The Sociopaths on Wall Street
However, since the 1980s—some would argue sooner—there has been a deterioration in corporate ethics in many sectors. Certainly the S & L crisis, the ethical failures of the Exxon Valdez episode and the deaths and lack of financial responsibility associated with the Union Carbide Bhopal disaster—all three occurred in the 1980s—makes it clear that the interpretation of deregulation in that era was far too often synonymous with ethical lapses in the executive suite. From the end of the Reagan era until the end of George W. Bush's time in office, the interpretation has only gotten worse. Actually, in very little time, deregulation went from a need to adjust regulations to make them fairer and more sensible to becoming an outright license to break the law and defraud people in various sectors of society.
There have always been lapses among corporation and there has been debate about how much or how little a corporation should do. There have also been corporations, all along, that cut corners in order to gain an advantage over other corporations. A general rule of thumb in business is that competent people can always make money as long as everybody plays by the same rules. Unfortunately, people who are not very honest or competent or both are generally the first to look for short cuts, including favors from politicians.
The reality is that both parties are susceptible to influence peddling. Unfortunately, Republicans have pretty much made deregulation, as well as other ethically challenged ideas, pillars of their political philosophy. In addition, if an ethically-challenged business executive makes enormous profits, many Republican politicians, are notoriously slow to recognize that there is a problem (e.g., Kenneth Lay and George W. Bush). The most telling sign is that when a rational and honest Republican prosecutor tries to uphold the law, that prosecutor may find himself without a political future in the Republican party.
One of the problems with today's business world is the number of ethically challenged people who are allowed to rise to the executive suite in the first place. In Bloomberg, William D. Cohan has an article that discusses a theory by Clive R. Boddy about Wall Street psychopaths:
Clive R. Boddy, most recently a professor at the Nottingham Business School at Nottingham Trent University, says psychopaths are the 1 percent of [people who] ... "lack a “conscience, have few emotions and display an inability to have any feelings, sympathy or empathy for other people.”
(snip)
He says [psychopaths] seem "to be unaffected" by the corporate collapses they cause. These psychopaths "present themselves as glibly unbothered by the chaos around them, unconcerned about those who have lost their jobs, savings and investments, and as lacking any regrets about what they have done. They cheerfully lie about their involvement in events, are very convincing in blaming others for what has happened..."
It worth recalling that John Dean has written a book called "Conservatives without Conscience." Dean was not talking specifically about psychopaths, and certainly not corporate psychopaths, who are basically a class of very smart criminals who are much more sophisticated than ordinary criminals without conscious (who in any case frequently end up in prison). But Dean was very much talking about people who are authoritarian by temperament. I would also add that people like Newt Gingrich and George W. Bush strike me as extraordinarily narcissistic and are clearly among the type of people Dean talks about. For both Bush and Gingrich, life is all about them.
But today's Republican party has other other problems as well. What is it about the Republican political class that they look the other way when a Republican politician obviously lies? And why is it that they refuse to set the record straight when others obviously lie about Barack Obama (birthers) or lie about John Kerry (swift boaters)? And why is it that the Republican political class failed to notice the obvious economic disaster we were heading for as Wall Street and the banks were allowed to engage in reckless behavior?
Here's the scholarly link to Boddy's paper.
And here's a link that provide a more accessible version to Boddy's paper.
Labels: 21st Century issues, American Crisis, corruption, Republicans


