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American Racism Takes a Big Hit

An American federal judge in Texas has just ruled that racist thinking cannot supersede professional best practices where the safety of airline passengers is at stake.

As I wrote several years ago when the virtue-signaling of the woke, diversity, equity and inclusion movement spread like a viral pathogen across American bureaucracies – public and private – invidious racism has no place in a moral capitalism.

We can each be as proud as we want to be of our genetic heritage and the cultures which have nourished our families over generations, but moral standards demand something more than application of genetic codes for appearance and reproductive capacities or cultural traditions when we pass judgment on others.

The issue before the judge was who Boeing may select as a monitor of its safety practices.  The case involved remediation of Boeing’s business model after the crashes of two 737 MAX aircraft.

In settling its case against Boeing for negligence in causing 346 passenger deaths, the federal government insisted on an agreement that Boeing would use standards of diversity and inclusion when choosing an independent monitor of its production of aircraft.

Judge Reed O’Connor ruled that the government’s use of the words “diversity” and “inclusion” did not rule out racism and so opened the door to racist criteria in evaluating candidates for supervising the quality of the safety protections used in building airplanes and built into each aircraft brought to market.

I suppose the moral norm of justice is not to use racism to screen out qualified candidates and also not to use racism inappropriately to screen in qualified candidates.  That seems to be the basis for Judge O’Connor’s decision, which is in keeping with the Supreme Court’s refusal to legitimate racism in allocating acceptances for college admissions.

You may read Judge O’Connor’s opinion here.

Caux Round Table Educational Certificates

The Caux Round Table is now offering educational certificates, supported by short video modules, on aspects of moral capitalism.  The certificates are honorary and provided at no cost.

The modules have been grouped into nine playlists, available on our YouTube page.

Each playlist presents various insights into moral capitalism.  The presentations provide my thoughts and observations on implications, conundrums, possibilities and negative externalities associated with capitalism, as we experience it.

After you watch all the videos on a playlist, please click here and follow the instructions to send us your thoughts and so receive in the mail a written certificate.

A separate certificate can be obtained for each playlist.

For additional information, please contact us at jed@cauxroundtable.net.

I hope you will take advantage of this opportunity and will gain insights relevant to your career and understanding of our world of possibilities, both good and bad.

November Pegasus Now Available!

Here’s the November issue of Pegasus.

First, Steve Young explores why Donald Trump was re-elected president of the United States.

Secondly, Michael Hartoonian writes about the vital importance of a free press and its role as a “public trust.”

Thirdly, Dave Kansas, a career journalist, discusses how journalism, as a profession, has changed during the course of his career, often and more lately, not for the better.

Also, U.S. Representative Alexandria Ocasio-Cortez makes a guest appearance.

I would be most interested in your thoughts and feedback.

Which Would You Prefer for Your Daily Living – Pre-Capitalism or Capitalism?

On the day after the American Thanksgiving holiday, I spent a few hours walking about a pre-capitalist community.  It was the Plimoth Plantation in Plymouth, Massachusetts, on the coast south of Boston.  The plantation is a recreation of the hamlet erected by the Pilgrims in 1620 after their landing on the coast of what was to become the Massachusetts Bay Colony.

It is a tourist attraction, with some 10 thatched roofed houses built with historical accuracy and staffed with guides dressed in 17th century style clothing and speaking a bit awkwardly in old English accents to the delight of young children and the amusement of adults.

After walking into three or so of the houses with gardens behind on a cold day, I thought of how did the Pilgrims grow enough vegetables to get themselves through the winter of 1620/1621?  Then, I thought of how many kegs of nails and barrels of flour they had brought over in the small Mayflower sailing ship?  Enough for a winter?  A year?  Two years?

They had no smithy then and so how could they have made or repaired iron tools – saws, hoes, etc.  Could their saws cut down enough trees for boards and firewood?  What if a saw broke?

Suddenly, every aspect of their lives appeared to have been arduous.  Cooking in a dark room. Walls that could not keep out the winter cold.  Did they bring enough woven cloth from which to make new shirts, dresses, pants and warm coats?

They had no shopping mall, no stores, no markets and no factories to provide wage employment.  The only money they had, most likely, was the coin they had brought with them.

I then thought of Adam Smith and his 1776 description of early capitalism in Wealth of Nations.  The Pilgrim lifestyle and its rigors were far inferior in quality of life than the realities he was describing.

That first winter perhaps half the new arrivals died.  Of course, their settlement had no doctors, no infirmaries, no antibiotics, no tubs for soaking baths, no showers, no flush toilets, maybe not much soap for washing.

I decided that I would not want to live that life.  If I were to choose between pre-capitalism and capitalism, I would take the latter in a heartbeat.

Adam Smith was wise: specialization of function, division of labor, the factory system, application of science in the invention of machinery, the manufacture of products, commodities, inventing property rights, holding markets, the creation of wealth, all made for improvements in the human condition.

Here is a chart that summarizes, in graphic form, the human good of capitalism:

Why are we today so concerned about social justice and economic inequality?  Is it not because those who live in poverty today still have lives more likely to be “solitary, poor, nasty, brutish, and short?”  Is not the quality of life a moral good to be sought and appreciated?  And therefore, from an equity perspective, we show concern for the quality of every life.

This appreciation of living with plenty, with opportunities to earn and to learn, with good health, with the manifold advantages of modernity, was especially voiced by Presidents Washinton and Lincoln in their proclamations asking Americans to set aside a day in the month of November to give thanks and not take their lives for granted or as an indulgence in undeserved privilege.

Washington wrote:

“Now therefore I do recommend and assign Thursday the 26th day of November next to be devoted by the People of these States to the service of that great and glorious Being, who is the beneficent Author of all the good that was, that is, or that will be – That we may then all unite in rendering unto him our sincere and humble thanks – for his kind care and protection of the People of this Country previous to their becoming a Nation – for the signal and manifold mercies and the favorable interpositions of his Providence which we experienced in the course and conclusion of the late war – for the great degree of tranquility, union and plenty, which we have since enjoyed – for the peaceable and rational manner, in which we have been enabled to establish constitutions of government for our safety and happiness and particularly the national One now lately instituted – for the civil and religious liberty with which we are blessed; and the means we have of acquiring and diffusing useful knowledge; and in general for all the great and various favors which he hath been pleased to confer upon us.”

Abraham Lincoln wrote:

“The year that is drawing toward its close has been filled with the blessings of fruitful fields and healthful skies.  To these bounties, which are so constantly enjoyed that we are prone to forget the source from which they come, others have been added, which are of so extraordinary a nature that they cannot fail to penetrate and even soften the heart which is habitually insensible to the ever-watchful providence of Almighty God…”

“Needful diversions of wealth and of strength from the fields of peaceful industry to the national defense have not arrested the plow, the shuttle, or the ship; the ax has enlarged the borders of our settlements and the mines, as well of iron and coal as of the precious metals, have yielded even more abundantly than heretofore.  Population has steadily increased, notwithstanding the waste that has been made in the camp, the siege and the battlefield and the country, rejoicing in the consciousness of augmented strength and vigor, is permitted to expect continuance of years with large increase of freedom.  No human counsel hath devised, nor hath any mortal hand worked out these great things.  They are the gracious gifts of the Most High God, who while dealing with us in anger for our sins, hath nevertheless remembered mercy.  It has seemed to me fit and proper that they should be solemnly, reverently and gratefully acknowledged as with one heart and one voice by the whole American people.”

Who Should Be Recruited for the American Elite (and every other country’s elite)?

The December issue of The Atlantic magazine brings all of us a timely and important protest over mismanagement of the American elite.

David Brooks’ article is titled “How the Ivy League Broke America.”

Using institutions of higher education to recruit and condition future members of national elites is foundational to modernity.

Napoleon created the Grande Ecoles in France to elevate the French to the heights of Enlightenment reason and excellence.  Hegel and Humboldt did the same in Germany.  The German model of the university came to the U.S. after our Civil War, starting with Johns Hopkins University in Baltimore.

Previously, Oxford and Cambridge had executed the same function of providing specialized social capital creation for Great Britain.

Countries around the world now very much want to send their children to the U.S. for higher education.

But what if the American system of higher education has fallen down on the job?  What if its graduates cannot and do not serve the American people well as adult professionals?

This is the question Brooks puts forward in his essay.  He insists that there has been a disgraceful failure in American higher education, failings which need to be stopped and replaced with a better system.

What Brooks writes is relevant to every country.  Higher education opens the gates of a nation’s capacity to build a moral society, moral capitalism and moral government.

You may read my shortened version of his essay here.

Please Give to the Max to the Caux Round Table!

Tomorrow, Thursday, November 21, is Give to the Max Day here in Minnesota and we would be most appreciative of anything you can contribute to support our work.

With war in the Middle East, trench warfare in Europe, a new administration taking office in Washington, uncertainty in Europe, Asia worried over its future on the periphery of China, too much debt and Bitcoin at US$90,000, the need for enlightened common sense is the talk of the town.

The Caux Round Table ethical principles for moral capitalism and moral government provide a very sound foundation for such enlightened thinking about the common good.

Our work to learn more about the covenants of the Prophet Muhammad to respect and protect Christians and Jews is unprecedented.  The covenants have been overlooked for some 1,300 years.  Today, they can advance the cause of peace in the Middle East and throughout the world.  Your support for this work is needed and is most justified by the good that can come from more people learning more about these covenants.

To donate, please click here.

If you rather mail a check, our address is 75 West Fifth Street, Suite 219, St. Paul, MN 55102.

You could also contribute via wire transfer.  Please reply to this message for instructions

I thank you again for your support.

Timely Program on the Uncommon Search for Common Ground

As many of you will remember, the Caux Round Table, with its principles for moral capitalism and moral government, has collaborated on programs honoring the legacy of John Brandl, former dean of the Humphrey School and state legislator.  One of our partners has been the Citizens League.

This year, the League has organized the program, “From Conflict to Convergence: Coming Together to Solve Tough Problems,” to encourage all of us to dedicate ourselves to John’s “uncommon search for common ground.”  Such an orientation towards politics, culture, governance and others is timely and would be most beneficial for our state and country.

The Ethical Genius of Moral Capitalism

A recent story in the Wall Street Journal deserves our attention.

It reports on how a company – Starbucks – famous and once very profitable – can’t just float on the tides of capitalism, but must work for its money by taking care of stakeholders.

As I have asked students in my MBA classes on business ethics, “What is a company without customers?”

The students almost always show some surprise in their faces – thinking perhaps that “Of course companies have customers.  It’s a capitalist system.”

Then, I pause and answer my own questions: “Bankrupt.”

The students immediately get the point: in capitalism, you have to attract customers in order to profit.  No one directs them to spend their money in your store.

So, to prove my point, here are excerpts from the reporting of Heather Haddon:

In late summer, a customer started showing up at Los Angeles-area cafes at all hours of the day, quizzing baristas about their favorite drinks to make, or problems with how the stores operated.

That customer, Brian Niccol, is now Starbucks’s chief executive officer, and he is moving quickly to change the way customers experience the world’s largest coffee chain as it struggles to draw customers.

In less than two months in the role, Niccol has pushed to focus Starbucks’s operations, trimming menu items and paring back discounts.  Instead, Niccol is giving priority to delivering quality coffee quickly and accurately with friendly service, particularly in the mornings, when the chain needs to shine.

Niccol, an Americano drinker, said he sympathizes with customers who want drip coffee but have to wait while Starbucks’s baristas labor over elaborate, customized drinks.  “Sometimes you just want a brewed cup of coffee really quick,” Niccol said in an interview.

Starbucks’s challenges have mounted this year and deepened since Niccol assumed leadership in early September.  The company in October reported that U.S. transactions fell for a third consecutive quarter, while earnings and revenue for its most recent quarter undershot analysts’ estimates.  It scrapped its fiscal-year financial forecasts. 

Niccol has said Starbucks needs to be clear-eyed about its problems and move quickly to make customer-friendly changes—such as bringing back Sharpies for handwritten notes on cups, and possibly reinstating newspapers for those who linger in cafes.  When he announced last week that self-service condiment bars would come back to stores next year, some lapsed customers said they would return. 

A Moving Documentary from Minnesota

Donald Trump has just been re-elected president of the United States, but with nearly half the American people voting against him.  As of this writing and somewhat surprising to me, is that Trump’s Republican Party has elected enough senators to take majority control of the Senate.

The recent campaigns reveal a deeply divided American people.  There are lessons here to be learned and multiple conflicting discourses to assess.

Seeking to expand the availability of heterodox discourse, Alpha News, a very small start-up source of news here in Minnesota, has produced a moving documentary looking at a fault line among Americans – the ethical quality of our police.

For many, the police are racist in their interactions with minorities, especially with African American men.  For others, the police are necessary to protect families and neighborhoods against violence and criminal trespasses on the vulnerable and the innocent.

In Minnesota recently, 5 police and firemen have been killed in trying to do their duty.  Alpha News believed that telling their stories and bringing forward to the public the grief of their families would provide more perspective to voters in this time of disagreement and intolerance of the views of others.

For some, this documentary – Minnesota v. We the People – brings out feelings of compassion and respect as emotional responses to individual sacrifices made that the community might be more safely livable and supportive.

For others, it may not be so welcomed and so be perceived as too one-sided in its appreciation of policing.

The producer of the documentary, Liz Collin, received our Dayton Award for 2023 for her courage and leadership in making an earlier documentary commenting unfavorably on the trial of police officer Derek Chauvin for murder in the death of George Floyd, when Floyd was in the custody of officer Chauvin and other members of the Minneapolis Force and protest riots breaking out in response to his death in police custody.

Criminality is everywhere a human failing.  Policing, rightly done, is everywhere a human social asset.  Discourse everywhere facilitates both our becoming aware of our failings and our seeking betterment in our lives.

By sharing this documentary, we hope to provide you with a discourse worthy of reflection on how we, in every country, city, town and village, should meet our need for security of self and others and for providing respect for self and others.

You may watch the documentary here.

Please Share Your Thoughts with Us about the U.S. Election – Tuesday, November 19

Today, I write before going out to vote in our national election.  Who will win and who will lose are not small matters.  The destiny of this country and the world will turn on that outcome and on which party will have the majority in our House of Representatives and Senate.

The polls as to who is most likely to win are so close that few commentators are risking their reputations to predict winners.  And the American people seem so closely divided even though over $1 billion has been spent trying to persuade them to vote one way or another.  Democratic capitalism?

No matter the outcomes here, there will be plenty for all to consider, discuss and plan for.

Please join us on Zoom to share your thoughts and concerns about this election at 9:00 am (CST) on Tuesday, November 19.

To register, please email jed@cauxroundtable.net.

The discussion will last about an hour.