Capital Reforms

Restructuring Capital Markets to Ensure National Security and Corporate Accountability

Executive Summary

This proposal aims to fundamentally restructure capital markets to address the inherent limitations and negative consequences of the profit-centric corporate model. By amending all corporate charters to include a morality clause, this Order seeks to mitigate the harmful effects of profit-driven behavior on national security, public welfare, and the environment.

Case Study: Boeing

Boeing, a major aerospace and defense contractor, has faced significant scrutiny due to its profit-driven decisions that compromised safety and quality. Over the years, Boeing's management engaged in aggressive cost-cutting measures, including outsourcing critical engineering functions and prioritizing shareholder returns over product integrity.

The consequences of these actions were starkly highlighted by the tragic crashes of the Boeing 737 MAX aircraft, resulting in the loss of 346 lives. Investigations revealed that safety concerns were overlooked, and crucial software flaws were not addressed adequately due to pressures to reduce costs and expedite production.

This case exemplifies the dangers of stripping a company bare for profit. The erosion of engineering expertise and quality control at Boeing not only damaged the company's reputation but also posed severe risks to public safety and national security, given Boeing's role in providing essential aerospace services to the U.S. government.

Key Provisions:

1. Amendment to Capital Markets:

   • Morality Clause in Corporate Charters: All existing and future corporate charters within the United States are amended to include an morality clause. This clause mandates that corporate actions must align with national security, economic stability, and public welfare, and must not willingfully cause harm to the environment.

   • Adjudication by National Security Corporate Accountability Court (NSCAC): The morality clause can be invoked as a matter of national security, with exclusive jurisdiction given to the NSCAC.

2. Corporate Accountability Office (CAO):

   • Establishment: A new wing within the Department of Defense, the CAO, is established.

   • Jurisdiction and Powers: The CAO will oversee compliance with the morality clause, conduct audits, investigations, and reviews, and bring cases against corporations before the NSCAC.

3. Essential Services Oversight:

   • Definition: Essential services include government contracting, critical infrastructure, healthcare, and emergency services.

   • Rigorous Oversight: Corporations providing these services will be subject to stringent oversight by the CAO to ensure their operations align with national interests.

4. Promotion of Cooperative and Decentralized Autonomous Organizations (DAOs):

   • Incentives for Ethical Governance: Incentives such as tax benefits, grants, and favorable regulatory conditions will be provided to promote co-operatives and DAOs.

   • Blockchain Record-Keeping: All corporations are required to maintain corporate records on a blockchain for transparency and security.

Consequences and Penalties:

1. Addressing Harmful Corporate Behavior:

   • Environmental Destruction: The directive aims to prevent corporations from engaging in practices that lead to environmental degradation.

   • National Security Risks: It seeks to eliminate actions that compromise national security through short-term profit motives.

2. Penalties for Non-Compliance:

   • Asset Forfeiture: Corporations found in violation of the morality clause may face asset forfeiture.

   • Jail for Executives and Employees: Executives and employees involved in violations may be subject to criminal prosecution and imprisonment.

   • Nationalization of Corporate Assets: In extreme cases, corporate assets may be nationalized to protect national interests.

Implementation and Enforcement:

1. Regulations and Guidance: The Secretary of Defense, in consultation with the Attorney General and the Secretary of the Treasury, will issue necessary regulations and guidance.

2. Inter-Agency Collaboration: The CAO will coordinate with the SEC, DOJ, and other relevant agencies for effective enforcement.

Effective Date: This Executive Order takes effect immediately upon signing, subject to applicable laws and appropriations.

General Provisions:

• This Order does not impair existing authority of executive departments or create any enforceable rights against the United States.

Severability:

• If any provision is deemed invalid, the remainder of the Order remains effective.

Conclusion: This Executive Order restructures capital markets to promote corporate accountability, environmental stewardship, and national security. By amending the profit-centric corporate model and introducing stringent penalties for violations, it aims to ensure that corporations act in the best interest of the nation and its people.