Showing posts with label ideology. Show all posts
Showing posts with label ideology. Show all posts

Thursday, April 14, 2011

In his speech on April 13, 2011 on reducing U.S. Government deficits, President Obama identified two strains that have run through the country’s political history and inform our political culture even today. “More than citizens of any other country, we are rugged individualists, a self-reliant people with a healthy skepticism of too much government. But there has always been another thread running throughout our history – a belief that we are all connected; and that there are some things we can only do together, as a nation.  We believe, in the words of our first Republican president, Abraham Lincoln, that through government, we should do together what we cannot do as well for ourselves.”  These two strains can be identified as individualism and collectivism, respectively.

I contend that collectivism enables both individual and collective security. Individual security is oriented to a person’s survival and collective security is exemplified by national defense. In his speech, the president explicitly placed individual security within the collectivist strain. “Part of this American belief that we are all connected also expresses itself in a conviction that each one of us deserves some basic measure of security.  We recognize that no matter how responsibly we live our lives, hard times or bad luck, a crippling illness or a layoff, may strike any one of us.  ‘There but for the grace of God go I,’ we say to ourselves, and so we contribute to programs like Medicare and Social Security, which guarantee us health care and a measure of basic income after a lifetime of hard work; unemployment insurance, which protects us against unexpected job loss; and Medicaid, which provides care for millions of seniors in nursing homes, poor children, and those with disabilities.”  In other words, the president rests entitlement programs on compassion for others with whom we share a society.

According to Obama, our societal connectedness with others implies a duty to contribute to the survival needs of those who cannot fend for themselves. I contend that most Americans are not likely to relate to this deontological basis that relies on the sentiment of compassion. Bluntly stated, too many of us are too selfish (or self-absorbed) to be motivated by such a normative basis. Fortunately, there is an alternative basis of individual security through collective means. Such a basis more firmly integrates the individualism and collectivism that the President identified as running through American history.

Specifically, as the president pointed out in his speech, hard luck can befall each of us; no one is immune from calamity and ruin. Perhaps the richest Americans feel confident that they will never be without their fortunes even in spite of the crushing experiences of many wealthy investors in the stock market crashes of 1873 and 1929, for instance. Yet for even the rich, and certainly for the rest of us, there is a basic psychological ease of mind in being able to have confidence that even in the worst case scenario concerning oneself, a safety net dependent only on the continued existence of the social contract (i.e., the collective) exists.  Regardless of income, we all tend to ignore the foundational peace of mind that comes with security in
survival.  Hence, each individual tends to understate the interest that he or she has in contributing to a fund even if he or she never has to use it. 

In other words, self-interest and individual security by collective means are not incompatible. Therefore, the duty of compassion need not be relied upon as a motivation. Even if I never need to draw on Social Security (taking this program as insurance to be issued only to those who need it rather than as a combination of retirement savings accounts with the wealthy retirees having a claim on at least the money they paid in), it is in my self-interest that there be such a program available to me should I be impoverished at retirement.  Even if I never need to draw on the program, the psychological security afforded to me by it through my life—and, indeed, to a society made up of people of such a psychology—makes being taxed to support the program quite valuable to me even if the value is subtle in my daily life.  In a basic sense, each of us lives with a quiet anxiety concerning one’s own survival being less than certain. Perhaps the existence-anxiety is not consciously felt by those of us who have means; the poor surely are in touch with it.  Yet we are all affected by it, like radiation, whether we know it or not.

Therefore, it is in an American’s self-interest to be taxed for survival-oriented entitlements even if the need is never actually realized; the psychological benefit begins immediately.  We are “in it together” in that each of us, being a human being, is subject to the basic existence anxiety as well as to the beneficial effects from the reduction of it. Additionally, should a person be in need of an entitlement for survival, there is that more tangible benefit too. In isolating only this benefit and calculating the probability of one’s eventual need for it, the typical American tends to understand the value to himself of individual security by collective means. This understatement of the value may involve a rather narrow selfishness that is not in one’s own self-interest, fundamentally speaking.  Besides being contrary to compassion for others in need, the narrow breed of self-interest (i.e., selfishness) is not even in one’s own interest.

Perhaps it is in each of us enjoying the same feeling that comes with having security in our survival being bolstered by social contract that we can feel community. Perhaps such a shared basis can trump even the different experiences in being rich and poor.  That is to say, community may simply be the recognition of having the same feeling or experience. In the case of individual security by collective means, the basis of community can be located in individualism rather than the less reliable motive of compassionate duty. 

Click to add a question or comment on President Obama on social programs and the deficit.

Source:

Barak Obama, “Text of Obama Speech on Deficit,” The Wall Street Journal, April 13, 2011.

Friday, April 8, 2011

On April 5, 2011, President Obama observed, “We’re going to have some very tough negotiations. And there are going to be, I think, very sharply contrasting visions in terms of where we should move the country. That’s a legitimate debate to have.” (1) He sounded very presidential in making the statement because he was taking the perspective of the nation as a whole. Furthermore, he used that vantage-point to try to keep negotiations from falling off the track. “If they can’t sort it out,” he said, “then I want them back here tomorrow.” (2) In short, he was presiding, rather than being partisan in taking a side, as he framed the situation facing the union. 

                                             Doug Mills, The New York Times                 

However, even as the president was referring to the two sides sorting the budget out as “they,” he himself was on one of the sides. That is, even though he “sought to position himself above the nitty-gritty haggling going on in Congress, which . . . limited his influence on the process” yet distanced him from any blame, his taking a side in the dispute subtly worked against his attempt to preside to hold the process as a whole together. (3) 

Michael Shear of The New York Times claims that Obama had "assumed the role of mediator in chief" in part to avoid a government shutdown. (4)  Attempting to distance himself from both sides, the president told reporters after a negotiation session on April 7th, “What I’ve said to the speaker and what I’ve said to Harry Reid is, because the machinery of the shutdown is necessarily starting to move, I expect an answer in the morning.” (5) Shear maintains that Obama's language here "suggests that he sees himself more as a bridge between the warring political parties than an active participant in the high-stakes discussions." (6) Crucially, the president's motivation may have enabled him to unwittingly compromise his own credibility, and therefore his situs from which to preside.

Shear suggests that Obama was taking on the mediator-in-chief role not only as a means to avoid a shutdown, but also, and perhaps more saliently, "to try to show that a government shutdown, if it happens, would be the result of a disagreement between the two sets of lawmakers — not a failure of his own. But there is a long-term goal as well: to convey to a restless public, and especially to moderate voters, that Mr. Obama is above the petty Washington bickering that many Americans say turns them off. That will be especially important for Mr. Obama as his re-election campaign tries to woo back independents who had become disillusioned with him." (7)  Jeff Zeleny reports that at times the president even referred "to Democrats in the third person, as though he is not the leader of the party. . . . 'Republicans and Democrats both start making a lot of speeches,' Mr. Obama said. 'Usually the Democrats blame the Republicans, the Republicans blame the Democrats.'" (8) "It remains an open question," Zeleny observes, "whether the distance he seeks to place between himself and Democrats on Capitol Hill — his own version of triangulation — will attract independent voters or antagonize members of his party." (9) Were the president's motivation more oriented all along to presiding so negotiations would have a buffer or safeguard of last resort, Obama would not have staked out a position in line with Harry Reid.

Aside from trying to distance himself from blame, a president alone can hold “the process” itself from falling off the ship of state by speaking to the encompassing interests of the country, thereby having credibility to both sides in holding them to the table. I contend that being a party to a dispute works against this presiding role that only a president can fulfill. In other words, a partisan president is an oxymoron even if the forced combination has become the bromidic default in practice. All too often, presidents have tried to have it both ways. In so doing, they have undercut their own presidencies and deprived the country of the function that only the president is in a position to accomplish. President Obama was not immune from the temptation.

Even though The New York Times reports that "Obama sought to present himself . . . as the man of reason and compromise, a disappointed father figure having to mediate a dispute between two squabbling siblings,"
USA Today points out that Sen. Harry Reid and the president objected to GOP proposals to cut funding for Planned Parenthood and the Environmental Protection Agency. (10)  At one crucial point, the president and the speaker of the House went head to head in the oval office on the Planned Parenthood funding. According to The New York Times, the president said “Nope. Zero” to the speaker, who then tried again. “Nope. Zero,” Obama repeated. “John, this is it,” the president finally said. The paper reports that "a long silence followed, said one participant in the meeting. 'It was just like an awkward, ‘O.K., well, what do you do now?’'” (11) The president was not only partial to one of the sides; he was one of them.

The presider having become the one of the combatants, he could not exactly turn around and save the process. To accomplish that, he would have needed to have been in a position of credibility to both sides. When the partisans get to "what do we do now?" partisanship trumps the public good. Lest the partisans be left to stare at each other, twiddle their thumbs, and finally leave the room, this is precisely the point at which the presider is of such value--meaning that role alone. Wading into a pool only to step out should the water get too hot in order to rescue both sides simply doesn't work; the combatants whom the "presider" had confronted will be hesitant to take the outstreached hand even as the water begins to burn. Neutrality and the resultant credibility is absolutely essential to presiding at times when the partisans have reached a dead end and the greater good is threatened because of the paralysis. A partisan president trying to have it both ways doesn't cut it.

At one point during the days of negotiations on the stop-gap budget during the second week of April,  the president took sides even as he was trying to come off as presiding in the interest of the union itself. While evincing political skill, the feat tacitly undercut his presiding credibility. Specifically, the president took a swipe at the Tea Party influence on the House Speaker keeping him from compromising. “The only question is whether politics or ideology are going to get in the way of preventing a government shutdown.” (12) Of course, this line could be interpreted as presidential, or presiding, because politics or ideology could apply to either party. However, given Reid’s charges two days later in the U.S. Senate chamber that the Tea Party’s ideology was keeping Speaker Boehner from compromising, the president had probably been maintaining a partisan script. That is, he had most likely been trying to have it both ways: seeming to preside while actually trying to further one of the sides.  

Even though striking out at the other side while seeming to preside can evince cleverness applied to political skill, and this in turn can elicit respect and perhaps even admiration, I contend that such respect is fleeting. Indeed, there is something seemly for a father figure to openly side with one of his sons against the other. How is the other to feel? Such "objectivity" amid such favoratism is clearly not good parenting. In fact, it points to a parent with a questional character and psychological constitution. The analogy of parenthood goes only so far, however, as a president is one adult among others rather than a superdad over children (hence government officials, such as those in China, who tell citizens to obey or be punished are making a category mistake in a very hauty way).

As the "what do we do now?" question proffered after the president had said "nope, zero" to the speaker demonstrates, a great opportunity cost is entailed in a presider taking sides on every quotidian matter that crosses his or her desk. A president doesn't have to take this bait. Many players are available to dive into a dispute, but only the presider stands for the whole and is therefore in a position to hold the ship itself together when the partisans lose control of the process. Neither fusing partisanship and presiding nor playing mediator-in-chief simply to distance oneself from blame generates credibility sufficient to meet what is necessary for presiding in a crisis. Without a presider credible to both sides, the ship of state in such a case is bound to hit the rocks. Therefore, a truly great presidency resists the temptation to win the day; instead, a true president speaks to the nation as a nation so as to be able to keep it from the abyss when the partisans have tied each other in knots. Lest a president throw an arm or leg into the knot, who is left to untie the self-inflicted ropes?  I’m afraid we all have forgotten what a presidential role was designed to do, and this has put the United States at great risk.  Sadly, we don't even see it.

Literally, to sit before that body or society over which one is presiding is the essential, or root, nature of a presidency. This function naturally involves protecting and enunciating the interests of the whole--hence choosing one's battles carefully and selectively. To be effective in a matter that suits the design of the office, a presider must ensure that his or her credibility is intact when it is needed in taking a stand on those few grave matters of crisis on which the system itself really does depend.  Picking fights on a daily basis wastes this sort of capital. Lest it be forgotten, less can be more.  In this case, the “less” is actually that which builds great legacies because it is in line with the nature of the office.

Click to listen to the author's podcast commentary on this essay.

Click to add a question or comment on the impact of partisanship on a president presiding.

Footnotes:

1.      Gregory Korte, “Meeting Fails to End Impasse on Federal Budget,” USA Today, April 6, 2011, p. 2A.
2.      Naftali Bendavid, Jonathan Weisman, and Carol E. Lee, "Budget Talks Head to Brink,” Wall Street Journal, April 6, 2011, pp. A6.
3.      Ibid.
4.      Michael D. Shear, "On Budget Dispute, Obama Casts Himself as Mediator in Chief," The New York Times, April 8, 2011.
5.      Ibid.
6.      Ibid.
7.      Ibid.
8.      Jeff Zeleny, "Rifts within Both Parties Test Leaders in Budget Fight," The New York Times, April 6, 2011.
9.      Ibid.
10.  Jeff Zeleny, "Rifts within Both Parties Test Leaders in Budget Fight," The New York Times, April 6, 2011; Gregory Korte, “Meeting Fails to End Impasse on Federal Budget,” USA Today, April 6, 2011, p. 2A.
11.  David M. Herszenhorn and Helene Cooper, “Concessions and Tension, Then a Deal,” The New York Times, April 9, 2011.
12.  Gregory Korte, “Meeting Fails to End Impasse on Federal Budget,” USA Today, April 6, 2011, p. 2A.

Monday, February 21, 2011

Typically, responsibility is something people working in a business presume applies to the other guy…whether a customer, supplier or distributor.  The idea is that then the other guy will pay for the problem.  That someone working in the business might have been at fault is not even considered, at least outwardly, in this mentality of otherness-responsibility.  Responsibility here means “I won’t pay; you must pay!”  It is essentially immature self-centeredness and cheapness used as a weapon.

In general terms, responsibility follows, or depends upon, there being some action thought to be required of someone.  Only if Susan is to pick Billy up at practice at 4:30pm is it her responsibility to do so.  The attribution of responsibility depends on the premise that Susan is required, or has agreed, to make the pick-up.  Were it unclear whether she or say Mary were to make it, Susan could reply to someone’s claim that she is responsible for picking up Billy that she is not responsible because it is Mary’s turn.  The attribution of responsibility depends on an agreement as to function or action coupled with a particular agent.   In the case of a businessperson telling a customer what the customer’s responsibility is, the customer could reply “I did not agree to do X so I am not responsible for it; in fact, you are responsible for it because your advertisement states that your firm does X.”  So disagreements about responsibillity are actually disagreements as to who does what.

Corporate Social Responsibility as a movement presumes that managers do X beyond their respective firm’s maximizing or satisficing shareholder returns.   The managers have a fiduciary responsibility to act in the interests of the owners of the wealth that is the corporation because it is a requirement that the managers do so.  Expanding the managers’ functions beyond maximizing returns (and minimizing cost consistent with those returns) is a matter on which reasonable people can disagree because the question is really about what sort of society we want.   However, using responsibility as a way of imposing such an expansion beyond that which has been agreed to is to use the term prescriptively—meaning that there is over-reaching involved.   I would like managers to do Y as well as X, so I declare managers to have a responsibility to do Y (as well as X).   Responsibility really isn’t the right word here because the underlying agreement on the agent-function matter has not been established.  In other words, responsibility properly follows from a given agent-function rather than institutes it.   Claiming that corporations have a responsibility to act in concert with public opinion or extant social norms—to the extent that it goes beyond the business profit calculus—is to use responsibility in a way that presumes more than is presently the case.  This use of the term is really an instance of ideological prescription rather than a reminder of an agreed social contract that has modified the corporate fidicary duty to the owners of the private property.    Using the term responsibility to create an agent-action foundation puts the horse before the carriage.

So we over-reach when we say that the bankers of the commerical and investment banks that are too big to fail have a responsibility to act within public opinion on the bailout (e.g., concerning bonuses and trading on the banks’ own books).  Even if it is in the long term interest of the financial institutions that the financial system remain viable, the managers correctly point out that their responsibility (i.e., agreed upon actions) is to act in their stockholders’ interests.   To say that the big banks had a responsibility to rescue Lehman Brothers in September, 2008 even if doing so is not in their respective stockholders’ interests is essentially to express the public’s (and government’s) wish that Wall Street step up to the plate and do what is good for the system.   To make saving a bank too big to fail part of the big banks’ responsibilities, there would have to be a requirement that they do so (unless they agree that it is part of their activities).   That is to say, there would have to be a law or regulation because otherwise there is not apt to be the sort of mutual agreement out of which responsibilities can be extracted.  A person can say, “the law says you must do Z, therefore it is your responsibility to do Z.”  The response can’t very well be “Well, the law doesn’t apply to me so it is not my responsibility to do Z because I haven’t agreed to do it.”  This is not to say that a typical manager wouldn’t like to use such a line if he or she could get away with it.  Such a self-maximizing mentality makes the legal foundation of responsibility all the more important.

On the question of whether more government regulation is needed for banks too big to fail (as well as health insurance companies), I would shelve the use of the term responsibility and look instead at the mentality of managers in general (as well as in the industry in question).   Whereas the Senate can be likened to a herd of cats instinctively unwilling to be managed, a corporation can be likened to cats circling tuna.   The tuna is their required function: to act in the interests of the stockholders (typically short term).  To expand a business manager’s function to include working against systemic risk (banking) and working so all American citizens are covered (health-insurance) is an excercise in futility unless these functions dovetail with the stockholder/profit interests.  So in addition to government regulation being necessary (as responsibility is not sufficiently viable as a constraint because the agent-action foundation has not been established),  regulators would have to monitor the companies to keep the managerial feet to the fire.  Also, the regulators would have to be monitored because of the managers would have an incentive to capture the agencies that otherwise pin in the firms.  The managers will constantly be trying to turn toward the tuna.  Whether hardwired or socialized by managerial culture to do so, managers can be expected to incessantly strive for more tuna.

As an example of such striving being at the antithesis of constraint, logging companies that sold forests to the US National Parks in the mid-twentieth century continued logging even after the managers knew the sales had gone through.  Also, the managers of the banks too big to fail fought financial regulatory reform in the wake of the banks’ own culpibility in the crisis of 2008.  In addition to reading this as presumption to excess, it can be interpreted as the allure of the tuna always there.  Even if a cat could feel guilty for having knocked over a vase on the way to the food, the animal would turn right around and fight efforts to thwart it from the tuna.  The guilt is extrinsic to the animal as it pursues the tuna.  That is to say, we impose ought on an activity that is simply an “is” to the cat.   As Hume points out, you can’t get ought from is.  The cat’s mentality is essentially to keep striving for tuna, which ideally (to the cat) means ignoring constraints (if possible).   If managers could routinely ignore the law when it is in their interest, it is futile to believe that they would be the sort of creatures that would allow themselves to be guiled into acting within the contours of social norms.  What I am getting at is this: In the CSR movement, there is far too much reliance on the good faith of managers of companies—as if they can be lured away from the tuna, even for a minute for a good cause. The CSR movement ignores the managerial nature, or mentality, or tries to modify it with insufficient force.   The mentality is far too intractable and the use of responsibility far too over-reaching for CSR to be viable in the real world. Essentially, the CSR movement, even in its beginnings in the 1950’s by a few well-meaning though naive businessmen, presumes Hume’s naturalistic fallacy as somehow invalid (meaning that extant societal norms can be taken as normative on their own basis and managers can be presumed to have a responsibility to act in sync with them even if doing so is not in the stockholders’ interest).

We should not rely on CSR or good corporate citizenship in lieu of government regulation when business firms (or entire industries) put us or our society at risk of harm.  The business calculus understands requirements, not “oughts,” and responsibility follows (rather than establishes) the requirements.   To presume otherwise is mere wishful thinking along with a dash of imposing, which is really the self projecting itself on to the world—making the world in its own image.

Friday, February 11, 2011

Joseph Natoli avers that "what we think comprises a 'good education' has already been affected by market values." He observes further, "Organizations come into being by solving problems. The problem solver is a corporate asset."  Whereas Natoli treats problem-solving and critical thinking as mutually-exclusive, I contend that critical thinking has been reduced in popular parlance problem-solving.  As in the coming of Thursday nights to be reckoned by college students are a weekend night, here too business schools have been the conduit wherein critical thinking has gained primacy over even the higher analytical and synthetic thinking activities (which are not limited to problems, and, in fact, can transcend them even in problem-solving). The schools have also been the conduit wherein the power-point presentation in business has come to the classroom, as if lecturing were merely presenting. To be sure, there is nothing out of place for problem-solving and presentations in the corporate world. All the power to them--or maybe not. Maybe this is the problem wherein corporate customs know no bound, and thus feel no self-restraint as they over-spill onto disparate domains as though spoiled children. My contention is that the easy slide onto college campuses of both critical thinking reduced to problem-solving and presentations reduced to bullet-points has conflated, in effect, vocation and education. Even worse is the baleful portent of education being reduced to training. It is bad enough when a business school becomes "commercialized" in this respect. Faculties of Liberal Arts and Science schools ought not to have appropriated so much from commercial education (and ultimately corporations) without paying sufficient attention to the negative impacts on pedegogy. Teaching by power-point, for example, may cut off higher forms of thinking; problem-solving may involve losing "why?" to "how?"

One might ask: where have the scholars in the schools of education been as corporate ways have made such inroads in academia?  Why haven't education faculties written more the funnelling effects on pedegogy of critical thinking as problem-solving and teaching as presentation?  In December, 2010, the National Council on Teacher Quality and U.S. News & World Report announced plans to grade more than a thousand schools of education. The deans of several of these schools objected that the teacher quality council’s methods for arriving at ratings were not transparent enough and were not supported by research. Course information, textbooks and admissions selectivity are, according to these officials, too superficial.  That may be so, but it could nevertheless be the case that the school officials were nervous about being graded because they had a sense that education schools had been asleep at the wheel as universities (and presumably high schools) have come unwittingly to embrace corporate practices at the expense of that which is sui generis, or unique, in education. 

Brian Kelly, the editor of U.S. News, said the push-back from education schools was evidence of “an industry that doesn’t want to be examined. These teacher-education programs are hugely important and not very well scrutinized. This is coming at a time when you have this tremendous national push for improvements in teacher quality: Who’s teaching the teachers?”  Arne Duncan, U.S. Secretary of Education, said that many, if not most, teacher-training programs are mediocre. “It is time to start holding teacher-preparation programs more accountable for the impact of their graduates on student learning." According to The New York Times, "Education schools have faced criticism frequently over the years. They are faulted by a recent wave of education advocates as emphasizing education theory over hands-on classroom training, and as graduating teachers with weak academic skills." Rather than theory, however, faculties of education schools may have been absorbed in various ideological movements at the expense of being oriented to knowledge, with K-12 teachers buying into the fads at the expense of even the basic subject-matter of their courses.

For example, process-learning was at one time the rage in some high schools. In this movement, teachers threw out their course textbooks in the mistaken assumption that the process of being educated itself proffers such content. However, focusing on learning how to read, for example, does not include a systematic coverage of a given course's subject-matter; instead, the latter is relegated in a hit or miss manner. I once heard a high school civics teacher at a suburban school brag that he had put the U.S. Government textbooks in the school basement and was instead showing movies on immigrants in the U.S. How from this "alternative teaching" approach were his students to learn about federalism and the separation of powers, as well as about the U.S. Senate, House, Supreme Court and Presidency?

Although the misguided "alternative" movements have typically been inflicted on K-12 education, the education scholars' various sidetracks have not only sidetracked the scholars themselves from developing improved teaching techniques oriented to learning a given content of knowledge; the causes that have been at the expense of education (i.e., serving other agendas) have also distracted the zealots from even being able to detect what was occurring on their own campuses, let alone putting their pedegogical expertise at the service of their colleagues, university-wide. It is almost as though college professors got bored with their respective bodies of knowledge and wandered off to pay with new toys from business. Antethetically, I contend that even in business schools the focus should be on knowedge--explaining the phenomenon of business through its various disciplines rather than becoming virtual corporations.  In other words, even business schools can be academic. The best ones are. They have not substituted what they are with what they are studying. Therefore, resisting the encroachments of corporate culture on to academia, I recommend that university faculties and academic administrators recommit themselves to the university's unique, or sui generis, situs and essence.

There is much to do on college-level pedegogy without wandering off onto other pastures.  Exams, for example, should be devised and used based on tests for their validity (is an 80% on a given test really a "good" understanding of the knowledge of the course so far?) and reliability (consistency from test to test). I suspect that test-making and grading are far from systematic, perhaps including such spurious assumptions that only a certain proportion of a class can get A's, or that A's go down to 85% because there is a gap from there to 81%. What is it about the particular test and the body of knowlege covered that makes getting a 90% a measure of excellent knowledge?  Typically, graders simply parrot the custom wherein 90-100 is an A, 80-89 is a B, etc. However, what if a test is made more difficult, or less so?  How should the percentage intervals be adjusted? In short, getting back to basics means thinking about and operationalizing what "excellent," "good," and "satisfactory" mean in the context of learning knowledge.  Compounding the problem of what a grade means is the obfuscation of grades as measurements of knowledge learned and grades as compensation for work done. I suspect the transmutation of a grade into compensation is yet another instance of corporate culture finding its way into academia via business schools. The conduit here are business school administrators and faculty who confuse themselves with what they are studying (i.e., corporations). To give a group an A for having put a lot of work into a presentation, or for being dressed well, is essentially to pay the group for its effort, rather than to measure the extent of knowledge learned. Even assessing a skill is closer to rewarding practice than measuring knowledge learned; knowledge is not skill, and vice versa. 

With a sort of cultural imperialism in full swing at business schools, the faculties of other schools cannot afford to be sidetracked or led astray without seriously undermining their own distinctive raison d'etre. Just as what is good for GM is not necessarily good for America, what commercialized business schools believe is in their interest qua corporations producing skills is not necessarily good for a university as a whole (or even for the business schools). That school of education faculties have stood by, occupied elsewhere, while business school practices and understandings have been allowed to perculate through other schools does indeed implicate the pegegogical experts.

Sources:
http://www.nytimes.com/2011/02/09/education/09teachers.html?scp=1&sq=grading%20schools%20of%20education&st=cse
http://www.truth-out.org/our-market-regime-and-public-education67474

Tuesday, February 8, 2011

The New York Times reports that President Obama urged American businesses on February 7, 2011 to “'get in the game' by letting loose trillions of dollars being held in reserves, saying that they can help create a 'virtuous cycle' of more sales, higher demand and greater profits that will put people back to work and turn around the sluggish economy.” Obama continued, “If there is a reason you don’t believe that this is the time to get off the sidelines — to hire and invest — I want to know about it. I want to fix it.” In the speech at the U.S. Chamber of Commerce, Mr. Obama said that companies have a responsibility to help the economy recover. The trouble is that responsibility is a rather vague term that can be variously applied. This is one reason why the corporate social responsibility concept could mean providing society with the products and services that are sought via the marketplace (e.g. Milton Friedman of the Chicago school) while meaning for others increasing corporate philanthropy to alleviate a society problem such as poverty. In other words, responsibility can be made concrete in various ways that can accommodate and indeed reflect the ideologies of those applying the term.

It could be predicted, therefore, that the President's application of responsibility might have differed from some of the business managers in the audience. Indeed, Obama’s suggestion that businesses could help the economy recover by spending their reserves was met, according to The New York Times, “with skepticism by some in the audience.” For example, Harold Jackson, a executive at Buffalo Supply Incorporated (a medical supply company), called the President's suggestion naive. “Any business person has to look at the demand to their company for their product and services, and make hiring decisions,” Jackson said. “I think it’s a little outside the bounds to suggest that if we hire people we don’t need, there will be more demand.” In effect, Jackson was defending Friedman's application of corporate social responsibility from that of the President's.

To President Obama's assumption that American businesses were still sitting on the sidelines, it can be asked, in what sense? The President was pointing to what he viewed as excessive retained earnings. Yet John Schoen of MSNBC reported the same day that the American manufacturing sector was “roaring back” after the recession. Schoen reports a sustained rise in factory orders in five of the last six months, which prompted manufacturers to boost hiring. The Commerce Department had reported a few days before Schoen's report on February 7, 2011 that the manufacturing sector had added 49,000 new jobs in January. Yet this is hardly a roaring comeback in terms of new jobs. Schoen reports that businesses have figured out how to make more widgets with the same number of workers, resulting in higher productivity and profits. Investing reserves in automation, for example, raises productivity by making products faster and better. According to Schoen, “Productivity is a pretty simple concept: It’s a measure of how much stuff a worker makes in a given number of hours. . . . Productivity has also risen as American manufacturers have moved to specialize in more valuable products, sending manufacturing of cheaper goods overseas where wages are lower. As the value of American-made products has risen, so too has the average level of output per worker when measured in dollar terms.” Schoen reports that according to the U.S. Labor Department, the level of output per hour worked rose by 2.6 percent in the last three months of 2010. Even if it is not in the interest of labor, such improvement is in line with the logic of business, given how business is designed and how a competitive marketplace works. Spending retained earnings beyond that which can be expected to raise productivity simply does not make sense to a business practitioner.


In general terms, the (nearly) “jobless recovery” can be seen as pointing to a major difference between the interests of business and society—the latter being represented by the President at the Chamber of Commerce. Given the nature of business enterprise in a competitive market, it is only natural for managers (and boards) to work toward (and reward) greater efficiency (i.e. productivity). Business managers thus understand or apply responsibility in this way. As per Harold Jackson's point, to hire labor beyond the optimal efficiency point in order to solve the wider societal problem of unemployment would run against a firm's telos, or goal. Ultimately, such over-hiring would compromise a company's continued viability (which could result in the loss of even more jobs).

One cannot blame a manager for thinking in line with his or her company's logic, or raison d'etre, any more than one can blame a shark for hunting for food and eating like a shark. A shark is a shark, and a business can also be viewed as a feeding machine. To posit or impose responsibilities onto a machine does not make sense either to the machine or to those who operate it (in their functioning as operators). To an operator, responsibility means operating well—which, by the way, is virtue in the ancient Greek sense. The President's use of responsibility extrinsic to a business calculus simply would not register. It would be like trying to get ought out of is. Even within business functionality, responsibility even as in fiduciary duty to the stockholders is simply translated into “try to get as much profit as possible, now or later.” In other words, ought does not compute in a business technical vocabulary. The term is extrinsic, like societal problems and goals. To come from a societal standpoint and impose “be responsible” to a business practitioner is like shouting at a deaf person. The business person is apt to simply look curiously at the person as if wondering why he is speaking in a foreign language while assuming he is being understood nevertheless. “How odd,” is perhaps the most honest response that one could give to such a display.

The difference between the President's application of responsibility and that of Jackson can also be understood as the difference between the interest of a subunit and the system as a whole. It is only natural for a part of a whole to operate in the interest of the part itself rather than necessarily the whole. The interests of the latter can thus fall through the cracks. Government regulation is an attempt to plug such cracks, but regulations, like firms, are particular. On the issue of unemployment, the societal question is whether even a fully-operational economic system can supply full employment. If not, it may be the government's responsibility to supply the surplus employment, directly or indirectly via subcontracting. Crucially, this supply must be designed such that it does not reduce the employment provided by the private sector. The surplus jobs must be functions that the private sector does not and would not address. The President's error in his speech to the Chamber of Commerce could be that he was assuming this surplus is the responsibilities of “parts” of the system (i.e. individual companies) rather than of the system itself (i.e. the government).

In sum, responsibility is a dubious concept to apply to business; the term is too vague to have much traction in discussing such vital matters as affect our economic livelihoods and the related viability of our economy. It seems to me that the priority ought to be that every able-bodied and minded adult has a job (or, otherwise, a means by which he or she can have sufficient economic wherewithal to survive in this interdependent society), whether through business, non-profits or government. Ideologies, including responsibility itself, ought to be relegated as luxuries with which we can play on the margins once full employment has become a fait accompli. That is to say, ideologies might contribute to improving full employment, rather than being depended on to reach it or allowed to keep us from it. Of course, it could be countered that ideologies are part and parcel of this entire discussion and thus cannot be dissected from it. That may well be. Even so, I submit that ideologies such as laissez faire and corporate social responsibility ought not be allowed to thwart us in how we constitute full employment as a societal fact. That is to say, we ought to direct full employment by whatever means necessary then work from there (once attained) to improve it. Simply put, for some reason, we don't treat full employment as necessary.; rather, we treat it as a goal.  "How odd," an alien from another gaxaxy might say (in its own language, of course), should one visit us and want to study us.
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