POPULISM UNMASKED

THIS ARTICLE WAS ORIGINALLY PUBLISHED IN JULY 2008. I AGREED TO REPUBLISH, BECAUSE THE SUBJECT IS AS RELEVANT TO WHAT'S GOING ON TODAY AS IT WAS BACK THEN

There was a well-written article posted by Ms. O’Grady in the Wall Street Journal on Monday July 27th pointing to the mistakes President Obama is making in Central America and the Caribbean. The jist of O'Grady's message was: Know your facts first . . . then act, and don’t confuse Populism with democratic supported freedom.

She went on to suggest that constitutions whether in Honduras or any where else [like Washington] are not there to be ignored and broken. Not something you normally think requires pointing out to a lawyer who was Editor & Chief of the Harvard Law Review. The Journal, on another page, suggested the President was listening to the wrong people and not his Secretary of State.

I sent the O'Grady article to a good friend of mine who’s been very critical of prior administrations’ relations with our Latin neighbors. His name is David, and he called me this morning.

“I don’t always agree with O’Grady, but she made a convincing argument in this instance, concerning what the incumbent was trying to do in Honduras. But you know what hit me the hardest?”

I waited.

“She could have been talking about what the Obama/Pelosi crowd are doing in the good old USA.”

I waited some more.

“Obama is espousing pure, unadulterated, populism. It’s clothed as national health care, high taxes, cheap Dollars, a strong pro-union agenda, and a cash fix for our retreating economy. These notions could be coming out of Havana or Caracas. Don’t the Democrats understand letting people fail is part of the freedom we’ve fought so hard to maintain?”

Isn’t that a bit extreme?

“What the Democrats are doing is extreme. And once a powerful leader like our President gets the bit between his teeth he will tend to extremes. In the case of Obama, it’s better we see it now rather than after he and his Congress have done it all. It’s much harder to turn things around when an ideologue accomplishes his goals. Better to nip him in the bud or, better yet, turn him back around to where he is what I thought he was . . . the brilliant, fair-minded, practical, solution-oriented, politician I voted for . . . not an arrogant, my-way-or-the-highway manipulator, using social means to empower his government and himself. But slim chance of that I reckon.”

How did you get all this out of her article on Honduras and an ill-advised Latin policy?

“Populism is populism. Promise your people everything, hand out cash to the poor, tell them there’s more where that came from, and by the time the duped wake up to what’s really happening it’s too late to change it back or make it right. In Honduras they stopped it before the damage could become eternal. When I read that in O'Grady's article it made the connection for me. Our President doesn’t want it stopped in Honduras or in Washington. Otherwise he’d have opted out like he did on the demonstrations in Iran.”

Do you really think that’s his agenda?

“His backing of the deposed Honduran president, who was bent on abolishing their constitution in much the way Chavez has in Venezuela, let Obama’s cat out of the bag. He’s sympathetic, and at best has confused populism with democracy. No one truly anchored to freedom of the individual could be taking the position he has on the Honduran situation. Hillary Clinton disagreed with him on Iran, and I suspect she didn’t like much the President’s statements on Honduras. It made him seem out of touch.” Why have a State Department if you’re not going to use it?”

You were critical of Bill Clinton’s Latin policies.

“And George Bush’s too. But this is more troubling, because it goes to the heart of what makes the U.S. the best place to be and to be. Populism cannot work without a strong, one-sided, central authority calling all the shots. Alexander Hamilton warned us about the Dictatorship of the Majority. We know now that this is where they’re going. Evita Peron would recognize the rhetoric.”

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I agreed to join Barney for coffee tomorrow and talk about this some more. If nothing else he’s making me think. I SENT HIM A COPY OF AN ARTICLE I WROTE A YEAR AGO.

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The "Populism" Word

My unabridged defines “populism” in several ways.

Philosophy of the Peoples Party is one . . . that sounds like Chinese communism or at least European socialism.

Anti-intellectualism is another . . . although Barack and Michelle Obama [Columbia undergrad and Harvard Law] are certainly intellectuals.

Egalitarianism and extolling the working class is a third . . . and here we think of communism again, mostly as it was under Karl Marx.

Extolling of the underdog . . . like Barack used to be.

You get the drift . . . Common people of the world unite!

So why is it such a popular movement these days? Why is populism going strong in places like Venezuela, Cuba, Bolivia, Honduras, and Nicaragua . . .and now, maybe, the good old U.S.A?

Populism has been the route for demigods taking control in South American countries since Simon Bolivar. The list is long . . . from Bolivar through Peron to Chavez and Castro. Some were elected in the first instance, and others just took power by force, but they all have in common promising to take from the rich and give to the poor. Of course they all took a very big commissions for themselves, residing in secret Swiss bank accounts.

Did it work? Did the poor get good jobs, lots of cash, and a better life? If so, you’ll need to tell me where, because I haven’t seen it. This is the big secret . . . populism has never done anything for the poor it’s supposed to help. What it’s good at is destroying economies and enriching the leaders who make the promises . . . sort of like being first-in first-out in a pyramid scheme. At best, populism is good intention going straight to hell.

Case in point: The populist notion underlying the Acorn movement to help poor people buy homes. A good idea if done right, and a disaster for all of us if mishandled by politicians looking after themselves and their friends. If you want to know who are the culprits here besides Fannie May listen to the news or send e-mails to three or four news stations until you get some straight answers. The American people will catch on eventually. Let's hope it's not too late.

Case in point: Juan Peron of Argentina. This bit of populism is forever immortalized by the opera “Evita”. Go see the musical or get the CD . . . it’s not really fiction.

Case in point: Hugo Chavez. This is a work in progress, but have a look at Cuba if you want to see how Venezuela will end up. Also look at where Chavez’ friends reside . . . Russian and China. All of us Americans need to be careful not to fall for Populist promises . . . especially those of us who really need help.

We’ve been hearing a lot of promises, and not only from the urban party that revels in it, and always has. My grandfather was a Harry Truman Democrat who saw clearly in 1941 that the Populist regime of Franklin Roosevelt that he’d supported for ten years did not bring him or his family out of the Depression, but rather made it deeper and more far-reaching . . . especially for the working class of which he was a part. When you hear someone start talking about the “New Deal” . . . run as fast as you can in the other direction . . .and take your vote with you.

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The Economy, Stupid

THE CAT’S IN THE BAG

Last week I attended a session presented by the business school at one of our best-known universities. The words floating around had a lot of letters and were erudite in style, but they painted the following picture.

When is a stimulus not a stimulus?

When it’s good old-fashioned pork.

When is the list of projects that the stimulus law actually finances going to be released by Congress?

Not soon.

Why?

It would let the cat out of the bag.

Why is the job market not improving?

Most jobs are with small business.

So?

Small business has been left out of the stimulus law passed by Congress, and has to spend too much time complying with overlapping, and often contradictory and confusing, federal, state and local regulations.

What’s the prediction for our 2010 economy?

Not good. We need job recovery.

Why is China doing better than we are?

It’s not, but it aimed its stimulus to where it has more effect on workers’ pocket books.

Why is the stock market doing so well?

You think? The institutions that make trading and investing other people’s money their business need to trade and invest. The market was oversold in February/March and has bounced back some, but it’s still down over 35% from one year ago.

When will we get back to normal?

Only 59% of Americans are actually in the work force. Maybe that is the new normal.

We need to get back at least to where we can plan and work. Why doesn’t Congress pass another stimulus package?

That would require they’re telling us where the last one went.

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THE ART OF BEING CIVIL

My unabridged tells me that civilized means having an advanced or humane culture, and that to be humane you need to have compassion for the rights and ideas of others.

Spend a few minutes coming up with names you see in the print and televised media every day, especially our politicians in Washington, and tell me who’s civilized. I won’t bore you with my own selections, but I found the process liberating, and at the same time a bit depressing. It’s a pretty short list.

Isn’t civilization what separates us from the animals? Or is it that state which separates civil ideas and civil rules from religious or political zealotry? Either way, we’re in the deep stuff if we lose it. If enough people in any given community or organization act uncivilized, the whole of their constituency appears to be uncivilized. That’s good for the animals and zealots, but not terrific for us ordinary folks who would rather have a good day at the office or watch our kids play baseball.

How many of the persons you decided are not very civilized by this definition are confusing civilization with sophistication. Such is the beauty of the English language. The word, sophistication, comes from the word, sophistry, and the latter is defined as subtle, tricky, or superficially plausible, or if this is what you aspire to be – a state of mind altered by education. That would certainly distinguish us from the animals, but I’m not sure about the zealots.

If you want to compile an even shorter list see if you can identify those who have demonstrated in office or in public a good sense of humor (you can include those whose efforts were subtle, tricky or superficially plausible, because sophistry is acceptable in humor.) I can put Winston Churchill near the top of that list; Harry Truman’s there; my father, but you probably don’t know him; Ronald Reagan; Bill Clinton; Bob Dole; Jeb Bush; Barack Obama, Egyptian President Anwar Sadat; and that’s about it for the moment. Those without any public evidence of a sense of humor are legendary, and that’s a very long list.

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CASTRO'S HEIR? Reprinted by popular demand.
originally posted: September 24, 2007

A friend of mine sent me an e-mail on the condition I not tell anyone. No one has heard from him now in almost two months, and I’m constrained to break my pledge of silence in the hope that someone may have seen him alive. A recent picture is attached. Here's what my friend wrote:

“The corked bottle of Cuban rum that floated onto the Gulf Stream shore was empty. I had to break the bottle to retrieve the short letter from Fidel Castro that was inside. Roughly translated it reads as follows:

To the person who finds the bottle in which I place this letter I bequeath all my worldly goods and the power to succeed me as President of the Cuban State. To redeem this grant all you need to do is spend 30 days in Miami before coming to Havana to be given my blank check and sworn into office by my brother, Raul. Good luck, my prayers are with you.
Fidel.

"According to the pundits, Fidel Castro is immensely rich, so I’ve been giving this a lot of thought. The part that bothers me is the 30 days in Miami. Why did he insist on that? Is it a test of some kind? Frankly, I don’t think I’d last a day there as Castro’s heir apparent, let alone a month. If I were to get all his worldly goods in cash I might be able to buy my way out of problems in Coral Gables, but if he’s not dead yet I guess there’s not much chance of that.

“I’m not sure I want the job anyway. I’d have to spend a lot of time keeping that clown Chavez happy, while balancing my affections for the Cubans in Havana with the ones who now live in the States. As great people as they are I’d rather meet regularly with the Mountain natives of Borneo. I mean that’s a job for insomniacs and masochists.

“The rum’s not bad, but I prefer the Jamaican variety. Having an unlimited supply of Cuban cigars was worth momentary consideration, until I remembered it hurt when the smoke got in my eyes.

“I’d get to give speeches to the United Nations and in Revolutionary Square about how awful Americans from the U.S. are. But that’s old hat at this point, and others do it better. My Spanish would need some major overhaul.

“The best part would be the beaches. I know they’re better than this beach where I found the bottle. Imagine what I could do with thousands of miles of unspoiled shorelines and estuaries. It brings tears to my eyes.

“If power corrupts, then the temptation to become powerful is overwhelming. So I guess I’ll take it to the next level and book a flight to Miami. It’s an exciting town now and full of beautiful people that will no doubt surround me with excesses. I’ll try it for a few days, and if it gets too much I can always return home no worse for the experience.

“Do you think I need to tell Fidel or Raul that I’m coming?”

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CONFESSIONS OF A CUBAN COUNTER REVOLUTIONARY
originally posted: June 17, 2007

Sometimes the truth is hard to come by. In Cuba a couple of years ago in the company of a group of North American lawyers, I came across a 19 year old MAN who was complaining about the U.S. embargo against Americans doing business with Cubans in Cuba. I sympathized, but pointed to Fidel Castro’s repressive regime for the embargo’s rationale.

“You’re a lawyer,” he said, “and you tell me that?”

As I nodded a “yes,” I could see him getting up the nerve to make his point.

“Would you like to know why we Cubans haven’t overthrown Fidel Castro? Certainly you lawyers have heard of the Helms-Burton Act? This law, passed by your Congress in 1996, says your President and State Department cannot help Cuba form a new government until the claims against my country by those Cubans who fled to Miami are satisfied. Why should I risk my life to line the pockets of those people, who would then return and take Fidel’s place in Havana?”

Back in Washington I made good on a promise to check out Helms-Burton, and in the process turned up this bit of legislative history. Senator Chris Dodd, speaking on the Senate floor in 1995 during the debate on passage of the Helms-Burton Act, argued,

“…the language, Mr. President, is pretty emphatic – No assistance may be provided . . . to a transition government in Cuba. We now have 38 countries in the world, including Cuba, where United States citizens’ property has been expropriated, and we are in the process of trying to get those individuals compensated for that property. Some of these countries are very strong allies of ours. We never said before we cannot provide any assistance to those countries until those claims and matters are settled, and yet that is what we do with this legislation. . . I just think it’s bad policy, Mr. President [to] absolutely hamstring not just this administration, but future administrations, from being able to move intelligently and rapidly to try to shore up a government that will follow Fidel Castro.”

The Honorable Messrs. Helms and Burton are long gone from office, but the Castro’s are as painfully present as ever. Meanwhile this law, and the Trade Embargo on Americans doing business in Cuba which it was designed to tighten and expand, have not only failed in their purpose to depose Castro, they have helped keep him in power.

Does anyone doubt that having American engineers, entrepreneurs, teachers, builders, technicians, and farmers on the ground in Cuba would help provide the templates and incentives for a free society to evolve in Cuba as American businessmen have provided elsewhere around the globe? Of course Castro can try to prevent this from evolving, but those behind the Iron Curtain failed in their attempts to do the same. Anyway, why should we do Castro’s work for him?
Let’s give all of us Americans the freedom to make happen in Havana what those Cubans who came to Florida have had the freedom to accomplish in Miami.

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There are few countries in which Jay Lillie hasn’t done business as a New York lawyer on behalf of his clients, often dealing with top leaders in these nations.
In the back of his mind, and sometimes on paper or the hard drive of his laptop, there’s always been a story.
Jay’s still engaged in this pastime, and from his imagination we see fiction based upon real world experience in international and corporate politics where diverse cultures meet, clash and find resolution. This is the stuff that made Hemingway’s stories so compelling; seeing macro events through the eyes of real people, with their own related problems, operating at ground level.