An American Declaration of Some Importance for All Who Seek Good Governance

Today is the 4th of July in the Gregorian Calendar.  On this day in 1776, delegates from the different British colonies in North America signed in Philadelphia a declaration designed to provide legitimacy for their decision to terminate their allegiance to the king of England and his parliament.  Their argument for such termination was not legal, but philosophical.  Their premise was moral – a judgment on the rights of individuals derived from natural and divine dispositions.

I have a family connection to the acts of the American colonists in 1776.

Gathered in a congress, the delegates of the several British North American colonies In March 1776 resolved:

That it be recommended to the several Assemblies, Conventions, and Councils, or Committees of Safety of the United Colonies, immediately to cause all persons to be disarmed, within their respective Colonies, who are notoriously disaffected to the cause of America, or who have not associated, and refuse to associate, to defend by Arms, the United Colonies, against the hostile attempts of the British Fleets and Armies.

In April 1776, Winthrop Young, my direct ancestor on my father’s side, subscribed to this oath:

We the Subscribers, do hereby solemnly engage, and promise, that we will, to the utmost of our Power, at the Risque of our Lives and Fortunes, with Arms, oppose the hostile Proceedings of the British Fleets, and Armies, against the United American Colonies.”

Then, on July 4, 1776, Lewis Morris, a collateral ancestor on my mother’s side, signed the Declaration of Independence.  His signature:

The moral legitimation used by those delegates also informs the Caux Round Table’s Principles for Government.  The moral principle is that public power is held in trust as a responsibility to serve with honor, fidelity and due care.

The pivotal assertion of the declaration is:

The history of the present King of Great Britain is a history of repeated injuries and usurpations, all having in direct object the establishment of an absolute Tyranny over these States.  To prove this, let Facts be submitted to a candid world.

In short, the king has abused his office, his trusteeship.  As a result, he has lost his authority, his right to rule and manage those who are entitled to benefit from his use of power and prosper under his governance.

The American Declaration of Independence framed that argument as follows:

We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness.  That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed, that whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to affect their Safety and Happiness.

The Caux Round Table Principles for Government frame the principal duty of government as:

Public power is held in trust for the community.

Power brings responsibility.  Power is a necessary moral circumstance in that it binds the actions of one to the welfare of others.

Therefore, the power given by public office is held in trust for the benefit of the community and its citizens.  Officials are custodians only of the powers they hold.  They have no personal entitlement to office or the prerogatives thereof.

Holders of public office are accountable for their conduct while in office.  They are subject to removal for malfeasance, misfeasance or abuse of office.  The burden of proof that no malfeasance, misfeasance or abuse of office has occurred lies with the officeholder.

The state is the servant and agent of higher ends. It is subordinate to society.  Public power is to be exercised within a framework of moral responsibility for the welfare of others.  Governments that abuse their trust shall lose their authority and may be removed from office.

June Pegasus Now Available!

Here’s the June issue of Pegasus.

In this edition, we include two articles.

The first, from Michael Hartoonian, explores a new meaning of civilization. This takes on added pertinence with the recent political assassinations and attempted assassinations here in Minnesota.

Secondly, we republish a piece (with an author’s update) by our fellow, Michael Wright, on how AI threatens to increase knowledge inequality.

As always, I would be most interested in your thoughts and feedback.

What Can You Do for Your Country – Now? Please Join Us In-person on July 24

Given the recent political assassinations and attempted assassinations here in Minnesota, we believe we need to do something about our political culture.

We’ve drafted a statement to be provided to local leaderships and the press.  We would like your help in improving the draft.  

Please join us for an in-person round table over lunch at noon on Thursday, July 24 (please note new date) at Landmark Center.

Cost to attend is $20, which you can pay at the door.

To register, please email jed@cauxroundtable.net.

Event will last between an hour and hour and a half.

No Kings

Recently, some 5 million Americans participated in a “No Kings” day protest, objecting to Donald Trump’s perceived arbitrary and capricious decision-making, his imperious fixation on self.  The slogan, “No Kings,” was shorthand for shouting out, “No Trump.”  It was an iteration in new words of the persistent assertion that he himself – not his ideas only – is a danger to democracy and a dictator in the making.

Opposition to abuse of kingly authority has a long history for Anglo-Americans.  In 1215, the barons of England imposed the Magna Carta on King John to restrain his personal authority.  In 1260 or so, Henry de Bracton, the first legal scholar commenting on English laws, set down the basis for a politics of “No Kings.”  In his treatise, he wrote in Latin: Ipse autem rex non debet esse sub homine sed sub deo et sub lege, quia les facit regem – “The king must not be under man, but under God and the law, for the law makes the king”; non est enim rex ubi doninatur voluntas et non lex – “There is no king where will rules and not law”; and Et ideo si rex fuerit sine fraeno, id est sine lege, debebt et fraenum apponere – “Also his curia, namely, the earls and barons, because if he is without a bridle, that is without law, they ought to put the bridle on him.”

Here, the rule is set down clearly: the law makes the king.  A king acting without the law – an outlaw – is no man to be obeyed.

Later, in 1399, King Richard II was deposed by the “earls and barons” and clergy of his realm.  One of the reasons for his being removed from his throne was written down as:

The King being not willing to maintain and protect the just laws and customs of the Realm, but endeavoring to gratify his pleasure in every thing, according to the arbitrariness of his Will, when the laws of the Kingdom were declared and expounded to him by his justices and others of his Counsel; and when they would desire him to administer justice to his subjects according to those laws, the King with a fierce and stern countenance, would tell them sometimes, that the laws were in his mouth, and at other times, that they were in his breast, and that he alone could make and alter the laws of his Kingdom; and being seduced by that opinion, would not suffer justice to be done to his subjects, but by his threats and menaces forced multitudes of his subjects to desist from the prosecution of their rights at the common law.

In March 1649, after they had won a civil war against King Charles I and executed him for willfully “traitorously and maliciously levying war against the present parliament and the people therein represented,” the Parliament abolished the office of king in England and all its dominions:

And whereas it is and hath been found by experience, that the Office of a King in this Nation and Ireland, and to have the power thereof in any single person, is unnecessary, burthensom and dangerous to the liberty, safety and publique interest of the people, and that for the most part, use hath been made of the Regal power and prerogative, to oppress, and impoverish and enslave the Subject; and that usually and naturally any one person in such power, makes it his interest to incroach upon the just freedom and liberty of the people, and to promote the setting up of their own will and power above the Laws, that so they might enslave these Kingdoms to their own Lust; Be it therefore Enacted and Ordained by this present Parliament, and by Authority of the same, That the Office of a King in this Nation, shall not henceforth reside in, or be exercised by any one single person; and that no one person whatsoever, shall or may have, or hold the Office, Stile, Dignity, Power or Authority of King of the said Kingdoms and Dominions, or any of them, or of the Prince of Wales, Any Law, Statute, Usage or Custom to the contrary thereof in any wise notwithstanding.

This was a dramatic affirmation of the constitutional and political principle “No Kings.”

Yet, our world continues to witness and tolerate national leaders (rulers?) who act willfully on their own prerogative, without the law or having the laws come from within their conscience or out of their mouth.

The Caux Round Table, when drafting its Principles for Government, sided with the principle that “law makes the king.”  We proposed that the powers of an office – any office – are no more than responsibilities to act as a humble trustee of the common good, seeking above all else to benefit others.

Fundamental principle: Public power is held in trust for the community.

Power brings responsibility.  Power is a necessary moral circumstance in that it binds the actions of one to the welfare of others.

Therefore, the power given by public office is held in trust for the benefit of the community and its citizens.  Officials are custodians only of the powers they hold.  They have no personal entitlement to office or the prerogatives thereof.

Holders of public office are accountable for their conduct while in office.  They are subject to removal for malfeasance, misfeasance or abuse of office.  The burden of proof that no malfeasance, misfeasance or abuse of office has occurred lies with the officeholder.

The state is the servant and agent of higher ends.  It is subordinate to society.  Public power is to be exercised within a framework of moral responsibility for the welfare of others.  Governments that abuse their trust shall lose their authority and may be removed from office.

Back to the Beginning: Trade Wars

I just ran across a letter of June 28, 1985 – 40 years ago – which led to the foundation of the Caux Round Table.  The letter was sent by Frits Philips, former chairman of Philips, in Japan and a leader of Moral Re-Armament, an NGO advocating cross-culture value alignments and headquartered in Caux, Switzerland, to Mr. Yukihisa Fujita of Moral Re-Armament Japan.

Here is the letter:

The article, which Philips referred to, was a report of the Philips Electronics Company on “unfair” Japanese business practices.  It was as if Donald Trump had written it.  The Dutch reporter wrote after reading the report: “Japan is busy disrupting the international economy. Japan is lusting for world power.”

The accusation was that Japanese Zaibatsu industrial groups, coordinating with the Ministry of Trade and Industry, set out to crush competition in the making and selling of high value electronics.  Horrors!  A group of Japanese companies set out in the U.S. to break through into the American market for televisions by making and selling a color television that cost only $400.

Then, it was alleged, the alliance of Japanese companies used the profits from the sale of color televisions to subsidize the production of video cassette recorders to sell them abroad at a low price.  Thus, when Philips came out with a superior quality video cassette recorder, Japanese companies had 95% of the world market.

Having gained a virtual monopoly in the field of consumer electronics, the Philips report alleged that Japanese companies were getting ready to give a “neck chop” to their European competitors by setting product standards, selling at a cheap price and marketing their products.  The Japanese were also scheming to take American market share in the emerging product category of “professional electronics – monitors, telephone systems, copiers, home and personal computers.”

Their tactic was to subvert competitors with cheap prices.  First in components, then in high-grade sub-systems and finally, with the whole apparatus.  “The Japanese don’t mind foregoing profits for a while, provided that they can earn twice as much later on.”

Japan put difficulties in the way of permitting American companies to sell in Japan.  Japanese companies were financed up to 80 % or 90% of their total capital with low interest loans.

The Philip’s report considered increasing tariffs on imported Japanese electronics, noting that an import duty of 19% on compact disc players has given Philips room to become one of the largest makers of these machines in the world.  But Philips took losses up front on the manufacture and sale of CD players in order to gain market share.

Frits Philips and Yukihisa Fujita, with support from Moral Re-Armament, then convened the first meeting of what would become the Caux Round Table at Mountain House in Caux, Switzerland, in 1986 to discuss better rules and practices for international competition in free markets in all countries.

On Second Thought: A Renaissance of Highly Paid Blue Collar Jobs?

The Economist, in its June 14th issue, put national industrial policy – such as President Trump’s big, beautiful plan to revive American manufacturing (and by so-doing) Make America Great Again – in a different, more dyspeptic frame of analysis.

The magazine reported:

Politicians hope that boosting manufacturing means decent employment for workers without university degrees or, in developing countries, who have migrated from the countryside.  But factory work has become highly automated.  Globally, it provides 20m, or 6%, fewer jobs than in 2013, even as output has increased 5% by value.

Many of the good jobs created by today’s production lines are for technicians and engineers, not lunch-pail Joes.  Less than a third of American manufacturing jobs today are production roles carried out by workers without a degree.

By one estimate, bringing home enough manufacturing to close America’s trade deficit would create only enough new production jobs to account for an extra 1% of the workforce. Manufacturing no longer pays those without a degree more than other comparable jobs in industries such as construction.  As productivity growth is lower in manufacturing than it is in service work, wage growth is likely to be disappointing, too.

Another misconception is that manufacturing is essential for economic growth.  India’s manufacturing output, as a share of GDP, languishes about ten percentage points below Mr. Modi’s target of 25%.  But that has not stopped India’s economy growing at an impressive rate. In the past few years, China has struggled to meet its growth targets, even as its manufacturers have come to dominate entire sectors, such as renewable energy and electric vehicles.

As our modes of production change and with AI yet to release its full potentials in our economies, should we rethink the benefits of trying, yet again, to out-think markets by turning to managers and implementing their plans?

Civilization States: Progress or Retrogression? Please Join Us June 30 on Zoom

Over the last few years, notably in time for Putin to wage territorial war against Ukraine, both Russia and China have proposed a new concept for international relations: the civilization state. The international community has ignored this new way of thinking about who is right and who is wrong.

When I brought it up recently with Archbishop Paul Gallagher, Secretary for Relations with States at the Vatican, he was keen to learn more.

I shared with him the important article on civilization states written by Ivan Timofeev in Moscow.  We included Ivan’s article in the November 2023 issue of Pegasus.

Here is George Will’s take on the failure of the American foreign policy elite to take notice of this new theory of international relations (Will is a columnist for the Washington Post):

Although there is no excuse for it, there is a reason for the failure of U.S. leaders to understand Putin.  He is an open book who has been reading himself to the world since long before he published his 2021 essay, “On the Historical Unity of Russians and Ukrainians.”  This farrago of ethnic mysticisms and history seen through a pseudo-theological lens is Putin’s “Mein Kampf.” His resentments and revenge aspirations are all there.  But are largely ignored or disbelieved by the West’s statesmen and publics who complacently believe that the end of history meant the end of toxic nonsense such as this:

Putin believes Russia is a “civilization-state” with cultural-cum-religious significance, rights and responsibilities that justify the erasure of other nations.  Which is why the Economist correctly says that for Putin, “war has become an ideology.”

What Johns Hopkins University’s Hal Brands describes as Putin’s “quasi-genocidal barbarities” are committed in the name of a totalizing, uncompromisable objective: the political and cultural extinction of Ukraine.  Russia has kidnapped, for the purpose of “Russification,” uncountable thousands of Ukrainian children.  Their return is, Ukrainian President Volodymyr Zelensky says, Kyiv’s “number one” priority in negotiations.  Try explaining that to Steve Witkoff.

This real estate developer, Donald Trump’s designated war-ender, says he and Putin have developed a “friendship.”  Witkoff echoes Jimmy Carter’s secretary of state, Cyrus Vance, saying that Soviet leader Leonid Brezhnev shares similar “dreams and aspirations.”  Witkoff wonders, “Why would Russia want to absorb Ukraine?”  Putin explained in his 2021 essay, which shows that peace is impossible.

Please join us at 9:00 am (CDT) on Monday, June 30 on Zoom to share your thoughts with us about the credibility of the “civilization state.”

To register, please email jed@cauxroundtable.net.

The event will last about an hour.

May Pegasus Now Available!

Here’s the May issue of Pegasus.

This edition carries two essays on seemingly separate themes.  One focuses on leadership and the other on the roles of a citizen.

In the first essay, “On Failure of Leadership,” I survey the world and find much of it wanting as it relates to leadership.

Michael Hartoonian then weighs in with his essay, “There is No Prosthetic for an Amputated Soul.”  It contains several great observations, primarily in the context of being a citizen vs. being a subject.

As usual, I would be most interested in your thoughts and feedback.

More Short Videos on Relevant and Timely Topics

We recently posted a couple more short videos on relevant and timely topics.  They include:

Tariffs and the Wealth of Nations

Who Determines Price?

Are Things All Good or All Bad?

The first one is a little longer than usual, but well worth your time.

All our videos can be found on our YouTube page here.  We recently put them into 9 playlists, which you can find here.

If you aren’t following us on Twitter or haven’t liked us on Facebook, please do so.  We update both platforms frequently.

An Audience with Pope Leo XIV

Last week, I was in Rome for the annual meeting of the Papal Foundation Centesimus Annus, which advocates Catholic social teachings on business, finance and the economy.  The Caux Round Table Principles for Business of 1994 were, in part, derived directly from Pope John Paul II’s 1991 encyclical, Centesimus Annus.  That encyclical was written to recall and extend the 1891 encyclical of Pope Leo XIII, Rerum Novarum.  Pope Leo XIV has noted his choice of name as intentionally directed to recall the contributions of Pope Leo XIII to Catholic social teachings in the modern era of industrialization as the economic foundation for modern humanity.  Pope Leo XIV must now propose his reflections for a post-industrial global economic order and soon, AI-driven wealth creation.

On coming to the Caux Round Table, I, for the first time, read Papal encyclicals, thanks to the mentorship of Jean-Loup Dherse, an author of our principles for business.  Though raised a Protestant, I immediately appreciated the quality of the thoughts and arguments presented by the Popes in their social teachings, the skill in articulation of how values and the ups and downs of life intersect and could intersect if we would but pay closer attention to ourselves and others. Many passages and sections reminded me of the best U.S. Supreme Court opinions of Chief Justice John Marshall, written 200 years ago.

Last Saturday morning, Pope Leo XIV graciously met with our participants.  I found him most at ease and seemingly assured in the execution of his responsibility to provide thoughtful guidance to all who will listen.  He framed his thinking for the work of all of us who care “to raise a standard to which the wise and the honest may repair.”

You can read his remarks here.

The Pontiff’s thoughts also apply to the work of the Caux Round Table.