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Government 101 by Steven Saws There seems to be enormous popularity in the documentary Washingon You're Fired. There's a lot to say about what our government has done. Not enough, though, is being said about what is not being done. Whether it is gas prices, the war in Iraq, the mortgage industry fall out, executive pay, the falling dollar, or a recession, our government seems to want to spend more on prosecuting Roger Clemens or eliminating gay marriage than worrying about the vast masses of the people. If I recall, we once had a "government of the people, by the people, for the people."1. Somewhere in the midst of our daily lives, we've become a "government of the elite, by the elite, for the elite." It seems our government has forgotten what the word govern means. The current administration isn't doing their job for the people. They're so focused on their own private agendas they've completely forgotten about this country's needs. Commenting on the current price of oil, Walt Lukken, Chairman of the Commodity and Futures Trading Commission, stated earlier this year that futures speculation effect on the market is over-inflated.2 "Blaming the futures markets for high commodity prices is like blaming a thermometer for it being hot outside," Mr. Lukken said. This statement proves the point of how disconnected he is. The fact is, a thermometer is more like the actual price of gas at the pump. The weatherman is the speculator, but the temperature doesn't rise because the weatherman predicts it. On the contrary, oil prices do rise if speculators think the price may go up due to demand, natural disaster, war, etc., because they start trading oil at those new prices, even though they don't yet exist. The mortgage disaster is flatly due to greed and incompetent management. The US corporate culture is diseased by the next quarter syndrome. They're placing so much emphasis on how much profit they can make in the next quarter, there is almost no consideration for long term future growth. Considering that the average tenure of a CEO is about five years,3 there is no longer an incentive for long-term outlook of a company. The CEO mentality has turned to one of raping the company for all it can before getting out. Many CEOs simply turn to illegal practices (See $218 Million Thief). It's no wonder, then, that there was a 91% increase in CEOs leaving following the passing of Sarbanes-Oxley,4 a law forcing CEOs to actually be responsible. What does this have to do with our government? In the same way the government can put a stop to stock market trading to stave off a crash, they can intervene in the futures trading to get it under control. After all, isn't that the meaning of govern? However, they're turning a blind eye and falsely claiming we are addicted to oil. (See my opinion on that topic.) Though they passed the Sarbanes-Oxley act, it was only after massive corporate crimes resulting in huge job losses were uncovered in Enron, Tyco, Adelphia, Peregrine Systems, Worldcom and others.5 Instead of a reactive government, we need a pro-active one. One that leads rather than responds. One that is for the people, and not for it's corporate constituents. A government that prepares for the long-term future and well being of its people and the generations that will follow. FOOTNOTES: 1. Abraham Lincoln - The Gettysburg Address2. Financial Week - Senators to White House: Set up task force to probe gas prices 3. USA Today - Ousting CEOs often boosts stock price 4. Recruiting Trends - Fortune 100 CEO's Average Tenure 5. Wikipedia - Sarnanes-Oxley Act
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