By Victor Taylor
In the past few months we have heard the gruesome details of various business failures across the American and global economies, which, in a certain respect, is even more terrifying than the actual occurrence of the disasters themselves. It is awful that bad things happen; we accept this as a fact of life; however, when bad things happen and it slowly begins under someone’s nose, then the merely awful becomes the tragic—preventable disaster. Why didn’t the government repair the levees in New Orleans before Katrina? Or, why didn’t someone tell us that there were no WMD in Iraq? Actually, someone did, but the reader gets my point.
The recent global collapse of various business sectors, I will argue, should not be seen in this light. Yes, the circumstances that led up to the ruin of parts of the banking and financial sectors did begin under the noses of those in power. This is not the same as the levees in New Orleans, however. No one fixed the levees because government (state and/or federal) was lazy and/or incompetent and/or out of money. Perhaps there was even some malicious and willful neglect. Who knows? The banking and financial problems, which are the “heart of the system,” however, were not problems to be fixed or covered up; they were “problems” that made a lot of people a lot of money.
So, the banking and financial meltdown is very much like an ATM malfunctioning. Yeah, it is broken, but it keeps spitting out money and lots of it! My point here is very simple. There isn’t a “problem” within business at all—the problem is business. The broken ATM, using this analogy, only becomes a “problem” for everyone else when it STOPS spitting out money, which it did.
Why is it important to “re-assign” the problem here? I can answer this fairly succinctly. Maintaining that the meltdown is a “problem” presumes that something went wrong, which means that there is a state of affairs in which things go “right.” This isn’t true. The great charade of business is that it is ordered, rational, manageable, and predictable. The falsity of this belief is painfully obvious in the bailout project headed by “Hank” Paulson—where did the billions go and why hasn’t it helped?
This myth also became glaringly obvious when former Fed chairman Alan Greenspan appeared “dumbfounded” at a congressional hearing about the mortgage “crisis.” He didn’t “know” how it could have happened. In other words, reality didn’t obey the metaphysico-economic “laws” divined by him and the lending industry. Business (and this is the problem) is presumed to “know” (the Real) and if we continue to allow it to “fix” itself and affirm its own myth of the Real that it perpetrates on us we will also continue to suffer.
Let us look at the academy as a case in point—BRU, Business Real University. Business and academia have always been at odds. Frank Donoghue in his recent book entitled The Last Professors: The Corporate University and the Fate of the Humanities describe an unpleasant history in which business leaders have traditionally denigrated the “knowledge producing” function of the academy. Andrew Carnegie is an example par excellence. In an 1891 commencement address at the Pierce College of Business and Shorthand of Philadelphia, Carnegie ridiculed the “liberal arts” and celebrated the fact that the graduates of PCBS had not wasted their time studying “dead languages” or “Shakespeare” (4). Instead, he proclaimed, they had spent their time wisely, learning something practical, “shorthand” and “typing.”
The story that Donoghue tells becomes even more horrifying after Carnegie. Business leaders, as Donoghue tells it, “invested” in colleges and universities not to advance education but to thwart education, especially a liberal arts education. Clarence F. Birdseye, of frozen food fame, published Individual Training in Our Colleges, a pamphlet that chastised academia for its failure to operate on a business model, with colleges understood as “factories” and students as “products” (5). What would Mr. Carnegie and Mr. Birdseye say now? Given the global business crisis today, would we really want colleges and universities to be “factories”? Had colleges and universities completely transformed into factories, as many business leaders would have preferred, we wouldn’t have colleges or universities—just like we don’t have factories or many of them today. My point here is simple.
Business, for more than a century, has claimed to have a metaphysical and epistemological “leg up” on everyone else when it comes to knowledge of the Real. Business leaders, even today, oversee, more or less, the “real world” to which the academic “fake world” is totally irrelevant except for its ceremonial function. So, not only do we have massive fraud within business, at the heart of business in the banking and financial sectors, we have the fraud of and as business—its “myth of the Real” that dictates nearly every aspect of our lives.
The global “business” collapse, then, should give us pause. Do we really want to endorse and have confidence in business’s metaphysical command over the Real? Greed, fraud, and incompetence seem to be the ingredients of “business-reality” and, in the end, the only business-metaphysics ever demonstrated was that it didn’t know at all. Or, it demonstrated that what it did know was meaningless.
As metaphysico-business constricts and determines “Reality” more restrictively, colleges and universities must open new “markets” and find new “branding” opportunities for themselves. With “knowledge” as knowledge only if it is “marketable,” colleges and universities must become “polymorphously perverse,” creating various sites of “pleasure” for students in the form of cruise ship like amenities. So, when people criticize the “Club-Ed” facilities of a college or university, one should point back to business and say, “They have so restricted what counts as knowledge that we have to now ‘sell’ pleasure to get by.” Instead of fighting over the “Real” or advocating for a more diverse understanding of knowledge, colleges and universities have reacted to metaphysico-business by becoming “anti-business businesses,” aka the entertainment sector.
So, read Shakespeare and simply ENJOY it! Come to college and have FUN! What has been the upshot of this? Colleges and universities have come to see themselves as “retail” spaces, with every square inch featuring a price tag—makeshift sweatshirt and T-shirt stands at graduation. My late friend and professor Bill Readings in The University in Ruins described this as a conversation of people from members of a community to “customers.” So, not only does metaphysico-business tell us how and where to spend money, it tells us what has and doesn’t have “value.” Members of a community don’t have “value” and customers do. The liberal arts as “enjoyment” has “value” and the liberal arts as “knowledge” does not.
Not only have we known that business, as Oscar Wilde pointed out, knows the cost of everything and the value of nothing, we more recently have come to know that business doesn’t even know what it is supposed to know—cost. We accepted the former because we thought it was a necessary evil—an unfortunate or dirty trade-off. But the latter realization . . . the realization that business can’t even “account” for its own accounting . . . its metaphysical claim to a superiority of knowledge of Real . . . is the great shock or should be. We always knew that business failed to see value beyond “marketability,” but now we know that business cannot even assure us that its core Reality is something it can manage.
Business, therefore, fails at business. Its greatest failure of all!
The current global crisis should give academy dwellers an opportunity to challenge business’ claim to know the Real. This could become an enormous deconstructive maneuver, with academics pointing out an important fact; not that business doesn’t understand the value of “education” (which it doesn’t), but that it doesn’t even understand the “cost.” We may find top executive on our side, for once. Former mega-CEO Carly Fiorina has called for a comprehensive overhaul of popular business models, e.g. short term stock price blindness. In other words, Fiorina and Mitt Romney, may be inviting us to conclude that business doesn’t know the Real as well as it claims. Again, business fails as business.
My next blog post will focus on the “value model” university: “If They Can’t Run Themselves, How Can They Run Us?”
Victor Taylor is the author of Religion After Postmodernism (University of Virginia Press). He lives in Pennsylvania.