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The Importance of Labor and Labor Day

Friends of Padre Steve’s World,

Today is Labor Day and sadly many people don’t really understand its significance. For decades organized labor has been demonized by the descendants of people who died to secure decent working conditions, wages, and benefits for regular hard working people. The attacks on labor and workers have become much more pronounced under the Trump Administration than any prior administration since that of Herbert Hoover.

But most of the people lucky enough not to have to work on Labor Day really don’t know why it it matters, and whips in spite of those who despise labor and care not a whit about working people, who simply to use business terminology are simply human capital or resources. I actually despise those terms because they dehumanize people by turning them into impersonal economic units of measure.

So today I am digging into the vault to explore why Labor Day and what it represents matters to us now. This article is one that I have taken the time to edit and update.

Until tomorrow,

Peace,

Padre Steve+

Abraham Lincoln, who was perhaps our only President who was a real working man once said, “If any man tells you he loves America, yet hates labor, he is a liar. If any man tells you he trusts America, yet fears labor, he is a fool.” 

It seems that nothing about humanity ever changes, even so it is hard to believe that at one time American workers had no rights and I am not talking about African American slaves who as slaves didn’t even count as human beings. No I’m talking about the people Mel Brooks called in Blazing Saddles: “the white God fearing citizens of Rock Ridge” and for that matter every place and every race in America.

It was not until the mid-1800s in the United States and Europe that workers began to organize and protest for the right to decent wages and working conditions. But this came at a cost; the loss of jobs, homes, property, prison, deportation, deportation, and death.

There were many instances when this cost workers and labor organizers their lives. Employers, often backed by heavily armed private security contractors like the Pinkerton Agency, used deadly force to break up peaceful strikes. In the days of the Robber Barons, when business ran the government at almost every level, employers frequently called in local and state law enforcement, as well as the National Guard, and occasionally Federal troops to break strikes. They played various ethnic and racial groups off of each in order to divide the labor movement. There are hundreds of instances of such violence being used against workers, in some strikes the dead numbered in the hundreds.

Troops Putting Down the Pullman Strike 

Some of these attacks on workers occurred in major cities, others at isolated work sites and factories. Some are famous, the Haymarket Massacre of May 4th 1886 in Chicago, the Pullman Strike Massacre of 1894, the Homestead Strike and Massacre of 1892, the Latimer Massacre of 1897, the Ludlow Massacre of 1914, and the Columbine Mine Massacre of 1927.

Others less so, but there was more. In the Bisbee Deportation of 1917 1300 striking miners and their families were deported from their homes in Bisbee Arizona by 2000 armed deputies, put in box cars and transported 200 miles to the New Mexico desert, where without food, water or money they were left. There was the Triangle Shirtwaist Factory Fire where managers locked the doors in order to ensure that the fleeing women workers did not put anything unauthorized in their purses. One hundred forty-four workers, mostly young women died, many jumping from the burning building to their death.

Police and other Onlookers Looking up at the burning Triangle Shirt Factory with the bodies of Women Workers who jumped from it at Their Feet

Early labor organizations such as the Knights of Labor led the effort to bring about better conditions. For doing so they were labeled subversive and even called communists. Their meetings were often attacked and the leaders jailed and some lynched.

Eugene Debs

The sacrifices of those early workers, and organizers are why we have Labor Day. One of the early American labor leaders was a man named Eugene Debs. Debs eventually became a Socialist, but he said something remarkable which still is as timely as when he uttered the words:

“I am opposing a social order in which it is possible for one man who does absolutely nothing that is useful to amass a fortune of hundreds of millions of dollars, while millions of men and women who work all the days of their lives secure barely enough for a wretched existence.”

I wish that wasn’t true but it is. The Social Darwinists who follow Ayn Rand as if she were the Prophet and who populate Wall Street boardrooms and every major school of business ensure that it is. The disparity between wage laborers and CEOs is higher than it has ever been. But I digress…

On September 5th 1882 the first Labor Day was observed when members of several Unions in New York City organized the first Labor Day parade. The police came armed and ready to intervene if the workers got out of hand, but the parade was peaceful. It ended and the marchers moved over to Wendell’s Elm Park where they had a party. Twenty-five thousand Union men and their families celebrated, with hundreds of kegs of lager beer.

Within a few years many states began to institute Labor days of their own. In 1894, just days after the violent end of the Pullman strike in which Federal troops and Marshalls killed 30 workers and wounded 57 more, Congress and President Grover Cleveland rushed through legislation to establish a Federal Labor Day.

My Great Aunt Goldie Dundas was a labor organizer for the International Ladies Garment Worker’s Union in West Virginia in the 1920s – 1950s. I wish I had gotten to really know her, but she died when I was about 8 or 9 years old. Sadly the workers represented by that Union have had almost all of their jobs in the textile industry outsourced to China, India, Pakistan, the Caribbean, and Bangladesh where cheaply made garments are produced, and workers abused. The examples of mass deaths due to safety issues and fires in Bangladeshi factories are too numerous to list. But then who cares? The fact is you can drive through many parts of the South and see the poverty created by the exodus of these Union employers, the textile industry, which was part of the fabric of the South is gone. Empty factories and poverty stricken towns dot the countryside. I saw a lot of them living in Eastern North Carolina, towns that once thrived are ghost towns, riddled with crime, unemployment and no hope, unless Wal-Mart opens a store in town. Ironically it sells the clothing made overseas that used to be manufactured by the parents, grandparents and great-grandparents of the people who live there today.

Adam Smith, the father of Capitalism understood it in a very different manner than those who claim to be Capitalists today. He wrote in his magnum opus, The Wealth of All Nations:

“In regards to the price of commodities, the rise of wages operates as simple interest does, the rise of profit operates like compound interest. Our merchants and masters complain much of the bad effects of high wages in raising the price and lessening the sale of goods. They say nothing concerning the bad effects of high profits. They are silent with regard to the pernicious effects of their own gains. They complain only of those of other people.”

The fact is that today, labor is under threat. Unions have been demonized by politicians and pundits and their power and influence much reduced. Some of this was due to their own success in improving conditions from workers, and not just Union workers. When my dad retired from the Navy in 1974, he went to work at one of the few non-Union warehouses of the John Deere Company in Stockton, California. While they were not union, the workers received every benefit won by the majority of the workers in the company who were members of the United Auto Workers Union. Due to that my dad had high wages, excellent working conditions and benefits. The company had a program for the children of workers, which allowed them to work in the summer in the warehouse and receive incredibly high pay and benefits while in college. I did that for two years, and it helped pay for much of my college. I was not a union member but I benefited because Union men and leaders did the hard work to make that job happen.

However, in many places, Unions and labor are under attack, sometimes not just by corporations, but also by state governments. Job security and stability for most American workers is a thing of the past. Federal and State agencies charged with protecting those rights, including safety in the workplace are being cut in the mad rush to reduce government power. Corporations are offshoring and outsourcing jobs without regard to American workers or the country itself. Part of that is due to globalization and I understand that, but these companies frequently relocate jobs to places where they can exploit workers, deny them benefits, pay them less, and suffer no penalty for ignoring safety procedures or harming the environment. It seems to me that we are returning to the days of the Robber Barons. I wonder when violence against workers and those who support them will be condoned or simply ignored.

Pope Leo XIII wrote in his encyclical Renum Novarum:

“The following duties . . . concern rich men and employers: Workers are not to be treated as slaves; justice demands that the dignity of human personality be respected in them, … gainful occupations are not a mark of shame to man, but rather of respect, as they provide him with an honorable means of supporting life. It is shameful and inhuman, however, to use men as things for gain and to put no more value on them than what they are worth in muscle and energy.”

He also wrote:

“Equity therefore commands that public authority show proper concern for the worker so that from what he contributes to the common good he may receive what will enable him, housed, clothed, and secure, to live his life without hardship. Whence, it follows that all those measures ought to be favored which seem in any way capable of benefiting the condition of workers. Such solicitude is so far from injuring anyone, that it is destined rather to benefit all, because it is of absolute interest to the State that those citizens should not be miserable in every respect from whom such necessary goods proceed.”

But sadly there are far too few church leaders of any denomination who will take the side of workers or the poor, and when they do they are either condemned by the disciples of Ayn Rand or politely thanked and ignored by politicians and corporate leaders.

So please, when you celebrate Labor Day, do not forget that it is important, and that we should not forget why we celebrate it. If we forget that, it will become a meaningless holiday and our children may have to make the same sacrifices of our ancestors.

Labor Day is a day to remember the men and women, some of them former soldiers, workers, labor organizers, and leaders; some of whom were killed by National Guard and Federal troops for their effort, who paved the way for workers today. We cannot forget that. So when you see a politician attacking Labor and seeking to diminish workers rights or benefits ask them what Abraham Lincoln or Adam Smith would think. If they can’t answer, turn your backs on them and start fighting for what is right.

WASHINGTON, : US civil rights leader Martin Luther King,Jr. (3rd from L) walks with supporters during the “March on Washington” 28 August, 1963 after which, King delivered the “I Have a Dream” speech from the steps of the LIncoln Memorial. 28 August, 2003 marks the 40th anniversary of the famous speech, which is credited with mobilizing supporters of desegregation and prompted the 1964 Civil Rights Act. King was assassinated on 04 April 1968 in Memphis, Tennessee. James Earl Ray confessed to shooting King and was sentenced to 99 years in prison. AFP PHOTO/FILES (Photo credit should read AFP/AFP/Getty Images)

Dr. Martin Luther King Jr., who always stood for the rights of workers no-matter what their race, creed, or color, said:

“We must rapidly begin the shift from a “thing-oriented” society to a “person-oriented” society. When machines and computers, profit motives and property rights are considered more important than people, the giant triplets of racism, materialism, and militarism are incapable of being conquered.” 

Likewise, one cannot forget that Dr. King was assassinated when he went to Memphis to support the Memphis Sanitation Worker strike.

This my friends is why Labor and the protection of working people from those who abase them, mistreat them, and exploit them is so important.

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Filed under civil rights, ethics, faith, History, labor, laws and legislation, News and current events, Political Commentary

Remembering My Friendship with Carl Long, Negro League Hall of Famer and Civil Rights Pioneer

Friends of Padre Steve’s World,

Today was a day of recovery from a long week with little sleep, lots of work, contractors in the house doing renovations, and a lot of stress. Last night it took me forever to get to sleep even though I went to bed early I could not get to sleep until about four AM. I big part of the problem was that I had my sleep meds lapse as there was a problem between my military provider, the military pharmacy, and the civilian pharmacy that my meds get transferred to. I put on my CPAP and with the lights off I laid in bed for almost four hours before I finally went to sleep. I slept until two PM. I did go out and pick up some melatonin and Advil PM to try to help me sleep tonight. We did get a bit more work done in the house today but not nearly what I hoped to get accomplished.

This evening I had a twitter exchange with a few people including the President of the Negro Leagues Hall of Fame in Kansas City. One of the people encouraged me to write down my memories of the Negro League players that became my friends. The best was the late Carl Long who is in the Negro League Hall of Fame. So tonight I am reposting an article about the beginning of my friendship with him. I will post another tomorrow night.

So until then,

Peace

Padre Steve+

Me with Carl Long

On Friday, after a long and stressful week at work I decided to head to Kinston to see a ball game.  It was a rough week, my staff and I dealt with the death of an 11 year old girl that came through our ER on Monday morning.  I found that a Marine that I had served with while serving with 3rd Battalion 8th Marines in 2000-2001.  Staff Sergeant Ergin Osman was killed around Memorial Day with 7 of his fellow soldiers in Afghanistan. His death hit me hard.  I remembered the great Marine and wonderful young man that I knew back then.  That night I went out and sat in the light of the half moon and cried. Some other things went on and I finished work Friday caring for a family that lost their unborn baby and knowing that I was going to have to come in during the early morning hours Saturday for another still-birth.  I needed something and for me that “something” is baseball.

So when I was done with work I loaded up my trusty 2001 Honda CR-V and drove from LeJeune to Kinston. The trip across rural Eastern North Carolina was relaxing, there was little traffic and despite a passing thunder shower was uneventful, not even a driver doing well less than the speed limit in a no-passing zone to annoy the spit out of me. Eastern North Carolina has its own charm, small towns and settlements dot the farm fields and forests of the area. It is not uncommon to drive by a former plantation or to pass gas stations and country stores that seem to have stopped in time.

Kinston is one of those towns that have seen better times, the outsourcing of the garment industry to Central America and Asia has hit the town hard.  While a budding aviation industry promises better times many of the poorer and less educated people in the city have little opportunity.  While there are some very nice areas in town the central part of the city, especially downtown shows the real effect of what economic damage has been done to our country by the actions of industries to relocate overseas and actions by successive administrations and congresses to help them abandon Americans in order to increase profits.

However Kinston has had a team in the Carolina League for years and Minor League Baseball has been in the city continuously since 1937, with a four year break between 1958 and 1962 when the Kinston Eagles became part of the Coastal Plains League.  Grainger Stadium was built in 1946. The team became part of the Carolina League in 1956. Over the years the Kinston team has had various affiliations with Major League teams as well as various names.  The Team was called the Eagles until 1982 when they became the Blue Jays until 1986 when they again became the Eagles. Then in 1986 they became the affiliate of the Cleveland Indians, a relationship that they maintain until this day. Before the 2011 season it was announced that the team had been sold and was being moved to Zebulon North Carolina to replace the Carolina Mudcats which are moving to Pensacola Florida. The team owner is seeking to bring another team to Kinston in time for the 2012 season.  It will be a sad day if a team cannot be found to bring to Kinston which has one of the nicest parks in Class “A” ball.

I got to the game and was able to relax talking with new friends and moving around the ballpark to take pictures. When I moved back to the first base line I saw a man that I had watched a game with earlier in the year in his season ticket box. John is a retired Navy Supply Corps Officer and really nice to spend time with. This particular evening he was sitting beside a heavy set older African American man wearing a Negro League cap.  I came up and John invited me to sit with them and I got to meet the man, Carl Long.

Carl had played ball in the Negro Leagues with the Birmingham Barons and played with Willie Mays and for legendary manager Buck O’Neal and he was the first black player in the Carolina League playing with the Kinston Eagles when they were with the Pittsburgh Pirate organization.  In 1956 he led the team in home runs with 18, hit .299 and had 111 RBIs a season record that still stands in Kinston.

It was really nice just to be able to listen and to spend time with one of those great men of the Negro Leagues and pioneers of baseball integration. He played with Mays, McCovey, Clemente and against Aaron and even country and western singer Charlie Pride.  He played on a number of minor league teams until the end of 1957.  He was 22 years old and had a lot of good years left in him but he had married the woman of his dreams and he elected to settle in Kinston with her.  They are still married and went on to become the first black deputy Sheriff and first black Detective on the Kinston Police Department and even the first black commercial bus driver.

Carl is part of the Living Legends of surviving Negro League players and makes many appearances, the most recent at Rickwood Field in Birmingham the oldest ballpark in the country and home of the Barons.  He will be honored on July 22ndin Kinston with other Negro League players, including Sam Allen who I know from Norfolk.

I plan on visiting more with Carl as I enjoyed the man immensely. When he found my interesting in baseball history and the Negro Leagues he gave me an autographed baseball card.

I drove home through the night feeling much better even knowing that I would be called in to deal with sad situations at the hospital, but once again I was blessed to have the opportunity to spend time with Carl and John and to meet some other really nice people.

Thank God for baseball and the Church of Baseball, Grainger Stadium Parish.

Peace

Padre Steve+

 

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Thoughts on Labor Day

Friends of Padre Steve’s World,

Yesterday was Labor Day and sadly many people don’t really understand its significance. For decades organized labor has been demonized by the descendants of people who died to secure decent working conditions, wages, and benefits for regular hard working people. But most of the people lucky enough not to have to work on Labor Day really don’t know why it it matters, and whips in spite of those who despise labor and care not a whit about working people, who simply to use business terminology are simply human capital or resources.

So today I am digging into the vault to explore why Labor Day and what it represents matters to us now. This article is one that I have taken the time to edit and update.

Until tomorrow,

Peace,

Padre Steve+

Abraham Lincoln, who was perhaps our only President who was a real working man once said, “If any man tells you he loves America, yet hates labor, he is a liar. If any man tells you he trusts America, yet fears labor, he is a fool.” Likewise, Adam Smith wrote:

“In regards to the price of commodities, the rise of wages operates as simple interest does, the rise of profit operates like compound interest. Our merchants and masters complain much of the bad effects of high wages in raising the price and lessening the sale of goods. They say nothing concerning the bad effects of high profits. They are silent with regard to the pernicious effects of their own gains. They complain only of those of other people.”

It seems that nothing about humanity ever changes, even so it is hard to believe that at one time American workers had no rights and I am not talking about African American slaves who as slaves didn’t even count as human beings. No I’m talking about the people Mel Brooks called in Blazing Saddles: “the white God fearing citizens of Rock Ridge” and for that matter every place and every race in America.

It was not until the mid-1800s in the United States and Europe that workers began to organize and protest for the right to decent wages and working conditions. But this came at a cost; the loss of jobs, homes, property, prison, deportation, deportation, and death.

There were many instances when this cost workers and labor organizers their lives. Employers, often backed by heavily armed private security contractors like the Pinkerton Agency, used deadly force to break up peaceful strikes. In the days of the Robber Barons, when business ran the government at almost every level, employers frequently called in local and state law enforcement, as well as the National Guard, and occasionally Federal troops to break strikes. They played various ethnic and racial groups off of each in order to divide the labor movement. There are hundreds of instances of such violence being used against workers, in some strikes the dead numbered in the hundreds.

Some of these attacks on workers occurred in major cities, others at isolated work sites and factories. Some are famous, the Haymarket Massacre of May 4th 1886 in Chicago, the Pullman Strike Massacre of 1894, the Homestead Strike and Massacre of 1892, the Lattimer Massacre of 1897, the Ludlow Massacre of 1914, and the Columbine Mine Massacre of 1927.

Others less so, but there was more. In the Bisbee Deportation of 1917 1300 striking miners and their families were deported from their homes in Bisbee Arizona by 2000 armed deputies, put in box cars and transported 200 miles to the New Mexico desert, where without food, water or money they were left. There was the Triangle Shirtwaist Factory Fire where managers locked the doors in order to ensure that the fleeing women workers did not put anything unauthorized in their purses. One hundred forty-four workers, mostly young women died, many jumping from the burning building to their death.

Early labor organizations such as the Knights of Labor led the effort to bring about better conditions. For doing so they were labeled subversive and even called communists. Their meetings were often attacked and the leaders jailed and some lynched.

The sacrifices of those early workers, and organizers are why we have Labor Day. One of the early American labor leaders was a man named Eugene Debs. Debs eventually became a Socialist, but he said something remarkable which still is as timely as when he uttered the words:

“I am opposing a social order in which it is possible for one man who does absolutely nothing that is useful to amass a fortune of hundreds of millions of dollars, while millions of men and women who work all the days of their lives secure barely enough for a wretched existence.”

I wish that wasn’t true but it is. The Social Darwinists who follow Ayn Rand as if she were the Prophet and who populate Wall Street boardrooms and every major school of business ensure that it is. The disparity between wage laborers and CEOs is higher than it has ever been. But I digress…

On September 5th 1882 the first Labor Day was observed when members of several Unions in New York City organized the first Labor Day parade. The police came armed and ready to intervene if the workers got out of hand, but the parade was peaceful. It ended and the marchers moved over to Wendell’s Elm Park where they had a party. Twenty-five thousand Union men and their families celebrated, with hundreds of kegs of lager beer.

Within a few years many states began to institute Labor days of their own. In 1894, just days after the violent end of the Pullman strike in which Federal troops and Marshalls killed 30 workers and wounded 57 more, Congress and President Grover Cleveland rushed through legislation to establish a Federal Labor Day.

My Great Aunt Goldie Dundas was a labor organizer for the International Ladies Garment Worker’s Union in West Virginia in the 1920s – 1950s. I wish I had gotten to really know her, but she died when I was about 8 or 9 years old. Sadly the workers represented by that Union have had almost all of their jobs in the textile industry outsourced to China, India, Pakistan, the Caribbean, and Bangladesh where cheaply made garments are produced, and workers abused. The examples of mass deaths due to safety issues and fires in Bangladeshi factories are too numerous to list. But then who cares? The fact is you can drive through many parts of the South and see the poverty created by the exodus of these Union employers, the textile industry, which was part of the fabric of the South is gone. Empty factories and poverty stricken towns dot the countryside. I saw a lot of them living in Eastern North Carolina, towns that once thrived are ghost towns, riddled with crime, unemployment and no hope, unless Wal-Mart opens a store in town. Ironically it sells the clothing made overseas that used to be manufactured by the parents, grandparents and great-grandparents of the people who live there today.

Adam Smith, the father of Capitalism understood it in a very different manner than those who claim to be Capitalists today. He wrote in his magnum opus, The Wealth of All Nations:

“In regards to the price of commodities, the rise of wages operates as simple interest does, the rise of profit operates like compound interest. Our merchants and masters complain much of the bad effects of high wages in raising the price and lessening the sale of goods. They say nothing concerning the bad effects of high profits. They are silent with regard to the pernicious effects of their own gains. They complain only of those of other people.”

The fact is that today, labor is under threat. Unions have been demonized by politicians and pundits and their power and influence much reduced. Some of this was due to their own success in improving conditions from workers, and not just Union workers. When my dad retired from the Navy in 1974, he went to work at one of the few non-Union warehouses of the John Deere Company in Stockton, California. While they were not union, the workers received every benefit won by the majority of the workers in the company who were members of the United Auto Workers Union. Due to that my dad had high wages, excellent working conditions and benefits. The company had a program for the children of workers, which allowed them to work in the summer in the warehouse and receive incredibly high pay and benefits while in college. I did that for two years, and it helped pay for much of my college. I was not a union member but I benefited because Union men and leaders did the hard work to make that job happen.

However, in many places, Unions and labor are under attack, sometimes not just by corporations, but also by state governments. Job security and stability for most American workers is a thing of the past. Federal and State agencies charged with protecting those rights, including safety in the workplace are being cut in the mad rush to reduce government power. Corporations are offshoring and outsourcing jobs without regard to American workers or the country itself. Part of that is due to globalization and I understand that, but these companies frequently relocate jobs to places where they can exploit workers, deny them benefits, pay them less, and suffer no penalty for ignoring safety procedures or harming the environment. It seems to me that we are returning to the days of the Robber Barons. I wonder when violence against workers and those who support them will be condoned or simply ignored.

Pope Leo XIII wrote in his encyclical Renum Novarum:

“The following duties . . . concern rich men and employers: Workers are not to be treated as slaves; justice demands that the dignity of human personality be respected in them, … gainful occupations are not a mark of shame to man, but rather of respect, as they provide him with an honorable means of supporting life. It is shameful and inhuman, however, to use men as things for gain and to put no more value on them than what they are worth in muscle and energy.”

He also wrote:

“Equity therefore commands that public authority show proper concern for the worker so that from what he contributes to the common good he may receive what will enable him, housed, clothed, and secure, to live his life without hardship. Whence, it follows that all those measures ought to be favored which seem in any way capable of benefiting the condition of workers. Such solicitude is so far from injuring anyone, that it is destined rather to benefit all, because it is of absolute interest to the State that those citizens should not be miserable in every respect from whom such necessary goods proceed.”

But sadly there are far too few church leaders of any denomination who will take the side of workers or the poor, and when they do they are either condemned by the disciples of Ayn Rand or politely thanked and ignored by politicians and corporate leaders.

So please, when you celebrate Labor Day, do not forget that it is important, and that we should not forget why we celebrate it. If we forget that, it will become a meaningless holiday and our children may have to make the same sacrifices of our ancestors.

Labor Day is a day to remember the men and women, some of them former soldiers, workers, labor organizers, and leaders; some of whom were killed by National Guard and Federal troops for their effort, who paved the way for workers today. We cannot forget that. So when you see a politician attacking Labor and seeking to diminish workers rights or benefits ask them what Abraham Lincoln or Adam Smith would think. If they can’t answer, turn your backs on them and start fighting for what is right.

Dr. Martin Luther King Jr., who always stood for the rights of workers no-matter what their race, creed, or color, said: “We must rapidly begin the shift from a “thing-oriented” society to a “person-oriented” society. When machines and computers, profit motives and property rights are considered more important than people, the giant triplets of racism, materialism, and militarism are incapable of being conquered.”

This my friends is why Labor and the protection of working people from those who abase them, mistreat them, and exploit them is so important.

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Filed under ethics, faith, History, labor, laws and legislation, News and current events, Political Commentary

A Juxtaposition of Contradictions: Thanksgiving, Black Friday and the Bangladesh Clothing Factory Fire

The Clothing factory Fire that Killed over 100 People in Bangladesh (NBC News Photo)

The past weekend was a juxtaposition of contradictions for me. On a personal level it was one of the best Thanksgivings that Judy and I have ever had together. We enjoyed a simple home cooked meal together, relaxed during the day with our two dogs Molly and Minnie and then saw the James Bond film Skyfall that night. We avoided the big stores and shopping for the most part except things that we needed. It was nice. We were able to spend time with each other and friends on both Friday and Saturday and enjoy each other.

All that being said it was kind of strange because in our time of relaxing and enjoying a manner of solitude and peace there were things that I noticed or thought about that struck me odd. Thanksgiving is quite possibly the only uniquely American holiday that binds us together as people and families. It can be religious but it doesn’t have to be because being thankful is something that is not unique to religious people. With that being said it seems to me that the holiday is being crushed by the gross materialism and consumerism of “Black Friday” which now begins early Thursday evening.

As I thought about this there was news of a fire in a clothing factory in Bangladesh, so far at least 109 people are known dead. The factory made clothing for a good number of American retailers, clothing that at one time before retailers outsourced the jobs was made in America. The reason that the jobs were outsourced was for their profit margins. I live in eastern North Carolina, which at one time was a center of the American textile industry. That industry has been decimated over the past couple of decades. Empty factories and businesses that used to employ Americans making goods that other Americans bought have been shuttered.

The retailers and Wall Street say that it is because that American made goods were uncompetitive because American workers were paid too much and because of government regulations, particularly regulations involving safety and the environment. So they closed their American operations and moved them to China, India, Pakistan, and Bangladesh, where there are few if any regulations, were workers are often slave labor or indentured servants and were neither worker safety or the environment is a concern.

It struck me because a couple of weeks ago I needed some socks. So I went to the Marine Corps Exchange on Camp LeJeune. They have numerous supposedly American brands, all the big ones. As I looked through the socks I started noticing that in almost every case they were made in China, except some by Dockers which were made in Pakistan. And this was in a military exchange where even much of the official Marine Corps logo clothing and goods are made in China. So I decided to look at where my clothes were made. In about 5 minutes of sorting I found nothing made in the USA, only a few t-shirts said that the were made of American components but assembled in Honduras. Other clothes, China, India, Bangladesh, Pakistan, Afghanistan, Swaziland, Indonesia and Macau.

Electronics, household goods and many other common things that we purchase are little different, many if not most are now made overseas by people that are often slave laborers. So as I watched retailers crushing the one really American family holiday selling goods from everywhere but America I was appalled. When I saw the report of the 109 people killed in the Bangladeshi factory I felt a sense of revulsion about the crass inhumanity of Black Friday and American consumerism.

The Triangle Shirtwaist Factory Fire of 1911

As a historian and a priest I look back at events like the Triangle Shirtwaist of 1911 where 146 workers died and wonder how it is that we can allow ourselves to support economic policies that do the same thing to people in other countries that were common here little more than a century ago. It is like we are engaged in an orgy of buying while people are dying to subsidize the bargains that we get.

So I don’t really know how to feel. I am thankful for the many blessings that I enjoy but I am very torn when I see what is going on, especially when I see the same corporations that profit by these policies squeezing their workers more every day.

So I am going to be more careful to try to not just “buy American.” But I am also going to do what I can to modify my own buying habits within the limits of the current situation. I am also going speak out about the terrible injustices of the outsourcing that has gutted the industrial strength of our country and also allows the practical enslavement of entire peoples by despotic governments propped up by “American” owned companies.

For me this is not simply an American issue, it is a human rights issue and it is the Christian thing to do. As Pope Leo XII wrote in his Encyclical Rerum Novarum (On Capital and Labor) in 1891: “If we turn not to things external and material, the first thing of all to secure is to save unfortunate working people from the cruelty of men of greed, who use human beings as mere instruments for money-making. It is neither just nor human so to grind men down with excessive labor as to stupefy their minds and wear out their bodies…”

There is much more to write on this but not tonight.

Peace

Padre Steve+

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Padre Steve Defends Mitt Romney against Extremism Talk

Mitt Romney has had a rough time as of late and I have decided that I will not pile on. Mitt Romney used to be a moderate like me and for that I have a soft spot for him in my heart. As a patriotic American and moderate I know that Governor Romney has a one in two chance of becoming the next Commander-in-Chief and I will not stand for anyone diminishing Mitt’s potential Commander-in-Chiefyness. I want him to be the most Chiefy Commander-in-Chief of all time if he is elected President.

Too many extremists have attacked this fine American over the past few weeks and months. I know that I have criticized Mitt but I won’t take it anymore because I was for Mitt before I was against him and I won’t have anyone call me a flip-flopper because when I wear open toed shoes I wear Birkenstocks.

To start with I won’t be like former Senator and Presidential candidate Rick Santorum who called Governor Romney “the worst Republican in the country to put up against Barack Obama.” I object to Senator Santorum doing this because there are other Republicans who have to be worse than Mitt and Santorum’s criticism is obviously that of a sore loser and Romney is a winner.

General George Smith Patton, bless his holy name, said in the movie Patton:“America loves a winner and will not tolerate a loser.” I’ll tell you what, Mitt Romney is not a loser, except for the time that he lost to Teddy Kennedy when he ran against that Commie for the Massachusetts Senate seat, and when he lost to the man that lost to President Obama for the GOP nomination in 2008, Senator John McCain. But apart from that Mitt has never known defeat.

I am tired of pundits like American Family Association spokesman Bryan Fischer who gloated “If Mitt Romney can be pushed around, intimidated, coerced, co-opted by a conservative radio talk show host in Middle America, then how is he going to stand up to the Chinese? How is he going to stand up to Putin? How is he going to stand up to North Korea if he can be pushed around by a yokel like me? I don’t think Romney is realizing the doubts that this begins to raise about his leadership.”

I think that Fischer’s comments are below the belt. Mitt Romney will not be pushed around by anyone and he has proved that at an early age. When a non-conformist classmate in his obscure elitist prep-school disrespected that school and grew his hair long Mitt took action. He demonstrated the greatness of American organization and toughness by rallying a number of other classmates to help him chase this hooligan down and hold him down while Mitt cut the screaming baby’s hair to the regulation length. That’s how he will stand up to the Chinese. Do you think that Gang-Bang-Wang of China or Kim-Long-Dong of North Korea want Mitt to rally America to hold them down and cut their obviously badly cut and cheaply dyed hair? I know that they don’t.

When some of Mitt’s competitors in the 2012 GOP primaries threatened him, Mitt did not take it lying down. No he carpet bombed their sorry asses, destroyed their candidacies and won the nomination. He Nagaski’d them like he will do Iran. That is the mark of a decisive leader.

I’m tired of those that criticize Mitt’s business ethics and compared him to a vulture like Texas Governor Rick Perry who complained to Sean Hannity in January: “There’s a real difference between venture capitalism and vulture capitalism. Venture capitalism we like. Vulture capitalism, no. And the fact of the matter is that he’s going to have to face up to this at some time or another, and South Carolina is as good a place to draw that line in the sand as any. That’s not what we’re looking for in a president of the United States. We’re looking for someone that knows how to build jobs, create jobs. And that’s what I’ve done in the state of Texas. So there’s no use trying to paper this over. That is a problem for Mitt, and he’s going to have to face it.”

I’m sorry Governor Perry, Mitt has met that challenge. He looks nothing like a vulture. Look at that hair. It is amazing. I wish I had hair like that. Did you ever see a vulture with hair like that? I think not. Check your facts governor because they don’t matter to us anyway.

Then there are those like former Governor of Arkansas and Fox New commentator Mike Huckabee who criticize Mitt’s conservative credentials. Huckabee had the nerve to write in his book saying that Mitt “spent more time on the road to Damascus than a Syrian camel driver. And we thought nobody could fill John Kerry’s flip-flops! … [Romney’s record was] “anything but conservative until he changed all the light bulbs in his chandelier in time to run for President.”

That was not fair and Huckabee should be ashamed. A man who buys his outsourced made in China chandelier from Wal-Mart should not criticize a man who financed the company that manufactured it and who would never stoop to changing a light bulb that his janitor should have done before it got dark. Mitt would fire that janitor and hire someone else to change those bulbs. Shame on you Mike Huckabee.

Rick Santorum joined in that criticism saying that Romney “is the ultimate flip-flopper….” That dear reader is not fair. Governor Romney has had to defend himself against many scurrilous charges. I mean Mitt has had to defend himself because President Obama had the nerve to steal his Massachusetts health care plan and name it after himself. Can you believe that? It is horrendous and a scandal and Governor Romney should deny any responsibility for President Obama’s shameful swiping of his idea.

I cannot imagine Mitt being a “flip-flopper.” There is no proof that Mitt wears outsourced flip-flops made in China or Pakistan. No, it is sure that Romney wears Sperry Top-siders when he is on his luxury yacht because everyone knows that open toed shoes are dangerous to wear about ships. Mitt understands that you need to protect your toes, because a nation without leaders is like a foot without a big toe.

I am also tired of those that have criticized Romney for speaking French like Newt Gingrich did during the GOP primaries. Gingrich was trying to equate Mitt with Senator John  Kerry, who was awarded the Silver Star, Bronze Star and Purple Heart for killing Commies in Vietnam before he was against killing them. Mitt speaks French as does Kerry, but Mitt is different. Unlike Kerry who went to Vietnam and then shamefully protested against the war, Mitt was for the war. He was a patriot and protested for the right of the government to draft others to go fight and kill the Commies like every good American should have done. Romney then sacrificed several years of college hijinks and venture to France to convert the heathen French and eat Fois Gras and Escargot for three years as a missionary while avoiding the wine and beer. That is a sacrifice. When I went to France I only ate in Italian restaurants and only drank wine and beer. Besides, speaking French is like speaking the language of the enemy. When some pinko-socialist French atheist writer mocks America in French, Mitt will understand those words and bomb Paris in retaliation.

And finally in defense of Mitt, I condemn those like former Reagan speech writer and conservative Wall Street Journal Columnist Peggy Noonan and call Mitt’s management of his campaign “incompetent” and “in need of an intervention” or Bill Kristol who called Mitt “stupid and arrogant.”

I am sorry, those comments are below the waistline of Mitt’s magic underwear, which he evidently doesn’t wear to bed according to what he told Kelly Ripa. I won’t stand for it anymore. I refuse to take part in the heresy hunt of these extremists. This is the United States of America and Mitt Romney just might be our next Commander-in-Chief and I don’t want to diminish his Chiefyness.

That’s just my take, I want to stay classy.

Peace

Padre Steve+

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Filed under Just for fun, Political Commentary, satire

Follow the Money: The Real Motives behind those Seeking to Radically Change the Military Retirement System

The Military Times put it on the Front Page last Week: Wednesday Secretary of Defense Leon Panetta announced at the National Defense University that no changes were coming soon. Despite that Military personnel should be on guard as the Defense Business Board continues to push for retirement changes that are bad for the service member, bad for keeping the best people in the military but that are great for Wall Street and Defense Contractors

There is much talk amid the current debate on the National Debt and the budget crisis of changing the military retirement system.  Of course the argument now being used by the most fervent advocates of change is that military retirement is a “rich entitlement program” which is draining the Defense Budget and keeping us from buying weapons, to quote Defense Business Board member Richard Spencer “What are you going to trade off — a rich entitlements program, or boots and bullets for the troops?”

Now on the surface that seems logical but in truth it is simply a way for American business and financial corporations to gain control of military retirement for their own gain.  The way they propose is to eliminate the current program and institute a 401K based system as used in many businesses.  However they fail to mention that military service in time of war, which if anyone hasn’t noticed we have been at for 10 years is quite different than working in the civilian world, the little things like long deployments, family separation and need I say getting shot at by bad guys and watching your friends and comrades be killed our maimed do tend to make military service more arduous than 99% of those that work in the civilian world.

The ideas put out by the Defense Business Board gut the military retirement system.  These plans are not in any sense of the word an “overhaul” of the system but a complete scrapping of a system that has worked.  The members of the board seem to believe that the problem with the military budget is that military personnel make too much money and that their retirement if they get to 20 years is breaking the budget.  The members of the board blame cutbacks in weapons systems on the personnel budget ignoring that most of the weapons systems cancelled or cut back were due to the massive cost overruns charged by defense contractors and the failure of those contractors to deliver the systems that they promised on time on budget or for that matter operational.

That list includes the grounded F-22 Raptor of the Air Force, the mechanically challenged LPD-17 San Antonio class amphibious ships, the under armed, undermanned and corrosion prone Littoral Combat ships which are actually two distinctly different classes of ship increasing the cost of the project.  Then there is the FA-35 Joint Strike Fighter which is way over budget and far behind schedule and despite all efforts none are in operational units yet and those in test units were grounded last week.  The Marine Corps lost the much touted but never produced Expeditionary Fighting Vehicle, the planned replacement for its Assault Amphibian Vehicle when the troubled and expensive program was cancelled by former Secretary of Defense Robert Gates.  The Army had to cancel their Future Combat Systems Manned Vehicle project in 2009.  The list can go on and on and on all the while the contractors that were involved made a mint off of the military.  Much was due to the fact that all of these systems were over budget, behind schedule and often under performing what they were designed to do.

Something else that the Defense Business Board ignores is the massive cost of the wars in Iraq and Afghanistan and the money being paid to civilian defense contractors such as Halliburton, Kellogg Brown and Root, the former Blackwater and hundreds of other players in the dash for Defense Department cash. They also fail to mention that the financial industry which a number of heavy hitters on the board represent ran our and the world economy onto the rocks back in 2008.

The Defense Business Board was established by former Defense Secretary Donald Rumsfeld in 2001.  All of the members are appointed by the Secretary of Defense and all of the current board members were appointed by Rumsfeld or Robert Gates.

So who are the members of this board and who do they work for?

John B. Goodman, Chairman: Serves as managing director of the U.S. Defense portfolio for Accenture, a global management consulting, technology services and outsourcing company.

Mark H. Ronald, Vice Chairman: As senior advisor to Veritas Capital Management is a private equity fund that invests in a broad range of middle market companies through buyouts, growth capital investments, and leveraged recapitalizations. Veritas Capital invests in companies that provide outsourced services to the government – primarily in the areas of defense and aerospace, security, and infrastructure. It has also earned a reputation as a niche defense investor and for turning around troubled defense contractors.

Fernando Amandi: The former Chief Operating Officer for Citibank Consumer Bank International inLatin America, President of Motorola International Network Ventures based in London, England and Senior Vice President and General Manager of the American Express Consumer Financial Services Division in Latin America.  At present, he is the President of Fanta Real Estate Investments, LLC.  He served for 6 years as an enlisted member of the Florida Army National Guard.

Owsley Brown II: Retired chairman and CEO of Brown-Forman Corporation. He served from 1966 to 1968 as an Army intelligence officer at the Pentagon.

Pierre A. Chao: Managing Partner and co-founder of Renaissance Strategic Advisors. The company website gives this description “Renaissance Strategic Advisors is focused on the global defense, space, government services, homeland security and commercial aerospace market. Our clients are typically senior decision makers at the Board of Directors, CEO, CFO, sector president or investment partner level. We work with firms up and down the value chain, from component manufacturers to prime contractors to private equity/venture capital firms. Our clients span the full life cycle from early stage startup firms to industry leaders.”

Patrick W. Gross: Chairman of  the Lovell Group, a private investment and advisory firm, where he works with a portfolio of venture capital backed private technology and internet commerce companies. He is currently a director of four public companies: Capital One Financial Corporation, Career Education Corporation, Liquidity Services, Inc., and Mobius Management Systems, Inc. In the 1960’s he worked in the Pentagon as one of “McNamara’s Whiz Kids.”

Lon Levin: President of Sky Seven Ventures, which works with, helps manage, and invests in new technology companies, particularly space-based businesses, including Sentinel Satellite (CEO), Transformational Space (Chief Strategic Officer), Slacker Radio (Senior Advisor to CEO and Board), Integral Systems, Terrestar Networks, and Near Earth LLC.

Bonnie Cohen: A consultant specializing in management and financial issues.  Ms. Cohen serves on the Board of Cohen & Steers Mutual Funds, a $20 billion dollar family of mutual funds. Ms. Cohen is a member of the Cosmos Club and on the Endowment Investment Committee.

Mel M. Immergut: Chairman of Milbank, Tweed, Hadley & McCloy LLP “a global law firm, with approximately 550 lawyers who provide a full range of financial and business legal services to many of the world’s leading financial, industrial and commercial enterprises, as well as governments, institutions and individuals.”

Edward A. Powell Jr.: President and CEO of the USO World Headquarters.

David H. Langstaff: President & Chief Executive Officer TASC, Inc. A technology and intelligence services a subsidiary of Northrop Grumman and Litton industries, both major Defense contractors.

Phil Odeen: Non-executive Chairman of AES, an international energy company and Convergys, a leading outsourcing company.  Convergys is one of the leading firms that help companies in the United States and  Western Europe outsource jobs overseas.

Arnold Punaro: Chief executive officer of the Punaro Group, LLC, a Washington-based firm offering government relations, strategic planning, federal budget and market analysis, communications, crisis and emergency management, business development and sensitive operations consulting.  Punaro retired from the Marine Corps Reserve as a Major General and unlike the rest of the board served in combat as a Rifle Company Platoon Commander where he was awarded the Bronze Star for Valor and the Purple Heart Medal.  He was mobilized for the Gulf War, the Bosnia operations and again at the beginning of Operation Enduring Freedom.  Since his retirement he has been a consistent critic of the military retirement system.

Richard Spencer: Managing Director of Fall Creek Management LLC a privately held management consulting company. He was the former Vice Chairman and Chief Financial Officer of Intercontinental Exchange, Inc. (NYSE-ICE) which according to its website “operates leading regulated exchanges, trading platforms and clearing houses serving global markets for agricultural, credit, currency, emissions, energy and equity index markets. ICE operates three futures exchanges including London-based ICE Futures Europe, which hosts trading in half of the world’s crude and refined oil futures contracts traded each day. ICE Futures U.S. and ICE Futures Canada list agricultural, currency and Russell Index futures and options markets. ICE also provides trade execution, processing and clearing services for the over-the-counter (OTC) energy and credit derivatives markets.”  Spencer served as a Marine Corps Aviator from 1976-1981.

Bobby Stein: President of the Regency Group, a family holding company located in Jacksonville,Florida. The Regency Group has invested in many businesses including the water, sewer and waste, real estate, mortgage service, and fast food industries.

Robert I. Toll: is Chairman and Chief Executive Officer of Toll Brothers, Inc., the leading builder of luxury homes

Atul Vashistha: Founder & Chairman, neoIT Founder & Chairman, NEOGROUP. According to the Defense Business Board website he is “a leading proponent and practitioner of globalization and futurizing enterprises. He is recognized globally as one of the leading advisors on globalization and outsourcing. He founded Neo Group (Formerly neoIT) in 1999 with the mission of helping enterprises grow their business and improve operations by leveraging outsourcing and globalization. Neo also advises government and trade bodies on how to be better destinations for outsourcing. Neo also help enterprises manage and monitor supply relationships, risks and governance.”

Kevin Walker: Chief Operating Officer of Iberdrola USA a public utility company and subsidiary company of the Spanish Electric Company Iberdrola. Walker is a 1985 graduate of theUnited States Military Academy and served as a Field Artillery Officer from 1985-1991 including a tour during Operation Desert Shield and Desert Storm.

Joe Wright: Senior Advisor to the Chart Group, L.P. which is a merchant banking firm investing in both venture and growth capital companies that also provides senior level advice and capital access to corporate clients. According to the company website it “is a merchant banking firm organized in 1994 to sponsor alternative investments and provide discreet, senior level advice and capital access to corporate clients.”

Jack Zoeller: Chairman and CEO of Bank of Virginia, a subsidiary of  which he co-founded in 2009 to bring new capital and management to troubled community banks in the Eastern U.S. He has also served as CEO of Cordia Bancorp, Capital Risk Management Corporation, ComFed Bancorp Incorporated, North American Company Health and Life Insurance Company, and AtlantiCare Risk Management Corporation.  Zoeller is a Military Academy graduate and former Infantry Officer who served with the 82nd Airborne Division.

John Hamre Chairman of the Defense Advisory Board and Chairman of the Defense Science Board serve in an ex-officio status.

Senior Fellows:

Neil F. Albert: President and CEO of MCR, LLC, a company specializing in management consulting, business analysis and forecasting, and information systems.

Barbara Barrett: Former Ambassador to Finland until 2009.  She is an international business and aviation attorney. CEO of Triple Creek Guest Ranch, a Montana Hideaway resort.

Denis Bovin: Co-Chairman and Co-CEO of Stone Key Partners LLC, a strategic and financial advisory investment bank which “offers mergers and acquisitions advisory services.” Prior to forming Stone Key Partners, Mr. Bovin was Vice Chairman –Investment Banking, Senior Managing Director and Chairman of the Global Technology, Media and Telecom Group at Bear Stearns & Co. He was a member of the team that directed Bear Stearns’ Investment Banking activities and had direct responsibility for a wide variety of the Firm’s key domestic and international investment banking clients.

Frederic W. Cook: Founding Director of Frederic W. Cook & Co., an independent consulting firm providing advice to corporate boards and compensation committees on executive compensation matters.  The company website says that they provide “consulting assistance to corporations in order to develop compensation programs for senior executives, key employees, and board of directors.” Prior to forming the firm in 1973, Fred was a principal in Towers, Perrin, Forster & Crosby, a firm which he joined in 1966 following four years of service as an infantry officer in the U.S. Marine Corps.

Madelyn Jennings: A Founder of the Cabot Advisory Group, President of the McGregor Links Foundation, and Co-Chair of the Executive Committee of the Freedom Forum. She is the retired Senior Vice President of Personnel at the Gannett Co., the largest newspaper company in the U.S., publisher of USA TODAY. Previously she was Vice President of Human Resources at Standard Brands Inc.

Jim Kimsey: Created America Online, Inc. He currently serves as Chairman Emeritus. He attended theUnited StatesMilitaryAcademy atWest Point.  He served three combat tours as an airborne ranger, two in Vietnam, earning various awards for service and valor.


William R. Phillips: Principal in Charge of KPMG’s Federal Advisory unit, located inMcLean,Virginia. In this role he is responsible for the development and execution of the unit’s business strategy, client services and business operations. His team supports clients across the Federal Government, representing most all agencies, including the Departments of Treasury, Energy, Defense, and Homeland Security, in addition to the intelligence community. Services include financial management improvement, strategy, IT security and internal controls, and supply chain management. Prior to joining KPMG, Mr. Phillips was a Vice President at IBM responsible for their services to the global defense community.  While Mr. Phillips was not involved his company KPMG has been the focus of several major criminal and civil investigations. In early 2005, theUnited States member firm, KPMG LLP, was accused by the United States Department of Justice of fraud in marketing abusive tax shelters. KPMG LLP admitted criminal wrongdoing in creating fraudulent tax shelters to help wealthy clients avoid $2.5 billion in taxes and agreed to pay $456 million in penalties in exchange for a deferred prosecution agreement. KPMG LLP would not face criminal prosecution if it complied with the terms of its agreement with the government. On January 3, 2007, the criminal conspiracy charges against KPMG were dropped.

Dov S. Zakheim: Senior Adviser at the Center for Strategic and International Studies at the CNA Corporation a non-profit research organization that operates the Center for Naval Analyses and the Institute for Public Research. Previously he was Senior Vice President of Booz Allen Hamilton, where he was a leader in the Firm’s global defense practice. During the 2000 presidential campaign, he served as a senior foreign policy advisor to then-Governor Bush. From 2001 to April 2004 he was Under Secretary of Defense (Comptroller) and Chief Financial Officer for the Department of Defense.  He chairs the National Intelligence Council’s International Business Practices Advisory Panel, and is a member of the Commission on Wartime Contracting in Iraq and Afghanistan; the Defense Business Board, which he helped establish.

Consultants:

John M. B. O’Connor: Chairman of J.H. Whitney Investment Management, LLC, which according to its website “pursues high absolute risk adjusted returns in a limited number of highly specialized investment strategies in the public markets. Our specific areas of excellence are Asian markets, Global Commodity and Macro markets, the US Equity Volatility complex and US Small Capitalization deep value equities.”

Leigh Warner: Senior Advisor to business leaders and government officials.  Her biography on the DBB website is very vague as to what corporations that she worked for or managed except that she did at one time serve as Director for Marketing of Kraft Foods.

Admiral Vernon Clark USN Retired: Former Chief of Naval Operations sacrificed 30,000 Navy personnel and decommissioned dozens of ships early in order to “recapitalize” the fleet, something that never occurred. Current CEO of SRI International  “an independent, nonprofit research institute conducting client-sponsored research and development for government agencies, commercial businesses, foundations, and other organizations. SRI also brings its innovations to the marketplace by licensing its intellectual property and creating new ventures.” On Board of Directors of Raytheon Company, Rolls Royce North America, Horizon Lines, and the World Board of Governors of the USO. He is a Distinguished Professor atRegentUniversity and serves as a Trustee at RegentUniversity,Vanguard University and Air University. He is a senior advisor with Booz Allen Hamilton, and is on advisory boards with the Defense Policy Board, Fleishman-Hillard, Northrop Grumman, Robertson Fuel Systems LLC, Cubic Defense Applications, Inc., and the Executive Committee of Military Ministry.

General Michael Carns USAF Retired: Served as Vice Chief of Staff of the Air Force from 1991-1994. In 1995 he withdrew his nomination to become director of the CIA when it was revealed that he had failed to properly compensate a young Filipino who legally accompanied his family to the United States, an act he said that was an “innocent mistake.” He currently serves as the Vice Chairman of Priva Source, Inc., a small software firm specializing in the security and de-identification of large, sensitive databases, in Weston, Massachusetts and serves on the Board of Directors for Virtual Agility, Inc.

Putting it all Together

Everyone knows that our country needs to put its financial house in order.  However let us put a few things in perspective.

The 50% of Pay Retirement Myth: The 50% myth is widely circulated and most people wrongly assume that a military member that retires at 20 years gets 50% of their pay when they retire.  First the 50% is actually the average of their highest three years of base pay, usually amounting to about 47% rather than 50%.  A lot of people talk about the 38 year old retiree getting 50% of his or her pay for life.  First only a fraction of enlisted members can retire that early and most of those are in the pay grades of E6 and E7.  Many more especially officers, warrant officers and those that reach the E8 to E9 level stay longer meaning that they enter civilian life at a point where their age becomes a factor against them.  Additionally all lose special pays and things like the Basic Allowance for Housing, combat pay and other benefits. This means that the average service member is only receiving about 35% of their active duty pay and allowances when they retire.  Add to this the fact that many have incurred injuries including combat related injuries that follow them well past retirement.  The board is also recommending cutting medical benefits with General Punaro calling them a “GM type benefit” that cannot be sustained.

Reserve Retirement: Reservists that qualify for retirement receive that pay at the age of 60 and only receive a fraction of what they would if they had 20 active years. Reserve retirement is calculated on actual days of active duty, points for inactive duty training (drills) and points for being in a drilling status.  To have a “good year” for retirement a reservist has to accumulate 50 retirement points which can be any of the above plus points for correspondence or online courses offered by the military.  Most reservists spend many more hours and days in unpaid status in order to maintain their qualifications and ensure that their units are able to do their mission.

Many Military job specialties do not have a civilian equivalent: Here is another fact that the Board and other civilian critics of the military compensation like to ignore.  The way they market their proposal is to basically say that military retirement puts one on easy street and that veterans walk right into great jobs when they leave the military.  The unemployment rate for veterans is far higher than the national average as are medical and psychological problems related to their service.

What would replace the current system? A mandated program similar to a 401K which invests the service member’s contributions estimated at about 16% a year into mutual funds and the stock market.  The Board’s plan reduces retired pay 5% for each year before age 57 (17 years x 5% = 85% reduction), yielding only $3,600 a year at age 40 for an E7 at current pay rates.  At age 60, the retiree would begin drawing money from the 401(K)-type plan. Using their assumptions that project a 7% return on the investment, the retiree would draw $13,600 more per year until age 85. If the member wanted to withdraw money after age 85, the annual withdrawal amount would be reduced.  Now the plan would provide a limited benefit to those that leave the service before the 20 year mark and that is a plus for those service members.

Retaining Qualified People: The retirement system is a huge part of our military’s success.  It encourages well qualified people who could be making more money in the civilian world to stay in the military.  Back in the 1980s Congress passed a retirement reform plan that reduced the 20 year retirement benefit to 40% of the high three years. Secretary of Defense Weinberger said that it would make it hard to retain qualified people. Congress passed it and during the Clinton administration had to return to the 50% high-three plan because we were losing too many of our best people.  To use a rather quaint term “you get what you pay for.”

Follow the Money:

The crux of the Defense Business Board’s proposal is to make military retirement like civilian retirement.  The only problem is that civilian firms generally don’t have a “retirement plan” anymore.  Instead they make minimal investments in 401K programs which leave their “retirees” at the mercy of the economy and the markets.  I know many people in their 60s and 70s that have seen their nest eggs blow away in the latest market turmoil.  This is not exactly a secure investment especially when these same retirees will certainly face the reduction or elimination of their Social Security benefits that they like all people (except the miniscule number that can opt-out of it) contribute.

So it really isn’t the service member that benefits from this plan. Likewise if you admit that like in the 1980s and 1990s we will lose a lot of our best people if the retirement benefit is removed or substantially reduced with the resultant loss in experience and expertise and the effect on combat power.

So who benefits? Follow the Money: The reason that I put all the board member names and who they work for and what their connections are is so you can follow the money.  I have not seen any other articles or blogs that really trace this to the source.  Almost every single member, fellow or advisor has significant ties and relationships with major defense contractors or Wall Street forms that deal in mutual fund management, investment and businesses that focus on outsourcing. All were appointed by either Secretary of Defense Rumsfeld or Gates and represent institutions that are closely allied with the business interests of the Republican Party. Those that say that “Obama is threatening to cut military retirement” either are ignorant or lying.

Since none of the Board members are employees of the government and only are reimbursed for their per diem they are not fair arbiters.  They represent the very firms on Wall Street and the Defense Industry that will gain the most from this plan.  Almost all are so deeply enmeshed in what Dwight D. Eisenhower called the Military Industrial Complex that their ultimate loyalty is to those that they work for, those very firms that have swindled and cheated the government by their mismanagement and inefficiency in building weapons systems that are over budget, behind schedule and often cannot be fielded, have to be cancelled or truncated or are failures that cannot perform the mission that they were designed to do.  Likewise they represent the major financial interests that were hat in hand responsible for the financial meltdown of 2008, our record unemployment and possible double dip recession.  The firms that these men and women represent would receive a cash infusion of major proportions coming from the forced contributions by a million and a half active and reserve military members.

To his credit the new Secretary of Defense Leon Panetta said on Wednesday that there would be no changes coming soon and any changes will have to be passed by Congress.

Conclusion: We have been at war for 10 years and in various states of war or peace making operations for 20 years.  During that time only about one half of one percent of the American population served in the military at any given time.  To insinuate that the military personnel who have borne the brunt of these wars are greedy, overpaid or self serving is obscene and to imply that they veteran’s organizations that go to bat for the serviceman or women are working against our national security by fighting for military personnel is unconscionable. For the members of this board to suggest that somehow what military personnel receive in compensation is too much and the benefits too generous should look in the mirror.  The retired military members of the Board have not given up their retirement and are all connected with the major defense contractors and financial institutions that would benefit the most from this plan.  Many of the corporate members have been living off of other people’s money and government contracts almost all of their professional lives.  They are the people that pay lobbyists to ensure that they get tax breaks even as they collect every government contract and service that they can take.

I do not know any of the people on the board and many are philanthropists and some donate time and money to organizations that honor the military.  I am not saying that these are bad people. I simply am saying that they represent their interests and those of the corporations that they run or that employ them.  It is what is called “crony capitalism.”

Follow the money my friends follow the money.

Peace

Padre Steve+

Note: All information in this article regarding the members of the committee comes from the Defense Business Board website, the corporate websites of the various organizations that employ them and various business periodicals and publications on the web.  

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Filed under Military, national security, Political Commentary