Big Government Means Big Business

In general, federal regulation benefits big business, and local regulation favors small business. Small businesses offer greater freedom and prosperity. Big business stiffles freedom, competition, and prosperity. You can be assured that big business will get bigger unless regulating power is decentralized to local governments. Here are two examples of the Big Government/Big Business effect:

Banks at Risk of Failure Has Reached 15-Year High
Banking regulators are warning that the number of banks at risk of failure has reached a fifteen-year high. The Federal Deposit Insurance Corporation said the number of “problem banks” had risen from 305 to 416 during the second quarter. The FDIC has already shut down eighty-one banks this year. This comes at a time when the nation’s largest banks are getting even bigger due to a series of federally arranged mergers and taxpayer bailouts. JPMorgan Chase, Bank of America, Wells Fargo, and Citigroup now issue one of every two mortgages and about two of every three credit cards. JPMorgan Chase, Bank of America and Wells Fargo now each hold more than ten percent of the nation’s deposits, despite a rule barring such a practice.

Taxpayers to Pay Banks Billions to Fix Loan Mess: A new report by the Center for Public Integrity has found that any of the lenders that helped fuel the housing crisis by issuing risky subprime loans are now lining up to receive more than $21 billion in taxpayer money intended to help bail out borrowers. At least twenty-one out of the top twenty-five participants in the Making Home Affordable program specialized in servicing or originating subprime loans.
(Examples taken from DemocracyNow!)

Maximizing Profits is not the Purpose of Business

Is the purpose of a doctor to maximize profits? Is the purpose of a teacher to maximize profits? Then why do we mistakenly believe that the purpose of business is to maximize profits?

Principle or Expediency

The only difference between a multi-national corporation and an oligarchical government is that one has an army and the other does not. With this perspective, it is easy to see that centralized power of any kind is prejudicial to human liberty. Corporate executives have the same incentives as politicians. If a politician or an executive must choose between principle and keeping her job, she will nearly always choose to keep her job.

For example, the prankster, Andy Bichlbaum, posed as Jude Finisterra, a Dow Chemical spokesperson, to speak about the deadly gas leak at a chemical plant in Bhopal, India that has now killed an estimated 25,000 people and injured another 120,000. He announced that Dow will accept full responsibility for the Bhopal Disaster and will pay $12 Billion for the health coverage of these 120,000 people.

Within a half hour, DOW Chemical's stock dropped $2 Billion until the company announced that, "Jude Finisterra is not an employee nor a spokesperson for DOW Chemical." To this day, the company has not accepted responsibility for its actions in Bhopal, India.

The Federal Reserve: The Undemocratic Branch of Government

Democracy is More Cumbersome than Dictatorship

Semco went through a radical, democratic transformation beginning in 1980. In 1980, Semco employees "each produced an average of $10,800 worth of goods a year." When Ricardo Semler wrote Maverick in 1993, his employees each produced an average of "$92,000 worth of goods a year (adjusted for inflation)--four times the national average; by the value-added standard, productivity rose six and a half times."

If democratic businesses are more profitable and motivating, then why do people insist on creating oligarchical/command-control organizations? Because...
(1) "so often it is power and greed and plain stubbornness that make bigger automatically seem better."
(2) "secrecy is a strong incentive to be conspicuously greedy."
(3) "bureaucracies are built by and for people who busy themselves proving they are necessary, especially when they are not."

"The era of using people as production tools is coming to an end. Participation is infinitely more complex to practice than conventional corporate unilateralsm, just as democracy is much more cumbersome than dictatorship."

(Quotes taken from Maverick by Ricardo Semler)

Democratic Healthcare! Why didn't I Think of That?

"Senator Max Baucus of Montana, the chairman of the Finance Committee, who is leading an effort to draft a healthcare bill, said Thursday the public plan would take the form of an insurance cooperative that would be owned and operated for the benefit of its members, but not run by the government. The Senate finance panel plans to take up the legislation on June 23rd."

President Obama's "uniquely American" version of public healthcare maintains the motivating pressures of the free market, while eliminating the choking costs of high paid executives and excessive profit margins. If this insurance cooperative is set up as a true cooperative and not as another arm of government, we may witness the greatest victory of the Democratic Business Revolution to date.

Next, we need to democratize Amtrak. What would it be like if the people who work for and ride Amtrak were to own and manage Amtrak?

(Quoted from DemocracyNow! 6/12/09)

The U.S. is Not a True Democracy

"Give me a word, any word, and I show you that the root of that word is Greek." (Gus Portokalos from My Big Fat Greek Wedding)

How about Democracy?

'Democracy, democracy, democracy. Ha! Of course! Democracy is come from the Greek word demos, is mean people and from the Greek word kratos, is mean rule. So, who rules in a democracy? The people. You see: people, democracy. There you go!' (Gus Portokalos)

If democracy is rule by the people, the U.S. is not a democracy: (1) Democracies do not maintain favored citizens. Favored citizens are citizens with greater political sway or power than others. Equal political power is impossible to maintain in large communities. Only small communities can possibly maintain equal political power for its citizens. (2) Democracies de-centralize power. Never in the history of the U.S. has power been more centralized. The Federal government has power over our food, currency, energy, land, civil liberties, businesses, etc.
The solution is to create true democracy. The federal government needs to de-centralize all power not granted to it in The Constitution and give that power to the cities of the U.S. If a community is too large to be ruled as a direct democracy, then it is too large to maintain political equality.

Argentina: Capitol of Worker-Run Businesses

More than 75,000 people work in worker-run businesses in Argentina, and that number increases every year.

What Does God Think of Money?

If you want to know what God thinks of money, look at who he gives it to.

Transparency and Limited Power Stop Corruption

"The Church committee (named for Senator Frank Church) looked at a period starting with Franklin Roosevelt and running through Richard Nixon...In every single administration you had failures of control by all the presidents and misconduct by the intelligence agencies...Under all the administrations—six different administrations, both Republican and Democrat—there were misuses of power...(that were) inconsistent with the law and the Constitution.

"The single most important finding of the Church committee was that, if during a time of crisis we ignore the wise restraints that have been put in our constitution and laws to keep us free and keep us strong, we are not only going to make ourselves less free, we are going to make ourselves less safe.

"We’ve slipped as a country into not being as open as we historically (have been) and instead into more and more secrecy, and I think that is one of the underlying root causes (of corruption) that needs to be examined and dealt with." -- Frederick A.O. Schwarz, Jr. (Chief Counsel to the Church Committee)

"Deepest Global Recession Since the Great Depression"

The International Monetary Fund is forecasting the global economy will decline this year for the first time since the Second World War. On Wednesday, the IMF said the global economy would see a 1.3 percent decline in what it called “by far the deepest global recession since the Great Depression.”

(Quote taken from DemocracyNow!)

A Business that is Run Like a City

"Most of the forces that shape the structure of business, including capital markets, business schools, economic theory, a variety of laws, and even our own upbringing trains us to assume that at work you're either an employee or a boss, but never a citizen. So at Equal Exchange we understand why workplace democracy seems such a novel concept. We simply don't accept it." --Equal Exchange President Rob Everts

Equal Exchange is a 23 year-old, $34 million employee-owned firm that is run like a small city where employees act as citizens and the employee-elected Board acts like a City Council.

Bribery is a $1 Trillion Dollar Industry

Daniel Kaufmann, the institute director of Governance at the World Bank, estimates that $1 Trillion of bribes are paid worldwide in both rich and developing countries; One out of every 30 dollars in the world is spent as a bribe.

The World Bank's research "shows that countries which tackle corruption and improve their rule of law can increase their national incomes by as much as four times in the long term, and child mortality can fall as much as 75 percent."

Interestingly enough, the most effective tool to fight corruption has been identified by the World Bank as transparency; ee.gg., freedom of the press, freedom of information, and asset disclosure.

Democratic businesses have found, like the World Bank, that being proactively transparent with all financial information fights corruption, creates efficiency, unity, & understanding, and causes employees to be paid for what they are worth and not for the amount that companies can acquire them for.

Now, if only we could force the World Bank to be transparent...

If you want to help democratize the world, and increase corporate transparency, visit http://www.glassdoor.com/index.htm, enter your salary, and browse the salaries of others within your company and around the world.

(Quotation taken from http://web.worldbank.org/external/default/main?theSitePK=84266&contentMDK=64069844&menuPK=116730&pagePK=64148989&piPK=64148984)

Voters Champion Free Market But Want More Regulation

The American people intuitively know that there is something wrong with American capitalism, but they can't quite put their finger on it.

Rasmussen Reports released a seemingly contradictory report on December 29, 2008--just after the economic crisis began. It seems that 70% of voters believe that a free market is better than one managed by the government; yet, 52% of voters believe that there is a need for more government regulation of big business. However, 65% agree that government and big business often work together in ways that hurt consumers and investors.

Intuition has brought the American people this far, but what are the facts. Nationalization is not democratic because government control is simply a new layer of management on top of the excessive, burdensome layers that already exist.

The way to maintain free markets and regulate corporations at the same time is to truly democratize corporations. Corporations that practice financial transparency, have few layers of management, and offer stock-ownership to all employees are held accountable by the employees themselves and have very little need for government oversight.

(Statistics taken from http://www.rasmussenreports.com/public_content/business/general_business/voters_champion_free_market_but_want_more_regulation)

Do We Love Freedom as Much as our Founders?

90 Million People Will Die as the Result of an Economic Collapse

The world is on the edge of a economic collapse because of the lack of integrity of a few in our businesses. "A new report from the Overseas Development Institute said the collapse of the global economy would cost 90 million lives, lead to an increase to nearly a billion in the number of people going hungry, and cost developing countries $750 billion in lost growth."

In a world where corporations are given the power to determine the fate of billions of lives, is it not only logical that this power be in the hands of the majority that work in these businesses and not in the hands of a few executives.

(Quote taken from DemocracyNow.org)

Bailout Firms Owe $220M in Unpaid Federal Taxes

"A congressional probe has found the top thirteen firms to receive bailout money owe more than $220 million in unpaid federal taxes. Congress member John Lewis of Georgia, the chair of the House Ways and Means Subcommittee on Oversight, says two of the companies owe more than $100 million apiece. The review only looked at the top twenty-three bailout recipients, leaving open the possibility of further owed taxes from nearly 450 remaining companies. The inspector general overseeing the federal bailout says he will investigate whether recipient companies misled Congress on their tax obligations."

Democratic businesses are proactively transparent with their financial information.

(Quote taken from DemocracyNow.org)

Politics & Democratic Business

If you ran the government like a democratic business, who would be correct? Conservatives or Liberals?

(1) Conservatives are correct that regulation is bad. It stifles progress, blocks creativity, hinders adaptation, and humiliates the majority that do the right thing.
(2) Liberals are correct that all centralized power should be regulated and limited by the people whos lives it impacts; ee.gg., banks and depositors, corporations and workers.
(3) Conservatives are correct that "government which governs least governs best" -- Ronald Reagan.
(2) Liberals are correct that workers make better decisions about business than their managers.
(3) Conservatives are correct that the disintegration of morals destroys every great nation. A study published last week shows that a record percentage of American high schoolers cheat. So much for putting political corruption behind us.
(4) Liberals are correct that direct democracy does not cause the poor to steal from the rich. When each person has equal political power, the poor do not care to steal from the rich and the rich are not able to steal from the poor. Which brings me to my next point...
(5) Conservatives are correct that redistributing wealth does not benefit the whole. The Soviet Union and Cuba have taught us this lesson.
(6) Liberals are correct that socialization--if it is at the local level--encourages progress; ee.gg., education, fire department, and health care. When people support their communities, the community supports the people.

14 of Fortune's 100 Best Companies Are Employee Owned

14 of Fortune's 100 Best Companies to Work For are employee owned companies. This is especially impressive when we note that employee owned companies comprise only one percent of the total businesses in the United States.

The greatest obstacle to productivity is disunity. Many managerial layers, unions, and command-control decision making lead to disunity. Employee ownership, however, encourages employee participation, unity, and ultimately productivity.

Athenians Would Laugh at America's Claim to Democracy

To Athenians, an essential feature of democracy was the direct and full sovereignty of the majority of citizens. Appointment to important offices, a two-party system, unelected bureaucracies, a private federal bank, lobbying, judicial life tenure, terms for elective office of more than one year—all these would have seemed clear and deadly enemies of a sustainable democracy.

The prospect that someone could make a life-long career of politics was and is contrary to the principles of democracy. The Athenian belief that political freedom and power was the right of every male citizen created an unparalleled level of stability in the Greek world. The Athenian democracy survived two occupations, constant wars, maintained peace between the poor and rich, and only one Athenian politician was ever assassinated.