I know an associate who belongs to an exotic car club. This group of idle boys own Lamborghinis, Maseratis, McLarens, and Ferraris. One sunny Saturday several years ago, the exotic car club posted on Facebook that they were going to race down a central corridor freeway in Minneapolis at 9 AM. The arrogance of the post was to assume that police officers don't read Facebook. So, at about 9:05 AM, Minnesota Highway Patrol set up a dragnet and nabbed about a dozen of the car club members exceeding speeds of 100 miles an hour.
I ran into my friend a few weeks later and asked him what the consequences were of that car club morning outing. He simply looked at me, shrugged his shoulders, and said, “I showed up to court and paid a huge fine.” I asked, "What about your car insurance? Did it go up?" And he nonchalantly responded, "Yes, but it's only money." Thus, always to the wealthy, especially wealth, that is two or three generations removed from the original wealth creator. Personally, I would love nothing more than to sit behind the wheel of a 12 cylinder 800 hp machine and take her out of the road to let her do what she was bred to do. However, the notion that I may kill someone, damage that expensive machinery, pay exorbitant fines, and receive huge insurance premium increases would be more than enough to keep me from attempting such risky behavior.
Sensible calculations are lost on those that can afford idleness. Wealthy people develop a blind spot to the trials and tribulations of everyday citizens, and that myopic phenomenon eventually brings all such wealthy houses crumbling to the ground. Myopic wealth not only shatters individual family fortunes over the course of time, it also shakes top corporations and wealthy nations into useless piles of rubble as well.
The United States now suffers from this arrogant wealth disorder. Our legislative leaders go racing recklessly down every highway, spending our money nonchalantly on rich people causes. Funds to Ukraine to fight a war against Russia just topped 100 billion dollars. Spending gold rather than duking it out in the battlefield with adversaries became a late Roman Empire strategy as distant Roman leaders concluded it was far easier to fool a docile citizen into paying more taxes than to get mud on their togas. History reveled how this policy ended for the Roman hegemony and our current United States Republic, with its reckless fiscal policies, is barreling straight for the empire collapsing finishing line.
Government leaders by both political parties decry our current inflation. They take to the podium vowing to do all in their power to rein in inflation and to punish the people responsible for this melee. These feckless leaders stand before us, their gilded lifestyle unaffected by inflation, promising to punish Vladimir Putin and oil companies for causing higher gas prices. They make speeches promising to get those greedy overcharging corporations, angrily pointing one finger at us while the other hand rakes in ever more corporate lobbyist funds. Sam Bankman-Fried’s loosey-goosey under regulated FTX was one such institution that flooded congressional leaders with “look the other way” money.
When blaming Putin, oil companies and greedy corporations lose their luster, the desperate politician then blames the US citizens themselves. The ungrateful citizens simply want too much, they consume too much, and they don’t know how to live within their meager means. It is our spending habits, say the politicians, that are causing inflation. So, behind the scenes, they manipulate interest and tax rates. Raising interest and tax rates are the best ways for a government to put the whiney middle class in their place. Although these higher rates affect corporations as well as individuals, the corporations can adjust pricing to accommodate the increased expenses. But for the cash strapped citizens, no such power exists. Consumers must either take on debt or tighten belts to ride out the 100% Washington DC induced inflation storm.
The reality is, Putin, the oil companies, greedy corporations or even the overspending consumers are not to blame for inflation. Inflation is simply caused by too much money chasing too few goods. Where did that excess cash come from? Certainly not from whence our political leaders are telling us, as Putin, oil companies, greedy corporations or overspending consumers do not have US dollar printing presses in their basements. But congress does! Congress authorized Stimulus, Stimulus II, Son of Stimulus, and non-stop continuing resolution omnibus spending bills that create out of whole cloth, dollars not tied to any economic factor other than our great country’s ability to fleece its citizens of ever more of their time and labor.
The last thing the arrogant wealthy do, when not buying next year’s hottest sports car, is to abandon practical and fiduciary respect of people’s time and efforts for the pursuit of nebulous undefinable causes. There could be no greater example misplaced priorities than climate change. The existential threat to our planet from man-made climate change has the entire world at the ready to abandon traditional economic principles in favor cataclysmic ESG standards.
Arrogance is believing that wealthy individuals, corporations, and counties will not fall due to the abandonment of the foundations and principles that built them. I dub this misplaced understanding, Myopic Wealth Syndrome. Individuals, corporations, and countries stand a better chance at longevity if they can resist this malady. That requires their leaders to remain well-grounded and their boards of directors to keep the company focused on mission and shareholder value, not chasing ESG phantoms. However, history has shown us that staying on top is an elusive proposition. Check out this brief video on the growth and decline of major corporations over the past 40 years.<HERE> Like successful nations, all these companies started with a specific mission, missions that their founding leaders fought for and protected. Yet, every one of these companies that moved into the top ten spot eventually fell off the grid.
Myopic Wealth Syndrome is a naturally occurring phenomenon. Generational wealth creation and protection for both individuals and companies is a lot of work and eventually, subsequent generations will decide it is more fun to buy exotic cars and adrenaline race them down boulevards then to keep a watchful eye on finances. Myopic Wealth syndrome occurs naturally because God designed it that way. The wealthy, in ignorance of Divinity and arrogance of self importance always suffer Icarus’s fate, they always in hubris, flay too close to the sun - they always built their temples too close to the heavens. The wealthy never learn that wealth is merely a byproduct of work, a report card of success if you will. It is the utter lack of this understanding that brings all houses who covet wealth for its own sake, crumbling to the ground. The House of Gates, The House of Bazos and The House of Musk will eventually fall, just like the companies on the attached video and just like the political dynasties and wealthy countries of the past.
Now, after laying out the truths of how Myopic Wealth Syndrome causes all that achieve wealth to eventually collapse, I leave you with one last thought. Larry Fink and BlackRock are now pushing thousands of organizations across this planet to do precisely what has been proven time and again to diminish companies’ stature. By demanding ESG standards be adopted by leading organization, if Larry Fink has his way, banking and lending institutions will withhold investing funds and banking privileges to all organizations that do not comply with mission killing ESG standards. If the world goes down this ESG road, we will be performing on such a massive world stage, the absolute destruction of organizational wealth because they will all be taking their eyes off their core missions, their founding principles, and the protection of shareholder value. Instead of allowing the “Invisible Hand” to naturally removed corporations that suffer Myopic Wealth Syndrome, lord Larry Fink would collectively have all world corporations forced into this affliction at one time. And, as this happens around the world, just like late-stage Republics do not attract just and altruistic individuals to save them from themselves, this ESG action will usher in a bevy of smarmy elites. Like a pack of hyenas, the emerging ESG leaders will not be there to preserve the life of the corporation, but to pick every ounce of flesh off the plump delusional corporation until all that's left is its bone-white carcass.
Sic Semper Oculentos!