Showing posts with label business. Show all posts
Showing posts with label business. Show all posts

Wednesday, May 20, 2026

Does Size Matter?

     The arguments over political systems, what makes them possible, what undermines them, and so forth are doomed to go on until Man is no more. Some of the most basic ones – the fundamental questions beneath all political discourse – arise from considerations of size: How large or small should a political unit be to attain stability?

     The arguments over whether to tolerate “globalization,” and to what extent, are part of this. Commercial currents that flow above political units confound many people’s notions. Businesses that operate internationally seem to flout some of our political aspirations. Or perhaps it’s that they flout the aspirations of politicians; that’s equally likely.

     I’ve long held that bigness in business requires bigness of governments. There may be exceptions, but they would be cases where truly huge amounts of capital and labor are required to pursue such enterprises. However, when power-wielders turn their voracious attentions to business, it’s the biggest players that they go after first. Also, really big businesses tend to need more competition than the marketplace will naturally provide them; Alfred Sloan recognized that when he arranged for the divisions within General Motors to compete against one another. All this suggests that bigness, even if it confers an advantage in certain fields, comes with compensating disadvantages that limit its value.

     Many of the dynamics that characterize businesses in competition also apply to political units – governments. But governments are loath to admit it. The European Union came into existence mainly because of politicians’ desires to rule a nation larger than their homelands, a nation that could compete politically and economically with the United States. American politicians, analysts, and influential commentators encouraged it for reasons of their own, some of which are unclear to me.

     Large or small? World-girdling or localized? What are the advantages and disadvantages of each? The questions are pressed in many fora. But answers are slow to appear.

     The following first appeared here on May 14, 2020.


     Wes Rhinier at NC Renegade has penned a short piece about what he foresees for America. His expectations are bleak. In particular, he’s troubled by the many plaintive calls for “a leader” for “the coming civil war.” Here’s the part that plucked at my fiddlestrings:

     We are all too divided. We all have our own ideas. It’s always been a problem in this liberty movement.

     I think a Balkanization is more likely to happen. Or maybe small confederations happen.

     For me, this called to mind the conclusion of Poul Anderson’s Hugo-winning novella “No Truce With Kings.” It concerns the efforts of an alien race to engineer a specific sociopolitical outcome for Man on Earth…by subterfuge and the use of alien technology to promote one faction in a distributed, multi-participant war over the others:

     “You wanted to re-establish the centralized state, didn’t you? Did you ever stop to think that maybe feudalism is what suits Man? Some one place to call our own, and belong to, and be part of; a community with traditions and honor; a chance for the individual to make decisions that count; a bulwark for liberty against the central overlords, who’ll always want more and more power; a thousand different ways to live. We’ve always built supercountries, here on Earth, and we’ve always knocked them apart again. I think maybe the whole idea is wrong. And maybe this time we’ll try something better. Why not a world of little states, too well rooted to dissolve in a nation, too small to do much harm—slowly rising above petty jealousies and spite, but keeping their identities—a thousand separate approaches to our problems. Maybe then we can solve a few of them…for ourselves!”

     The idea of federalism was an attempt to harmonize the large nation – by virtue of its size capable of standing against other, more rapacious nations – with the small community of independent identity. Federalism proposed a way of having many small, largely autonomous regions within a central structure with sharply limited powers that would defend all of them against invasion. But governments always suck power from smaller units toward larger ones, and from peripheral loci toward central ones. We might not have known about that dynamic two and a half centuries ago – we didn’t have that many examples of it to study back then – but we have no excuse for not knowing about it now.

     However, there’s more than one view about these things. Here’s another angle, from Tom Kratman’s very best novel:

     “Do you know why we band together into nations, girl?”
     The question seemed so totally out of the blue that Maricel didn’t really even comprehend it. She shook her head, a gesture that meant, in this case, I don’t understand.
     Aida took it wrongly, assuming the girl meant she didn’t know why. She answered the question herself. Pointing towards the flames, she said, “We band into nations for just that reason. In the real world, little tribes like TCS are destroyed. They can’t compete against determined bands of raiders. It takes more power than that to defend yourself against people like yourself, people with no law above themselves.”
     Ah, now Maricel understood the question. She wasn’t sure she understood the answer and, given that she was going to die, the answer didn’t really matter anyway.
     “It’s the flaw in some utopian schemes,” the woman continued. She looked at Maricel’s uncomprehending face and said, “You don’t understand that word, do you?”
     “No.” Sniffle. Just get on with it, will you?
     “Never mind; here’s the truth, a truth I’ve been trying to find for the last . . . well, for the last good long while. People band into nations, real nations—not travesties like TCS, gangs that fancy themselves nations—to defend themselves. It requires an emotional commitment. The limits of nations are not how far their borders can reach, but how far their hearts can. People with tiny hearts, people like TCS, can never reach very far, can never gather enough similar hearts together to defend themselves. Only real people, and real countries or causes, can do that. That’s why TCS is going to die tonight.”

     [Tom Kratman, Countdown: H Hour]

     Perhaps the question is multivariate, in which case the answers will be multivariate as well. At the very least, it’s not simply What do we seek for ourselves and how can we get it? but Are we able to do what it will take and endure what we must to remain that way? That all sociopolitical arrangements are inherently unstable doesn’t mean that all are equally desirable.

     Freedom is not the only good people seek from their political alignments and arrangements, as we should all know far too well. They also seek prosperity for themselves and their families, and security against threats, both actual and potential. And some – there will always be some – have a vision of “the good” that requires others to bend their knees and their necks:

     One female (most were men, but women made up for it in silliness) had a long list she wanted made permanent laws—about private matters. No more plural marriage of any sort. No divorces. No “fornication”—had to look that one up. No drinks stronger than 4% beer. Church services only on Saturdays and all else to stop that day. (Air and temperature and pressure engineering, lady? Phones and capsules?) A long list of drugs to be prohibited and a shorter list dispensed only by licensed physicians. (What is a “licensed physician”? Healer I go to has a sign reading “practical doctor”—makes book on side, which is why I go to him. Look, lady, aren’t any medical schools in Luna!) (Then, I mean.) She even wanted to make gambling illegal. If a Loonie couldn’t roll double or nothing, he would go to a shop that would, even if dice were loaded.
     Thing that got me was not her list of things she hated, since she was obviously crazy as a Cyborg, but fact that always somebody agreed with her prohibitions. Must be a yearning deep in human heart to stop other people from doing as they please. Rules, laws—always for other fellow. A murky part of us, something we had before we came down out of trees, and failed to shuck when we stood up. Because not one of those people said: “Please pass this so that I won’t be able to do something I know I should stop.” Nyet, tovarishchee, was always something they hated to see neighbors doing. Stop them “for their own good”—not because speaker claimed to be harmed by it.

     [Robert A. Heinlein, The Moon Is a Harsh Mistress]

     Are Anderson’s mini-states impossible by Kratman’s logic? Or are Kratman’s larger nations doomed to deteriorate into tyrannies owing to the dynamic of power-seeking as Anderson has pinned it? And what about the people – “crazy as a Cyborg” or otherwise – who insist that the State compel others to bend to their preferences?


     The questions are inclusive and eternal. The answers are idiosyncratic and fleeting. The arguments never cease.

     And some of us just want to be left alone.

     “Politics and business… I don’t pay them no mind.” (Jesse Colin Young, The Wine Song)

Tuesday, November 19, 2019

Business Models And #Woke: Corporate Charity

     There are few things less rational than the prioritization of irrelevancies – social, political, or otherwise – in the operation of a business. A business that tolerates the inclusion of non-business priorities in its decision making is dancing barefoot at the edge of a blazing fire. Non-business priorities have a terrible tendency to eclipse business priorities, such that the whole point of creating and running a business – that’s to make money, for those who haven’t tried it – is lost. This has been demonstrated many times by the #Woke phenomenon.

     Mind you, few publicly traded companies in America haven’t done the very thing I’m railing against. Pick up the stock-market pages of your preferred publication, randomly select a company from the listings, and the odds will be 99 to 1 that the selected company has included one or more non-business priorities among its regular practices, and has trumpeted it in an attempt “to burnish the company’s image.”

     But what can a company buy with its “image?” I don’t know of any market where the goods are priced in that particular coinage. I would question the sanity of any executive who pursued “image” in preference over profit...yet huge numbers of them do that very thing.

     The most common form of this commercial sin is corporate charity. Virtually all the companies traded on the New York Stock Exchange practice it. So do most of those on the NASDAQ system. To me it looks like a crime against the stockholders: the folks who’ve invested in the company and have a legal expectation of dividends from its profits.

     Far too many CEOs prefer to give from the corporation’s coffers, their rationale being that it helps to “burnish the company’s image.” In these latter years of the Republic, that invites all manner of challenges from those who are unsatisfied with the company’s dividends, or who differ with the company’s charitable choices. These days a lot of the flak originates from activist groups rather than from the stockholders.

     The moral case against charity by a publicly traded company is absolute. The practical case against charity by a privately held company is equally strong...by which route we come to the news about Chick-fil-A:

     LONDON (Thomson Reuters Foundation) – U.S. fast-food chain Chick-fil-A said on Monday it had stopped funding two Christian organizations, including The Salvation Army, that have come under fire from LGBT+ campaigners.

     The fast-food chain’s charitable arm, Chick-fil-A Foundation, donated millions of dollars over a period of years to The Salvation Army and to the Fellowship of Christian Athletes (FCA), which opposes same-sex marriage.

     Chick-fil-A said on Monday it no longer funded these organizations and would instead focus its giving on “education, homelessness and hunger”.

     “We made multi-year commitments to both organizations and we fulfilled those obligations in 2018,” a spokeswoman for Chick-fil-A told the Thomson Reuters Foundation.

     The family-owned company said in statement that it would no longer make multi-year commitments and would focus on partnerships annually to “allow maximum impact”, which could include faith-based and non-faith-based charities.

     That LGBT activists have railed against Chick-fil-A for its charities – and for its founder’s convictions about same-sex marriage – is not news. They’ve been at it since the restaurant chain became generally known. It’s part of their sociopolitical and cultural strategy that no one who disagrees with their stances, however insane those stances may be, is permitted to go unscathed. Remember what happened to Sweet Cakes by Melissa, to Memories Pizza, and to Brendan Eich, formerly the CEO of Mozilla.

     The great irony here is that what a company’s management does with the company’s profits has absolutely no bearing on the quality or efficiency of the people who do 99% of the company’s work. It certainly has no bearing on what the line employees do with their bodies, property, or spare time. Yet activist groups’ favorite tactic, the heavily publicized boycott, does far more injury to the line employee, the guy who spends eight hours per day making sandwiches for customers, than to the CEO and his direct subordinates, who make the decisions about the company’s charitable giving.

     If I were a corporate CEO, and had charitable impulses to satisfy, I’d give out of my own pocket. If my company were publicly traded, the company’s stockholders would be unable to accuse me of spending their money on my notions of good works. But even if my company were my personal property, my charitable choices might still be attacked by activist groups. The earnings and well-being of my employees would probably take most of the damage...if I were vain enough to let my giving be made public.

     But if I were to follow the advice of a certain Jesus of Nazareth:

     Take heed that ye do not your alms before men, to be seen of them: otherwise ye have no reward of your Father which is in heaven. Therefore when thou doest thine alms, do not sound a trumpet before thee, as the hypocrites do in the synagogues and in the streets, that they may have glory of men. Verily I say unto you, They have their reward. But when thou doest alms, let not thy left hand know what thy right hand doeth: That thine alms may be in secret: and thy Father which seeth in secret himself shall reward thee openly. [Matthew 6:1-4]

     ...my charitable giving would be unknown to anyone, including the beneficiary organizations. No one would know that I had done it, nor to whom my gifts had gone. I would be immune from the attacks of activists, as would those who work for my company.

     This is not a reproach of Chick-fil-A or its owners. The company has earned its customers’ respect. Its owners’ hearts are definitely in the right place. But they would have been better advised to separate their charities from their commercial enterprise, and to keep their giving entirely private insofar as that’s possible. No one can target what he knows nothing about.

     To the real-life CEOs out there: You will be targeted by charitable organizations, which will importune you for contributions. If you permit them access to you as the CEO of your company, you will regret it. Chick-fil-A is already regretting it. Even if you permit them to approach you as an individual, there are dangers – and not just to you, but to your employees. The only way to avoid the assaults of the #Woke crows is to do your own research into worthy charities, choose one or more of them, and donate to them anonymously. Don’t imagine you have a need to dress up your “image,” or that of your company. It’s a phantasm and always has been.

     Concentrate on putting out an excellent product and making money.

Monday, July 1, 2019

Quickies: The “Snowflake Test”

1. Outside of standard benefits, what benefits should a company offer employees?
2. What should the national minimum wage be?
3. How many sick days should be given to employees?
4. How often should employees get raises?
5. How do you feel about guns?
6. What are your feelings about employees or clients carrying guns?
7. What are your feelings about safe spaces in challenging work environments?
8. In a creative environment like The Silent Partner Marketing, what do you envision work attire looking like?
9. Should “trigger warnings” be issued before we release content for clients or the company that might be considered “controversial”?
10. How do you feel about police?
11. If you owned the company and were to find out that a client is operating unethically but was a high paying client…how would you handle it?
12. When was the last time you cried and why?
13. You arrive at an event for work and there’s a major celebrity you’ve always wanted to meet. What happens next?
14. What’s your favorite kind of adult beverage?
15. What’s the best way to communicate with clients?
16. What’s your favorite thing to do in your free time?
17. What are your thoughts on the current college environment as it pertains to a future workforce?
18. What’s your typical breakfast?
19. What’s your favorite drink when you go to a coffeehouse?
20. How do you handle bullies?
21. How do you handle it when your ideas are shot down?
22. What do you do if a coworker comes to the table with an idea and it sucks?
23. What does the first amendment mean to you?
24. What does faith mean to you?
25. Who is your role model and why?
26. "You're in Starbucks with two friends. Someone runs in and says someone is coming in with a gun in 15 seconds to shoot patrons. They offer you a gun. Do you take it? What do you do next?"
27. What does America mean to you?
28. You see someone stepping on an American flag. What do you do?
29. What does “privilege” mean to you?
30. What’s more important? Book smarts or street smarts? Why?

     Kyle Reyes, the CEO of Silent Partner Marketing, composed the above test to weed out employment applicants who wouldn’t be a good fit to his company’s culture, work atmosphere, and clientele. As he puts it, a Silent Partner employee won’t find any “safe spaces” to which to flee when he encounters something that makes him uneasy, so an applicant who believes himself entitled to such “protection” would be a bad bet.

     I find this stance admirable. However, in his interview with Fox Business’s Lisa “Kennedy” Montgomery, Reyes also said that most of the questions on the test don’t have a “right answer.” That’s a mite troubling. Who scores them? How does he decide who “passes” and who “fails?” Such considerations are at least as important as the resolve required to confront applicants with such a test. (And may God help Silent Partner if it should ever unknowingly entrust those decisions to a “covert snowflake.”)

     But it tickles me that Reyes’s test has been solicited by a whole lot of other corporate executives...many of whom have said they need to figure out how to use it without getting in trouble themselves!