Viva Italia -- Part II

The view from St. Peter's at sunset

The on and off rain when we landed in Rome didn’t last long.  It cleared up by the time we registered at the hotel and wandered around the corner for lunch at Café Teatro.  I had the carbonara; Suzanne had the arrabbiatta.  It was fabulous. 

When I wrote about our prospective trip in August last year (Viva Italia), the Euro was at $1.45.  I speculated that 2012 would be a good year to go as I thought the Euro might actually be worth as little as one dollar.  Unfortunately, the foreign exchange market had other plans.  The Euro was $1.28 by the time we left and nearly $1.30 by the time we headed home.  I am not looking forward to my American Express bill. 

I remember fondly the days of the Italian Lire.  On my last visit, I bought a leather coat for about $140.  The Lire was losing value so fast that I was able to negotiate a better price by paying in dollars.  In fact, I never bought any Lire.  I just used dollars for everything.  The Euro has changed all that. 

Of course, the debt crisis has led to talk of Italy leaving the Euro.  In Rome, the general manager of Hotel Mascagni was pretty clear that he did not want Italy to leave the Euro.  I asked him how he thought the new president, Mario Monti, was doing.  After 8 years of Berlusconi, he was doing as well as he could, he told me.  But, taxes were going up.  “He has to find money somewhere,” he said in perfect English.

In Florence, we stayed at the Hotel de la Ville on Via Tornabuoni.  It’s Florence’s equivalent of Palm Beach’s Worth Avenue.  Luxury goods were flowing from stores including international brands we know in the States:  Gucci, Rolex, Ferragamo et al.  We met designer/proprietor Davide Cerasi in his 12 by 20 foot shop along the River Arno where my wife bought a beautiful leather jacket.  Signor Cerasi is not well known here but he does sell his goods through Nordstrom’s.  There were no bargains to be had and paying in dollars is no longer an option.

Curved buildings in Siena

On a rainy day, we took a tour to Siena.  The walled city and the winding streets were lined with the same luxury brands we found in Florence.  No bargains to be had here either.  The beautiful young woman behind the counter in one shop wasn’t upset by the rain.  She had been told by her boss to work a double shift to cover for a sick co-worker.  I asked her if that stressed her out.  She shrugged.  “How do you say stress in Italian?”  I asked her.  “There is no word for stress in Italian,” she replied. 

Vogue Night Out

September 18 was Vogue's Fashion Night Out in Florence.  The paparazzi were out and the high end stores were serving free booze.  The Rolex store next to our hotel was having a private bash.  The street party was still going when we headed back to our hotel at around midnight.

Before we retired for the night, we stopped in a little square where local designers had set up some stalls.  It was there that I spotted a tee shirt for sale emblazoned with the slogan, “Capitalism is Over”.  I tracked down the proprietor and asked him how much.  “35 Euros,” he said. “I guess capitalism isn’t over for makers of tee shirts,” I replied.  He mumbled something about the profits going to earthquake victims.  “Really,” I said, “Which one?”  He looked a bit embarrassed and finally admitted that “well, maybe there is about 10 Euros of capitalism left in that price.”  If capitalism is over, it wasn’t evident during Vogue’s Night Out.

The bellman who helped us with our bags when we checked out of the Hotel de la Ville offered a perfect counterpoint to the earlier perspective we got from the GM of Hotel Mascagni.  “We were better off with the Lire,” he said in broken English.  As for Berlusconi vs. Monti?  “Sono uguali.”  The same.  “Una macchina grande, una casa grande….”  Once they have the big car and the big house, they don’t care for the little guy.  Of course, if you want to throw a party, he added, then go with Berlusconi.  Hah!

How will Italy overcome its fiscal dilemma?  Will they drop the Euro?  How will all this affect the Italian economy?  What will happen to the common man – the bellman, etc.?  I might have learned more about all that by staying home and reading the Wall Street Journal.  But, here’s the lesson I would never have learned by staying home: 

There is no word for “stress” in Italian.

How Would Jesus Vote? Collectivist or Objectivist?

Our phone hasn’t stopped ringing for months and it likely will continue for the next 8 weeks.  If you live in a swing state, you are no doubt experiencing the same thing to say nothing of the incessant attack ads on TV.  I was already burned out before the conventions started.  Did you watch any of the speeches?   I can say (and I am hardly alone on this) that the only one that stood out for me was that of former Secretary of State Condoleeza Rice. 

It stood out not because it was articulate and instructive (although it was).  But rather because it spoke to the collective will of Americans to embrace public policy.  That word – collective – has attained a certain tinge these days.  The battle between Democrats and Republicans has, in some circles, been portrayed as collectivism vs. objectivism.  In that context, collectivism is portrayed as central government creating policies intended to structure social and economic outcomes.  At its extreme, collectivism is best represented by the Soviet system.

Objectivism gave expression to an ethic that relies upon self sufficiency.  It gained notice in the 1920’s and 30’s because of the government’s shift in the direction of collectivism.  Its champion, Ayn Rand, believed that men have a moral right to pursue happiness in the real world.  The real world, being objective, was separate from one’s consciousness.  In Atlas Shrugged, she said, “My philosophy, in essence, is the concept of man as a heroic being, with his own happiness as the moral purpose of his life, with productive achievement as his noblest activity, and reason as his only absolute.”

So, how would Jesus vote if he had a choice between these two philosophies?

The early English settlements in North America – most notably Jamestown – were unsuccessful because they had only a commercial purpose.  And, the pioneers who settled them were not pursuing their own purpose but rather that of the English crown.  But, the Mayflower settlement, led by John Winthrop, established a religious community with the goal of starting fresh, separate from the corrupt churches of Europe.  It was this higher purpose that drove them to succeed.  But their success was not enabled by government.  It was enabled by a Christian ethic of hard work and sacrifice for the benefit of the community.  This form of collectivism was grounded in a common religious belief and the need to survive in the new world. 

So, was the Mayflower settlement objectivist or collectivist?  I submit that it was both.  Its very survival depended upon both a sense of responsibility for oneself and family as well as a responsibility toward the community.  There was “productive achievement” to use Rand’s words as well as a collective purpose intended to structure social outcomes.   This ethic – a Protestant ethic – prevailed in this country until the 1950’s. 

Condoleeza Rice

Most of the Republicans who spoke in Tampa advocated objectivism in its purest form.  They referred often to the striving of successful people who started with nothing.  It was left to Dr. Rice to address our Christian instincts (although she limited her remarks to foreign policy):  “I know too that it has not always been easy -- though it has been rewarding -- to speak up for those who would otherwise be without a voice -- the religious dissident in China; the democracy advocate in Venezuela; the political prisoner in Iran. It has been hard to muster the resources to support fledgling democracies -- or to help the world's most desperate -- the AIDs orphan in Uganda, the refugee fleeing Zimbabwe, the young woman who has been trafficked into the sex trade in Southeast Asia; the world's poorest in Haiti. Yet this assistance -- together with the compassionate works of private charities -- people of conscience and people of faith -- has shown the soul of our country.”

It is hard not to identify with her remarks.  She speaks of American hegemony in human terms.  We can relate to the needs of those less fortunate, suppressed by dictators and lacking the freedom or the resources to do anything about it.  Our concern and our tax dollars speak to our Christian instincts.

Would Jesus vote for that?

Throughout the New Testament, Jesus and his apostles promote the value of hard work but always specify that the ends are for the glory of God not the idolatry of money.  The Apostle Paul said, “Whatever you do, work at it with all your heart, as work for the Lord, not for men.”  Jesus promoted the value of hard work and focused on the ends to which men worked.  “Do nothing out of selfish ambition or vain conceit.  Rather, in humility value others above yourselves.” Phil 2:3.  This stands in stark contrast to Objectivist philosophy.  Indeed in Mark 10:17-25 he said, “It is easier for a camel to go through the eye of a needle than for someone who is rich to enter the kingdom of God.”  That’s hard to hear for those of us who think of ourselves as Christians and strive for greater wealth. 

In the reality of 21^st Century America, there is evidence of capitalism working for the collective good.  In Charlotte, NC (where the Democrats held their convention), Siemens AG, a German electronics manufacturer, has built a factory and created over 800 new jobs rather than go to a low wage country like India or China.  Their decision to build in NC was the result of state and local governments investing in infrastructure and the schools meeting some specific education requirements.  So, is this an example of collectivism or objectivism?

It clearly stands in contrast to the policies of both parties.  The Republicans would seek to limit the role of government and Democrats would simply shower money on industries they favor, like the clean energy industry. 

A local (S. Florida) entrepreneur and radio personality, Neal Asbury, has written a book called Conscientious Equity in which he outlines trade policy that would alleviate much of the world’s suffering. Neal is very much an objectivist.  Yet, he understands that, as a business owner and community leader, he has a responsibility to his employees.  Over the last few years, Neal’s Company (The Legacy Companies) has made several acquisitions.  In each case, he has invested in upgrading factories and improving products.  And, in each case, he has added American jobs.  It is likely that Neal could make a few more dollars if he outsourced to Asia where he lived and worked for 20 years.  However, Neal believes he has a responsibility to his country and his stakeholders. 

I have no idea how Jesus would vote and I would not presume to instruct anyone on his behalf.  But, I know true LEADERSHIP when I see it.  Whether it’s a successful capitalist who feels he has a responsibility to his country and his employees or government leaders who achieve real results for their communities, the marriage of objectivism and collectivism works in the 21^st Century just as it did for the Mayflower settlement.

So, how would Jesus vote?

ACKNOWLEDGEMENT:  I would like to thank my brother, Chris, for his help on this piece.  Chris has a Master’s degree from MIT and is an elder in his suburban Atlanta church.  He reads his Bible daily.  A scientist who is also religious.  Imagine that!

When Johnny Comes Marching Home

I got a phone call last week with the best news I have heard all year.  It was from a young Marine Corps veteran who told me he found a job!  I wish I could take credit for it but I can’t.  He found it on his own after more than a year of unemployment.

My New Year’s resolution this year was to help at least one veteran find a job.   The blog post titled "Occupy This!" outlined the challenge facing veterans in this difficult economy.  I thought this would be easy.  After all, military veterans are disciplined and goal-oriented.  In addition, there is a tax break for employers who hire veterans.  Who wouldn’t want to hire a vet, thought I?

Almost everyone, as it turns out.  I was blown away by how difficult it is.  Some of the objections fell into the usual categories.  “This is not a good time.”  “He’s not a good fit.” Others were blunter.  “Not very polished,” said one hiring manager. 

It’s no wonder that in May, the Bureau of Labor Statistics reported the unemployment rate for combat veterans under 25 was 29.1%. 

Our nation has always endeavored to care for veterans but it hasn’t always turned out well.  It was an excerpt of Abraham Lincoln’s second inaugural address that has become the motto of the Department of Veteran Affairs:  “…to care for him who shall have borne the battle, and for his widow and his orphan.”

Lafayette Park 1932

But, budget cuts always follow wars and veterans often find they are left out in the cold.  Veterans camped out in Lafayette Park across from the White House in 1932 to protest government’s failure to follow through on the promises of the World War Adjusted Compensation Act of 1924.  General Douglas MacArthur ordered the third cavalry (commanded by Major George S. Patton) to attack them.  Fifty-five were injured and 135 were arrested. 

About 4 years ago, I joined the board of the Florida Chapter of Operation Homefront.  It’s a national non-profit whose mission is to support veterans and their families.  It’s a great organization.  Operation Homefront has received the highest rating from Charity Navigator for six years running.  Ninety-four percent of funds received by Operation Homefront go to service delivery.  A scant 3% goes to overhead.

Our mission has morphed as the needs of combat veterans have evolved.  At first, it was helping young families cope with the absence of a breadwinner and parent.  Then, the focus became helping the severely wounded transition back to civilian life.  Along the way, I heard some heartbreaking stories.

Now, the focus is on helping veterans find jobs.  But, we are not alone.  There are hundreds of charities with a similar objective.  United Way of Broward County has brought many of these groups together under the banner of “Mission United”.  The goal is for all of the South Florida charities dedicated to helping veterans to become aware of each others’ capabilities.  No need to duplicate efforts if we can refer our veteran clients to another group whose operations are better suited to the needs of that individual, right?

It’s important for community leaders to raise awareness and support this cause.  But, ultimately what matters is what’s happening at the street level.  I haven’t made an academic study of the problem but I will tell you what my experience has taught me.  The problem is not the vet; it’s the employers – the business owners, the corporate hiring managers. 

By way of explanation, I’ll tell you a personal story.  When I was with Citicorp Diners Club, the diversity police (from New York) showed up at our little outpost in Denver.  “Not enough women and minorities at the VP level,” they decreed.  In response, the president of Diners Club commanded that every other new hire at the VP level must be a woman or a minority starting with the very next one. 

It was an eye opening experience.  We found many qualified applicants we might never have interviewed were it not for the tops down directive.  During this period, an executive recruiter actually admitted to me that he would never have sent me an applicant who wasn’t a white male had I not directed him otherwise. 

So, imagine what might happen if a substantial number of hiring managers decided that every other new hire would be a veteran?  I should say that there are some challenges to overcome.  From my personal observation, I would summarize them as follows:

1. When I was discharged from the Navy, nearly every hiring manager was a veteran.  They understood the value.  Now, it’s exactly the opposite.  Few hiring managers are veterans and they don’t understand the value.
2. There is a language barrier.  Military folks speak in acronyms.  Even if they spell it out for you, you still can’t understand what they did in the military.
3. What employers are looking for today is specialized experience.  What veterans bring are general skill sets – leadership, goal-orientation, discipline.

But, those obstacles can be overcome if we, as a business community decide they should be.  There is no reason that the strengths of a military candidate can’t be a great offset to their perceived weaknesses.  Tommy’s new job has little or nothing to do with his background in the military.  He was a logistics specialist.  Now, he is a grade school coach for kids.

What’s needed is for each of us to decide that WE will lead.  So, here is my call to action.  If you are in a position to hire, decide to hire a veteran.  Make it your goal.  Decide to overcome the challenges.  In other words, if you say you support the cause of veterans, put your money where your mouth is.

So, this week’s answer to the question WHO WILL LEAD? is… YOU.

YOU WILL LEAD!