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Actually, I view this a bit differently. Chris Rauh's question about
people who 'got easy money on a free market' may be an artifact of too
much socialism in his education <grin, wink at Chris>. In
economics, people who get money through the free market are offering a
socially useful service. Generally they work very hard at that for that
money. Michael Milliken, for example, was loathed for his work in junk
bonds, yet some economists praised him as helping the market be more
efficient. The free market almost never gives money away easily. <br>
<br>
The other angle is when wealthy families let non-working members
benefit, such as the wasted life of Paris Hilton. Here is an
interesting article about that. Here I agree completely with Rauh;
unearned income is a socially destructive force. Michael's phenomenon
is called <i>apoptosis</i> or programmed cell death, and it occurs
when the cell is 'not useful.' My Scotch Pines do that because they
have grown too close together and the needles that cannot get sun die
off. <br>
<br>
Cargill, it appears, tried to convert the parasitic members of the
family into productive forces. See also the book, <i>The Millionaire
Next Door</i> and especially the chapter on giving children unearned
income. <br>
<br>
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<div class="mainarttitle">Bread And Circuses</div>
</div>
<div class="mainartauthor">Brigid McMenamin, <a
class="mainartsrc" href="http://www.forbes.com/forbes">Forbes Magazine</a>,
<span class="mainartdate">12.25.00</span></div>
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<td>Family
members who work in the business tend to view nonworking shareholders
as parasites, explains Michael Horvitz, a partner at Cleveland law firm
Jones Day Reavis & Pogue who helps rich families with such
problems. Shunted aside, the nonworking shareholders, often younger,
can't understand why their paper wealth doesn't mean more cash. They
tend to suspect their elders of cheating them to protect their own
positions, perks, progeny and estate plans. "It's really an attitude
problem," says Horvitz. Here are how some companies besides Milliken
have quelled potential uprisings. </td>
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<td>Company </td>
<td>Est. size </td>
<td>Founder(s) </td>
<td> Notes </td>
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<td align="left">Belk Inc. est. 1888 retail </td>
<td>$2.1 b (sales) </td>
<td>William Belk & John M. Belk </td>
<td>Since
1997 the Belk empire has been run by three third-generation men in
their 40s, answering to an uncle who is still chairman. Though the
family has had control issues in the past, they are running more
smoothly these days. They bought out one dissident son of the founder
in 1996. Other family members sold some of their shares back, in
connection with the 1998 consolidation of 112 corporations into Belk
Inc. </td>
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<td>Cargill Inc. Minneapolis agriculture </td>
<td>$48 b (rev.) </td>
<td>William W. Cargill </td>
<td>In
the mid '90s, nonworking cousins in their 40s, irked at poor dividends,
threatened to sue Cargill. Their elders appeased them by guaranteeing a
certain level of earnings paid as dividends and putting four younger
relations on the board. The company also agreed to buy back shares at a
price set by an independent appraisal and began holding regular family
meetings, offering jobs, resume help and business seminars. </td>
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<td>Cleveland Group Atlanta est. 1925 electrical
equipment & aviation </td>
<td>$160 m (sales) </td>
<td>Ras H. Cleveland </td>
<td>The
Cleveland Group is run by third-generation James Jr. with some fourth
and fifth generation help. In 1990 the company asked 20-plus nonworking
family shareholders to sell out at 40% less than fair market value. All
agreed. </td>
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<td>Freedom Communications Irvine, Calif. est. 1927
newspapers & tv & magazines & Internet </td>
<td>$775 m (sales) </td>
<td>R.C. Hoiles </td>
<td>Freedom
Communications has been in the founder's family for four generations.
It is 100% family owned but since 1992 has had outside CEOs, and half
its board members have been outsiders. In effort to keep young
shareholders happy, starting in 1996 the company has offered
internships and a training program. They also hold special meetings for
all fourth-generation members and an intergenerational family council
with traditions like "passing the microphone" a la TV talk shows.
Founder's 29-year-old great grandson Raymond C. H. Bryan serves on
board. </td>
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<td>Laird NortonCo. Seattle lumber, real est. fin.
svcs est 1885 </td>
<td>$652 m (sales) </td>
<td>Matthew G. Norton & William H. Laird </td>
<td>Laird
Norton has more than 200 shareholders, all heirs of two clans who have
owned the company for seven generations. They make no promise of jobs
for young shareholders, but keep them happy by helping them find their
own careers with resume advice and by making investments in their new
businesses. So, though the firm began offering to redeem shares in
1996, it has had few takers. </td>
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<td class="mainarttblsrc">Sources:
Cleveland Group; 2000 Dun & Bradstreet's America's Corporate
Families; Freedom Communications; Dennis T. Jaffe of Aspen Family
Business Group; Joseph Astrachan, Family Business professor at
Atlanta's Kennesaw State University; Hoover's; 2000 Directory of
Corporate Affiliation; Forbes' Statistics </td>
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<br>
G. Reinhart-Waller wrote:<br>
<blockquote type="cite"
cite="mid00b401c50248$5d56aef0$1e03f604@S0027397558"><br>
Where I come from (out west in California) it is called Freeloader.
<br>
<br>
Gerry
<br>
<br>
----- Original Message ----- From: "Michael Christopher"
<a class="moz-txt-link-rfc2396E" href="mailto:anonymous_animus@yahoo.com"><anonymous_animus@yahoo.com></a>
<br>
To: <a class="moz-txt-link-rfc2396E" href="mailto:paleopsych@paleopsych.org"><paleopsych@paleopsych.org></a>
<br>
Sent: Sunday, January 23, 2005 3:32 PM
<br>
Subject: [Paleopsych] failure of the system
<br>
<br>
<br>
<blockquote type="cite"><br>
<blockquote type="cite">
<blockquote type="cite">I am sure there are as many people who
got easy
<br>
</blockquote>
</blockquote>
money on a free market and are living off that without
<br>
producing anything. Isn't that a failure of that
<br>
system?<<
<br>
<br>
--Interesting question. In the biological model, that
<br>
would have to be "yes". Cells that store up energy and
<br>
don't release it, are useless to the organism.
<br>
<br>
Michael
<br>
<br>
<br>
<br>
<br>
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