FRANCISCANOMICSIndiana YMCAs Executive Conference May 5, 2001
Paul Volcker“The U.S., along with the rest of the world, is in the midst of a great recession.”
“Top economists wary of declaring recession over”Headline / San Francisco Chronicle / 04.13.10
“The Recession Is OVER, SaysEconomic Panel.” Associated Press September 20, 2010
“LABOR MARKET STILL SOFT AS JOBLESS CLAIMS RISE”–NEWSROOM AMERICA, 01/27/11
“This report is a clear warning thatthe recovery is very weak. ” —Dean Baker, Center for Economic and Policy Research
QUESTION: Is this the worst economysince the Great Depression?
Prime Rate20% April 2, 1980 Source: www.wsjprimerate.us
COMPANIES COULDNOT AFFORD TOBORROW MONEY TOOPERATE THEIRFACTORIES.SUPPLY DRIED UP.AS A RESULT, THEINFLATION RATE ATTHE TIME WAS 14.5PERCENT.
“Are you better off today than you were four years ago?” Ronald Reagan
Reagan Carter Landslide!Source: www.uselectionatlas.org
col·lapse [kuh laps] –noun. A sudden and complete failure; a breakdown.
“You will be confronted with questions every day that test your morals. Think carefully, and for your sake, do the right thing, not the easy thing.” Commencement Speaker St. Anselm College, 2002
“Ex-Tyco ChiefExecutive KozlowskiSentenced to 8 to 25 Years” Headline / Bloomberg.com / 09.19.2005
Strong Fundamental Values“We must demand of ourselvesand of each other the higheststandards of individual andcorporate integrity. We safeguardcompany assets. We comply withall company policies and laws.”Source: The Tyco Guide to Ethical Conduct
Regency mahogany bookcase, c. 1810, $105,000 “We safeguard George I walnut tallcase clock, $113,750company assets.” Custom queen bed skirt, $4,995 Ascherberg grand piano, c. 1895, $77,000 Chandelier, Painted Iron, c. 1930, $32,500 Pair of Italian armchairs, c. 1780, $64,278 Persian rug, 20 feet by 14 feet, $191,250
“In corporateAmerica, crimepays. Handsomely.Grotesquely, even.”Arianna HuffingtonPigs at the Trough
ENHE RO W N LE ME TT R -P RIL a slippery slope AC L KA LY RD NC CI H J TI .P. GR M OU OR P GA IM N CL W ON OR E LD GR CO OU M P GO BA L NK DM OF AN AM SAC ER H S IC A
Bad Judgment? Just days after receiving an $85 billion taxpayer- funded loan, AIG spent $440,000 to pamper executives for an entire week at the extravagant St. Regis Resort.
Photo by Win McNamee/Getty Images“I would like my life back.” Tony Hayward, former BP CEO
“The best year in safetyperformance in our company’s history.” Transocean Ltd.
“Exxon Mobil 1QNet Soars 69% OnHigher Oil Prices” The Wall Street Journal April 28, 2011
Corporate >> FEUDALISM
49 PERCENT Less than half of all U.S. employees trust their senior leaders.Source: Watson Wyatt
a RECESSION HEARTOF THE
TRICKLE-DOWN THEORYWhen governmentallows businesses toflourish, their resultingprofits will ultimatelytrickle down to lower-income individuals.Aghion, P., & Bolton, P. (1997). A theory oftrickle-down growth and development. Reviewof Economic Studies, 64(219), 151-172.
Ripple Out vs.Trickle Down
a case study
“And standing therebareheaded in thesun, apologizing tothe beggar, thestrangest thoughtflashed across hismind. He and thispoor man werebrothers.”Sara MaynardPrincess Poverty
“Francis, go and repairmy church, which, as you see, is falling into ruins.”SOURCE: Edmund O’Gorman, St. Francis for Today
Stones and mortar?
Fix the recession!
Stocks and bonds?
If a few leaders can cast suspicionon the integrity of an entire nation...
...then why can’t some morally strong leaders restore the public’s faith that people are generally good?
“But wait. We’re not saints.”
“Furloughs Hit the White- Collar Set”Headline / Wall Street Journal / 02.24.2009
Facing $38 million in budget cuts,school officials chose to furlough every employee for five days.
Faculty and staff raisedover $70,000 to helpreimburse 158 lower-wageco-workers for lost incomeduring the furloughs.
“And last but not least, we wish to thank our loyalemployees. Without them...” —Final paragraph of most annual reports
“I prefer to live in a world where this is ordinary.” Leonard Abess
“Was thinking that if each of ushelped just 1 person find a job,we could start making a dent in unemployment. You game?” Mark Stelzner
In the first year, over 40,000Job Angels started helping people find jobs.
RANDOMacts of kindness
“At its most rapacious, greedtrumps rationality, judgment,perspective, and any concernwith the collateral damage itmay cost.”Tony Schwartz
‘I was naïve to believe that banksand borrowers were held to thesame laws. I know better now. ’ Lisa Epstein www.foreclosurehamlet.org
HUD reports that there are nearly 650,000 homeless people in thecountry on any given day.
“...other places not meant for human habitation.”
PETERSAMUELSON“I had to do something about the ladyliving in a refrigerator box near where Isleep in a house with a refrigerator.”
“This is a modest way to make a difference in people’s lives.” Peter Samuelson Photo: Nick Stern Photo: Nick SternPhoto: Nick Stern Photos: Nick Stern Photo: Nick Stern Photo: Joe Ravetz Photo: EDAR
“It’s not morally acceptable tolet people remain in miserable circumstances, if you aren’t offering alternatives.” Peter Samuelson
FACT:On an average day, more than 60,000adults and children seek refuge fromabusive relationships. Nearly 5,000 requestsfor emergency shelter or transitional housinggo unmet every day. National Network to End Domestic Violence
“For many years I had novoice. Well, I’ve found it now.” Celena Roby
Do YOU know what it means to be hungry?
the h word
1 in 6Americans is food insecure, including a quarter of the country’s children. -USDA
AnANGEL in Queens
• 15 pounds of pasta• 22 pounds of rice• 60 pounds of chicken• 10 pounds of frozen vegetables• 10 pounds of onions• 10 pounds of peppers
The Wolf of Gubbio
“ THE EARLY FRANCISCANS, WITH THEIR PASSIONATE SYMPATHY FOR THE SUFFERING ANDThe Catholic World October 1903 OPPRESSED, LARGELY CONTRIBUTED TO THE FINAL DISAPPEARANCE OF CORRUPT FEUDALISM.”
“A little man maydo a great deal of harm; and pray, why not a little man do a great deal of good?” Cotton Mather, 1825 Essays to Do Good
FranciscanomicsYou might not become a saint—or get the publicity afforded today’s notorious business scoundrels.
But you’ll succeed in proving that there are stillHONORABLE PEOPLE in the world today.
FRANCISCANOMICSIndiana YMCAs Executive Conference May 5, 2001