Is Ben Stein a closet liberal or is he one of those Nixon-style conservatives who wouldn’t even recognize the modern Republican party? Either way, after all I’ve heard from him over the years, I was shocked to read this in response to a call for essays about what’s “new, hot and exciting — or terrible — in business today.”
The average wage of the American worker adjusted for inflation is lower than it was in 1973. The only way that Americans have been able to maintain their standard of living at the middle and lower ends has been to send more family members to work and to draw down savings or go into debt or both.
. . .
Starting MBA’s at hedge funds, which are basically gaming enterprises, get paid multi-six figure sums. Starting teachers in the state of Florida get paid $28,000 a year.
Here’s what else is new and exciting (or terrible) in money: there is real poverty among the soldiers who fight our wars. There are fist fights to get children into $30,000 a year kindergartens and pre-schools in the right neighborhoods in Manhattan. There are 40 million Americans without health care insurance. There are almost 40 million baby boomers with no savings for retirement. There is a long waiting list for Bentleys at the dealership in Beverly Hills.
There are soldiers’ wives selling blood to buy toys for their kids. There is a man selling non-functioning body armor who threw a $10 million Bat Mitzvah for his daughter.
While on the subject of business, Robert Reich had a great commentary on Marketplace last month about taxing windfall profits in the oil industry. It was a fairly standard liberal argument about reigning in corporate excess, but the kicker comes at the end :
Market fundamentalists who holler that oil companies should be allowed to reinvest their profits in new oil exploration aren’t paying attention to the environmental costs. But the windfall tax should be designed so that, to the extent oil companies do wish to invest in non-fossil based fuels, such profits are exempt from the windfall tax.
It’s a no-brainer. Oil companies are in the money. We consumers gave it to them because there are no competitive non-fossil alternatives. So doesn’t it make sense to use those extra profits to create those alternatives?
And that’s where you’d start to see the “magic” of the free market start to work. Traditionally, these kinds of solutions haven’t really accomplished much. The nearest example I can think of is the money demanded of tobacco companies to fund anti-smoking campaigns. When businesses are forced to work against their own self-interest, the results are typically toothless campaigns that follow the letter of the law, but never really accomplish much.
But the key difference here is that forcing oil companies to invest money into researching alternative energy will force those companies to compete with each other. After all, this isn’t just a fine, but a search for a technological breakthrough that has the potential to reward the company that finds the best alternative to fossil fuels trillions of dollars in profits. This is the search for the goose that laid the golden egg, I just hope Congress had the balls to force short-sighted oil companies to join the hunt.