Supporting San Diego Police Foundation

 From time to time, philanthropy provides an opportunity to support organizations doing important work in the community. Recently, the San Diego Police Foundation visited one of the organizations I belong to, sharing information about its mission and the work it does to support local law enforcement.

The conversation also highlighted an important need: recruiting the next generation of police officers. Communities benefit from attracting young recruits from diverse backgrounds and high ethical standards who want to serve, contribute, and make a difference.

Police officers have an important role in keeping communities safe, and the vast majority are committed to doing the right thing and helping others. The good we want to keep. It is  important to recognize the many officers who dedicate their careers to protecting and supporting the communities they serve.

Supporting organizations such as the San Diego Police Foundation is one small way community members can help strengthen that mission.

San Diego Police Foudation

The Employed and the Functionally Unemployed In July as a Indicators of a Softening Labor Market

When we talk about metrics, surveys and studies draw data from the market and create measures that help us understand what is happening in the economy; in this case labor market. Different studies may approach the same question in slightly different ways, such as, “How is the U.S. labor market doing?” They may examine issues such as wealth concentration, the cost of living, labor-force participation, wages, and worker engagement.

The article below looks at some of the hidden weaknesses in the labor market. The traditional unemployment rate tells us how many people are unemployed, but it does not necessarily tell us whether people are earning enough to support themselves or whether they are working enough hours. Someone who is working part-time involuntarily or earning very low wages may technically be employed, but could still be considered “functionally unemployed” because their employment does not provide enough income to meet their needs.

This also becomes a human capital issue. Improving outcomes for these workers may require developing new skills, improving the match between workers and available jobs, and creating opportunities for higher wages. Ultimately, this suggests that policymakers and businesses should look beyond simply maximizing employment and focus on creating opportunities for sustainable, productive, and adequately compensated employment. 

See the study below.

The Hidden Weakness in the U.S. Labor Market

• The official U.S. unemployment rate fell to 4.1% in July, but CBS News reports that this measure may not capture the full condition of the labor market.
• The Ludwig Institute for Shared Economic Prosperity estimates that 24.9% of workers were “functionally unemployed” in July, including unemployed workers, involuntary part-time workers, and people earning poverty-level wages.
• Functional unemployment has increased for four consecutive months, raising concerns that the labor market may be weakening even while the traditional unemployment rate remains relatively low.
• Wages are also struggling to keep pace with inflation. In July, consumer prices increased 3.4% annually while wages increased 3.2%, putting pressure on household purchasing power.
• Economists caution that the 24.9% alternative unemployment measure should not be treated as equivalent to the official unemployment rate, but weaker wage growth and employment trends could constrain consumer spending and broader economic growth.

Cerullo, M. (2026, August 24). Nearly 25% of U.S. workers are “functionally unemployed,” economic analysis finds. CBS News. https://www.cbsnews.com/news/functional-unemployment-us-labor-market-analysis/

A Picture of a Coffee Shop

The other day, I frequented a coffee shop and noticed how beautifully designed and thoughtfully crafted the space was. I thought you might appreciate this photo—it’s very nicely done.

Prints can be up to
post size for $50.
Glossy or matte.
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 muradabel@gmail.com

Can the Development of Human Capital and Giftedness Help Solve Societal Problems?

 We have discussed talented individuals before, often using terms such as giftedness or genius, depending on how those concepts are defined. Since we also talk frequently on this blog about human capital, this is a fitting topic to explore.

Contributions to society can come from anyone, gifted or not. However, higher levels of cognitive ability, emotional intelligence, creativity, and other capabilities can often contribute to higher levels of performance. The study below argues that if society became better at identifying and developing its gifted and talented members, we might be better positioned to address some of our larger and more complex problems. There is certainly a reasonable argument to be made for that.

(Illustrative Only)

Joe thinks about
his new invention
, "Look at that!
If I put this helmet on in 
the morning while
working I could 
charge my phone
and turn on my coffee
pot. ☕ Amazing!🙃

A Discussion
on Values

History provides plenty of examples of what can happen when highly talented individuals are given opportunities to develop. The Renaissance, for example, was characterized by significant advances in art, science, philosophy, and human understanding. The lesson for organizations today is similar: you do not necessarily need everyone to be "gifted," but you want to identify and develop your best and brightest rather than simply rewarding those who are the most connected (Going back to that overconcentration problem.).

Talent can also be overlooked when our definitions are shaped by assumptions or biases about who is capable of exceptional performance. Gifted individuals can come from virtually any demographic, socioeconomic background, religion or culture. Talent should therefore be viewed broadly. It is not limited to intelligence or academic achievement. It can include technical skills, artistic ability, athletic performance, creativity, leadership, problem-solving, or the ability to make connections between seemingly unrelated ideas.

In many ways, giftedness is about the capacity to absorb information, recognize patterns, make sense of complexity, and use that understanding to create something new or solve a problem. As individuals develop these capabilities, they can move through different stages of learning and development until they reach increasingly sophisticated levels of performance.

The larger question, then, is not simply how we identify gifted people. It is how we take talented individuals from across society and give them opportunities to grow and contribute. If we did that more effectively, what impact might it have on education, organizations, innovation, and society as a whole? Maybe nothing but its a philosophical idea to ponder. 🤔

There is another important question: Are we actually prepared to have highly talented people in our society? Exceptional individuals often challenge existing assumptions. They may introduce different opinions, new ways of living, or unconventional approaches to solving problems. If we are unwilling to accept different perspectives, or limit freedom of speech (i.e. the free society and higher performance and individual freedom argument.) we may unintentionally suppress the very people capable of creating meaningful change. (In other words, why share ideas when it gets misinterpreted, politicized, misused etc. Few positives and lots of negatives. So the type of environment we create is important. Think about that for the long term health and innovative capacity for a company or a society for a moment. This is the human capital element where egagement and disengagement is a root behavioral transaction based on many micro transactions that help create an implicit sense of environmental context.)

(As a side note, a number of drafters of the Constitution were considered gifted. How they thought and came up with those ideas comes from free exchange and open conversations.)

That is something worth thinking about. Developing human capital is not simply about finding the people who already fit our definition of talent. It is also about creating a society and organizations capable of recognizing potential, encouraging different ways of thinking, and giving talented people the opportunity to develop.

Developing Gifted Talent to Address Real-World Problems

• The article argues that developing the talents of intellectually gifted students can contribute significantly to solving major societal problems in areas such as health, science, technology, and economic growth.
• The authors define the intellectually gifted population broadly as approximately the top 5% in cognitive talent and emphasize that these individuals represent an important source of potential innovation.
• Research suggests that mathematical, verbal, and spatial abilities are associated with later contributions to innovation, leadership, and important societal accomplishments.
• A major challenge is identifying talented students from disadvantaged and historically underserved populations who may be overlooked by traditional gifted education programs.
• The authors argue that gifted education should develop more than academic ability, emphasizing open-minded thinking and intellectual humility so that highly capable individuals can apply their talents effectively to complex real-world problems.

Wai, J., & Lovett, B. J. (2021). Improving gifted talent development can help solve multiple consequential real-world problems. Journal of Intelligence, 9(2), 31. https://doi.org/10.3390/jintelligence9020031

Small Business Up, Labor Issue, Profits-August 2026

Small business is the backbone of our society, and we need to foster and support it. Small businesses not only help revitalize our downtowns, but they also create opportunities for a broad segment of society. They give people a place to start their ideas, build wealth, and contribute to an economy that continually renews itself.

So, there is some encouraging news in Bank of America’s report on small businesses. For the most part, hiring is up, although businesses continue to face challenges finding qualified labor. Profitability is also improving, with transportation and manufacturing experiencing some of the largest gains. That is positive news from a small-business perspective.

Travel spending also increased, particularly in areas such as airlines and related transportation. Overall, these are some encouraging indicators. As always, it is important to keep monitoring the statistics and watching what is happening in the broader market.

Small Business Shows Signs of a Summer Rebound

• Small business hiring strengthened during the summer, with Bank of America’s alternative hiring indicator rising 21% year over year in July and NFIB hiring plans reaching their highest level since 2022.
• Labor availability remains a challenge, with 36% of small-business owners reporting that they could not fill available positions in July—the highest level in more than a year.
• Small-business profitability improved, reaching its highest level in more than a year, suggesting that financial conditions may be stabilizing after a difficult start to 2026.
• Transportation and manufacturing businesses experienced some of the strongest profitability gains, while apparel and restaurants saw declines, demonstrating that economic conditions vary significantly by industry.
• Small-business spending increased, particularly on travel. However, travel spending rose nearly 17% while travel transactions increased only 4.5%, suggesting that higher prices—especially for airlines and gasoline—accounted for much of the increase.

Bank of America Institute. (2026, August 18). Small business checkpoint: A summer rebound. Bank of America. https://institute.bankofamerica.com/economic-insights/small-business-checkpoint-august-2026.html

What Are the Characteristics of Adaptive Leaders During Times of Change or Crisis?

Leadership models help us formalize our understanding of how leadership works under different conditions. The study below examines leadership during times of crisis and highlights an important reality: leaders cannot always rely on existing ways of doing things. Sometimes, circumstances require leaders to develop unique solutions to problems.

The study below identifies several characteristics of effective leaders, including flexibility, empathy, innovation, and long-term vision. Leaders need to know where they are going, but they also need to be willing to innovate and adjust their approach along the way.

Empathy is particularly important because leaders must be able to connect with people and understand their emotions and perspectives. Other research has shown that leaders who lack empathy may have difficulty building meaningful relationships with their employees. In turn don't have an intuitive understanding of their needs because they are limited by transactional thinking. A leader may be able to accomplish tasks without strong interpersonal skills, but that approach can sometimes leave a wake of damaged relationships and organizational problems behind. Ultimately leadership will strengthen or weaken an organization. 

Flexibility is equally important because organizations and their environments are constantly changing. Leaders need to recognize when existing approaches are no longer effective and be willing to adapt.

Organizational culture is another important part of this process. When an organization creates an environment that encourages creativity, experimentation, and new ideas, employees are more likely to innovate. A supportive culture can therefore strengthen an organization's ability to adapt when challenges arise.

Overall, there are significant benefits to moving beyond traditional leadership models. Effective leadership is not simply about following established procedures; it is also about knowing when to adapt, innovate, understand people, and respond to changing circumstances.

The study below provides an interesting look at these ideas and how adaptive leadership can help organizations navigate uncertainty.

Adaptive Leadership in Times of Crisis: 

The Importance of Flexibility and ResilienceAdaptive leadership is especially important during periods of crisis because leaders must respond to changing circumstances rather than rely exclusively on established procedures.

1. The study identifies flexibility, empathy, innovation, and long-term vision as important characteristics of effective adaptive leaders.
2. Organizational culture, structure, previous experience with innovation, and organizational strategy can either support or limit the development of adaptive leadership.
3. Leading teams during a crisis is particularly challenging because leaders need additional competencies related to resilience, adaptability, and coordinating people under uncertain conditions.
4. The research suggests that organizations can benefit from moving beyond traditional leadership approaches and developing leaders who can adjust their strategies, support their teams, and respond effectively to changing environments.

Sott, M. K., & Bender, M. S. (2025). The role of adaptive leadership in times of crisis: A systematic review and conceptual framework. Merits, 5(1), 2. https://doi.org/10.3390/merits5010002

The Economic-Social Systems and Freedom of Speech (The hypothethetical Feather Party)

 The hypothetical Feather Party is a learning thought experiment. The purpose of this blog is not necessarily to produce a perfect analysis, definitive answer, or final conclusion. Instead, the goal is to encourage discussion and exploration. If someone presents an alternative perspective, we can simply say, “That’s a great point,” and incorporate it into the conversation. The objective is to explore ideas rather than force an answer, conclusion, or solution.

The hypothetical Feather Party asks us to imagine what a third party of independent voters might look like and how such a group could potentially influence decision-making, particularly at the highest levels of government. We approach the concept from a philosophical and learning perspective.

From that standpoint, a hypothetical Feather Party would generally support policies and decisions that expand and protect freedom of speech. This does not mean supporting speech intended to cause direct harm, but rather recognizing the broader value of allowing people to think independently, share ideas, challenge assumptions, and contribute different perspectives to public discussions.

A healthy society should have room for more than one narrative. People should be able to present competing ideas and perspectives without the expectation that everyone must reach the same conclusion. The purpose is not to force our opinions on others or manipulate the discussion. Instead, it is to create an environment where different perspectives can be considered.

This connects with another learning thought experiment we previously explored through the Allegory of the Clan, which examined economics, social development, bigotry, and the misuse of institutions. When institutions are used to impose particular religious, racial, political, or social beliefs on people, problems can emerge. This raises an important question of purpose and intent: What are institutions supposed to accomplish, and how should they be used? Always support what is right to encourage development.

Freedom of speech can help address these problems before they become larger social conflicts. When people are free to express ideas and challenge prevailing assumptions, society has a larger pool of knowledge from which to develop answers and solutions. Human capital that might otherwise remain disengaged can become part of the discussion.

People should be able to contribute to important conversations without automatically fearing retaliation, losing employment, being targeted, or being excluded simply because they expressed an unpopular idea. Those sometimes can lead to profound breakthroughs in understanding. When people become afraid to participate, society loses potentially valuable knowledge and perspectives.

Ultimately, the hypothetical Feather Party is not intended to provide a definitive political platform. It is simply a learning exercise—a way to explore how independent voters might think about political influence, freedom of speech, social development, and institutional decision-making.

(Illustrative Only)
The average man and
woman seem to have
some great ideas so
let us pass them upward.

So, take it with a grain of salt. There is no predetermined right or wrong answer. If you have a different perspective, that is exactly what makes the thought experiment useful. We can introduce new ideas, challenge assumptions, and modify the model as we learn.

The goal is not to win the argument. The goal is to have the discussion.

Go ahead and read the study.

Three Economic-Social Systems and the Importance of Freedom of Speech

• The article examines the relationship between economic wealth, political systems, freedom of speech, and social well-being, focusing on three systems: plutocracy, autocracy, and democracy.
• The authors argue that plutocracy can generate wealth but may concentrate economic and political power among a small group, limiting meaningful public dialogue and allowing economic interests to influence the media and public discourse.
• Autocracy restricts political participation and freedom of speech because public communication and the media are expected to support the authority of the ruling power rather than encourage open debate.
• Democracy is presented as the system most capable of connecting economic well-being with freedom of speech because public discussion, participation, and competing ideas help citizens address social and economic issues.
• Overall, the article emphasizes that economic prosperity alone does not guarantee social well-being; an open public arena, freedom of expression, and meaningful civic participation are important components of a healthy society.

Mickunas, A., & Kacerauskas, T. (2025). Three economic-social systems and freedom of speech. Transformations in Business & Economics, 24(1), 21–32. https://doi.org/10.15388/Tibe.2025.24.1.1