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II 4t ,,.. ,:, ,,.., ,,,44444,4 ir 'Ya;,,:, ....,,OW4iwaststoto, - 1,, N, ..,.. Ivet4 ..s...,,k, ;;oliri'VC!:':.,". Lockean ideology on which this Pawtucket, R.I. cotton mill was i ' :I :',, ! 4Hr'zi1n4(,, .. ,teillmAtitc . " ',:, ,,,,, 4,,i4:1 ..2,1..1,4- Loisvo7.7;ii 4- 4;.0,:do. :::1 !::4,:,:sro: ''!er'''...ti ....4,40w- - ... has been replaced by communitarianism in modem industry. radical change for the managers of corporations, the prime institutions of capitalism, Lodge reckons. The Lockean ideology tended to sever economic activities from their political and social context. allowing economic goals to dominate. The new ideology means managers will have to derive their authority from those they manage; they must concentrate more on serving community needs rather than consumer desires; and they will have to think of the interdependence of all things. Lodge predicts there will be increased worker participation in management. He also expects to see comprehensive state planning and federal chartering of large corporations. "If we in America are to save what is best, avoid tyranny, and provide for the of each person, then we must be alert to the ideological transition which is itlx)n us," warns Lodge. Most people tend to think of labor as the prime source of wealth. That was what both Marx and Adam Smith thought. Although capitalism no longer accepts the "labor theory of value," communism still self-respe- ed does. Czech economist Eugene Loeb! writes: "Applied science has replaced manual labor in the transformation of natural fortes into productive forces. It is the level of thinking applied to the productive process which has become not only the most dynamic economic factor, but the decisive source of wealth as well." That idea is not entirely new to economics. Economist John W. Kendrick has found that increased education is a major cause of growing productivity in the United States. But Mr. Loeb' has developed the thought into an economic theory which, if it should catch on widely, could have considerable impact on the future of capitalism. "Ilumanonics," as Loeb' calls his theory, also severely damage the appeal of communism. That would be ironic because Loebl was once a prominent Communist. Indeed, as the dust jacket to his recent book "Humanonies, How We Can Make the Economy Serve Us Not Destroy Us" (New York: Random House), points out, the theory was born in a Czech prison. Loebl, then Czechoslovak first deputy minister of foreign trade, was sentenced to life imprisonment in 1949 by the government for he refused to stop trading with "treason" the West. During his 11 years in prison, much of the time in solitary, he reappraised both Marxism and capitalism. Thrx e years after his release from prison, Loetil was rehabilitated and appointed director of the State Bank. But in 1968, when Warsaw Pact forces invaded Czechoslovakia. Lochl fled to Austria. Later. he moved to the United States where he teaciws at Vassar could College. In any case, Loehl challenges both the "invisible hand" of Adam Smith, the founding theorist of capitalism, and the dialectical determinism of Karl Marx. The economic system is not the result of some dialectical theory about warring classes. Nor is it the creation of some economic law similar to Newtonian physics. "Economy and society," he writes, "are a creation of man, the result of his creative genius. The ability to think. to feel, and to will is unique to each human being. Our economic and social activities are the result of all values and considerations. Knowing this, we must not be satisfied any longer with economic laws which supposedly govern us. We must realize that we have the ability to design our world, to make it serve L. " He adds: "The philosophy on which conventional economics is based eliminates the human dimension and is responsible for n orientation of the economy." the Loebi conceives of the economy as a human system where the revolutionary application of natural science and technology (of intelligence) has enormously increased wealth. This system hangs on the creative work of many generations and the contribution of a large number of incredibly complex subsystems. "The production of even a single shoe in a developed country is contingent on applied science at every stage of production. The mining, metallurgy, machine tool, and chemical industries, for example. are integral elements in the manufacturing of shoes. Complex networks of transportation, banking and distribution are also necessary. In addition, a system of elementary schools, high schools. universities, and research institutes is important." Loebl concludes from this complexity that it is impossible to know how much any single worker or enterprise has contributed to the value of a product. 'Ownership of the means of production today is actually a type of 'joint tenancy' ownership, because society contributes just as much as, if not more than, the actual owner." Loeb' applies this thought primarily to the larger firms responsible for some 90 percent of the nation's output of goods and services. The present system, he believes, is essenbadly geared toward the interests of the business enterprise. He advocates a "macro-organ- " to orient the economy toward the interests of the nation (the consumer). is the government. That "macro-organ- " Loebl wants the government to undertake thorough studies of the economy as a whole and offer comprehensive economic programs to the voters. But he rejects an enforced plan along the Soviet style as unworkable. The program should not restrict the freedom of enti,Tprises to increase their efficiency. Of course, combining a comprehensive pogearo with frccdsm is tricky. Loebl has several ideas: eliminate the corrarate income tax; apply the individual income tax only to and use the revenues for income the distribution; pay for general government a sort of overall sales through "skimming" tax; maintain employment by creating government bank deposits tor industries or regions suffering from slack; maintain level prices. through controls on essential goods. Next: Twilight of the corporation? anti-huma- well-to-d- (C) 1917, iro JACK AnDERS011 . t. . WITH LES WHITTEN a dE, blessing to foreign spies.. j .., .. :., ,,:.,6 go,',:.,::',.::.:,-- rJo' :,,: '. ,.,,', I , (.,,,,,! 0..;..."$,:i,,. , ' philosophical truth that everything is related to everything - t 4 :tz......7147.....!IP:o.4.1 Il' I , poor educainequalities in the community tion, discrimination, and so on. Rights of membership: This is augmenting and replacing property rights. "A curious it thing has happened to private property has stopped being very important." It nas been superseded, Lodge argues, by the right to survive. to enjoy income, health, and other rights associated with membership in the American community, or corporation, or sonic other component of the community. y As evidence, he cites the minimum provision for those over 65, the blind and the disabled, and other welfare-typ- e measures. These, he writes, are a "revolutionary departure" from the Lockean concept that only the fit survive. The separation of ownership from management in most corporations also has eroded the value of property as a legitimizing basis for executive authority. "It is now obvious that our large public corporations are not private property at all," claims Lodge. "The best we can say is that the corporation is a sort of collective, floating in philosophic limbo, dangerously vulnerable to the charge of illegitimacy and to the charge that it is not amenable to community control." Community need: This is replacing competition as the criterion for the use of resources. With the growth of huge corporations, competition in the market as a regulator has become increasingly irrelevant in important segments of the U.S. economy. Giant firms have unprecedented control over both costs and prices. They heavily influence consumer decisions through persuasive advertising. They block full application of antitrust laws. often arguing that bigness is essential to community needs. They form a sort of partnership with government. This picture is widely different from the traditional concept that the public interest emerges naturally from free and vigorous competition among numerous aggressive, individualistic, and preferably small companies attempting In satisfy the needs of the consumer. The state as a planner: "Government is becoming the setter of our sights and the arbiter of community needs," holds Lodge. "Inevitably, it will take on unprecedented tanks of coordination, priority setting. and planning in the largest sense." Holism, or the theory that nature tends to group units of whatever kinds into wholes, and into a single, great integrated whole, is replacing the idea of scientific specialization. "Spaceship earth, the limits of growth, the fragility of our biosphere have all ":1;,....:"' '4,.'.,,..l:',7,, ',. A 3 CIA gives ,,,.,.,1 .11;- ..,"": Aktkt;:, social-securit- , k - l';...,:-- i ',:ssj." intellectual underpinnings of the system today. (1632-1704- a ..1, ; '''. .s .. This, the second of five articles on how capitalism is changing, deals with two views of the York: Alfred Knopf), Lodge has examined the impact of a dramatically changing ideology on United States institutions, particularly the corporation. "Ironically," he writes, "we in America have had the notion that 'ideology' is basically a European commodity; a bag of theoretical confusion, whether tagged as socialism, communism, or ascism, which we left in the old country with our ancestors and from which hardheaded Americans are happily free." Well, Lodge goes on to show this is nonsense. American society does have a an ideology. dominant set of coherent ideas "No community is more deeply imbued with ideology than ours," he says. The traditional American ideology, notes derived from the ideas Lodge, is "Lockean" of several 17th C,entury Elizabethan Englishmen, but especially philosopher John Locke ). Its five key components are these: Individualism: This is the notion that the community is more than the sum of the individuals in it. Fulfillment lies in an essentially lonely struggle in what amounts to a wilderness where the fit survive. If you do not survive, you are somehow unfit. This is the idea that helps make John Wayne movies fun for Americans. Closely tied to individualism is the idea of equality, in the sense implied in the phrase "equal opportunity." It also includes the idea of contract, the inviolate device by which individuals are tied together as buyers and sellers. For the political order of the country, individualism became the pluralism of special interest groups fighting for influence. Property rights: The best guarantee of individual rights was held to be the sanctity of property rights. It was even included in the Constitution. Competition: Economist Adam Smith articulated the inea that the uses of property are best c(mitr011ed by caul) individual proprietor competing in open markets to satisfy individual consumer desires. To a large degree an "invisible hand" would see to the public welfare. This theory still dominates the economic system intellectually. The limited state: "In reaction to the powerful hierarchies of late medievalism, the conviction grew that the least government is the best government. We do not mind how big government may get, but we are reluctant to allow it authority or focus. And we resist the idea of planning by government, preferring instead that it respond to crises and to Interest whoever has the clout can call the groups tune." Scientific specialization and fragmentation: This, writes Professor Lodge, is a corruption of Newtonian mechanics. It says that if we attend to the parts, as experts and specialists. the whole will take care of itself. These five components, though often dis N,i,. .'1 ' -- 4;.,;. ..,,,, . I .- quasi-religio- (New ., Ast. '. Irz,,,..4 ....,44 ,,,,ale,4-1.0- ., I .? ,..-..- 1,:,'' !' 410v ::.'..,EEF .:., .,:..:.,.. torted and eroded, have remained the primary source of legitimacy for American institutions. This is so even though such powerful institutions as corporations, the backbone of the economy, have in fact departed substantially from them. One of the myths arising from this dogma is what Lodge calls -the myth of material growth and progress." The doctrine of individualism implies that man has the Will to control events, property, nature, the economy, and politics. Under the Darwinian theory of evolution Unrestrained competition among men would improve the species and bring progress. Though its outlines are yet vague. Lodge sees the development of a new set of ideological values. These are: Communitarianism: This is augmenting and replacing individualism. For most people today, fulfillment occurs through their particiin the factory or pation in a social process office, in the neighborhood, or in a national activity. If these communities are people can make fuller use of their capacities. If not, they will be alienated and frustrated. Equality of opportunity i3 being modified somewhat to equality of result or representation. Corporations must hire and promote women, blacks, and other minorities. The goal is to make up for the impact on these groups of myth-bustin- Ne'''''....- - 'A :..., '41 11 .: ...t..,,. !, ..,..:':.'' L,: 1 ' Christian Science Monitor News Service "The United States is in the midst of a great transformation, comparable to the one that ended medievalism and shook its institutions to the ground, maidng way for what we now call modernity. The old ideas and assumptions that once made our institutions legitimate are being eroded. "They are slipping away in the face of a changing reality, being replaced by different ideas as yet contradictory, and unsettling. We stand in an age of uncertainty, a time in which the old guides are unreliable, the old institutions seamy ." Professor George C. Lodge, Harvard Business School Many economists have in recent years examined what Walter W. Heller, President John F. Kennedy's economic adviser, termed "old myths and new realities" in a book published last fall. John Kenneth Galbraith has taken particular pleasure in bursting some of the bubbles of purist views on competition in business. Management expert Peter F. Drucker also has had his crack at economic myths, as have some businessmen over myths about business, g However, Lodge has taken the rampage down to bedrock. First in an article in the Harvard Business Review, then in a book, "The New American Ideology" ..' ' ost, ,..: - .:: ,,. :?' ,, ::e ,. 7,'''',.::"... ,:', f .: :::': mliwomw, z .'.,I I .. 't 71;;...i':' ', 0)14.001a ilk. ,.....,,';',1.,',.- :;, ;A ..,::,,,,, - - r., .0.171refe.,.,,71Proe".0.1.07.weviro7plowbommoNswoove.o.eqmirsp :,: ;..0.., . - 7 , ', tl. , , CAPOTaLDM Francis p,,,, ' THE FUTURE OF kiti.1110 By David R. DESERET NEWS, TUESDAY, MAY 3, 1977 :. S. The Christian Science Monitor News Service Some Of the worlds most WASHINGTON ". sinister secret police are operating in the United: States with the blessing of the Central Intelligence Agency. There is evidence that these foreign agents have arranged murders. committed burglaries, attempted kidnappings and terrorized political opponents in violation of U.S. laws. ,,, In past columns, we have reported that the CIA has a secret understanding with such notorious foreign intelligence agencies as Chiles DINA. Iran's SAVAK and South Korea's KCIA. Not only does the, CIA work closely with these police agencies: the agents operate within one another's countries by, mutual consent. Now the Senate Foreign Relations Committee " has quietly started an investigation into the activities. of foreign intelligence agencies in the United States, The committee is particularly curious about the CIA's role in these activities. On the House side. Rep. Donald Fraser, has also asked the CIA to divulge the details of its. "1. reciprocal arrangements with foreign intelligence to CIA has refused The cooperate. agencies. As far hack as July 17, 1975, lye published charges that the KCIA had terrorized Korean exiles. had set up illegal front groups to manipulate U.S public opinion and had tried to buy off U.S. congressmen. We also cited documents ItOrit SAVAKs files as :L evidence that the Iranian secret police were intimidating opponents of the shah in this country. The documents included detailed instructions on how, to burglarize homes and offices. "1 In our repoI3 on the Chilean police. we warned on Nov. 16, 1975: "There is reason to believe that DINA has hired thugs to track down and assassinate prominent exiles." Ten months later. Chilean leader Orlando Letelier was blown up in his car on is. Washington's embassy row. Investigators are now' convinced that DINA hired Cuban killers to murder Letelier. As additional evidence, we have now obtained an, explosive document from DINA's own files. It is a Inellit), dated Sept. 16, 1975. film DINA chief Manuel Contreras Sepulveda to Chilean President Augusto Pinochet. The memo requests "an additional allotment of., $600,000 for the iDINA) budget." Among four reasons for the extra money, this was the most fascinating "Additional expenses for the neutralizing of the principal adversaries of the Government Junta in the exterior, especially in Mexico, Argentina. Costa Rica, the United States, France and Italy." We can only speculate of course, what the phrase "neutralizing of the principal adversaries" means.: But the memo was followed by an assassination attempt against Chilean dissident Bernardo Leighton on the streets of Rome. Then Leteher was dynamited:; to death on the streets of Washington. The FBI also learned of murder plots against two other Chilean exiles. Gabriel Valdes and Rodomiro Tomic, who were given protection. a copy of the DINA memo to We the Chilean embassy in Washington and waited a : week while embassy officials examined it A spokesman then denounced the document as ; "completely false." He said Contreras' signature I hand-deliver- ii was a "forgery." The memo was delivered to us by sources who have been reliable in the past. For three weeks, we painstakingly checked it with a number of sources including U.S. officials. They all agreed it not only appeared genuine but was consistent with their own intelligence information. A DINA defector now in asylum in the Italian embassy in Santiago, according to competent sources has confirmed the authenticity of the memo. We have .:1. also had access to other DINA documents. which the Chilean government has acknowledged are authentic. These resemble the disputed document in every detail. Many, incidentally, are not written on , :. DINA letterheads. Footnote: Interestingly, the document also requests "grants for officials of this department who are following courses in preparation of groups in the Training Center in the city of Manaus,t. Brazil." LIMOUSINE COMFORT President Carter is st difficult set. Not only limousine for life the making has he deprived many government bigwigs of their chauffeur-drive- n limousines, but he has now ordered drivers to stop running their mAors while they wait P for their privileged passengtbrs. The big shots like their limousines to be warm in the winter and cool in the summer. Obliging chauffeurs usually idle the motors so the limousines .will be comfortable when their bosses board them. p But a federal employe, writing to the National Suggestion Box. pointed out that both money antigasoline could he sved if the drivers would shut off the motors. White house aide Greg Schneiders delivered the stiepest ion directly to President Carter, who agreed with it, The General Services Administration, which has .'" the responsibility for the government motor pool, was notified. A "property management" regulation was promptly drawn up, directing all government drivers to stop idling their engines. Footnote: The White House is also implementing other suggestions from the public. Suggestions should be addressed to the NATIONAL SUGGESTION BOX. Box 2009, Washington, 11C 211013. s' : - (c1 1977, Unthsd I Feattire Syndic Ate Inc 10 By Richard J. Cattani p said agricultural economists and spokesmen meeting in Chicago this week. Wheat prices tend to set the market conditions for other major grains, and wheat is the most important commodity in international food trade. The Carter administration wants to hold the wheat loan rate at $1.25 a in recent the market h,hel days. The wheat price would likely climb to wherever Congress might set it above that explains John Schnittker, agricultural consultant and former undersecretary of Agriculture. "President Carter knows if you raise the loan rate to $2.50 that would force the price up, and the U.S. would have to go to an export subsidy to move the wheat," Schnittker says. "The higher levels voted by the House subcommit could cost up to $6 billion pd clients to farmers." We farm-grou- Christian Science Monitor News Service U.S. wheat policy CHICAGO remains the most conspicuous, stubborn tare in an emerging Carter administration farm program. edd pric4,4 cohlinue to fise the As price farmers get for wheat has d wheat crop dropped. And a is forecast this year, spelling likely continued low wheat prices for farmers. Key members of Congress want to give farmers more federal help than Carter has proposed. Washington wheat decisions are the most critical facing U.S. agriculture, pre near-recor- U.S. policy on wheat a root issue in Carter has threatened to veto the omnibus farm legislation now before Congress if Congress tries to boost levels above the wheat administration's latest offer of a $2.25 loan rate ad a $2.90 target (guaranteed) price per buflel for neAt year's wheat. price-suppo- rt rate is the price farmers can get for their wheat as collateral on The loan borrowing from the government. The target price is used to set a level below which farmers are reimbursed by the government should market prices sink below it. Many in Congress want higher loan rates of at least $2.50 a bushel and . target rates of WO, and they want the hike to take effect on 1977, instead of 1978 crops. Schnittker suggests the President might budge at most a nickel on the loan rate to keep U.S. prices in line with world markets but give more ground on target prices which would mean welcome cash to farmers having a nard time covering costs. a Rep. Paul Findley, member of the House Agriculture Committee, says the Carter administration might go ev en fnrther. -Wheat growers have strength in the committee. Carter had marginal ,Apport in grain country last fall, and will likely need it to get reelected," (C1 1977 The I. to 11. ' Op Christina Science Publishirse Ii 1 0 .' I |