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Passport Photo

Passport Photo

April 30, 2019 (883 words)

My passport recently reached its ten-year expiration date, and being the world traveler that I am it was absolutely imperative to have it renewed immediately. So last week I sauntered into the local post office to have a picture taken and get the paperwork started.

Because I pretty much know what I look like at this point, seeing myself in the odd family photo or driver’s license renewal no longer causes any alarm.

But when the friendly gentleman at our sleepy little post office handed me the small, two-inch head shot that will eventually appear in the re-issued document, the guy staring back at me was decidedly older-looking than in previous pictures. As if the wear and tear of the last ten years is now right there on my face.

It has been an eventful decade, this going from age 54 to age 64. On the home front I’ve had to contend with an ongoing betrayal perpetrated by our children, who in a callous display of pique and ingratitude have one-by-one decided to grow up and go out on their own.

On the work front, my small company began this last decade suffering a series of harsh reversals that nearly did me in. Like many other commercial enterprises in the wake of the great recession, my lemonade stand of an operation walked a financial tightrope for a few harrowing years.

Then just as the dark clouds were beginning to lift, my father died in December 2012, followed six months later by my mother. While the grief was heart-rending, the memories are precious. Softening their departure from this mortal coil has been those precious memories, with an extra kick.

My father seems to be intervening from the grave on my behalf. After so much tough sledding, my fortunes at work took a dramatic turn for the better once he died, and have continued on an upward trend these last six years.

Also clearly visible in my new passport photo is the inevitable genetic tribute, as my resemblance to the old man is becoming more pronounced with each passing year. And, I might add, this resemblance is not limited to mere outward appearance.

Because he lived with us the last eight years of his life (as did my mother, for the first four of those years, before entering a care facility for the final four years of hers), and because we shared an evening meal most every day of those eight years, his mannerisms and speech patterns have been stamped into my DNA to an even greater degree than is typical of parents and their grown children.

Now that I find myself instinctively mimicking his every move, it feels as though I have literally become my father.

And not just in a good way. The physical deterioration we must all cope with someday has suddenly started for me, maybe a little ahead of schedule. Dad was twenty-seven when I was born, and some days it feels like I have aged twenty-seven years since he died. But bodily decrepitude does yield its share of wisdom, and I like to think my array of minor maladies is not without its ancillary benefits in the perspective department.

Appling this new-found perspective I find myself doing a lot of ruminating, thinking back on all the people I used to know, all the people I have crossed paths with. It’s these encounters with others that teach us about human nature, and help us to know ourselves.

That includes all the honest and considerate souls I have worked for and with over the course of the last five decades. It encompasses the disingenuous, manipulative, and downright dishonest “players” in the business world who have done me wrong, and most everyone else they have ever come in contact with.

Certainly in these musings there is an emphasis on my own parents, and on the immediate family I was born into. But my inner vision extends to the family each of my parents was also born into. So too all those long-ago teachers, classmates and school chums, and the families that shepherded each such mentor and friend into this world.

The resulting tableau might be referred to as “the family of man,” or my own personal heavenly host.

One eventually comes to realize we are all on a journey of self-discovery – the honest and considerate, the disingenuous and manipulative. The best possible outcome – the satisfactory completion of life’s course – is to experience a sense of gratitude for all the good gifts that have fallen in one’s lap, far beyond what we could ever have warranted based on merit.

Depending on how you are wired, this sort of thing naturally leads one to forgive all slights, forgive the blatant failings of others. As we ourselves hope our failures and shortcomings will also be forgiven.

It’s good to get older. It’s good to age out of the “acquisition years,” when advertisers realize your pre-occupations have changed, making you no longer worthy of their attention. Many of us older folks have moved on to more important considerations. Too bad the busy world of noise and fury is caught up in its immediate cravings, and pays our perspective no mind.

Robert J. Cavanaugh, Jr.
April 30, 2019

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Crisis at the Border

Crisis at the Border

April 13, 2019 (1,855 words) The other day I was startled by a front page story in The New York Times that announced the U.S. border could be at a breaking point. Then driving home from work yesterday I listened to National Public Radio tell me how “thousands of undocumented immigrants cross our Southern border every day.” This is quite a change from what we’ve been hearing from the likes of NPR and the NYT since the first of the year, when House Speaker Nancy Pelosi won her dramatic show-down with President Trump over border wall funding. We were repeatedly assured by reliable sources that illegal crossings were at an historic low, with the implication being Mr. Trump was only hammering away at this contentious issue to keep his out-of-touch base fired up. At this stage of his unexpected presidency one might say Donald Trump has earned his legion of critics. It’s hard to cozy up to any world leader – let alone our leader – who seems to revel in displays of belligerence. So it’s no surprise that many in the media have found fault with the actions of this administration’s Department of Homeland Security, especially the way it has decided to “separate families,” and “put children in cages.”

… looking past the catchy soundbites


Such a policy of family separation does indeed strike even the casual observer as beyond the pale. But as with most controversies there is more to this story than what is easily captured in a catchy soundbite or a juicy headline. To do justice to this subject we will have to set aside whatever disdain we may feel for the current occupant of the White House. According to the article Migrants Pour Into a System That’s ‘On Fire’ appearing above the fold in column one of the Thursday, April 11 edition of The New York Times:

“The very nature of immigration in America changed after 2014, when families first began showing up in large numbers… These days, thousands of people a day simply walk up to the border and surrender. Most of them are from Central America, seeking to escape gang violence, sexual abuse, death threats and persistent poverty…

“The smugglers have told them that they will be quickly released, as long as they bring a child, and that they will be allowed to remain in the United States for years while they pursue their asylum cases… The resulting crisis has overwhelmed a system unable to detain, care for and quickly decide the fate of tens of thousands of people who claim to be fleeing for their lives.

“For years, both political parties have tried – and failed – to overhaul the nation’s immigration laws, mindful that someday the government would reach a breaking point. That moment has arrived. The country is now unable to provide the necessary humanitarian relief for desperate migrants or even basic controls on the number and nature of who is entering the United States.”



… balancing concern with pragmatism


Many successful Americans with a good head on their shoulders and some disposable income to spread around are stumped by this crisis. Decent people instinctively feel sympathy for the less fortunate. Yet these same decent people also possess a pragmatic sense that we can’t absorb uncontrolled waves of indigents into our communities without creating havoc. And so we find ourselves on the horns of a dilemma. We are the lucky inhabitants of a land where “God has shed his grace,” but this patriotic logic leads to an awkward conclusion. People in the Third World, specifically in this case the citizens of Honduras and Guatemala and Nicaragua, have apparently not been showered with similar grace. Though we may no longer openly invoke such faith-based formulations, asserting that we have been blessed by God can only mean those others have been forsaken by God. Oh my, this is starting to get uncomfortable. But wait, as any successful American will gladly tell you, the reason we are “blessed” has nothing whatsoever to do with God’s grace. Our exalted status on the world stage can be directly attributed to our embrace of “liberal democracy,” and the many-splendored benefits that flow from this revolutionary and liberating economic/political arrangement. The average person on the street may not be able to explain exactly what is meant by the term, but they nevertheless hear it invoked by our pundits on a routine basis, and so have enthusiastically (if uncritically) jumped on board this ideological bandwagon. For example, in describing Robert Mueller’s long, deliberate investigation into possible Russian collusion in the 2016 elections, Andrew Sullivan recently had this to say in New York magazine: “Mueller single-handedly showed the norms of liberal democracy and the rule of law can be upheld even as most of the political actors, especially the president, have been behaving like bit players in a banana republic.”

… flattering ourselves into thinking we are special


A certain breed of American tends to flatter himself into believing we live under the rule of law, in a land of equal opportunity, where all are free to make their own way to the best of their ability. That life has worked out nicely for the clever and the advantaged blinds that specimen to the many inequities built into our system, where the rich get richer without much effort, and the poor remain essentially powerless to improve their circumstances in any meaningful way. We see free-market capitalism – the beating heart of a liberal democracy – as our secret sauce. If only we could find a way to export our dynamic sense of entrepreneurship to the struggling, backward regions of the planet. That would be the best way to address the dire economic straits so much of the Third World finds itself mired in. But this facile analysis ignores a few inconvenient truths about the free-market and unfettered capitalism. Inconvenient Truth #1: The free market does not automatically serve every segment of the population. A “market failure” is what happens when private companies don’t provide a socially desirable good due to a lack of return on investment. In other words, if there is not enough money to be made from a potential venture, the entrepreneur deems it not worth his time or effort, and therefore nothing will happen. This was true in the United States of the 1930’s, when electric and telephone companies were unwilling to enter rural America. And it’s happening again now, in those same regions of our country, with broadband internet access. Expecting “the market” to magically lift the Third World (or any depressed area) out of poverty ignores a basic tenet of enlightened self-interest: why trapes off to a forlorn part of the world, and deal with untold obstacles and hardships, when we can make more money right where we’re at? Inconvenient Truth #2: Our multi-national conglomerates have mastered the art of extracting whatever natural resources are to be had from various and sundry remote outposts around the world, while managing to leave the indigenous populations as destitute as before the vaunted “development” came to their town or village.

… the need for a new, more comprehensive approach


The problem of economic disparity, and of struggling nations, requires a new, more comprehensive approach than the one we are used to applying. Our conservative/libertarian think-tanks, in particular, do not have all the answers when it comes to economic development or foreign policy. Rather, “Today it is most important for people to understand and appreciate that the social question ties all men together, in every part of the world.” So says Paul VI in his papal encyclical of March 26, 1967, Populorum Progressio (On The Development Of Peoples):

”The progressive development of peoples is an object of deep interest and concern to the Church. This is particularly true in the case of those peoples who are trying to escape the ravages of hunger, poverty, endemic disease and ignorance; of those who are seeking a larger share in the benefits of civilization and a more active improvement of their human qualities; of those who are consciously striving for fuller growth.

“With an even clearer awareness, since the Second Vatican Council, of the demands imposed by Christ’s Gospel in this area, the Church judges it her duty to help all men explore this serious problem in all its dimensions, and to impress upon them the need for concerted effort at this critical juncture.

Our recent predecessors did not fail to do their duty in this area. Their noteworthy messages shed the light of the Gospel on contemporary social questions. There was Leo XIII’s (1891) encyclical Rerum Novarum, Pius XI’s (1931) encyclical Quadragesimo Anno, Pius XII’s radio messages to the world (June 1, 1941, Christmas 1942, and May 14, 1953), and John XXIII’s two encyclicals, (1961’s) Mater et Magistra, and (1963’s) Pacem in Terris”.



… a guideline, not a specific policy proscription


Paul VI’s effort, like all papal encyclicals and Church documents (and Christ’s Gospel, for that matter), does not spell out a specific economic policy proscription. Instead such literature serves as a clarion call to remind us that an economic system must operate under a moral umbrella, within a moral framework, if it is to function properly and yield equitable (not equal) benefits for all its willing participants. Economic behavior cannot be detached from moral considerations. It is not a “science” whose “laws” somehow supersede the sense of right and wrong we are all born with. This is a thumbnail sketch of Catholic social teaching on the subject. The curse of the modern era is the way economic actors have been given elaborate intellectual justification to “operate freely,” apart from any such consideration. If our economists and think-tank scholars, especially those of the conservative/libertarian variety, are serious about improving the lot of the less fortunate in this country and around the world, they would do well to consult the Catholic Magisterium for guidance, in addition to the series of well-known “rational” treatises they have weened themselves on for the last several hundred years. In the meantime, while we await the glorious epiphany on the part of our wealthy leaders and opinion makers, our movers and shakers who sit atop the investor class, what can the rest of us common folk with a little disposable income to spread around do about the crisis at the border? One thing we can do is contribute to those international charities that already have boots on the ground in the countries under discussion, working with local residents to build roads, bridges, schools, homes, and clean water systems. All the things we in the First World take for granted. If you want to be thoroughly pragmatic about it, give to such charities until it hurts, or it is just a matter of time until these marginalized families make their way to your city or town, to become a burden on our already-strained municipal services. As the man said, today the social question really does tie us all together, in every part of the world, whether we like it or not. Robert J. Cavanaugh, Jr. April 13, 2019

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Democracy In Action

Democracy In Action

March 24, 2019 (76 words)

Democracy allows us to have an opinion about everything, without necessarily giving much thought to anything in advance. No need to investigate or educate ourselves on a given subject, whatever pops into our head first is usually good enough. And we take great pride in this casual expression, considering it nothing less than a precise discernment of the world around us.

Robert J. Cavanaugh, Jr.
March 24, 2019

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Finding A Home

Finding A Home

March 19, 2019 (3,431 words) When the book Why Liberalism Failed by Notre Dame associate professor of political science Patrick J. Deneen was published by Yale University Press in January 2018, it was immediately reviewed in all the best places, including The New York Times, The Wall Street Journal, The Washington Post, The American Conservative, and The Economist. Predictably, none of these name-brand publications could bring themselves to fully endorse Mr. Deneen’s basic premise – that modernity is not the unmitigated success of popular legend. In my reading of the situation their reservations can be said to center on the fact that Deneen’s perspective is a bit “too Catholic.” Now over a year later, a review of this same book appears in the current March 2019 issue of Culture Wars magazine, provided by frequent CW contributor the Reverend Jeffrey Langan. Father Langan is also less than thrilled with the cultural analysis offered in Why Liberalism Failed, but on the grounds that he apparently finds Mr. Deneen’s thesis “not Catholic enough.” Before exploring the source of Father Langan’s discontent, there is value in clarifying that the title of this book refers to the ideology known to academics as “Classical Liberalism,” rather than the contemporary left-leaning political persuasion the general public is so familiar with.

…celebrating the emancipation of the individual


Its major tenet is a complete emancipation of the individual in all areas of public and private life, in both the political and economic realms. In the pursuit of liberty and equality, it celebrates the rejection of authority and law, custom and tradition. It rose to prominence some 500 years ago, supplanting Christianity (aka Catholicism) as the preferred operating system for Western society. The resulting breakdown of social norms has been an undeniable boon to individual expression and acquisition, but a certifiable bust for the shared culture once referred to and understood as the common good. It’s critically important to note how classical liberalism encompasses both sides of the liberal/conservative dialectic we think of as being diametrically opposed to each other. That is to say, today’s conservatives and liberals both draw their inspiration from classical liberalism. And while it may be awkward to insert the word “classical” in front of the word “liberalism” in every single sentence, failure to consistently stipulate accordingly can lead to the popular confusion that “liberals” are the despicable bad guys, and “conservatives” are the undisputed good guys. Such as when Mr. Deneen writes: “Today’s widespread yearning for a strong leader, one who will take back popular control over liberalism’s forms of bureaucratized government and globalized economy, comes after decades of liberal dismantling of cultural norms and political habits essential to self- governance.” Or when Father Langan opines, early in his review: “For Deneen, this set of circumstances is a logical result of the philosophical ideas that the founders of liberalism embraced. They represent the inner logic of liberalism as it has worked itself out over the centuries. Liberals operate according to a feigned objectivity, an objectivity that turns out to be a mask that conceals the liberal’s desire to seize power for himself and his elite group of friends.”

… helping the general reader decipher the scholars


Scholars such as Deneen and Langan may know exactly what they are talking about, but the general reader has a hard time deciphering from such excerpts that those we commonly stamp as “conservative” are in fact the perfect embodiment of classical liberalism. It is their commitment to “economic freedom,” under the guise of what is euphemistically referred to as “ordered liberty” – sort of the political/economic equivalent of having your cake and eating it, too – that earns conservatives the Deneen designation of “classical liberals.” This group has always pursued personal aggrandizement without regard to the broader community or the common good. Mr. Deneen does get around to pointing this out, but I for one wish he would be less nuanced and more overt in the process. The difference in our styles can probably be attributed to the fact that Patrick J. Deneen is a 54 year-old academic at the height of his powers, writing for a rarified audience. Whereas I am a washed-up, 64 year-old working stiff. But since there are a lot more working stiffs walking around than there are academics in the ivory tower, and since those working stiffs could all benefit from a little edification, there is something to be said for each of us retaining our respective styles.

… “classical” liberals and “progressive” liberals


The folks Deneen describes in his book as “progressive liberals” are the people I think of as initially focusing their efforts on battling the widespread injustice created by self-interested conservatives. Over the last century or so, however, that social justice message has been diluted by the adoption of a radical version of human flourishing, achieved through alternative (and until recently, universally condemned) forms of sexual expression. Per his review, the Reverend Jeffrey Langan does not find any of the above to be the least bit controversial. So what is it, exactly, about Why Liberalism Failed that leaves Father Langan feeling less than satisfied? It’s clear both men agree classical liberalism came to the fore and ushered in the modern era, with the United States being its pre-eminent vehicle in the world today. Both men acknowledge this ideology has actually been around since the beginning of Western Civilization, starting with Ancient Greece. But then Father Langan announces: “before we enter into a full assessment of Deneen’s argument, it would be good to outline a positive treatment of (classical) liberalism opposed to Deneen’s.”

… but everyone is already well-versed


I’m not sure why Father Langan believes this to be needed, let alone helpful. Everyone, it seems, is already well-versed in the “positive treatment” of classical liberalism, especially the smart people who have reviewed Mr. Deneen’s book. Be that as it may, as an exemplar of this positive treatment, Father Langan introduces us to one Charles Taylor and his big book The Secular Age (Harvard University Press, 2007). Mr. Taylor has been chosen for this theoretical comparison “because his ideas currently hold much sway in intellectual circles around the Vatican, both at what are thought of as liberal or conservative Ecclesiastical Universities in Rome.” At this juncture Father Langan’s review morphs into a broad summary of Charles Taylor’s heterodox ideas and nefarious influence within Catholic intellectual circles. He focuses on a 2004 presentation that Taylor made to the Lumen Christi Institute at the University of Chicago, before an audience that included many Catholic professors from Midwestern universities.

… far-ranging implications of a 2004 Lumen Christi presentation


“During his talk, Taylor wagged his finger at the ‘hard-headed’ Thomists in the audience, and told them it was high time they admit they were now part of a political, economic, military, and social system (i.e. classical liberalism) that was superior to any set of historical Catholic conditions and any potential conditions they could think of. Their lot, Taylor wagged, was to accept the superiority of the system and live with it.” With this anecdote Father Langan convincingly establishes that Charles Taylor’s views are indeed antithetical to those of Patrick Deneen. But in what way does Taylor’s effrontery undermine Deneen’s orthodoxy? Because “professors with whom (Deneen) collaborates were (at this 2004 talk), kept quiet (during the Q&A that followed), and (then) got invited to lunch with the guru.” Gosh Reverend, that seems like a pretty flimsy chain of causality to me. We would probably all agree with Father Langan’s terse description: “Taylor’s vision of a practicing Catholic is more macabre and more laden with compromise with radical (classical) liberalism…” But why does that then prompt Father Langan “to wonder where, in the end, Deneen stands?”

… the dreaded de Tocqueville influence


Mr. Deneen’s well-known admiration for the work of Alexis de Tocqueville may be responsible for at least some of Father Langan’s skepticism. One might be inclined to dismiss a large swath of Deneen’s analysis outright, if one presumed it hewed too closely to the conventional Tocquevillian logic that attributes the success of our heralded pluralist-democratic-capitalist order to vaguely “pre-liberal” forces and habits. Here I would take Father Langan’s point, if this is indeed one of his points: Does de Tocqueville, or any other historian or political theorist for that matter, ever get around to properly identifying these generic, uncredited “forces and habits” as emanating from two thousand years of Catholic anthropology? Maybe the young Ross Douthat comes closest to making this positive ID, when he explains in his own New York Times op-ed how such “unchosen obligations and allegiances” include “the communities of tribe and family, the moralism and metaphysical horizons of religion, the aristocracy of philosophy and art.” Father Langan tells us he would like to see Why Liberalism Failed be more explicit in spelling out, as he writes, how “the conflict between the Catholic version of the moral order and the (classical) liberal one is the most essential distinction to make when considering (classical) liberalism.”

… the unity between faith and reason, or faith and science


“The Church,” Father Langan continues, “has always held (there is a) unity between faith and reason – or reason and science – because truth is one. Understanding this unity depends on Catholics in their respective fields acquiring a requisite level of theological understanding that enables them to see that unity.” The good Reverend may not think Mr. Deneen makes the “Catholic distinction” argument emphatically enough, but the many establishment scribes who have found fault with the book appear to grasp the underlying theme of Why Liberalism Failed quite well. David Brooks of The New York Times may be representative of the dissenters, when he wrote on January 12, 2018: “Deneen’s book is valuable because it focuses on today’s central issues… Nonetheless, he is wrong… The difficulties stem not from anything inherent in (classical) liberalism but from the fact that we have neglected the moral order and vision of human dignity embedded within (classical) liberalism itself.” This is the modern conceit in a nutshell, is it not? While celebrating liberty and equality, we casually dispense with authority and law, custom and tradition, and confidently think we can still somehow retain moral order and a vision of human dignity. Patrick Deneen may not bring enough fire and brimstone to suit the Reverend Jeffrey Langan’s taste, but he is prophetic enough for Ross Douthat. Again, from Mr. Douthat’s NYT op-ed of January 14, 2018: “Deneen comes as a Jeremiah to announce… where it once delivered equality, (classical) liberalism now offers plutocracy; instead of liberty, appetitiveness regulated by a surveillance state; instead of true intellectual and religious freedom, growing conformity and mediocrity. It has reduced rich culture to consumer products, smashed social and familial relations, and left us all the isolated and mutually suspicious inhabitants of an ‘anti-culture’ from which many genuine human goods have fled.”

… the wish for cultural analysis that is more concrete


Look, there is nothing wrong with Father Langan wishing “Deneen (would) write more concretely about how (classical) liberalism uses sexual revolution and debt in order to break up the moral order, enslave the citizens, and establish its agents in positions of power.” And it’s okay by me if Father Langan considers paragraphs like the following from Deneen’s book to be not “concrete” enough:

Thus one of the (classical) liberal state’s main roles becomes the active liberation of individuals from any limiting conditions. At the forefront of (classical) liberal theory is the liberation from natural limitations on the achievement of our desires – one of the central aims of life, according to Locke, being the “indolency of the body.”

A main agent of that liberation becomes commerce, the expansion of opportunities and materials by which not only to realize existing desires but even to create new ones we did not know we had. The state becomes charged with extending the sphere of commerce, particularly with enlarging the range of trade, production, and mobility.

The expansion of markets and the infrastructure necessary for that expansion do not result from “spontaneous order”; rather, they require an extensive and growing state structure, which at times must extract submission from the system’s recalcitrant or unwilling participants.

Initially, this effort is exerted on local domestic economy, in which the state must enforce rationalization and imposition of depersonalized modern markets. Eventually, however, this project becomes a main driver of (classical) liberal imperialism, an imperative justified among others by John Stuart Mill in his treatise Consideration on Representative Government, where he calls for compulsion over “uncivilized” peoples in order that they might lead productive economic lives, even if they must be “for a while compelled to it,” including through the institution of “personal slavery.”

One of the main goals of the expansion of commerce is the liberation of embedded individuals from their traditional ties and relationships. The (classical) liberal state serves not only the reactive function of umpire and protector of individual liberty; it also takes on an active role of “liberating” individuals who, in the view of the state, are prevented from making wholly free choices as (classical) liberal agents. At the heart of (classical) liberal theory is the supposition that the individual is the basic unit of human existence, the only natural human entity that exists.

(Classical) Liberal practice then seeks to expand the conditions for this individual’s realization. The individual is to be liberated from all the partial and limiting affiliations that preceded the (classical) liberal state, if not by force than by lowering the barrier to exit.

The state claims to govern all grouping within the society; it is the final arbiter of legitimate and illegitimate groupings, and from its point of view, streamlining the relationship between the individual and the (classical) liberal state. (pages 49 – 51)

Call me a hopelessly sentimental old Pollyanna if you must, but from my perch in the audience the evidence suggests the Reverend Jeffrey Langan and Mr. Patrick J. Deneen should be seated on the same side of this particular debate stage.

… even allies may disagree on tactics from time-to-time


So the lesson here might be that even cultural/religious allies will tend to disagree on tactics from time to time. Like Father Langan, Ross Douthat is disappointed that Deneen “did not go further.” In Douthat’s case, he wanted to see the author envision a full-blown alternative political order. Instead, Douthat tells us, Deneen “urges a rededication to localism and community, from which some alternate political and economic order might gradually develop.” Many secularists find fault with the “localism” and “community” aspect of this proscription. Writing in The New York Times on January 17, 2018, Jennifer Szalai points out how: “Deneen says the only proper response to (classical) liberalism is ‘to transform the household into a small economy.’ Home may be where the heart is, but it can also be the site for homegrown prejudice, petty grievance and a vicious cruelty. “Deneen is so determined to depict (classical) liberalism as a wholly bankrupt ideology that he gives exceedingly short shrift to what might have made it appealing – and therefore powerful – in the first place. With all its abiding flaws, (classical) liberalism offered a way out for those who didn’t conform to the demands of the clan.”

… seeking a champion who will take care of everything


Many believers, on the other hand, can’t help but cringe at the “gradually” part of Deneen’s recommendation. We long for a “strong leader” to be elected president, or elevated to the papacy. Lazy and self-indulgent by nature, we seek a champion who will take care of everything and set things straight, so we can return to our entertainments. (Needless to say, the polished and accomplished Mr. Deneen would find a way to avoid employing such a blunt formulation, at all costs.) But gradually is the only way this sort of thing – restoration of the culture – will happen. It would help if we could approach this task while keeping the image of Francis rebuilding the small chapel outside Assisi in mind. We have to be prepared to go slowly, as he did, stone by stone. Starting with a change in the way we think, in the way we relate to our immediate family, our neighbors and our co-workers. In the way we see the world around us. Reading the various reviews of Why Liberalism Failed one senses a void, a missing piece. Even Ross Douthat’s eloquent commentary does not quite do justice to the full scope of Deneen’s work. While the subject matter sounds familiar – cultural issues that are bandied about on a daily basis – the perspective is much broader and deeper than what we are used to, and the language at first is a bit foreign to our ears. This is why the book defies easy categorization.

… apparently only Deneen can do justice to Deneen


Perhaps the only one who can properly distill Patrick Deneen’s message is Mr. Deenen himself. He is regularly invited to speak at prestigious universities and institutes, and is granting numerous interviews to expound on the themes of his book. Much of this public exposure can be readily accessed on the internet. One such interview was published on May 28, 2018 by The Nation, a progressive monthly that proudly announces it was founded by abolitionists in 1865. Its admirers consider it a reliable source of firebrand journalism. Its detractors see it as a pernicious liberal rag. That its editors would deem the rather staid Mr. Deneen worthy of their time, and that Deneen would agree to sit down to chat, is remarkable enough. For the transcript of the ensuing conversation to read as a cordial and informative exchange between friends amounts to a revelation, and a measure of Patrick Deneen’s ability to communicate across the ideological divide. To be sure, Mr. Deneen is not alone in mining this particular vein of cultural inquiry. But he has honed his distillation in a way that is finding special resonance in the minds of the intellectual elite, as well as with the more thoughtful members of the general public given to pondering such matters.

… quietly functioning as an agent of change


On paper and in person his tone is always measured. As if he realizes he needs to give his readers and listeners a chance to connect the dots, and digest the big concepts he is moving around and re-positioning. His appeal lies in the way he does not try to provoke, though his work is unquestionably functioning as an agent of change. It would seem the trick to making a dent in the culture wars is finding a way to simultaneously speak to both “classical liberals” and ”progressive liberals,” and prompt each side to reconsider their most cherished economic/political assumptions. Deneen has developed and integrated and synthesized his thought over the course of his academic career to where he is now uniquely qualified to help blaze that trail. Lest I give the wrong impression, I can relate very well to the Reverend Jeffrey Langan’s impatience – if he will permit such a characterization. The last five hundred years have not been kind to those us who still find our meaning in the Catholic vision of human dignity and human flourishing. The last half-century in the life of the Catholic Church has been especially painful, marred as it has by misdirection, subversion, and false accommodation. While there have been some brazen outliers who openly sought the ruination of souls, many of the fallen-away are little more than well-intentioned bystanders, who received faulty instruction or suffered from poor example. Now we must try to help each other as we all attempt to dig ourselves out, dust ourselves off, and continue on the daunting road to eternal salvation. Drawing sustenance along the way from wherever we can find it. For the record, I have not finished reading Why Liberalism Failed, so my own review will not be ready for some time yet. In fact, I may never finish reading this slim volume. Like a papal encyclical or a favorite poem, its passages are worthy of being parsed, again and again. It is that kind of book, and I’m grateful to Patrick Deneen for having written it. Together with the latest from Thomas Storck (An Economics of Justice and Charity), and Mary L. Hirschfeld’s ground-breaking entry (Aquinas and the Market), I am happily immersed in a veritable master class on Catholic anthropology, and Catholic social teaching. At last I have found my home. Robert J. Cavanaugh, Jr. March 19, 2019

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Creating (Crummy) Jobs

Creating (Crummy) Jobs

March 11, 2019 (2,212 words)

Many a member of my once-dominant post-WW II “baby boom” generation (b. 1946-1964) began life with decidedly liberal tendencies. But we were mugged by reality as we grew into adulthood, and calcified as conservatives.

This is not necessarily as terrible as it sounds. Among other things, we developed a practical side and became reliable. We learned to make the most of what we were given. In other words, we became our parents.

And it’s not just the clever and the cognitively-blessed of my generation who have made their mark. Sure, the doctors and lawyers and fancy-pants corporate players, the bond traders, real estate developers, and management consultants have all excelled in truly remarkable fashion, attaining a level of prosperity our parents couldn’t begin to imagine.

But even the lesser mortals among us, for the most part, have been able to secure gainful employment which has provided a happy life of comfort and ease, compared to that of our immediate forbearers.


… a widely held consensus about the rules of engagement


While our personal industriousness has contributed mightily to what I and my contemporaries have achieved, we also have the “system” to thank. It generated all that post-WW II opportunity, and it came with a widely held consensus about some basic rules of engagement. Those rules featured a modicum of concern for the well-being of everyone involved, with at least a passing attempt being made to balance the interests of capital with those of labor.

Now, as we baby boomers continue our collective fade into the background, settling into what for many of us is a relatively stress-free retirement, we may not fully realize just how much things have changed since the halcyon days of the 1970s and 1980s, when we were first coming up and making our way in the world.

Or maybe we do. How many of us have spent the last decade or two struggling with the disappearance of “people skills” among our younger co-workers, and the decreasing importance of developing a strong personal rapport with those we work with, as everything has become so high tech?

How many have cowered in fear of being unceremoniously let go in yet another round of downsizing and restructuring? How many have experienced a jarring lay-off in their fifties, to face the near impossible task of finding new employment even remotely commensurate with one’s experience and ability?

Even if we escape the ax, the winds of change can turn the final chapter of our career into a frustrating death march, as we often find ourselves counting the days until we can stop showing up.


… certain workplace changes are inevitable


For those still in the thick of it, certain workplace changes are inevitable, and one has no choice but to adapt. The world no longer needs hat makers, for instance, or door-to-door milkmen. Soon, we are told, all long distance freight haulers will be replaced by self-driving vehicles.

But what we are experiencing at present is more than just an inevitable evolutionary process of jobs being lost in an “old” industry only to be replaced in another, brand new one.

We are witnessing an unraveling of the underlying consensus about the need for employers to relate in a socially-responsible way to their employees. For a time in this country – the middle of the 20th century, at least – there was a measure of deference shown toward those who merely work for, while having no ownership stake in, a commercial enterprise.

But that deference has evaporated. A number of qualified observers continue to analyze the origins and ongoing effects of this phenomenon in illuminating detail. Readers pressed for time may appreciate getting the gist of the story in a few broad strokes. So here goes…


… detailing the unraveling in a few broad strokes


The unraveling may have started in 1962, when Milton Friedman popularized the notion that business has but one social responsibility: to be profitable. Mr. Friedman was not the first libertarian economist to reach this conclusion, but he did succeed in making it a widely-accepted mantra.

The next milestone may be said to have occurred in 1968, when Bruce Henderson, founder of the Boston Consulting Group (BCG), came up with the famed analytical tool known as The Experience Curve, which was then expanded into the widely distributed pamphlet, Prices Go Down Forever, in 1974.

This BCG exclusive described a path to increased profitability through continued growth and expansion. Mr. Henderson’s spin was to suggest the resulting efficiency of scale be applied to lowering one’s prices, to the point of driving one’s competition out of business.

Then along came The Anti-Trust Paradox, published by Robert Bork in 1978. In it Mr. Bork (who would go on to be an unsuccessful nominee to the Supreme Court a decade later) argued against a century of concern over monopolies and their corrosive effect on the social fabric.

In Bork’s view, big business should not be thought of as inherently bad, and smaller, inefficient companies should not be “protected” from being acquired by larger well-run companies. Mr. Bork’s unique insight was to suggest “consumer welfare,” in the form of lower consumer prices, should be our new guiding principle in these matters, moving forward.

The roll-back of anti-trust legislation that occurred in the 1980s during the Reagan era, which kicked off the merger and acquisition frenzy that is still with us, was inspired and justified in large measure by the work of this single theorist.


… conspiring to create a cultural conundrum


These and other circumstances have conspired to create a cultural conundrum. As consumers we find ourselves blessed with unprecedented access to a wide range of low cost goods, available through ever-more convenient venues. As wage earners who need to make a living, however, we feel a bit cursed, as our work lives have become increasingly constrained and precarious.

All while corporate profits have continued to skyrocket. Evidence of which can be found in our current “bull market,” which just turned ten years old, and counting. This refers to the long rally the stock market has been experiencing since March 2009, after the financial system almost collapsed.

As reported in The New York Times on Saturday, March 9: “The rally has generated over $30 trillion in wealth. So why aren’t more Americans celebrating? They’re still scarred by the financial crisis, and the fruits of the recovery fell mostly to the rich.”


… our practical nature and responsible attitude


Many of my salt-of-the earth family and friends are instinctively conservative by virtue of their practical nature and responsible attitude. But this political orientation makes it difficult for them to detect certain fault lines. They have not gotten burned by allowing the market to set wages and benefits, for instance, as so many of our less fortunate neighbors have gotten burned.

There remains a core belief among the conservative electorate in a system still quaintly referred to as free enterprise, said to be based on open competition. They don’t see the discrepancies inherent in our highly rigged system, because they have emerged relatively unscathed, and none the worse for wear.

Such well-intentioned souls are too easily misled. When author David Halberstam described the fall of the once-mighty Detroit auto industry in 1986’s The Reckoning, it was received by those of my acquaintance as a cautionary tale of complacency that bred inefficiently.

But this straightforward conclusion is undermined by a disturbing fact that escapes the notice of all who simply purchase cars, and don’t have to earn a living making them. The foreign manufacturers who came in and cleaned Detroit’s clock did so with a non-union workforce, offering a wage and benefit package literally half what the old-line union workers had been getting.


… invoking “ lean-and-mean” at the expense of the little people


The Detroit auto industry of a previous generation may have had their great reckoning coming. But why in our brave new world does being lean-and-mean always express itself at the expense of the little people on the lowest rung of the economic ladder?

We are relentlessly told any increase in wages or benefits will inevitably result in an increase in final cost to the consumer. But no one ever questions the mathematical equation behind this assertion. We are never given any sort of transparent explanation of how it all must fall on the lowly line workers.

In a previous generation, domestic auto makers were profitable, consumers were able to afford their product, and the people who worked on the assembly line made a decent living. What changed?

While no doubt there are many contributing factors, the short answer would appear to be the enlightened thinking of Milton Friedman, Bruce Henderson, and Robert Bork. Along with the kill-or-be-killed strategies dispensed by our leading business schools, as detailed in books such as The Management Myth (Matthew Stewart, Norton, 2009), and Ahead of the Curve (Philip Delves Broughton, Penguin, 2008).


… a dramatic shift away from social responsibility


It is the radical shift away from any sense of social responsibility in the employer-employee dynamic that is directly responsible for the growing gap between executive and non-executive compensation.

We all know about market disrupters these days, and such firms and their founders are cited as being on the cutting edge of commerce. The efforts of these attractive disrupters always yield lower prices and easier access. But that good news for consumers is the direct result of dispensing with the social contract that once existed in the workplace.

All the innovation would be easier to swallow, from the perspective of those who are stuck having to earn a living, if the “new economy” jobs were at least as life-sustaining as the old ones made obsolete. But so many of our clever market disruptors specialize in creating employment that leaves a lot to be desired in the way of job security, wages, benefits, and working conditions.

When Amazon started in the book-selling business it was winning people over with its response time. One’s local bookseller may have dropped the ball on a special order more than once, while Amazon came through with flying colors, and no delay. So why did Amazon also decide to chop their sell price to the bone?

It’s not complicated. The business plan was to drive everyone else out of business and corner the market for themselves. They operated at a loss for years, surviving on successive rounds of Wall Street funding, and only just recently starting turning a profit. But oh my, what a profit they have started to turn. They would never have achieved this financial windfall had they not swung for the fences.


… admiring the organizational wizardry of Amazon


We can appreciate the service Amazon provides, while taking advantage of the low prices it offers. We can also admire its business acumen and organizational wizardry – as long as we don’t have to work there ourselves.

Its mammoth order fulfillment centers are popping up everywhere, and employ hundreds of thousands. True, Amazon pays higher than the minimum wage, but not nearly enough to qualify as a “living wage” that can support a family.

To its credit it does offer medical coverage and other benefits, including stock options. But the coverage is skimpy, and it and all the other benefits only kick in after a year on the job. Lasting that long proves difficult for many, due to the high-pressure “Hunger Games” working conditions.

Because of its recently established market dominance, everyone now seems to know someone who works for Amazon. But no one knows anyone who says it’s a good place to work.

These days, the only alternative to Amazon for the chronically unemployed is the gig economy. This “nebulous collection of online platforms and apps” has been heralded by its proponents as just about the best thing to ever happen to working people.


… the best thing to ever happen to working people


You get to be your own boss, choose your own hours, and control your own income. It’s brining entrepreneurship to the masses. It will reverse income inequality. All while enhancing worker rights.

Or maybe it’s just the latest smoke screen designed to take advantage of working people in yet another, completely novel way.

Allow me to close with this excerpt from the jacket of a new book published this month by the University of California Press.

“In Hustle and Gig, Alexandrea J. Ravenelle shares the personal stories of nearly eighty predominantly millennial workers from Airbnb, Uber, TaskRabbit, and Kitchensurfing. Their stories underline the volatility of working in the gig economy: the autonomy these young workers expected has been usurped by the need to maintain algorithm-approved acceptance and response rates.

“The sharing economy upends generations of workplace protections such as worker safety; workplace protections around discrimination and sexual harassment; the right to unionize, and the right to redress for injuries.”

And then there is Alexandria Ocasio-Cortez, the newly elected U.S. Representative from Queens, NY, who frames the latest twist on employment this way:

“Spoiler alert: the gig economy is about not giving people full-time jobs. So it should be no secret why millennials want to decouple your (health) insurance status from your employment status.”

Robert J. Cavanaugh, Jr.
March 11, 2019

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Loopholes and Deductions

Loopholes and Deductions

March 1, 2019 (1,103 words) Nobody likes to pay taxes. Very few of us ever call our friendly neighborhood accountant and say, “You know, Larry, this year let’s make sure I hand over my fair share.” This inbred aversion to taxation is even more pronounced among the business class. The goal of every privately-held company is a zero tax liability. The same goes for all large, publically traded corporations as well. The latter have a legal responsibility, as a matter of fact, to act in the best interests of their shareholders. This is uniformly interpreted to mean maximizing shareholder value at every turn. A major strategy employed in that maximization is driving down the corporate tax burden as low as possible. The big tax reform bill the current Republican administration got through Congress in 2018 lowered the top business rate from 35 percent to 21 percent. We were told for years our 35 percent rate, the highest in the industrialized world, was hurting our competitiveness in the global marketplace. Somewhat less discussed is that between 2008 and 2015, profitable Fortune 500 companies paid an average effective rate of 21.2 percent, well below the 35 percent rate in place during that period. And 100 of those top 500 companies paid zero or negative tax in at least one profitable year, while 58 of them had multiple zero-tax years while being profitable.

… a variety of legal credits, rebates, and loopholes


This revealing back story is available from a variety of reputable sources, including a February 16 article in The Washington Post written by Christopher Ingraham. He quotes a Matthew Gardner, identified as a senior fellow with The Institute for Taxation and Economic Policy (ITEP), who points out how our largest, most successful companies reduce their effective tax rate using a variety of credits, rebates, and loopholes. It’s all legit and above board. These tax breaks have been written into law as a result of full-court pressure applied by influential corporate lobbyists. As Mr. Gardener of ITEP puts it: “In a political system that runs on private money, it’s always going to be hard (for our politicians) to vote against the folks who have the money.” Not every piece of tax legislation passed by Congress is a back-door ploy to reduce the tax liability of wealthy corporations, however. Sometimes these regulations have a worthy objective, like trying to spur economic activity, or curb an abusive practice. But as we all know, even the best laid plans occasionally just back-fire. In 1993, President Bill Clinton and congressional Democrats set out to tackle the growing problem of lavish executive compensation packages that were a legacy of the 1980s, using Section 162(m) of the U.S .Tax Code.

… the turn toward stock-based compensation


While companies pay sales taxes to state and local governments, the federal government taxes them on their profits. Through 1993, companies could deduct the cost of any salary over $1 million paid to top executives from their taxable earnings. By eliminating that deduction, Congress was trying to cut down on the growing gap in pay equity. But what it inadvertently did was create an entirely new tax dodge. By not thinking to address stock-based compensation, such compensation technically remained “tax deductible.” Companies got creative, as they always do, and started to use stock options as an important form of compensation for their top people. Ever since the well-meaning Democrat tax reform of 1994, then, companies have been able to deduct the cost of stock-based compensation from their taxable earnings. It doesn’t cost any money to hand out these shares to employees, because, instead of incurring the expense of buying back existing shares for redistribution, companies just issue new shares whenever it wants. While this practice obviously hurts current stockholders by diluting the value of existing shares, it doesn’t involve any direct financial cost to the company.

… a rise in share price means a bigger deduction


Additionally, the way this “cost” is estimated for tax purposes, the more the share price rises, the bigger the deduction a company can claim for handing out shares. Is this a great country, or what? Take Amazon, for instance. It earned $11.2 billion in profits last year, which is a darn good haul in anybody’s book. Its Securities and Exchange Commission form 10(k) shows it recorded about $1 billion in deductions for stock-based compensations – eliminating what would have been a considerable federal tax liability. To its credit, Amazon is not lowering its tax bill through classic shell game tactics like stashing profits in offshore subsidies, or declaring itself a foreign company. Amazon isn’t cheating anyone or skirting any rules, it just legitimately owes no taxes. In addition to the stock option compensation maneuver, it avails itself of a non-controversial research and development tax credit, designed to encourage profitable companies to invest earnings into R&D. Congress extends this credit on a bipartisan basis, in the belief that research into innovation eventually benefits us all. And Amazon undeniably does quite a bit of R&D. It also applied a temporary provision in the 2018 tax bill that allows companies to take a 100 percent deduction for investment in equipment. This is somewhat more controversial, and has less bipartisan support. But if you don’t like companies that use profits for share buybacks and do little investing, that means you wish more companies acted like Amazon, which does no share buybacks but a lot of investing.

…observing the letter of the law


Jodi Seth, an Amazon spokeswoman, recently issued the following reassuring statement: “Amazon pays all the taxes we are required to pay in the U.S. and every country where we operate, including paying $2.6 billion in corporate tax and reporting $3.4 billion in tax expense over the last three years.” Which, if you are listening closely, doesn’t quite speak to the issue of how Amazon could rack up $11.2 billion in profits last year and manage to pay zero U.S. federal income tax in the process. Matthew Gardner, the Institute for Taxation and Economic Policy (ITEP) senior fellow, calls this situation a failure of American tax policy. “Their U.S. profits doubled in the last year. If anyone is ever going to be subject to the corporate income tax, you would hope it would be Amazon,” he said. Yes, Mr. Gardner, you would. But since we have adopted an adversarial, every-man-for-himself economic model, and since that model has admittedly brought our society so far, it doesn’t occur to any of us – individuals or businesses – to just hand over our fair share. Robert J. Cavanaugh, Jr. March 1, 2019

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