"Civilizing capitalism"

Watched a good interview with our author Kirstin Downey on Democracy Now. You can even hear Perkin's voice giving a speech.

Downey explains that FDR and Frances Perkins were able to pass social security and enemployment compensation during the 1930's depression because it was just one of three or four depressions the American public had experienced in a fifty year period. The American economy worked on a boom, bust cycle. The programs Frances Perkins put forward acted like a shock absorber.

She was disappointed she wasn't able to include national health insurance in the package. After WWII companies offered health plans rather than higher salaries. Imagine where we would be today if she had started national health insurance in the 1940's?

Everybody needs a "wife"! This is one of those life lessons we all learn. I find it interesting that the only way Perkins could live in Washington, handle the work she had to do as Secretary of Labor, provide a home for her teenage daughter and support an ill husband was to share a home with a single, wealthy, well connected woman, Mary Harriman. She basically subsidized Perkins and her government work. Handling Perkin's work load and family responsibilites would have been impossible. Washington was a social town. She was responsible for her work duties as Secretary of Labor and the social obligations of the "wife" of this job title.

"...wives of government officials engage in a ritualized system of calling-card exchanges, in which women trekked from home to home leaving cards that indicated their desire to pay respects in person." At one point Perkins was between homes so the ladies left cards at her government office, this just wasn't the same. She needed a "home". Harriman provided that.

more later, I have to go do my "wife" thing

Francis Perkins: the best "man" in FDR's cabinet

This book starts out with a bang.

1933. FDR has just been elected president. "He inherits the worst economic crisis in the nation's history. An era of rampant speculation had come to an end. The stock market had collapsed, rendering investments valueless. Banks were shutting down, stripping people of their lifetime savings. About a third of workers were unemployed; wages were falling; tens of thousands homeless. Real estate prices had plummeted, and millions of homeowners faced foreclosure."

This reads like the headlines in today's newspapers.

Back to 1933..."People took out what were called 'bullet' loans, which were interest-only loans that buyers were told they should refinance in three or five years. Lenders told home buyers not to worry; homes were rising so fast in value that it would be easy to refinance into another loan."

Sound familiar? Too bad people didn't remember this didn't work in 1933 and so why would it work in 2008? Thank you Alan Greenspan!

I just saw Michael Moore's new film "Capitalism, A Love Story". It needed some editing, but told a raw story. He shows footage of families being evicted from their homes because they haven't made their house payments. Part of me asks, "so why did they borrow so much money, it's irresponsible" but now I'm asking what kind of banking system purposely loans people money they know they'll never be able to pay back just so they can make a processing fee. So who's to blame? Where's consumer protection?

But what about Francis Perkins? She worked for protecting the laborer at a time when conditions were awful. She's a gutsy lady. After graduating from college against her family's good advice she moves to Chicago where "immediately upon arriving, she reinvented herself. She changed her name, her faith and her political persuasion."

If women are all about change she did an amazing job.

More later, I have to go feed the cats...

Outliers: The Story of Success

I was a little worried this book was going to another "dress for success and destroy your competition" kind of book. instead it works on many levels and ultimately has a story that is personally relevant to most people.

In the first chapter, Malcolm Gladwell, tells the story of a very successful ice hockey team. He points out most of the members of the team have January birthdays. The ice hockey league uses Jan 1 as a cut off date for eligibility which means a player born in Jan will be "bigger and more coordinated players, who have had the benefit of critical extra months of maturity". These kids will always have the advantage in their league and then go on to try out for college and/or professional teams. They will be the "successful players".

Gladwell suggests, why not have a second team that has a birthday cut of June 1 so you'd have a second group of "successful" players. Why not increase the success. Why do we always set limits?

Culture in the cockpit. The other really memorable chapter describes how the culture of a flight crew can impact the success of a flight. He tells the story of a disasterous Korean Airlines flight that ends up with the jet crashing in to a mountain. The pilot had flown the same route recently and he was tired. His crew gave hints that things weren't right but since he was the captain, "in charge" he wasn't obliged to listen to members of his crew. The "culture' in other Korean cockpits was studied and changes were made so the crew communicated in a more professional manner.

I liked this book because in the end Gladwell tells the success story of his own mother. She was a black born in Jamaica but by good fortune and work she was able to travel to England for "formal education". He's emphasizing a person's success is built on relationships with people, work and lots of time luck, good fortune...an important "ingrediant" we don't have any control over.

This book offers a variety of stories. I've picked out the three that made the biggest impact on me. Someone else could read this book and take away a different experience.

And then we can always end by asking "so what is the definition of success? Is it the same for everyone?"