EntrepreneuringForChristClass Presents: Observing “Wizard of OZ” Leadership Styles in our Current U. S. Economy Week 2 http://www.youtube.com/watch?NR=1&v=mzO-E0zHm5I&feature=fvwp By Skip Elmore
Remember? “The Wonderful Wizard of Oz” by Frank Baum was originally written as a subtle portrait of the economic depression in the country as it prepared to enter the 20th century. The author, a student of history, had considerable knowledge about the booming economy in the early colonies. The author promoted Populism in the OZ allegory. 3 solutions were being politically debated: 1 - Bimetallism: Gold, or Silver backed currency. 2 - Greenback philosophy: Govt. prints new money. 3 - PrivateBanking cartel: Creates money, loans to the government, collects principal & interest. What was Frank Baum’s major concern??? “Fractional Reserves” Why? Remember them? Should they be allowed? Are they totally wrong?
Frank Baum knew American history. Ben Franklin, a self taught genius, was called the Father of paper money. When England’s economy was desperately struggling, directors of the Bank of England asked Franklin to explain what was responsible for the booming economy in the young American colonies. He was reported to have replied: “In the colonies we issue our own money called Scrip to pay approved government expenses. We make sure it is issued in proper proportions to allow goods to pass easily from producers to consumers. In this manner we are then able to clear for ourselves our own paper money. We control it's purchasing power, and we have no expense or interest to pay as taxes for running our government. Ben continued, “You see, a legitimate government can both spend and lend money into circulation, while banks can only lend proportionate amounts of their promissory notes, for they can neither give away nor spend but a tiny fraction of the money the people spend. Thus, when your bankers here in England place money in circulation, there is always a principal debt to be returned to the bank of England with accumulated interest. The result is that you can’t keep up. You continually have too little credit in circulation to stimulate full employment. You do not have too many workers, you have too little currency in circulation and that will always cause the endless burden of unpayable debt and interest.” Federal income taxes came in the 20th Century; Ben did not need then.
Let’s review“Fractional Reserves”again: Trade in 17th Century Europe was conducted primarily with heavy gold and silver coins. Transporting and theft challenges promoted depositing the holdings in the vaults of their local goldsmith’s and accepting convenient paper receipts that could be traded in place of the bulky bags of coins. These receipts began to be used when people came to the goldsmiths for loans. Goldsmiths became the bankers!!! The mischief began when they noticed that only about 10 to 20 % of the receipts ever came back to be redeemed in solid gold or silver at any one time. They realized they could “Lend” the gold in their vaults at interest way beyond the actual holdings as long as they Kept 10 to 20 % of the value of their outstanding loans in gold to meet demands. They had created “paper money” receipts for loans of gold worth several times what they actually held, thus - “Fractional Reserves” evolved!!!
Thomas Jefferson said in 1802 “I believe banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around the banks will deprive the people of all property - until their children wake-up homeless on the continent their fathers conquered.”
Let’s Define our NEEDS: What’s missing for real economic prosperity? Is it Labor? – No, Americans will work. Is it entrepreneurs? No, Americans will risk. Is it manufacturers? No – Americans produce. Is it a stable financial base – Yes, Yes, Yes!!! Resources + labor - OuronlyeconomicvaluesNot Gold or Silver!!! Our economy needs currency to flow from a base that doesn’t allow regulators to privately consume it disproportionately to their efforts. Greed becomes the problem!!!
Are Fractional Reserves the correct way to expand the currency base??? As the economy in a population grows, the money base must grow with it. How??? Bimetallism has challenges. Why? PrivateBankers are challenging. Why? (Lincoln funded the Civil War with 500 million Greenbacks) If controlled properly, can a government (Greenback) agency create wealth & fund its functions, thus eliminating income tax? The private sector would be emancipated from many of the present tax burdens.
Fractional Reserves - taken to Court:First National Bank vs. Daily In a 1964 court drama worthy of a movie script, Jerome Daily opposed the foreclosure on his $14,000 mortgage on the grounds that there was no “consideration” (tangible value in exchange for his loan). Daily, representing himself, argued that the bank provided no real collateral supporting his loan. Courtroom proceedings were very tense. Associate Justice Bill Drexler gave little credence to Daily’s theory until the bank’s president, Mr. Morgan, admitted they routinely created money out of thin air. The plaintiff admitted that, in combination with the Federal Reserve Bank of Minneapolis, they created the entire $14,000 as a bookkeeping entry and that was the only “consideration” supporting the mortgage. Morgan admitted that no U. S. law or Statute existed giving the right to do this and that a lawful consideration must exist and be tendered to support creating a note.
Fractional Reserves - taken to Court:First National Bank vs. Dailycontinued Chief justice Martin Mahoney said: “This sounds like fraud.” The court rejected the bank’s foreclosure claim and Daily kept his home. Implications were enormous. If bankers were extending credit without consideration, a decision declaring their loans null and void could topple the world’s banks. The decision had the potential of declaring mortgages and bonds held by the Federal Reserve and National and State banks to be null and void. This would mean emancipation of this Nation from personal, national and state debt. Justice Martin Mahoney died six months later from an accident involving poison. Needless to say, the Daily decision failed to bring change to anything and Congress later passed laws allowing banks to loan up to 7 times their holdings. Every American needs to study this decision carefully. Upon it hangs the question of Freedom or Slavery for our children.
10 possible solutions for Fractional Reserves:My opinions by Skip Elmore Common sense is genius dressed in work clothes!!! Ralph Waldo Emerson 1 - Congressional, state & local candidates can only receive individual contributions from within the state or voting district in which they run. 2 - Federal candidates receive contributions from U.S. resident citizens. (No foreign or Corp $s). 3 - All contributions to be received through independent monitored clearing houses. 4 - Penalties for violations would be so severe that no one would venture outside the rules. 5 - U.S. fiscal policy - A balanced budget amendment and balance within 5 years.
10 possible solution for Fractional Reserves:(My Opinions continued By Skip Elmore) 6 - Fed. Reserve becomes non-profit Congressional currency distribution agency only; all accounting procedures reformatted for efficient audits. Bank foreclosures would fund legitimate buyouts; prison terms would be in order for many. 7 - Annual FRBS & related audits conducted by 3 independent sources simultaneously. 8 - Tort reform - Losers pay all in court litigation expenses. 9 - The Freedom of information act would be enforced with easy access. 10-All special assignment (czars & agencies) would be confirmed by a 2/3 vote, both houses Politicians want everything to appear complicated.
Let’s review againBaum’s symbolic representation: http://www.youtube.com/watch?v=THbY7EL8k5w&feature=fvwrel The Yellow Brick Road represented the Gold Standard. Dorothy’s Slippers, originally silver, not MGM’s ruby red, represented the Silver Standard. (Ruby red was MGM wanting to illustrate new Technicolor) Innocent Dorothy symbolized Baum's Miss Everyone, common people of the country. The Scarecrow symbolized the economicallychallengedfarmers. The Tin Man symbolized the unemployed industrial factory laborers. The Cowardly Lion symbolized William Jennings Bryan, the Democratic presidential nominee for the 1896 election year. The city of OZ from the word “ounce” symbolized Washington D.C. The Wizard symbolized the current President, Grover Cleveland, who sided with the Wall Street & Morgan bankers during a march on Washington D.C. The WickedWitch of the East symbolized the Wall Street, Morgan faction. The GoodWitchoftheNorth symbolized a Faith Based Heritage of the Midwest and northern regions at the time, a Populist stronghold. The WickedWitch of the Westsymbolized the McKinley - Rockefeller-backed contingent from Ohio. TheGoodWitchoftheSouth, Glindasymbolizedthe way to get the country back. (There were several other symbolic characters in the allegory.)
Let’s Review the leadership styles we have observed. http://www.youtube.com/watch?v=ky7DMCHQJZY The Wicked Witches – Motivated others with Fear and intimidation. Her Cronies celebrated her departure. The Cowardly Lion – Motivated others by Role playing scare tactics. False substance with no real answers. The Tin Man & Scarecrow – Motivated others by appealing for Sympathy. No self worth or awareness of influence. The Wizard - Motivated others by Role playing a Facade. Manipulative. The Good Witches– Motivated others with kind encouragement. No fear of the enemy. Dorothy – Motivated others by projecting a Vision.Did not pretend to have all the answers, but maintained a loyal following because she was just as concerned for the needs of others as she was for her desire to return to Kansas.
The allegory of OZ http://www.youtube.com/watch?v=ky7DMCHQJZY The populist believed the silver standard would solve the economic dilemma of the farmers and take people out of their deep depression. The silver slippers symbolized magical powers that would take Dorothy back to Kansas. Dorothy (Good people in the land) does not realize the magical power she possesses. The shoes are lost when she finally finds herself back in her Kansas farm home. When Dorothy and her friends return to the Wizard of Oz with the Wicked Witch’s broom, proving her demise, he is exposed as a manipulator with no magical power. The fearsome Wizard turns out to be nothing more than a fraud, capable of clever but mundane answers to solve self-induced needs. Like any good politician he made people think he was going to give them what they wanted.
The allegory of OZ William Jennings Bryan, the Democratic nominee for president in 1896, was endorsed by the Populist Party as a Greenback supporter, to solve the nations’ problems, thus the political posturing of the Cowardly Lion. When the lion first meets Dorothy and her other companions,he strikes the Tin Man but does not make a dent in his metal body. This equates the Cowardly Lion's futile act as a parallel to Bryan's failure to win the vote of industrial labor. Together the group journeys to Oz to visit the great Wizard who symbolizes president Grover Cleveland. Their trek is reminiscent of the march on Washington D.C. in the winter of 1893-1894.
The allegory of OZ Jacob Coxey, a populist, organized a group of unemployed workers to march on the nation’s capital (follow the yellow brick road) in an effort to convince government to put more money in circulation for works programs to put people back to work. "Coxey's Army”, while modest in size, did a number of protests and brought the unemployed plight to national attention. With the decline of the Populist Party, the free coinage of silver also faded as a national issue. Coxey, very young at the time, later ran for president against F. D R. in 1932 and claimed the Greenback money printing scheme was his and the foundation for the “New Deal”.
The allegory of OZ Changes made by MGM in the movie blunt the cynicism about the self-serving nature of politicians that was very obvious in the original story. In order for Dorothy’s little team to get what they desired, the Wizard tells them to kill the Wicked Witch of the West who represents the crippled economy caused by the forces of nature along with the McKinley-Rockefeller contingent and conniving politicians who manipulate the markets and milk whatever is left of the economy. The Wicked Witch of the West takes her toll in the story before Dorothy kills her by dousing her with a bucket of water, symbolizing the end of the drought that had been plaguing the West during the desperate 1890s.
Observing again the symbolic allegory from this novel and later, a famous movie.“The Wonderful Wizard of Oz” We observe 3 prevalent types of leadership: 1 - Absolute authority – The General / Admiral / King types. 2 - Charismatic – High profile persuader - One person show. 3 - The Poet-Gardner – A team mentor with mutual vision. The typical stereotype U. S. leadership style observed throughout the 19th and most of the 20th century was gradually fading into oblivion as a more informed society was gaining access to worldwide communications and more rapid global transportation. Exposed leadership behavior spawned a gradual distrust and resistance to absolute authority. Philosophical changes in society gradually allowed greed and complicated manipulations by political influence. Simplicity and common sense were subdued by the elite.
Once again, how do faith based people respondto misguided Leadership? Bad government is the symptom, not the problem!!! 1st Timothy 2: 1-5, Instructions for Worship to God for others I urge, then, first, that petitions, prayers, intercession and thanksgiving be made for all people, 2 forkings and those in authority, that we may live peaceful lives in all godliness and holiness. 3 This is good, and pleases God our Savior, 4 who wants all people to be saved and to come to a knowledge (wisdom)of the truth. 5 For there is one God and one mediator between God and mankind, the Man, ChristJesus, “Christ”-The Title assigned to the Spirit of God’s Creative Agent. “Jesus”-The Name given the Personification of that sameSpirit. “OurAuthority”- To all who host the sameSpirit & vote its wisdom. We reap the harvest of corporate choices. Another reason why evangelism is important.
An allegory for the OZ of today The Wizard of Oz managed to provide everyone in the group with something to satisfy their desire. Everyone except Dorothy that is, because her goal is returning to Kansas, which Baum describes as a dull and gray place. Even with all the destructiveness we see, a very stabilizing force may still remain with us in America. The basically ethical and moral foundation of our country, founded on Biblical principles, may not yet have lost its flavor. Can thatGood Witch of the East come through one more time?????? Dorothy never saw herself as a leader; she never acted like one either, so why was she the most productive leader in the group???
Let’s take a look at our needs today Dorothy had so invested in her fantasy friends, the Tin Man, the Lion and the Scarecrow that they were motivated to help her get to OZ even if they didn’t get their desperate needs fulfilled. QUALITY TEAMEFFORT: No one tries to be the Star Each one supports the others with humility Each has certain gifts, skills and abilities They are comfortable not having all the answers at first Dorothy simply ran point with their mutual vision Traditional leaders are perceived to know, then “tell.” Successful leaders will build teams with vision, talents, skills and Spiritual gifts, then “ask.”
Quality Leadership attributes:___________________________________________________________________________________________________________________________________________________________ 1. Highly relational and patient. 2. Interprets culture well, not judgmental. 3. Emotionally secure (EQ vs. IQ). 4. Shares ownership freely, does not crave recognition. 5. Empowers others by defining vision, not authority. 6. Comfortable with uncertainty, subdues fear well. 7. Listens and fosters self discovery and value in others. 8. Embraces the role of mentor, teaching gifts & talents. 9. Less formal in structure. 10. Driven more by servanthood than by ego. 11. Models humility by knowing the source of providence. 12. Consistent behavioral stability. 13. Not a slave to tradition. 14 Sees beyond current paradigms.
Quality Leadership attributes: SPECIAL TALENTS, UNIQUE ABILITIES AND SPIRITUAL GIFTS DO NOT NECESSARILY IMPLY LEADERSHIP CHARACTERSTCS. Many times they do not. Servanthood can be classified as a type of leadership. Leadership can be classified as a type of servanthood. Are they always??? Should they be??? Can leadership be called an attitude?
Quality Leadership attributes: To be a quality leader we must know how to follow. While all followers will not become good leaders, always look for good followers when seeking out leaders. What type of leader was Jesus? HOW DID JESUS MODEL? Name typical leadership styles Jesus employed. John 8:28 So Jesus said, “When you have lifted up the Son of Man, then you will know that I am He and that I do nothing on My own but speak just what the Father has taught Me.(Wisdom available to us when we host Christ’s Spirit) Questions and examples: How did Jesus keep his cool when confronting SIN? 1. Knowing the real source of the hurt needs. 2. Confronting with gentle questions rather then convicting finger pointing accusations.