FRANCISCANOMICS

Indiana YMCAs Executive Conference May 5, 2001

“The U.S., along with the rest of the world, is in the midst

of a great recession.”

Paul Volcker

“Top economists wary of declaring recession over”

Headline / San Francisco Chronicle / 04.13.10

“The Recession Is OVER, Says

Economic Panel.” Associated Press

September 20, 2010

“LABOR MARKET STILL SOFT AS JOBLESS

CLAIMS RISE” –NEWSROOM AMERICA, 01/27/11

—Dean Baker, Center for Economic and Policy Research

“ ”the recovery is very weak. This report is a clear warning that

Is this the worst economy since the Great Depression?

QUESTION:

CarterADMINISTRATION

20%Prime Rate

April 2, 1980Source: www.wsjprimerate.us

COMPANIES COULD NOT AFFORD TO BORROW MONEY TO OPERATE THEIR FACTORIES. SUPPLY DRIED UP. AS A RESULT, THE INFLATION RATE AT THE TIME WAS 14.5 PERCENT.

“Are you better off today than you were four years ago?”

Ronald Reagan

Landslide!

Reagan Carter

Sour

ce: w

ww

.use

lect

iona

tlas.

org

col·lapse [kuh laps] –noun. A sudden and complete failure; a breakdown.

“You will be confronted with questions every day that test your morals. Think carefully, and for your sake, do the right thing, not the easy thing.”

Commencement Speaker St. Anselm College, 2002

“Ex-Tyco Chief Executive Kozlowski Sentenced to 8 to 25

Years”Headline / Bloomberg.com / 09.19.2005

Strong Fundamental Values

“We must demand of ourselves and of each other the highest standards of individual and corporate integrity. We safeguard company assets. We comply with all company policies and laws.”

Source: The Tyco Guide to Ethical Conduct

“We safeguard company assets.”

Regency mahogany bookcase, c. 1810, $105,000

George I walnut tallcase clock, $113,750

Custom queen bed skirt, $4,995

Ascherberg grand piano, c. 1895, $77,000

Chandelier, Painted Iron, c. 1930, $32,500

Pair of Italian armchairs, c. 1780, $64,278

Persian rug, 20 feet by 14 feet, $191,250

“In corporate America, crime pays. Handsomely. Grotesquely, even.”Arianna Huffington Pigs at the Trough

ENRON MERRILL LYNCH J.P. MORGAN WORLDCOM GOLDMAN SACHS

HEWLETT-PACKARD CITIGROUP IMCLONE GROUP BANK OF AMERICA

a slippery slope

Just days after receiving an $85 billion taxpayer-funded loan, AIG spent $440,000 to pamper executives for an entire week at the extravagant St. Regis Resort.

Bad Judgment?

“I would like my life back.”Tony Hayward, former BP CEO

Photo by W

in McN

amee/G

etty Images

“The best year in safety performance in our company’s

history.” Transocean Ltd.

“Exxon Mobil 1Q Net Soars 69% On Higher Oil Prices”

The Wall Street JournalApril 28, 2011

Corporate>> FEUDALISM

PERCENT

Less than half of all U.S.

employees trust their senior

leaders.

49

Source: Watson Wyatt

HEARTa RECESSION

OF

THE

TRICKLE-DOWN THEORY

When government allows businesses to flourish, their resulting profits will ultimately trickle down to lower-income individuals.

Aghion, P., & Bolton, P. (1997). A theory of trickle-down growth and development. Review of Economic Studies, 64(219), 151-172.

Reaganomics

Ripple Out vs. Trickle Down

a case study

“And standing there bareheaded in the sun, apologizing to the beggar, the strangest thought flashed across his mind. He and this poor man were brothers.”

Sara Maynard Princess Poverty

“”

Francis, go and repair my church, which, as you see, is falling into ruins.

SOURCE: Edmund O’Gorman, St. Francis for Today

Stones and mortar?

Fix the recession!

Stocks and bonds?

Franciscanomics

If a few leaders can cast suspicion on the integrity of an entire nation...

...then why can’t some morally strong leaders restore the public’s faith that people are generally good?

“But wait. We’re not saints.”

“Furloughs Hit the White-

Collar Set”Headline / Wall Street Journal / 02.24.2009

Facing $38 million in budget cuts, school officials chose to furlough

every employee for five days.

Faculty and staff raised over $70,000 to help reimburse 158 lower-wage co-workers for lost income during the furloughs.

Francis-like behavior

“And last but not least, we wish to thank our loyal

employees. Without them...”

—Final paragraph of most annual reports

60M I L L I O N

“I prefer to live in a world where this is ordinary.”

Leonard Abess

10.1 percent

“Was thinking that if each of us helped just 1 person find a job, we could start making a dent in unemployment. You game?”

Mark Stelzner

“You game?”

40,000In the first year, over

Job Angels started helping people find jobs.

Joe Works

R A N D O M acts of kindness

“As a business owner, it is terrifying to see that the world we operate in is drastically and rapidly

changing.”

–Joe Works

LISA EPSTEINVERSUS THE

ROBO-SIGNERS

predatory lending

“At its most rapacious, greed trumps rationality, judgment, perspective, and any concern with the collateral damage it may cost.”

Tony Schwartz

’ I was naïve to believe that banks

and borrowers were held to the same laws. I know better now.‘‘ ’

Lisa Epsteinwww.foreclosurehamlet.org

HUD reports that there are nearly 650,000

homeless people in the country on any given day.

“...other places not meant for human habitation.”

PETERSAMUELSON “I had to do something about the lady living in a refrigerator box near where I sleep in a house with a refrigerator.”

Photo: Nick Stern Photo: Nick Stern

Photo: EDAR Photo: Joe Ravetz

EDAR (E!"#$%&"'D"("#!"('A R%%)), Inc. *+*,'-.$/"$'0!"&1"'2134"'5,6' '7%('0&8"/"(9':0';++<='>?7?@ABC?'5*+'<+D'*+++'E'*+;' 'F0G'5<5'5*,',*DD'

HHHI"J.#I%#8' '3&)%K"J.#I%#8

Photos: Nick Stern

Photo: Nick Stern Photo: Nick Stern

Photo: EDAR Photo: Joe Ravetz

EDAR (E!"#$%&"'D"("#!"('A R%%)), Inc. *+*,'-.$/"$'0!"&1"'2134"'5,6' '7%('0&8"/"(9':0';++<='>?7?@ABC?'5*+'<+D'*+++'E'*+;' 'F0G'5<5'5*,',*DD'

HHHI"J.#I%#8' '3&)%K"J.#I%#8

“This is a modest way to make a difference in

people’s lives.” Peter Samuelson

Peter Samuelson

“It’s not morally acceptable to let people remain in miserable

circumstances, if you aren’t offering alternatives.”

FACT:On an average day, more than 60,000 adults and children seek refuge from abusive relationships. Nearly 5,000 requests for emergency shelter or transitional housing go unmet every day.

National Network to End Domestic Violence

Celena’sLaw

“For many years I had no voice. Well, I’ve found it now.”

Celena Roby

Do know what it means to be hungry?YOU

the h word

1 in 6Americans is food insecure, including

a quarter of the country’s children.-USDA

ANGELA n

i n Q u e e n s

a recipe for caring

•15 pounds of pasta•22 pounds of rice•60 pounds of chicken•10 pounds of frozen vegetables•10 pounds of onions•10 pounds of peppers

“I have a checking account full of smiles.”

Jorge Muñoz

The Wolf of Gubbio

interdependency

“The Catholic World October 1903

THE EARLY FRANCISCANS, WITH THEIR PASSIONATE SYMPATHY FOR THE SUFFERING AND OPPRESSED, LARGELY CONTRIBUTED TO THE FINAL DISAPPEARANCE OF CORRUPT FEUDALISM.”

“A little man may do a great deal of

harm; and pray, why not a little

man do a great deal of good?”

Cotton Mather, 1825 Essays to Do Good

You might not become a saint—or get the publicity afforded today’s notorious business scoundrels.

Franciscanomics

But you’ll succeed in proving that there are still

in the world today.HONORABLE PEOPLE

You game?

FRANCISCANOMICS

Indiana YMCAs Executive Conference May 5, 2001