They oppose openness in financial transactions, whether consciously or subconsciously, because such openness is the only way to stop financial cheating and the shenanigans that so drastically boosted their income… and still do. A recent article in New Scientist by Mark Buchanan [March 19, 2011] cites several studies on the matter, including one from the Quarterly Journal of Economics that makes the point that every possible regulatory “fix” can be gamed or evaded so long as the details of transactions are kept secret. In short, the key factor that enabled investment banks to extort over a trillion dollars from the American people and the government and to pay and keep paying multi-million dollar bonuses to thousands of employees was not primarily inadequate regulation but secrecy.
In short, secrecy enables criminality. We all know this, I suspect, in our heart of hearts, because, except for psychopaths, we all behave far better when we’re under observation… or know that we could be. It’s amazing how traffic slows to the speed limit when a highway patrol cruiser is sighted.
So why do we continue to insist on the details of our lives, particularly the financial details, being kept secret? How long would discriminatory hiring and salary practices exist if everyone’s salary in a company happened to be public? Is it any wonder that less wage discrimination tends to occur in the federal government, where salaries are pegged to known scales that are public?
And could all of those strange and discriminatory loans that fueled the last boom and bust have been made to the same extent and degree if the details would have had to have been made public? I have my doubts.
Yet, for all this, I have no doubts that most people would cringe, if not do worse, if more openness were required by law – at least openness for them. I recently mentioned the action of the Utah state legislature to effectively gut the Utah open records law, and I can now report, for those who have not followed this, that the public outcry was so great that the legislature repealed the very law they had passed the month before, a law which would have, in practical terms, exempted all electronic communications from the provisions of the open records law, among other things. So it was very clear that the public believes that legislators should be publicly accountable. Yet if such provisions were suggested for individuals, or for corporations, the howling would deafen everyone.
Currently, the U.S. Supreme Court is hearing a wage-discrimination case filed against WalMart, as a class action suit on behalf of female employees. The suit alleges that WalMart systematically paid women less than men in exactly the same jobs with the same duties. In their questions at the hearing, a number of justices raised the question about how difficult implementing any decision would be, suggesting that even the Supreme Court doesn’t want to get involved in making such records public, let alone making a ruling that could indeed lead to more openness for all corporations.
So often we talk about not wanting everyone to know our business, our income, etc., but the problem with this is that while our neighbors and our friends may not know… the government already knows, as do most corporations.
Perhaps it’s time that we know the same about them.




