Kernel of Truth


by Stuart H. Brody


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Say it Ain't So, Joe

December 16th, 2009


Albany is in high rhetoric mode, again:  this time in service of a call to arms on ethics reform in the wake of Joe Bruno's conviction on corruption charges.  In a State where high minded sentiment rarely leads to meaningful action, New Yorkers are understandably skeptical.

A call for new ethics laws, like many reform initiatives, are born of moral outrage after the commission of highly publicized abuses.  Yet, precisely because they are reactive, these measures often fail to identify the real problems or fall short of correcting them.  Like new airport security checks taken in reaction to the latest terrorist threat rather than in anticipation of future ones, expedient half measures deplete public confidence rather than bolster it.

New Yorkers understand that ethical rules don't make people ethical.  At best, such rules identify a narrow subset of conflicts of interest and set legal boundaries around them.  They do not eliminate conflicts, or guide public officials in the manner of justly resolving them.  That skill belongs to the world of integrity.

Integrity, is a broad personal commitment, not a narrow legal compulsion, to act in a manner beneficial to the community as a whole rather than what might otherwise appear in one's immediate personal interest. The founding fathers understood the tension between the individual pursuit of happiness, proclaimed as a natural right in the Declaration of Independence, and the promotion of the general welfare which is a central mission of the Constitution.

The problem is that politicians, like most people, tend to identify the general welfare with their own personal happiness.  In surveys on ethics, most respondents say that the word ethical means "what my feelings tell me is right."  Relying on feelings is a pretty shaky way to fashion a moral structure.

To illustrate this, in another survey, 98% of Americans surmised that they were "a better than average" judge of character.  Obviously 48% of them are wrong.  On any question involving right or wrong, one's "feelings" will be as often wrong as right.

A basis more substantial than instinct to "do the right thing," which everyone seems to believe they possess -- is needed to induce political leaders to accord "the right thing" as much thought as rewarding campaign contributors, re-election maneuvering, party leadership ambitions and pecuniary gain.

Something more substantial than an ethics pledge will be necessary to curb the way our nation's leaders act in the halls of Congress:  demonizing opponents, dialog through denunciation, communication through confrontation, consistency at all costs and the equation of integrity with rigidity of beliefs, usually their own.

It simply can't be that politicians have no capacity to do the right thing.  They are capable of introspection, discernment of duty, personal commitment and taking risks for the common good -- essential elements of integrity.  That's why many of them went into politics in the first place.  Yet this impulse is all too often blunted by the cold, hard enforcing steel of partisanship and highlights the need, not for new ethics laws, but ways to induce our political leaders to realign along fault lines of integrity rather than political ones.

For the moment though, it seems as if the only game in town is party politics and we the people are sidelined.  Is it any wonder then, that Joe Bruno, the ultimate team captain in this brutal sport quoted Yogi Berra in assessing his fate? "It ain't over till it's over."

Ironically, though, he may have unwittingly struck an important chord:  we'd better pray it ain't over because we have a long way to go to rescue our democracy.

Stu Brody is the former Chair of the Democratic Rural Conference and founder of www.integrityintensive.com, an integrity training resource for young political leaders and public affairs professionals.

Not My Ox, Yours!

October 16th, 2009


 

The Common Weal in America Has Run Dry?

By Stuart H. Brody

Comments of Stu Brody to Empire Page Roundtable  October 2009.

The question posed to this Roundtable is whether Americans should willingly pay for public benefits of which they will never partake.  In my mind most striking aspect of this question is that it needs be asked at all.  Not that a democratic people shouldn’t debate the role of their commitments to the nation’s collective well being, but that the debate in modern America has taken such a narrow and selfish turn. 

Our very founding and survival was built on enormous compromises to serve union and freedom, even if particular interests were ill served in the short run.   We can point to the Golden Age of the Senate when Henry Clay, the Great Compromiser, and others, stitched together complex regional accommodations to keep the nation together—and allow it to grow—forestalling war for thirty years.

We have a history of sharing the privileges and bounty of our rich nation freely in order to expand prosperity.   DeToqueville marveled at what he termed our volunteerism and boosterism.  Still, today, you can hardly visit an American town or county that does not boast large community service calendars and festivals for public entertainment and community promotion.

We are also a massively generous people–by far the highest per capita contributors to charity in the world, notwithstanding our collective skepticism about forking over tax money each April.

I believe, that deep down, most people hold as one of the blessed privileges of freedom, the free partaking of the grandeur that our wealth has produced. 

The parks of our great cities and our great public monuments and museums offered the world weary urban poor a moment of tranquility in which to nurture their dreams, dreams which, by God’s grace, were realized by so many.

Walking in a national forest, as others have commented, imparts a power of belonging that is unmatched, and diminished, if you have to pay for it.

Yet we live now in a time of stinginess.  From Congress with its earmarks, to Wall Street with its bonuses, the rule of the day is “take the money and run” before anyone catches up with you.

Just weeks ago, Senator John Kyle from Arizona actually complained in a Senate Committee debate on health care that he was required to pay for a health care policy that included maternity benefits since he would never use them.

In our own state, the best plans to fund the  MTA which fuels our most potent economic machine—the City of New York—fell victim to the narrowest of selfish interests in our legislature.

Like a family bitterly divided over a contested will, in America, the bonds of common devotion have been loosened by fierce and mindless emotion, and often it’s our politicians leading this desperate movement.  Too many cloak narrow interests with passionate rhetoric while subjecting anyone who disagrees with them to intemperate and often vile denunciation. 

How can such men and women summon the grace and generosity to provide for the general welfare and inspire others to achieve what Jefferson called the most noble ambition of free men:  pursuing individual happiness while contributing to the collective well being.

Perhaps they can learn something of public courage from Supervisor Mary Ellen Keith of tiny Franklin, New York who was voted out of office twenty years ago for spending the last remaining federal revenue sharing funds to purchase land for a park, instead of putting it in to the General Fund, because she wanted “something lasting.” 

Now, in her eighties, and freshly returned to office, she spends every summer morning making 100 sandwiches for the sons and daughters of her electors, grateful for her foresight.


Michael Bloomberg has been acknowledged in most quarters as a good mayor, combining a steady managerial hand with bold approaches to tough problems. No one has succeeded in making the argument that his wealth has worked against him, or corrupted him. In fact, to many, his wealth has insulated him from the temptations befalling mere mortal politicians: making deals for campaign contributions.

However, there is another temptation to which he is apparently vulnerable and from which his wealth has not shielded him: the charms of eternal power.

At the outset of his tenure, Bloomberg promised he wouldn’t run for more than two terms. He repeatedly emphasized his support of the City’s term limits rule, and once called any effort to revise the limits “disgusting.” Yet as the end of his second and presumably final term loomed, he retracted this view, concluding that he is indispensable to the people of New York.

The mayor’s 11th hour conversion from supporter of term limits, to opponent, has provoked anemic opposition. Fifty city council members, or at least the 29 voting to allow him to run for a third term, concluded that their will, or the bending of it to Mr. Bloomberg’s, was a fair exercise of their legislative power, even in the face of two referenda by the voting public to the contrary.

Leading advocates of term limits, like the redoubtable Ron Lauder, who, for better or worse became the public face of term limits, lost his zeal for the fight, and caved. The teachers union, presumably ill disposed to the mayor because of his steadfast support for chancellor Joe Klein, also backed down from a resolution opposing Bloomberg’s bid.

Mayor Bloomberg now finds himself sailing calm waters in the port of his ambition. In the wake of the recent dismissal by the United States Justice Department of a civil rights challenge to the third term, the tepid response in Albany to a Senate bill restricting his effort, and his endorsement by the City’s Republican parties even after the Mayor spurned them to run for President as an Independent, no real obstacles remain to Bloomberg’s running for a third term. Incredibly, this startling power grab appears inevitable.

So the question becomes, if no one seems to care that he’s riding roughshod over his own promises, the judgment of his fellow New Yorkers in two referenda, and the resulting law limiting him to two terms, then what is really so wrong about what he’s doing? Or to put it another way: if the leaders of our democracy don’t seem to care, are his actions really a threat to democracy?

They are, and here’s why: because politicians are not supposed to change their minds in bald pursuit of their self interest, and they’re also not supposed to maintain power for its own sake. Sound old fashioned? Self-restraint in the face of the temptations of power is what men and women of integrity do. They do it to inspire and maintain public confidence in the capacity of elected representatives to do right by the people that elected them. Each time a politician disappoints that expectation, we lose a little more confidence in a system we were taught once to believe in.

Faith in the political system is no less important to our spirit as free men and women, then confidence in the financial system is to our economic well being. We are living in the painful reality of what happens when people lose confidence in the financial system. Yet the same collapse has been occurring, if more gradually and less violently, to our political system over the last 30 years.

After the loss of anything precious, we lose daily touch with the value of what we’ve lost. We close off the space where our hopes once nourished our optimism. A plurality of New York City voters — 46% — believe the term limit extension approved by the City Council for the benefit of Mr. Bloomberg is not the right thing for the city, yet they believe his continued service of mayor is.

Clearly, then, there is a wide gulf between rectitude and convenience, and this gap is the breeding ground of cynicism.  It takes a leader to close the gap not exploit it. While claiming his indispensability for leadership, the mayor forfeited its most essential aspect: respect for the people’s confidence in their leaders.

Yet, even if he wins in November, the mayor’s resulting political harvest may be a barren one. The people have a funny way of rebelling against those who manipulate the rules, especially these days, when the millions who obey them are now compelled to bail out the few who consistently broke them. Explosive reactions in democracies are often set up on a long fuse. Last November’s national election is a case in point.

New Yorkers may not rebel now, nor at the polls in November, but they’ll get there, as the problems of transportation, education and public safety are seen by New Yorkers in the new light of the mayor’s opportunism.  Just another politician is how he’ll be viewed;  a fitting return on Mayor Bloomberg’s investment in the cynicism of the electorate but a disappointing conclusion to a career that at once seemed so fresh and honest.


Last week the United States Senate managed to occupy center stage on the national scene, no small feat given the array of economic catastrophes unfolding daily. Yet, the spotlight is hardly flattering to the Senate leadership.

The Senate refused to seat Roland Burris, the person appointed by beleaguered Illinois Governor Rod Blagoivitch to fill the seat vacated by President-elect Barack Obama.

With startling irony, Senate leader Reid invoked a “qualifications” clause in Senate rules to reject Mr. Burris, a man who would be, were he actually seated, one of the most qualified in the Senate.

Reid has since relented from this untenable position but the whole episode displays the glaring inadequacies of the gubernatorial appointment method of United States Senators.

Like a joker in the political deck, the gubernatorial appointment turns the political game on its head, substituting the objectives of one person, the Governor, for the judgment of millions. This curious practice deviates from democratic custom and is constitutionally unwarranted.

The Seventeenth Amendment to the Constitution, in addressing United States Senate vacancies, afforded discretion to the States in the issuance of “writs of elections” or, to put it plainly, special elections. The Seventeenth Amendment authorizes temporary appointments but arguably only to ensure representation pending a speedy special election.

This plain intent of the Amendment was undermined by the New York Public Officers Law which allows, in fact, requires, long appointment periods like the two years New Yorkers will be forced to wait before directly electing Hillary Clinton’s successor. In 1968, Governor Rockefeller’s appointment of Bobby Kennedy’s successor lasted 29 months before direct election.

Other states have implemented the provisions of the Seventeenth Amendment more flexibly, including, oddly enough, Illinois which affords the Illinois legislature the power, as yet unexercised, to call for a special election.

In two states, we are now watching the unseemly byproducts of this undemocratic practice. In Illinois, it tempted the wayward Governor off a moral cliff, and probably a legal one, when he discussed selling the Senate seat to the highest bidder, but it has also diverted Illinois law enforcement officials from prosecuting him, as they focused simultaneously on blocking his appointing authority.

In New York, the effect is no less distracting: While David Paterson labors mightily to steady the ship of New York State after the collapse of Wall Street, his concentration is inevitably undermined by the spectacle of–and the resulting media obsession with–the daughter of a fabled president imploring the Governor for a patronage job: a no-win situation for two of New York’s most admired leaders.

Even from the standpoint of party politics, Senator Clinton’s Democratic replacement may not reap the advantage of incumbency in 2010 that many predict. Whoever the appointment, he or she will be less compelling than the immensely popular Chuck Schumer, also running in 2010, for a full term, and perhaps easier electoral prey to Republican appeals.

The unpopularity of the interim Senate appointment process with the public is revealed in the statistical fact that the overwhelming majority of such appointees have been defeated in the next election. The public has an uncanny way of rebelling against fiat, and this undemocratic procedure is surely that.

It is time now for the New York State legislature to revise the current statute that requires this undemocratic interruption in the people’s right to determine their representatives. A quick special election will not only elicit the public’s respect, but also buttress the budget trimming efforts of a Governor who has done much in his short tenure to earn it.

      

Rural New York: Life at Sub Prime

September 16th, 2008


Rural New York:  Life at Sub Prime

By Stuart H. Brody

Originally Posted at www.empirepage.com/whataboutupstate  (2008)

 

The American banking community has come under fire lately.  The term “sub prime mortgage” is now familiar to most Americans, whether they hold a mortgage or not.   The banking establishment, in its wisdom, embarked on a plan to loosen the standards for granting a mortgage, jettisoning time honored conditions such as:  having a source of income, a credit history and some money down.

The security industry, not to be left out of a financial boondoggle, packaged these mortgages and sold them as securities, in a feverish reprise of the junk bond mentality of the 80’s.  As the economy now lunges toward collapse,  Americans watch helplessly from the sidelines wondering whether the free enterprise system that spawned this disease can cure it.

Upstate New Yorkers know that sinking feeling:   distant players who put the region at the mercy of unpredictable economic forces.  Yet, there is a home grown variety of banking excess—right here in rural New York—which subverts the economic well being of the region.  It’s called the doctrine of “external obsolescence.” 

External Obsolescence is a complicated name for an automatic rule applied by Upstate banks to business assets owned by rural New Yorkers.  It works like this.  If an entrepreneur wants to set up a business in rural New York, the building he constructs or buys to conduct the business will be automatically devalued, typically by 25%.  Here’s an actual example from the North Country.  A local entrepreneur decided to begin a furniture manufacturing facility, hiring 25 people, paying them good wages with health care benefits,  precisely the kind of jobs the region needs.  In order to finance the business, he collateralized the building which he built for $1M.     The problem was that the local bank valued it at $750,000 instead of $1M, claiming the rule of “external obsolescence” .  The rule dictates that the rural location of the facility, in and of itself, without reference to any objective factors such as actual value, recent property sales, or cost of materials, demeans its value by 25%.   To make up the difference in his capital requirements, the entrepreneur mortgaged his house and furnishings.  Some businessmen can’t meet this added financial burden and abandon their projects, and the jobs that go with them.

That is not the only banking anomaly in rural New York.  A mortgage won’t be granted unless it can be packaged for the security market, just like the sub prime mortgages.  This practice requires rural homeowners to build wells and install central heat, just to get a mortgage.  And if you’re more than a few miles from a fire station you might not get one either.  A beautiful home whose water needs are served by a reliable spring, rather than a well,  won’t get a mortgage because it can’t be packaged.  The rules of homogenization  always play to the greatest number but the minority has been left out, and upstaters are New York’s ignored minority.

We succumb to homogenization in other ways too.  Take the big box stores.  Retail powerhouses like Wal-Mart hire local politicians to proclaim the virtue of these enterprises as economic anchors.  In reality, these big businesses drive out local stores using their enormous economic leverage to do sweetheart deals with suppliers.  They pay low wages with no benefits, and drain off precious local capital for shipment outside of New York.  Adding insult to injury, these behemoths scar the countryside and impede the ability of rural communities to commoditize their natural beauty and pristine way of life.  

Free marketers, the same happy crew that brought us sub prime mortgages, respond that consumers are free to pay a little more to shop locally if they wish.  Yet, when life is scratched out at the margins, a few cents more looms large.  A striking example of this patronizing mentality was displayed by none other than Al Gore, the guru of climate change.

Appearing recently on Meet the Press, Gore was criticized for building a 10,000 square foot home while espousing energy conservation.  With obvious discomfort, Gore conceded that he isn’t perfect but countered that he paid extra to power the edifice with green energy.   Gore’s ready substitution of personal desire for public integrity was not lost on rural New Yorkers who see it as more of the same facile rhetoric in service of faulty logic. 

Upstaters are a hardy lot.  We don’t expect hand outs or give-aways;  just a little respect will do, starting with some legal and moral scrutiny of some of the practices that beset us:  like external obsolescence, those sweetheart deals that the big boxes make with their suppliers, the public servants paid off to espouse the virtues of corporate predators, and banks who refuse mortgages to homeowners who heat with wood or get their water from a spring.

While the media obsess on the global economic picture, New York’s political leaders would do well to look at the smaller world around them where the little things often hurt the most.


At Empire State:   Two Heads Are Not Better Than One

By Stuart H. Brody

Originally Posted on www.empirepage.com/whataboutupstate.com in April 2008

In government, an idea sometimes takes hold that promises a rare breakthrough in efficiency.   The downstate/upstate split of leadership at the Empire State Development Corporation seemed to some like such an idea.  In implementing it, Eliot Spitzer intended to highlight the specific needs of Upstate and ensure they would be seriously addressed. 

He hired two accomplished professionals to do the job or, should I say, jobs:  Pat Foye, who recently resigned, was the Downstate representative, and Dan Gunderson still serves as the Upstate representative. 

From the standpoint of execution, the idea has been a disaster.  Empire State Development—the key development arm of the State–has been crippled by competing philosophies and internal power struggles.  Anyone who has had the remotest dealings with ESD understands that a once effective state agency has languished into dysfunction and distracting turf wars. 

Yet, in an uncommonly fierce challenge, Unshackle New York and other Upstate advocacy groups have roundly criticized Governor Paterson’s decision to combine ESD efforts in to one leader.  Surely, these groups which have been so thoughtful, committed and accomplished in the service of Upstate, are aware of what’s going on at ESD.  Yet, they are calling out the militia in service of the wrong war.

The battle is not the number of heads at ESD, it’s the strength of the voice.  Far too often, as Upstate leaders know, the rhetoric from Downstaters has been patronizing, cliché driven and uninformed, but not from this Governor.   As Senator, then Lt. Governor, David Paterson has demonstrated both understanding of and commitment to Upstate challenges and has traveled extensively to assert both. 

As Governor, he has reemphasized his commitment to the Upstate Revitalization Fund, property tax reform, regionalization of economic development, environmental vigilance, Wicks law revision, energy reform and a host of other important Upstate concerns.   This record entitles him to deference in his organizational preference for one leader as well as  his choice of leader

While the idea of a powerful head of upstate development is symbolically attractive, it is largely a vacant gesture if ESD as a whole is not working affectively.   Clinging to a symbol which does not serve the cause it symbolizes is neither good strategy nor sound policy.  

As a fall back position, some groups have called for Dan Gunderson’s selection as the sole leader of ESD.  Dan Gunderson, coming to New York from Pennsylvania tirelessly traversed Upstate to gain an understanding of its issues, and has succeeded by most accounts admirably.  How ironic it would then be to dilute that focus by shifting him to the state-wide role.

This sudden flare-up over ESD leadership is a negative signal to New York and out-of-state business interests who must wonder what the fuss is about over implementing a standard business practice of consolidating executive power in one leader. 

After all, it’s the buck that stops at the second floor, not two 50 cent pieces.