What do Donald Trump and I have in common?  Both of us have been relatively silent for the past few days. Trump is trying to keep inconvenient legal matters from getting worse.  In my case, it is the constant challenge of finding topics which are not already adequately covered on television, newspapers or on-line outlets.  Today’s post is dedicated to a few stories and observations which have been overlooked this past week.

Don’t Look Over Your Shoulder

Remember the Tax Cut and Jobs Act of 2017 and how it was touted as a major boon for the employment prospects of middle class Americans?  Despite all the historic economic evidence to contrary, proponents claimed the “trickle down” effects would result in more jobs and higher income for “those left behind” during the recovery from the 2008-09 recession.  In contrast, opponents predicted corporate beneficiaries would use the savings for stock buy-backs to solidify control and their share of future profits.  Turns out both are probably wrong.

Several recent reports suggest the major trend in business activity for 2018 will be mergers and acquisitions.  Business Insider reports:

Goldman (Sachs) forecasts that cash M&A spending will climb by 6% to $355 billion in 2018. That will, in turn, boost the stock prices of companies with a high chance of being bought. As a result, a basket of likely M&A targets is poised to outperform in 2018 after trailing the broader S&P 500 in 2017, according to Goldman.

Let’s parse this statement.  First, it refers to “cash M&A spending.”  Where did all that new cash come from?  That’s easy, savings from reducing the maximum corporate tax rate by 15 percentage points.  Second, this activity will “boost stock prices.”  In other words, the owners will be the primary beneficiaries of these paper transactions.  Third, and most important, when was the last time a merger resulted in job growth?  A 2016 study in the Journal of Competitive Policy International reported a job loss by 6.5 percent of the 3.7 million employees affected by mergers and acquisitions between 2013 and 20116.

Linda Brown’s New Legacy

In 1953, a nine year old African-American student wondered why she could not attend a neighborhood school with the friends she grew up with.  With the help and support of her father, Linda Brown, who died this week at the age of 76, changed history.  This week she is being honored posthumously for her central role in Brown v. Board of Education of Topeka, Kansas, the Supreme Court case which stated segregation in education was a violation of the U.S. Constitution.  The world is significantly different because of this brave, young girl’s willingness to challenge “existing case law.”

For the Supreme Court to rule in Linda Brown’s favor, it had to do something it rarely does.  It invalidated a previous decision Plessy v. Ferguson (1896).  In the Plessy v Ferguson 7-1 decision, the Court rejected the plaintiff’s contention that segregated schools were de facto unequal in quality.  The lone dissenter Justice John Marshall Harlan, in closing, predicted how history would judge the Court’s action.  “In my opinion, the judgment this day rendered will, in time, prove to be quite as pernicious as the decision made by this tribunal in the Dred Scott Case.”

In 1954, by a unanimous decision, the Court voted to overturn Plessy v. Ferguson.  Speaking for the Court, Chief Justice Earl Warren did not mince words.

Segregation of white and colored children in public schools has a detrimental effect upon the colored children. The effect is greater when it has the sanction of the law, for the policy of separating the races is usually interpreted as denoting the inferiority of the negro group. A sense of inferiority affects the motivation of a child to learn. Segregation with the sanction of law, therefore, has a tendency to [retard] the educational and mental development of negro children and to deprive them of some of the benefits they would receive in a racial[ly] integrated school system

Which brings me to Citizens United v. Federal Elections Commission (2010).  In the 5-4 decision, Justice Anthony Kennedy wrote:

The First Amendment protects political speech; and disclosure permits citizens and shareholders to react to the speech of corporate entities in a proper way. This transparency enables the electorate to make informed decisions and give proper weight to different speakers and messages.

Yet in a 2015 interview with Harvard Law Dean Martha Minow, Kennedy admitted the dependence on disclosure to protect the public interest has not worked the way he envisioned.

Just as a flaw in the basic premise of Plessy v. Ferguson forced the court to reconsider its decision in Brown v. Board of Education, maybe it is time for the Court to take a second look at Citizens United.  Couldn’t hurt!

Is Michael Cohen Lazy?

I have been asking every trained attorney I know, “Is it not strange the non-disclosure agreement (NDA) between Donald Trump and Stormy Daniels contained the phrase ‘and matters related to paternity’?”  But if you believe Daniels is credible, you also must believe she is telling the truth when she says her one-night stand with Trump did not result in a pregnancy.  There was no love child or abortion to further complicate the relationship.

But last night, another possibility arose.  On CNN, Daniels’ attorney Michael Avenatti told Wolff Blitzer he had now been approached by eight additional women you claimed to have had relationships with Trump.  And in two cases, the women said they too had signed an NDA.  (NOTE: Avenatti stated his legal team has not yet verified any of these claims to date.) What if the NDA Daniels signed was “legal boilerplate?”  What if Trump’s attorney Michael Cohen was just too lazy to draft NDA’s which applied only to disclosure concerns associated with each respective paramour?  It might explain why Cohen is so anxious to enforce the Daniels NDA.

Just Glad I Didn’t Spend It Already

One of the nice features of TurboTax is the ability to estimate tax liability for the next year.  This function is particularly useful if you want to understand how the 2017 Tax Cut and Jobs Act will affect you personally when you file next year.  So I ran the numbers.  My 2018 tax savings is a whopping $310.  Thanks Donald.

Just one problem.  This week when I went to fill up the gas tank in my car, the price of a gallon of fuel had jumped from $2.17 before the tax cut to $2.59.  Working from home, I am lucky that I only use about 20 gallons per month.  Over a year that adds $100.80 to my car expenses.  An incremental increase of one percent in the cost of living over the current rate, due in part to overheating the economy with an unnecessary tax cut, will cost me approximate $400 dollars.  And if I borrow money for some long needed home improvements, the higher interest rates needed to attract lenders to cover the tax-cut related deficit puts me further in the red.

Donald, if you don’t believe me, I’m more than willing to show you my tax returns.  You claim you also will lose money because of the tax legislation.  How about proving it!!

For what it’s worth.
Dr. ESP

This morning I shared a story about my meeting with Moscow Oblast Governor Anatoly Tyazhlov who had predicted the rise of a fascist dictator in Russia.  When Vladimir Putin became acting president of Russia in 2000, he replaced Tyazhlov with Boris Gormov, who had previously run for vice-president in 1991 on an anti-Boris Yeltsin ticket.

When I looked for an image of Gromov, I was struck by his resemblance to someone else with Russian connections.

In case you can’t distinguish between the two, that is Gromov on the left and Paul Manafort on the right.

Just saying.

For what it’s worth.
Dr. ESP

If you haven’t been watching The Daily Show with Trevor Noah, there is a new recurring segment called “Don’t Have Time for That.”  The premise?  You just start digesting one news story before the next one grabs your attention.  This was one of those weeks.  So here are a few topics I considered blogging about but was quickly distracted by the latest breaking news.

Red Flags

Much has been made about the many missed warning signs which strongly suggested Nikolas Cruz, the confessed shooter at Marjory Stoneman Douglas High School, was a potential danger to himself and others based on past behavior and social media posts. Too bad the Republicans will not let the Center for Disease Control or any other federal  agency conduct or support research which might focus on not only HOW to spot these red flags, but propose better methods to respond to them.

But the Parkland shooting, unfortunately shared space on cable news and the front pages of national newspapers when the continuing saga of the chaotic Trump White House reemerged.  In particular, further indictments against Trump campaign manager Paul Manafort and the announcement Chief of Staff John Kelly would make the decision whether son-in-law Jared Kushner would still have access to classified information despite the FBI’s assessment he did not merit the required security clearance.

What “red flag” do these two situations have a common?  Both Manafort and Kushner offered to work for no salary.  In Manafort’s case, the question is, “If he is not taking a salary from the Trump campaign, who is paying him?”  Based on last Thursday’s indictments we are much closer to an answer.  As for Kushner, there is a second question.  “Isn’t the signature on your paycheck an indication for whom you actually work?”  By not accepting a salary for the work he performs as a public employee of the American people, does he feel he is not bound by the same rules as those who actually deposit their due compensation?

Referring to General Kelly’s disposition of Kushner’s status, Trump said, “And I have no doubt he will make the right decision.”  But, for whom?

November 9, 1994

Speaking of “red flags,” on the morning of November 9, 1994, I was in Moscow on a USAID funded project conducted by the National Governors Association (NGA) to build better relations between U.S. governors and their Russian counterparts.  My first meeting was with Anatoly Tyazhlov, the governor of the Moscow oblast (equivalent of a state) and chair of the Association of Russian Governors.  Governor Tyazhlov asked me what I thought of the American mid-term elections the day before when under the banner of “The Contract for America,” the Republicans picked up 58 seats and control of the House and eight Senate seats.  I told Tyazhlov I believed it was a reaction to what many Americans saw as an extreme shift to the left by President Clinton and the Democratic Congress.  My fear was that there would be an over-reach in the opposite direction.

To my surprise, Tyazhlov told me he had the same fear for Russia.  After years of communist rule, he expressed concern that his homeland would also swing too far to the right.  Especially if the current government (headed by Boris Yeltsin)  did not relieve the economic distress many Russians were experiencing following the dissolution of the Soviet Union and cradle to grave care.  We should have listened.  Less than six years later, Vladimir Putin was elected Russian President.

NO Surprise

Except for a few sadistic conspiracy theorists (including Donald Trump Jr.), everyone is heaping accolades on the students from Douglas High School for their efforts to shed some light on the issue of gun violence in America.  However, almost every positive review is prefaced by a statement of amazement about the bravery and commitment of these young people.  Who knew?  Well, anyone who had studied every previous cultural movement in the United States.

It was a generation of young people who rode buses to the Deep South to protest segregation and register black voters.  Some were beaten.  Others–Michael Schwerner, Andrew Goodman and James Chaney–were murdered by members of the Ku Klux Klan.

Ten years later, it was young people who challenged the government over the Vietnam war.  And it was the death of four Kent State students which signaled one more, “Enough is enough.”

Young people have been at the forefront of the LGBT movement.  And protection of the environment. And the effort to decriminalize and legalize marijuana.

So why should we be surprised when students who have been in fear for their own lives are willing to stand up and lead the debate over America’s addiction to guns?

Bill Strickland

Anyone who believes “hardened schools” will lead to anything but “hardened students” needs to visit the Manchester Craftsman’s Guild (MCG) in Pittsburgh, Pennsylvania.  In 1968, Bill Strickland asked a simple question, “Why should inner-school schools look like prisons?”  Instead of bars on the windows, each table in the cafeteria has linen table cloths and flower centerpieces.  Students engage in culinary, music and horticultural activities all of which have become profit centers to support MCG’s operations.  The music program has received five Grammy awards for its “Live at the Manchester Craftman’s Guild” recordings.

Despite its location in an old warehouse district which used to be a place for drug deals and gang confrontations, safety is not an issue.

In our forty-plus year history, MCG Youth & Arts has never had an incidence of violence at our facility. To quote our founder, Bill Strickland, “If you put people in a world class facility, you get world class citizens.” We have filled our building with light, art, music and a staff dedicated to realizing the genius in everyone.

So to all those who sent their “thought and prayers” to the students at Douglas High School and every other site of a campus based mass shooting and believe armed teachers are the answer, may I suggest you open your Bibles this Sunday to Galatians 6:7, “Be not deceived; God is not mocked: for whatsoever a man sows, that shall he also reap.”

For what it’s worth.
Dr. ESP

Ernest Hemingway once said “Every true story ends in death.” Well, this is a true story.

This quote is the voice-over at the beginning of the 1971 television movie Brian’s Song, a story about the friendship between two members of the Chicago Bears football team, Brian Piccolo and Gayle Sayers.  Their bond was solidified when each faced a turning point in their lives.  On November 3, 1968, Sayers, a five-time All-Pro selection, tore ligaments in his right knee.  Piccolo, who was Sayers’ back-up at running back, was instrumental in helping Sayers during his rehabilitation, knowing that post-recovery, he would again be relegated to the second string.  A year later Picollo was diagnosed with embryonal cell carcinoma.  Sayers was a constant source of strength for Piccolo and his family until his friend’s death in June 1970.

My thoughts turned to Brian’s Song following the death on Tuesday of Dominic Coletto, a new friend, whom I met only six months ago.  When we were first introduced, I learned he was undergoing chemotherapy.  One would certainly have forgiven him if he had turned inward and focused on himself and his family.  Instead, he devoted a considerable amount of time to helping me work through issues associated with my struggling business.  Some might say it was just a distraction to keep his mind from centering on his health situation.  But something else was clearly in play.

It was the unwelcomed call Wednesday morning from the individual who had brought Dominic and me together that triggered my recollection of Brian’s Song.  Perhaps it was the depiction of Sayers receiving the George S. Halas Award for Most Courageous Player a month before Picollo’s death.  Sayers was honored for his successful comeback when many predicted his football career was over.  Sayers told the audience:

You flatter me by giving me this award, but I tell you here and now I accept it for Brian Piccolo. Brian Piccolo is the man of courage who should receive the George S. Halas Award. I’ll accept it tonight but I’ll present it to Brian tomorrow. I love Brian Piccolo. And I’d like all of you to love him, too.

However, as I Googled the text of Sayers acceptance speech, one of the links took me to the IMDB page of quotes from the 1971 film.  And before I reached the one I came for, I was drawn to another.  The voice-over at the end of the film when George Halas (portrayed by Jack Warden) reminds us we are defined by our lives, not by the timing or circumstances of our deaths.

Brian Piccolo died of cancer at the age of 26. He left a wife and three daughters. He also left a great many loving friends who miss and think of him often. But when they think of him, it’s not how he died that they remember – but how he lived. How he did live!

Except for the fact Dominic was 55 years old, Halas’ words are equally true of our friend.  He too leaves a wife and three daughters as well as many friends who already miss him.  And we will remember how he lived.  How he did live!

For what it’s worth.
Dr. ESP