Reflections 3.0 Malaise or success?
Could these be indeed “the best of times and the worst of times” to quote Charles Dickens
in A Tale of Two Cities? Surely much/most of humanity is far better off — at least
materially and in terms of physical well-being than 200 years ago when Dickens wrote.
Still, for certain many feel left behind due to their displacement by some technological
marvel that does their work faster, better and for far less. Or by globalization that displaces
their job to a low cost, “off shore” market at 15% of the hourly cost to their employer. Or by
an illegal migrant willing to work for much less than permitted cost while living in the
shadows afforded by our vast employment markets. Or could it be that many are disaffected
by people entering their communities who don’t talk like them, or look like them? Or could
their dissatisfaction result from what many perceive to be a liberal/progressive bias in
government that vests bureaucrats with the right to tell people how to live their lives, but
without providing a better life to go with it? As we have seen, this mix of views and many,
many others have resulted in a perceived decline in the effectiveness of government at the
Federal level due to lack of consensus, splintering of political alliances and
less than desired program performance.
But is this true at the state level? And if the private economy provides 125 million of our
145 million jobs, as JPMorgan CEO Jamie Dimon recently notes, is it true in the private
economy as well? As we were considering the meaning of these observations we were
pleased to see Michael Bloomberg, first on the op-ed pages and then in a new book coauthored with Carl Pope, former head of the Sierra Club, put forward similar views. They
surmise that the efforts of the private sector and the states to address climate issues will
carry us forward to achieving the commitments made in the Paris Climate Agreement of
2015 irrespective of decisions made by the current administration at the federal level. Our
thoughts herein are a little closer to home, however. And while very similar, differ in one
important respect. So, to those thoughts.
Reflections April 2017
First, in Massachusetts, Governor Charlie Baker enjoys a 75% approval rating according to
several polls just out giving him “Best in the Nation” honors. Why? One likely
reason is his focus on making state government work — for everyone irrespective of
background, income, race, or faith. In the Governor’s State of the State speech, only a day
or two after the Presidential inaugural, he began by giving credit to the leadership in the
legislature, to leadership in the transit and healthcare unions, in fact to everyone but
himself. The Governor is a Republican. Through a lot of hard work by many who
preceded him as well as by his administration the state is tops in education, healthcare,
employment stats and more.
We know that many do not enjoy these outcomes. Not every state or region has been
successful, often for reasons not in the control of present-day leadership. But, we hope those
that are enjoying success may inspire others by their example.
In the private economy, presently 365 companies including Mars, Nike, and WalMart are
among many other household names that have encouraged the President in a letter to stand
by the terms of the Paris Climate Accord reached in December 2015. In their letter they
stated that a failure on the part of the country to address climate change could endanger our
economy, our health, and our well-being, and they are committed to address issues
pertaining to climate change within their own operations. Independently, a recent study
from State Street Research makes a compelling case that adoption and execution of ESG
principles by operating companies yields improved results for those that adopt vs. those that
do not — suggesting that those who are incorporating them may be in the vanguard not just
for good climate policy but for good business policy. So, on these fronts we strongly agree
with Mr. Bloomberg.
Our economy has been growing for eight years. Thanks to recent work by Harvard
economist Martin Feldstein and colleagues and reprised by personal favorite H. Woody
Brock in a recent piece, it may have been growing faster than we have previously believed.
This is because the numbers keepers may not have accurately measured gains from
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Reflections April 2017
productivity, an observation that seemed intuitive at least to some but has only recently
received attention. Their resulting conclusion — we are not lagging.
I was a senior in college when John Kennedy was murdered. Over the ensuing eleven years
his brother was also murdered, Martin Luther King, Jr. was murdered, we lost a war in
Southeast Asia, our National Guard shot protesting students on a college campus, and a
President was forced to resign. Perhaps that was the worst of times?
At High Meadows, then, we are optimistic. As you know we focus on environmental
science and policy, on innovations in education, and on understanding and encouraging
companies and investors to play a role in addressing these difficult environmental and social
needs. We try to carefully evaluate the outcomes from our grants, investments and
engagement with the organizations we support. It is the knowledge gained from so doing
that makes us rise each day with the feeling we are moving forward. Yes, there are places
where the organizations we support are sometimes feeling displaced by current events.
Gratefully, however, there are many more that we can count successes.
As to where we differ from Mr. Bloomberg: Guided by our friends at EDF, we see the
federal government as capable of providing integrated solutions — for instance, through a
cap and trade program for greenhouse gas emissions. Or through rules pertaining to
methane emissions, such as these handed down by the Obama administration for federal
lands. The leadership of the federal government allows enactment of a single rule or law
rather than multiple rules from multiple states, some differing from others and complicating
compliance and monitoring. But that said, we believe Mr. Bloomberg is right in this regard.
We can make progress at a rapid rate on many environmental fronts irrespective of what
happens at the federal level in this administration — and we shall!
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