The well-known problem of the tyranny of the majority is present in both corporate/investor democracies and political democracies. What sets one apart from the other are the remedies available to the disgruntled minority. FULL ARTICLE by Briggs Armstrong
Source link: http://archive.mises.org/14218/is-obama-really-our-nations-ceo/
Is Obama Really “Our Nation’s CEO”?
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Excellent article. Although the “statist run media” would like to depict the so-called leader as a “CEO” of the nation, the best depiction is pathological narcissism. The self-love and lack of empathy is pathological, and easily allows the so-called leader to overcome any trauma associated with the his/her acts of coercion or violence. The interesting issue behind many of the rising tyrants is that they sometimes come from the so-called “underclass” populace. Obama as have others tout this “feature” as being able to “empathize” with his constituents. However, this touting is merely deception to elevate himself and further his cause to subjugate the constuents. When the “statist run media” further “advertise” leaders such as Obama as a “CEO,” it further adds to the leader’s growing narcissism. Author, Jerzy Kosinski, wrote the book “Being There” that describes this style of “leadership” as well as the cult-like following as a form of a “Being There Syndrome.” A leader appears from seemingly nowhere and beguiles the populace, but underneath there is only an empty suit only subjugation. http://www.amazon.com/Being-There-Jerzy-Kosinski/dp/0802136346
Very nicely stated. I’d add that even for many a public company, mischaracterized as a free market derivation, the entire adulation-enjoying CEO construct (ostensibly, the “leader” in these companies) is not such a far cry from your illustration.
Reminds me of the Kurt Vonnegut novel “Harrison Bergeron” – the President is picked by selecting a random name from the New Jersey phone directory.
If the President of the United states is a CEO, then it is the only CEO position that is, at the same time, an entry level position – no experience of any kind required. I doubt whether Barack Obama has what it takes to be the CEO of a lemonade stand.
I’d like to call out the Warren Buffet reference. I doubt he would be anywhere close to as successful as he is today if he wasn’t able to, at his beck and call, get his investments bailed out or given government granted monopoly privelege. This is the kind of economic voter we don’t need, one that gets more votes becuase he is deft at getting other peoples money through fraud.
Totally agree. Buffet is phony as hell. He’s an insider, through and through. He poses as a shrewd and frugal businessman. His partner (Charlie Munger) is even worse.
@J. Murray,
I agree with you about Warren Buffet. Once these clowns make the money then they feel they are the saviors of society. Look at all the Hollywood actors who make a little money and then they turn into the “truth reporters” for all the little people.
Warren Buffet is similar to the politician that stays in office to long. Most are crooks from day one but the longer they stay in office the more elitist they become and they convince themselves that they are called from a higher order. It is always funny when they get into trouble. Currently Charles Rangel comes to mind. In his own mind he did nothing wrong and how dare us stupid little people cause him some discomfort.
Re: Buffet. The man used to be of sound mind, but that has changed significantly in the past couple decades. Nowadays, he’s just embarrassing. Today, he has little respect for property rights unless it involves his property, see his investment in a bailout beneficiary, Goldman Sachs. It’s a shame, Buffet and his value investing system seems like one of the best ways to create wealth. That Buffet has turned his back on how capital and human well being is created and grown is both illogical and disheartening.
Re: CEO’s and the office of president of the US. I wish there was a corporate board and I was chairman, so I could have the opportunity to fire presidents, be they Bush, Obama, or whoever. CEO of the nation? Yeah, right. If the US was a company with traded shares, I would be shorting it like crazy.
While I agree with you and J. above, regarding Buffett, we would be considered kooks when trying to explain this to the talking heads on CNBC.
Additionally, the corporate board in most enterprises is a joke. It’s a club comprised of the very CEO being monitored, the very CEO who is typically the chairman(!) surrounded by a number of other golfing pals and business-networking colleagues.
The corporate board for Bush or Obama would be comprised of Cheney and Rahm and Nancy and George Sr. and Arnold…. Well, you get the picture.
If he used to, it’s been a LONG time. Look up his wholley owned railroad. He managed to get the state of Washington to foot the bill for the entire rail system’s upgrades and even got a nice monopoly over transit in the area as well.
The actual investments in companies that Buffet has little to no control over are actually less than stellar and can be matched almost as well by just throwing darts at the stock price page in the WSJ. His main source of success is through investments with significant government patronage. His “value system” isn’t worth a damn when you really dig into it.
J. Cortez…Dreams of dictatorship??
No, dreams of privatization and an open market.
Thanks for removing one of my “essay ideas” from my list. I’ve long wanted to compare the political system to the corporate system, to do exactly what you have: shown that individual investors are far more protected, more powerful, and see better returns than do individual political voters.
You’ve, in addition to providing a great article, lit a fire under my butt to write up and publish some of the remaining essay ideas I’ve stored, lest they all get scooped. Thank you.
Nice treatment by analogy, but it is as important to oberve where it breaks down as well as where it holds.
Your analogy about the relationship between shareholders and voters is weak.
“In a political democracy, we are told we must always abide by the will of the majority. Citizens who hold desires or opinions that run contrary to the desires or opinions of the majority have but two options. They can somehow convince the majority that their desires are worthy and their opinions are correct, or they can leave the country. Neither option offers much hope for those unfortunate enough to find themselves in the minority.”
You then go on to explain that shareholders can easily sell their shares, unlike voters. However you are overlooking some very important distinctions.
First, the counterweight to the “tyranny of the majority” is the Constitution, and the rights of the individual that cannot be abridged by the majority. Therefore, it is the right to the process of education and persuasion (i.e. free speech) that presents an option to simply packing up and leaving, which you describe as the only alternative open to the minority on any given issue, including the choice for President or any other public Office.
Second, you are completely ignoring the consumer as the real sovereign in the economic sense. The consumer is the corollary to the voter, not the shareholder. I think you mean that the shareholder in a corporation is analogous to those party supporters who “invested” the $1.7B in the presidential campaign. They did so because they valued the “product” that was being offered, for whatever reasons. Those who’s candidate lost did not profit from their investment.
A CEO who produces a product that is not purchased by consumers, will either be replaced, if the BOD is wise, or will bankrupt the corporation, in which case all current shareholders will lose their investment; those who “get out early” retain more of their capital, thus providing the crucial “price calculation” to the markets who trade in securities.
By analogy, and in actual fact, the voters are sovereign in the political sense. There simply is no getting around the fact that voters have “purchased” their politicians. The political process, as it currently exists, requires that, using your numbers, $1.7B be invested to support the means of production required to produce one President. As with corporations, the political investors have pooled their resources to fund the means of production, i.e. the political process.
The very valid point you do make is that the President is not the people’s CEO in the sense that government has no valid role (or very, very limited by today’s standards) in business, because they are not subject to the price/profit calculus in a direct sense, and there cannot efficiently manage the means of production.
Sorry, BA,
I see on proofreading that you grant that one can “convince the majority” as the other side of the “pack up and leave” alternative. I would only add that voter preferences, like consumer preferences, are not simple and orderly, and can shift quickly and unexpectedly, given an attractive alternative.
Sir
At the risk of appearing to hold extreme views, and quite wihout desire to be associated with any conspiratorial thinking, i would suggest that there is more than mere simile in positing POTUS (Obama or any other) as CEO
best regards
Paul
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