Review: Three Billion New Capitalists–The Great Shift of Wealth and Power to the East (Hardcover)

5 Star, Capitalism (Good & Bad), Peace, Poverty, & Middle Class

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5.0 out of 5 stars Strategic, Economic Fundamentals, Compelling, Cannot Ignore,

June 25, 2005
Clyde Prestowitz
Before writing this review, I reflected carefully on the thoughts of those who say that the author, who is known to me, was wrong about Japan, that he emphasizes the best points of the new competitors (China and India) while neglecting our best points. There is certainly something to what they say, but as one who studies the entire world for our US Government clients, with a special familiarity with Chinese operations in Africa and South America, and a business familiarity with what is happening in India, I have to say that on balance, the author is more correct his critics will admit, and this is a book that we simply cannot ignore.

His most important point is made in one line: America does not have a strategy. America does not have a strategy for winning the global war on terror, it does not have an energy strategy, it does not have an education strategy, it does not have an economic or competitiveness strategy. The government is being run on assertion and ideology rather than evidence and thought–a media cartoon has captured the situation perfectly: as the VP tells the President that we are “turning the corner” the two walls behind them are labeled Incompetence and Fantasy. As a moderate Republican and a trained intelligence professional with two books on the latter topic, I have to say that this book by this author, a Reaganite businessman and senior appointee in the Department of Commerce is right on target. We *are* out of touch with reality, and we do not appreciate, at any level from White House to School House, the tsunami that is about to hit us.

The author makes two important points early on in the books: first, that information is the currency of this age, replacing money, labor, and physical resources; and second, that the best innovation comes from the right mix of sound education across the board, heavy investment in research & development, and a co-located manufacturing bases that can tinker with R&D and have a back and forth effect. America lacks all three of the latter, and is not yet serious about investing in global coverage of all languages, 24/7.

There is a great deal of commonality between this book and Tom Friedman's The World Is Flat: A Brief History of the Twenty-first Century both written and published in the same time frame. Both authors agree that the Internet has put an end to time and space constraints, and both agree that American labor is very much at risk because our basic education is flawed and we have no strategy for demanding continuing education from employers. The author excels at drawing the connection between poor education, “it's been twenty years since anyone at Bell Labs received a Nobel Prize,” and the massive increase in outsourcing of knowledge work, not just scut work.

I do have to say, having called Friedman's latest book a massive Op-Ed in my review of that book, that this author is more thoughtful, provides more historical context, and delves into more basic important detail that Friedman–put bluntly, his book is more serious and more valuable than Friedman's, as in this is the meat, where Friedman is the sauce. Prestowitz addresses the core issues of the value of the dollar, the central place of energy, the role of demographics, and the fundamental macro-economic and structural imbalances that will weaken America, that are weakening America, over the passage to of a century of time–this is not a “snap-shot,” this is a *deep* look into the soul of America.

Chapter 12, the author's recommendations, is alone worth the price of the book and should be required reading in every comparative economics and national security policy classroom. I won't list these recommendations but will highlight just a couple that struck me as immediately actionable: declaration of energy independence; DoD as a catalyst for socio-economic recovery by taking the lead in energy, education, and intelligence, learning how to wage peace; end to subsidies (the author uncharacteristically fails to note that we can increase government revenues by $500B a year if we not only eliminate subsidies, but stop import-export tax fraud and demand that corporations pay taxes on the profits they declare to their shareholders rather than the falsified and manipulated balance sheets they present to the IRS); join Japan and India to NAFTA–this is an outrageously brilliant idea.

Clyde Prestowitz is one of the most insightful, balanced, *sane* voices on national competitiveness today. He would make an excellent Secretary of Commerce in the transpartisan Administration.

See also (with reviews):
Rogue Nation: American Unilateralism and the Failure of Good Intentions
The Fortune at the Bottom of the Pyramid: Eradicating Poverty Through Profits (Wharton School Publishing Paperbacks)
The Battle for the Soul of Capitalism: How the Financial System Underminded Social Ideals, Damaged Trust in the Markets, Robbed Investors of Trillions – and What to Do About It
The Global Class War: How America's Bipartisan Elite Lost Our Future – and What It Will Take to Win It Back
The Politics of Fortune: A New Agenda For Business Leaders
The Wealth of Networks: How Social Production Transforms Markets and Freedom
Revolutionary Wealth: How it will be created and how it will change our lives
Infinite Wealth: A New World of Collaboration and Abundance in the Knowledge Era
THE SMART NATION ACT: Public Intelligence in the Public Interest

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Review: Enforcing the Peace–Learning from the Imperial Past

4 Star, Empire, Sorrows, Hubris, Blowback, History, Peace, Poverty, & Middle Class, Voices Lost (Indigenous, Gender, Poor, Marginalized)

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4.0 out of 5 stars Worthwhile but Stops Short,

January 6, 2005
Kimberly Zisk Marten
This book came highly recommended to me, but I now believe, after reading it, that is was recommended because it contributes to the tarring of America for being an imperial power in the present, while also documenting the almost certain failure of any imperial power in the present that chooses to a) act unilaterally and b) impose its values and form of governance on an uncooperative indigenous population.

On balance, I find the book worthy in so far as it draws parallels between the imperial occupations of the past and those of the present that focus on winning the war but pay no attention to winning the peace. Unfortunately, the book stops precisely where I was hoping it would start: it fails to address the two biggest aspects of winning the peace: a) inter-agency operations that mobilize *all* sources of national power and b) a deliberate concept, doctrine, manning, funding, and capabilities for stabilization and reconstruction, such as the Defense Science Board has recommended and the US Department of Defense is now implementing.

A few notes:

1) The author coins the term “complex peace operations” where the term is not needed–the author means to discuss peace enforcement missions;

2) The author is completely correct and helpful in pointing out that multilateral operations inspire legitimacy, while unilateral operations inspire counterinsurgency;

3) The author focuses on political will with respect to sustained occupation by military forces (we do not have it), but does not engage in what I regard as the more important discussion, which is the need for political will and wit to understand, as General Tony Zinni understands, that the fastest way to reduce violence and restore legitimacy is to introduce water, food, and medicine to the area;

4) The author very helpfully spends time discussing why the German and Japanese reconstruction models are irrelevant to today's failed states;

5) The author praises the military for being able to do humanitarian and other “operations other than war” when the military is well-led and carefully monitored, but misses the larger point that most military professionals and historians will gladly point out: one needs both forces–a big war force put into OOTW operations will lose its skill at big war within two years, while also being incompetent at small war/OOTW for the first two years it is thus engaged;

6) The author suggests, and I believe with good reason based on solid research, that the West is over-reaching when it seeks to impose Western values, Western forms of governance, and even singular governments on ethnic divisions that have stood the test of time–flexibility in accepting multiple forms of self-governance is essential;

7) Finally, and I have seen this myself in Viet-Nam and in El Salvador, and read of it in many other places, the author points out that any time the West intervenes and seeks to select leaders on the basis of its own criteria, it inevitably disregards local realities and ends up creating more friction than it resolves.

The author ends with the suggestion that we focus less on instilling liberal democracies, and more in simply assuring sufficient security such that commerce can be practiced and the arts can flourish.

This is an ably crafted and documented book, but it stops short. It urgently needs a companion volume that collects and integrates lessons from successful interventions. As the book went to press, Haiti was breaking apart for the second time, and I note with interest that the one force that might actually be effective there–the French-speaking French gendarme, is nowhere to be found.

Ten other books as good or better:
The Fifty-Year Wound: How America's Cold War Victory Has Shaped Our World
The Unconquerable World: Power, Nonviolence, and the Will of the People
The Paradox of American Power: Why the World's Only Superpower Can't Go It Alone
Imperial Hubris: Why the West Is Losing the War on Terror
Security Studies for the 21st Century
The Search for Security: A U.S. Grand Strategy for the Twenty-First Century
Modern Strategy
Blessed Unrest: How the Largest Movement in the World Came into Being and Why No One Saw It Coming
The Battle for the Soul of Capitalism: How the Financial System Underminded Social Ideals, Damaged Trust in the Markets, Robbed Investors of Trillions – and What to Do About It
Running on Empty: How the Democratic and Republican Parties Are Bankrupting Our Future and What Americans Can Do About It

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Review DVD: Bonhoeffer (2003)

6 Star Top 10%, Consciousness & Social IQ, Peace, Poverty, & Middle Class, Philosophy, Religion & Politics of Religion, Reviews (DVD Only)

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5.0 out of 5 stars Beyond 5 Stars–Gripping Good Stuff,

November 19, 2004
Eberhard Bethge
Edit of 20 Dec 07 to add links.

My short notes on this incredible film:

* Possible for 1 man to detect evil early on, and to resist evil

* Bonhoeffer excelled at pointing out that for any man or nation to presume that God takes sides or endorses any particular position is very pretentious

* God is *community* — God is present to the extent that community of man thrives

* If the working poor turn away from the church, it is failing; if the petty bourgeoisie flock to the church it is failing and pretentious

* In times of economic crisis, fascism can be attractive to BOTH the industrial leaders AND the forlorn working poor

* New York fellowship focused him on social ethics, energized him with exposure to writing by black authors, pious singing within black churches

* Purpose of ethics and theology is to change the world for the better

* Adam Clayton Powell Senior made the black church in New York into a political and social force

* Black Christ has rapturous passion, contrasts sharply with white didactic Christ

* Friendships with pacifists taught him that “nothing in scripture permits man to destroy the body of Christ” (the community)

* For every person that is unemployed, 2-5 go hungry

* Hitler called on God, claimed God, Quoted God. For Hitler, God was a “completely ideological God” according to Bishop Wolfgang Huber, one of those interviewed

* Church in Germany was guilty of preparing the way for Hitler, setting the stage for an authoritarian or “acceptance” state

* At 27, Bonhoeffer addressed nation via radio, suggested that the leader as “idol” was sacrilegious. His broadcast was cut off.

* Bonhoeffer brought the Bible alive–taught his student to read the Bible as if God were *here and now* speaking to *you* personally.

* Hitler called on God, but he was actually in competition with God for the role of SAVIOR of the German people.

* Hitler legalized church prejudices against Jews going back to Martin Luther

* Must distinguish between anti-Judaism (conflict of faiths) and anti-Semitism (racism)

* According to Bonhoeffer, Church has three options in times of crisis and state abuse:

1) Ask the State if its actions are legitimate

2) Support the victims (Bonhoeffer is specific in saying Church must support all victims, even if not part of the Church)

3) Oppose the State

His work focused on the ease with which false loyalty (e.g. to a President rather than a Constitution), false Church is a easy path for most.

Catholic Church signed a Concordat with Hitler, agreeing not to resist.

Others did resist–Pastors Emergency League, claimed 7,000 members out of a possible 27,000

Bonhoeffer was so exceptional that he was invited by Gandhi to visit him

“Peace is the opposite of security” (one is actual, the other is enforced)

* Study, service, prayer.

* Oppressed people of color have piety and also have something to teach to all Christians.

* What cost oppression? The cost is the loss of God.

* War, and the persecution of Jews, are injustice incarnate. “One is not true to God when one has a lax conception of war or of justice,” This according to Bishop Albrecht Schonherr

* Bonhoeffer was a double agent, engaged in plot to kill Hitler

* Ethics is situational–will of God has infinite variations. Ethics is less about principles and more about flexibility. Ethics is an act of faith–every minute, every day.

* Hitler dominated Germany for over a decade.

* Bonhoeffer was marched naked to the gallows and hung. His last words, “For me this is the beginning of life.”

* His message: live completely in this world–thus do we throw ourselves into the hands of God–take ALL suffering seriously.

This was a moving DVD. It offers superb organization, superb visuals, and superb choral music in the background. This DVD was so thoughtful I found myself replaying sections 3X to 5X.

This was so good it has focused me on my next book–instead of national security (forced peace)–I am going for INFORMATION PEACEKEEPING: Ethics, Theology, and Collective Intelligence (inherent peace).

If you've gotten this far, you need to see this DVD. Available at Blockbuster and also well worth buying as a recurring reflection piece .

See also, with reviews:
Gandhi (Widescreen Two-Disc Special Edition)
The Snow Walker
The Last Samurai (Two-Disc Special Edition)
March Or Die

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Review: HOW ISRAEL LOST

4 Star, Atrocities & Genocide, Consciousness & Social IQ, Crime (Government), Diplomacy, Empire, Sorrows, Hubris, Blowback, Misinformation & Propaganda, Peace, Poverty, & Middle Class, Public Administration, Religion & Politics of Religion

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4.0 out of 5 stars Pulitzer American Jew Speaks Truth to Power,

November 11, 2004
RICHARD BEN CRAMER
This book wanders a bit but renders a valuable service in speaking truth to power and considering, from a prize-winning investigative journalism perspective, “the story” of how Israel moved so far from its roots as a home for Jews, to a fanatical almost fascist and certainly zealot state concerned with its own survival. I recommend that the review by Mohamed F. El-Hewie, the New Jersey man with the Islam point of view be read in conjunction with this review.

The author opens with an examination of how the “story of Israel” has gone from core reality (a place so barren it makes the Congo look good, Palestinians kicked off their land after Israeli terrorists expelled the British occupying power) to a “land of milk and honey” with deserts made prosperous by Israeli industry–he neglects to mention that Israeli agriculture contributes 3% of the GDP while using 50% of the water, and that most of the water is being stolen by Israeli from underneath land outside Israeli territory.

From an “information operations” perspective, this is a really fascinating and well-told story of how Israel created several myths that sold not only in the USA but all over the world. I write in the margin, “Israel is the ultimate Potemkin village.” The author is also good at exploring the early signs that these myths are being exploded, the world is catching on, and US support for Israel may be on the verge (within five to seven years) of being withdrawn.

As he is both an American Jew and a Pulitzer-prize winning journalist, I give this author special marks for combining a loyalty to his faith with a loyalty to the truth. The Islamic-oriented review from New Jersey adds a frame of reference I am not qualified to comment on, but I recognize it as valuable. Among the most important observations the author makes early on are these: 1) when Israel became an occupying power and got into the business of assassination as a routine method, censorship of Jews by Jews became commonplace–this was the “new aspect” of the Israeli regime. 2) At the same time, in America, self-censorship and popular protest of Jewish readers against Jewish writers critical of Israel, became more marked. The Jews of America–at least the vocal ones cited by the author–simply do not want to hear the truth–they are blindly bonded to the myths.

Sharon is slammed in this book many times over. The author credits Sharon with being the original Israeli army sponsor for assignations, and the several pages on Israeli assassination history and policy are alone worth the price of the book (pages 39-51). Sharon is recalled in the book by General Pundak as “a disgraceful officer–a liar, cheater, a swindler and suck-up, a killer and a coward.” I believe this–sounds like Chalabi and Arafat–the three were made for each other and disgrace us all.

The author explores a second crime against humanity characteristic of the Israeli bureaucracy: collective punishment. He builds a bridge from this–a policy that is explicitly forbidden by the Geneva Convention–to Israel's collective loss of shame and loss of emotional commitment to the “all for one and one for all” attitude that marked the early years. Now it is everyone for themselves, never mind what the authorities do “in our name.”

The chapter on why Palestinians do not have a state is full of interesting observations, including the author's view that the US audience simply does not know the Palestinian side of the story; that the occupation is costing 18% of Israel's GDP (just 1% over the 17% of the Israeli government budget that we provide them out of the US taxpayer's pocket–two different stacks of money, but the comparison needs to be made); and that the isolation of Gaza, and the honeycomb nature of the walls and barriers, are so grotesque as to be both Kafkaesque and Warsaw ghettoish–the victim has indeed become the perpetrator, and Israel cannot be seen, in its treatment of the Palestinians, as anything other than fascist and abusive.

Having torn apart the Israeli side, the author then moves to the Palestinian side, and two major ideas stay with me: first, the concept of honor so deeply rooted in Arab culture, an honor that the Israeli's are attacking with every humility they can impose; and second, the utter contemptible corruption of Arafat and the Palestinian security authorities.

The book moves to a conclusion with a retrospective look at the bargain with the devil made by the Israeli security authorities very early on, when they accepted a dictatorship of the government from the zealot orthodox rabbis. He also explores the various “tribes” now within Israel, concluding that two thirds of the “new Jews” are not Jews at all, but simply Russian and other opportunists who have succumbed to the global covert and overt action operations of the Jewish state seeking to bring in more bodies as part of a demographic campaign plan.

The author can be shocking. He makes a case that is the Jews of Israel who bear the bulk of the responsibility for starting “the hate” and that it is the Israeli government that originally funded Hamas as an alternative to Arafat–an unfortunate reminder of US government funding for Islamic fighters in Afghanistan who have now turned on us.

The author's note and acknowledgements at the end of the book are worth reading carefully, and includes a list of other books on this topic.

I expect a lot of negative votes on this review–that is the price we pay for offering honest opinions in a forum where a deliberate Jewish bloc attacks those like the author–and this reviewer–for seeking to move a balanced dialog forward. Amazon has new algorithms for detecting “hate votes” and “organized negative votes,” we shall see if those work here.

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Review: Shake Hands With The Devil–The Failure Of Humanity In Rwanda

5 Star, Asymmetric, Cyber, Hacking, Odd War, Atrocities & Genocide, Biography & Memoirs, Diplomacy, History, Humanitarian Assistance, Insurgency & Revolution, Justice (Failure, Reform), Peace, Poverty, & Middle Class, Power (Pathologies & Utilization), Security (Including Immigration), Threats (Emerging & Perennial), Truth & Reconciliation, United Nations & NGOs, Voices Lost (Indigenous, Gender, Poor, Marginalized), War & Face of Battle

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5.0 out of 5 stars Genocide is SYMPTOM–Lack of Public Intelligence is CAUSE,

June 29, 2004
Romeo Dallaire
I read this book with the eye and mind of a professional intelligence officer long frustrated with the myopia of national policy constituencies, and the stupidity of the United Nations Headquarters culture. General Dallaire has written a superb book on the reality of massive genocide in the Burundi and Rwanda region in 1994, and his sub-title, “The Failure of Humanity in Rwanda” is where most people end up in reading this book.

I see things a little differently. I see this book as a massive indictment of the United Nations culture of “go along gently”, as a compelling documentary of how ignorant the United Nations is about impending disasters because of its persistent refusal to establish a UN intelligence secretariat as recommended by the Brahimi Report, and as a case study in how the Western nations have failed to establish coherent global strategies–and the intelligence-policy dialogues necessary to keep such strategies updated and relevant.

According to the author, 15 UN peacekeepers died–over 800,000 Rwandans died. The number 15 is not larger because Belgium, Canada, and the US explicitly stated that Rwanda was “irrelevant” in any sense of the word, and not worth the death of a single additional Western (mostly white) soldier.

Although there has been slight improvement in the UN since LtGen Patrick Cammaert, NL RM became the Military Advisor to the Secretary General (see General Cammaert and other views in Peacekeeping Intelligence: Emerging Concepts for the Future, the reality is that the UN is still unintelligent and unable to muster the strategic intelligence necessary to get the mandate right; the operational intelligence necessary to get the force structure right; and the tactical intelligence necessary to achieve the mission on the ground. Just about everything General Dallaire writes about in this book with respect to UN culture and UN lack of intelligence remains valid today: they still cannot get decent maps with which to plan a campaign or execute the mission; UN administrators are still anal-retentive bureaucrats that will not issue paper and pencils, much less soft drinks for diplomatic encounters; UN “seniors” still like the first class lifestyle on the road (they pretend to be austere only in NY); UN civilian mission leaders still misrepresent military reporting, as Booh-Booh did to Dallaire; and the UN is still ineffective in creating public intelligence with which to communicate directly to national publics the reasons why humanitarian operations must take place early and in force.

General Dallaire concludes his excruciatingly detailed book, a book with enormous credibility stemming from the meticulous manner in which he documents what happened, when it happened, and what everyone knew when (including advance warning of the genocide from the “third force” that the UN leadership refused to take seriously), with two thoughts, one running throughout the book, the second in the conclusion only:

First, and perhaps because of the mental toll he himself paid for this mission, there are frequent references throughout the book to the urgency of understanding the psychology of groups, tribes, and cultures. This is not something any Western intelligence agency is capable of today. The closest I have seen to this is Dr. Marc Sageman's book on Understanding Terror Networks We urgently need a global “survey”, with specific reference to the countries plagued by ethnic conflict and other sources of instability, and we need to start taking “psychological intelligence” very seriously. We need to UNDERSTAND.

Second, he concludes the book by emphasizing the urgency of understanding and then correcting the sources of the utter RAGE that characterizes hundreds of thousands if not millions of young men around the world, all of whom he says have access to guns and many of whom he says will ultimately and unavoidably have access to weapons of mass destruction.

As I contemplate the six-front hundred-year war that America has started by attacking Iraq instead of addressing the social networks and sources of terrorism, I cannot help but think that this great solider and statesman has hit the nail on the head: Rwanda is coming to your neighborhood, and nothing your policy makers and military leaders are doing today is relevant to avoiding that visitation. Remember the kindergarten class in Scotland? The Columbine shootings and Oklahoma disasters? Now magnify that by 1000X, aggravated by a mix of angry domestic militants, alienated immigrant gangs, hysterical working poor fathers pushed into insanity–and the free availability of small arms, toxins, and simple means for collapsing the public infrastructure….

The complexity of society, which has lost its humanity, is leading to unpredictable and difficult to diagnose and correct collapses of all the basic mechanisms of survival. General Dallaire's book is not about Rwanda–it is about us and what will happen to us if we persist in being unintelligent about our world and the forces that could–if we were wise–permit billions to survive in peace.

In addition to this book I recommend the PKI book mentioned above, Jonathan Schell's book on The Unconquerable World: Power, Nonviolence, and the Will of the People Bill Moyer's on Doing Democracy, and Tom Atlee on The Tao of Democracy: Using Co-Intelligence to Create a World That Works for All. If we do not take back the power and restore common sense to how our nations behave and how our nations spend our money around the globe, the plague of Rwanda will visit our neighborhoods within the decade.

See also:
How to Prevent Genocide: A Guide for Policymakers, Scholars, and the Concerned Citizen
The New Craft of Intelligence: Personal, Public, & Political–Citizen's Action Handbook for Fighting Terrorism, Genocide, Disease, Toxic Bombs, & Corruption

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Review: Faith-Based Diplomacy–Trumping Realpolitik

5 Star, Diplomacy, Leadership, Peace, Poverty, & Middle Class, Religion & Politics of Religion, Truth & Reconciliation, Values, Ethics, Sustainable Evolution

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5.0 out of 5 stars Award-Winner, Mind-Altering Information, Useful, Scholarly,

April 29, 2004
Douglas Johnston
Let's start with the award. I was so impressed with this book that it received one of the ten Golden Candle Awards for most constructive and innovative work in the Open Source Intelligence (OSINT) field. It represents the second book in a body of work that may eventually be worthy of a Nobel Peace Prize. The citation reads:To Dr. Douglas M. Johnston, president and founder of the International Center for Religion and Diplomacy, for his path-finding efforts with regard to Preventive Diplomacy as well as Religion and Conflict Resolution. Among his many works, two stand out for defining a critical missing element in modern diplomacy: Religion, the Missing Dimension of Statecraft (Oxford University Press, 1994), and Faith-based Diplomacy: Trumping Realpolitik (Oxford University Press, 2003). He has restored the proper meaning of faith qua earnestness instead of faith qua zealotry, and this is a contribution of great importance.

With a foreword by no less than The Honorable Lee H. Hamilton, today a leader of the 9-11 Commission, the book drives a stake in the heart of secular “objective” negotiation and focuses on how faith (not zealotry, but earnest faith) can alter the spiral of violence in such places as Sudan, Kashmir, and the Middle East.

The editor and contributing author has assembled a multi-national and multi-religion cast of experts whose work in the aggregate completely supports the premise of the book: that the 21st Century will be about religion instead of ideology, and that what hopes we might have for reconciling “irreconcilable differences” lie in the balanced integration of religious dialog and conflict prevention, rather than in pre-emptive military action and unilateralist bullying.

I found two core concepts especially relevant to national security: the first is that we need an Office of Religious and Cultural Intelligence within the Central Intelligence Agency, and we need, as the authors suggest, to put religious attaches into every Embassy. The second, and this is a truly core concept, is “The price of freedom is cultural engagement–taking the time to learn how others view the world, to understand what is important to them, and to determine what can realistically be done to help them realize their legitimate aspirations.”

This is a brilliant, scholarly, practical, world-changing book. It joins Max Manwaring's various books, but especially “The Search for Security,” Joe Nye's earlier books on understanding the world and engaging the world with soft power, and George Soros as well as the several other books on my standard national security reading list. The conclusion of the book lists a number of means by which religion can impact on diplomacy and state-craft, and I for one have become a believer–this book completely altered my perspective on the role of religion as a peacemaker of substance and day-to-day practicality.

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Review: The Working Poor–Invisible in America

5 Star, Capitalism (Good & Bad), Peace, Poverty, & Middle Class

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5.0 out of 5 stars Needs Policy Summary, But Provides Full Details,

February 20, 2004
David K. Shipler
Edit of 20 Dec 07 to state that this is a book of lasting value that must be kept in print, and to add links.

This book complements Barbara Ehrenreich's book Nickel and Dimed: On (Not) Getting By in America Ehrenreich's is much easier to read and makes the same broader points. Where this book excels is in the details that in turn lead to policy solutions. I will go so far as to say that if John Kerry and John Edwards do not get hold of an executive summary of this book, and integrate its findings into their campaign as a means of mobilizing the working poor in the forthcoming election, then they will have failed to both excite and serve what the author, David Shipler, calls the “invisible.”

Invisible indeed. How America treats its working poor–people working *very* hard and being kept in conditions that border on genocidal labor camps, is our greatest shame.

The most important point made in this book, a point made over and over in relation to a wide variety of “case studies”, is that one cannot break out of poverty unless the **entire** system works flawlessly. To hard work one must add public transportation, safe public housing, adequate schooling and child care, effective parenting, effective job training, fundamental budgeting and arithmetic skills, and honest banks, credit card companies and tax preparation brokers, as well as sympathetic or at least observant employers. The author is coherent and compelling in making the point that a break or flaw in any one of these key links in the chain can break a family.

I am personally appalled at the manner in which H&R Block, to name the largest within an industry, and Western Union, to name another, are ripping off the working poor with a wide variety of “surcharges” such that they end up paying 25% of their tax return or their funds transfer back to Mexico. This is both usury and treason if you want to look at it in the largest sense. They are sabotaging the American economy in a time of war.

It surprised me to learn that while hospitals are forced to treat the poor in an emergency, they are also allowed to bill them, and these bills, for an ambulance ride or emergency treatment, often are the straw that breaks a family into destitution. This is outrageous and should not be permitted. Then the author tells us that it costs as much as $900 for a working poor family to declare bankruptcy and obtain the protection of the law from creditors, many of whom are cheats in the larger sense of the world. How can this be?!?!

It did not surprise me, but continues to distress me, to learn that the laws are not enforced. Although laws exist about minimum wage, humane working conditions (and humane living conditions for migrant workers), they are not enforced. The working poor are treated as less than slaves, for they are “used up and thrown out” with no defense against unfair firing. They are forced to work “off the books”, to do piece rate work at below minimum wage, this list goes on. In essence, our politicians have passed laws that make us feel good, and then failed to enforce them so as to achieve the desired effects.

The author documents both the jobs leaving the US, and the fact that new jobs pay less. As Paul O'Neil, former Secretary of the Treasury has noted, we have two economies in America: one embraces automation (and kills jobs), the other requires expert labor (not the working poor). We have a double-whammy here that is totally against the lower half of the economic spectrum, and it is being aggravated by an incoherent immigration policy that feeds the beast.

On page 139 the author just blew me away with documentation to the effect that 37 percent of American adults cannot figure a 10% discount on a price, even with a calculator, nor can this same percentage read a bus schedule or write a letter about a credit card error. He goes on, citing the National Adult Literacy Survey from the Department of Education, to note that 14% of adult Americans cannot total a deposit slip, locate an intersection on a map, understand an appliance warranty, or determine the correct dosage of a medicine. I had no idea!!! This reality comprises a “sucking chest wound” in the economic body of America, and it is not a chest wound that can be healed as things now stand.

There are many other daunting “facts of life” in this book about the working poor, and they all add up to a complete failure of both the national and state leaderships to be serious about long-term sustainable economic prosperity.

The author concludes with some suggestions for reform, and here I wish he had actually gone to the trouble of creating a one-page policy paper summing it all up. His most obvious suggestion is wage reform, not just at the bottom, but also at the top. As I read and hear about executives making $5 million to $80 million a year, the norm seeming to be around $20 million, I have to ask myself, have we gone nuts? Are stockholders so stupid as to overlook the fact that capping executive compensation at 100X the pay of the lowest employee ($20,000 low end, $2,000,000 high end) would do *huge* good at the bottom and in the lower middle ranks? The extreme wealthy in America are playing a short-term game that must be brought to an abrupt halt because it is killing the people, the seed corn of the future.

The Earned Income Tax Credit *works* but most of the working poor are afraid to file income tax returns.

The author ends, quite correctly, by pointing out that the ideological debate, removed from the facts, will not alleviate nor eliminate the suffering of the working poor. Right on. It's time for the facts, for a public debate about the facts, and for public policy (and enforcement) based on the facts. This author, already a Pulitzer Prize winner, has rendered a great national service.

See also, with reviews:
Off the Books: The Underground Economy of the Urban Poor
War on the Middle Class: How the Government, Big Business, and Special Interest Groups Are Waging War onthe American Dream and How to Fight Back
The Global Class War: How America's Bipartisan Elite Lost Our Future – and What It Will Take to Win It Back
The Battle for the Soul of Capitalism: How the Financial System Underminded Social Ideals, Damaged Trust in the Markets, Robbed Investors of Trillions – and What to Do About It

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