Frédéric Pierucciis a senior executive at Alstom, a gigantic French energy company. Thanks to a US extraterritorial law (FCPA Foreign Corrupt Practices Act) which allows the US government to prosecute any foreign firm targeted for corruption, he was arbitrarily arrested in 2013 as he got off the plane in New York.
Pierucci had not received any money from these operations, but he was aware that Alstom was targeted for embezzlement and that the company used “intermediaries” to secure contracts. He was incarcerated for months, and Alstom finally abandoned him, believing that the Americans would be satisfied with the imprisonment of this high-ranking executive. Pierucci must now try to extricate himself from the quagmire into which he has been plunged.
A page of the graphic novel “Le piège américain”.
Even if he is not directly implicated in the bribes, the American justice system wants to pressure Pierucci into revealing details that would incriminate Alstom’s management, including CEO Patrick Kron. Pierucci’s harsh judicial treatment is also intended to intimidate the firm’s other top executives, showing them what awaits them if they do not cooperate in rectifying past mistakes.
The primary aim seemed to correct unfair schemes that were damaging American companies and, by the same token, to obtain very substantial monetary compensation. The operation was a success: the effects of Pierucci’s arbitrary arrest paved the way within a few years for the sale of a strategic Alstom subsidiary to General Electric, its main competitor.
Back cover of the graphic novel “Le piège américain”.
The maneuvers also allow to obtain information that would otherwise remain confidential. This U.S. extraterritorial law works well and is used to attack numerous corporations around the world, including the German international group Siemens. Each time, the offender is obliged to pay substantial fines and must submit internal documents considered confidential or even secret to the prosecutor.
It’s hard to know who exactly will have access to these documents. Is it possible that agents (we won’t call them “spies” for the sake of politeness) are passing on trade-secret information to people working outside the U.S. Justice Department? Such actions would enable American companies to improve their competitiveness at little cost. But these are questions that the executives of the targeted companies are asking themselves.
Be that as it may, not everything in this story is squeaky clean. Author Matthieu Aron writes: “In autumn 2018, after Frédéric [Pierucci] was finally released, we finished our book. But again, it was not without difficulty. The day after we sent our manuscript to our publisher, my home was ‘visited’ and my computer disappeared. Simple burglars, spooks, or action by a foreign service? We’ll probably never know.”
The graphic novel “Le piège américain”, prix littéraire nouveaux droits de l’homme 2019.
My view on the subject.
China is watching and learning.
The effectiveness of this American extraterritorial law has not escaped the attention of China, which is planning to devise a similar law that would allow it to lay its hands on otherwise inaccessible information and archives.
Faced with these two behemoths, the United States and China, Europe has fallen behind, and it too will have to create its own law enabling it to extend its judicial power outside the continent. For no one is fooled: bribes to obtain contracts involve multiple countries. Prosecutions under extraterritorial legislation give access not only to large sums of money, but also to documents containing important data and possibly industrial secrets.
Another book on the graphic novel “Le piège américain”.
The Alstom experience will at least have had the effect of better preparing France for the moment when, a little later, the giant Airbuswas targeted for malfeasance by the same American law. Airbus manufactures not only airplanes, but also many strategic military products protected by secrecy. This time, the widespread collection of the company’s confidential information was refused, without a French citizen being named as intermediary and the documents handed over to the Americans being reviewed to ensure that they did not contain military secrets or other information not directly related to the corruption charges.
Today, Airbus is a great success, selling more aircraft each month than Boeing, which is experiencing difficulties with the way it builds its aircraft. And we have every right to believe that senior management at Airbus has improved its business practices.
The graphic novel “Un tournage en enfer – Au coeur d’Apocalypse Now”.
The graphic novel“Un tournage en enfer: au cœur d’Apocalypse Now” takes us right to the heart of the creation of Francis Ford Coppola‘s famous film, brought to the screen in 1979. As the director points out, [my translation] “[…] we were in the jungle. There were too many of us. We had access to too much money and too much material, and little by little, we all went crazy…”.
It didn’t start well. Right from the start, the director was unable to convince well-known actors to get involved in his film. In turn, actors such as Jack Nicholson, Al Pacino, Robert Redford and James Caan refused to join the adventure. Coppola continues his research and interviews.
As readers, we go behind the scenes of the production and hear from those close to the filmmaker. Filming begins in the jungle of the Philippines, even though Coppola has no idea on how the film will end. This would haunt him throughout the production, causing him sleepless nights when he was already quite exhausted.
A page from the graphic novel “Tournage en enfer – Apocalypse Now”.
Cost overruns followed, and the pressure on the director from financial backers increased. He was asked to complete his film as quickly as possible, which he proved unable to do. Coppola came to guarantee the required funds by pledging to pay off the debt himself if box-office receipts failed to reach $40 million.
In addition, it was taken for granted that the U.S. government would provide the helicopter gunships required for the film’s action. But in the aftermath of the Vietnam War, the interest of American politicians in such requests waned. The director had to turn to the then President of the Philippines, Ferdinand Marcos, to obtain helicopters and personnel, in return for certain fees and compensation. But these aircraft sometimes left the scene on Marcos’s orders to go hunting for the regime’s enemies. Coppola was falling behind again…
A page from the graphic novel “Tournage en enfer – Apocalypse Now”.
They thought that Harvey Keitelwould be the ideal actor to play Robert Duvall. Many sequences later, the obvious becomes clear: the man just didn’t cut it for a number of reasons. On the verge of disaster, they urgently contacted Martin Sheen and beg him to replace Keitel. Multiple scenes had to be reshot with the new actor, and the delays and associated costs continued to mount.
All sorts of other pitfalls awaited the director and his crew throughout the shoot, including the language barrier with the Filipinos and a storm that destroyed the set. The widespread use of drugs and alcohol by staff and helicopter pilots didn’t help matters either.
The mosquitoes, the heat and Coppola’s constant demands took their toll on the actors. Martin Sheen fell seriously ill, and his brother had to be used for some of the secondary scenes. Rather than use only actors to simulate deaths, a staff member went to the morgue and returned with a corpse. This prompted the arrival of the police force, and the problem was solved with generous sums of money.
There were many other factors that delayed the end of the shoot and increased costs. Marlon Brando’s demands were a case in point. They managed to get him back on set for an extra day, provided that he received $70,000 more than planned.
Shooting finally ended in 1977. The team chartered a private plane to fly 381 kilometers of original film to the United States. Editing the film proved to be an ordeal. There was too much material to analyze. In 2001, Coppola presented a modified version of his original 1979 production. In 2019, he finally delivered a final 182-minute version, Apocalype Now “Final cut” , more than forty years after the initial release.
Earnings met the director’s expectations, and he ultimately won his bet. In all, the film generated $140 million from a total budget of $30 million.
With so much published in a year, a reader have to take risks here and there when comes the time to buy a book. At the Salon du livre de Québec 2023, I tried my luck with a couple of books I hadn’t heard of. The one that surprised me the most was a little novel by the name of Von Westmount.
The cover design was eye-catching. When I saw the plush house and the word Westmount, I knew that a detour to the west end of Montreal would be in order. For non-Quebecers, Westmount is known as a more affluent area, where the majority of residents use the English language as a means of communication, in a predominantly French-speaking Quebec.
During the year we follow Aline, the heroine of Jules Clara, she toils away at odd jobs, living her life as best she can, until chance allows her to try her luck with a new job.
She eventually finds herself in the English-speaking milieu of Montreal’s west end, and through her, we witness the lifestyle and conversations that take place in a private residence in the town of Westmount. Will the heroine be able to adapt quickly to her new duties and make choices in keeping with her interests and values? How will her vision of Montreal evolve, literally and figuratively?
I loved this little book right to the end. It’s worth noting that some people had trouble understanding the conclusion, a conclusion that certainly seemed to me a logical choice to include in a story of this kind.
Some people also objected to the use of the English language in some sections of the novel. As far as I’m concerned, I think the English language had its rightful place and played an important role in the unfolding of the story. But you need to know English well, not just stammer a few words.
In short, you’ll have a great time with Von Westmount if you enjoy a bilingual book and are interested in the special dynamics between Montreal’s west and east ends.
The 2016 televised political debates on CNN between Hillary Clinton and Donald Trump put forward the topic of racism in the United States. Chicago was specifically mentioned as it detains the national record for violent deaths. The book “Histoire de Chicago” allows, among other subjects, to better understand what feeds social inequalities between Blacks and Whites since the creation of Chicago.
The reader understands that it is not the cultural deficiencies that are at the base of the problems but an institutionalized racism and the economic choices of the different municipal administrations.
The city grew set against a background in which the color of a person’s skin determined the type of work that he or she was allowed to occupy. Eventually, even urban planning was designed so that Blacks and Whites would be separated: the artificial walls created by the construction of the Dan Ryan Expressway or the Dearborn Park are in themselves good examples.
In 2016, the polls show a strong support for the Unites States republican candidateDonald Trump. Trump knows Chicago very well and he had his “Trump Tower” built there.
The republican candidate takes over in his political platform some of the elements that have made the popularity and success of the Daley family who ruled over Chicago for decades: the exploitation of fear between ethnical groups to build and maintain a political power, the idea of building a wall and the use of torture as a simplistic solution to complex problems.
This populism attracts a certain class of American electors who are easily scared by the differences between people and cultures.
The book “Histoire de Chicago” is very much a reflection of what is happening today and the authors do no fear to raise delicate political subjects.
Cover of the book “Histoire de Chicago” by Andrew Diamond and Pap Ndiaye
Chicago
Chicago became a territory of the United States with the Treaty of Paris in 1783. Subsequently, natives progressively lost their lands through different manoeuvers, among them the signature of contracts while they were drunk. Around 1830, when the Indians were definitely gone, the speculative fever started.
Railways
Starting around 1860, Chicago organized itself to become the main hub for the most important railway companies of the United States. The city grew very quickly. Passengers, livestock, cereals and other merchandise had to transit through Chicago. The city depended on the train to grow, and the railway companies depended on Chicago to be profitable.
The rapid growth of Chicago’s population was essentially the driver of migration from Europe (Irish, Germans, Polishand Italians). The evolving and often violent relationships between Chicago’s ethnic groups is well explained in the book.
Retail stores
Just before 1900, the Chicago population witnessed the creation of the first retail stores in which a customer could order through a catalogue and use credit. New categories of employees and managers were added to the working population and helped shape the middle class.
Black immigration in Chicago
Around 1910, there was an important increase in the Black immigration coming from southern United States. Chicago was an abolitionist city. This does not mean that it was favoring racial equality but that it was against slavery. In fact, Chicago progressively became the most segregated city in the United States.
Blacks were massively arriving from southern United States, not only for economic reasons but also to get away from the slavery, racial violence and segregation that was the norm in multiple states. Although far from ideal, the situation in Chicago was better than in the south of the country.
The First World War considerably reduced the number of immigrants coming from Europe. This created a serious problem for a city that was benefiting from numerous military contracts and needed a very high number of employees in its manufacturing companies. This also favored the “great migration”, which is to say “the spectacular intensification of the Afro-American migration towards the North-East and Middle West major urban centers […]” (p.143)
Chicago’s slaughterhouses
Chicago was renowned for the very high number of its slaughterhouses, in particular its pork slaughterhouses. The smell and pollution created by this activity was terrible. Chemical laboratories allowed for the commercial use of all parts of an animal. The writer Georges Duhamel wrote in his book that in Chicago “nothing leaves the slaughterhouse but the squeal” (p.63).
Black workers did not have the right to work in the Chicago steel industry and had to limit themselves to slaughterhouses where they were hired as manual workers. They had no access to qualified jobs.
The Second World War
During the Second World War, Chicago was competing with other major American cities to obtain huge military contracts. The city did not manage its efforts to show it supported the American government. Chicago eventually received billions of dollars for the construction of tanks, tractors, torpedoes, bombs and aircrafts (among them the B-29 bomber aircraft).
To compensate for the lack of manpower, since a lot of men enrolled as volunteers and had gone to war, women massively entered the workforce. Employers saw an opportunity to maximize their profits by reducing the salaries of working women, which corresponded only to 65% of the men’s salary for the same work. This represents the way women were thanked for their effort and collaboration.
Transformation of the Chicago economy
A United Airlines Boeing B747 is taxiing over the expressway at the Chicago O’Hare international airport (on aviation postcard)
Chicago experienced a profound transformation during the ‘70 s. The closure of the slaughterhouses in 1971, and the diminishing demand for steel mills products signalled the end of the industrial era. It was followed by an opening on the international and the development of a new economy based on specialized services like finance, real estate, insurance, marketing, publicity and legal services.
The Chicago mayor, Richard M. Daley, fostered the establishment of a new socio-professional class of creators in the city (design, arts, music, etc.) by considering it like another “ethnic group” who needed privileged space to express itself.
The development of housing estates and complexes during the ‘60s and ‘70 s
During the ‘60s and ‘70s, the Chicago landscape was profoundly modified. Huge housing estates and complexes were built (Magnificent Mile, Sandburgh Village, Marina City, Lake Point Tower, Dearborn Park) where the White population lived, in the north part of the city. The Chicago Tribune said of Dearborn Park that it was “a fortress reserved for Whites and aimed at protecting the financial district against the Blacks”.
The Daley administration had to fight against urban sprawling and consequently favored the construction of skyscrapers to maintain the presence of Whites in the central area while receiving more property taxes. Two stock exchange institutions were created, the Chicago Board of Trade (CBOT) and the Chicago Mercantile Exchange (CME). The creation of those two institutions as well as of the complexes did not do anything to change the dynamic between the Whites and the Blacks.
The racial segregation
Although Martin Luther King was a dominant figure in the fight for the civil rights of the Blacks in the United States, the authors underline that the black population of Chicago had not waited for a leader to promote their rights as they had already started to mobilize themselves years before.
Martin Luther King’s ideas on the integration of Blacks did not receive the support of everyone in the black community, especially the Chicago black politicians who benefited from a special treatment from the Daley machine, which favored the status quo.
Chicago’s mayor Richard M. Daley experienced much success. To stay in power, the Daley Machine “rested squarely on the continued separation and competition between communities”. (p.322-323) The separation between Blacks and Whites was planned and maintained. There was and there are still two Chicagos.
A highway, the Dan Ryan Expressway, was even positioned in such a way that it would create an artificial wall between the Daley’ s district, Bridgeport and the Black Belt: “This was the most massive obstacle that the city could build, other than a wall, to separate the white South Side from the Black Belt” (p.259).
The Daley Machine
We cannot talk about Chicago without underlining the importance of the Daley family and its political machine: “Through an authoritarian control of the “machine”, Richard J. Daley and his son Richard M. Daley, each one in his own style, dominated the Chicago political scene for forty-three years, between 1955 and 2011.
During that period which saw the development and the subsequent decline of modern civil rights, the ghettoization of huge parts of the West Side and South Side, a massive immigration wave from Latin America and the transformation of the city from an industrial giant to a world-class global services economy center, Chicago barely knew one legitimate municipal election or one real debate at the municipal council” (p.16)
There was rampant corruption and secret budgets in the Daley administration. In total opaqueness, the City Hall diverted the funds reserved to disadvantaged neighbourhood and distributed it to the privileged ones.
“[…] While important businessmen, Mafiosi and others who had links with the Daley machine were getting richer, Blacks and Latinos in need were shot in the street or tortured in the precinct’s’ back rooms” (p.394)
Law firms and entrepreneurs gave huge sums of money in exchange for important contracts. The Daley Machine was never short of money.
Beechcraft N35 Bonanza N545T in flight during the years when the Daley family was reigning over Chicago (on aviation postcard)
Racial tensions and repression policies under Mayor Daley
“By the 1930s, Chicago had become, according to the historian Frank Donner “the national capital for police repression” (p.321)
The black migration that took place during the 1940s and 1950s scared the Chicago population that felt besieged. This increased racial tensions that were already present and maintained. It was easier to accept more policemen than social housing.
The muscled tactics of Mayor Daley were the most obvious during the 1968 Democrat Convention, when policemen and 7000 National Guard soldiers “went down hard on the [crowd of 10,000 young protesters] in an explosion of mindless violence” (p.315)
The exploitation of racial fears was quite successful. Daley was defending his policies by saying that “ most people are more worried about a black uproar than of a mayor that orders the use of lethal force to put an end to it and they recognized themselves far less in pacific protesters than in policemen that hit them with truncheons” (p.319).
Media propaganda and the Daley Machine’s police were efficient in convincing the Blacks to respect the established order. Torture was common in the zone 2’s precinct, in the South Side, between 1972 and 1991.
The expected arrival of a new black mayor, Harold Washington, during the 1980’s, increased the fear that everything would change in Chicago. Everything was done to undermine Washington’s candidacy, but he eventually won helped by the black vote.
There were several left-wing political movements which all had their own objectives and were unable to unite under the same progressist banner. This provided the necessary margin of manoeuver to the Daley Machine, who worked in cooperation with the federal authorities to organize the state repression.
Back cover of the book “Histoire de Chicago”
Social problems in disadvantaged neighbourhoods
During the 1995 heat wave, 739 persons died in Chicago. The social precarity helped increase the number of deaths, but it was easier to determine that the victims were responsible of their fate.
The Blacks and Latinos believed, and still do, that the problems related to their school system and neighbourhoods come from some cultural deficiencies, but in trying to understand the real nature of their problems, they overlook the ongoing racism and economic choices of the different city administrations since the creation of the city.
“The 1980 census showed that ten out of sixteen of the poorest neighbourhoods in United States were in Chicago, in the Black Belt, of course”(p.334)
In 2002, Chicago was the American murder capital, with 647 victims. In 2008-2009, the city held the record of students killed in public schools which were gang related.
Today, there are two Chicagos
Today, Chicago benefits from well-defined ethnic neighbourhoods that attract tourists in search of diversity. However, the sustained racial segregation policies have isolated the black neighbourhoods and in 2016 Chicago still has the sad reputation of being the murder capital of the United States.
“The Chicago situation looks more and more like a science-fiction scenario. While part of the city has an economic capacity that sets it among the five first in the world, the other part is frozen in an austerity situation that could very well become irreversible” (p.443)
“The Psychopath Test” is a very interesting book for those who want to demystify what lies behind the term “psychopath” or “sociopath”. The author also writes about what leads to a medical misdiagnosis of a mental illness in a person. Despite the fact that writing on psychopaths is a serious task, the text is written with a bit of humor and derision, the author often putting forward his own insecurities and neurosis.
Although the book’s main theme is about psychopathy, the spectrum of subjects is quite large and all the stories are interesting, if not surprising. Numerous cases that have made the news throughout the years are brought back to memory, but with new details that allow a deeper understanding.
Jon Ronson’s “The Psychopath Test” Book Cover
Misdiagnosis
It is quite surprising to realize how easy it is to make mistakes in the diagnosis of mental illnesses. There are also several mental illnesses that can be attributed to individuals who do not have a behavior that is considered as strictly “normal” in our society. But since what is standard and acceptable vary throughout the years and societies, it seems obvious that a mental illness can be attributed to a person who is not really sick.
It is quite troubling to realize that mental illnesses will be attributed to children while the particular symptoms of those illnesses are known to become apparent only when a person becomes an adolescent or adult.
Faking madness to avoid prison time is not particularly wise…
The author shows how different personal interpretations by all kinds of “specialists” on the multiple criteria used to diagnose several mental illnesses sometimes result in a person being sent wrongly to a mental institution where she will be heavily medicated for a very long period.
A particularly interesting story is that of a man who faked madness after having committed a violent crime in order to avoid being sent to jail, thinking that he would instead be sent to a psychiatric institution where life is relatively comfortable. He was sent, like he wanted, to a psychiatric institution, but not the one he expected. He spent more than twelve years at Broadmoor, in England, an institution where serial killers and pedophiles are imprisoned.
In his case, the Robert Hare’s list was used. This is a list which is used to determine if a person is a psychopath. His luck turned when the “specialists” considered that he met most of the criteria on the list. He then had to fight for years to prove that he was victim of a wrong interpretation…
Some particularly weird psychotherapy sessions
The author mentions some of the weird experiments that went on to heal patients, experiments that were destined to fail before they even started. For example, the reader learns of psychotherapies where the patients were nude and under LSD influence. Another experiment involved criminals who had to heal each other: they could not stay away and distant from each other as they were taped together, like this serial killer of three children in Toronto who was taped to a car thief…
The negative effects of psychopaths that are highly placed in society
The author tries to verify, using the Robert Hare’s list, if it is true that psychopaths are ruling the world. He admits he partially failed. This seems reasonable since there is about 1% of the population that is composed of psychopaths, and that percentage grows to 3% with politicians and corporate leaders. So, from 3% to 100%, it seems obvious that this was a tall order to start with.
The author quotes one of his sources, Essi Viding, who studies psychopaths: “Psychopaths don’t change. The best you can hope for is that they’ll eventually get too old and lazy to be bothered to offend. And they can seem impressive. Charismatic. People are dazzled. So, yeah, the real trouble starts when one makes it big in mainstream society” (p.60)
Active psychopaths on the stock market can be as dangerous as psychopaths that are serial killers. As Robert Hare writes it: “Serial killers ruin families. Corporate and political and religious psychopaths ruin economies. They ruin societies” (p.112)
“The Psychopath Test” book back cover by author Jon Ronson
The twenty-point Hare PCL-R Checklist to establish if somebody is a psychopath
Here is a summary of the twenty points included in the Robert Hare’s Checklist. If a person scores 30 or more out of 40, she is considered as a psychopath:
1. Glibness/superficial charm
2. Grandiose sense of self-worth
3. Need for stimulation/proneness to boredom
4. Pathological lying
5. Conning/manipulative
6. Lack of remorse or guilt
7. Shallow affect
8. Callous/lack of empathy
9. Parasitic lifestyle
10. Poor behavioral controls
11. Promiscuous sexual behavior
12. Early behavior problems
13. Lack of realistic long-term goals
14. Impulsivity
15. Irresponsibility
16. Failure to accept responsibility for own actions
17. Many short-term marital relationships
18. Juvenile delinquency
19. Revocation of conditional release
20. Criminal versatility
The twenty-point Hare PCL-R Checklist applied to a candidate of the Republican Party, Donald Trump, during the 2016 American Presidential elections
At the time I am reading “The Psychopath Test”, American television is reporting on a daily basis the whereabouts of the American candidates competing to lead the Republican Party for the 2016American Presidential elections. Every day, I am hearing reporters and political analysts complain about the behavior (point 10) and irresponsible speeches (point 15) of one of the candidate, Donald Trump.
On several occasions, what that candidate has said has been found to be inexact when verified (point 4). I regularly notice his impulsivity when faced with unforeseen events or contradictions (point 14).
Moreover, he refuses to accept responsibility for his actions or words (point 16), does not seem to regret anything which makes any excuses pretty hard to formulate clearly (point 6). According to several well-known and respected political analysts, his long-term goals as to what he would realize if he was elected President of the United States are not realistic (point 13).
Similarly, his lack of empathy towards millions of American citizens is regularly making the news (point 8). He sometimes refers to himself at the third person, continually putting forward his own self-worth (point 2). I did not spend more time researching other connections with the remaining points in the checklist; I leave it to you. CNN nonetheless took the time, in September 2016, to mention some details on the personal life of Mr Trump and if I believe what is said, then points 11 and 17 would also apply here. Having no experience in psychoanalysis, I used the Robert Hare checklist for fun only and no serious conclusion should be drawn here.
The psychopath Emmanuel (Toto) Constant and Haiti
Talking of American politics, the reader discovers Emmanuel (Toto) Constant and the consequences of his actions for Haiti. He is a mass murderer, psychopath, who was working for the CIA in Haiti. He was released from jail when he implied that he would reveal secrets on the American foreign policy in Haiti. Emmanuel Constant “profoundly altered Haitian society for three years, set it spiraling frantically in the wrong direction, destroying the lives of thousands, tainting hundreds of thousands more.” (p.129)
Reality TV and selected mental illnesses
The author also develops the reality TV theme, where guests face each other and fight aggressively, verbally or even physically. He interviewed a person who was in charge of finding the appropriate guests for each program. He learned that the candidates were chosen according to the type of drugs they were taking to stabilize their mental illness. This is not done without making some mistakes and he learned that a member of a family killed herself because she felt guilty about the way she behaved in preparation for the TV program.
Are you a psychopath?
Are you a psychopath? “If you’re beginning to feel worried that you may be a psychopath, if you recognize some of those traits in yourself, if you’re feeling a creeping anxiety about it, that means you are not one” (p.114). The psychopath has no emotions about his own situation: he is not sad about it, does not question himself as to his situation no more than is he happy to be classified as a psychopath.
The financial interests of huge pharmaceutical companies
Obviously, huge financial interests are at play when it comes to prescribing medication to millions of patients susceptible to be diagnosed with a specific mental illness: the role and pressure exerted by pharmaceutical companies are rightly raised in the book:” There are obviously a lot of very ill people out there. But there are also people in the middle, getting overlabeled, becoming more than a big splurge of madness in the minds of the people who benefit from it” (p.267)
Some personal comments
On few occasions, the author’s reasoning surprised me. For example, he founds abnormal to take the time to write articles on a blog since there is no pay to be expected. Should I assume that every act of creativity in society has to be done in exchange for money, otherwise it makes no sense? In another chapter where there is a mention of the 9/11 attacks, he writes: “9/11 obviously wasn’t an inside job”. The word “obviously” replaces what should be an appropriate research on the subject since half of the American population still has unanswered questions about those attacks.
Conclusion
As a conclusion, here is quote that, I think, best resumes the author’s thoughts: “There is no evidence that we’ve been placed on this planet to be especially happy or especially normal. And in fact our unhappiness and our strangeness, our anxieties and compulsions, those least fashionable aspects of our personalities, are quite often what lead us to do rather interesting things” (p.271).
The transformation of Business, Democracy and Everyday Life
Robert B. Reich “Supercapitalism”
Robert B. Reich is a professor at the Berkeley University in California. He also worked for the American government under President Bill Clinton as secretary of labour.
Here is a quote from the New York Times on their review of “Supercapitalism”: “Reich documents in lurid detail the explosive growth of corporate lobbying expenditures and campaign contributions since the 1970s. . . . Supercapitalism is a grand debunking of the conventional wisdom in the style of John Kenneth Galbraith”.
Ferocious competition on an international scale
During the first few decades that followed the Second World War, before the globalization of the economy, the author shows that in United States, profits derived from mass production were based on rules that insured stability. There was a better redistribution of a company’s profits between workers, shareholders and managers. The CEO even had the possibility to take decisions that would benefit to both the society and his company. The middle class was in better shape.
At the same time as capitalism progressively gained terrain around the planet, increasing inequalities of incomes and wealth followed. The rise of supercapitalism, around the 70s, is due to the globalization of the economy and, consequently, to an increase of the international competition. Consumers and investors have been benefiting a lot from supercapitalism, but the citizen who feels a social responsibility and looks for the common good gradually lost ground.
The “consumer/investor” versus the “citizen”
The author writes that each person is of two minds: a “consumer and investor” but also a “citizen”. The consumer wants to acquire quality goods at low price and the investor wishes that the money invested towards his retirement provides a great rate of return. If the consumer finds a better price somewhere else, and if the investor considers that the return on investment (ROI) is not adequate, both will look towards the competition.
Meanwhile, the “citizen” in us wishes only good things for the society and the planet: companies must respect the environment; workers must have decent working conditions, etc. The paradox is that while we want the best, we encourage the worst.
Wishing the best while encouraging the worst
The fact that a superstore does not offer good working conditions to his employees irritates the “citizen” in us. However, the superstore’s lower operating costs allow us to save money. If prices go up, we will buy somewhere else.
As investors, we possess, through our mutual funds, numerous financially performing companies. In many countries around the world, profits redistributed to shareholders are the result of minimal working conditions given to employees and abuse on the environment. The investor regularly compares the rate of return of several mutual funds and other investments and he will not hesitate to sell his shares if profits are insufficient.
Increased pressure on the company’s CEO
Globalization and increased competition are forcing managers to think only in terms of return on investment. The CEO is accountable to his dissatisfied shareholders and mutual fund managers who both can sell their shares of an underperforming company.
Consequently, the role of a CEO is not to spend for reasons that would please the “citizen”, but instead to maximize profits using all the legal means at his disposal. This way, he satisfies the consumer and investor. He knows that all his competitors do the same.
As citizens, our role is to forbid companies to establish the rules of the game. Those rules must be set by the government in order to preserve democracy and encourage social responsibility.
Companies are not against new rules that would apply globally to all competitors. What they want to avoid is that a specific company benefits more than another one in the new deal.
Winning or preserving a competitive advantage because of lobbyists
Considering the strong international competition between companies, it is easy to understand that massive amounts of money and other efforts deployed to gain a competitive advantage are in constant growth.
After having worked in Washington, the experienced politician is hired by big corporations as a lobbyist (3% in 1970, 30% in 2005). While the politician’s attention is focused on consumers and investors, the citizen’s voice wishing a greater social equality is not heard.
Supercapitalism thus modifies the way the democratic system operates.
Mutual benefits between politicians and lobbyists
Politicians use that competition to demand important amounts of money to finance their political campaign. In exchange, they support and help push the agenda of a specific company: “That’s how politicians keep their hold on power, and lobbyists keep their hold on money”.
Democracy is perverted by the actions of lobbyists and the attraction that money and other advantages has on politician’s decisions. The government is not managed from the inside but by external powerful economic interests.
Better regulations can improve democracy
The author writes that companies cannot take personal initiatives to correct the situation since it will undermine their position towards other competitors in a global market. “Supercapitalism does not permit acts of corporate virtue that erode the bottom line. No company can “voluntarily” take on extra cost that its competitors don’t also take on, which is why, under supercapitalism, regulations are the only means of getting companies to do things that hurt their bottom lines”. Regulations can only be imposed by political actions.
Learn to recognize the actions used to distract the population
It is necessary for citizens and Medias to recognize the half-truths and distortions that “confound efforts to prevent supercapitalism from overrunning democracy”. The author names a few:
The public blame that changes nothing: beware of politicians who publicly blame corporations for actions that respect the law but that the public despise. The corporation works for the consumer and investor, not for the citizen. A public blame is easy and makes the politician look good. The latter must instead work at improving the law and corporations will then be forced to respect the new parameters.
The corporation that pretends to act on behalf of the public interest: do not believe a corporation that says it works for the public good. It is not its role. It is possible that, in order to improve its image or to satisfy the consumer (and ultimately its shareholders), it does something that looks like it is good for the public. But, basically, there is no acknowledgment of the public good, only a desire to preserve or improve its competitive position.
Lobbyists who pretend to look for the public good: lobbyists and experts who pretend that their initiatives are in the public interest only detract attention from their real objectives that are to protect or advantage a specific corporation.
The private sector and the “voluntary” cooperation: beware of politicians who claim that the public can count on the voluntary cooperation of the private sector in order to protect the public good. It is not the private sector’s role and it will not spend any money unless all of its competitors do the same. Those are only words aimed at buying time and confuse the public. If the public good is so important, then a law must be voted.
Public relation campaigns aimed at one specific corporation: beware of public relation campaigns and pressure groups working to force a specific company to be more socially virtuous. Try to discover the real goals behind those efforts. If all this seems reasonable to you, then ask yourself if a new law or new regulations forcing all the competing corporations to modify their behaviour would better serve the public.
Conclusion
A final quote summarizes very well the author’s thoughts: “In general, corporate responsibilities to the public are better addressed in the democratic process than inside corporate boardrooms. Reformers should focus on laws or regulations they seek to change, and mobilize the public around changing them”.
