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usrevolution5

~ USA Headed for a 5th Revolution! Why?

usrevolution5

Category Archives: Causes of the Revolution

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

#14 Moving USA Back to the Center. Where to Start.

08 Wednesday Jan 2014

Posted by Jordan Abel in Causes of the Revolution, Personal Stories, Societal Issues

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(Readers: Please note this blog is constructed as a story about the 5th revolution in the United States. While not all chapters are linked, I think the story will be more meaningful by starting at the beginning. Read one or two segments each day and you will catch up quickly.)

Scene: JC and Jordan after discussing some other issues. Jordan’s Office.

JC: “OK Jordan, we agreed to wrap up for today on discussing education. You wanted to talk about something else. I’m ready…if you pour me a glass of wine.”

Jordan: “I hope you like a hearty cabernet from Sonoma County. That’s all I have on hand.”

Jordan: “I’m your kind of woman. Pour me a glass, please. Now let’s talk.”

  122913_1337_14BringingU2.png

Jordan: “OK, here’s the question. #1, ‘Does money distort people’s thinking?”

JC: “Duh, Jordan. That’s the question? You know it distorts people’s thinking. Now ask me the real question.”

Jordan: “How do we use the revolution to bring people back to a more balanced set of values? More in the center.”

JC: “Now that’s more like it. You talking center of what? Politics? Values? Helping others? What’s important in life? Respect for others? Education?”

Jordan: “Yes to all.”

JC: “Jordan that is a tall order. Where are you headed with that question? This sounds like a couple of glasses of wine.”

Jordan: “The revolution came about in large part because the middle class in this country was decimated. Most people talk about income when referring to the middle class. I want to expand and talk about a value set.”

JC: “You asked me if money distorts values. I say ‘yes.’ Are you saying that other values are distorted with money?”

Jordan: “Not for everyone.  For a whole group of people, however, the more money they have, the more self centered they seem to become. Again, not everyone but a large group.”

JC: “Is money the cause or the effect?”

Jordan: “I’m no psychoanalyst…”

JC: “No, just a psycho. That was such an easy set up, Jordan.”

Jordan: “C’mon, JC. It seems when wealth started to be more concentrated, the more society shifted away from middle class or center values.”

JC: “A shift like that occurred in the 1920’s and look what followed — the Great Depression. But also think what happened to societal values.  The Depression and WWII were great equalizers. Nearly everyone suffered, no matter how much money they had. As a result, the country moved back to the center.”

Jordan: “And notice what happened economically after WWII. All classes gained, many people got a great public education, we as a society started making progress cleaning up the environment.  What else?  Politicians actually worked together to get things done.”

ReaganJC: “As I look back, all of what you just described seemed to start coming apart during the Reagan Administration.”

Jordan: “A lot of Republicans would disagree with your conclusion.  But if you look at data for income distribution and attitudes, there is a lot of empirical evidence to support your observation. But the question is, ‘Was Reagan a major cause of the change or were people just ready for Reagan and tired of sharing with others?'”

JC: “Whether sharing is the right term or some other term is appropriate, I don’t know. What I do know is when people and organizations focus only on self is when we start to have problems. Reagan claimed over and over and over again that government was the problem, not the solution. But, hey Mr. President Reagan, who is the government? People are the government. So for Reagan, those people were the problem.”

Jordan: “We need to avoid such divisiveness once the revolution calms down.”

JC: “I’ll tell you a good first start is to change the tax laws. Many people who have joined the revolution are frustrated because some people got way too greedy, and then got even greedier. The greedy could not get enough money. I’m not a socialist but the tax laws seem to reward white-collar thievery, especially on Wall Street.”

Jordan: “The focus on money, money, money tears apart countries, organizations and families for generations. One that hit home to me recently was our temple. We expanded a few years ago much to the chagrin of many congregants.”

JC: “So what’s the problem, already?”

Jordan: “The problem already is threefold. #1, the capital campaign fell short because one of the alleged big dogs moved and did not fulfill the pledge. #2, operating costs increased dramatically. #3, membership is flat to down and the expansion was to be funded with new members.”

JC: “Didn’t anyone think about what might happen if?”

Jordan: “Yes, and those of us who raised questions were ignored. Because of my manufacturing background, I kept hammering on what would likely happen to operating costs with two times the floor space. My concern was costs would at least double and likely increase even more. But those comments fell on deaf ears. I was not part of the old boy big-donor network.

JC: “What’s going on now?”

Jordan: “The temple seems to have lost its soul for lack of a better term. The expanded building has some nice features but most members I talk to think the interior feels cold and impersonal. And most of the time the conversations from staff and some clergy are about money, money, money and not people, religion or ideas.”

JC: “What about the head rabbi?”

Jordan: “Promoting all kinds of causes outside the temple.  Seems to me the rabbi seems focused on building a reputation in order to get a higher position in the Reform movement or some position in politics.

JC:  “And what about the congregants?”

Jordan:  “The congregants are left holding the bag…and many are very frustrated. Congregants have given the rabbi a nickname — robot rebbe.  Not very nice but seems appropriate.”

JC: “What’s the solution?”

Jordan: “Like many people and organizations that need to change, most ignore advice. Change only occurs when they hit rock bottom. My guess is the temple will need to face closing…or even close…before any real change is accepted.”

JC: “What about a change in clergy?”

Jordan: “Changing out robot rebbe – err, rabbi – would be a good start. And then changing some staff.”

JC: “The problem seems similar to what this country faces. But are you certain the temple will fail before changing?”

Jordan: “I’m not 100% certain but my track record on these type predictions is very good. Not sure why it is so good but it is.”

JC: “I’m not sure what else to say. Sounds as if the temple is likely to keep on the same path until one day it realizes no more money, no more congregants and then no more temple…or there is a revolution started by the congregants.”

Jordan: “A revolution might be the only solution.  Most people…and I am in the same boat sometimes…seem to have a very hard time either understanding consequences of behavior or acknowledging that behavior has consequences.

JC: “For most people, it is probably some of both. Jordan, we are not going to solve this problem today…and I need to go. And Sir Ralph needs to go, too.”

Jordan: “OK, JC, just bail out on me. I know you have to go. Thanks for the time. And you, too, Ralph. I do want to continue this conversation? Talking to you is a great help.”

JC: “Glad I can help, Jordan. C’mon Ralph. Let’s go.”

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Thank you for your response. ✨

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#8 Cleo and Queeny Discuss CEO Pay and Taxes

28 Saturday Dec 2013

Posted by Jordan Abel in Causes of the Revolution

≈ 1 Comment


(Readers: Please note this blog is constructed as a story. While not all chapters are linked, I think the story will be more meaningful by starting at the beginning.)

Scene: Cleo and Queeny Back at the Workshop

Cleo: “Queeny, let me take this presentation – it’s about pay for CEO’s and how it compares to pay for average workers. Caesar is…or at least was…always whining that other CEO’s make more than he does.”

Queeny: “George III does to. Even though we had our own business and we owned most of the shares, he was always comparing his salary to someone else. Never enough. He’s always been jealous that Caesar makes more than he does.”

Cleo: “I’ve read that CEO salaries increased much faster than the average worker. But how much?

Queeny: “Look at this chart. It compares how much compensation increased between 1978 and 2011 for CEO’s and the average worker.

Queeny: “Am I reading this chart correctly? Doesn’t look like there’s hardly any increase for the average worker.”

Cleo: “You’re right. Over the period, CEO pay increased over 700%.

Queeny: “Wow. CEO pay went up 700%? Can that be right?”

Cleo: “That’s what this chart says.”

Queeny: “Now look at pay increases for the average worker. Compensation for the average Joe went up less than 6%. Can you believe it?”

Cleo: “Pay for CEO’s is up, up, up and pay for regular workers is flat, flat, flat. Caesar never did talk about worker pay, only CEO compensation. No wonder people are so upset with the wealthy.”

Queeny: “Ole King George III said we had to move some operations to China because worker costs were too high. He sure didn’t sacrifice – rather we didn’t sacrifice – and the workers did. I don’t feel so good about how we treated those employees. Some people that we let go had been with the company more than 20 years.”

Cleo: “When Caesar laid off people he said the company gave them a retirement package and some sort of buyout bonus based on how many years at the company. At what did Caesar get for giving those people an early retirement? He got a nice bonus check and more stock options.”

Queeny: “Something is wrong with the system when someone spends all those years working for a company and making money for the owners, then boom, they are out of a job and the CEO makes more money.”

Cleo: “I know capitalism can be brutal but the focus seems to be out of whack. When did CEO’s become so valuable and everyone else so expendable? Seems like a lot of self aggrandizement to me. And a lot of greed.”

Queeny: “You know the more information we see from the workgroup, the better I feel about joining this revolution.”

Cleo: “Me, too. We’ve been so out of touch and so self centered. What happened to everyone working for the common good? We can all be different and still help each other.”

Queeny: “OK one more review, then we need to get the info uploaded so members can review before the next session.”

Cleo: “Make me laugh, Queeny. I’m not laughing about the information. That’s serious stuff. I’m laughing about the two of us. Here we are editing the presentations, uploading the information to the cloud…all that techie stuff.”

Queeny: “We are anything but techies but we have come a long way using computers. Our kids and grandkids think we are still in the Stone Age but I’m proud of all the progress we’ve made.”

Cleo: “OK final topic. Before we move on I want to make one more observation about income distribution. First, let me emphasize that I think religion and politics don’t mix well.

Queeny: “I agree.”

Cleo: “That said, most Republicans seem to promote Christianity. All my religious teaching has included emphasis that we need to take care of those in need. In Deuteronomy there is mention of what might be called a safety net.

Queeny: “Yet, a number of self-proclaimed religious-right legislators keep cutting holes in the safety net. That really bothers me.”

Cleo: “I though some Federal legislators were bad. But the state legislators in North Carolina might be the worst. These yo-yo’s cut payments to unemployed workers, reduce teachers’ salaries, and a bunch of other crazy stuff. No wonder the revolution started in Charlotte. Makes me want to go back to Rome.”

Queeny: “You’re not from Italy.”

Cleo: “Not that Rome, Queeny. My Rome. Look, I understand there’s a legitimate argument about how big the safety net should be. But effectively cutting all support for people out of work makes no sense.”

Queeny: “Especially when many jobs were eliminated through no fault of the worker. I’d be upset, too.”

Cleo: “OK, I made my case about religion and the safety net. Let’s get back to the last topic of the workgroup.”

Queeny: “Here’s an interesting one – taxes as a percent of income. How many times have I heard that a certain percentage of the population pays no taxes.”

Cleo: “How true is that, anyway?”

Queeny: “According to the information from the workgroup, the only truth to the claim is about income taxes, Federal and maybe some state taxes. But there are all kinds of taxes that people pay – sales tax, excise tax on phone bills, property taxes.”

Cleo: “But renters don’t pay any property taxes, the property owner does.”

Queeny: “Cleo, c’mon. You think property owners don’t raise rent to cover property taxes? Of course they raise the rent. The difference is the owner gets to deduct the property taxes off income taxes and the renter cannot.”

Cleo: “If this chart is right, people with the lowest incomes pay someplace between 15% and 20% of their income in taxes.”

Queeny: “Tell me that again. I’m not sure I heard you correctly.”

Cleo: “You heard me right. For people with lowest incomes, $1 out every $6 goes for taxes. For the next group it’s more than $1 out of every $5 goes for taxes.”

Queeny: “So overall the tax burden is…what is the term…regressive. In other words, the tax burden is harder on people with lower incomes than higher incomes. Right?”

Cleo: “The burden is not really regressive since people with more income have a slightly higher over tax rate. But, for people with barely enough income to buy groceries and pay rent, taking one out of every $5 or $6 to pay taxes eats up money that could otherwise be used for food, feeding kids, clothing…necessities. How would you like to have to pay taxes and then have no money for groceries?”

Queeny: “We’re starting to sound like socialist.”

Cleo: “Well, if being fair is being a socialist, then I am a socialist. I’m not talking about everyone getting the same income or even income based on what someone thinks they need. I’m talking about being fair.”

Queeny: “You really believe what you are saying?”

Cleo: “Yes. People should have enough money to eat decent food and have decent shelter.”

Queeny: “Are you saying everyone should qualify?”

Cleo: “Yes, but. And the ‘but’ is that I am also saying that who are able to work should work. If there are no jobs in the private sector, then the person needs to work in a government-sponsored job.”

Queeny: “This really does sound like socialism.”

Cleo: “Queeny, think about it the Great Depression. Highly qualified people – I mean highly qualified people – could not find jobs. The government put them to work on lots of useful projects. Some of my family helped build the Tennessee Valley Authority dams and power stations.”

Queeny: “Part of my family worked in one of those agencies – WPA or something – and built roads and bridges.”

Cleo: “Does the country need to have its infrastructure repaired? Yes, everywhere in the country. We’re still using many of those roads and bridges your family helped build. So let people who need a job work on infrastructure repair.”

Queeny: “Seems like a good idea to me. I would rather have people working and being productive than doing nothing and collecting checks.”

Cleo: “How are we going to make this happen?”

Queeny: “Let’s ask the workgroup for ideas. Speaking of the workgroup, we need to get the packet out the door…rather uploaded.

Cleo: “OK. Call this a wrap.”

#5 The Awakening

14 Saturday Dec 2013

Posted by Jordan Abel in Causes of the Revolution

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(Readers: Please note this blog is constructed as a story. While not all chapters are linked, I think the story will be more meaningful by starting at the beginning, Entry #2.  More about the author and background of the blog, Entry #1.)

——-

Scene: Restroom in indusial building.

King III:     “It really pisses me off having to clean toilets for those scum bags.”

Caesar:     “Reminds me of my days in basic training…before I became an officer…”

King III: “…and a gentleman.

Caesar:     “King III, you never went in the military, did you.”

King III:     “No need. My lottery number was #310 so I was way down the list. Besides the family knew a doctor who would declare me 4F. Military is not my style.”

Caesar: “It has its benefits. Teaches everyone discipline, some basic skills and allows people to get an education who have little or no money. I just don’t like the part about going to war.”

King III: “You getting brainwashed? You’re starting to sound like some Yankee liberal.”

Caesar: “No I’m not getting brainwashed. We are the ones who went astray. All we had to do was keep the people fed and let them believe they could be successful or their kids could be successful if they worked hard.”

King III: “We did and they became leeches.”

Caesar: “No we didn’t. I started with nothing but I made it.”

King III:  “But you worked hard. You deserve your success.”

Caesar:  “A lot of people work hard and still don’t make it. How many people clean toilets all their lives and end up with nothing?”

King III: “So what?”

Caesar: “‘So what?’ is that I could have been one of them. But I got lucky and got an education. And I got lucky and got hired by a company where I fit the management style.”

King III: “So what’s stopping people today from doing the same thing you did?”

Caesar: “We’re stopping them. And we need to change and begin to start knocking down barriers that we erected.”

King III:  “You do sound like some Yankee liberal. Wake up!”

Caesar: “King III, you need to wake up. Where are we – at the country club playing golf? At the beach house? At the mountain house? Having drinks at the Ritz-Carlton? No, we’re cleaning toilets in a building run by rebels.”

King III:  “So you want to go back 30-40 years and give up all our stuff?”

Caesar: “No. But there are changes we can make that will allow people to become more mobile. To get out of poverty easier.”

King III:  “Are you saying we caused the problem we’re in now?”

Caesar:  “Not all the problem. But we caused a good part of it. And there’s one way to make sure the revolution is managed properly. We need to get involved.”

King III:  “Now I know you are crazy.”

Caesar: “Not crazy, just realistic. Did you ever read a little book titled, ‘Who Moved My Cheese?‘”

King III: “Heard about it but never read it.”

Caesar: “I had not thought about that book until we started cleaning latrines…restrooms.”

King III: “What’s the book about?”

Caesar: “Two sets of characters – mice and little people. Both feed at this storeroom filled with cheese. Over time the little people start to take the cheese for granted. They also build their life around the cheese. The mice don’t. Then one day the cheese is gone.”

King III: “What happens?”

Caesar: “The mice realize the cheese is gone, don’t overanalyze the situation and begin to look for new cheese. They have lots of fits and starts but they find new cheese.”

King III: “What about the little people?”

Caesar: “The little people hem and haw, analyze why the cheese was moved, begin grousing that the cheese was moved and then start to get very hungry. Finally, one of the little people admits the situation will never be the same and takes off looking for new cheese. Like the mice, he has lots of false starts but eventually finds cheese.”

King III: “What about the other person?”

Caesar: “Story never quite says. But here’s what I know. Our cheese is gone and it is not coming back. I’m headed out looking for new cheese…with the revolutionaries. Better start calling them patriots. George III, you coming and going to join us?”

Scene: Cleo and Queeny reviewing the information from the workgroups.

Queeny: “Wow, the workgroups were really productive.  They described problems and solutions that I think I can understand.”

Cleo: “Just to make sure we understand, why don’t we explain the problems to each other? We’ll alternate. If we can explain, then most everyone else should be able to understand….even Fox News.”

Queeny: “Now, now. Don’t be so hard on Fox News. Even they might come around.”

Cleo:  “OK, let me try. The first issue is why is the public’s confidence is so low about government doing the right thing.

Queeny: “Jordan already talked about that.”

Cleo: “Yes, but let’s see if we really can explain it. The group is saying that if there is no confidence in government, then no matter what solution is proposed, someone is going to trash the idea.”

Queeny: “What did the group say was the cause?”

Cleo: “Same as what Jordan talked about. The decline in confidence started under Ronald Reagan. Remember Reagan’s slogan, “government is the problem, not the solution.'”

Queeny: “Confidence went up during the first part of Reagan’s term, then dropped. Bounced back under Clinton Administration, then plunged after Bush invaded Iraq. It’s been up and down under Obama.  Overall confidence is getting dragged down by Congress.  Seems like many of them belong to the ‘Do Nothing’ party.”

Cleo: “What the group really talks about is how much lower confidence is than under Eisenhower.”

Queeny: “Part of the high confidence was probably because of what Eisenhower did in WWII. Lots of people had great respect for him.”

Cleo:  “Wonder what Republicans of today think of Eisenhower? All those government programs, especially the interstate highway system.”

Queeny: “Republicans today probably want to disown him. Too liberal.”

Cleo:  “I think we’re finished with confidence. OK Queeny, you’re next.”

Queeny: “We already talked about this too. The federal deficit – and the data are the same. Since WWII the deficit has increased more under Republicans than Democrats.”

Cleo: “How can Republicans keep claiming Democrats always increase debt when debt seems to increase more under Republicans? I don’t understand. Somebody’s feeding us bologna.”

Queeny: “And it’s not the numbers that are lying.”

Cleo:  “Whew. This is heady stuff – at least for us. Let’s get some coffee, then we can tackle a couple of other problems.”

Scene:    Enter Caesar

Cleo:  “Well, well, well. Look who’s here. Hail Caesar!”

Caesar: “Cut the drama. Aren’t you glad to see me?”

Cleo:  “Yes, I am. Come here.”

Queeny: “Caesar, where have you been anyway? You OK?”

Caesar:  “Yes. And I have also been cleaning toilets.”

Queeny: “A little payback after all those years. Where’s my hubby King George III?”

Caesar: “Still cleaning toilets as far as I know.”

Cleo: “How did you get out?”

Caesar: “I finally realized what the revolution was about and why you two joined Jordan and them.”

Cleo:  “Great to have you back.”

Caesar:  “By the way, where’s Jordan? The rebels…I mean patriots…agreed to let me go if I reported to Jordan within 24 hours. He is supposed to be around here someplace.”

Queeny: “Last time I saw Jordan he was at the country club. The group is using Pigeon Hollow as headquarters.”

Caesar:  “Oh no. Pigeon Hollow as HQ for the revolution? This new order of things is hard to get used to.”

Cleo: “As much as I want you to stay, you need to go find Jordan. Don’t want to be AWOL.”

#4 Government Is the Problem?

14 Saturday Dec 2013

Posted by Jordan Abel in Causes of the Revolution

≈ Leave a comment

(Readers: Please note this blog is constructed as a story.  While not all chapters are linked, I think the story will be more meaningful by starting at the beginning, Entry #2.) 

Cleo: “Whew, I feel better. Now I can think. What’s next?”

Jordan: “Let’s talk about whether people believe government can help solve problems.”

King III: “Now that’s a good idea. The answer is no, government can never solve problems. Next topic.”

Queeny: “King George III, you are becoming hopeless. Do you ever listen to anyone? Don’t answer, I already know.”

Jordan: “So King George III believes that government cannot solve problems effectively. And a lot of people believe that…but why and when did it start to change?”

Cleo: “I remember growing up that my parents thought government could solve lots of problems. How did we get a man on the moon if government can’t solve problems? What about all the vaccines? What about the military?”

Jordan: “Good questions. If you look at a chart of people’s attitude toward government, it started to change under, guess who, the Great Communicator Ronald Reagan.”

Caesar: “But he was a great communicator.”

Jordan: “I agree. He was so good that he convinced people he was a conservative, yet increased debt dramatically. Reagan’s mantra during his campaign for president and even at the inaugural address was “In this present crisis (economic), government is not the solution to our problem; government is the problem.” 

Caesar: “Do you have a chart tracking people’s attitudes?”

Jordan: “Yes, I do have a chart with data since 1977. Word of caution. Look at the trend line and not the individual data points, which bounce all around.”

Caesar: “Spoken like a true statistician.”

Jordan: “Caesar, you know as well as I, that people look at a few data points and call it a trend. Just a reminder.”

Caesar: “OK, what’s the chart look like?”

Jordan: “Since 1977, there have been regular surveys asking respondents, “How much of the time do you think you can trust the government in Washington to do what is right – just about always, most of the time or only some of the time?” 

King III: “I can tell you what my answer is. Democrats, zero. Republicans, almost always.”

Queeny: “King III, has it occurred to you why we are sitting at this table effectively being held hostages?”

Jordan: “Back to the chart. There are year-to-year swings in attitude. In the late 1970’s, for example, attitudes were negatively influenced by high inflation, slow economic growth and the hostage crisis in Iran. In the early 2000’s, attitudes were positively influenced by government actions following 9/11.

Caesar: “But look at attitudes since. Wow. Horrible.”

Jordan: “And attitudes the last couple of years have gotten worse.


Caesar: “You started this part of the conversation claiming you thought President Reagan contributed to the decline. Why did you say that?”

Jordan: “It’s one thing to run a campaign about changing how things operate in Washington or some state capital. It is quite another to include in your inaugural speech that government is the problem and not the solution.”

Caesar:     “Well, it’s not the solution for all problems.”

Jordan: “I agree government is not a solution to all problems. But do you think the CEO of an organization should keep telling all the employees they are the problem and not the solution? Reagan was CEO of the federal government and the country.”

Caesar: “Certainly an unusual approach and probably not the best way to inspire the workforce or the shareholders – that is taxpayers.”

Jordan:  I know it’s hard to make a direct connection between Reagan’s mantra that ‘government is the problem, not the solution’ and the deterioration in confidence in government, but how often is something repeated over and over again and people start to believe it?”

Queeny: “I think that’s called advertising.” 

Jordan: “Great point, Queeny. Companies pay billions of dollars to have the public begin to believe their message. And what do we have with Reagan? Free advertising pounding home the message that government is bad.”

Cleo: “If you were an employee – direct government employee or legislator – how would you feel if every day the CEO said you were the problem?”

Queeny: “How would you feel as a customer if every day the CEO of the organization providing you services said the organization was the problem? I don’t think I’d feel very good.”

Jordan: “Apparently a lot of people didn’t feel very good. Look what’s happened to trust in government since. One things for certain. Reagan was a good communicator. His training in Hollywood paid off. He read scripts very well.”

Caesar: “I almost hate to say this but presidents might be more effective if they had some training to be an actor. Think about Bush 43 and Obama. Both would have benefitted from some training.”

Cleo: “Jordan, what’s next? This is getting interesting.”

Jordan: “Trickle-down economics. Why it helps the rich and why little, if any, trickles down to the poor.”

Queeny: “You know, I never thought about economics that way. In fact, I’m not sure I ever thought much about economics. But from what I think you are saying is people can work hard, do all the right things and still not get ahead.”

Jordan: “You got. And lots of data to support the statement.”

Cleo: “I’m starting to get queasy thinking about all those people who were laid off while we made all that money.”

King III: “Stop it. You and Queeny sound like a couple of screaming liberals. You want to give up all that we have?”

Caesar: “King III’s right on the money. What’s happened to you two? Keep up this kind of thinking and no more beach house, no more weekend farm, no more airplanes. Are you two crazy?”

Cleo: “Unless I completely misread the likely outcome of this revolution, all those things are going away anyway.”

Queeny: “For once, I am going to take a stand on my own. Old King III, you do what you want. But I’m going to join the revolutionaries…I mean patriots.”

Cleo: “I’m with you Queeny. Let’s start a company.”

Caesar:     “You two starting a company should be a real trip.”

Queeny: “Speaking of trips, Caesar and King George III, are you coming with us?”

King III: “Not now. You guys are nuts.”

Jordan: “Caesar, King III – sure you don’t want to join Queeny and Cleo?”

Cleo: “Let’s get out of here Queeny. We’ve spent many a night on our own when Caesar and King George were on business trips or those golfing trips.”

#3 When Did the Deficit Happen?

14 Saturday Dec 2013

Posted by Jordan Abel in Causes of the Revolution

≈ 1 Comment

(Readers: Please note this blog is constructed as a story about the 5th revolution in the US.  While not all chapters are linked, I think the story will be more meaningful by starting at the beginning of the Revolution, Entry #2) 

Jordan:     “Let’s discuss two issues that seem to have changed how people think and act.”

King III:     “I’m going to guess. You don’t like Republicans because #1, they are fiscally conservative and #2 they think government is the problem.

Jordan:     “King III, you’re partially right.  But your analysis is backwards…as usual.”

King III:     “There you go again. Trying to turn black into white and red into green.”

Queeny: “King III, would you be quiet and listen for a change? You remind me of Mr. Know-It-All on that cartoon show. What was it?”

Caesar: “Bullwinkle. One of my favorites.”

Queeny: “That’s right. Now King George III, be quiet and listen.”

Jordan: “OK, I’m going to show you a chart first, then discuss what it means. This chart addresses King III’s claim that Republicans are fiscally conservative.”

King III:     “Where did you get the data, some liberal think tank. You should be talking to the Heritage Foundation. Now that is a top-notch, unbiased group.”

Queeny: “III, didn’t I ask you to be quiet. In case you hadn’t noticed, you are not in charge and these people do not work for you. You need to listen and maybe you will learn something…for a change.”

Jordan: “Thanks Queeny. Having been around King George III before, I’m used to his style. And your description as Mr. Know-It-All from Bullwinkle is spot on.”

Cleo: “C’mon, get on with this.”

Jordan: “OK, this chart displays debt as a percent of GDP. Think of your household income and then how much debt you have.”

Queeny: “Are you talking about credit card debt, personal loans and say even a mortgage?”

Jordan: “In very general terms, yes. So think about when you bought your first house. How much income did you have and how much was the mortgage?

House

Caesar: “I hate to think of it. We really stretched to get a nicer house. I think our mortgage was 3-4 times our annual income.”

Jordan: “I know the comparison to national economy is not quite the same, but at that point your debt equaled 300-400% of income.”

Caesar: “Probably a bit more if you added in the credit cards and college loans.”

Jordan: “Whatever the actual number, at least 300% of income.”

Caesar: “Minimum.”

Jordan: “Now, let’s look at Federal debt as percent of gross domestic product, or GDP. And III, don’t get all exorcised that the comparison between government debt and household is not exactly the same.”

Cleo: “What do those up-and-down lines mean?”

Jordan: “The lines separate four periods after WWII that we want to discuss. #1 is WWII to 1980; #2 years 1981-1992 under Republican Presidents Ronald Reagan/George H.W. Bush; #3 years 1993-2000 under the Democratic President William J. Clinton; #4 years 2001-2009 during the Republican President George W. Bush; #5 years 2009 with a forecast thru 2016 under President Obama.”

King III: “Just looking at this, I know you had to distort the data.”

Queeny: “King III, I don’t say this very often, but would you just shut up and listen?”

Caesar: “For fear of stating the obvious…and I confess I did not realize this…Ronald Reagan was not what I would describe as a fiscal conservative. In fact, the spending looks more like our definition of a ‘tax-and-spend’ liberal.

Jordan: “The spending is right. But unlike the so-called ‘tax-and-spend’ liberal, Reagan just spent…without the tax revenue to pay for it.”

King III:  “But Reagan had to spend money on defense.  To counter the threat by the Russians.  Bush 43 has the threat after the attack on 09/11.”

Queeny:  “Just for a minute, let’s assume all the increases in defense spending can be justified.  Like Jordan said, then why didn’t Reagan and Bush 43 pay for the extra spending?  They just ran up the deficit?  If I recall correctly, taxes were cut under Bush?”

King III:  “But all that extra defense spending…”

Queeny:  “King III, I don’t understand your logic.  You’re saying, or at least implying that running up the deficits for defense is OK as long as Republicans are in office?”

Cleo: “Children, quit bickering.  Let’s get back to the data.  Am I interpreting this chart correctly? Under Reagan and then Bush 41, debt as a percent of GDP about doubled.  Is that right?”

Jordan:  “Yes. The most important thing to remember, During the Reagan Administration, the US switched from being a major creditor to the rest of the world to the world’s #1 debtor nation.  Whether you think the increased spending under Reagan was justified or not, the fact is the spending was never paid for and the deficit increased dramatically.”

Queeny: “You are kidding, right?. The US became the #1 debtor nation under Reagan?”

Jordan: “Pardon me for all the numbers but bear with me. At the beginning of the Reagan Administration, debt was about 32% of GDP. At the end of the Reagan Administration, debt was about 53% of GDP, an increase of about 65%. If one counts the Bush 41 as a continuation of the Reagan Administration, debt increased from 53% to about 66% of GDP.”

Cleo: “So if you take Reagan and Bush 41 combined, debt as a percent of GDP increased more than 100% – from about 32% to 66% of GDP. Wow.”

King III: “Yeah, but what about debt under that socialist FDR?”

Queeny: “Would you just quit yapping and look at the chart? The increase in debt under Reagan/Bush 41 seems to be about the same proportion as during the 1930’s.  Back then we were in the Great Depression and the Roosevelt Administration implemented New Deal programs. So there!” 

Jordan: “Queeny, I like your style. You should be explaining this.”

Queeny: “Some people just keep spouting out statements despite facts to the contrary.”

Jordan: “One more comment, then we can take a break. Since WWII, how many times do you think the budget has been balanced?

King III: “Ten times and all under Republicans.”

Jordan: “Well, you’re just about right for the number of times. Actually 12. But 9 times out of 12 were Under Democratic presidents, not Republicans.

King III: “Ok, Mr. Smartguy, when was the last time the US had no outstanding debt?”

Jordan: “Andrew Jackson, I think. But I do know it was before the Civil War. We have been in debt ever since.”

Cleo: “May we take a break, please. I have to go.

Caesar: “Go where Cleo?”

Cleo: “You know where. After a break I would like to continue.”

#2 The Revolution Begins

14 Saturday Dec 2013

Posted by Jordan Abel in Causes of the Revolution

≈ 4 Comments

July 14, Bastille Day

Scene: Small dinner party, upscale neighborhood, Charlotte, NC.  Guests in dining room just finishing dinner, sipping French wine and awaiting dessert, chocolate cake and tea.  Front door bursts open and three armed men quickly enter. 

010614_1311_17NewIncome1.jpg

Man #1  “Everybody sit tight.  Hands on the table.”

Host: “What are you doing?  Get out now!”

Man #1: “Shut up.” And starts laughing.

Host:  “What’s so funny?”

Man #1:  “I told you to shut up.  But I’ll tell you what’s funny.  You…all of you…are in for a big surprise.”

Guest #1:  “What do you intend to do?’

Man #2:  “We are going to switch roles.”

Host:  “Switch roles?”

Man #2:  “We are going to start living like you – the 1%.  And you are going to start living like us.  I think you call us leeches or something like that.”

Host:  “Out now!”

Man #2: “You, my friend, are going to find out what it’s like to drive a beat-up van, live in a trailer and get by with a wee bit of cash and no credit cards.  And a job with minimum wage.”

Host:  “That’s not fair.  We’ve worked hard and deserve this house, a house at the beach and my Mercedes.  What have you done other than collect welfare checks and food stamps?”

Man #2:  (Pointing at Guest #1) “You…let’s call you Fat Man…ya’ know we all used to work at your factory.  Work was hard but the pay was OK.  But then you moved production to China.”

Fat Man:  “I had to move production.  You workers wanted too much money.  And I was not making enough money for all the hard work I did.”

Man #2: “Let me see if I understand, Fat Man.  You weren’t making enough money?”

Fat Man: “That’s right.  I was taking all the risk.  I was CEO and I deserved to make much more.  All you did was punch a clock and get a paycheck.”

Man #2: “Fat Man, you might be CEO and think you are the only important guy around.  But my kids and my wife think I’m important too.  I worked my tail off for you.  I could tolerate your fancy cars and house in the mountains and your arrogant attitude as long as I was feeding my family.  And my kids had a chance for a better life.  Then you got even greedier and moved the manufacturing to China.  Why?  Tell me why?”

Man #1: “Yeah, when you closed the plant I lost my house.  Burned through all my savings looking for another job.  What happened to you?  Nothing except you made more money.”

Man #2: “Mr. CEO hot shot, your life and the lives of your friends here are about to change…big time.”

Fat Man: (Pointing to 3rd intruder) “Who’s your silent partner?”

Man #1: “You should know him.  He used to work for you.  One of your big wigs.”

Fat Man:  “Couldn’t be.  I don’t believe you.”

Man #3:  “Well, you do know me.  I did work for you and like a long list of others, got shafted by you.  I’m really surprised you don’t recognize me.  OK, I put on a wig and a beard but I’m still surprised.  (Then removes wig and beard).

Male

Fat Man: “You son of a…Jordan, you traitor!”

Jordan:  “One person’s traitor is another person’s patriot.”

Host:  “What are you trying to prove?  Why are you with these thugs?”

Jordan:  “I would hardly call them thugs and I am not trying to prove anything.  I got all the checkmarks I needed years ago.”

Host:  “Then why get involved with trailer trash?”

Jordan:  “Call them trailer trash if you want but I don’t.  They are hard working people who’ve been shafted by the likes of you and Fat Man.”

Host:  “What did I do to serve this?”

Jordan:  “For starters, you made your money laying off friends and colleagues.  You even fired your college roommate.”

Host:  “They were not fired.  They receive a settlement package.”

Jordan:  “Call it what you want but you put them on the street.  And you?  Well, you got stock options.  Wall Street loved what you did and raised the stock price.  Your former colleagues, you win.”

Host:  “Our costs were too high.  We had to lay off people.  The pension fund managers and the Wall Street analysts were all over us about getting the stock price up.  Plus, the employees got a good buyout package.”

Jordan:  “Let me see if I understand correctly.  You were worried more about making money and what hedge fund managers thought than worried about employees’ lives.  And you wonder why these guys are holding you hostage?”

Host:  “I had no choice.  The Board of Directors…”

Jordan:  “…Hey, cut the crap.  You had a choice and you stayed.  And you made a lot of money by basically screwing people.

Host:  “I didn’t make that much money.”

Jordan:  “I remember the night you took us out to dinner.  You rented a limousine and served champagne.  The reason?  You said, ’We are certifiably rich.’”

Host:  “So what’s the problem with being rich?”

Jordan:  “Nothing wrong with being rich if you earn it fairly and treat people fairly.”

Host:  “You were at a big company.  Nice job, nice car, lots of high-end travel – Europe, Hawaii, Asia.  Aren’t you being a bit hypocritical?”

Jordan:  “Yes, I was on the fast track.  But what I also saw was a change in behavior, starting with a new CEO.  The focus changed from making great products and satisfying customers to making more money, especially for executives.  The greed became a terrible virus, eating away at what had been a great company.  The strategy worked for a while and profits increased.

Host:  “Jordan, you’re way off base.  The CEO was named Businessman of the Year.”

Jordan:  “Businessman by Wall Street standards.  Then the virus overcame the company…and it ended up in bankruptcy.  Had the CEO and his cronies maintained focus on products and the customer, the company would still be kingpin today and everyone would have made more money.”

Host:  “Our company wasn’t like that.  And I always focused on being fair to employees.”

Jordan:  “Make me laugh.

Female#1:  “Stop it you two.  You’re acting like children.”

Female#2:  “I agree.  And breaking into our house.  You’d think this was some kind of revolution.

Man#1:  “It is a revolution.  And I agree the conversation sounds like a bunch of kids.  Let’s all grow up and start acting like adults.”

Man#2:  “First thing we need to do is establish order.  We’ll begin with names.  Fat Man, you need a better name.  Who was king during the American Revolution?”

Jordan:  “George III.”

Man#2:  “OK Fat Man, from now on you are King George III…or III for short.  Your wife sitting to your right?”

Female#2:  “Yes, I’m King George’s III’s wife.”

Man #2:  “Then you’re the queen.  I like Queeny better.”

Man#1:  “Baldy, this your house?”

Host:  “Yes.”

Man#1:  “We need another ruler.  Your balding head reminds me of Julius Caesar.  From now on, we’ll call you Caesar.  By the way, you from Rome?”

Caesar:  “Yes, in a manner of speaking.”

Man#1:  “Caesar’s wife.  That was Cleopatra.  You’re now Cleopatra, or Cleo for short.”

Cleo:  “Cleopatra was married to Marc Antony, not Caesar.”

Man#1:  “Look lady, I chose the names.  Cleopatra was bossy.  You’re bossy and now you are Cleopatra.”

Man#1:   “Jordan, how am I doing with the names?”

Jordan:  “You’re on a roll.”

Caesar:  “OK, we all have names and we are going to act like adults.  But, Jordan, I’d like to know what made you join these guys?”

Jordan:  “You might find it hard to believe but it started back in grad school.  Remember Professor Klein’s class?”

Caesar:  “Yes and what a waste of time.”

Jordan:  “That’s my point.  I thought it was one of the best classes I’d ever had and you thought…and still think…it was a waste of time.”

Caesar:  “Some of those assignments and games made no sense.”

Jordan:  “But they really weren’t games.  They were a test of ethics and personality.”

Caesar:  “C’mon.

Jordan:  “You forget Klein was an expert is psychological warfare.  He was setting us up to test our meddle in stressful situations.  Except he never came out and said so.”

Caesar:  “More psychobabble.”

Jordan:  “The biggest test of all was negotiating with another team to disarm nuclear weapons.”

King III:  “What are you guys talking about?”

Queeny:  “Sounds interesting.  Tell us more.”

Jordan:  “The rules were simple.  Each team had nuclear weapons.  The goal was to negotiate disarmament.  If the teams disarmed, the teams combined got say 1,000 points – 500 points for each team.  I don’t remember the exact number.  If the teams negotiated and then one team reneged and bombed the other team at the end, the team that bombed the other got 750 points and the team that got bombed got zero points.

Queeny:   “So if you operated together, the combined teams would win, but not the individual team.  Right?”

Jordan:  “Exactly.  You needed to work with the other team to get the most points.”

Queeny:  “So what happened?”

Jordan:  “Our team negotiated a settlement.  Caesar’s team negotiated until the end, reneged, and then nuked the other team.”

King III:  “So what’s the big deal.  It was a game, just like Caesar said.”

Jordan:  “The big deal?  Klein was right about these exercises being a reflection of true personality.  To this day I can tell you key members of Caesar’s team.  Were they successful in business?  Yes.  Fair?  Probably not.”

Caesar:  “Like I said, that class was BS.”

Jordan:  “Then why do so many people – all these years later – remember that one day in that one class?  What you did to the other team bothered me at the time.  It bothers me now.  I also think your behavior – your focus on self without concern for others – reflected a change in US society.  That change led to this revolution.”

Caesar:  “Jordan, what really happened to the country?  I know you study this stuff.”

Jordan:  “My view is the country began a major shift when Ronald Reagan was elected.  And the shift was caused in large part by him repeating the mantra, “Government is the problem, not the solution.”

King III:  “Reagan was right.  Government is the problem.”

Jordan:  “Quit listening to Fox News and start analyzing the situation.  Do you have an iPad or laptop handy?”

King III:  “Both.”

Jordan:  “Get them and I’ll walk you through what’s happened since Reagan took office.  No political agenda.  Just facts – but unlike your favorite source of news, this analysis will be fair and balanced.”

Caesar:  “OK, Jordan, save the details for later.  Give us the overview.”

Jordan:  “Since its founding, there has been a revolution about every 50 years.  Based on my assessment this revolution will be number five.”

Cleo: “What do you mean five revolutions?  I can only think of two – the war against the British and the war of ‘Northern Aggression’ when you Yankees invaded our homeland.”

Jordan:  “Cleo, when will people from the South get over it?  You lost.  Move on.  Anyway, here’s my count of the revolutions.

  1. Revolution against British rule, which did not end until the War of 1812
  2. Internal revolution, or Civil War, which began approximately 50 years later, 1861-1865
  3. Industrial revolution – say 1910-1917 – was a combination of an influx of foreign immigrants and migration from farms to cities
  4. Rights revolution, civil rights, women’s rights, environmental rights occurred late 1960’s, early 1970’s
  5. Fifth revolution, which I am calling the ‘Revenge Revolution,’ which is what we are experiencing now

Slide1

Queeny:  “I never thought of American history that way.  But this is interesting.  Tell us some reasons why this revolution came about.”

Cleo:  “I agree with Queeny.  Tell us more.”

Jordan:  “OK, here we go.”

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