Arthur C. Brooks, the current president of AEI, is also an op-ed contributor to the New York Times. He writes wonderful, inspiring pieces that just don’t jive with his position as head of a powerful right-wing policy think tank. Here is my response to his latest op-ed.
I enjoyed reading Arthur C. Brooks New York Times op-ed, “Love People not Pleasure.” (July 19, 2014) I embrace the sentiment, “love people, use things.” I agree that those who use people not only fail to find happiness, but they also cause a great deal of unhappiness. My confusion comes from the fact that the author heads an institution that has actively, indeed very successfully, worked to prevent the exploited, oppressed and manipulated from accessing forms of protection. Allow me to suggest a few examples.
Entrepreneurs with first-hand knowledge of their businesses, commitment to the organizations they and their employees built and a desire to pursue long-term goals that lack short-term returns have been undermined by private equity, hedge fund and investment bank shenanigans. Authors Karen Ho and Eileen Appelbaum have done an outstanding job of documenting the liquidation of profitable businesses and the dispersion of the human and social capital that those businesses had accumulated in the name of “shareholder value.” It is abundantly clear that the interests of shareholders are of no account in these transactions, and that it is the deal makers, not the stockholders, who benefit. Why else would corporate and bank CEOs, with the backing of AEI, work so diligently to prevent shareholders from having the ability to nominate members of the board of directors? Why are they determined that all shareholder resolutions be nonbinding? Why do they actively block any movement, whether within the corporation or outside of it, to protect consumers and the environment when, in fact, shareholders are consumers who live on the planet? Ultimately, these financial titans are treating employees at all levels, consumers and Earthlings as objects to be manipulated for profit. Just as governments protect us from thieves and villains who would rob us and destroy our homes, we need protection from financial villains. Why does AEI oppose this?
Once upon a time a cashier or waitress could potentially enjoy real human connections with coworkers and customers. Now, these employees are given scripts to recite, and will be fired if they don’t get enough customers to sign-up for the latest ploy from the marketing department. Moreover, lean staffing practices ensure that no employee ever has a moment to prepare for the next day, get to know coworkers or simply take a moment to reflect. Companies from daycare agencies to retail stores claim the right to call employees in or send them home at the slightest change in customer level. Employees are treated as balance-sheet objects that have no commitments to their children, spouses or friends. How can employees be protected from being manipulated in these ways? First, Keynesian demand management, the elimination of tax incentives for outsourcing, and other evidence-based economic policy would reduce the unemployment rate so that people could quit jobs where they are mistreated without fear of financial ruin. Secondly, people could be given the opportunity to join unions without fear of reprisal. While this right exists in theory, it most definitely does not exist in practice, as documented by Ruth Milkman, among others. However, the AEI advocates an austerity policy that is guaranteed to keep unemployment high, and is rabidly anti-union.
I am not doubting Arthur Brooks’ sincerity. Many are skeptical of government based on the proliferation of crony capitalism including politicians doing the bidding of wealthy donors rather than citizens, corporate managers threatening to ruin local economies if locally elected officials don’t obey their commands, and the replacement of anti-trust enforcement with government bailouts for irresponsible oligarchs. However, the solution is not weaker government, it is stronger government: specifically, government that is strong enough to resist pressure from the moneyed interests that are ruining our economy and environment.