FRANCISCANOMICS
Indiana YMCAs Executive Conference May 5, 2001
“The U.S., along with the rest of the world, is in the midst
of a great recession.”
Paul Volcker
“Top economists wary of declaring recession over”
Headline / San Francisco Chronicle / 04.13.10
“The Recession Is OVER, Says
Economic Panel.” Associated Press
September 20, 2010
“LABOR MARKET STILL SOFT AS JOBLESS
CLAIMS RISE” –NEWSROOM AMERICA, 01/27/11
—Dean Baker, Center for Economic and Policy Research
“ ”the recovery is very weak. This report is a clear warning that
Is this the worst economy since the Great Depression?
QUESTION:
CarterADMINISTRATION
20%Prime Rate
April 2, 1980Source: www.wsjprimerate.us
COMPANIES COULD NOT AFFORD TO BORROW MONEY TO OPERATE THEIR FACTORIES. SUPPLY DRIED UP. AS A RESULT, THE INFLATION RATE AT THE TIME WAS 14.5 PERCENT.
“Are you better off today than you were four years ago?”
Ronald Reagan
Landslide!
Reagan Carter
Sour
ce: w
ww
.use
lect
iona
tlas.
org
col·lapse [kuh laps] –noun. A sudden and complete failure; a breakdown.
“You will be confronted with questions every day that test your morals. Think carefully, and for your sake, do the right thing, not the easy thing.”
Commencement Speaker St. Anselm College, 2002
“Ex-Tyco Chief Executive Kozlowski Sentenced to 8 to 25
Years”Headline / Bloomberg.com / 09.19.2005
Strong Fundamental Values
“We must demand of ourselves and of each other the highest standards of individual and corporate integrity. We safeguard company assets. We comply with all company policies and laws.”
Source: The Tyco Guide to Ethical Conduct
“We safeguard company assets.”
Regency mahogany bookcase, c. 1810, $105,000
George I walnut tallcase clock, $113,750
Custom queen bed skirt, $4,995
Ascherberg grand piano, c. 1895, $77,000
Chandelier, Painted Iron, c. 1930, $32,500
Pair of Italian armchairs, c. 1780, $64,278
Persian rug, 20 feet by 14 feet, $191,250
“In corporate America, crime pays. Handsomely. Grotesquely, even.”Arianna Huffington Pigs at the Trough
ENRON MERRILL LYNCH J.P. MORGAN WORLDCOM GOLDMAN SACHS
HEWLETT-PACKARD CITIGROUP IMCLONE GROUP BANK OF AMERICA
a slippery slope
Just days after receiving an $85 billion taxpayer-funded loan, AIG spent $440,000 to pamper executives for an entire week at the extravagant St. Regis Resort.
Bad Judgment?
“I would like my life back.”Tony Hayward, former BP CEO
Photo by W
in McN
amee/G
etty Images
“The best year in safety performance in our company’s
history.” Transocean Ltd.
“Exxon Mobil 1Q Net Soars 69% On Higher Oil Prices”
The Wall Street JournalApril 28, 2011
Corporate>> FEUDALISM
PERCENT
Less than half of all U.S.
employees trust their senior
leaders.
49
Source: Watson Wyatt
HEARTa RECESSION
OF
THE
TRICKLE-DOWN THEORY
When government allows businesses to flourish, their resulting profits will ultimately trickle down to lower-income individuals.
Aghion, P., & Bolton, P. (1997). A theory of trickle-down growth and development. Review of Economic Studies, 64(219), 151-172.
Reaganomics
Ripple Out vs. Trickle Down
a case study
“And standing there bareheaded in the sun, apologizing to the beggar, the strangest thought flashed across his mind. He and this poor man were brothers.”
Sara Maynard Princess Poverty
“”
Francis, go and repair my church, which, as you see, is falling into ruins.
SOURCE: Edmund O’Gorman, St. Francis for Today
Stones and mortar?
Fix the recession!
Stocks and bonds?
Franciscanomics
If a few leaders can cast suspicion on the integrity of an entire nation...
...then why can’t some morally strong leaders restore the public’s faith that people are generally good?
“But wait. We’re not saints.”
“Furloughs Hit the White-
Collar Set”Headline / Wall Street Journal / 02.24.2009
Facing $38 million in budget cuts, school officials chose to furlough
every employee for five days.
Faculty and staff raised over $70,000 to help reimburse 158 lower-wage co-workers for lost income during the furloughs.
Francis-like behavior
“And last but not least, we wish to thank our loyal
employees. Without them...”
—Final paragraph of most annual reports
60M I L L I O N
“I prefer to live in a world where this is ordinary.”
Leonard Abess
10.1 percent
“Was thinking that if each of us helped just 1 person find a job, we could start making a dent in unemployment. You game?”
Mark Stelzner
“You game?”
40,000In the first year, over
Job Angels started helping people find jobs.
Joe Works
R A N D O M acts of kindness
“As a business owner, it is terrifying to see that the world we operate in is drastically and rapidly
changing.”
–Joe Works
LISA EPSTEINVERSUS THE
ROBO-SIGNERS
predatory lending
“At its most rapacious, greed trumps rationality, judgment, perspective, and any concern with the collateral damage it may cost.”
Tony Schwartz
’ I was naïve to believe that banks
and borrowers were held to the same laws. I know better now.‘‘ ’
Lisa Epsteinwww.foreclosurehamlet.org
HUD reports that there are nearly 650,000
homeless people in the country on any given day.
“...other places not meant for human habitation.”
PETERSAMUELSON “I had to do something about the lady living in a refrigerator box near where I sleep in a house with a refrigerator.”
Photo: Nick Stern Photo: Nick Stern
Photo: EDAR Photo: Joe Ravetz
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Photos: Nick Stern
Photo: Nick Stern Photo: Nick Stern
Photo: EDAR Photo: Joe Ravetz
EDAR (E!"#$%&"'D"("#!"('A R%%)), Inc. *+*,'-.$/"$'0!"&1"'2134"'5,6' '7%('0&8"/"(9':0';++<='>?7?@ABC?'5*+'<+D'*+++'E'*+;' 'F0G'5<5'5*,',*DD'
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“This is a modest way to make a difference in
people’s lives.” Peter Samuelson
Peter Samuelson
“It’s not morally acceptable to let people remain in miserable
circumstances, if you aren’t offering alternatives.”
FACT:On an average day, more than 60,000 adults and children seek refuge from abusive relationships. Nearly 5,000 requests for emergency shelter or transitional housing go unmet every day.
National Network to End Domestic Violence
Celena’sLaw
“For many years I had no voice. Well, I’ve found it now.”
Celena Roby
Do know what it means to be hungry?YOU
the h word
1 in 6Americans is food insecure, including
a quarter of the country’s children.-USDA
ANGELA n
i n Q u e e n s
a recipe for caring
•15 pounds of pasta•22 pounds of rice•60 pounds of chicken•10 pounds of frozen vegetables•10 pounds of onions•10 pounds of peppers
“I have a checking account full of smiles.”
Jorge Muñoz
The Wolf of Gubbio
interdependency
“The Catholic World October 1903
THE EARLY FRANCISCANS, WITH THEIR PASSIONATE SYMPATHY FOR THE SUFFERING AND OPPRESSED, LARGELY CONTRIBUTED TO THE FINAL DISAPPEARANCE OF CORRUPT FEUDALISM.”
“A little man may do a great deal of
harm; and pray, why not a little
man do a great deal of good?”
Cotton Mather, 1825 Essays to Do Good
You might not become a saint—or get the publicity afforded today’s notorious business scoundrels.
Franciscanomics
But you’ll succeed in proving that there are still
in the world today.HONORABLE PEOPLE
You game?
FRANCISCANOMICS
Indiana YMCAs Executive Conference May 5, 2001