Seven Bottlenecks Identified by General Secretary Tô Lâm Before the National Conference: The Illness Does Not Lie in the Bureaucracy

There are moments in history when internal strains and external pressures converge. At such moments, problems once dismissed as isolated deficiencies suddenly reveal themselves as the limits of an entire development model. Vietnam appears to be approaching precisely such an imperative to decide – this way or that? 

Hoang Thang DINH (Fellow of the Caux Round Table) 

At the National Conference convened by the Politburo of the Vietnamese Communist Party on July 1, 2026, General Secretary and State President Tô Lâm identified seven major bottlenecks which he believed were hindering the country’s development. They ranged from institutional weaknesses and bureaucratic inefficiency to human capital, science and technology, and the quality of governance. None of these deficiencies is new. Vietnamese scholars, economists, and even many officials within the system have discussed them for years. What is new—and politically significant—is that they have now been recognized at the highest level as systemic national challenges rather than isolated administrative shortcomings.

At almost the same time, another form of pressure was gathering from abroad. Over the past several months, the United States has initiated a series of investigations under Section 301 of the Trade Act of 1974, focusing on Vietnam’s industrial overcapacity, labor standards, and intellectual property protection. On the surface, these appear to be trade disputes. Yet viewed more carefully, they may convey a deeper strategic message. In an era of intensifying geopolitical competition, Washington is no longer evaluating Vietnam merely through the lens of geography or strategic location. Increasingly, it is judging the quality and sustainability of Vietnam’s own development model.

It is the intersection of these two currents – domestic and foreign –  bringing Vietnam into a new phase of history. On one side stand the domestic structural constraints that the leadership itself has now acknowledged. On the other stands an international environment undergoing rapid transformation, where the comparative advantages that has fueled Vietnam’s remarkable growth over the past three decades can no longer be taken for granted. These may appear to be two separate stories, yet they ultimately reflect the same underlying reality: Vietnam’s current development model has reached the limits of its effectiveness.

Put differently, the seven bottlenecks just identified by General Secretary Tô Lâm and the recent American trade investigations are not unrelated challenges. One is identified by an internal diagnosis; the other by an external assessment. Both lead to the same fundamental question: will Vietnam continue relying on the existing model of development, or will it undertake a deeper, more comprehensive, and more strategic reform?

For that reason, this essay is not intended as either praise or criticism of any individual leader. The more consequential fact is that the country’s highest-ranking official has publicly acknowledged the existence of these structural obstacles. Once such a diagnosis has been made, the essential question is no longer whether an illness exists, but what has caused it.

If the illness resides merely within the administrative apparatus, then organizational restructuring may well be a sufficient cure. But if the bureaucracy merely exhibits the most visible symptoms while the underlying causes are embedded in the country’s broader model of governance, then the reforms required must necessarily be far more ambitious. They must extend well beyond administrative streamlining or personnel reduction. They will require a comprehensive realignment of domestic governance and foreign policy, institutional reform and strategic repositioning, all within an international order that is itself undergoing profound change.

Modern Vietnamese history has repeatedly demonstrated that major diplomatic breakthroughs endure only when supported by meaningful transformation at home. The Đổi Mới reforms of 1986 offer perhaps the clearest example. The normalization of relations with the United States in 1995, Vietnam’s accession to ASEAN, and its participation in successive generations of global trade agreements likewise rested upon internal reforms that expanded the country’s capacity to engage the world. Today, as the international economic order enters another period of transition, Vietnam confronts a similar challenge—but at a considerably higher level of complexity. The central issue is no longer whether Vietnam should lean toward one great power or another. The real question is whether the country possesses sufficient capacity for self-renewal to preserve its own strategic autonomy in an increasingly competitive international environment.

A superficial understanding of the seven bottlenecks might suggest that they concern little more than administrative management: fragmented institutions, cumbersome organizations, unclear demarcations of decentralization, inadequate personnel, slow scientific and technological development, weak human resources, and ineffective policy implementation. Yet a closer examination reveals that virtually none of these problems belongs exclusively to the bureaucracy itself. Each represents the manifestation of a much deeper structural condition. The bureaucracy is merely where the symptoms become most visible; the underlying pathology lies in the operations manual for the entire system.

For many years, the standard response to major policy failures has followed a familiar pattern: amend several regulations, reorganize a handful of agencies, or launch another campaign to streamline the state apparatus. Such measures have certainly produced incremental improvements. Yet when the same categories of problems repeatedly reappear after successive rounds of reform, the difficulty can no longer be attributed to isolated institutional weaknesses. It lies in the design and operation of the entire governing system.

The most significant aspect of General Secretary Tô Lâm’s remarks, therefore, is not simply the enumeration of seven bottlenecks. More important is the implicit acknowledgment that these challenges have become systemic in nature. When a nation simultaneously struggles with institutional quality, human capital, governance effectiveness, innovation capacity, and economic competitiveness, it becomes increasingly implausible to attribute all these deficiencies solely to administrative shortcomings. Together they suggest that an entire development model—one that has shaped Vietnam’s trajectory for decades—is butting up against its structural limits.

If that diagnosis is correct, administrative reform alone will no longer suffice. A better-organized bureaucracy may still perform poorly if the rules governing its operation remain fundamentally unchanged. Conversely, a governance system built upon transparency, fair competition, and public accountability can generate significant improvements even without a perfectly designed administrative structure. The central issue, therefore, is not simply how government agencies are organized, but the principles by which they exercise authority and answer to society.

This distinction points to two concepts that are often conflated in Vietnamese policy debates: bureaucratic restructuring and governance reform. Bureaucratic restructuring addresses essentially technical questions. How should agencies be organized? How should authority be decentralized? Who should be responsible for what? These are undeniably important issues, but they remain questions of administrative engineering.

Governance reform, by contrast, asks far more fundamental questions. What should be the proper role of the state in a modern economy? Under what principles should markets operate? Is the rule of law genuinely supreme for all actors, or do political exceptions continue to prevail? Are relations between public authority and private enterprise governed by equal competition under law, or by administrative privilege and discretionary power?

One concept is merely regulatory; the other fundamentally constitutional.

Choosing one concept over the other ultimately determines a nation’s long-term capacity for development. It would therefore be a profound misunderstanding to regard the seven bottlenecks merely as a checklist of administrative deficiencies awaiting correction. Behind them lies a much larger challenge: how can Vietnam move beyond a growth model driven primarily by inexpensive labor, capital accumulation, and export expansion toward a new one based on productivity, innovation, institutional quality, and genuine competitiveness? This is no longer simply an issue for the Ministry of Home Affairs or the state bureaucracy. It is a challenge which must be met correctly by the country’s entire development paradigm.

Ironically, just as the need for such reforms has become increasingly urgent, the international environment has entered one of its most turbulent periods in decades. Recent changes in American trade policy did not create Vietnam’s structural bottlenecks. They have, however, dramatically increased the cost of postponing reform. Weaknesses that once manifested themselves largely within the domestic economy are now beginning to shape Vietnam’s external relationships and strategic room for maneuver.

Every great reform movement in history begins with what appears to be a deceptively simple question: what must change first?

Vietnam answered that question in 1986 by liberating productive forces, recognizing a multi-sector economy, and opening itself to the world. Those decisions inaugurated one of the most remarkable development cycles in modern Vietnamese history. Tens of millions escaped poverty. The country emerged from decades of isolation and became an integral participant in the global economy.

History, however, never stands still. A development model that once served as a powerful engine of national progress may, over time, become the principal constraint upon further advancement.

For that reason, the reforms Vietnam now requires cannot be confined to reorganizing government agencies. They must involve a fundamental transformation of the development model itself. The state can no longer simultaneously serve as referee, competitor, allocator of economic resources, and ultimate gatekeeper determining who gains access to opportunity. A modern state must gradually shift from exercising control to creating enabling conditions—from distributing privileges to guaranteeing a fair legal framework; from governing primarily through administrative directives to governing through the rule of law, public accountability, and effective public service.

Only when the state’s role is properly redefined can the private sector fully develop, society unleash its creative potential, and the economy finally escape the long shadow of the traditional “ask-and-give” administrative culture.

In the twenty-first century, a nation’s most valuable resource is no longer land, inexpensive labor, or even foreign investment. Its greatest strategic asset is trust which generates action and optimism.

Investors commit capital because they trust the predictability and transparency of legal institutions. Entrepreneurs innovate because they believe their achievements will be protected. Citizens contribute because they trust that their efforts will not be undermined by arbitrary authority or entrenched privilege. International partners deepen cooperation because they believe commitments will be honored consistently over time.

No government can manufacture trust through slogans or political resolutions. Trust is accumulated only through the quality of institutions when that quality depends on how people behave towards one another.

For precisely that reason, meaningful reform must begin with the rule of law. Law must become the common framework governing every actor, rather than an instrument applied differently according to political influence or administrative discretion. When laws are transparent, power naturally becomes constrained. When power is constrained, social creativity gains room to flourish. And when creativity is protected, national competitiveness acquires a durable foundation.

It is impossible to build an innovative economy upon an unpredictable legal environment. Nor can entrepreneurs be expected to mature into globally competitive firms if property rights, commercial autonomy, and contractual security remain vulnerable to arbitrary reinterpretation.

Yet the establishment of genuine rule of law, indispensable though it is, will not by itself be sufficient unless accompanied by an equally profound transformation in Vietnam’s philosophy of development.

For many years, Vietnam’s achievements have been measured primarily through GDP growth, export performance, foreign direct investment, and the scale of infrastructure projects. These cash-flow indicators remain important, but they are no longer sufficient in an age increasingly defined by technology, data, knowledge, and high-value production.

The decisive question is no longer how many goods Vietnam exports. The more important question is how much Vietnamese knowledge, Vietnamese technology, Vietnamese brands, and genuine Vietnamese innovation are embodied within those exports.

Escaping the limitations of an assembly-based economy therefore requires placing education, science and technology, and an independent private sector at the very center of national strategy. No country becomes truly developed if its educational system values conformity more than independent thinking; if scientific research remains stronger in official rhetoric than in practical achievement; or if private entrepreneurs continue to be viewed as simultaneously indispensable and politically suspect.

An innovative economy requires citizens educated to think critically, universities and research institutions protected by academic freedom, businesses competing on equal terms under the law, and a society willing to reward experimentation rather than merely punish failure.

If that diagnosis is correct, administrative reform alone will no longer suffice. A better-organized bureaucracy may still perform poorly if the stipulated (but more importantly the tacit) rules governing its operation remain fundamentally unchanged. Conversely, a governance system built upon transparency, fair competition, and public accountability can generate significant improvements even without a perfectly designed administrative structure. The central issue, therefore, is not simply how government agencies are organized, but what will be the principles by which they exercise authority and answer to society.

June Pegasus Now Available!

Here’s June Pegasus.

In this issue, various fellows of ours commemorate and offer their thoughts on the 250th anniversary of the U.S. Declaration of Independence.

Michael Hartoonian and yours truly also offer our perspectives.

Happy birthday America!

The Name That Refused to Disappear: “Saigon” Collective Memory, and the Moral Limits of Political Power

Hoang Thang DINH (PhD, Pollical Science, Fellow, Caux Round Table for Moral Capitalism)

Political power can rename a city. It cannot rename the collective memory of a people.

Governments may redraw maps, revise administrative boundaries, issue decrees, and proclaim new official identities. Yet history repeatedly reminds us that collective memory obeys a different power paradigm. It is not created by administrative power, nor can it be abolished by administrative power. It is shaped by lived experience, by family stories, by the emotional geography of childhood, by the streets, schools, hospitals, cafés, seasons, departures, and returns through all of which a people slowly comes to recognize itself.

Half a century has passed since the National Assembly of Vietnam officially renamed Saigon as Ho Chi Minh City. From the standpoint of state administration, that decision took effect immediately. From the standpoint of historical consciousness, however, the change of name has unfolded in a far more complex and revealing way.

1. A City May Be Renamed, but Memory of what was Cannot Be Disciplined

There are events that alter the destiny of a nation. There are decisions that change borders, institutions, and even the official name of a city. But there are also realities that neither time nor the power to command can easily erase. Among these realities, collective memory may be the most invisible, yet also the most durable, inheritance of a people.

Fifty years ago, the renaming of Saigon opened a new chapter in Vietnam’s political history. It marked the end of one historical order and the beginning of another. Administratively, the change was clear and immediate. Maps were revised. Documents were updated. The official vocabulary of the state was transformed. Yet the history of administration and the history of a people’s inner moral life do not always move at the same pace or in the same direction.

Today, several generations of Vietnamese have been born and raised without ever seeing the name “Saigon” on their birth certificates or household registrations. And yet the name remains alive in the most natural rhythms of Vietnamese speech. People in the North still say they are “going to Saigon.” People in Central Vietnam still say they are “heading into Saigon.” People in the South still speak of “going up to Saigon.” Across the Vietnamese diaspora — from Paris, Berlin, and Budapest to California and Sydney — millions of Vietnamese continue to speak of Saigon not merely as a place, but as a memory, a longing, and a fragment of their own lives.

After half a century, this persistence of a name can no longer be explained away simply as a a linguistic habit. Nor can it be sublimated under a political attitude. Something deeper is at work. The continued life given to the name “Saigon” reveals the extraordinary resilience of collective memory. It shows that what endures in history is not always what power has officially declared, but what generations of human beings have carried within themselves.

Memory operates according to laws different from those of power. Memory is rooted in childhood, family, neighborhoods, schools, hospitals, streets lined with tamarind trees, old cafés, sudden tropical rains, farewells, reunions, and all the ordinary moments that quietly become part of the soul of a city.

It is precisely those ordinary things that crystallize into personal identity. A city is not only an administrative unit. It is a lived world. It becomes real through the emotional and moral attachments of the people who inhabit it, leave it, remember it, and pass its name on to the next generation. That is why Saigon has survived not merely as a former name, but as a cultural symbol, a style of life, and a spiritual presence through which many Vietnamese, wherever they may live, still recognize something of themselves.

In this sense, Saigon today is no longer only a geographical designation. It has become a moral and cultural reference point. It evokes not simply nostalgia for a vanished city, but poses for all who hear it named a broader question about the continuity of Vietnamese history. What survives after political rupture? What remains after war, victory, defeat, and administrative transformation? Which memories become the property of the nation?

Perhaps the most interesting development after fifty years is that the present itself has begun, cautiously but unmistakably, to return to that memory. When Vietnam’s current leadership recalls Saigon as the former “Pearl of the Far East,” or refers to the time when Singaporeans once came to Cho Ray Hospital for medical treatment, the significance lies not only in those specific remarks. More important is the fact that the memory of Saigon is gradually re-entering official discourse.  Memory is overcoming power.

That return is revealing. It suggests that the deeper sediments of collective Vietnamese consciousness never truly disappeared. They merely sank beneath the surface of political history. At certain moments, when a nation begins to search for standards by which to imagine its future, those submerged layers of memory rise again. They become not a burden from the past, but a source of reference for the future.

The same tendency can be seen in education. In recent years, the idea of “liberal education” has been invoked more frequently in Vietnam. Yet any serious attempt to trace the Vietnamese roots of that spirit cannot ignore the educational legacy of Saigon before 1975. This does not require idealizing the past or denying the limitations of that historical period. It simply requires intellectual honesty. Knowledge has no national  or party flag. A good school, a capable hospital, and an open cultural environment do not lose their value merely because they emerged under a different political system. If they were achievements of Vietnamese people, then they belong to the unmanipulated inheritance of the Vietnamese nation.

It is at this point that the story of Saigon rises above the question of a city’s name. It asks a much larger question: when does a nation possess enough confidence to regard the whole of its history as a common inheritance?

After war, history is often told in the different languages of the winners and the losers. But after half a century, what remains most important for the Vietnamese is no longer that 1975 line of division. What demands attention is the question of which values still possess enough vitality to accompany the nation into its future. If Vietnamese people still speak of Saigon today with recognition, tenderness, or respect, then what they are recalling is not only a city of the past. They are also pointing toward a possible source of inspiration for the future.

Saigon, therefore, is not merely a name that refused to disappear. It is a reminder that a nation cannot mature by amputating parts of its own memory. A mature civilization does not fear the complexity of its past. It learns to distinguish between political rupture and historical continuity. It knows that the deepest foundations of national identity are not built by forgetting, but by transforming memory into a common inheritance.

2. Healing Begins by Respecting One Another’s Memory

If, after half a century, the name Saigon continues to live naturally in the language of millions of Vietnamese, then the essential question is no longer what the city ought to be called. The more important question is why this memory has proved so enduring. The answer, perhaps, lies not in the name itself, but in Vietnam’s unfinished journey toward reconciling differences in its own history, antagonisms and contradictions within Vietnamese-ness itself.

For many years, Vietnamese society has spoken of national reconciliation as both an aspiration and a necessity. No nation can move confidently into the future while remaining divided by unresolved memories of the past. 

Yet reconciliation cannot be achieved simply through commemorative ceremonies, political declarations, or official slogans. Those may express goodwill, but they cannot by themselves restore the moral trust that history has fractured. Genuine reconciliation is not merely a political process; it is, before all else, a cultural and ethical achievement. It begins when citizens become willing to acknowledge the legitimacy of one another’s memories, even when those memories are not identical to their own.

Throughout the years following the war, Vietnamese people have often been encouraged to “leave the past behind” in order to focus on the future. There is undeniable wisdom in looking ahead. But looking ahead does not require erasing what came before. 

The past is not a door that can simply be closed at will. It survives within the memories of individuals, families, and communities, and memory has never yielded easily to administrative decree or ideological instruction. No government possesses the authority to legislate remembrance. Political institutions may shape official history, but they cannot fully determine the history that people carry within themselves.

For that reason, no nation can truly heal by amputating part of its own memory. Nor can reconciliation flourish if one group of citizens is expected to forget before it is permitted to belong, while another is encouraged to remember only within officially prescribed boundaries. Healing does not require uniform memories. It requires the moral generosity to recognize that different memories may all belong to the same national experience. Diversity of remembrance is not a threat to unity. Properly understood, it is one of the conditions through which authentic unity becomes possible at a higher level of generalization as to who we really are.

The passage of time offers every society an opportunity to revisit its history with greater calmness and greater intellectual honesty. The Saigon that existed before 1975 possessed both remarkable achievements and undeniable limitations. The Ho Chi Minh City of today likewise represents extraordinary vitality, creativity, and economic dynamism, while at the same time confronting new questions concerning urban development, social cohesion, and the quality of public life. Neither historical period should be romanticized. Neither should be dismissed. Both deserve to be understood as successive chapters in the continuing history of Vietnam.

Only when these different chapters are viewed as parts of one continuous national experience can history become a teacher rather than a battlefield. The purpose of remembering is not to assign permanent moral superiority to one period over another. It is to understand how a nation has evolved, what it has learned, where it has failed, and which achievements remain worthy of preservation regardless of the political circumstances under which they first emerged.

Some Vietnamese scholars have compared the nation to travelers who have not yet fully crossed the symbolic “River of Stars” toward reconciliation. The metaphor is illuminating. Wars may end with military victories or diplomatic agreements, but the currents of memory often continue to flow on for generations before they finally mingle. Territorial peace does not automatically become peace within the human spirit. A nation may rebuild its roads, bridges, and cities within a few decades. Rebuilding mutual trust among memories often requires much longer.

Seen from this perspective, Saigon is no longer merely a story about South Vietnam, nor simply a reminder of an earlier political order. It has become a measure of Vietnam’s own cultural confidence. A mature nation does not fear memory, nor does it require memory to submit to political authority. It understands that the more turbulent its history has been, the more necessary it becomes to preserve every layer of that experience with honesty and compassion. National identity grows stronger not because difficult memories disappear, but because they are gradually woven into a broader and more generous understanding of the nation’s common journey.

Perhaps the time has come to look at Saigon through a different lens—not as a symbol of division, but as an inseparable chapter in the making of modern Vietnam. A people who preserve every layer of their historical memory are ultimately richer than a people who preserve only those memories that conform comfortably to the present. The spiritual resources that enable a civilization to renew itself are rarely created overnight. They are accumulated slowly across generations, deposited quietly within the collective consciousness of a nation, and rediscovered whenever history demands new sources of wisdom.

Ultimately, healing does not mean forgetting. Nor does reconciliation require unanimous interpretations of the past. It asks something both simpler and more demanding: that a nation possess enough moral confidence to accept the whole of its own history as a shared inheritance. Only then can memory cease to divide and begin, at last, to unite.

3. Still Saigon—Still Vietnam

Half a century has now passed. The city bears a different official name, a different skyline, and a different place in Vietnam’s national development. New boulevards have replaced old avenues. New urban districts continue to expand beyond what earlier generations could have imagined. Ho Chi Minh City has become one of Southeast Asia’s most dynamic metropolitan centers and the principal economic engine of the country. History has never stood still, nor should anyone wish to reverse its course. Every generation must build upon the foundations it inherits while creating new possibilities for those who follow.

As nations move forward, what should they carry with them from the past? Economic growth, technological innovation, and institutional reform are indispensable. But civilizations are sustained not only by what they build. They are equally sustained by what they choose to remember. Material progress gives a nation greater capacity. Historical memory gives that capacity meaning.

Perhaps the most revealing question after fifty years is no longer whether the city should officially be called Saigon or Ho Chi Minh City. The more revealing question is why the name Saigon continues to resonate so naturally across generations of Vietnamese, including many who never personally experienced the city that once bore that name. The answer lies neither in geography nor in ideology. It lies in a far more enduring characteristic of human societies. People readily adapt to changing institutions, but they seldom abandon the memories that have become woven into their moral and emotional identity.

That attachment should not be mistaken for nostalgia, nor should it be interpreted as resistance to historical change. Rather, it reflects one of the essential conditions of civilizational continuity. A mature society does not preserve its identity by freezing history. It preserves its identity by allowing each generation to reinterpret inherited memories without destroying them. Historical continuity is not the absence of change; it is the capacity to carry the past into the future without becoming imprisoned by either.

For that reason, no civilization becomes stronger by erasing the achievements or experiences of earlier historical periods. It grows stronger by integrating them into an increasingly comprehensive understanding of itself. Pre-1975 Saigon possessed accomplishments worthy of recognition, alongside limitations that deserve honest assessment. Contemporary Ho Chi Minh City likewise reflects remarkable achievements while confronting challenges that will define Vietnam’s future. Wisdom lies neither in idealizing one period nor condemning another. Wisdom lies in recognizing that both belong to the same unfolding story of the Vietnamese nation.

Vietnam today often speaks of entering a new era of national development. Such an aspiration is both legitimate and necessary. Yet no genuinely new era can be built upon fragmented memories. A nation advances most confidently when it possesses the moral courage to regard the whole of its history as a shared inheritance—to celebrate genuine achievements, to acknowledge painful failures, and to learn from both with equal honesty. This is precisely what may be described as the sedimentation of collective consciousness: those quiet layers of memory deposited over generations within language, culture, social habits, and the moral imagination of a people. They cannot be manufactured by political authority, yet they quietly sustain the continuity of civilization itself.

Seen from this perspective, Saigon is no longer simply the name of a city. It has become evidence of a larger historical truth. Political power may administer the present. Historians may continue to debate the past. Governments may reinterpret national narratives according to changing circumstances. Yet the collective memory of a people ultimately belongs neither to governments nor to historians. It belongs to the civilization itself. No political authority, however powerful, can permanently govern the inner memory of millions of human beings.

Nations reach true maturity not when they cease discussing their past, but when they no longer fear it. They become stronger when they recognize that historical memory exists not to serve the political needs of the present, but to deepen the moral resources with which the future will be built.

Fifty years from now, this city will undoubtedly look different once again. Its skyline will continue to rise, its economy will continue to evolve, and future generations will inherit a Vietnam very different from the one we know today. Yet if those future generations still speak the name Saigon with quiet familiarity and unforced affection, that will not represent the failure of some part of history. It will represent one of a civilization’s deepest victories: the triumph of collective memory over the transience of political power.

Perhaps that is the shortest path by which Vietnam, after enduring so many crashing waves and violent storms in its modern history, may finally guide its national vessel toward the farther shore—not through enforced forgetting, but through using  the quiet wisdom of remembering together.

America vs. the Overclass Out Today!

Yesterday, the U.S. Supreme Court issued an historic decision about how power is to be used under our Constitution.  The court overruled a previous case from the 1930s which gave federal bureaucratic agencies created by the Congress the privilege of acting arbitrarily and capriciously as a fourth branch of government, ahead of the people and independent of both the president and in many ways, the courts.

This Supreme Court decision, therefore, vindicates and ratifies the Caux Round Table’s Principles for Government.

By coincidence, today, my publisher, RealClear Publishing, is releasing my new book, America vs. the Overclass: How a New Elite Corrupted Our Nation and What We Can Do to Stop Them, on what has gone wrong with my country.  My thesis has been vindicated by this new Supreme Court decision, as well.

Please click here for more information and how you can order a copy.

I hope you will read it and gain a new perspective on American history.

Cynicism Makes it Hard to Be a Virtuous Leader

In January, I sent you four commentaries on Donald Trump as a leader (hereherehere and here).

On June 16, I read Walter Russell Mead’s commentary in the Wall Street Journal which added a different way of understanding Donald Trump, but one consistent with my observations of his modus operandi as a person, a politician, a dealmaker and a leader, of sorts.

Here is part of what Mr. Mead wrote:

Mr. Trump’s greatest strength is also his greatest weakness.  The president is a cynic.  Unencumbered by deep convictions and free from the constraints imposed by conventional morality or codes of honor, he can alter his tactics to the exigencies of the moment without hesitation or scruple.  Cynicism has its uses.  No statesman can succeed without a healthy dose of it.  But like most potent drugs, it works best in small doses.

Mr. Trump comes by his cynicism honestly – his career in New York real estate, casinos and reality television led naturally to a dark view of human nature.  As his political power grew and so many early critics and opponents swallowed their principles to kiss his ring, Mr. Trump’s intuitive belief that ideas and ideals don’t matter was powerfully reinforced.

But cynicism has limits.  A cynic would have predicted that Britain would throw in the towel in 1940.  Adolf Hitler held more cards than Winston Churchill did.  But Churchill rejected Hitler’s peace offers and fought on to the end.

Mr. Trump’s disregard for ideas, ideals and people who claim to believe in them leads him to underestimate the strength and determination of people who mean what they say.  His failure to understand the power of nationalism blinded him both to the resilience Ukraine has demonstrated in its conflict with Russia and to Vladimir Putin’s determination to pursue the struggle regardless of cost.  Mr. Trump’s peacemaking efforts as a result have fallen flat.

Ideas matter in the Middle East as well.  However perverse and depraved the ideas that animate the Islamic Republic and Hezbollah, they inspire the kind of conviction that motivates people to fight grimly on against the odds.  In the end, Mr. Trump underestimated Iran’s determination and resilience and launched a war that is proving much costlier and harder to end than he’d expected.

Mr. Trump’s apparent contempt for ideals like democracy and the rule of law also costs him. Threats to conquer Greenland reduced his ability to call on allies in the Iran crisis.  And the American failure to work more closely and effectively with pro-democracy Iranians gives the regime one less problem to worry about.  Additionally, Mr. Trump’s penchant for aggressively unpredictable course changes weakens the confidence of allies and bolsters cohesion among his opponents.

Mr. Trump is a supreme and often supremely successful opportunist.  But that quality alone won’t see him through the tests that lie ahead.

May 2026 Pegasus Now Available!

A little belatedly, here’s May Pegasus.

This issue delivers four different essays, all of them focused on how we can create a better civilization and communal life in a time of conflict and difficulty.

First, I write about the pursuit of happiness. 

Secondly, Michael Hartoonian, in his essay “Toward a Theory of Constitutional Citizenship,” builds on my points, underscoring the role of a citizen in building the framework for the pursuit of happiness.

Next, Cardinal Silvano Maria Tomasi strengthens Michael’s argument that the pursuit of happiness is not simply given, but must be earned, in his piece, “A Disoriented Society in Search of Spiritual Pluralism: Fraternity and the Social Doctrine of the Church as a Horizon for Coexistence.”

Lastly, we include an excerpt from Ki-Chan Kim, professor emeritus at the Catholic University of Korea, from a talk he gave on a fragmented world in search of spirituality to the general assembly of the pontifical foundation Centesimus Annus Pro Pontifice international conference in late May at the Vatican.

I would be most interested in your thoughts and feedback.

My New Book: America vs. the Overclass

I’m very pleased to announce that my new book, America vs. the Overclass: How a New Elite Corrupted Our Nation and What We Can Do to Stop Them, (published by RealClear Publishing), will be out on June 30, 2026.
You can pre-order a copy now! 

I wrote it to bring to public notice some ideas from sociology and social-psychology, which have drawn my attention for many years.

The jumping-off point for my analysis of American culture, modal personalities, society, politics, is Sir John Glubb’s observation that, over the ages and across human cultures, the average life of dynasties, regimes and great nations has been 250 years.

This July 4th is the 250th anniversary of the U.S. Declaration of Independence, which my ancestor, Lewis Morris, signed.

My people are unhappy.  Our politics are destructive.  Our economy carries an unsustainable debt.  How many more years does our republic have left?

The book, in many ways, intersects with and carries forward the concerns of the Caux Round Table.  My suggestion for a revival of the American experiment in ordered liberty is for individuals to assume responsibility, to assume an office arising out of covenant.  Such personal covenantal dedication to a common good is the foundation for moral capitalism and moral government.  This requires a personal commitment of being inner-directed.

(Presenting Pope Leo a copy of the book last Saturday.)
My mentor in college, David Riesman, wrote about American inner-direction and its nemesis, other-direction, in his 1950 book, The Lonely Crowd.  My new book seeks, in part, to honor his work and also to thank him for his friendship those many years ago.Should you read it, I would be most interested in hearing your thoughts about my thesis and the facts that I bring forward to support its credibility.

Also, if you feel so inclined, please feel free to forward this email to colleagues and friends of yours you believe would be interested.

A flyer about the book can be found here.

Elon Musk vs. OpenAI: Litigating Moral Capitalism

I have not paid attention to the current lawsuit brought by Elon Musk against OpenAI and its now private shareholders.  I rather cavalierly dismissed it as an expression of egomania on the part of two very smart and driven men facing off against one another.

But an article on the trial caused me to rethink and conclude that this litigation was brought by Musk to champion moral capitalism.

The importance of the moral issue of taking responsibility for development and deployment of product and technology has just been given deep theological and philosophical importance by Pope Leo XIV in his new encyclical on AI.

Both Pope Leo and Elon Musk worried about the consequences for humanity of machine thinking – a new technology. Economists call such consequences “externalities” of a product or a service – what does the product or service cause to happen?  Usually, the concern is about price.  Does the price charged for a good or service include the costs to users, society, the community and the environment of any negative effects brought about by that product or service?  Here is the issue of who should pay for the costs of pollution?

Thus, to have the work of developing AI, Musk thought of using what some call a “benefit corporation,” where the ability of owners to place profit above all other considerations is restrained.  The purpose of the entity must be to generate benefits for specified stakeholders.  Musk chose the form of a non-profit corporation.  Money was raised and staff were hired.  Later, the CEO, Sam Altman, working with Microsoft, took the capital of the non-profit and moved it to a for-profit company.

Musk sued for breach of contract and specific performance of the original contract provision to benefit humanity and not owners.

Here are relevant excepts from Musk’s complaint:

Mr. Musk has long recognized that artificial general intelligence (AGI) poses a grave threat to humanity – perhaps the greatest existential threat we face today.  His concerns mirrored those raised before him by luminaries like Stephen Hawking and Sun Microsystems founder Bill Joy.  Our entire economy is based around the fact that humans work together and come up with the best solutions to a hard task.  If a machine can solve nearly any task better than we can, that machine becomes more economically useful than we are.  As Mr. Joy warned, with strong AGI, “the future doesn’t need us.” …

With the DeepMind team, Google immediately catapulted to the front of the race for AGI.  Mr. Musk was deeply troubled by this development.  He believed (and still does) that in the hands of a closed, for-profit company like Google, AGI poses a particularly acute and noxious danger to humanity.  In 2014, it was already difficult enough to compete with Google in its core businesses.  Google had collected a uniquely large set of data from our searches, our emails and nearly every book in our libraries.  Nevertheless, up to this point, everyone had the potential to compete with Google through superior human intelligence and hard work.  AGI would make competition nearly impossible.  …

The Founding Agreement of OpenAI, Inc.

Mr. Altman purported to share Mr. Musk’s concerns over the threat posed by AGI.  In 2015, Mr. Altman wrote that the “development of superhuman machine intelligence (SMI) is probably the greatest threat to the continued existence of humanity.  There are other threats that I think are more certain to happen . . . but are unlikely to destroy every human in the universe in the way that SMI could.”  Later that same year, Mr. Altman approached Mr. Musk with a proposal: that they join forces to form a non-profit AI lab that would try to catch up to Google in the race for AGI, but it would be the opposite of Google.  …

Together with Mr. Brockman, the three agreed that this new lab: (a) would be a non-profit developing AGI for the benefit of humanity, not for a for-profit company seeking to maximize shareholder profits and (b) would be open-source, balancing only countervailing safety considerations and would not keep its technology closed and secret for proprietary commercial reasons (the “founding agreement”).  Reflecting the founding agreement, Mr. Musk named this new AI lab “OpenAI,” which would compete with and serve as a vital counterbalance to Google/DeepMind in the race for AGI, but would do so to benefit humanity, not the shareholders of a private, for-profit company (much less one of the largest technology companies in the world). …

The founding agreement was also memorialized, among other places, in OpenAI, Inc.’s December 8, 2015, certificate of incorporation, which affirmed that its “resulting technology will benefit the public and the corporation will seek to open-source technology for the public benefit when applicable.  The corporation is not organized for the private gain of any person.”  The certificate of incorporation further affirmed that all of the corporation’s property was “irrevocably dedicated” to these agreed purposes. …

Mr. Altman became OpenAI, Inc.’s CEO in 2019.  On September 22, 2020, OpenAI entered into an agreement with Microsoft, exclusively licensing to Microsoft its Generative PreTrained Transformer (GPT)-3 language model.  However, OpenAI published a detailed paper describing the internals and training data for GPT-3, enabling the community to create similar models themselves.  And most critically, the Microsoft license only applied to OpenAI’s pre-AGI technology.  Microsoft obtained no rights to AGI.  It was up to OpenAI, Inc.’s non-profit board, not Microsoft, to determine when OpenAI attained AGI. …

In 2023, defendants Mr. Altman, Mr. Brockman and OpenAI set the founding agreement aflame.  In March 2023, OpenAI released its most powerful language model yet, GPT-4.  GPT-4 is not just capable of reasoning.  It is better at reasoning than average humans.  It scored in the 90thpercentile on the Uniform Bar Exam for lawyers.  It scored in the 99th percentile on the GRE Verbal Assessment.  It even scored a 77% on the Advanced Sommelier examination.  At this time, Mr. Altman caused OpenAI to radically depart from its original mission and historical practice of making its technology and knowledge available to the public.  GPT-4’s internal design was kept and remains a complete secret except to OpenAI – and on information and belief, Microsoft.  There are no scientific publications describing the design of GPT-4.  Instead, there are just press releases bragging about performance.  On information and belief, this secrecy is primarily driven by commercial considerations, not safety.  Although developed by OpenAI using contributions from plaintiff and others that were intended to benefit the public, GPT-4 is now a de facto Microsoft proprietary algorithm, which it has integrated into its Office software suite.  …

Furthermore, on information and belief, GPT-4 is an AGI algorithm and hence, expressly outside the scope of Microsoft’s September 2020 exclusive license with OpenAI. …

A board coup took place in November 2023.  On November 17, 2023, OpenAI, Inc.’s board fired Mr. Altman after losing “confidence in his ability to continue leading OpenAI” because “he was not consistently candid with the board.”  In a series of stunning developments spanning the next several days, Mr. Altman and Mr. Brockman, in concert with Microsoft, exploited Microsoft’s significant leverage over OpenAI, Inc. and forced the resignation of a majority of OpenAI, Inc.’s board members, including Chief Scientist Ilya Sutskever.  Mr. Altman was reinstated as CEO of OpenAI, Inc. on November 21.  On information and belief, the new board members were hand-picked by Mr. Altman and blessed by Microsoft. …

This case is filed to compel OpenAI to adhere to the founding agreement and return to its mission to develop AGI for the benefit of humanity, not to personally benefit the individual defendants and the largest technology company in the world.

November 2023 To Present: Altman’s OpenAI

The public is still in the dark regarding what exactly the board’s “deliberative review process” revealed that resulted in the initial firing of Mr. Altman.  However, one thing is clear to Mr. Musk and the public at large: OpenAI has abandoned its “irrevocable” non-profit mission in the pursuit of profit.  Numerous leaders and intellectuals have publicly commented on the irony and tragedy of OpenAI becoming “Closed, For-Profit AI.” …

Defendants have breached the founding agreement in multiple separate ways, including at least by:

Failing to disclose to the public, among other things, details on GPT-4’s architecture, hardware, training method and training computation and further by erecting a “paywall” between the public and GPT-4, requiring per-token payment for usage, in order to advance defendants and Microsoft’s own private commercial interests, despite agreeing that OpenAI’s technology would be open-source, balancing only countervailing safety considerations.

Wherefore, plaintiff prays for judgment against defendants as follows: for an order compelling specific performance of defendants’ repeated contractual promises including, without limitation, an order requiring that defendants continue to follow OpenAI’s longstanding practice of making AI research and technology developed at OpenAI available to the public and an order prohibiting defendants from utilizing OpenAI, Inc. or its assets for the financial benefit of the individual defendants, Microsoft or any other particular person or entity.

May the good guys win and moral capitalism be vindicated by law!

A Crony Capitalist Maybe?

Two recent press reports provide information on President Trump or his agents buying and selling shares in companies whose financial fortunes turn on securing profitable contracts or permissions from the federal government working under Trump’s personal direction.

Under the Caux Round Table Principles for Government, “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.”

Taking selfish advantage of public power for personal gain or other advantage is an abuse of such trusteeship authority and may constitute, under the U.S. Constitution, an impeachable offence warranting removal from office.

The first report was in Bloomberg, published by Bill Allison and Jessica Menton.

The transactions, spelled out in more than 100 pages of documents filed Thursday with the U.S. Office of Government Ethics, list purchases and sales in broad ranges, making it hard to calculate an exact value.  But the volume of trading – more than 40 per day over a three-month period – stands out as much as the potential dollar value. …

“This is an insane amount of trades,” said Matthew Tuttle, chief executive officer of Tuttle Capital Management, in an interview, adding that it looks more like something done by “a hedge fund with massive algo trades” that buys and shorts securities than a personal account. …

In the first quarter, the president bought at least $1 million each in companies including Nvidia Corp., Oracle Corp., Microsoft Corp., Boeing Co. and Costco Wholesale Corp., according to the documents.  Other trades involved eBay Inc., Abbott Laboratories, Uber Technologies Inc., AT&T Inc. and discount store Dollar Tree Inc. …

The disclosure reignites conflict-of-interest concerns that have shadowed Trump’s terms in the White House.  Critics have regularly accused him of mixing his official duties with his business interests.  Unlike his predecessors, Trump didn’t divest or move his assets into a blind trust with an independent overseer.  His sprawling business empire is managed by two of his sons and operates in several areas that intersect with presidential policy. …

Netflix Inc. and Paramount Skydance Corp. battled to acquire Warner Bros Discovery Inc. in a months-long fight with both suitors raising potential antitrust concerns.  Trump made investments related to all three companies.  He bought a modest stake in Warner Bros. in March, worth at least $30,000, a stake in Paramount Skydance worth at least $15,000 the same month. He also had 19 transactions naming Netflix, including sales worth as little as $1,000 and as much as $5 million during the first quarter. …

“All of this raises questions that you’d rather not raise as a president,” said Tuttle.  “So, now people are asking why is he buying Nvidia and other companies now?  When you’re the president, you know everything, so any stock you buy, there’s a huge question mark.” …

Trump’s biggest sales came on February 10, when he unloaded holdings in three technology firms: Microsoft, Meta Platforms Inc. and Amazon.com Inc., in amounts between $5 million and $25 million.  He also sold a stake in a Vanguard ETF in January, worth at least $5 million.

The second report was written by Edith Olmsted and was published in the New Republic.

On February 10, Donald Trump purchased between $1 million and $5 million worth of stock in Nvidia, a massive AI chip maker.  A week later, Nvidia announced a major computer processing power deal with Meta. …

Trump previously purchased between $500,000 and $1 million worth of Nvidia stock on January 6, after clearing the sale of Nvidia’s H200 chips, the company’s second-most powerful AI chip, to China.  A week later, the Commerce Department officially approved the sale.  This week, after Huang traveled with Trump to China, the Commerce Department cleared 10 Chinese firms to buy Nvidia’s chips – making way for Trump to make millions more. …

Also on January 6, Trump purchased between $50,000 and $100,000 worth of stock in AMD, another AI semiconductor company, which was authorized to sell their chips to Chinese customers a week later.  Trump purchased at least $740,000 in AMD stock last quarter, according to NOTUS. …

In the first quarter of 2026, Trump also purchased at least $260,000 worth of stock in Palantir, a private weapons manufacturer with hefty government contracts and ties to the president. …

In January, Trump bought between $65,000 to $150,000 of Palantir stock and sold between $1.1 million and roughly $5.3 million of it in February.  That same month, Palantir won a billion-dollar purchasing agreement with the Department of Homeland Security to use the company’s software to aid Trump’s sweeping deportation efforts. …

In March, Trump purchased between $200,000 and $500,000 in Palantir stock.  Last month, Trump made a public call for people to buy stock in Palantir – including the stock’s ticker symbol in his social media post – in an obvious effort at market manipulation.  A few weeks later, Palantir landed yet another major federal contract.

The Caux Round Table has proposed the following schema to describe the moral dynamic of systems of crony capitalism.  It uses philosopher Jurgen Habermas’s construction, where morality emerges in the engagement of normativity (at the top) through human agency, with facticity (at the bottom) and reciprocally, the engagement of facticity with normativity, similarly through human agency.