The Faults with Capitalism
In my blog of March 13, 2011, as part of a series of 10 recommendations to improve our economic system, I spoke to the impropriety of public servants leaving public service and immediately becoming highly paid “consultants” or “lobbyists”.
The Effects of Government Intervention and a Review Cymorfund’s Track Record for 2010 and 2011 are found at the following link.
This has Now Become a Political Campaign Issue in the US Republican Nominations
Ron Paul, who has little chance of winning the Republican nomination, has spoken out strongly about this impropriety. His actions follow.
Rand Paul Introduces Amendment To Force Former Elected Officials To Forfeit ALL Benefits If They Become Lobbyists
From: The Daily Bail – 12:03pm – February 4, 2012 (Video) Sen. Rand Paul on the Senate Floor – Jan. 31, 2012 This law is approximately 40 years overdue, and it took a neophyte Senator to be the first to propose such legislation in the history of the U.S. Senate. $20 bucks and box of Cracker Jack says it has exactly zero chance at passing our captured Congress. — Another short clip of Paul discussing Ammendment 1490 to the STOCK Act.
What Makes Common Sense in the USA
It is a soft barrier in the USA between what they refer to as the Freedom of Individuals and the Rights of Individuals. Without turning this commentary into a philosophical discussion, let me just limit this comment to some obvious conclusions.
The successful person in the USA believes that he/she should be entitled to pursue any course that they wish, so long as those actions are not criminal. Therefore when a person has acquired some knowledge, insight or connections through public service, that person feels fully entitled to take economic advantage.
On the other hand, this gives an unfair advantage over those without that knowledge, insight or connections. Obviously this causes inequities. It can be detrimental to the country as persons with private agendas can influence elected officials in directions that are bad for the country as a whole. It also causes the unfair enrichment of those who should be giving their time and efforts for the benefit of the country …. and so on.
The following repeats some of my commentary from that earlier blog of 2011.
The duties of persons leaving the private or the public sector for the other sector
There seems to be little understanding of the difference between earning money as an individual, and the selflessness of serving in the public realm. The definition of when a person can shift from one sector to the other, and the obligations of a person to the sector he/she is leaving have escaped us. The result is bad policy that protects the status quo.
How Can Government Attract the Best and the Brightest
This is a difficult subject. On the one hand, the private sector produces the best and the brightest and government always needs people of this caliber to help govern the country, to create appropriate laws and regulations.
These people understand the sectors from whence they come. They have insight into what is wrong and what is right. They know what to implement to bring greater prosperity to the country and to the world.
Yet there is something wrong with the morality of how this is done.
Outrageous Executive Bonuses Rewarding Inappropriateness
Abuses occur, and some of those abuses are astounding in their magnitude. A recent example is the bailout of the financial institutions with the public’s money and then the chutzpah of the financial executives to give themselves enormous bonuses. You and I know that the bonuses were in reality, a bonus for screwing the government.
The people in government who authorized these enormous payouts, were former, and future executives of those companies receiving the payouts. Yes – shake your head. It is quite remarkable in its obscenity.
I would like to say to people – have a look at your own standards of morality. You should scorn people that move freely between the sectors only to protect their own interests and enrich themselves. They should be reviled like O J Simpson, like Bernie Madoff.
A Moratorium on Service
At a minimum, there should be a moratorium of time following government service, when a person who has moved to a government position, cannot return to the private sector.
A Pension Reward
Perhaps government should provide a full 5 year pension at an attractive rate, with the provision that the person in order to get this pension, cannot rejoin the private sector in any capacity for those 5 years.
Making Money Without Shame
In some cultures, executives fear public exposure and the shame of exposure. In America, there is little shame of success, regardless of how achieved. We eagerly buy books written by convicted felons. We seek out the companionship of famous people even if that fame came from notoriety – think of O J Simpson, or Michael Jackson.
Perhaps our society is too diverse to have a historical culture that causes us to avoid people that have been shamed.
The views expressed in this blog are opinions only and are not investment advice. Persons investing should seek the advice of a licensed professional to guide them and should not rely on the opinions expressed herein. This blog is not a solicitation for investment and we do not accept unsolicited investment funds
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