By Chet Yarbrough
The Unwinding: An Inner History of the New America
Narrated by Robert Fass
George Packer drives a stake into America’s heart in “The Unwinding”. American anger, fear, and frustration build in the minds of all—whether Republican, Democrat, Tea Partyer, or Libertarian.
Whether an accolade of private enterprise or government, Packer offers stories of Americans that show American’ belief makes no difference because America is no longer a land of opportunity but a land of greed; not of the free but of the shackled—a risk noted by Thomas Hobbes in the “Leviathan”. The shackles come from society’s failure to protect individuals from the tyranny of special interests. One side argues that it is because of ineffective government–the other side argues it is because of too much government.
Stories of people with great wealth, like Sam Walton, or poverty, like Tammy Thomas, or escape from poverty, like Jay-Z and Oprah Winfrey, or invention, like Peter Thiel, Max Levchin, and Elon Musk (founders of PayPal), or political success, like Colin Powell and Barack Obama, or entrepreneurial ambition, like Dean Price, or political ambition like Jeff Connaughton–ALL SEEM FAILURES IN MORALITY AND/OR SELF-FULFILLMENT.
Sam Walton becomes one of the wealthiest people in the world by creating a marketing behemoth that offers low consumer prices but drives small business entrepreneurs out of business. Walton offers great prices by buying in bulk and selling in volume with lower margins, partly produced by low wage workers. On the one hand it is a bargain for the consumer; on the other hand it destroys competition and reduces family incomes.
Tammy Thomas, born and raised in Youngstown, Ohio, worked in one industry for the majority of her life. She lost her job when the company she worked for was purchased by a conglomerate that dismantled the business, out-sourced product development, and reduced employment by offering buyouts to higher paid long-term employees–all to provide profits to conglomerate’ investors.
Jay-Z and Oprah Winfrey overcame poverty and the degradation of living in squalled slums by capitalizing on their unique abilities and life stories, stories that reflect on the huge disparity between rich and poor. Born into poverty; they unquestionably achieved success for themselves, but left behind a population with poorer and poorer prospects of escape.
Peter Thiel and Max Levchin capitalize on the tech boom. Peter Thiel becomes a billionaire through entrepreneurial skill. However, the consequence of market collapse from financial derivatives affects even Thiel’s wealth. Thiel, still in the privileged 1%, re-focuses his attention on the direction of American government and free enterprise.
To a great extent, Jeff Connaughton, because of the financial market collapse, also decides to re-focus his attention on American government and free enterprise. Connaughton began as a political operative, left government to become a millionaire lobbyist, and returned to government when the derivative crises reduced his net worth.
Connaughton’s reaction to the financial crisis differs from Theil’s, in part because of the monumental wealth difference, but also because of their different journeys to wealth. They equally revile the influence of money in government but Connaughton believes government regulation can be effective while Theil, a Libertarian, believes government regulation is the bane of democratic society.
Dean Price, a young Republican turned Libertarian (though he voted for Obama) believes America is the land of opportunity. He struggles, works hard, achieves success, fails, starts over, seems on the road to recovery, and fails again. Price buys into the American Dream by reading Napoleon Hill’s book “Think and Grow Rich”. He believes–if he can dream it, it can happen.
Price experiences rising gasoline costs and buys into the bio-fuel movement of the 21st century. He starts a company called Red Birch Energy after selling a small fast food chain that he began from nothing. As a part of his original start-up, Price built a fuel discount truck stop on his family farm with one of his restaurants as an anchor. He takes on partners for engineering and additional financing for bio-fuel equipment and production of bio-fuel from canola grain. With rising oil prices, turmoil in the Middle East, and Obama’s election, Price seems to be on a road to great success.
However, life choices get into Price’s way. He takes advantage of his partners by not fully explaining his conflicts of interest in using biofuels in his own truck stop to stave off collapse of his personal business. His financial problems mount to the point of losing his ownership interest in Red Birch Energy. Thrown out of the company he started, Price files for bankruptcy and is faced with starting over.
Price is resilient. His latest biofuel venture holds promise. He is looking at a cheaper biofuel process from restaurant grease to fuel school district buses. One wonders if he can avoid ethics problems faced in former ventures.
Colin Powell became the poster child of black Republicans, only to have his reputation destroyed by endorsement of false reports about WMD that compelled the United States to invade Iraq. In a similar vein, Barack Obama becomes President with a mandate for change, but instead of fomenting change, he chooses to fill his administration with dupes, if not agents, of the financial collapse.
Obama’s reputation for change became more of a lie than a truth. Government decisions to bail out big banks and let bank’ decision-makers escape prosecution galls every American damaged by the financial crises of 2007. The unwinding of the financial crises is appalling.
Packer brings these stories together in the “tea party and “occupy wall street” movements. The growing distrust of government and burgeoning anti-government belief raises the hackles and stokes the fires of two political extremes in America. On the one hand, Americans want less government and, on the other, Americans want more effective government. The extremes are Anarchic on one side and Marxist on the other.
“Tea party” and “libertarian” followers want less government while “occupy wall street” factions want more effective and protective government. Libertarians like Theil and teapartiers like Michele Bachmann want to minimize government intervention in the private sector, including government control of education.
“Occupy wall street” followers want government intervention, subsidization of education, and universal health coverage to equalize opportunity for lower and middle class Americans. Connaughton abjures the defeat of Federal financial regulation and the watered down legislation supported by Senator Dodd and the Washington finance industry lobbyists. Some believe the Dodd financial reform bill will undoubtedly lead to the next greed bacchanal of the financial industry.
The unwinding of the financial crises reflected in the dot-com bubble of 2000-2001 and the 2007-08 sub-prime mortgage crises unfolds in stories told by Packer in this disturbing narrative. America has become a nation of extremes with each extreme using whatever means necessary to deny success of either “tea party”, “libertarian” or “occupy wall street” followers. The consequence is a “do-nothing” congress, an ineffectual President, and a politicized Supreme Court. One is left with fear, anger, and frustration after completing Packer’s diatribe. The only consolation is in history.
Now, the relationship between Russia and President Trump are roiling American politics. As some say Yogi Berra said–it’s like Déjà vu all over again.
America has been in crises before–in 1776, 1789, 1865, 1929, 1941, 1951, 1967-68, 2001. Americans survived before; Americans will survive again but how angry Americans are, and how frustrating it is to watch America muddle along while Congress fails to act.