Archive for the ‘Business’ Category


In Bureaucracy, Business, History, Law, Politics, Social commentary on September 7, 2015 at 12:57 am

John Schnatter, the CEO of Papa John’s Pizza, doesn’t like the Affordable Care Act (ACA), better known as Obamacare.

And Schnatter bluntly warned his employees: When the Act took effect, Papa John’s Pizza would change in two ways.

First, it would be forced to do something it hadn’t done since its founding in 1984: Offer healthcare coverage to its 16,5000 employees or pay a penalty to the government.

Second, it would raise the prices of its pizzas.

John Schnatter

How high would they go up?

By as much as eleven to fourteen cents price increase per pizza, or fifteen to twenty cents per order!

And Schnatter made it clear: He wasn’t going to take this lying down.  He was determined to pass along those costs to his customers.

“If Obamacare is in fact not repealed,” Schnatter told Politico, “we will find tactics to shallow out any Obamacare costs and core strategies to pass that cost onto consumers in order to protect our shareholders’ best interests.”

After all, why should a multi-million-dollar company show any concern for those who make its profits a reality?


  • Papa John’s is the third-largest pizza takeout and delivery chain in the United States.
  • Its full year 2014 revenues were $1.60 billion, an increase of 11.1% from 2013 revenues of $1.44 billion.
  • Its full year 2014 net income was $73.3 million, compared to 2013 net income of $69.5 million.

Click here: Papa John’s Announces Fourth Quarter and Full Year 2014 Results (NASDAQ:PZZA)

Nor should anyone expect Schnatter to take a pay cut, just so his employees can obtain medical care when they need it.

Schnatter’s total calculated compensation for 2014 came to $3,456,146.

Click here: John H. Schnatter: Executive Profile & Biography – Businessweek

“We’re not supportive of Obamacare, like most businesses in our industry,” Schnatter–a supporter of Republican Presidential candidate Mitt Romney–admitted in a 2012 interview with Politico.

To demonstrate his opposition to providing medical insurance for all Americans, Schnatter hosted a fundraising event for Mitt Romney at his own Louisville, Kentucky mansion in May, 2012.

The luxurious setting for the fundraiser gave Romney a rush of pure, plutocratic ecstasy.

“What a home this is,” gushed Romney. “What grounds these are, the pool, the golf course.

“You know, if a Democrat were here he’d look around and say no one should live like this. Republicans come here and say everyone should live like this.”

John Schnatter’s estate

Of course, Romney conveniently ignored a brutally ugly fact:

For the vast majority of Papa John’s minimum-wage-earning employees–many of them working only part-time–the odds of their owning a comparable estate are non-existent.

In a typical demonstration of corporate thinking, Judy Nichols, a Papa John’s franchise owner in Beaumont, Texas, said:

“I have two options, I can stop offering coverage and pay the $2,000 fine, or I could keep my number of staff under 50 so the mandate doesn’t apply,” she told Legal Newsline.

In short: Defy the law, and employee helathcare needs be damned.

In fact, that’s exactly what Schnatter announced he would do: Reduce his workers’ hours–since Obamacare mandates that only employees working more than 30 hours per week are covered under their employers’ health insurance plan.

Nichols claimed that the the law might cost her $20,000 to $30,000 in taxes: “Obamacare is making me think about cutting jobs instead,” she said.

Translation: If you force me to behave responsibly, I’ll just have to take it out on millions of willing-to-work Americans.

So how can America cope with behavior that destroys not only lives but the economy as well?

By passing–and vigorously enforcing–a nationwide Employers Responsibility Act.

Among its provisions:

Employers would be required to provide full medical and pension benefits for all employees, regardless of their full-time or part-time status.

Increasingly, employers are replacing full-time workers with part-time ones—solely to avoid paying medical and pension benefits.

Requiring employers to act humanely and responsibly toward all their employees would encourage them to provide full-time positions—and hasten the death of this greed-based practice.

The seeking of “economic incentives” by companies in return for moving to or remaining in cities/states would be strictly forbidden.

Such “economic incentives” usually:

  1. allow employers to ignore existing laws protecting employees from unsafe working conditions;
  2. allow employers to ignore existing laws protecting the environment;
  3. allow employers to pay their employees the lowest acceptable wages, in return for the “privilege” of working at these companies; and/or
  4. allow employers to pay little or no business taxes, at the expense of communities who are required to make up for lost tax revenues.

Employers who continue to make such overtures would be prosecuted for attempted bribery or extortion:

  1. Bribery, if they offered to move to a city/state in return for “economic incentives,” or
  2. Extortion, if they threatened to move their companies from a city/state if they did not receive such “economic incentives.”

This would

  • protect employees against artificially-depressed wages and unsafe working conditions;
  • protect the environment in which these employees live; and
  • protect cities/states from being pitted against one another at the expense of their economic prosperity.

It’s past time for America to protect employees who work for a living from CEOs who simply take credit for the work those employees do.


In Business, Law, Social commentary on September 4, 2015 at 12:00 am

Receiving unsolicited, get-rich-quick emails has become a regular headache for millions of Internet users.

And the reason for this is that, all too often, they succeed in defrauding their recipients. In 2013, losses from Nigerian scams totaled $12.7 billion.

Click here: Millions of victims lost $12.7B last year falling for Nigerian scams | GeekTime

Here’s how to spot the warning signs of fraud:

  • Unsolicited:  You’re told you’ve won a lottery you never entered, or have inherited a fortune from someone you never knew existed.
  • Addressed Generally: “Attention!” “Dear Friend,” “Attention the owner of this email,” “Hello, Dear.”  Your name is not mentioned, because this email has been mass-mailed to thousands of intended victims.
  • Appeals to religion: “Hello Beloved in the Lord” or “Yours in Christ” seeks to create a bond with those who deeply believe in God.
  • Misuse of English: Mis-spellings and faulty grammar usually denote someone–probably a foreigner–using English as a second language.   Examples: Run-on sentences; “you’re” for “your”; “except” instead of “accept”; “Dear Beneficial” instead of “Dear Beneficiary.”
  • Appeals to Sympathy: “My husband just died” or “I am dying of cancer.”  This is to make you feel sorry for the sender and lower your guard as an intended victim.
  • Use of Important Titles/Organizations: “Director,” ‘Barrister,” “Secretary General of the United Nations,” “Police Inspector.” This is to impress recipients and convince them that the email comes from a trusted and legitimate organization.
  • Request for Personal Information: This includes some combination of: Name / Address / Telephone Number / Bank Name / Bank Account Number / Fax Number / Driver’s License Number / Occupation / Sex / Beneficiary / Passport Number
  • Claims of Deposit: “We have deposited the check of your fund to your account” is a typical line to instantly grab your attention. Someone you’ve never heard of claims he has just put a huge amount of money into an account you know nothing about.  Nor can you access it unless you first pay a “contact fee.”
  • The “Bank” is in Africa: Unless you know you have relatives there, this should be a dead giveaway to a scam. Africa is a continent kept alive by the charity of other nations.  It’s not in the business of doling out large sums of money to Westerners.

  • Overseas Phone Numbers: If you call these, you’ll have a huge bill.  So many people skip calling and just send the money “required” to receive their “cash prize.”
  • Highly Personal Requests: Asking you–someone they’ve never met–to assume the burden of acting as the executor of their “Last Will and Testament.”
  • Love Scams: The scammer poses as a man or woman–usually outside the United States–seeking love.  A series of emails flows back and forth for days/weeks, until the scammer says s/he will be glad to fly to the United States to be yours.  All you have to do is put up the money for the flight cost.
  • “Make Money From Home”: With most employers refusing to hire, “work from home” scams  promise a way to support yourself and your family. You’re required to provide bank information or pay an up-front “registration fee.”  Then you wait for job orders–that never come.
  • Debt Relief: Scammers promise to relieve most or all of your debt–for a large up-front fee.  You pay the fee–and are not only out of that money but still in debt.
  • Home Repair Schemes: Huge down payments are required for home repairs that never happen.
  • “Free” Trial Offcers: The service or product is free for awhile, but you must opt out later to avoid monthly billings.
  • The Email Claims to Be From the FBI: Often the “address” includes “Anti-Terrorist and Monetary Crime Division.”  One such email was addressed: “Dear Beneficiary” and offered help in obtaining a “fund.”  The FBI is an investigative agency responsible to the U.S. Department of Justice. It does not resolve financial disputes or secure monies for “deserving” recipients. If the FBI wants to contact you, it will do so by letter or by sending agents to your address. The FBI’s own website states: “At this time we do not have a national e-mail address for sending or forwarding investigative information.”
  • “I Need Help”: You get an email claiming to be from someone you know–who’s “in jail here in Mexico” or some other foreign country.  S/he begs you to send money for bail or bribes to win his/her freedom.  If you get such an email, call the person to make certain.  Don’t rush to send money–chances are it will go directly to a scammer.

FBI Headquarters: Where stopping cybercrime is now a top priority.

There are several commonsense rules to follow in protecting yourself from online scammers:

  • Don’t trust people you’ve never met to want to give you money.
  • Shop online only with well-known merchants who have a good reputation.
  • If an email from a stranger asks you to send money, don’t do it.  If the sender claims to be a friend, call your friend first to make sure it came from him.
  • Don’t click on unknown links–especially those in emails from unknown senders.
  • If you’re required to pay an advance fee–“on faith”–to receive a big amount of money, the odds are it’s a scam.
  • If you can’t find any solid information on a company, chances are it doesn’t exist.
  • Under its new director, James Comey, the FBI is mounting a major effort against cybercrime. Click on its page at http://www.fbi.gov/about-us/investigate/cyber for solid advice on how to protect yourself online.
  • If it sounds too good to be true, the odds are: It is untrue.


In Bureaucracy, Business, History, Law, Politics, Social commentary on September 2, 2015 at 12:04 am

The last seven provisions of a nationwide Employers Responsibility Act would read as follows:

(9) Employers refusing to hire would be required to pay an additional “crime tax.”

Sociologists and criminologists agree that “the best cure for crime is a job.” Thus, employers who refuse to hire contribute to a growing crime rate in this Nation. Such non-hiring employers would be required to pay an additional tax, which would be earmarked for agencies of the criminal justice system at State and Federal levels.

(10)  The seeking of  “economic incentives” by companies in return for moving to or remaining in cities/states would be strictly forbidden.

Such “economic incentives” usually:

  1. allow employers to ignore existing laws protecting employees from unsafe working conditions;
  2. allow employers to ignore existing laws protecting the environment;
  3. allow employers to pay their employees the lowest acceptable wages, in return for the “privilege” of working at these companies; and/or
  4. allow employers to pay little or no business taxes, at the expense of communities who are required to make up for lost tax revenues.


(11)   Employers who continue to make such overtures would be prosecuted for attempted bribery or extortion:

  1. Bribery, if they offered to move to a city/state in return for “economic incentives,” or
  2. Extortion, if they threatened to move their companies from a city/state if they did not receive such “economic incentives.”

This would protect employees against artificially-depressed wages and unsafe working conditions; protect the environment in which these employees live; and protect cities/states from being pitted against one another at the expense of their economic prosperity.

(12)   The U.S. Departments of Justice and Labor would regularly monitor the extent of employer compliance with the provisions of this Act.  

Among these measures: Sending  undercover  agents, posing as highly-qualified job-seekers, to apply at companies—and then vigorously prosecuting those employers who  blatantly refused to hire despite their proven economic ability to do so.

This would be comparable to the long-time and legally-validated practice of using undercover agents to determine compliance with fair-housing laws.

(13)   The Justice Department and/or the Labor Department would be required to maintain a publicly-accessible database on those companies that had been cited, sued and/or convicted for such offenses as

  • discrimination,
  • harassment,
  • health and/or safety violations or
  • violating immigration laws. 

Employers would be legally required to regularly provide such information to these agencies, so that it would remain accurate and up-to-date. 

Such information would arm job applicants with vital information about the employers they were approaching.  They could thus decide in advance if an employer is deserving of their skills and dedication.

As matters now stand, employers can legally demand to learn even the most private details of an applicant’s life without having to disclose even the most basic information about themselves and their history of treating employees.

(14)   CEOs whose companies employ illegal aliens would be held directly accountable for the actions of their subordinates.  Upon conviction, the CEO would be sentenced to a mandatory prison term of at least ten years.

This would prove a more effective remedy for controlling illegal immigration than stationing tens of thousands of soldiers on the U.S./Mexican border. With CEOs forced to account for their subordinates’ actions, they would take drastic steps to ensure their companies complied with Federal immigration laws.

Without employers eager to hire illegal aliens at a fraction of the money paid to American workers, the invasions of illegal job-seekers would quickly come to an end.

(15)   A portion of employers’ existing Federal taxes would be set aside to create a national clearinghouse for placing unemployed but qualified job-seekers.

* * * * *

For thousands of years, otherwise highly intelligent men and women believed that kings ruled by divine right.  That kings held absolute power, levied extortionate taxes and sent countless millions of men off to war–all because God wanted it that way.

That lunacy was dealt a deadly blow in 1776 when American Revolutionaries threw off the despotic rule of King George III of England.

But today, millions of Americans remain imprisoned by an equally outrageous and dangerous theory: The Theory of the Divine Right of Employers.

Summing up this employer-as-God attitude, Calvin Coolidge still speaks for the overwhelming majority of employers and their paid shills in government: “The man who builds a factory builds a temple, and the man who works there worships there.”

America can no longer afford such a dangerous fallacy as the Theory of the Divine Right of Employers.

Americans did not win their freedom from Great Britain–-and its enslaving doctrine of “the divine right of kings”-–by begging for their rights.

And Americans will not win their freedom from their corporate masters–-and the equally enslaving doctrine of “the divine right of employers”–by begging for the right to work and support themselves and their families.

Corporations can–and do–spend millions of dollars on TV ads, selling lies–lies such as the “skills gap,” and how if the wealthy are forced to pay their fair share of taxes, jobs will inevitably disappear.

But Americans can choose to reject those lies–and demand that employers behave like patriots instead of predators.


In Politics, Bureaucracy, History, Social commentary, Law, Business on September 1, 2015 at 1:09 am

Kenneth Fisher, the billionaire CEO-owner of Fisher investments, isn’t worried that America doesn’t have enough jobs for its millions of willing-to-work unemployed.

On the contrary: He–and no doubt many other wealthy CEOs–believe there are too many jobs as it is.

Related image

But for those who are unable to find willing-to-hire employers–or to find employers willing to hire at a living wage–the situation looks different.

This situation, however, does not have to remain this way.

A solution lies at hand–provided Americans are willing to see corporate treason for what it is and to punish it accordingly.

That solution can be summed up as follows: A nationwide Employers Responsibility Act.

Among its provisions:

(1) American companies that close plants in the United States and open others abroad would be forbidden to sell products made in those foreign plants within the United States.

This would protect both American and foreign workers from employers seeking to profit at their expense. American workers would be ensured of continued employment. And foreign laborers would be protected against substandard wages and working conditions.

Companies found violating this provision would be subject to Federal criminal prosecution. Guilty verdicts would result in heavy fines and lengthy imprisonment for their owners and top managers.

(2) Large companies (those employing more than 100 persons) would be required to create entry-level training programs for new, future employees.

These would be modeled on programs now existing for public employees, such as firefighters, police officers and members of the armed services.

Such programs would remove the employer excuse, “I’m sorry, but we can’t hire you because you’ve never had any experience in this line of work.” After all, the Air Force has never rejected an applicant because, “I’m sorry, but you’ve never flown a plane before.”

This Nation has greatly benefited from the humane and professional efforts of the men and women who have graduated from public-sector training programs. There is no reason for the private sector to shun programs that have succeeded so brilliantly for the public sector.

(3) Employers would receive tax credits for creating professional, well-paying, full-time jobs.

This would encourage the creation of better than the menial, dead-end, low-paying and often part-time jobs which exist in the service industry. Employers found using such tax credits for any other purpose would be prosecuted for tax fraud.

(4)  A company that acquired another—through a merger or buyout—would be forbidden to fire en masse the career employees of that acquired company.

This would be comparable to the protection existing for career civil service employees. Such a ban would prevent a return to the predatory “corporate raiding” practices of the 1980s, which left so much human and economic wreckage in their wake.

The wholesale firing of employees would trigger the prosecution of the company’s new owners. Employees could still be fired, but only for provable just cause, and only on a case-by-case basis.

You’re Fired!
You’re Prosecuted!

(5)  Employers would be required to provide full medical and pension benefits for all employees, regardless of their full-time or part-time status.

Increasingly, employers are replacing full-time workers with part-time ones—solely to avoid paying medical and pension benefits.

Requiring employers to act humanely and responsibly toward all their employees would encourage them to provide full-time positions—and hasten the death of this greed-based practice.

(6) Employers of part-time workers would be required to comply with all federal labor laws.

Under current law, part-time employees are not protected against such abuses as discrimination, sexual harassment and unsafe working conditions. Closing this loophole would immediately create two positive results:

  • Untold numbers of currently-exploited workers would be protected from the abuses of predatory employers; and
  • Even predatorily-inclined employers would be encouraged to offer permanent, fulltime jobs rather than only part-time ones—since a major incentive for offering part-time jobs would now be eliminated.

(7) Employers would be encouraged to hire to their widest possible limits, through a combination of financial incentives and legal sanctions. Among those incentives:

Employers demonstrating a willingness to hire would receive substantial Federal tax credits, based on the number of new, permanent employees hired per year.

Employers claiming eligibility for such credits would be required to make their financial records available to Federal investigators. Employers found making false claims would be prosecuted for perjury and tax fraud, and face heavy fines and imprisonment if convicted.

(8) Among those sanctions: Employers refusing to hire could be required to prove, in court:

  • Their economic inability to hire further employees, and/or
  • The unfitness of the specific, rejected applicant.

Companies found guilty of unjustifiably refusing to hire would face the same penalties as now applying in cases of discrimination on the basis of age, race, sex and disability.

Two benefits would result from this:

  1. Employers would thus fund it easier to hire than to refuse to do so; and
  2. Job-seekers would no longer be prevented from even being considered for employment because of arbitrary and interminable “hiring freezes.”


In Politics, Bureaucracy, History, Social commentary, Law, Business on August 31, 2015 at 12:01 am

Kenneth Fisher, chief executive officer of Fisher Investments, has a uniquely CEO view of jobs: “Believe it or not, I’m for fewer jobs, not more.”

Yes, that’s CEO as in Corrupt Egotistical Oligarch.

In the Christmas Eve, 2012 issue of Forbes, he asserted: “Job Growth is Overrated.”

“Believe it or not, I’m for fewer jobs, not more.

“Throughout 2012 we heard politicians and pundits of all stripes yammering endlessly on the need for job growth—that we don’t have enough jobs. It’s pure rubbish.”

Ken Fisher

Kenneth Fisher

According to Fisher, jobs are actually signs of weakness in the economy. Fewer employees can produce more products–and that’s good for us all.

For Fisher, the template for future economic success is Walmart, the nation’s largest private employer:  “With Walmart you get an awe-inspiring company at 13 times my January 2014 earnings estimate, with a 2. 2 % dividend yield.”

Of course, it’s easy for Fisher–a billionaire–to take a “What?  Me Worry?” attitude about the unemployment problems facing millions of willing-to-work Americans.

And it’s certainly easier for him to identify with his fellow billionaire boys club members, the Waltons, than with the low-paid employees of Walmart.

In December, 2013, Walmart announced that it would deny health insurance to newly-hired employees who work less than 30 hours a week.

Walmart eliminates healthcare coverage for certain workers if their average work-week falls below 30 hours–which regularly happens at the direction of company managers.

You can be certain that Fisher doesn’t have to worry about getting top-notch nedical care anytime he thinks he needs it.

Another thing that Fisher clearly admires about Walmart: Its gross profit in July, 2014, stood at $128.08 billion.

C. Douglas McMillon, who became the president and CEO of Walmart Stores on Feb. 1 2014, saw his total compensation skyrocket 168% to $25.6 million

On the other hand:  Most Walmart workers earn less than $20,000 a year.  According to Bloomberg News, the average Walmart Associate makes just $8.81 per hour.

But there is probably one thing about Wal-Mart that Fisher doesn’t want to talk about.

Since 2008, Walmart has fired or lost 120,000 American workers, while opening more than 500 new U.S. stores.  Many workers quit to find better-paying jobs.

As a result, turnover at Walmart has been correspondingly high.

Recently, Walmart has been forced to launch a massive PR campaign to counteract its notoriety for low pay, employment of illegal aliens, lack of health benefits and union-busting tactics.

In 2011-12, Walmart spent $1.89 billion on self-glorifying ads.

And Fisher conveniently ignores the huge emotional role that being employed plays in the United States.

The majority of Americans–especially men–derive their sense of identity from what they do for a living.

Ask a man, “What do you do?” and he’s almost certain to reply: “I’m a fireman.”  Or “I’m a salesman.”

To be unemployed in America is considered by most Americans–including the unemployed–the same as being a bum.

And Republicans are quick to point accusing fingers at those willing-to-work Americans who can’t find willing-to-hire employers.

According to Republicans such as Mitt Romney and Herman Cain: If you can’t find a job, it’s entirely your fault.

And when Republicans are forced–by public pressure or Democratic majorities–to provide benefits to the unemployed, these nearly always come at a price.

Those receiving subsistence monies are, in many states, required to undergo drug-testing, even though there is no evidence of widespread drug-abuse among the unemployed.

But America can put an end to this “I’ve-got-mine-and-the-hell-with-you” job-killing arrogance of people like Kenneth Fisher.


The answer lies in three words: Employers Responsibility Act (ERA).

If passed by Congress and vigorously enforced by the U.S. Departments of Justice and Labor, an ERA would ensure full-time, permanent and productive employment for millions of capable, job-seeking Americans.

And it would achieve this without raising taxes or creating controversial government “make work” programs.

Such legislation would legally require employers to demonstrate as much initiative for hiring as job-seekers are now expected to show in searching for work.

An Employers Responsibility Act would simultaneously address the following evils for which employers are directly responsible:

  • The loss of jobs within the United States owing to companies’ moving their operations abroad—solely to pay substandard wages to their new employees.
  • The mass firings of employees which usually accompany corporate mergers or acquisitions.
  • The widespread victimization of part-time employees, who are not legally protected against such threats as racial discrimination, sexual harassment and unsafe working conditions.
  • The refusal of many employers to create better than menial, low-wage jobs.
  • The widespread employer practice of extorting “economic incentives” from cities or states in return for moving to or remaining in those areas. Such “incentives” usually absolve employers from complying with laws protecting the environment and/or workers’ rights.
  • The refusal of many employers to provide medical and pension benefits—nearly always in the case of part-time employees, and, increasingly, for full-time, permanent ones as well.
  • Rising crime rates, due to rising unemployment.


In Bureaucracy, Business, Law Enforcement, Social commentary on August 26, 2015 at 9:50 am

It’s the nightmare-come-true for corporate America.

Name-brand companies, trusted by millions, hit with massive data breaches.

And with a series of keystrokes, the most sensitive financial and personal information of their employees and/or customers is compromised.

Among those companies:

  • Target
  • Kmart
  • Home Depot
  • JPMorgan/Chase
  • Staples
  • Dairy Queen
  • Anthem, Inc.
  • Sony Pictures
  • Primera Blue Cross
  • U.S. Postal Service

Click here: Data Breach Tracker: All the Major Companies That Have Been Hacked | Money.com

And as of July 15, Ashley Madison joined this list.

Ashley Madison is, of course, the notorious website for cheating wives and husbands.

Launched in 2001, its catchy slogan is: “Life is short.  Have an affair.”

One of its ads featured a photo of a woman apparently kneeling at the feet of a bare-chested man, her hand passionately clawing at his belt.  Next to her was the caption: “Join FREE & change your life today.  Guaranteed!”

Ashley Madison - Ashley Madison Agency

Ashley Madison claims to have more than 37 million members.  And now, untold numbers of them may find their lives changed forever.

Its hackers were enraged at the company’s refusal to fully delete users’ profiles unless it received a $19 fee.

Referring to themselves as “The Impact Team,” they stated in an online manifesto: “Full Delete netted [Avid Life Media, the parent company of Ashley Madison] $1.7 million in revenue in 2014.  It’s also a complete lie.

“Users almost always pay with credit card; their purchase details are not removed as promised, and include real names and address, which is of course the most important information the users want removed.”

On July 20, Avid Life Media defended the service, and said it would make it free.

Adultery-dating website Ashley Madison hacked

The hackers demanded: “AM [Ashley Madison] AND EM [Established Men] MUST SHUT DOWN IMMEDIATELY PERMANENTLY.

“We have taken over all systems in your entire office and production domains, all customer information databases, source code repositories, financial records, emails.

“Shutting down AM and EM will cost you, but non-compliance will cost you more.”

The hackers threatened to “release all customer records, including profiles with all the customers’ secret sexual fantasies and matching credit card transactions, real names and addresses, and employee documents and emails.”

Avid Life Media assured its customers that it had hired “one of the world’s top IT security teams” to work on the breach:

“At this time, we have been able to secure our sites, and close the unauthorized access points. We are working with law enforcement agencies, which are investigating this criminal act.”

This statement gives new meaning to the phrase, “Closing the barn door after the cow has gotten out.”

And it raises the question: Why wasn’t this “top IT security team” hired at the outset?

After all, its database is a blackmailer’s dream-come-true. Yet apparently its owners didn’t care enough about the privacy of their customers to provide adequate security.

On August 18, the hackers began releasing their pirated information.

As usual during a corporation’s data breach, Ashley Madison issued a reassuring statement: “We are working with law enforcement agencies, which are investigating this criminal act.

“Any and all parties responsible for this act of cyber-terrorism will be held responsible.”

Eight of those customers (so far) have decided to hold Ashley Madison responsible. They have filed lawsuits against the company in California, Georgia, Minnesota, Missouri, Tennessee and Texas.

They seek class-action status to represent Ashley Madison’s 37 million users.

The lawsuits claim negligence, breach of contract and privacy violations. They charge that Ashley Madison failed to take reasonable steps to protect the security of its users, including those who paid the $19 fee to have their information deleted.

If they win–and force the owners of Ashley Madison to pay up big-time–this could set a precedent for lawsuits by other victims of such data breaches.

An October 22, 2014 “commentary” published in Forbes magazine raised the highly disturbing question: “Cybersecurity: Does Corporate America Really Care?”

And the answer is clearly: No.

Its author is John Hering, co-founder and executive director of Lookout, which bills itself as “the world leader in mobile security for consumers and enterprises alike.”

Click here: Cybersecurity: Does corporate America really care?

“One thing is clear,” writes Hering. “CEOs need to put security on their strategic agendas alongside revenue growth and other issues given priority in boardrooms.”

Hering warns that “CEOs don’t seem to be making security a priority.”  And he offers several reasons for this:

  • The sheer number of data compromises;
  • Relatively little consumer outcry;
  • Almost no impact on the companies’ standing on Wall Street;
  • Executives may consider such breaches part of the cost of doing business.

“Sales figures and new products are top of mind,” writes Hering. “Shoring up IT systems aren’t.”

The key to sharply reducing data breaches lies in holding greed-obsessed CEOs financially accountable for their criminal negligence.

Only then will their  mindset of “We don’t care, we don’t have to” be replaced with: “We care, because our heads will roll if we don’t.”


In Bureaucracy, Business, History, Politics, Social commentary on August 25, 2015 at 12:06 am

It’s a scene you couldn’t imagine seeing in John Wayne’s 1960 film, “The Alamo.”  Especially with The Duke playing a hard-drinking, two-fisted Davy Crockett.

John Wayne as Davy Crockett

But it occurs in the novel, Crockett of Tennessee, by Cameron Judd.  And it is no less affecting for its being–so far as we know–entirely fictional.

It’s the last night of life for the Alamo garrison–the night before the 2,000 men of the Mexican Army hurl themselves at the former mission and slaughter its 200 Texian defenders.

The fort’s commander, William Barret Travis, has drawn his “line in the sand” and invited the garrison to choose: To surrender, to try to escape, or to stay and fight to the death.

And the garrison–except for one man–chooses to stay and fight.  That man is Louis “Moses” Rose, a Frenchman who has served in Napoleon’s Grande Armee and survived the frightful retreat from Moscow.

He vaults a low wall of the improvised fort, flees into the moonless desert, and eventually makes his way to the home of a family who give him shelter.

But for the garrison, immortality lies only hours away.  Or does it?

An hour after deciding to stand and die in the Alamo, wrapped in the dark of night, Crockett is seized with paralyzing fear.

“We’re going to die here,” he chokes out to his longtime friend, Persius Tarr.  “You understand that, Persius?  We’re going to die!”

Related image

“I know, Davy.  But there ain’t no news in that,” says Tarr.  “We’re born to die.  Every one of us.  Only difference between us and most everybody else is we know when and where it’s going to be.”

“But I can’t be afraid–not me.  I’m Crockett.  I’m Canebrake Davy.  I’m half-horse, half-alligator.”

“I know you are, Davy,” says Tarr. ”So do all these men here.  That’s why you’re going to get past this.

“You’re going to put that fear behind you and walk back out there and fight like the man you are.  The fear’s come and now it’s gone.  This is our time, Davy.”

“The glory-time,” says Crockett.

“That’s right, David.  The glory-time.”

And then Tarr delivers a sentiment wholly alien to money-obsessed men like Mitt Romney and Donald Trump–who comprise the richest and most privileged 1% of today’s Americans.

“There’s men out there with their eyes on you.  You’re the only thing keeping the fear away from them.  You’re joking and grinning and fiddling-–it gives them courage they wouldn’t have had without you.

Maybe that’s why you’re here, Davy–to make the little men and the scared men into big and brave men.  You’ve always cared about the little men, Davy.  Remember who you are.

“You’re Crockett of Tennessee, and your glory-time has come.  Don’t you miss a bit of it.”

The next morning, the Mexicans assault the Alamo.  Crockett embraces his glory-time-–and becomes a legend for all-time.

David Crockett (center) at the fall of the Alamo

David Crockett (1786-1836) lived–and died–a poor man.  But this did not prevent him from trying to better the lives of his family and fellow citizens–and even his former enemies.

David Crockett

During the War of 1812, he served as a scout under Andrew Jackson.  His foes were the Creek Indians, who had massacred 500 settlers at Fort Mims, Alabama–and threatened to do the same to Crockett’s neighbors in Tennessee.

As a Congressman from Tennessee, he championed the rights of poor whites.  And he opposed then-President Jackson’s efforts to force the same defeated Indians to depart the lands guaranteed them by treaty.

To Crockett, a promise was sacred–whether given by a single man or the United States Government.

And his presence during the 13-day siege of the Alamo did cheer the spirits of the vastly outnumbered defenders.

It’s a matter of historical record that he and a Scotsman named MacGregor often staged musical “duels” to see who could make the most noise.

It was MacGregor with his bagpipes against Crockett and his fiddle.

Contrast this devotion of Crockett to the rights of “the little men,” as Persius Tarr called them, with the attitude of Donald Trump, the currently-favored Republican candidate for President in 2016.

Donald Trump

On June 16, while announcing his candidacy, Trump said:

  • “…I don’t need anybody’s money. It’s nice. I don’t need anybody’s money. I’m using my own money. I’m not using lobbyists, I’m not using donors. I don’t care. I’m really rich.”
  • “I did a lot of great deals and I did them early and young, and now I’m building all over the world….”
  • “So I have a total net worth, and now with the increase, it’ll be well-over $10 billion.”
  • “But here, a total net worth of–net worth, not assets, not–a net worth, after all debt, after all expenses, the greatest assets–Trump Tower, 1290 Avenue of the Americas, Bank of America building in San Francisco, 40 Wall Street, sometimes referred to as the Trump building right opposite the New York–many other places all over the world. So the total is $8,737,540,000.”

Those who give their lives for others are rightly loved as heroes.  Those who dedicate their lives only to their wallets are rightly soon forgotten.


In Bureaucracy, Business, Self-Help on August 3, 2015 at 10:33 am

It’s the height of the summer vacation season.  A time when air travel–and airline arrogance–are at their annual height.

Consider the following real-life scenario:

  • You’re vacationing in Denver and must return to San Francisco for an urgent-care medical appointment
  • You’re disabled but nevertheless arrive at the airport on time.
  • The airport–in violation of the Americans With Disabilities Act–doesn’t have anyone assigned to help disabled passengers get onto departing planes.
  • As a result, you arrive at the gate–just as the plane takes off.
  • The airline informs you that if you want to board a plane, you’ll have to pay for another ticket.
  • You can’t afford to buy another ticket–and your urgent-care appointment is tomorrow.

What do you do?

In this case, the stranded passenger–a friend of mine–called me: Bureaucracybuster.

First, I instinctively called the airline company. And that meant starting at the top–the president’s office.

I punched the name of the airline–and the words, “Board of Directors”–into Google. This gave me several websites to click on to obtain the information I needed.

I started dialing–and quickly hung up: I had just remembered the day was a Sunday. Nobody but cleaning crews would be occupying the airline’s executive offices that day.

I had to start all over.

Next, I decided to call Denver Airport and find an official who would help Rachel onto another flight–without charging her for it.

I didn’t know where to start, so I decided that starting anywhere was just fine. As I was routed from one person to another, I would develop a sense of who I needed to reach.

Some of those I reached seemed genuinely concerned with Rachel’s plight. Others gave me the “that’s-life-in-the-big-city” attitude.

One of the latter felt I wasn’t deferential enough in my tone. He threatened to notify the chief of airport security.

“Go ahead,” I said. “I once worked for the United States Attorney’s Office. I’ll be glad to talk with him.”

He backed off–just as I had assumed he would.

Usually the best way to deal with threats is to directly confront the person making them.

(A friend of mine, Richard St. Germain, spent part of his 11 years with the U.S. Marshals Service protecting Mafia witnesses.

Related image

Witness being protected by deputy U.S. marshals

(Many of them didn’t like the places where they were to be relocated under new identities. “I’m going to complain to the Attorney General,” some of them would threaten.

(St. Germain would reach for his office phone, plant it before the witness, and say, “Call him. I’ll give you his number.”  The witness always backed off.)

Eventually I reached the Chief of Airport Operations.

I outlined what had happened. He didn’t seem very sympathetic. So I decided to transfer the problem from Rachel to the airport.

Without raising my voice, I said: “It isn’t her fault that your airport was in non-compliance with the Americans With Disabilities Act and she missed her flight because there wasn’t anyone to assist her.”

Suddenly his tone changed–and I could tell I had definitely reached him.

No doubt visions of federal investigations, private lawsuits and truly bad publicity for his airport flashed across his mind. And all this had been achieved without my making an overt threat of any kind.

He said he would see to it that she got onto another flight without having to buy a second ticket.

I called Rachel to give her the good news. But a few minutes later she called me back, almost in tears.

The airline official at the departure gate was giving her a bad time: “If we have to choose between you and another passenger who has a ticket for this flight, he’ll go, not you.”

She laid out a series of other scenarios under which Rachel would remain stranded in Denver.

So once again I called the Chief of Airport Operations: “I just got a call from Rachel. She’s being hassled by an official at the gate. Can you please send someone over there and put a stop to this nonsense?”

A few minutes later, I got another call from Rachel–this one totally upbeat. She said that a man who identified himself only as an airport official–but wearing an expensive suit–had visited her at the gate.

When the ticket-taking airline official had protested, he had cut her off. The official had then walked Rachel and her baggage onto an otherwise fully-loaded 777 jet bound for San Francisco.

Soon she was en route to San Francisco for her urgent-care medical appointment the next day.

Related image

So if you’re having troubles with an airline:

  • Start by calling the highest-ranking airline official you can reach.
  • You may be able to find this out by punching the name of the airline in Google
  • If the official isn’t available or sympathetic, call the airport.
  • Be persistent–but businesslike.
  • Don’t let yourself be bullied.
  • If you can cite a legal violation by the airline and/or airport, don’t hesitate to do so.
  • But don’t make overt threats: the official will get the message
  • Don’t hesitate to play for sympathy: “This is a woman has an urgent-care doctor’s appointment….”

Then cross your fingers and hope for the best.


In Bureaucracy, Business, History, Law, Law Enforcement, Politics, Social commentary on July 27, 2015 at 12:10 am

According to The Mass Shooting Tracker, a project of Guns Are Cool, there have been 204 mass shooting events in the United States so far in 2015.

There have been 204 mass shootings — and 204 days — in 2015 so far – The Washington Post

There were

  • 18 mass shootings in April;
  • 39 in May;
  • and 41 in June.

July has been a particularly busy month for those seeking the title of “NRA Poster Boy”: 34 mass shootings so far–and the month isn’t over yet.

So what should the surviving victims of these rampages do to seek redress?

And how can the relatives and friends of those who didn’t survive seek justice for those they loved?

Three things:

First, don’t count on politicians to support a ban on assault weapons.

Politicians–-with rare exceptions–-have only two goals:

  1. Get elected to office, and
  2. Stay in office.

And too many of them fear the economic and voting clout of the National Rifle Association (NRA) to risk its wrath.

Second, don’t expect the mental health profession to prevent such future tragedies.

There is simply no definitive way to predict who is likely to commit mass murder.

And even if such a method were developed, it would likely be ruled unconstitutional.  A person can’t be jailed or hospitalized for fear of what he might do.

Third, those who survived these rampages–-and the relatives and friends of those who didn’t–-should file wrongful death, class-action lawsuits against the NRA.

There is sound, legal precedent for this.

For decades, the American tobacco industry peddled death and disability to millions and reaped billions of dollars in profits.

  • The industry vigorously claimed there was no evidence that smoking caused cancer, heart disease, emphysema or any other ailment.
  • Tobacco companies spent billions on slick advertising campaigns to win new smokers and attack medical warnings about the dangers of smoking.
  • Tobacco companies spent millions to elect compliant politicians and block anti-smoking legislation.
  • From 1954 to 1994, over 800 private lawsuits were filed against tobacco companies in state courts. But only two plaintiffs prevailed, and both of those decisions were reversed on appeal.

  • In 1994, amidst great pessimism, Mississippi Attorney General Mike Moore filed a lawsuit against the tobacco industry.  But other states soon followed, ultimately growing to 46.
  • Their goal: To seek monetary, equitable and injunctive relief under various consumer-protection and anti-trust laws.
  • The theory underlying these lawsuits was: Cigarettes produced by the tobacco industry created health problems among the population, which badly strained the states’ public healthcare systems.
  • In 1998, the states settled their Medicaid lawsuits against the tobacco industry for recovery of their tobacco-related, health-care costs.  In return, they exempted the companies from private lawsuits for tobacco-related injuries.
  • The companies agreed to curtail or cease certain marketing practices. They also agreed to pay, forever, annual payments to the states to compensate some of the medical costs for patients with smoking-related illnesses.

The parallels with the NRA are obvious:

  • For decades, the NRA has peddled deadly weapons to millions, reaped billions of dollars in profits and refused to admit the carnage those weapons have produced: “Guns don’t kill people.  People kill people.”  With guns.
  • The NRA has steadfastly defended the right to own Teflon-coated “cop killer” bullets,” whose only purpose is to penetrate bullet-resistant vests worn by law enforcement officers.

  • The NRA has bitterly fought background checks on gun-buyers, in effect granting even criminals, terrorists and the mentally ill the right to own arsenals of death-dealing weaponry.
  • The NRA has spent millions on slick advertising campaigns to win new members and frighten them into buying guns.

  • The NRA has spent millions on political contributions to block gun-control legislation.
  • The NRA has spent millions attacking political candidates and elected officials who warned about the dangers of unrestricted access to assault and/or concealed weapons.

  • The NRA has spent millions pushing “Stand Your Ground” laws in more than half the states, which potentially give every citizen a “license to kill.”
  • The NRA receives millions of dollars from online sales of ammunition, high-capacity ammunition magazines, and other accessories through its point-of-sale Round-Up Program–thus directly profiting by selling a product that kills about 30,288 people a year.

  • Firearms made indiscriminately available through NRA lobbying have filled hospitals with casualties, and have thus badly strained the states’ public healthcare systems.

It will take a series of highly expensive and well-publicized lawsuits to significantly weaken the NRA, financially and politically.

The first ones will have to be brought by the surviving victims of gun violence–and by the friends and families of those who did not survive it.  Only they will have the courage and motivation to take such a risk.

As with the cases first brought against tobacco companies, there will be losses.  And the NRA will rejoice with each one.

But, in time, state Attorneys General will see the clear parallels between lawsuits filed against those who peddle death by cigarette and those who peddle death by armor-piercing bullet.

And then the NRA–-like the tobacco industry–-will face an adversary wealthy enough to stand up for the rights of the gun industry’s own victims.

Only then will those politicians supporting reasonable gun controls dare to stand up for the victims of slaughters that could have been prevented.


In Bureaucracy, Business, History, Law, Law Enforcement, Politics, Social commentary on July 24, 2015 at 12:24 pm

When William J. Casey was a young attorney during the Great Depression, he learned an important lesson.

Jobs were hard to come by, so Casey thought himself lucky to land one at the Tax Research Institute of America in New York.

His task was to closely read New Deal legislation and write reports explaining it to corporate chieftains.

At first, he thought they wanted detailed legal commentary on the meaning of the new legislation.

But then he quickly learned a blunt truth: Businessmen neither understood nor welcomed Franklin D. Roosevelt’s efforts to reform American capitalism. And they didn’t want legal commentary.

Instead, they wanted to know: “What must we do to achieve minimum compliance with the law?”

In short: How do we get by FDR’s new programs?

Fifty years later, Casey would bring a similar mindset to his duties as director of the Central Intelligence Agency for President Ronald Reagan.

William J. Casey 

Congress had banned the Reagan administration from funding the “Contras,” the Right-wing death squads of Nicaragua.

Casey gave lip service to the demands of Congress. But privately, he and Marine Lieutenant Colonel Oliver North set up an “off-the-shelf” operation to overthrow the leftist government of Daniel Ortega.

For three years the operation stayed secret. Then it blew up in November, 1986, as the Iran-Contra scandal.

But the “Casey Doctrine” of minimum compliance didn’t die with Casey (who expired of a brain tumor in 1987).

It’s very much alive among the American business community as President Barack Obama seeks to give medical coverage to all Americans, and not simply the ultra-wealthy.

The single most important provision of the Affordable Care Act (ACA)–-better known as Obamacare–-requires large businesses to provide insurance to full-time employees who work more than 30 hours a week.

For part-time employees, who work fewer than 30 hours, a company isn’t penalized for failing to provide health insurance coverage.

Obama prides himself on being a tough-minded practitioner of “Chicago politics.”  So it’s easy to assume that he took the “Casey Doctrine” into account when he shepherded the ACA through Congress.

But he didn’t.

The result was predictable.  And its consequences are daily becoming more clear.

Employers feel motivated to move fulltime workers into part-time positions–-and thus avoid

  • providing their employees with medical insurance and 
  • a fine for non-compliance with the law.

Some employers have openly shown their contempt for President Obama–-and the idea that employers actually have an obligation to those who make their profits a reality.

The White Castle hamburger chain is considering hiring only part-time workers in the future to escape its obligations under Obamacare.

No less than Jamie Richardson, its vice president, admitted this in an interview.

“If we were to keep our health insurance program exactly like it is with no changes, every forecast we’ve looked at has indicated our costs will go up 24%.”

Richardson claimed the profit per employee in restaurants is only $750 per year. So, as he sees it, giving health insurance to all employees who work over 30 hours isn’t feasible.

Nor is Richardson the only corporate executive determined to shirk his responsibility to his employees.

John Schnatter, CEO of Papa John’s Pizza, has been quoted as saying:

  • The prices of his pizzas will go up–by 11 to 14 cents per pizza, or 15 to 20 cents per order; and
  • He will pass along these costs to his customers.

“If Obamacare is in fact not repealed,” Schnatter told Politico, “we will find tactics to shallow out any Obamacare costs and core strategies to pass that cost onto consumers in order to protect our shareholders’ best interests.”


  • Papa John’s is the third-largest pizza takeout and delivery chain in the United States.
  • Its 2012 revenues were $318.6 million, an 8.5 percent increase from 2011 revenues of $293.5 million.
  • Its 2012 net income was $14.8 million, compared to its 2012 net income of $12.1 million.

Had Obama been the serious student of Realpolitick that he claims to be, he would have predicted that most businesses would seek to avoid compliance with his law.

To counter that, he need only have required all employers to provide insurance coverage for all of their employees—regardless of their fulltime or part-time status.

This, in turn, would have produced two substantial benefits:

  • All employees would have been able to obtain medical coverage; and
  • Employers would have been encouraged to provide fulltime positions rather than part-time ones; they would feel: “Since I’m paying for fulltime insurance coverage, I should be getting fulltime work in return.”

The “Casey Doctrine” needs to be kept constantly in mind when reformers try to protect Americans from predatory employers.


Get every new post delivered to your Inbox.

Join 2,130 other followers

%d bloggers like this: