Voila Les Misérables!
(The Omen of the Crisis
in France)
William R. Hecht
November 11, 2005
Though it is popular today
in many circles to bash the French, we should take this moment
to thank them; their experience could save our country.
A spark of injustice set fire
to an entire demographic and the flames still burn, two weeks
hence. How did the refined and socialist French allow this to
happen? -- In a word, disenfranchisement. Somehow these
former colonials were taken in and never digested. The Arabs
of France became citizens but never became French. Perhaps they
were tokens of the glory of the French Foreign Legion until they
remained too foreign, while their presence in the jails and the
unemployment lines became, well, legion. Could it happen here
- did it? Was New Orleans post Katrina an hors d'oeuvre
of the cuisine yet to come?
We don't have France's unemployed
but there is a growing disparity in this land between the elite
and the working class. Yesterday's WSJ took time to point out
that Wall Street denizens would enjoy a nice year-over-year bump
in salary. Corporate earnings grew fifteen percent last year.
Executive salaries have remained sacrosanct and in the wake of
the Real Estate boom, the lifestyles of the "landed"
gentry have certainly not been compromised. Yet wage growth has
not kept abreast of inflation. And many union groups are looking
down the barrel of a whole new paradigm with which to assess
the value of their toil. Thanks to the "Great Wall"
Mart, that perfect conduit of comparative advantage, that TransPacific
cable of cheap labor, while we employ Chinese, we save money
to spend on other things -- and we may need it one rainy day
when we no longer have any earning power and the only thing we
will bother to buy from China is cheap sustenance: rice. It is
hard for a society to strike a balance between the immediacy
of prosperity and the consequences for posterity. Nobody wants
to stop the whole train just to let a couple of people on. We've
done it before, though - when we had to. Maybe if we took these
Harvard Economics types and asked them to focus for an instant
on the other GDP, the Growing Disenfranchisement of the Poor,
we could figure it out.
We may never need the negative
example of the events in France to teach us or warn us or remind
us of what can happen when an entire class of people are suddenly
aflame with outrage. Or we may not need the reminder for a while,
but as corporations grow in power and influence they can only
exploit on an ever-increasing scale (see Frankenstein
Incorporated). And when political capital is lavished on
the favorite sons of commerce for an extended period, the have/have-not
gap widens. Oh, these things take time. But if or when on some
dark day a whole class of people should suddenly appear at our
doorstep and say, "Hey, we're hungry!" at least we'll
know what to say to them...
We'll tell them to eat cake.
William R. Hecht
email: w.hecht@cox.net
Bill Hecht is an investment
advisor and broker with First Financial Equity Corp. in Scottsdale,
AZ. He also teaches Investing at Scottsdale Community College.
He graduated from the University of Wisconsin and the American
Graduate School of International Management. The opinions expressed
reflect the judgment solely of the author, not FFEC, SCC, their
officers or employees.
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