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~ USA Headed for a 5th Revolution! Why?

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Category Archives: Causes of the Revolution

Discussion of what might have contributed to the revolution. Includes information about current events and some historical events.

#399. The Donald and Charlie. Two Peas from the Same Pod. (Part #4)

17 Thursday Dec 2020

Posted by Jordan Abel in Back Asswards Thinking, Causes of the Revolution, Education Issues, Post Trump Presidency, Societal Issues, Uncategorized

≈ Leave a comment

Readers: some of the dialogue in this blog is set in the future (sometime after the year 2020). Entries addressing events in the the future assume there has been a 5th revolution in the US — the Revenge Revolution. More about the Revenge Revolution, a list of earlier revolutions and the author, Entry #1.

Periodically I write a “sense check” to assess whether in the next few years, a revolution in the US is still possible or whether the entire exercise is based on a statistical aberration — i.e., a roughly 50-year cycle between major upheavals in the US.  Most recent sense check, ENTRY #387.   Next Sense Check will be Entry #400.

Some of the entries are part of a series.  Several series are available as easy-to-read booklets for download:

  • Coming technology tsunami and the implications for the US, Tech Tsunami Booklet with Supplement
  • Trump Supporters Brainwashed? A series discussing why Republics have abandoned basic principals, Are Trump Republicans Brainwashed 2020Q1  Related article published 10/07/20.  Op-Ed piece in NYT about how people bend their thinking to justify beliefs.  Example is Fox News Information about Covid-19, 20 10 07 Fox News Still in Coronavirus Bubble aka Brainwashed
  • Who took out the Donald?  Who/what groups are most likely to “take out” Trump? The booklet was written early in the Trump administration but still worth a read. Who Took Out the Donald Entries with Update
  • Revenge Revolution — description of what form the revolution might take, 20 01 07 Start of Revolution
  • Working with Lee Iacocca after he left Chrysler, 2019Q3 Iacocca Personal Observations. 
  • GM EV1 — behind-the-scenes events affecting development and introduction of the GM EV1, the first modern electric vehicle. 2020Q1 GM EV-1 Story Behind the Story Booklet

Beginning #378 the entries began focusing on a post-Trump administration and a post-Coronavirus world.  We’re headed to a post-Trump world and post-COVID world, even if a ways away.  The premise of a 5th US revolution in the 2020’s decade has not changed.  Comments and suggestions welcome.

ENTRY #399: The past few entries have attempted to understand the cause of and whether to attempt to solve cognitive dissonance among many Trump supporters. The issue is not about different political philosophies. A democratic society should have at least two strong political parties. The difference is trying to understand why so many Trump supporters are willing to sacrifice the basic tenets of democracy for a known wannabe autocrat.

What does Trump offer that has created a cult-like following? When one steps back and analyzes the data, the Trump cult is getting nothing in return for following the Donald. So why follow the Donald? What is the appeal; what is the quid-pro-quo?

Despite no obvious benefit, at least to rational thinkers, why does the Trump cult do whatever the Donald wants? The Trump cult supports his actions even when the actions are contrary to the best interest of the followers.

It’s as if Trump is like the Great Oz, “I say the coronavirus is like the flu. You don’t need a mask.” And the followers don’t wear a mask. Or the Great Oz says, “Send money to me to help fight a stolen election.” And the cult sends money. Or the Great Oz says “Support a gigantic tax break for the wealthy and the benefits will trickle down to you.” And the cult believes in voodoo economics, even though the Federal deficit has ballooned and the children/grandchildren of the cult will be paying for the wealth transfer.

In some ways Trump reminds me of Charlie. Reminds me not of Charlie Tuna, although Trump’s body profile looks similar. But reminds me of Charlie Manson. Often times Trump seems as maniacal and crazy as Manson.

If you think the comparison to Manson is extreme, consider Trump’s actions to suppress efforts to control the pandemic. Also, consider the claims about the White House intentionally distorting info from CDC re the severity of the virus. Now, count the number of unnecessary deaths by Trump’s actions and compare the number to Charlie’s death toll. Still think the comparison is unfair?

As far as members of the cult, at least the women who hung around Charlie Manson, got satisfied sexually. Those who hang around Trump only get screwed economically.

How does the US society begin to address and re-educate members of the Trump cult? I don’t think we should waste our time. The cult members have been brainwashed and the major protagonist will fade away by late spring 2021. Unfortunately, the essence of Trump’s message may not fade as quickly.

Post inauguration, Trump will act like many bullies when their perceived power is taken away. He will melt like the Wicked Witch of the West. Oh, Trump might hold a few pep rallies and generate some noise, but nothing of any lasting consequence.

If Trump understands one thing well, that one thing is how to take other people’s money. When he was in debt for the failing casinos, he declared bankruptcy and walked away leaving the banks with the debt. Since no US-based bank would deal with him, beginning in the late 1990’s, early 2000’s Trump turned to sources outside the US to fund purchases of golf courses and hotel properties. While in Charlotte, NC to visit one of the Trump golf courses, Don, Jr. bragged that the Russians had become Trump’s primary funding source. And you still wonder why Trump’s nice to the Russians?

A recent example of using other people’s money was when it became clear that he was likely to lose the re-election to Biden. At that point Trump formed a PAC that was promoted to help him get re-elected in 2024 and to help finance the legal cost of lawsuits associated with what Trump kept promoting as the “rigged” 2020 presidential election.

The reality is the PAC is Trump’s new piggybank. Donors likely didn’t read the fine print. After a small percentage is allocated to the RNC and some for legal costs for the frivolous lawsuits, Trump gets to keep the rest. The money will stay in the PAC although Trump will control the disbursement of funds, including use for personal expenses. Keeping funds in the PAC should protect the PAC from creditors, who will likely force Trump into bankruptcy when the $400+ million loans on his properties come due in the next few years.

Whether the PAC funds can be protected from judgements for fraud is problematic. The State of New York has been investigating the Trump organization and Trump personally for tax fraud and possibly other crimes. The investigations may lead to indictments soon after Trump leaves office. State crimes are not overridden by a presidential pardon. Oops.

To convince cult members he will keep promoting his message, Trump has claimed he will create a new cable channel once out of office. The claim seems to be another ploy to attract funds from the ne’er-do-well supporters, who can least afford it. Trump will need an outlet since most credible media, save a couple of bloviators on Fox, have started focusing on the Biden administration’s plans to address mounting economic and social problems.

Like Charlie Manson’s followers, some of Trump’s supporters will stay in the cult no matter the circumstances or the evidence against the cult leader. Most followers, however, soon will migrate to another fringe Republican candidate who probably will be more charismatic than Trump but spew the same BS.

The biggest problem for the Republican Party is Trump’s legacy and how to recover from it. The damage to the credibility of government and the democracy caused by Trump’s corruption, cronyism and complacency has been significant.

For the Republican Party in particular, how long will a substantial portion of the Party believe the dis-information and fantasies, whether promoted by Trump or a follow-on Trump? How can the Republican Party put forth a credible platform of governance beyond “Just Say No” to whatever Biden or Democrats propose? Without a more reasonable platform the appeal of the Republican Party will continue to shrink.

A shrinking and ineffective Republican Party could become a major contributor to a 5th US Revolution, aka the Revenge Revolution? On the optimistic side it will take 10-15 years to repair the damage to the Federal agencies and the credibility of the government caused by Trump and complicit Republican Senators, Representative and state governors. During the period of repair, the chances of unrest increase. Trump cultists could be persuaded to revolt, whether or not Trump is still around.

For many years a small group in Texas has promoted secession. That group and the Trump cultists appear to share many of the same characteristics. The secession movement could move beyond the obvious candidates of former Confederate states. A broader secession movement could find support in the upper Midwest – for example in the northern part of Lower Michigan – as well as a number of other Midwest and mountain states.

The secession movement could grow even stronger if Biden steps down after one term, which seems likely, and Kamala Harris then is elected president. Given the harassment and death threats by Trump loyalists of the female elected officials, especially in Michigan – Governor, Attorney General and Secretary of State – the Trump loyalists likely would consider stronger action against a Black female president.

As noted periodically in these entries, a well-coordinated widespread guerilla-warfare like attack could cause significant damage to property and result in a number of deaths. Think of Charlie Mason’s Helter-Skelter attack but on a much larger scale. The disruption would create significant angst among the general population. Once the guerilla warfare started, unless the federal and state governments quickly quelled the attacks, the country could start to spin out of control.

More about the possible Revenge Revolution in entry #400.

#398 Overcoming Cognitive Dissonance of Trump Supporters (Part 3)

06 Sunday Dec 2020

Posted by Jordan Abel in Causes of the Revolution, Education Issues, Post Trump Presidency, Societal Issues, Uncategorized

≈ Leave a comment

Readers: some of the dialogue in this blog is set in the future (sometime after the year 2020). Entries addressing events in the the future assume there has been a 5th revolution in the US — the Revenge Revolution. More about the Revenge Revolution, a list of earlier revolutions and the author, Entry #1.

Periodically I write a “sense check” to assess whether in the next few years, a revolution in the US is still possible or whether the entire exercise is based on a statistical aberration — i.e., a roughly 50-year cycle between major upheavals in the US.  Most recent sense check, ENTRY #387.  

Some of the entries are part of a series.  Several series are available as easy-to-read booklets for download:

  • Coming technology tsunami and the implications for the US, Tech Tsunami Booklet with Supplement
  • Trump Supporters Brainwashed? A series discussing why Republics have abandoned basic principals, Are Trump Republicans Brainwashed 2020Q1  Related article published 10/07/20.  Op-Ed piece in NYT about how people bend their thinking to justify beliefs.  Example is Fox News Information about Covid-19, 20 10 07 Fox News Still in Coronavirus Bubble aka Brainwashed
  • Who took out the Donald?  Who/what groups are most likely to “take out” Trump? The booklet was written early in the Trump administration but still worth a read. Who Took Out the Donald Entries with Update
  • Revenge Revolution — description of what form the revolution might take, 20 01 07 Start of Revolution
  • Working with Lee Iacocca after he left Chrysler, 2019Q3 Iacocca Personal Observations. 
  • GM EV1 — behind-the-scenes events affecting development and introduction of the GM EV1, the first modern electric vehicle. 2020Q1 GM EV-1 Story Behind the Story Booklet

Beginning #378 the entries began focusing on a post-Trump administration and a post-Coronavirus world.  We’re headed to a post-Trump world and post-COVID seems possible, if a ways away.  The premise of a 5th US revolution in the 2020’s decade has not changed.  Comments and suggestions welcome.

ENTRY #398: The previous two entries discussed the seeming inability to connect two dots of 1/3 or more of the American voting population. Well, let’s make that the inability to understand one dot.

I vowed that entries would look past the election and Trump’s absurd claims of voter fraud. But what I cannot look past is the continued cognitive dissonance of Trump supporters.

Trump is the quintessential con man.  How many honest real estate developers do you know? The con man recently formed a PAC, with funds supposedly to be used for: (i) legal fees to fight fraud in the 2020 election; (ii) his re-election bid in 2024. To help fund the PAC, Trump sent a series of emails and letters to likely supporters. Since the election, roughly one month ago, how much has Trump raised for the PAC, mostly small donors? Not $10 million, not $50 million, not a $100 million but $200 million plus and counting.

What are the PAC guidelines for using the funds? A portion goes to the RNC, maybe 25%. The rest can be used by the Donald however he wants, including paying himself a salary, using funds for living expenses, legal fees, clothing, haircuts or whatever.  Folks, the con man is not going to run again.

Then, why did he start the PAC?  Dollars to donuts the PAC money is legally separated from Trump’s personal funds. If so, Trump created a separate source of money protected from future lawsuits against him.

In the next 12-18 months the Trump organization is faced with repayment of loans apparently totaling more than $400 million.  Many of the Trump properties were bleeding cash before the pandemic.  Likely worse now.  The problem for Trump is he personally guaranteed most, if not all the loans.  Thus, whatever personal assets he owns are at risk.

Will Trump pay?  Of course not.  He never pays his debts.  When the loans are due, he’ll claim the lenders are out to get him and his only way to get even with the deceitful creditors is to declare bankruptcy…yet again.  Although in bankruptcy he might lose rights to various properties, what does he care?  He’ll walk away without debt.  He also won’t be broke since he’ll have access to $150 million of PAC money. 

If he declares BK, won’t he lose Mar-a-Lago?  Probably not.  Under Florida law one’s “homestead property” is considered an asset exempt from the bankruptcy trustee.  Now you understand why he moved to Florida from New York, which has no protection provision.  So, with all the financial shenanigans, Trump still walks away with no debt, Mar-a-Lago and $150 million.  By any standard a very good con.

In the end, who got conned? Lenders, although most were foreign, especially Russian, and may have been repaid in other ways while Trump was president, and his supporters, many of whom have very limited funds.  (Take heart.  The State of New York seems to be readying a tax fraud case against Trump and family.  Assets exempt under BK law may not be exempt under a tax fraud case.)

Why can’t people understand the obvious? Forget the part about declaring bankruptcy, and just consider Trump asking for money.  He’s claiming the money would be used for his re-election bid. Such a claim should be enough by any standard to raise questions about his credibility.  Plus, there was ample media coverage, save possibly Fox, that most of the contribution to the PAC could be used any way Trump so desired, including personal expenses.

In the US, there have always been con men.  Recall part of Lincoln’s quote, “…you can fool some of the people all the time…”  With so many people are falling for the con, including supposedly educated people, how are we as a society to avoid such a huge con in the future?

In the last entry I suggested children could be taught to think critically by expanding educational focus from STEM to SMELT – Science, Mathematics, Engineering, Liberal-arts, and Technology. SMELT classes would start as early as possible, including kindergarten.

What do we do to educate adults during the years when children are in school and learning to think critically?  What about the adults who cannot understand one dot, let alone connect two or three dots? I confess, I don’t have any concrete suggestions.  Adults are not required to go back to school. As long as no laws are broken, adults are pretty much free to do whatever they want.

With these adults, logic does not seem to work. If you haven’t done so, try and reason with a Trump supporter. Evidence and facts do not matter. Even though the very same behavior would be excoriated if Trump were a Democrat, his followers fully support Trump’s actions as a Republican.

An alternative approach to education is to form another party with values similar to the pre-Trump Republican Party. Maybe values of a pre-Reagan Republican Party.  Reagan began the mantra that government is the problem, not the solution.  Imagine if Reagan had been president during WWII. 

The new Republican Party would appeal to disenfranchised Republicans, many independents and even some Democrats.  A concern is how long before the new party can became a formidable political force.  My initial guess was 4-5 presidential elections.  Then on second thought, I changed to maybe 1-2 presidential elections if the new party were formed around the Lincoln Project. 

A democracy needs at least two strong parties. Right now the US has a cult party, aka Trump Republicans, and a Democratic Party, which has a large umbrella covering a mix of ideas and some anti-Trump Republicans. A new “Lincoln Party” would be a draw for moderates, whether leaning left or right.

Is there a different way to break the Trump cult? The Biden/Harris administration’s commitment to work with both parties will be a start. My cynical side suggests Trump supporters are so brainwashed the Biden/Harris approach will fall on deaf ears.

People who belong to cults are not logical. Even acknowledging Biden as a legitimate president would require the Trump cult to admit a mistake. Since Trump never admits a mistake, why should the Trump cult members admit a mistake?

Okay, enough for this entry. A new “Lincoln Party” seems to be a reasonable solution to rebuilding a democracy that has two viable parties. If you have another idea, please let me know. I’m all ears.

#393 Can One Person Destroy a Large Organization or Country?

06 Tuesday Oct 2020

Posted by Jordan Abel in Causes of the Revolution, Uncategorized

≈ Leave a comment

Readers: some of the dialogue in this blog is set in the future (sometime after the year 2020). Entries addressing events in the the future assume there has been a 5th revolution in the US — the Revenge Revolution. More about the Revenge Revolution, a list of earlier revolutions and the author, Entry #1.

Periodically I write a “sense check” to assess whether in the next few years, a revolution in the US is still possible or whether the entire exercise is based on a statistical aberration — i.e., a roughly 50-year cycle between major upheavals in the US.  Most recent sense check, ENTRY #387.  

Some of the entries are part of a series.  Several series are available as easy-to-read booklets for download:

  • Working with Lee Iacocca after he left Chrysler, 2019Q3 Iacocca Personal Observations. 
  • GM EV1 — behind-the-scenes events affecting development and introduction of the GM EV1, the first modern electric vehicle. 2020Q1 GM EV-1 Story Behind the Story Booklet
  • Coming technology tsunami and the implications for the US, Tech Tsunami Booklet with Supplement
  • Trump Supporters Brainwashed? A series discussing why Republics have abandoned basic principals, Are Trump Republicans Brainwashed 2020Q1  Related article published 10/07/20.  Op-Ed piece in NYT about how people bend their thinking to justify beliefs.  Example is Fox News Information about Covid-19, 20 10 07 Fox News Still in Coronavirus Bubble aka Brainwashed
  • Who took out the Donald?  Who/what groups are most likely to “take out” Trump? The booklet was written early in the Trump administration but still worth a read. Who Took Out the Donald Entries with Update
  • Revenge Revolution — description of what form the revolution might take, 20 01 07 Start of Revolution

Prelude to the current series of entries: I’ve concluded Trump is a lunatic and the administration filled with lapdogs save a couple of people at CDC.  Instead of wasting time commenting on actions by Trump, I thought it more productive to begin discussing what happens in the US once the coronavirus is more under control.  #378 began the series. At this point not sure how many entries.  Comments and suggestions welcome.

ENTRY #393: Note: This entry was written before the White House announced president Trump tested positive for Covid-19, then hospitalized.  The content of the entry continues to be relevant, whether or not Trump recovers and whether or not the president is a Republican or Democrat.  However, behavior of the current president is the issue at hand.  As you read the entry mentally substitute “Trump administration” for “General Motors.”  

For those who think one person cannot destroy a large, seemingly well-structured organization with significant checks and balances, think again.

A lesson we can learn from industry is how one person destroyed what was the largest, most consistently profitable organization in the world, General Motors. If you are not familiar with the history of GM, between roughly 1920 and the early 1980s, GM could have been the US Treasury – GM was so profitable it might as well have printed money.

As a company, GM was enormously large and yet, maintained very high profit margins on many of its products.  For example, variable profit on some car and truck models was 60%, and in some cases even higher.

How did GM become so profitable, even remaining profitable during the Great Depression? The key to GM’s success was the leadership of Alfred P Sloan.  Under Sloan’s leadership, General Motors operated following three basic tenets.

  1. Set clearly defined roles for operating divisions – Chevrolet, Buick, Cadillac, etc.  The products of each division were distinct in appearance and content.  There was no confusion, for example, between a Chevrolet and a Buick.
  2. Hire highly qualified people.  Sloan viewed his role as providing general direction and then getting out of the way and letting the managers do their job.  Under Sloan, the divisions operated with an incredible amount of autonomy.
  3. Strict adherence to a simple but powerful financial metric.  The metric allowed GM to make money even when sales declined sharply. Inside GM, the metric was known as “standard volume.”  Standard volume was equal to 70% of rated capacity.  If an assembly plant had rated capacity of say 200,000 units per year, standard volume was 140,000.  Budgets were established so the operating unit would break even at 70% of rated capacity. In addition to ensuring GM would be profitable during recessions, the standard volume metric allowed GM to become even more profitable as the economy improved.

What changed at General Motors? Why is GM no longer the juggernaut in the auto industry?  In 1980, then GM chairman Thomas A Murphy retired and was replaced by Roger B Smith.  Unlike Murphy, who was warm, generous and unassuming, Smith was cold, rude and narcissistic. Smith seemed to suffer from an inferiority complex.  He was physically short, had a ruddy complexion and a high voice. Inside GM, at least on the financial staff, Smith was known as “Squeaky.”

During Smith’s autocratic reign of terror – 1980-1990, he made every effort to reshape, some say destroy, most every aspect of what had made General Motors so profitable. My view, having worked on the financial staff for a good portion of my career – Smith was a wannabe Alfred P. Sloan. 

Sloan was, and still is, highly regarded worldwide.  Sloan’s name is associated with among other things academic institutions (The Sloan School at the Massachusetts Institute of Technology), Sloan-Kettering Hospital in New York, and the Sloan Foundation, which makes grants primarily to support original research and education related to science, technology, engineering, mathematics, and economics. 

 Despite experiencing Smith’s management first hand and now 30 years following his retirement, I have yet to understand why he took the approach he did.  One of the most baffling strategies was to divert funds from product development – one of the keys to GM’s money machine – to buy companies that added little or no value to GM.  Electronic Data Systems (EDS) was outside GM’s core competency.  Same with Hughes Aircraft.

Smith also eliminated the standard-volume budget and the discipline associated with that budget.  In addition, he allowed the operating divisions to begin to encroach on each other’s position in the marketplace.  Smith viewed as unnecessary the cost to keep Buick distinct and separate from say Chevrolet.  As a result, Smith began to force the operating divisions to share parts and platforms. 

Sharing, according to Smith, would save money.  And, the customer would never notice those parts that were shared.  Well, guess what?  The customer did notice. One of the most memorable was the disclosure that a more expensive Oldsmobile shared the same engine as the less expensive Chevrolet.  The Oldsmobile was labeled a “Chevmobile.” 

Smith also reorganized GM.  Rather than being an autonomous operation, the divisions were grouped.  The groups were: (i) Chevrolet, Pontiac and GM of Canada, aka CPC; (ii) Buick, Oldsmobile and Cadillac, aka BOC.  (The grouping is not dissimilar to how the Trump administration has grouped staffs at say CDC.) 

Two examples associated with the reorganization.

  1. Because of my job at the time, I was part of a small group interviewed about whether the company should be reorganized and, if so, how.  It was obvious during the interview by McKinsey & Co that the interview was perfunctory; my opinion didn’t matter and the decision to reorganize had already been made.

At the implementation kickoff, the “justification” for the reorganization was presented to about 100 executives.  Following the general meeting we broke into groups.  There were 10 people in the new Buick-Oldsmobile-Cadillac group.  At the beginning of the BOC group meeting, I asked a simple question to the head of the new BOC group, “What are we trying to accomplish with the reorganization?”  After what seemed to be an eternal pause, the executive responded, “Let’s get on with the implementation.” 

During that meeting and later, no one was able to answer my simple question.  (For reference, at the time Buick Division, which was by no means GM’s largest operating division, generated more revenue than say the worldwide operations of Goodyear Tire.  Why combine so many functions with another operation whose products have been distinct for decades?)  

The result of Smith’s reorganization and other actions was GM lost market share and significant earning power. Between 1980 and 1990 GM market share declined 10 points — ~45% to 35%.  The loss equates to far more than all Honda’s sold in the US every year. 

In 1992, just two years after Smith retired, GM was technically bankrupt.  GM avoided declaring bankruptcy by borrowing money from its finance subsidiary, GMAC.  GM has never fully recovered from Smith’s reign of terror.  While the current management has made impressive gains in product design and innovation, GM remains a mere shadow of its former self.   

2) Smith also demanded loyalty. Smith’s mantra was simple, “My way or the highway.”  To ensure loyalty and no dissent, Smith handpicked the staff that would support his decisions, whether or not the decisions were in the best long-term interest of General Motors and shareholders. He also tried to pack the Board of Directors with “yes” men. 

One problem, when Smith bought EDS, Ross Perot became GM’s largest individual shareholder and joined the Board.  Perot was good at asking tough questions.  Smith became so irritated he paid Perot $750 million for his stock (~$1.8 billion in 2020$) and kicked him off the Board.

What can the US learn from the experience of Smith as CEO of General Motors?  First the similarities in personality and management style between Smith and Trump are remarkable.  Many of the approaches taken by Trump to “break the mold in Washington” are similar to what Smith did with General Motors.

And the results of Trump’s actions are very similar to what happened to GM. Trump eliminated significant revenue potential to the federal government with a 2017 tax cut.  The tax cut created no jobs and ended up being a transfer of wealth from the middle class to the wealthiest Americans. Plus, the tax cut cost the government revenue and, as a result, the Federal deficit balooned.

Like Smith, Trump demands absolute loyalty, surrounding himself only with people who bend to his wishes.  Those who challenge Trump are broomed out. 

C’mon, you say, “How can you even compare GM to the Federal government?  GM was large but not that large.” 

“Do you really believe one person can ruin a country? A country that has been a beacon worldwide for openness, honesty and integrity? A country that was founded on the principles outlined in the Ten Commandments. Do you really think it is possible one person could bring it to ruin?”

My short answer is, “yes.” Yes, a country can be ruined by one person. And the US is on its way to ruin unless the approach to governing is changed quickly.  If there were any question about how Trump’s radical approach to governing is negatively affecting behavior in the US, then one should look no further than the so-called stalwarts of the Republican Party. 

These so-called stalwarts, who claim to believe in the core values of Christianity.  Who claim to believe in duty, honor, country.    

Duty, honor, country?  No, according to Trump, that’s only for fools.  Be proud, says Trump, that before Justice Ginsburg’s body was cold you Republicans were able to disregard what you claimed was necessary when Obama was President. Be proud you are able to throw away your ethics and ignore all teachings of your supposed religion.

So, stalwart Republicans, with all that kowtowing, what did you get in return?  What you got was a Supreme Court Justice nominee who will disregard what is good for the country.  Disregard what you claim you stand for and disregard what’s good for the American people.

Instead this nominee for SCOTUS will support laws that give more power to a few that already have too much power.  This nominee will vote to overturn the Affordable Care Act, and then replace it with, well, nothing.  And who will suffer?  The very constituents you supposedly represent.

When history books are written about the end of the great democratic experiment in America, the text won’t assign all the blame to Trump.  In fact, most of the blame won’t fall on Trump.  Trump’s personality and style has been familiar to anyone who spent one iota of time searching. 

Most of the blame will fall on the weak-kneed Republican who enabled his behavior.  So-called adults who were afraid of some tweet from Trump.  So-called stalwart Republicans, go look in the mirror and ask yourself, “With such behavior am I worthy of any recognition or reward?  Am I worthy of being called an honorable citizen?”  And then ask yourself, “After all that kowtowing to Trump’s whims, what did I get for my constituents in return?” 

#391 They’re Coming to America. Well, Not Any More. (#13 in Series)

30 Sunday Aug 2020

Posted by Jordan Abel in Causes of the Revolution, Gov't Policy, Post Trump Presidency, Societal Issues

≈ Leave a comment

Readers: some of the dialogue in this blog is set in the future (sometime after the year 2020). Entries addressing events in the The future assume there has been a 5th revolution in the US — the Revenge Revolution. More about the Revenge Revolution, a list of earlier revolutions and the author, Entry #1.

Periodically I write a “sense check” to assess whether in the next few years, a revolution in the US is still possible or whether the entire exercise is based on a statistical aberration — i.e., a roughly 50-year cycle between major upheavals in the US.  Most recent sense check, ENTRY #387.  

Some of the entries are part of a series.  Several series are available as easy-to-read booklets for download:

  • Working with Lee Iacocca after he left Chrysler, 2019Q3 Iacocca Personal Observations. 
  • GM EV1 — behind-the-scenes events affecting development and introduction of the GM EV1, the first modern electric vehicle. 2020Q1 GM EV-1 Story Behind the Story Booklet
  • Coming technology tsunami and the implications for the US, Tech Tsunami Booklet with Supplement
  • Trump Supporters Brainwashed? A series discussing why Republics have abandoned basic principals, Are Trump Republicans Brainwashed 2020Q1
  • Who took out the Donald?  Who/what groups are most likely to “take out” Trump? Who Took Out the Donald Entries with Update
  • Revenge Revolution — description of what form the revolution might take, 20 01 07 Start of Revolution

Prelude to the current series of entries: I’ve concluded Trump is a lunatic and the administration filled with lapdogs save a couple of people at CDC.  Instead of wasting time commenting on actions by Trump, I thought it more productive to begin discussing what happens in the US once the coronavirus is more under control.  #378 began the series. At this point not sure how many entries.  Comments and suggestions welcome.

ENTRY #391: At the end of Entry #390 I wrote the next entry would be a discussion about actions to affect climate change.  Wait one more entry.

I decided to change the topic because of two events.  One was this past week’s reality show claiming to be the Republican National Convention.  The reality show pointed out just how far the country has regressed from its core principles, especially the Republican Party.  Ethics?  Why bother?  Respect for others?  Why bother?  Self-respect?  Why bother?  Duty, honor, country?  What’s that?  If I’m not the center of whatever is occurring, then I’m not interested.

Maybe more telling, at least for me, about how far the country has strayed, was the second event that occurred this past week.  While walking back from the coffee shop, I finished a podcast and decided to finish the walk listening to some music.

The song that first played I’d heard many times before but not recently.  For some reason, this time I paid more attention to the words and less to the music.  By the end of the song I was really sad and asked myself, “What have we done to this country?  What can we do to return to the country to what it once was?”

The song was Neil Diamond’s “America.”  Below are the words.  Read them carefully and as you do, think about the America being described in the song – written in the mid-1980’s – and compare that America to the America of today.

With Trump we have a president and administration with policies that are the polar opposite of the America described in the song.  If Trump and supporters want to make America great again, they should start by studying the words of “America.”

“America” by Neil Diamond

Far
We’ve been traveling far
Without a home
But not without a star
Free
Only want to be free
We huddle close
Hang on to a dream

On the boats and on the planes
They’re coming to America
Never looking back again
They’re coming to America

Home, don’t it seem so far away
Oh, we’re traveling light today
In the eye of the storm
In the eye of the storm

Home, to a new and a shiny place
Make our bed, and we’ll say our grace
Freedom’s light burning warm
Freedom’s light burning warm

Everywhere around the world
They’re coming to America
Every time that flag’s unfurled
They’re coming to America

Got a dream to take them there
They’re coming to America
Got a dream they’ve come to share
They’re coming to America

They’re coming to America
They’re coming to America
They’re coming to America
They’re coming to America
Today, today, today, today, today

My country ’tis of thee
Today
Sweet land of liberty
Today
Of thee I sing
Today
Of thee I sing
Today

Do yourself a favor, go back and read the words again, slowly.  Then ask yourself, “How far have we as a country strayed from our core principles?”  Now ask yourself, “What am I and what are we going to do to make America the country described in the song ‘America’?”

#390: Bring in the Repair Crew to Fix Trump’s Damage (#12 in Series)

23 Sunday Aug 2020

Posted by Jordan Abel in Causes of the Revolution, Education Issues, Gov't Policy, Post Trump Presidency, Societal Issues

≈ Leave a comment

Readers: some of the dialogue in this blog is set in the future (sometime after the year 2020). Entries addressing events in the The future assume there has been a 5th revolution in the US — the Revenge Revolution. More about the Revenge Revolution, a list of earlier revolutions and the author, Entry #1.

Periodically I write a “sense check” to assess whether in the next few years, a revolution in the US is still possible or whether the entire exercise is based on a statistical aberration — i.e., a roughly 50-year cycle between major upheavals in the US.  Most recent sense check, ENTRY #387.  

Some of the entries are part of a series.  Several series are available as easy-to-read booklets for download:

  • Working with Lee Iacocca after he left Chrysler, 2019Q3 Iacocca Personal Observations. 
  • GM EV1 — behind-the-scenes events affecting development and introduction of the GM EV1, the first modern electric vehicle. 2020Q1 GM EV-1 Story Behind the Story Booklet
  • Coming technology tsunami and the implications for the US, Tech Tsunami Booklet with Supplement
  • Trump Supporters Brainwashed? A series discussing why Republics have abandoned basic principals, Are Trump Republicans Brainwashed 2020Q1
  • Who took out the Donald?  Who/what groups are most likely to “take out” Trump? Who Took Out the Donald Entries with Update
  • Revenge Revolution — description of what form the revolution might take, 20 01 07 Start of Revolution

Prelude to the current series of entries: I’ve concluded Trump is a lunatic and the administration filled with lapdogs save a couple of people at CDC.  Instead of wasting time commenting on actions by Trump, I thought it more productive to begin discussing what happens in the US once the coronavirus is more under control.  #378 began the series. At this point not sure how many entries.  Comments and suggestions welcome.

ENTRY #390:  One of the more positive events the last couple of weeks was Snoopy’s birthday. Yes, that Snoopy.  You know the great philosopher whose many friends and admirers include Lucy, Woodstock and Linus.

More seriously, the past weeks have been mind-wrecking. Coronavirus aside, Congressional Senate Republicans have all but disappeared from the landscape. Based on different credible news sources, no Republicans in the Senate, especially Mitch McConnell, were involved in the now stalled negotiations to extend government support for those whose economic well-being has been hit hard by Covid-19.

Trump became the de facto Republican negotiator. The outcome was no surprise.  Trump has proved repeatedly – in private and public life – to be one of the world’s worst negotiators. He maintained that pattern during these negotiations.

Always wanting someone to blame rather than working with someone to solve a problem, Trump and his brain-dead band of Munchkins refused to cut a deal with house Democrats.  Trump claimed the Democrats were at fault even though the House passed phase two of an economic recovery package in May.

McConnell, who may star in the sequel to “Dr. No,” refused to have any hearings on the House-passed bill or participate in negotiations.  Ah, isn’t it wonderful to play the fiddle while Rome burns?  Dilbert recently coined a new Covid-19 phrase that could be applied to McConnell’s behavior, “What a maskhole!”

So as McConnell fiddled instead of negotiating, Trump again declared himself king.  This time the self-declared king signed several half-baked Executive Orders that will do nothing to help those in need but seemingly will reinforce Trump’s image with his base as “solving the economic recovery problem.”  If his base only understood as much about economics as most 4th graders understand.

One half-baked Executive Order of his was to suspend Social Security withholding tax.  First, people who are working are not the bulk of the problem.  People who aren’t working or working very little need economic assistance. At least those working have an income.  Second, the withholding tax was to be “suspended” not eliminated.

As president, Trump has no power to change the tax law, especially with an Executive Order. So what does a “suspended withholding tax” mean? The money that should have been withheld from paychecks needs to be repaid. Thus, Trump’s Executive Order gave workers an opportunity to loan themselves money that they must repay.  Let me repeat, if his base only understood as much about economics as most 4th graders understand…

Suspending withholding tax seems fair, right? Mmm, maybe not.  Let’s see, workers get a loan they must repay while business owners get a loan from the federal government to pay workers and use for other expenses, but that loan doesn’t have to be repaid.  No such gift for the workers.

If you completed a survey of how many Trump supporters understood how Trump’s Executive Order really affected them, I’ll bet the total would be less than 5%. Why they continue to support actions by Trump that are not in their economic best interest is beyond me.

Trump’s nonsensical behavior and the abdication by Republican Senators of any responsibility to help the public does not bode well for the US post- 2020 election.  A Trump re-election would likely result in ever more dictatorial tirades. Some of his claims of late, as one reporter noted wryly, would make North Korea’s Kim Jung-un blush with embarrassment.  Attorney General Bill Barr seems equally bent on promoting an authoritarian-led Trump regime.

If Trump is re-elected and Republicans hold the Senate, another US civil war seems certain.  Yes, civil war with armed conflicts and attacks on segments of society deemed to be “Never Trumpers.”

If Biden wins, he and Kamala Harris will have an incredibly tough road ahead, even if the Democrats win back the Senate. The damage done by Trump, Barr, Pompeo and their cronies can be repaired, but…

Think of how long it takes to repair something – house, car, relationship – compared to the time it takes to cause the damage. What’s the time difference between time to break and time to repair? To repair takes probably ten times as long, or longer.

So, if Trump is re-elected and the US experiences a severe Revenge Revolution, or if Biden is elected and the US experiences a mild Revenge Revolution, the country is going to face a decade or possibly two decades before the damage from Trump can be repaired.  Repairing damage to some international relationships could take even longer.

Compounding the repair efforts will be demands to address societal issues caused by racism.  Effectively addressing issues caused by racism may be more complex than repairing Trump-related damage.

People who think some government actions or more laws will make racism disappear are being foolhardy. Racism, and not just racism directed at blacks, has been around for thousands of years.  For centuries, people outside one’s circle – immediate family, local community, ethnic background, religion, etc. – have viewed others with suspicion and often discriminated against them. No law is going to change such attitudes.

The demands that something be done right now to address issues caused by racism are understandable but very likely those demands will divert time and valuable financial resources from the effort to repair the economy, educational system, political system, infrastructure and other critical items which need to be repaired now.  In fact, one could argue rationally that without significant progress in repairing the Trump-caused damage, efforts to address racism will be for naught, and could even backfire.

The best solution for minorities to address the effects of racism, seems to be as it has always been for minorities – education, Education when supported by one’s community begets economic opportunity.  Consider the recommended approach racist if you want.

My view is members of the black community need to take the initiative to help one another.  The Black Lives Matter and other movements would do well to study the pattern of how every other ethnic group that migrated out of poverty.

There are many wealthy blacks who can support such an effort, from athletes to entertainers to business people. We need fair and equal enforcement of the law for sure.  But, it is also time for blacks to look in the mirror and begin to take charge of their destiny.

Significant progress might take two or even three generations. A journey of a 1,000 miles begins with one step.

As far as demands for reparations, my view is be careful what you ask for and especially be careful of what you demand.  Reparations might make some people feel better in the short terms.  Keep in mind reparations are a superficial solution that does not solve the underlying problem. A good sense check for reparation would be to research the lives of lottery winners for say 5-6 years following their so-called lucky day.

Real change takes time.  Real change takes commitment to change.  Real change takes hard work.  Respect must be earned.  Respect cannot be legislated.

Next time: discussion of actions to address climate change post-Revenge Revolution.

#389. Where Do We Go from Here? (#11 in Series)

27 Monday Jul 2020

Posted by Jordan Abel in Causes of the Revolution, Economics, Lessons of Revolution, Societal Issues, Uncategorized

≈ Leave a comment

Readers: some of the dialogue in this blog is set in the future (sometime after the year 2020). Entries addressing events in the The future assume there has been a 5th revolution in the US — the Revenge Revolution. More about the Revenge Revolution, a list of earlier revolutions and the author, Entry #1.

Periodically I write a “sense check” to assess whether in the next few years, a revolution in the US is still possible or whether the entire exercise is based on a statistical aberration — i.e., a roughly 50-year cycle between major upheavals in the US.  Most recent sense check, ENTRY #387.  

Some of the entries are part of a series.  Several series are available as easy-to-read booklets for download:

  • Working with Lee Iacocca after he left Chrysler, 2019Q3 Iacocca Personal Observations. 
  • GM EV1 — behind-the-scenes events affecting development and introduction of the GM EV1, the first modern electric vehicle. 2020Q1 GM EV-1 Story Behind the Story Booklet
  • Coming technology tsunami and the implications for the US, Tech Tsunami Booklet with Supplement
  • Trump Supporters Brainwashed? A series discussing why Republics have abandoned basic principals, Are Trump Republicans Brainwashed 2020Q1
  • Who took out the Donald?  Who/what groups are most likely to “take out” Trump? Who Took Out the Donald Entries with Update
  • Revenge Revolution — description of what form the revolution might take, 20 01 07 Start of Revolution

Prelude to the current series of entries: I’ve concluded Trump is a lunatic and the administration filled with lapdogs save a couple of people at CDC.  Instead of wasting time commenting on actions by Trump, I thought it more productive to begin discussing what happens in the US once the coronavirus is more under control.  #378 began the series. At this point not sure how many entries.  Comments and suggestions welcome.

ENTRY #389: We are approaching the end of July 2020. Fewer than 100 days until the presidential election.  What’s happening? Just a bit.

  1. Coronavirus remains unchecked in many locations
  2. No clear strategy from the White House yet addressing the Coronavirus
  3. Growing effort to ban the Confederate flag and to remove statues honoring generals who fought against the US
  4. Growing effort to rename buildings, sports teams, schools, organizations and brand-name products that some group might consider offensive
  5. Sending non-uniformed federal troops to various cities to arrest often peaceful protestors.  Trump ordered the troops “to protect the cities from destruction.”  Of course, troops were sent only to cities with Democratic mayors.  None of the mayors asked for the troops.
  6. Sputtering economy that may beginning to backslide.  Meanwhile, Senate Republicans are so divided they cannot come to agreement on a stimulus package.
  7. Cancelling the Republican Convention in Jacksonville, Florida that Trump insisted on moving from Charlotte, NC because the NC governor had mandated rules for wearing masks and limiting the number of people who could gather in public places.
  8. Icing on the cake is both humorous and tragic.  Last week Trump was bragging to Fox News about how he “aced” a test designed to detect likely onset of Alzheimer’s.  His remarks were pathetic but memorable.  Trump claimed remembering five words, “Person, woman, man, camera and TV,” qualified him as an incredibly smart person.  Donald, I hate to tell you, a 5-year old can do the same thing, and the 5-year old can also identify an elephant.

Widespread uncertainty in any environment tends to lead to widespread chaos. No one in the White House, no one in Congress and certainly no one in the public, knows what’s next. Nor does anybody in the Trump administration seem to know how to fix the current problems, or even care about fixing current problems.

The most clear-cut answer to reduce the risk of contracting and to reduce the number of cases of the coronavirus comes from an epidemiologist who merely states facts – wear a mask and stay 6’ away from others.  However, even such a simple gesture from a highly trained professional has been met with strong resistance, starting with the Trump administration.  Finally, this past week, Trump suggested wearing a mask might be OK, although not for him.

In a series of earlier entries, I noted that many Trump supporters seem to be brainwashed. If there were ever a concrete example of brainwashing, the refusal to wear a mask is it.  One does not need an epidemiological degree to understand a face covering will slow penetration of inbound/outbound particles.

I wonder if any of these Republicans have ever watched the movie, “Lawrence of Arabia”.   Trumpsters, why do you think the guys riding in the desert on horseback and on camels covered their face with scarves? Without a scarf, blowing sand tends to get in the mouth and nose, and really doesn’t taste great.

Wearing a mask reduces the dispersion of particles when you breathe, cough or sneeze, thereby reducing the likelihood of contaminating others.  But since Trump has implied and even stated masks are for wimps, or at least he did so until only a day or so ago, no self-respecting brainwashed Republican wants to be seen wearing a mask.

In their brainwashed state, Republicans don’t need a mask because they are immune from the coronavirus. Only liberals need masks, and who cares if liberals are infected because of some Republican?

The two ends of “should-I-wear-a-mask?” spectrum were highlighted in a couple of recent Facebook posts. One post equated forcing people to wear masks in public locations as similar to Nazi’s forcing Jews to wear a yellow star. Not even remotely a legitimate comparison. But the guy who posted the entry is a hardcore Trumpster.

The other extreme regarding wearing a mask was lighthearted. The post was a quote, “Walmart is only asking you to wear a mask. You can still wear your pajamas and still leave your bra and your teeth at home.”

While Trump politicizing wearing a mask is baffling, even more baffling is the effort by the Trump administration to reduce funds allocated for testing the public for infection. Using Trump’s logic, if there are no tests, then the number of reported infections will decline. The decline in infections will prove that Trump has done a great job addressing the issue. Welcome to logic in Trump World.

Let’s put the brainwashed Trumpsters aside, and address the economy post coronavirus and post Revenge Revolution. The Coronavirus has been the catalyst for accelerating the shift to a new economic model.

In the post-coronavirus world, wealth will still be created the way wealth has always been created – integrating and/or processing individual components so the end product is more valuable than the individual components – aka, manufacturing. Manufacturing categories include a wide range of industries — farming, mining, automotive, software development, construction, etc.

The GDP also includes non-manufacturing categories, or “services.” Services include such industries as travel-and-entertainment – hotels, casinos, air travel, cruise ships – food service, retail, banking, professional services, including medical, and a host of other occupations. Think of services as “transferring money from one pocket to another.”  While many services are essential and generate many jobs, no societal wealth is created with the transfer of money between pockets.  However, services can result in individuals or companies becoming wealthy.

Like all past major shifts in the economy – agrarian to industrial, e.g. – some individuals and some companies will benefit. Other individuals and companies will be left behind and lose wealth. The shift often can be swift and brutal.  An example is the shift from steam-powered locomotives to diesel locomotives in the 1930’s.  Within a few years of introduction, diesel locomotives dominated and production of steam locomotives stopped.

Unfortunately, when these economic shifts occur, some in society will be hard hit.  If we use the experience of workers during the coronavirus shutdown as a proxy, then workers most at risk might be those in the middle – jobs above entry level that require some level of advanced education but not jobs that require skills for critical thinking.

During the coronavirus shutdown, many people in the United States got a surprise.  Critical workers included grocery-store clerks, sanitation workers, emergency-response teams, transit workers and other seemingly out of the limelight, lower-paid employees. While society was surprised about which jobs were “critical,” organizations discovered that many employees were in fact, “non-critical.”  Such workers included certain clerical staff, middle managers, sales staff, and other support personnel.

An open question in the post-coronavirus economy is what happens to central cities or other areas where offices are clustered? If people continue to work from home, and only need an office part-time, and if support staffs are reduced, what happens to all the office buildings in say Manhattan, Chicago, Los Angeles, etc.? What happens to the infrastructure – subways and light rail – restaurants and other jobs dependent upon office workers?

People still need space to work and food to eat. However, will those working at home look for a somewhat larger house? Will those working from home begin to order in more meals rather than going to nearby restaurants?

While the future of the economy and future size and style of homes are uncertain, one certainty is the United States and other developed countries are going to face huge dislocations and changes to the norm. Covid-19 accelerated the arrival and intensity of the technology tsunami. The next decade is going to be a wild ride. (More about coming technology tsunami, Tech Tsunami Booklet with Supplement.)

One variable sitting on top of the economic and social changes post coronavirus is action required to mitigate the impact of climate change.  The argument is moot whether climate change is natural or man-made.  Climate change is here and is not going away.

Next blog entry we’ll discuss how some proposed actions to address climate change might cause further economic and social dislocations.  Stay tuned.

#384 1967 Detroit Riots: Lessons for Cities and Trump Administration

02 Tuesday Jun 2020

Posted by Jordan Abel in Causes of the Revolution, Gov't Policy, Lessons of Revolution, Societal Issues, Uncategorized

≈ Leave a comment

Readers: this blog is set in the future (sometime after the year 2020). Each entry assumes there has been a 5th revolution in the US — the Revenge Revolution. More about the Revenge Revolution, a list of earlier revolutions and the author, Entry #1.

Periodically I write a “sense check” to assess whether in the next few years, a revolution in the US is still possible or whether the entire exercise is based on a statistical aberration — i.e., a roughly 50-year cycle between major upheavals in the US.  Most recent sense check, Entry #365.  

Some of the entries are part of a series.  Several series are available as easy-to-read booklets for download:

  • Working with Lee Iacocca after he left Chrysler, 2019Q3 Iacocca Personal Observations. 
  • GM EV1 — behind-the-scenes events affecting development and introduction of the GM EV1, the first modern electric vehicle. 2020Q1 GM EV-1 Story Behind the Story Booklet
  • Coming technology tsunami and the implications for the US, Tech Tsunami Booklet with Supplement
  • Trump Supporters Brainwashed? A series discussing why Republics have abandoned basic principals, Are Trump Republicans Brainwashed 2020Q1
  • Who took out the Donald?  Who/what groups are most likely to “take out” Trump? Who Took Out the Donald Entries with Update
  • Revenge Revolution — description of what form the revolution might take, 20 01 07 Start of Revolution

Prelude: I’ve concluded Trump is a lunatic and the administration filled with lapdogs save a couple of people at CDC.  Instead of wasting time commenting on actions by Trump, I thought it more productive to begin discussing what happens in the US once the coronavirus is more under control.  #378 began the series. At this point not sure how many entries.  Comments and suggestions welcome.

The topic of ENTRY #384 was not anticipated.  The civil unrest this past week may become more prevalent than anyone would like. Unfortunately, the unrest likely will continue well past COVID-19, and thus a topic for this series.

ENTRY #384 BEGINS:  The past week there have been rallies in numerous cities protesting the treatment of Mr. George Floyd by Minneapolis Police. More and more of these rallies have evolved into riots with extensive looting and burning of public and private property.  With Trump’s proclamation Monday evening, June 1, that maximum force, including US military personnel, could be used to quell all protests, the number and intensity may increase and the tactics more warlike.

Apparently the Donald forgot to read his history books and skipped classes as well on military strategy.  Using traditional brute force in a guerilla war, which is what is likely to evolve after the proclamation, rarely works, if ever.  The list is long of examples of brute force failing to stop guerilla warfare, including Vietnam.

Watching these riots has been painful. I can tell you from personal experience, it is quite scary to be caught in the middle of the violence itself.

In summer 1967, we were living in a suburb immediately north of Detroit. I was just months into my job at Cadillac Division of General Motors.

One Sunday afternoon our neighbor, a manager of a credit agency housed in Detroit, said he’d heard there was some disturbance downtown and wanted to go check on his office. I offered to accompany him and off we went.

What we got was a whole lot more than anticipated. When we arrived in front of the office, housed in the Fox Theater building, there were people everywhere. A liquor store next to the theater was being looted as was a TV shop next door to that.

We looked to be some of the first “outsiders” to arrive at this location because while we were still in the car, a number of police cars pulled in behind us. No, we weren’t stupid. It was time to get out of Dodge and we left.

Overnight there were more riots in selected parts of Detroit but there was no declaration of an emergency. So, Monday morning I headed to work. The main Cadillac plant was on the west side and several miles from downtown Detroit. Rioting continued as did the fires. Midday Monday a number of us stood on an enclosed walkway between the fourth floors of two different buildings. We could see parts of the city clearly burning.

Cadillac closed the offices and the assembly plant that afternoon and I headed back to the apartment using an alternate route that was even farther west and away from the activity. I returned without incident but was left with the nagging question, “Are we really safe?”

The apartment complex was just on the other side of the dividing line between Detroit and Southfield – 8-Mile Road. The apartment complex was not gated so there was nothing to stop rioters from entering. Fortunately, the rioting did not spread to our immediate area.

Rioting did continue to spread within the City of Detroit. Rioting became so extensive, Governor George Romney (Mitt’s father) asked for Federal assistance and members of the US Army’s 82nd and 101st Airborne Divisions were deployed to Detroit. In addition to light-infantry weapons, the units were supported by heavily armored tanks.

If you’ve never witnessed in real time the firepower of a .50-caliber machine gun mounted on a tank, visualize this. The machine gun is aimed at a sniper holed up in say the 5th floor of a brick building. The first few rounds from the machine gun literally blow away the brick facade and then subsequent rounds penetrate the interior of the building. That scene was fairly common in Detroit as the military attempted to control sniper fire.

Thus, in the span of a few days, much of Detroit became a war zone. The devastation is hard to describe and imagine. Some areas of Detroit have not yet recovered, more than 50+ years later. Yes, Detroit had some other problems as well but I think what tipped over the City was the 1967 riots.

What caused the riots? Was there an incident like George Floyd in Minneapolis or Rodney King in Los Angeles? On the surface, the riots were precipitated by a seemingly innocuous single incident. In the early hours of Sunday morning, the Detroit police raided and closed a blind pig in a black neighborhood (illegal bar often with some gambling as well).

While black residents were frustrated by the raid on the blind pig, residents housed a long-standing frustration with treatment by the Detroit Police Department, then mostly white. Economics was a contributing factor, but much less so than most people think. In the 1960’s, the US economy and especially Detroit’s economy were strong. Many black residents were employed at one of the many new-car/truck assembly plants or component plants in and around Detroit.

Further, all hourly employees in those plants were members of the UAW with extensive health benefits, multi-week vacation and a base wage that was sufficient for full-time workers to be classified as “middle class.” Detroit also had a relatively strong black-owned business community.

What happened to Detroit following the riots? Many whites fled the City for the suburbs. Auto companies gradually closed many of the assembly and component plants, although there were other reasons for that as well. Detroit became a shell of its former self. Only in the last decade, roughly 50 years after the riots, has Detroit started to rebound. New businesses are moving in. Housing is being rebuilt and population is gradually expanding.

What’s the lesson, or the caution, for other cities experiencing riots? While there is no simple answer, at a minimum, city leaders, public and private, need to work closely with citizens and be alert to problems with city services, whether garbage pickup, water quality (as in Flint), or unsavory or unethical actions by law enforcement. Understanding these problems, and making an effort to resolve the problems before getting out of control, will help mitigate the potential for disturbance.

An example of such an effort is the sheriff of Genesee County Michigan, north of Detroit and home to Flint, MI.  The sheriff has been working closely with residents throughout the county.  So far, there have been no unruly protests in Flint and other cities in the county.

Another issue that seems important, and one that does not get discussed enough publicly, is encouraging local residents to become business owners in their community. Maybe more black-owned businesses would prevent some of the insidious looting that occurred during recent protests. Why would you loot a store in your neighborhood that is providing critical services, and owned by one of your neighbors?

Those who loot or encourage looting neighborhood stores should not complain because few, if any, national chains open neighborhood stores. Why should these companies risk capital, if the stores are targeted for looting?

Finally, I think any honest conversation about unfair treatment, discrimination, and associated issues needs to ask the following questions. “How did other ethnic groups overcome what was often overt and brutal discrimination? What did these ethnic groups do, sometimes over several generations, to reduce discrimination and make better lives for themselves?”  The answers could provide some guidance for all sides.  Answers will also indicate solutions are never easy and never one sided.

#381: Religious Institutions Next Big Box Stores? (We Gotta…Part 4)

09 Saturday May 2020

Posted by Jordan Abel in Causes of the Revolution, Economics, Societal Issues, Uncategorized

≈ Leave a comment

Readers: this blog is set in the future (sometime after the year 2020). Each entry assumes there has been a 5th revolution in the US — the Revenge Revolution. More about the Revenge Revolution, a list of earlier revolutions and the author, Entry #1.

Periodically I write a “sense check” to assess whether in the next few years, a revolution in the US is still possible or whether the entire exercise is based on a statistical aberration — i.e., a roughly 50-year cycle between major upheavals in the US.  Most recent sense check, Entry #365.  

Some of the entries are part of a series.  Several series are available as easy-to-read booklets for download:

  • Working with Lee Iacocca after he left Chrysler, 2019Q3 Iacocca Personal Observations. 
  • GM EV1 — behind-the-scenes events affecting development and introduction of the GM EV1, the first modern electric vehicle. 2020Q1 GM EV-1 Story Behind the Story Booklet
  • Coming technology tsunami and the implications for the US, Tech Tsunami Booklet with Supplement
  • Trump Supporters Brainwashed? A series discussing why Republics have abandoned basic principals, Are Trump Republicans Brainwashed 2020Q1
  • Who took out the Donald?  Who/what groups are most likely to “take out” Trump? Who Took Out the Donald Entries with Update
  • Revenge Revolution — description of what form the revolution might take, 20 01 07 Start of Revolution

Prelude: I’ve concluded Trump is a lunatic and the administration filled with lapdogs save a couple of people at CDC.  Instead of wasting time commenting on actions by Trump, I thought it more productive to begin discussing what happens in the US once the coronavirus is more under control.  #378 began the series. At this point not sure how many entries.  Comments and suggestions welcome.

ENTRY #381: The future of religious institutions is being influenced by three factors over which the institutions have no control. These exogenous variables directly affect the near and long-term financial viability of many such institutions:

  1. Changing membership demographics, especially less favorable attitudes by younger generations toward religion
  2. Downward pressure on family discretionary income from multiple sources
  3. Migration to more electronic communication, in part because of sustained concern about large gatherings post coronavirus

The pressures will intensify in the coming years. Without some fundamental strategies to address the effects of these pressures, many religious institutions could become financially insolvent and forced to dissolve. Further the pressures are not specific to one or two religions. All religions are likely to be affected.

Demographic Pressure. There are numerous articles and studies (Pew Research, e.g.) indicating younger generations are less attracted to religions of all types. The younger generations also attend services less than previous generations at the same age.

When viewing the data, some believe that as younger generations age they will act more like their parents and grandparents, thus “adopting” much of the behavior of previous generations. By adopting attitudes and behavior of previous generations, these younger cohorts, therefore will become more favorable to religion and more supportive of religious institutions.

The clergy and the “Board of Directors” of a religious institution should not make the assumption re “adopting behavior.” One only needs to track age cohorts over time to realize younger age cohorts do not adopt the attitudes of their parents’ generation when they reach the same age.

Rather than adopting behavior, empirical evidence suggests cohorts “retain” attitudes and behaviors established in their early twenties. Some examples of “retaining” values range from attitudes of different generations toward such social issues as use of drugs, casual sex, age for marriage to preferred brands of vehicles to preferred style of house and furniture. One only has to ask “What happened to the appeal of darker-wood furniture as well as fine china and crystal with the generations under age 40″ to realize tastes and preferences are different?[1]

Pressure on the Revenue Stream.  Since roughly the mid-1960’s each succeeding age cohort has been faced with increased pressure on discretionary income[2]. Every religious institution should assume one or more of these pressures on discretionary income will continue, thereby making it more difficult for families to provide financial support. Pressures are:

  1. Medical costs increasing faster than income
  2. Housing prices (and rents) increasing faster than income
  3. College tuition increasing at a rate much faster than inflation and income
  4. Retirement savings burden being transferred to employees as employer-funded defined-benefit retirement programs have been eliminated

The economic pressures caused by each one of these factors probably could be managed by most families. However, when the increases in all factors are combined – each one has a similar pattern of costs outpacing income – the result is a significant erosion in discretionary income.  

A real-world example of the impact of these pressures was evident during a recent PBS News Hour broadcast. An ER- vehicle technician in New York City described the mental and economic pressures associated with the coronavirus. The interviewer asked the ER technician about salary – about $40,000 per year. As anyone familiar with the cost of living in any of the NY boroughs, $40k for a family is tight. Worse for the technician was that his employer, apparently a contractor to the City of New York, did not provide health insurance.

Here’s the guy taking people to the hospital to get treated for coronavirus (or some other emergency) but who does not have employer-paid health insurance. Even worse the technician can’t afford private health insurance because the Trump administration eliminated many features of Obamacare and eliminated insurance exchanges.

Housing Prices/Monthly Rental. The chart is for price increases of houses and rent compared to growth in median income, adjusted for inflation. While the data are national, people living in some metro areas have faced the problem of housing prices-HOA dues/rents and insurance rising even faster than noted on the chart.

Real estate taxes are also increasing. Although relatively low compared to NY/NJ/CT, housing costs and taxes in many areas are still high and a further erosion of discretionary income.  These costs result is less money available for contributions to a given institution.

College Costs. Since the 1960’s, early 1970’s tuition at public and private colleges has more than doubled as a percent of family income in inflation-adjusted dollars. Costs for elite universities have increased even faster. Even with some assistance, overall costs for higher education are likely twice as high as a percent of family income over the past couple of generations. The impact of the coronavirus may make the disparity worse. Tax revenue in virtually every state has fallen dramatically. To balance future budgets states may need to cut support for higher education.

End of this entry. More next week about the impact on contributions of: (i) technology replacing jobs; (ii) retirement savings shortfall; (iii) electronic “competition” from other religious institutions.

[1] For more analysis of “adoption” and “retention” please download paper I wrote at University of Michigan in 1987 titled “A Nation in Transition.” The paper addressed how differences in attitudes between pre-Boomer and Boomer cohorts could affect how America would view its role internationally. The paper included a comparison of a variety of attitudes. (87 12 08 Nation in Transition) 

[2] Discretionary income is the amount of an individual’s income left for spending after paying taxes and paying for personal necessities, such as food, shelter and clothing. Discretionary income includes money spent or allocated to luxury items, vacations and non-essential good/services, including contributions.

#378. US Societal Quagmire: “We Gotta Get Out of This Place” (Part 1)

19 Sunday Apr 2020

Posted by Jordan Abel in Causes of the Revolution, Gov't Policy, Societal Issues, Uncategorized

≈ 7 Comments

Readers: this blog is set in the future (sometime after the year 2020). Each entry assumes there has been a 5th revolution in the US — the Revenge Revolution. More about the Revenge Revolution, a list of earlier revolutions and the author, Entry #1.

Periodically I write a “sense check” to assess whether in the next few years, a revolution in the US is still possible or whether the entire exercise is based on a statistical aberration — i.e., a roughly 50-year cycle between major upheavals in the US.  Most recent sense check, Entry #365.  

Some of the entries are part of a series.  Several series are available as easy-to-read booklets for download:

  • Working with Lee Iacocca after he left Chrysler, 2019Q3 Iacocca Personal Observations. 
  • GM EV1 — behind-the-scenes events affecting development and introduction of the GM EV1, the first modern electric vehicle. 2020Q1 GM EV-1 Story Behind the Story Booklet
  • Coming technology tsunami and the implications for the US, Tech Tsunami Booklet with Supplement
  • Trump Supporters Brainwashed? A series discussing why Republics have abandoned basic principals, Are Trump Republicans Brainwashed 2020Q1
  • Who took out the Donald?  Who/what groups are most likely to “take out” Trump? Who Took Out the Donald Entries with Update
  • Revenge Revolution — description of what form the revolution might take, 20 01 07 Start of Revolution

Prelude: in a couple of preceding entries I tried to address the seemingly endless number of inconsistencies in information from the Trump administration about the spread of the coronavirus and/or actions to mitigate the spread. After some reflection, I decided that was futile.  Trump is a lunatic and the administration filled with lapdogs save a couple of people at CDC.  Instead of wasting time on Trump, I thought it more productive to begin discussing what happens in the US once the coronavirus is more under control.  At this point not sure how many entries.  The first one is a bit long.  

ENTRY #378 BEGINS: In the 1960s, there was a song by The Animals that included the lyrics, “We gotta get out of this place if it’s the last thing we ever do.”   While not written as a protest against the Vietnam War, the song was often used as a protest against the US participation in Vietnam.

Even though the song is more than 50 years old, the title seems appropriate today. The place we have to get out of is the economic and social quagmire in this country. The economic and social quagmire has been gradually getting worse with each decade. And while the Trump Administration has not been the sole cause, decisions by Trump with the support of the Republican Party have made the quagmire far worse.

Another perspective on the same situation is the US is sitting on an economic and social time bomb with the timer clock getting close to zero hour and ready to explode. What’s creating the time bomb is pressure from multiple sectors:

  1. Decades of limited earnings growth for middle and lower-income workers. The result has been greater income inequality.
  2. More medical risk. Fewer employers are providing company-paid medical insurance, thus leaving families to fund their insurance.
  3. Less job certainty. The uncertainty has been growing for some time as more organizations hire workers as contractors. Organizations are also automating an ever increasing number of functions of blue-collar and white-collar workers.
  4. More societal polarization with focus on one’s political party rather than with focus on solving problems. The shift began with the Reagan administration, when Reagan repeatedly declared, “Government is the problem, not the solution.” Trump’s public animosity toward anyone who does not support his views, however controversial, convoluted and even unconstitutional, has taken party loyalty over policy to an unprecedented level.

The four forces squeezing the US population are like hands squeezing a balloon. The coronavirus has intensified the squeeze, leaving little time before the balloon bursts. Reactions to state governors’ actions to control the spread of the coronavirus generally have been positive although some on the far right have protested. Apparently far-right Republicans think they have immunity to the virus.

The stay-at-home directives, closing of businesses and social distancing seem to have allowed the nation to pause and begin rethinking previously held assumptions. For example, prior to the coronavirus, certain jobs were considered relatively unimportant and, therefore, not worthy of much compensation. Such jobs included non-degreed healthcare workers, grocery store staff, transit workers and workers at food-processing plants.

Interestingly, the coronavirus changed those assumptions. People began to realize how important these jobs were to a functioning society. During the coronavirus those working in healthcare, grocery store and food-processing, among others, were categorized as “essential.” At the same time, many college-degreed, higher-paid white-collar jobs, including many executives, were categorized as “non-essential” and mandated to work from home.

Further, many “non-essential” businesses were ordered to close. The result was a huge spike in unemployment. Over a four-week period ending mid-April 2020, more than 22,000,000 workers in the US filed for state unemployment benefits. Over the next few weeks, the total will likely increase significantly since many unemployment offices were overwhelmed and furloughed workers unable to file.

How many of those currently furloughed will be re-employed post-coronavirus is uncertain. At a minimum, there likely will be a major disruption to the pre-virus job-status hierarchy. Many lower-paid “essential” workers could receive a pay increase and many white-collar workers deemed “non-essential” could be reclassified to lower-paid positions or jobs eliminated.

The COVID-19-related shutdown of the US economy has brought to the forefront social and economic inequities. Prior to COVID-19 these inequities often were discussed in the abstract since most of the people discussing the inequities were not affected directly. COVID-19 has reframed the conversation. Most of the public now realizes how fragile their jobs are and how the safety net for furloughed workers has a huge hole, starting with unemployment benefits and medical coverage.

Now that this “hole” in the safety net has been discovered, what steps will elected officials take to make repairs? The task of repairing the hole may be more complicated than policymakers realize. While anyone losing a job or being furloughed without pay suffers economically, the impact of that loss may be markedly different for different age groups.

Historically, as workers aged their families had been able to accumulate financial resources that could help cushion economic downturns. Thus, older workers furloughed because of COVID-19 should be in a better position economically than younger workers. But are workers today, older and younger, able to weather an economic downturn?

How do economic resources of today’s workers compare to workers at the same age say 25 years ago? Do today’s workers age 45 have the same relative assets as workers who were age 45 in 1995? What about assets of workers say age 25 in 2020 compared to those age 25 in 1995? Are workers today, older and younger, at a disadvantage economically compared to previous age cohorts? The answer is, “yes.” And that disadvantage has grown with each generation.

Over the last 50-60 years, there has a fundamental deterioration in affordability of key factors that help a family accumulate assets. Since roughly the mid-1960’s each succeeding age cohort has been faced with:

  1. Housing prices (and rents) increasing faster than income
  2. Medical costs increasing faster than income
  3. College tuition increasing at a rate much faster than inflation and income
  4. Retirement savings burden transferred to employees as employer-funded defined-benefit retirement programs have been eliminated

The economic pressures caused by each one of these factors probably could be managed by most families. For example, since 1960, when adjusted for inflation, housing prices have increased about 125%, rent about 75% and income only 25%.  However, when the increases in all factors are combined – each one has a similar curve – the result in a significant erosion in disposable personal income.

A story that hit me like a 2×4 to the forehead was an interview with a family trying to survive under the crush of these economic pressures. The interview was during the recent PBS News Hour. The subject was an ER- vehicle technician in New York.

The technician was describing the mental and economic pressures associated with the coronavirus. The ER technician earned about $40,000. As anyone familiar with cost of living in any of the NY boroughs, $40k for a family is tight. He also had a second job. What really struck me was the ER technician’s employer, apparently a contractor to the City of New York, did not provide health insurance.

Here’s the guy taking you to the hospital to get treated for coronavirus (or some other emergency) but the ER technician does not have employer-paid health insurance. Even worse he can’t afford private health insurance because the Trump administration eliminated many features of Obamacare and eliminated insurance exchanges. So, Trump and Republicans, the guy taking you to the hospital to save your life is risking his life and risking financial ruin if he contracts the virus from you. Does that seem fair?

Longer term, the impact of the coronavirus on the United States will likely end up changing permanently a number of aspects of society. The post-coronavirus United States will likely be forced to address the medical and economic inequities that have been building for the past 50-60 years. In addition, the US might begin to address the need retrain workers as more technology is integrated into the workplace.

The likely result of the coming technology tsunami? Many blue-collar and white-collar workers of all ages are going to be faced with possibly accepting a lower standard of living. (See booklet titled Technology Tsunami for more discussion and possible solutions.)

Will workers of different age cohorts be affected differently? Workers currently age 50 and older, even though they should have more resources, may be hit harder by the technology tsunami since many are less familiar with advanced technology and they have fewer years before retirement to try and recoup lost earnings.

But the technology tsunami is only one tsunami facing current workers. Another tsunami headed toward US shores is the retirement tsunami. What we as a society don’t talk about and certainly what has not been addressed at the Federal level is how unprepared for retirement workers are.

The retirement tsunami has been caused by the elimination of employer-funded health and retirement programs. The potential impact of the tsunami has been made worse by erosion of personal income from the accelerating cost of housing, medical and college tuition. Workers have nothing left over to save for retirement.

In a recent poll by Center for Retirement Research at Boston College, 75%, or 3 out of 4 people age 50-62 had jobs that fell into a “non-traditional” category — meaning, those without employer-provided retirement plans and health insurance. According to the report, workers in non-traditional jobs can expect their retirement income to be as much as 26% lower than that of people who spent their 50’s and early 60’s in positions with full benefit packages, according to the center’s findings.  (Update: NYTimes article about older workers without adequate retirement savings moving in with children, 20 05 03 NYT Underfunded Retirement Parents Moving in with Children) 

What about the impact of higher costs and the technology tsunami on younger workers? Don’t they have 30-35 years to recoup lost earnings from a coronavirus economic slowdown and the technology tsunami? Unfortunately, a greater percentage of younger age cohorts are likely to be even less prepared for retirement than those currently age 50-62.

If costs for housing, medical, education and retirement continue to exceed gains in income, the cumulative effect will further erode disposal personal income. Unless there is a fundamental change in how health care costs, retirement programs and advanced education are funded, more and more people will be underfunded for retirement.

What will make a bad situation worse is a prolonged economic slump associated with the coronavirus shutdowns. The rate at which people have been furloughed is unprecedented – 22,000,000 in four weeks and likely another 10,000,000 in the next four weeks.

Few people in business, few economists and much of the general public does not expect the economy to bounce back once the restrictions associated with the coronavirus are lifted. Even if employment in the manufacturing increases over the next 24-30 months as companies begin bringing jobs back to the US, overall economic growth will be very slow.

Some portions of the service sector employment seem likely to experience a permanent loss of jobs. After “stay-at-home” restrictions are lifted, how many consumers will immediately return to restaurants, attend sporting events, go to shopping centers or travel by plane – and especially take cruises? Consumers are likely to remain cautious until an effective vaccine has become widely available – probably as long as 18-24 months. Even with the vaccine will the public’s behavior be changed permanently?

During the next 18-24 months and maybe forever, how much of structure of service sector will change? Many formerly employed in the service sector have no employer-funded health insurance and even fewer have an employer-funded retirement program. Where do these former employees turn for help? Their jobs are gone, or at least not coming back for some time. Finding another job will be extremely difficult since the economy is growing slowly at best.

Now you see why the theme of this entry is “We gotta get out of this place if it’s the last thing we ever do.” This place is a dead end. We’ve got to find something new. The pressure to “get out of this place” seems like the spark for the Revenge Revolution.

The hardships associated with coronavirus seems to be awakening the middle class to realize how long they have been screwed by Republican policies of tax cuts for the wealthy and denying affordable medical care for all. Workers over 50 are realizing the need to return to employer-funded retirement programs and/or increased Social Security retirement benefits. Such programs are widespread in other developed countries so there is no excuse for not implementing.

When will the Revenge Revolution start? I think we’ve started. The coronavirus seems like an event that could trigger a revolution. The pace and magnitude of the job losses are unprecedented. The Revenge Revolution could spread as quickly as the coronavirus.

As more and more people realize “we gotta get out of this place” the more pressure on Washington to address the social and economic inequities. People are not going to be satisfied with Trump blaming China, the WHO or someone else for the coronavirus. People want concrete steps to fix the hole in the safety net, help train people for the coming technology tsunami, make healthcare affordable for everyone and make sure people have adequate resources for retirement. (Next few entries will offer some solutions.

#375 Leadership in a Crisis: Chaos or Confidence?

21 Saturday Mar 2020

Posted by Jordan Abel in Causes of the Revolution, Economics, Federal Budget, Gov't Policy, Stupid Is as Stupid Does, Uncategorized

≈ Leave a comment

Readers: this blog is set in the future (sometime after the year 2020). Each entry assumes there has been a 5th revolution in the US — the Revenge Revolution. More about the Revenge Revolution, a list of earlier revolutions and the author, Entry #1.

Periodically I write a “sense check” to assess whether in the next few years, a revolution in the US is still possible or whether the entire exercise is based on a statistical aberration — i.e., a roughly 50-year cycle between major upheavals in the US.  Most recent sense check, Entry #365.  

Some of the entries are part of a series.  Several series are available as easy-to-read booklets for download:

  • Working with Lee Iacocca after he left Chrysler, 2019Q3 Iacocca Personal Observations. 
  • GM EV1 — behind-the-scenes events affecting development and introduction of the GM EV1, the first modern electric vehicle. 2020Q1 GM EV-1 Story Behind the Story Booklet
  • Coming technology tsunami and the implications for the US, Tech Tsunami Booklet with Supplement
  • Trump Supporters Brainwashed? A series discussing why Republics have abandoned basic principals, Are Trump Republicans Brainwashed 2020Q1
  • Who took out the Donald?  Who/what groups are most likely to “take out” Trump? Who Took Out the Donald Entries with Update
  • Revenge Revolution — description of what form the revolution might take, 20 01 07 Start of Revolution

Prelude: there is an endless number of inconsistencies in information from the Trump administration about the spread of the coronavirus and/or actions to mitigate the spread. Rather than beat a dead horse, I’ve chosen a few that are representative but not necessarily the most egregious.

ENTRY #375 BEGINS: During the Great Depression FDR understood that instilling hope in people would help bring the country together and help reduce the likelihood of societal chaos. FDR started his first term by stating, “The only thing we have to fear is fear itself.”

FDR followed his inaugural address with a series of “fireside chats,” during which he outlined problems and proposed solutions. (If you’ve never heard any of the “fireside chats,” they’re available on the internet.) The fireside chats helped build confidence in the capabilities of the Roosevelt administration and a foundation of hope in a time of great uncertainty.

The umbrella for recovery from the Great Depression was called the “New Deal.” The New Deal included a series of programs to provide work and income (and self-respect) for all types of unemployed workers. The New Deal work programs – WPA, CCC, and many others – included significantly expanding infrastructure in the United States, which laid the groundwork for economic growth for many decades to come.

The lesson of FDR’s understanding of creating hope and maintaining self-respect seems to have been lost on the Trump Administration. Whereas the cause of society’s uncertainty today is different than during the 1930’s, the importance of instilling hope in society and avoiding instilling fear remains the same.

Unfortunately, since day #1 in office, Trump has promoted chaos and fear. Even cabinet members who were selected because of a relationship with Trump, have been cast aside for daring to disagree with Trump. As noted in several previous entries (#374 is an example), the result of Trump‘s management style has been a cabinet that is filled with incompetents.

Trump has also consistently displayed incompetence on substantive issues. The combination has reduced people’s confidence in the ability of government to manage crises. What about the public’s confidence in the competence of the White House in dealing with the coronavirus? Did Trump take the approach of FDR and layout problems and proposed solutions?

In a press conference March 20, 2020, a reporter asked Trump and Mike Pompeo, Secretary of State, when the administration first learned of the extent of the coronavirus problem in China. Pompeo asked the Homeland Security director to answer – the reply was “January 3.”

Did the Trump administration convey such information to the public? Did the administration take any action to ensure critical medical supplies would be on hand should the virus spread to the US? No, not even outside the public purview. As recently as March 3rd – two months after learning about the major problems in China – Trump declared publicly the coronavirus was a hoax.

When cases started appearing in the US, Trump claimed there were only 15 cases (there were at least 60). And of the 15 cases, Trump claimed only one or two were serious. A few days thereafter, Trump declared the virus would magically disappear, like some miracle. According to Trump, the US, unlike other countries, had the coronavirus under control.

On March 19 information became available that the Senate Committee on Intelligence had been briefed on the severity of the problem in February. The chairman of the committee, Richard Burr (R-NC), used the information to sell stock in industries that might be affected and to warn a small group of high-dollar donors about the growing problem. Did Burr inform the public? No. (Gee, I wonder what the outcry would be from Fox News, Lindsey Graham and other Trump lapdogs if Burr were a Democrat?)

Despite declarations from King Trump, the number of people infected in the US kept increasing exponentially. Then after several governors and mayors had implemented severe restrictions on travel and gatherings, King Trump declared, “I always knew this would lead to a pandemic.” Right Donald – liar, liar, pants on fire.”

Aside from the bonehead declarations by the president, the performance of the Trump administration this past week or so has been better, but remains mixed. Public confidence in the Center for Disease Control (CDC) seems to have improved as doctors have begun telling the truth about the intensity of the coronavirus and how citizens should behave. Comments from CDC personnel often have directly conflicted with claims made by Trump, even when Trump is standing next to the CDC spokesperson.

In addition, state and local officials have continued to provide guidance. Examples include governors of Michigan and Washington as well as governors/mayors in the New York tristate area. There are still some bumps in these declarations and differences of opinion but action is being taken.

As far as calming fear, Trump might have convinced the hardcore supporters he’s competent, but no one else seems convinced that he or key White House staff/cabinet officials knows what to do. Once the public began to understand more about they could be affected by the virus and then began to understand proposed government programs to respond, mild panic set in.

People rushed to buy food and staples. Stocks of toilet paper were depleted because people were concerned the material used to make facemasks would stop production of toilet paper. A simple explanation of manufacturing capacity for TP, and lead times from factory to food stores would have mitigated most concerns. A similar explanation for many food products would have helped. But as of this date, nary a word from the White House about supply chains.

The uncertainty also spooked investors, who hate uncertainty. The result has been a frenzy with huge daily swings in the market, mostly down. The major indexes, Trump’s personal barometer of job performance, have declined to a point where all the gains realized since inauguration have been wiped out. In less than two months the major indexes have fallen 25-30%.

The near freefall of the stock market has affected consumer confidence as has the projection of a double-digit drop in GDP in 2020:Q2, and double-digit unemployment. The trifecta hit on confidence will exaggerate the virus-related slowdown in purchases of durable goods as well as home sales and construction.

The run-up in the stock market proceeding the recent crash also left the public with another headache – an additional $1,000,000,000,000 Federal debt. The 2017 tax cut was essentially a wealth transfer program to the rich, making them even richer. Think of it as socialism for the rich. Little, if any of the tax cut actually filtered down to the middle and lower-income categories.

The end result was the rich got considerably richer and everyone else got stuck with the bill — $2,700+ for every man, woman and child in the US. For a family of four, they should think of the tax cut as their gift of more than $10,000 to the very wealthy. (For more about the fallacy of trickle-down economics, which was used to justify the wealth transfer, see blog entry xxx.)

While an economic stimulus will help some people pay bills in the short-term, the real issue is mitigating the effects of the virus. Because currently there is no vaccine (forget Trump’s claim) and no known cause, there is no way to stop infections. The government’s plan is to “flatten the curve” of the rate of infection so the number of people needing hospitalization stays within the capacity of the hospital system.

Actions to “flatten the curve of infection” include restricting the number of people who can gather together. In some areas, the restriction is 100 people, some areas it is 50 people and some areas 10 people. Surprisingly, as of 03/18, about 10 states had no restrictions, including Texas.

The flip side of restrictions on crowd control is the negative impact on commerce. Restaurants, bars, hotels, gyms, movie theaters, theme parks and even religious institutions have been ordered to close. Sporting events have been canceled or delayed. Airlines have cut back flights by 50% or more.

Even such mundane tasks as garbage pickup have been affected. In our neighborhood, the sanitation department also picks up twigs, leaves and other yard waste. This week the yard-waste truck was about an hour late because, according to a man on the truck, they could not take off because of the 50-person restriction and had to wait for the sanitation workers to leave the building. (Yard waste pickup has now been suspended.)

The effect of these restrictions will be a significant increase in unemployment and decline in GDP. Although some believe the jump in unemployment will be temporary, my belief is that any rebound in employment will leave many unemployed as organizations realize how to operate with fewer employees by implementing more technology. The depressing effect on employment could last for a number of years. (For more information about the effects of technology on potential unemployment, see ”Tech Tsunami Booklet with Supplement” )

While both economic and medical programs are needed, most proposed actions by the White House seem more focused on the economy and less on ensuring medical care is available for those affected. An example is the proposed payment of $1,000-$2,000 per family for some period. The intent seems worthwhile, helping to address income shortfalls for many service workers.

The effect of such programs on confidence is more problematic. The proposed program would link the amount of payment to family size and family income. Thus, the more income one earned (there’s a cap), the bigger the check from the government. Does anyone in the Trump administration or the Republican Senate understand basic economics? People with lower incomes who get laid off have no savings. At least give everyone the same amount.

Doubtless the irony of the proposed economic program has been lost on the White House and the Republican Senators. Isn’t giving away money directly to families socialism? Only a couple of weeks ago Republicans were characterizing as socialism any Democratic proposal for income support or student-loan forgiveness. Or, as often stated by Trumpsters, maybe such programs were really like communism. Well, aren’t socialism and communism the same?

Okay, the idea of supplementing income in the short-term makes economic sense. But there’s no need for a tax cut for corporations. In case Trump and Republicans don’t understand, taxes first require revenue and then a profit. If the public is not working there’s no demand and no revenue – and duh, no profit or tax due.

The proposed programs also have a flip side. #1, the proposed program would increase the federal debt in FY2020 at least another $1,000,000,000,000 and closer to $2,000,000,000,000. Thus, by the time Trump completes four years in office, the Federal debt will have increased more than $3,000,000,000,000…and likely more. The increase is remarkably high given that unlike Obama, Trump inherited a very strong economy that should have resulted in a smaller annual deficit and possibly annual surplus. Like I asked earlier, does anyone in the White House, Trump’s cabinet or the Republican Senate understand basic economics?

So where have all the Republican fiscal conservatives been while Trump ran up the federal debt? Apparently in hiding and waiting for a Democratic president so they can begin screaming about the level of federal debt. The scream will be the Federal debt needs to be reduced with cuts to payments for Social Security and Medicare.

Another area that can contribute to the thinking-public’s lack of confidence is the Trump administration’s effort to eliminate Obamacare. During the 2016 presidential campaign and then during three years in office, Trump has made every effort to kill Obamacare. Any Obamacare-like program was bad — oops until the coronavirus. Now many programs being proposed by the Trump administration are absolutely consistent with the purpose of Obamacare and suggest that the US would be better off with a national healthcare system. Such change in policy will only increase frustration among the populace as well as increase the lack of confidence in government.

Adding fuel to the “no-confidence” fire was Trump’s claim at a oppress conference Friday, 03/20/2020 that his administration inherited a broken healthcare system from the Obama administration but that he (Trump) had fixed it. Obviously, not everyone agreed. The lead doctor at CDC put his head in his hand as Trump spoke.

Where does all the inconsistency and uncertainty lead? Uncertainty, as discussed in a number of previous blog entries, is often a precursor to a revolution. The US might get lucky and avoid a 5th revolution by voting out Trump and most of the Senate in the November 2020 election.

As of today, even though the coronavirus crisis is still in the early stages, the public seems more than willing to accept Depression-era types of programs to help stimulate the economy and begin to help reduce the income inequities that currently exist. Such programs are more consistent with the Democratic Party and would seem to bode well for the election of Joe Biden.

However, if for whatever reason Trump is re-elected, then the level of chaos and uncertainty experienced during the first term is likely to intensify. While the hard-core Trumpsters might be satisfied, the majority of the population will not be. The extreme discord between the hard-core Trumpster and rational people will increase the probability of a 5th US revolution.

As described throughout the blog, the revolution will be some type of revenge against the elite that Trump continues to support. The revolution – the Revenge Revolution – also will include many of the hard-core who finally wake up to the reality of how much Trump has screwed them.

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