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Jan 2017 – As We Await the Arrival of the New President…

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by Hank Boerner

As we await the arrival of our new president and vice president, cabinet members, and  welcome the new members of House and Senate in the 115th Congress …

All eyes will on this nation’s capital on Friday, January 20th as a new President of the United States is sworn into office in the peaceful transfer of power that marks one of remarkable and unique qualities of this great nation. #46 in the long line of Chief Executives and Commander-in-Chiefs will be Donald J. Trump of New York.

We’ll say our (temporary) goodbye’s to President Barack H. Obama and depending on our point-of-view, this will be in the spirit of “thank you and well done” with tears in our eyes — or something quite different!

There was great excitement and expectation when Barack Obama was sworn in on January 20, 2009. His was expected to be a transformative presidency for many reasons. The nation was reeling from a series of interconnected critical issues that seriously impact many, many of our citizens. Some of those issues remain to be addressed and resolved (if at all possible).

And so back in November 2008, soon after the election results were clear and we could think about what was ahead under the new administration, and a new (Democrat-controlled) U.S. Congress, I thought about the promise of an earlier age, with a new president at the helm, and the progressive movement that was coming into full flower. At that time, a Republican was in the White House.

With discussions about our country being left/right, liberal/conservative, a 50/50 divide in America and so on, it’s worth looking again here in January 2017 at the past for lessons for the future — looking again at the Progressive Movement and the many benefits that we all derived from that era.

Here (below) is my original commentary back in 2008 just after that November election and the results were known: A “transformational” chief executive officer was coming to the White House in January 2009.

Ah, I’m thinking today, and so here we are again, with another tumultuous presidential election behind us and another transformational head-of-state coming in January 2017.

What kind of chief executive officer will President-elect Donald J. Trump be? What kind of transformation might he bring about? What can we expect from the 115th Congress, now convened and announcing bold moves? Will we move left or right — progressive or regressive? Backward, forward, in progress terms?

What lessons should we take forward from the past, in the Progressive Era for application in this 21st Century — if not to be taking literally, then as wonderful inspiration for doing the right thing for all Americans!

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WHO WERE THE PROGRESSIVES – WHAT CAUSES DID THEY ADVOCATE? AND, ABOUT THEIR ENDURING, POSITIVE IMPACT ON THE AMERICAN WAY OF LIFE…
originally posted November 14, 2008 by Hank Boerner

During the 2008 primary campaign season at one point U.S. Senator Hillary Clintonwas asked about her political leanings — wasn’t she a true liberal as charged by the Right?. Her reply resonated with a number of people: I am a Modern Progressive, she told the interviewer.

That got me thinking – so what’s wrong with being a progressive…isn’t it the fundamental drive of the American Dream to make “progress” and be all that we can be, to borrow from the great US Army marketing slogan…as a society…and as individuals?

As we consider how (liberal) or (left-leaning) or (middle-of the road) the incoming [Obama Administration] and factions of the new (114th) Congress might be, I’d like to put the question in the context of my belief that we are likely at the moment of dramatic societal change.

This is shaping up to be one of the fundamental, once-in-a-generation shift of American politics and culture – from the dominance of right-leaning (more conservative) politics of the 1980s (and things cultural) to the center-left … and maybe even more left than that.

The perilous state of the economy has a lot to with this – consider the several millions of manufacturing and related industrial jobs lost in the US in recent years; the ongoing chaos in the capital markets.

The seizing up of banking and business, government and commercial credit markets; the consequences of our military affairs (wars in Iraq and Afghanistan going on longer than the years this nation fought in all of WW II).

The erosion of all-white dominance of institutions; the increase in the nation’s non-white populations; the foreclosures that are mounting month-over-month in too many neighborhoods (10,000 US homes-per-day are now being foreclosed!).

The growing wealth and income gaps as the middle and lower economic rungs become ever more slippery for American families …as the wealthy get wealthier-still…and more issues than that to address!

Where does Modern Progressivism fit into these issues?

The era’s “Robber Barons” — wealthy interests and strong men who monopolized and controlled the railroads, Wall Street institutions, banking, large corporate enterprises, and numerous monopolies, a/k/a the “Trusts” — were under fire for their practices and ways of doing business.

At many levels of society there was growing displeasure about business monopolies, price-fixing and other practices of the big businesses of the era.
Common factory workplace conditions for many Americans were about the same as [those] social investors today criticize certain US companies for condoning far off in their overseas supply chain.

When one of the era’s Robber Barons’ companies took a strike in Homestead, Pennsylvania, owner Andrew Carnegie took a trip to the British Isles while his hired strikebreakers, the Pinkertons — who with the looking away of local and state officials, savagely attacked the workers, injuring many and killing nine.

Union leaders were charged with murder and treason. The company broke the back of the movement workers to organize and the early concept of collective bargaining. Such was the state of labor-management (or “owner”) relations as the new Progressive Movement began.

This was the ending of the “Gilded Age” (described by author Mark Twain in his book of that name), delightful times for the elites and the wealthy and super-wealthy. (And as he penned this, Mark Twain was living an era full of business and political corruption. For many in big business firms, working conditions were more like those in Charles Dickens’ novels, such as Ebenezer Scrooge (the owner) and Bob Cratchit (his employee), in the scene from that Christmas Eve in “A Christmas Carol.”

TR: Enter the President as Chief Crusader

As the progressive thinkers in the American society reacted to conditions that they believed had to be changed for the nation to fulfill its promise of social and economic equality, in the White House, an [seemingly] unlikely champion took center stage to dramatically change the way things were: Ambitious, young, action-oriented, and very bright, Teddy Roosevelt had been governor of New York, and was elected William McKinley’s VP in 1900, mostly to get him out of the way of the Republican big bosses.

He had too many radical thoughts about upsetting the system that benefit the wealthy ownership class. Upon the assassination of President McKinley, “TR” became President of the United States (September 14, 1901). Throughout most of his presidency he was a dogged, committed crusader — especially against corruption in both the public sector and the private sector.

In the era of giant corporate enterprises rapidly (and rapaciously) consolidating power and influence on a scale never seen before, President Roosevelt and the Progressive Movement provided a very effective counterbalance.

Seeing threats to the American Democracy and the unique capitalistic system of the USA if things weren’t changed, TR took action and the progressive movement grew to support the concepts advanced.

He was an unlikely leader of reform of the system because Teddy was born into the wealthy class and easily could have been an elitist leader. He used what he called “the Bully Pulpit” of his presidency to rally support for change. (“Bully” in those days was a cheering call — bully for you!)

Through the pressure building – especially from the population below, and broadening media coverage – eventually blew the lid off the American Society, and the reforms flowed forth over two decades:

Consumer Protection – advocates drove adoption of the landmark Pure Food and Drug Act of 1906 (resulting in today’s FDA protections; many of today’s food supply protections; regulation of medicines, and more).

Protection of Workers – workers got the right to organize; the 8-hour workday became the norm; there was protection of worker health (such as in the coal industry where many suffered from black lung disease); unsafe factory conditions began to be eliminated.

Child Labor was controlled – eliminating tiny children working alongside adults in industrial facilities.

Urban Residents began to be protected – reforms of the day began eliminating crowded tenement housing, which often led to sickness, including widespread tuberculosis; water supplies were regulated and protected, probably the greatest single factor in health advances in the early 20th Century.

Education – Progressives encouraged wider access to education for children, especially in the cities, to eliminate crime and the cycle of poverty, and to begin to build a larger, more educated middle class. Citizens were to be broadly educated in public school systems.

Political Corruption Battles – included direct election of member of the US Senate; encouraging closed (secret) ballot elections; addressing the power of political bosses in the big cities; addressing voter fraud.

Progressives addressed the root causes of poverty – especially urban poverty, with millions of immigrants flowing to port cities, and then crowding in to work in the steadily expanding universe of factories. The plight of immigrants were top-of-mind for progressives, including encouraging immigrants to move out of over-crowded cities, and address their health, job, education, and other social needs.

The Progressives’ work protected your parents, grandparents, even great-grandparents!

Protecting the Nation’s Natural Resources – President Teddy Roosevelt was in the lead here, setting aside about 100,000 acres a day for the future generations throughout his two terms! He created sanctuaries and reserves of various kinds by executive order. (The National Park System would come about a few years after he left office, in one of the Progressive Movement’s finest moments.)

Treatment of the Nation’s Veterans – encouraging health care for veterans, and pensions for military retirees

Encouraging Fair Taxation – Spreading the Burden – the adoption of a progressive / fair tax system (the personal income tax came during the Progressive Era; before that, the primary means of support the federal government included tariffs on goods.)

Encouraging Social and Economic Justice – addressing the situations of Native Americans, and tens of millions of immigrants pouring into the USA – your ancestors and mine!

Regulating Industry – curbing the runaway power of large corporations; curbing large business monopolies in key sectors; first President Roosevelt and then successor William Howard Taft led the battle to break up large industrial trusts, such as the Sugar Trust, Steel Trust, Beef Trust, and the Oil Trust (the Rockefellers’ sprawling Standard Oil Empire was broken into individual operating companies — today’s Exxon, Mobil etc..)

Progressivism – A Broad Societal Movement

Note that what we’re describing here was in ways a political movement, yes, but the progressives were not necessarily organized only as a political party movement (such as “the Democratic Platform”).

This was a society-wide, mostly national social movement at many levels of the culture working to make America a better place…a kinder and more caring society…and more inclusive society…yes, a society which encouraged the spreading of wealth beyond the handful of powerful elites who commanded the apportioning of capital, the means of industrial production, and the transport and distribution systems necessary for truly national commerce.

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A combination of forces brought progressivism to the center of American life: as author A.J. Scopino, Jr. writes:
“…Historians agree that in the first two decades of the 20th Century [reformers] employed a scientific approach when addressing social problems, No longer content to accept and explain the miseries of life through fatalism or sheer luck, progressives were eager to utilize new tools, strategies, methods, and discoveries of new academic disciplines (especially sociology), to correct social maladjustment.

“Examining workers’ wages, living expenses, housing conditions, family size, working conditions, diets, and other data, progressive reformers studied, analyzed, and then offered measures to correct inequity and insure social justice…

“As firm believers in the American democratic process and in American institutions, reformers called on the government to legislate against political, social and economic wrong doing…”

* * * * * * * *
And the Progressives wielded mighty clubs – the era’s hot new media such as mass circulation magazines, as well as daily newspapers (New York City had a half dozen or more dailies) were their communication outlets.

This was the time of the muckrakers – whose words were eagerly awaited as the uncovered corruption in business and government. Today’s “60 Minutes” on the CBS Network  continues the tradition begun a century ago by Ida Tarbell (nemesis of Standard Oil), Upton Sinclair (whose novel about big oil was recently made into the movie, “There Will Be Blood,” starring Daniel Day Lewis), writer Lincoln Steffens, and others.

The progressives brought about a better country with their reforms. Their work was instrumental, I believe, in creating the conditions that led to the rise of the middle class – the engine of our GDP (2/3 of the US economy). Millions of Americans were the beneficiaries of the progressive thinking of 100 years ago.

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Of course, conditions are different in 2008 and 2009, aren’t they? OK, let’s admit we’ve made tremendous progress as a society since the early 1900s. Thank the progressives for that.

The problems and challenges and issues of our age will be addressed in different ways, it appears, after January 20, 2009.

The early 20th Century progressives were united by a number of forces. Based on what I have been seeing in recent months – one example was the Barack Obama campaign fervor – this Millennium Generation, approaching positions of influence and power – may revive the spirit of the early Progressive Movement, especially if they unite to bring about important changes.

Stay Tuned to the shift taking place in public opinion, the shift from right-to-center or even center-left, and the drive for a better quality of life in this great nation. We may be on the verge of something really exciting – with expanding (not contracting) opportunity for most Americans! The best that our nation can be…may be just ahead of us.

Your thoughts?

(for more details on the Progressive Movement, read “The Progressive Movement, 1900-1917,” by A.J. Scopino, Jr; 1996m Discovery Enterprises Ltd.)

Photo: Crowded cities: The original Progressive Movement came together more than a century ago.  Under conditions that include several sounding a bit familiar in 2008.  Immigrants were flooding into the US (the late-1800’s waves came from Italy, Eastern Europe, Russia, and other lands) and many of the recent arrivals were living in terrible conditions as they landed and remained in the crowding cities.

The 21st Century Company — What Can We Expect?

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by Hank Boerner

When my partner Lou Coppola and I were discussing concepts for a conference with Chris Skroupa and the Skytop Strategies team last year, we talked about the fascination that we all seem to “have with decades and centuries.” And even “Millennia” — we are now in the Third as the calendar changed from “1900s” to “2000s.” . And of course we talked our fascination with “looking ahead” to divine the future.

The musings led to the wonderful event that we had in May 2016 at Baruch College / CUNY, our gracious hosts for the “21st Century Company” conference. I’d like to share my opening comments for that conference with you.

In “decades” we talk about the Roaring 20’s, the 1960’s social and cultural revolution, In centuries we think about traditions of the Victorian Age — taking up most of the 1800s.

Time magazine publisher Henry Luce dubbed the 20th, “The American Century.” And it was, in so many dimensions: economic, cultural, militarily, industrially, financially, and so on.

Remember the discussion about when exactly the 21st Century would begin – in year 2000 or 2001? And how the world’s IT network was about to melt down because we had only two digits for dates in old software? An estimated $100 Billion dollars were invested in “Y2K” programs by business 1995-2001

Y2K was a good example of progress made in the new century based on technology and scientific advances in the prior century. We saw that throughout the 20th Century — tinkerers building on 19th and 18th and even 17th Century advances.

“Tinkerers” create by leveraging the old for the new — and that’s how we advance in our society — how we create value – create new industries — create new wealth for the many. (And, of course, for the fortunate few, the 1%, as well.)

In the 1760s – the 18th Century – Scotsman James Watt tinkered with steam power.
He experimented with stethoscope tubing and tin cans — building on advances earlier in the century.

Watt’s tinkering led to harnessing the power of steam In the 19th Century, tinkerers put the steam engine on a wagon, and pulled carriages behind. The vehicles were “in train,” so they called it “a train” pulled by the steam-powered locomotive. Many of us got here this morning “by train.”

Soon railroads were everywhere, carrying people and freight. The great American prairies of the Midwest and Southwest stretches of flat land (like Oklahoma and Texas) were settled and a mighty agriculture empire arose mid-continent.

The farmland output — the harvested crops — would concentrate in factories and the nation would have packaged foods – think of cereals – as well as abundant pork, beef, buffalo and other meat products.

A tinkerer in the 19th Century – Samuel Morse – put electric stimulation through wires to convey messages. He gave us the telegraph. Recently some observers called the telegraph the “Victorian Internet.” At this point in my presentation at Baruch I held up glass standoff — it’s silicon in nature. The standoff should be familiar to you — you will see it atop the crossbar along railroad tracks; it insulated the telegraphy and later telephone wires.

Silicon was fundamental to 20th Century electronic technology. In the last century there would be a valley named for Silicon because of the importance of the simple “sand” element. Silicon is found in radios, cameras, phones, computers.

The telegraph concept’s success led us on to telephony, radio broadcasts, television, and the global Internet with its wondrous World Wide Web (www.”whatever” you like).  Tinkerer Tim Berners-Lee created the Web – and made it available to all of us with no strings attached.

At the end of the 19th and into the 20th Century, tinkerer Thomas Edison brought forth amazing devices – spawning giant industries! Think of the electric utilities – built on the genius of Edison.

He experimented with 6,000 plant materials to find a light bulb filament that worked and would last for the consumer. Carbonized bamboo was one solution. If you drive around the City of Fort Myers, Florida, you’ll see bamboo plants here and there. And the Edison and (Henry] Ford Winter Estates features family gardens and a research lab. When Thomas Edison bought his property he found bamboo growing there and experimented with that plant for his light bulb filaments. Henry Ford played around with plants to grow a domestic source of rubber (latex) for his auto’s tires. Such in the fascination with the wonders of nature for tinkerers!

Edison’s great insight was that a central generating system — the dynamo — with wires running to homes and business would create a new category of business services.

At the time of his death in 1931 the still expanding electric utility business was a $75 billion business in current dollars!

His tinkering gave us moving pictures (“movies”), the phonograph and other machines that would change our business and personal lives.

Remember James Watt of Scotland and the primitive steam engine? Steam power was soon everywhere — powering railroads, providing power for factories and globe-roaming steam ships, telegraph, electric power to change night-to-day – all marvelous inventions in the 19th Century.

So: How to build on that in the 20th?

Enter tinkerer Henry Ford. He worked in an Edison electric plant in Detroit. He tinkered and developed practical “automobiles” and put Americans on the road and changed our way of life.

Ford built on the legacy and foundation of the prior centuries. On earlier advances in metals, rubber, instrumentation, wiring, steel making.

Henry Ford’s Model T was everywhere. He also revolutionized the workplace, bringing the work to the worker on the assembly line.

His workers had the opportunity to earn $5 per day – two times what other industrial workers earned. This was an important 20th Century economic insight – that way they could buy the cars they made!

Sometimes progress comes slowly.

Here’s a fascinating story: Car and Driver magazine staged “The Race of the Century, Ford Model T vs. Tesla Model S” last year. This was a contest pitting a 1915 “T” Ford against a 2013 Tesla. Guess who won? The route was Detroit to Shoreham, Long Island, just under 700 miles.

The restored Model T had to take all non-expressway roads while the Tesla zoomed along at 68 mph on the interstates. But down time for re charging meant the actual speed over the route was in the 30s for the Tesla.

That was less than the 100-year old Model T — it hit 40’s regularly and even 68 MPH doing down hills. The Ford had numerous pit stops and its battery actually blew up from overuse. The drivers had the windshield down – imagine driving all that distance with wind in your face and no cover (roof) or surrounding windows as you zipped along.

Battery charging stations had to be set up with volunteers along the route for the Tesla Access to 100-AMP service was needed for the Tesla – thank you, Thomas Edison for electric power everywhere!

The Tesla won by a very slim margin.

The final destination was the Tesla memorial, honoring Nikola Tesla, the competitor to Thomas Edison, who built a giant electrical testing tower in Shoreham, New York. (Organizers are trying to create a museum there to honor Tesla and his experiments.)

We can look to 21xt Century “tinkerer” advances in battery power and rapid recharging stations — that will address these immediate challenges.

Tinkerer Henry Ford, meet tinkerer-extraordinaire  Elon Musk!

Tinkerers innovate – new products, new services, new technologies, new approaches – on the foundations of prior advances.

The move from tinkerer’s garage to giant publicly-traded enterprise can be rapid – look at Apple, in relatively quick time attaining the largest market cap in history.

There are challenges: As the innovative product or service grows, how is the venture to be managed? Financed? What will the relationship of company and society be? Relationship of investor and board and management?

For a time, owners – tinkerer owners-cum-capitalists John Rockefeller,  Andrew Carnegie, Henry Ford — were virtual rulers. The growth of the capital markets shifted power to the provider of capital.

“Management,” a 20th Century term, over time became more important than “owner.”

Here we are in second decade of the 21st Century – typically, the large corporation is globalized, automated, complex, a dominant force in our society.

The tinker=-owners are replaced by professional managers and the enterprise owned by “atomized” owners — their holdings are 1% or less of the total (and hence, “like atoms” in the words of authors Adolf Berle and Gardiner Means in the 1930s in their work, “The Modern Corporation and Private Property“).

What will be the defining characteristics of the 21st Century company in terms of Company and society relations? Organizations will be flatter — less layers of management, more dispersed responsibility, less command-and-control in the 20th Century sense. There’ll be more automation, more technology replacing people. (More robots / less human hands on control knobs, levers or control sticks of machinery.) More machine-talking-to-machine. that’s happening in industrial settings now, with numerous devices sending data to central databases for analysis and sharing to lead to better best practices at dispersed industrial locations.

In this 21st Century we are in an era of great expectations – stockholders (the atomized owner interests) and stakeholders (the new keys to success for the large enterprise) expect the 21st Century company management to be more sustainable, socially responsible, “good citizens,” Open and transparent. Accountable to stakeholders.

Companies today are in so many ways are viewed to be “citizens” of the nation and world – what does that mean? What are “good corporate citizens?” How will we be defining “corporate citizenship?{ Stay Tuned!

We explored all of that and more in our Skytop-Governance & Accountability Institute co-presented conference at Baruch College.

There’s more information at: . https://skytopstrategies.com/21st-century-company/

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