THE ENTERPRISE
This week's edition returns Economic Week in Review as a bonus feature. Due to a computer glitch between my system and the Vanguard Group, I stopped receiving the reports 3 months ago. The material you read is derived from Vanguard's Economic Week in Review. It may not be included in all future editions of THE ENTERPRISE, but often it provides good perspective on how the overall US economy is doing.
In a late-breaking news item, Maryland appears to be passing a law targeted at large employers and specifically Wal*Mart, requiring that they pay a minimum percentage of payroll in the state for health care insurance. Other than the blatant targeting of Wal*Mart, which I will discuss more in coming weeks as part of a new book I will review (The Wal-Mart Effect, By Charles Fishman, Penguin Press, due out Jan. 23), I can only say one thing about this kind of law.
It reminds me of Ayn Rand's classis book ATLAS SHRUGGED. For those who have not read this classic, I strongly encourage getting a copy and curling up on several wintry nights to read it. It will disturb, perhaps frighten and certainly alarm you. There is similarity to many of today's trends, especially how non-productive special interests seek to subjugate the productive part of society and create an elite (ruling) class that does nothing of value except try to capitalize on the work of others, or stop the productive work of others.
Consider this: who is John Galt, and how does he plan to "stop the world?" IF you have not read ATLAS SHRUGGED, you should, whether you take it "seriously" or not--it'll make you think.
THE YEAR IN REVIEW
2005 is gone, and a lot happened. If you believe that the best predictor of the near term future is the recent past, a review of what happened is probably useful. The media this week was largely focused on the medical condition of Israeli Premier Ariel Sharon. He is still not coming out of the coma, and there are fears that the severe stroke he suffered has caused massive/irreversible damage. His demise will certainly set back the Middle-Eastern progress enjoyed this year. The other media highlights were the Senate hearings on the appointment of Judge Samuel Alito to the Supreme Court, filling the last vacancy on a court which will determine many important matters in our country for decades to come.
--January: The Indian ocean tsunami strikes, reminding us of the incredible power of nature over man, a lesson to be reinforced much closer to home by Hurricane Katrina, later in the year. The Huygens probe lands on Saturn's moon Titan and transmits images to earth. Man still aspires to see what is among the stars, albeit by remote control.
--February: Iraqis vote in remarkable numbers, and an even more impressive show of courage and the desire for self-government of some kind. Howard Dean is elected head of the Democratic National Committee assuring that the next year or two will be filled with extreme statements and partisan political "grenade throwing."
--March: President Bush nominated John Bolton as US Ambassador to the UN amidst much controversy. The UN remains embroiled in a huge scandal Oil for Food, which further tainted the credibility of the UN. The Terry Schiavo case mesmerizes the media and much of the US, raising issues about when life is worth "living" and who gets to decide what "living" means.
--April: Beloved Pope John Paul II dies at age 84 after 26 years at head of the Catholic Church. After an unusually brief conclave, Cardinal Joseph Ratzinger, a strict traditionalist, is elected Pope Benedict XVI. ABC News Anchor Peter Jennings announces on the air that he has lung cancer; he will die in few short months.
--May: UK Prime Minister Tony Blair wins a 3rd term by the slimmest of margins. Suicide bombings in Iraq grow in frequency. Senators attack John Bolton during his interview process, for his past aggressive behaviors. President Bush continues to struggle under the shadow of Iraq's problems, and an insular group of close advisors.
--June: The proposed European constitution is tabled after it is clear that French voters would reject it. Iranian voters elect a hard-line conservative President likely assuring continued tense relations. Pop icon Michael Jackson is acquitted amidst juror comments as to the likelihood of his actual guilt. China grows in economic power and is building military might as well.
--July: Supreme Court Justice Sandra Day O'Connor announces her retirement plans, raising concerns about the ability of President Bush to name two justices, given the illness of Chief Justice Rehnquist. Terrorist bombers strike London's subways, and suicide bombers also strike in Egypt killing 64. A record Atlantic Hurricane season begins, one that will ultimately lead to 26 named storms, including 13 hurricanes.
--August: Israel withdraws from the Gaza strip, after occupying it since 1967. President Bush uses a recess appointment to install John Bolton as UN Ambassador. Cindy Sheehan, mother of a soldier killed in Iraq, sets up outside the Bush ranch in Texas, demanding a meeting with the President. The space shuttle returns safely to Earth, a first since 2003, although astronauts must perform a number of mid-flight repairs to allow that safe return. The Avian flu scare continues to trouble governments around the world.
--September: Chief Justice Rehnquist dies, and judge John Roberts, nominated to fill the Sandra Day O'Connor vacancy is renominated and confirmed as Chief Justice. Hurricane Katrina proves that ignoring the power of nature and hoping disasters won't happen is foolhardy. The local and state officials of New Orleans and Louisiana are ill-prepared to lead during such a crisis. Slow and inept Federal Government/FEMA response enrages victims and astounds the nation, and reflects badly on President Bush, too. The Mississippi River and Gulf ports and chemicals/energy facility damage impacts the entire country.
--October: A Pakistani earthquake kills 70,000, and leaves 3 million homeless. Mud slides bury a Guatemalan village killing tens of thousands. It is the year of tsunami, hurricanes, earthquakes, and natural disasters. President Bush botches the Supreme Court nomination with Harriet Miers (who withdraws in a short time amidst much furor from both parties). Iraqi voters approve a new constitution--proving they want to vote democratically (again).. Gas prices spike to $3+ per gallon.
--November: A new "scandal" is unearthed, involving VP Cheney's Chief of Staff, "Scooter" Libby. Muslim rioting rocks Paris. Suicide bombers hit Jordan. As if natural disasters are not enough, terrorists vicious attacks add to the mayhem. The US economy continues on a strong recovery with millions of new jobs being created in 2005, and in spite of $50+ oil, inflation remains modest. Teaching "intelligent design" in schools is a growing controversy.
--December: Iraqi voters prepare for parliamentory elections, and a better Sunni turnout is hoped for and expected, to balance the Shiite and Kurd dominance or the emerging Iraqi Democracy. A troop reduction is mentioned by the White House, the first definitive statement about slowly withdrawing from Iraq. South Korean stem cell researcher Hwang Woo-suk is exposed as a fraud.
Throughout the year, Americans have been preoccupied with the meaningless exploits and misadventures of celebrities like Tom Cruise, Katie Holmes, Brad Pitt, Angelina Jolie, Jennifer Aniston and others, perhaps as a means of escaping from the harsh realities of the real world. There is little else of social value to the attention devoted to their immoral and often aberrant behavior.
CONCLUSIONS:
The world is more turbulent than ever. Natural disasters and terrorism know no national boundaries. Information travels further and faster than ever--whether it is the truth or a lie. A Federal Democracy may not be the smoothest way to run our country, but it's better than most of the other forms of government for free societies. Political bickering will ebb and flow, and it is probably healthy that it does--as long as it doesn't get out of control--a condition it has approached at times in the recent past. Man still strives to break his earthly bonds, but with only moderate success, but the struggle is a worthy one.
The lack of positive, inspiring (or even respected) leadership in both major political parties is alarming and frightening, as scandals proliferate. The dearth of positive ideas and realistic programs is absolutely stunning. Everything is a matter of obstruction instead of inclusion. The is no doubt that eadership is needed--everywhere, government and corporate life, local and national--and the best leadership is by example. So our lessons for this week are: 1) "don't mess with Mother Nature" and 2) do your part of being a visible leader by example and action--by doing the right things whether someone is watching or not. It is contagious.
Best, John
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