Power and responsibility

With great power comes great responsibility. – Ben Parker, Spiderman’s Uncle

Opinion – Usually when I write these posts I wake up with the thoughts fully formed.  This usually happens on a Monday morning.  So yesterday when I woke up with nothing to write about I was concerned.  But this morning it happened.  Like and email that instantaneously appears in your inbox, this post popped into my head. 

The collapse of News of the World has sparked a sensational wildfire of accusations and resignations throughout the UK.  The crisis has become so severe that Prime Minister David Cameron is returning early from a trip to South Africa to ‘deal with the scandal’ (Reuters, 2011).  When power is concentrated in the hands of the few, whether in media, politics, or business, corruption will surely manifest.  

For ages powerful people have hand picked those who work for them.  They create an inner circle in order to keep them close and under tight control.  But in an interconnected world this perceived ability to control is fleeting.  The public values transparent processes because in our minds it is fairer.  But I have been around long enough to know that even these ‘transparent’ processes are often used as a way to legitimize the handpicked few.  

We need men and women in business and politics who will step up and wield power wisely and individuals and groups who will accept the responsibility that comes with power.  But as the saying goes, ‘power corrupts, and absolute power corrupts absolutely.’  In an age of globalization and conglomeration we have seen the devastating effects of absolute and concentrated power.  If a minority holds the key there will always be the temptation to lock up the majority – but they’ll be so cunning in the way that they do so that the majority will think that the minority is doing them a favor.  

No one, and no country, is immune from this type of behavior.  It was reported this morning that Earthquake Recovering Minister Gerry Brownlee handpicked a committee to review decisions made by CERA, the Christchurch Earthquake Recovery Authority (RadioLIVE, 2011).  Labour has called for a review of the selection process, which I think is wise.  There may be nothing to it, but in times of crisis we have to be particularly vigilant.  In our need to seek out security in uncertainty we will turn to anyone who looks or sounds like they have our best interest in mind.  When we bestow such power on individuals and organizations we must ensure that they wield that power responsibly.

Simple thoughts on avoiding America's credit default

OPINION – The Republicans and Democrats have been fighting over how to handle America’s debt crisis.  Moody’s has warned of a possible downgrade of America’s top rating if the issue isn’t resolved (Mason & Sullivan, 2011).  The Republicans want Democrats to reduce spending while the Democrats want to raise taxes on the ‘rich’. This is an old ideological battle between these two parties.  It has always been a way of scaring the American people. 

I have some solutions that might help the politicians out of this dilemma and allow them to avoid the downgrade.  These solutions are not new, but they will require politicians on both sides to actually lead the country instead of playing games with its future. It will also require Americans to exercise their rights and demand these changes of their politicians.  Leadership requires sacrifice.  Leadership that tries to avoid sacrifice is just self-serving.  I propose that the government cut spend and raise taxes. 

Raise taxes

I’ve read and heard over and over that the majority of the countries wealth resides in the nations top 20%.  This is Pareto’s 80/20 principle. Depending on which source you look at (you can Google it for yourself) you’ll find that between 70-90% of America’s financial wealth resides with only 20% of the population. Raising taxes on the top 20% means that the other 80% – the hard working and unemployed middle class will be spared.  Call or email your elected representative and demand that they do this.  Exercise your democratic right and don’t let the minority be the only ones that make the rules.  

I would suspect that most politicians are fundamentally opposed to tax increases because if they raise taxes on the richest 20% most of them would be affected.  The base salary for a US representative is $147,000 a year.  This is just over $100,000 more than the median annual salary in the United States.  I suggest in this case that the majority should actually take a stand and demand that taxes be raised on the riches 20%.  

For those who are afraid that this might hurt the economy or be bad for jobs take a look around.  The economy is already in the tank and many of the wealthy individuals who pushed America to the brink of the Global Financial Crisis in 2008 have done well for themselves at the expense of the 80%.  Americans in general need to stop waiting for their government to get them out of this mess.  Average Americans need to call on that entrepreneurial spirit that settled a continent, tamed the West, and created a country that the world wanted to come to (not destroy), and initiate opportunities for themselves.  Why shouldn’t the average person look after the interests of their families?  The government is busy looking after their own? 

Cut spending

Politicians might not want to raise taxes because it will impact them personally.  But if they were to raise taxes at the same time they cut their salary to the national median, they wouldn’t have to worry about paying more taxes.  There are 432 members in the House and another 100 in the Senate.  American taxpayer would save roughly $53,000,000 a year if Congressional salaries were pegged to the national median income. By taxpayer I’m referring to the 80% who pay most of the taxes because the top 20% have found ways of avoiding it.  We could also look at their health care benefits, to make sure they’re getting what the average American has access to.  If your company does well in the finance sector you get a big bonus. If our Congressional leaders got a pay raise when they enacted changes that helped to raise the median income they might actually get something done. If pay for performance works in industry – why not for our government officials?   

There’s more money to be saved in the lobbying industry too.  The health care lobby alone last year spent $123 million lobbying the government over Obama’s health care reform.  That’s $123 million of your insurance premiums that didn’t go to providing you with better health-care, it went to trying to make sure that that the health care companies were able to make more money from you. In banking, there are three lobbyists for every member of Congress – that’s 1,600 lobbyists paid by your bank fees and interest on your credit card and mortgage.  They’re lobbying Congress for ways to get more money out of you.  So let’s get more money out of them by lobbying Congress to pursue banking reform that will actually help create wealth for America – not destroy it. When was the last time you spent any money to lobby your Representatives about the things that matter to you? Invest some time in making a phone call or sending them an email this week.  Send them your suggestions about how to save some money. 

I’m sure there are more things that we could think of but I’m going to stop here.  Like I said, none of this is new.  These steps alone won’t keep America from defaulting on its national credit card, but it would save a few hundred million dollars, and that’s got to be worth something. 

A vision from the past

I found an old leadership assignment the other day.  It was part of my undergraduate leadership class at Penn State.  This vision "statement" (actually, it's more like a book) is twelve-years old!  I've done some of these things and I'm still working on others.  A 22-year old version of myself wrote:

As a leader in my home, workplace, community and world, I will strive to make a difference in everything I do. By working with people who are close to me, I will provide them with any resources that will help them succeed. By helping others reach their full potential, I will feel a sense of accomplishment in helping others realize their dreams. As a leader, I will be inspiring. I will take on the impossible, and make it possible. Doing the impossible is what motivates me to be better than I was the day before. I will be the kind of leader who looks at people and sees their full potential, and capacity, not their limitations and weaknesses.

In becoming this leader, I will continue to strengthen the abilities that I currently posses, such as my communication skills, my ability to get along with just about everybody, learning from my mistakes and turning them into opportunities and wisdom. Other abilities that will help me along the way are my vision for the future, what I see and what I feel I am capable of doing. I have used my listening skills to build a rapport between my coworkers and peers. By being willing to listen, and listen intently, people begin to trust you because you care. People always seem to admire and respect people who make them feel good about themselves. The world is bent on destroying and tearing each other down for personal gain. When someone is given a compliment, or told that they do something well, it works to build them up. Unfortunately this is not done often. By using these abilities, I will attempt to achieve these things. 

I will develop a network of family, friends, and associates that I will be able to utilize as I grow in my leadership style. Developing these relationships will take time and I will make every meeting, chance or otherwise, to establish some kind of communication or alliance. 

As a leader of the future, I will not forget where I came from, or the people who helped me achieve that success. Remembering those who have helped me is very important. They believed in me when no one else did, and I will be there to do the same for them. As I grow in my leadership roles, I will make this a focus point in my relationships.

Finally, through the observations of my life and those around me, I will extrapolate all that I can out of life, making life an endless pursuit of knowledge. I will always look to what I have learned for guidance in making wise decisions. I will never tire of chasing excellence, nor will I relent in the pursuit of happiness. In all these pursuits, I will above all else put others needs before my own, so that I don’t use or neglect anyone in the race that I have entered.