JANUARY
15, 2006 --
LPR
was interested to see a variation of the opening sentence of
Federalist No. 57 in the sub-head for the lead story in The
New York Sun, January 12.
As LPR has noted many times, Federalist 57 opens with a warning about people
intent on the "ambitious sacrifice of the many to the aggrandizement of
the few."
The New York Sun sub-head included a phrase from a report of the Manhattan
Institute referring to New York state government as "an 'Industry Run
For the Benefit of the Few'."
The Sun article, by Jacob Gershman, concluded with another quote from the institute's
report indicating that legislators in New York might "'not be responsive
to their constituents' concerns.'"
This calls to mind the statement in Federalist 57 indicating that tyranny happens
when leaders are distant from the people.
Federalist 57, attributed to James Madison, expressed confidence in the American
people's commitment to liberty.
A century later, James Bryce, in "The American Commonwealth," wrote
that the American faith in, and love of, equality are too deep to permit "a
new structure of society" based on "an aristocracy of rich families."
Politicians and business leaders would be wise to consider that the dedication
of the American people to liberty and equality is no less today than it was
in Madison's time, in Bryce's time.
If the Manhattan Institute's report suggests reaffirmation of the concern stated
in the opening sentence of Federalist 57, a column in The New York Times, January
14, by Joseph Nocera points to reaffirmation of Lord Bryce's observation that
economic changes will not affect America's political system.
Mr. Nocera, writing about new rules by the Securities and Exchange Commission,
on disclosing compensation for corporate executives, pulled no punches.
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Mr.
Nocera reported that disclosure of, in his words, "obscene
grants of stock options" will be required, in addition to "information
about outsize salaries and bonuses."
Mr. Nocera also criticized "absurd perquisites" received by executives,
including, now, 'the practice of having the companies pay the boss's taxes." The
new SEC chairman, former congressman Christopher Cox is credited, by Mr. Nocera,
for the wider-ranging disclosure rules.
Mr. Nocera went on to describe "executive pay" as "out of control,
socially corrosive and divorced from any real rationale...." Indicating
that "the most single intractable problem in corporate America" is "executive
greed."
(Compare Thomas Wolfe at the conclusion of "You Can't Go Home Again" --
I think the enemy is single selfishness and compulsive greed.")
Mr. Nocera concluded his column by inviting readers to send ideas on fixing the
problem of executive compensation to him at tsnocera@nytimes.com.
LPR would recommend that Mr. Nocera remind CEOs of our commitment to equality,
noted by Lord Bryce more than a century ago, and ask CEOs (and politicians) to
accept the counsel of Federalist 57 to work for "the common good" and
stay close to the people.
Thomas Wolfe, in "You Can't Go Home Again," which was published after
his death in 1938 also predicted that "the true fulfillment of our spirit,
of our people, of our mighty and immortal land, is still to come." He added, "I
think the true discovery of our own democracy is still before us."
LPR believes that we will discover "our own democracy" by reaffirming
and revitalizing the legacy of liberty bequeathed to us by the Founding generation.
But quoting George Bailey in Frank Capra's film, "It's a Wonderful Life," --"We've
got to stick together, though. We've got to have faith in each other."
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