Skip to main content

Torinus right and wrong

John Torinus is a local Milwaukee CEO who writes pro-business articles in the Milwaukee Journal-Sentinel. I tend to appreciate them, and he's pretty reasonable. His latest article "Obama speech was full of anti-business rhetoric," intersects with my recent thoughts: will the Democratic nominee be reasonably pro-middle class, or wildly anti-business? Here's the editorial: http://www.jsonline.com/story/index.aspx?id=730879

And here's my breakdown of Torinus, right and wrong:

Torinus is right that Obama's rhetoric lacks pragmatism on economic issues. He should learn from Hillary, who learned from Bill's partnership with business. Obama is busy riding his populist wave, but will find it difficult to govern effectively if he alienates the business community. Plus, there's reality: we can't run from free trade now, and our economy is largely based on "nothing more than a profit."

Torinus is wrong to imply that political and religious leaders are somehow more corrupt than business leaders. Businesses do an excellent job enforcing a moral code, but people do break the moral code. Businesses keep such problems in-house to protect their brand name. Religious and business leaders are considered public property, and their sins appear in headlines every day. Further, leaders of private organizations have the opportunity to settle out of court and avoid public excoriation. No one has to breach a confidentiality agreement to tattle on a politician. I guess, according to Torinus' narrow wording, Dick Strong does not count as a "Wisconsin corporate executive in recent memory" who was "charged with corruption."

Torinus is right to castigate the government's wild west accounting, but wrong not to place the blame on voters, where it belongs. To paraphrase Torinus, "Voters make the rules, politicians play by them."

Torinus understates the case that can be made for a more progressive tax system. He points out that the rich now provide the bulk of tax receipts to the IRS. Is that supposed to surprise anyone? The rich do not have historically high tax rates--they have historically high incomes! Their piece of the pie is historically large compared to any measure of average wages. The middle class has had enough of those crocodile tears.

Torinus is right to defend the virtues of business. America wouldn't be great without innovation, increasing productivity, or the benefits of local and global trade. But neither Torinus nor Obama have found a unifying economic message for America.

Comments

Popular posts from this blog

Real Estate in America

We sold our house this summer and bought a new home. The experience has led me to reflect on homes and home-buying in America. As in any industry, there are good and bad incentives at work in real estate. A home seller would like to get the highest price for their house and sell it in a reasonable period of time. The industry operates on a commission system so that the agent seeks to sell the house at a higher price. This incentive works, but only to a point. Consider the impact of $5000 on the seller vs. the agent. Six percent of $5000 is $300. After the realty company and purchasing agent take their cut, the agent isn't left with much. A $5000 difference in the price of the house means little to the agent, but a lot to the home owner. Does an agent become successful by getting the highest price or by turning over lots of houses? The answer is obvious. An agent's ideal world is not one where people get exactly the right price for their homes, it is a world where everyone is wi...

New Yorker letter to editor

(In The New Yorker, 2/4/08, p5) Jeanne Guillemin, a senior fellor in MIT's Security Studies Program, wrote an excellent letter to the editor regarding how Americans talk about casualties. I'm unable to find a link to a full-text example, but here is an excerpt: "In wars since 1945, American combat mortality figures have sharply declined, while the exclusivity of the American claim on memorialization has intensified, as if U.S. soldiers were the only casualties in Korea or Vietnam or, more recently, Iraq, and the deaths of many thousands of civilians killed in those distant conflicts merited no acknowledgment and carried no meaning. Whose deaths matter and whose do not always tells a great deal about American politics and culture."

Voter Fraud

There's been a lot of talk in Wisconsin about voter fraud and what needs to be done to prevent voter fraud. I'd like to address what the real voter fraud is and what it is not. There has been no substantial voter fraud proven in this state in recent memory. No statistically significant voter fraud has even been alleged. The accusations that are tossed around have more to do with someone standing too close to a polling station when they hand out literature than with someone actually voting in an illigitimate way. One couple in a recent election voted by absentee, then again at the polling station. They were caught easily. The system worked. The fraud that is used to justify so-called voter reform is not a problem. It's not just fear of getting caught that deters voter fraud today. In modern America, voter fraud is by-and-large a very inefficient way to influence an election. You have to find a group of people who are willing to commit crimes, you have to subvert the system a...