are getting richer and
the poor are better off, then this win win scenario has achieved success. I
found it interesting the differences in economic tone between the Old and
New Testaments and the point that Jews only embrace the Old Testament. Then
on drawing a Techno-spin consider that two commandments; thou shall not
steal and thou shall not covent thy neighbors goods contemplate property
and capital.
In contemplation of our gnome future, championed by the Part of Yeah, one
must question our moral foundation by drawing contrast on Aldous Huxley's
vision of a master race back in 1932. Or in the tradition of science, what
if I patent the perfect human clone? What if I purchase a perfect set of
genes for my new child only to find them out dated in five years and no
upgrade available. Will your DNA be part of your resume? Will insurance
companies now have the information to decline you based DNA profile? But
one must also balance this with the virtues of medical break through on
disease. We have a lot of work to do to throttle the scientific minds yet
implement the fruits of their labor. Reality check: biotechnology and
science has brought us to a new horizon. The likes of Richard Dawkins;
rationalizes gnome and carbon software production of humans and thought.
They are pursuing a cure to aging in mind and body. In essence they are
defining an existence that is endless and purposeless: a working definition
of Hell?
The book clearly provoked existing thought within me. It also helped
crystallize some of my own ideas by clearing up some mis-conceptions. I
draw a corollary to reading Supreme Court arguments and opinions. The
arguments from every side are spirited, well thought out, well referenced,
and in many cases convincing on all sides. You discover that you are not
alone in your contemplation or concern on where our scientific minds are
taking us. The enthusiasm behind all argument will vex you, as well as
entertain you. The tid-bits provided here can only tease you into
reading the book. In the end you will most likely find yourself
referencing, the book in your casual conversation on where the future lay
and how to define virtue of prosperity.
Included with this review is also other books appropriately referred to by
D'Souza
1. A Theory of Justice by John Rawls
2. The Cultural Contradictions of Capitalism by Daniel Bell
3. The Spirit of Democratic Capitalism by Michael Novak
4. Natural Capitalism by Hawken, Lovins, Lovins
5. The Extended Phenotype by Richard Dawkins
Giving
Giving
By Bill Clinton
Clinton describes, how now that he has time, his world experiences in giving as a private person. He describes many NGO’s fund raising and giving processes. He describes giving of money, time, ideas, as well as different models of giving. He claims there are three trends leading to an increase in giving, the Internet, charitable giving, democracy, the third of which speaks to the ultimate price we have paid for a free and democratic Iraq. He didn’t say that in print, but I read it in the white space between the lines. While he described a stereo-typical agenda of a republican what you really come to appreciate is the non partisan tone in his overall message, a message to take note of. I also took note of his portrayal of a healthy and flourishing economy American economy under G. W. Bush (in print); a far cry from his party dogma, especially his wife. (“this administration…”)
While inspiring, the book takes on the persona of a Clinton rant, much like the one America endured in his farewell address. And to be kind it is much like Walt Whitman. I could hear his voice in my head and actually not only enjoyed it, but also came to grips with why so many folks like him. It is a rant because of the endless list of NGOs accompanied by their short dossier. The book engages the reader to begin shopping where he can plug in. I found one worth exploring called YAL. Young Arab Leaders is commissioned to making opportunity available to young Arabs. Their goal is to out-recruit bin-Laden. Another NGO of interest to me is called Seeds for Peace, which is centered on reconciliation. There is another NGO called HOPE here in Cincinnati focused on reaching out to our neighbors in South America. I was a little curious why the two organizations I am keen in Big Brother and Boy Scouts were over looked.
Where Clinton grabbed my respect was in his personal involvement in an Arkansas foundation. THEA founded by Clinton’s friends is a NGO for the promotion of Art where Clinton is a prime contributor and when you add up the numbers, they are significant. I most appreciate the discrete portrayal of his financial role. In his role in the tsunami and Katrina relief efforts I need to quote Clinton to be sure I get it right about the non partisan nature of giving: “The Efforts George Bush and I made to help people begin again benefited us more than those who received the funds. It also gave us the opportunity to rebuild a friendship that began almost twenty-five years ago, when he was vice president and I was a young governor. We’ve had a lot of fun traveling the United States and the world. Although we still have our political differences, we can laugh about them, even when arguing…”
When it came to the environment, a topic that requires non-partisan participation, Clinton began with a few alligator tears about how he could not get much past Congress in 1993. He ran into Newt Gingrich at the time. But then he quickly and gracefully moved on to admit that timing was just not there. He then described how now an organized marketplace and numerous NGOs has proven far more effective with far more potential than his plan. He specifically describes an organized marketplace whereby consumers purchase only goods that conform to the betterment of our world as a method of giving. He praised Al Gore for his Inconvenient Truth book/movie, aimed at fifth graders in my opinion; he did not recognize his old foe Newt Gingrich. Oddly enough the next book on my reading list is Contract With the Environment by New Gingrich speaking on the marketplace’s organization to cleaning up the environment. When Gingrich was asked if he was running for president he said, “no because like Gore I cannot accomplish what needs to be accomplished for the good of America with partisan politics in the way.” It is my hope Clinton reads Gingrich’s book and recognizes that you have to put the sword back in the stone for good to be 100% genuine. His campaign activity in support of his wife says he cannot do that, which is a shame.
In any case I highly recommend this book to all walks of life it is an inspiring prescription to a world of giving, which translates to a world of peace.
By Bill Clinton
Clinton describes, how now that he has time, his world experiences in giving as a private person. He describes many NGO’s fund raising and giving processes. He describes giving of money, time, ideas, as well as different models of giving. He claims there are three trends leading to an increase in giving, the Internet, charitable giving, democracy, the third of which speaks to the ultimate price we have paid for a free and democratic Iraq. He didn’t say that in print, but I read it in the white space between the lines. While he described a stereo-typical agenda of a republican what you really come to appreciate is the non partisan tone in his overall message, a message to take note of. I also took note of his portrayal of a healthy and flourishing economy American economy under G. W. Bush (in print); a far cry from his party dogma, especially his wife. (“this administration…”)
While inspiring, the book takes on the persona of a Clinton rant, much like the one America endured in his farewell address. And to be kind it is much like Walt Whitman. I could hear his voice in my head and actually not only enjoyed it, but also came to grips with why so many folks like him. It is a rant because of the endless list of NGOs accompanied by their short dossier. The book engages the reader to begin shopping where he can plug in. I found one worth exploring called YAL. Young Arab Leaders is commissioned to making opportunity available to young Arabs. Their goal is to out-recruit bin-Laden. Another NGO of interest to me is called Seeds for Peace, which is centered on reconciliation. There is another NGO called HOPE here in Cincinnati focused on reaching out to our neighbors in South America. I was a little curious why the two organizations I am keen in Big Brother and Boy Scouts were over looked.
Where Clinton grabbed my respect was in his personal involvement in an Arkansas foundation. THEA founded by Clinton’s friends is a NGO for the promotion of Art where Clinton is a prime contributor and when you add up the numbers, they are significant. I most appreciate the discrete portrayal of his financial role. In his role in the tsunami and Katrina relief efforts I need to quote Clinton to be sure I get it right about the non partisan nature of giving: “The Efforts George Bush and I made to help people begin again benefited us more than those who received the funds. It also gave us the opportunity to rebuild a friendship that began almost twenty-five years ago, when he was vice president and I was a young governor. We’ve had a lot of fun traveling the United States and the world. Although we still have our political differences, we can laugh about them, even when arguing…”
When it came to the environment, a topic that requires non-partisan participation, Clinton began with a few alligator tears about how he could not get much past Congress in 1993. He ran into Newt Gingrich at the time. But then he quickly and gracefully moved on to admit that timing was just not there. He then described how now an organized marketplace and numerous NGOs has proven far more effective with far more potential than his plan. He specifically describes an organized marketplace whereby consumers purchase only goods that conform to the betterment of our world as a method of giving. He praised Al Gore for his Inconvenient Truth book/movie, aimed at fifth graders in my opinion; he did not recognize his old foe Newt Gingrich. Oddly enough the next book on my reading list is Contract With the Environment by New Gingrich speaking on the marketplace’s organization to cleaning up the environment. When Gingrich was asked if he was running for president he said, “no because like Gore I cannot accomplish what needs to be accomplished for the good of America with partisan politics in the way.” It is my hope Clinton reads Gingrich’s book and recognizes that you have to put the sword back in the stone for good to be 100% genuine. His campaign activity in support of his wife says he cannot do that, which is a shame.
In any case I highly recommend this book to all walks of life it is an inspiring prescription to a world of giving, which translates to a world of peace.
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