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OBAMA’S SIX “OBAMACARE” MISTAKES: PART FOUR (END)

In Bureaucracy, Business, History, Law, Politics, Social commentary on August 8, 2014 at 2:45 pm

President Obama claims to be a serious student of Realpolitick.  If this were so, he would have predicted that most businesses would seek to avoid compliance with his Affordable Care Act (ACA).

And the remedy would have been simple: Require 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:

  1. All employees would have been able to obtain medical coverage; and
  2. Employers would have been encouraged to provide fulltime positions rather than part-time ones.

The reason: Employers would feel: “Since I’m paying for fulltime insurance coverage, I should be getting fulltime work in return.”

If the President ever considered the merits of this, he apparently decided against pressing for such a requirement.

Obama is one of the most rational and educated men to occupy the White House.   So what accounts for this failure to expect the worst in people–especially his self-declared enemies–and prepare to counter it?

Niccolo Machiavelli’s brilliant assessments have repeatedly proven invaluable to understanding the failures of the Obama Presidency.  Once again, he provides a shrewd insight into what may be the central reason for all of them.

Niccolo Machiavelli

Writing in The Prince, his classic work on the realities of politics, Machiavelli states:

I also believe that he is happy whose mode of procedure accords with the needs of the times, and similarly, he is unfortunate whose mode of procedure is opposed to the times…. 

On this depend also the changes in prosperity, for if it happens that time and circumstances are favorable to one who acts with caution and prudence he will be successful.  But if time and circumstances change he will be ruined, because he does not change the mode of his procedure. 

No man can be found so prudent as to be able to adopt himself to this, either because he cannot deviate from that to which his nature disposes him, or else because having always prospered by walking in one path, he cannot persuade himself that it is well to leave it.

And therefore the cautious man, when it is time to act suddenly, does not know how to do so and is consequently ruined.  For if one could change one’s nature with time and circumstances, fortune would never change.

Obama is by nature a supreme rationalist and conciliator–not a confronter nor an attacker.  And his career before reaching the White House greatly strengthened this predisposition.

From 1985 to 1988, Obama worked as a community organizer–setting up a job training program, a college preparatory tutoring program, and a tenants’ rights organization.  Such activity demands skills in building consensus, not confrontation.

He then taught at the University of Chicago Law School for 12 years—as a Lecturer from 1992 to 1996, and as a Senior Lecturer from 1996 to 2004, teaching constitutional law.

File:Medium chicagoreflection.jpg

University of Chicago Law School

Law professors spend their time in clean, civil classrooms–far removed from the rough-and-tumble of criminal defense/prosecution.

If Obama had accused President George W. Bush of conspiring with Al Qaeda–as Republicans have repeatedly accused Obama–retribution would have been swift and brutal.

In short: Obama–who believes in reason and conciliation–is paying the price for allowing his sworn enemies to insult and obstruct him

Obama Mistake No. 6: Failing to closely study his proposed legislation.

Throughout his campaign to win support for the ACA, Obama had repeatedly promised:  “If you like your health insurance plan, you can keep your plan. Period.  If you like your doctor, you can keep your doctor.  Period.”

But, hidden in the 906 pages of the law, was a fatal catch for the President’s own credibility.

The law stated that those who already had medical insurance could keep their plans–so long as those plans met the requirements of the new healthcare law.

If their plans didn’t meet those requirements, they would have to obtain coverage that did.

It soon turned out that a great many Americans wanted to keep their current plan–even if it did not provide the fullest possible coverage.

Suddenly, the President found himself facing a PR nightmare: Charged and ridiculed as a liar.

Even Jon Stewart, who on “The Daily Show” had supported the implementation of “Obamacare,” ran footage of Obama’s “you can keep your doctor” promise.

Jon Stewart

The implication: You said we could keep our plan/doctor; since we can’t, you must be a liar.

As a result, the President now finds his reputation for integrity–long his greatest asset–shattered.

All of which takes us to the final warning offered by Niccolo Machiavelli:

Whence it may be seen that hatred is gained as much by good works as by evil…. 

OBAMA’S SIX “OBAMACARE” MISTAKES: PART THREE (OF FOUR)

In Bureaucracy, Business, History, Law, Politics, Social commentary on August 7, 2014 at 12:42 pm

Barack Obama is one of the most highly educated Presidents to occupy the White House.

When he took office, he intended to make healthcare available to all Americans–and not just the wealthiest 1%.

President Barack Obama

But he made a series of deadly mistakes:

  • In crafting the Affordable Care Act (better known as Obamacare);
  • In building public support for it;
  • In underestimating the venom and opposition of his Republican enemies;
  • In failing to effectively counter that Right-wing venom and opposition; and
  • In underestimating the opposition of the business community to complying with the law.

Three of those mistakes have already been outlined.  Here are the remaining three.

Obama Mistake No. 4:  He allowed himself to be cowed by his enemies.

In The Prince, Machiavelli laid out the qualities that a successful ruler must possess.  There were some to be cultivated, and others to be avoided at all costs.  For example:

Niccolo Machiavelli

He is rendered despicable by being thought changeable, frivolous, effeminate, timid and irresolute—which a prince must guard against as a rock of danger…. 

[He] must contrive that his actions show grandeur, spirit, gravity and fortitude.  As to the government of his subjects, let his sentence be irrevocable, and let him adhere to his decisions so that no one may think of deceiving or cozening him.

So how has Obama fared by this standard?

On July 2, 2013, the Treasury Department issued a press release about a major change in the applicability of the Affordable Care Act:

“Over the past several months, the Administration has been engaging in a dialogue with businesses – many of which already provide health coverage for their workers – about the new employer and insurer reporting requirements under the Affordable Care Act (ACA).

“We have heard concerns about the complexity of the requirements and the need for more time to implement them effectively….We have listened to your feedback.  And we are taking action.

“The Administration is announcing that it will provide an additional year before the ACA mandatory employer and insurer reporting requirements begin.”

[Boldface in the original document.]

In short: The administration is delaying until 2015 the law’s requirement that medium and large companies provide coverage for their workers or face fines.

And how did Obama’s self-declared enemies react to this announcement?

On July 30, House Republicans voted to proceed with a lawsuit against the President, claiming that he had failed to enforce the Affordable Care Act.

“In 2013, the president changed the health care law without a vote of Congress, effectively creating his own law by literally waiving the employer mandate and the penalties for failing to comply with it,” House Speaker John A. Boehner said in a statement.

“That’s not the way our system of government was designed to work. No president should have the power to make laws on his or her own.”

John Boehner

Thus, Boehner intends to sue the President to enforce the law that the House has voted 54 times to repeal, delay or change.

Obama Mistake Nol 5:  Believing that public and private comployers would universally comply with the law.

The Affordable Care Act requires employers to provide insurance for part-time employees who work more than 30 hours per week.

Yet many government employers claim they can’t afford it–and plan to limit worker hours to 29 per week instead.  Among those states affected:

  • “Our choice was to cut the hours or give them health care, and we could not afford the latter,” Dennis Hanwell, the Republican mayor of Medina, Ohio, said in an interview with the New York Times.
  • Lawrence County, in western Pennsylvania, reduced the limit for part-time employees to 28 hours a week, from 32.
  • In Virginia, part-time state employees are generally not allowed to work more than 29 hours a week on average over a 12-month period.

President Obama and those who helped craft the Act may be surprised at what has happened.  But they shouldn’t be.

Greed-addicted officials will always seek ways to avoid complying with the law–or achieve minimum compliance with it.

And what goes for public employers goes for private ones, too.

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

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

Increasing numbers of employers are moving fulltime workers into part-time positions–and thus avoiding

  • 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.

One of these is John Schnatter, CEO of Papa John’s Pizza, who has been quoted as saying:

  1. The prices of his pizzas will go up–by eleven to fourteen cents price increase per pizza, or fifteen to twenty cents per order; and
  2. 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.”

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

OBAMA’S SIX “OBAMACARE” MISTAKES: PART TWO (OF FOUR)

In Bureaucracy, Business, History, Law, Politics, Social commentary on August 6, 2014 at 11:44 am

In The Prince, his classic treatise on Realpolitick, Niccolo Machiavelli, the Florentine statesman, warned:

“There is nothing more difficult to carry out, nor more doubtful of success, nor more dangerous to handle, than to initiate a new order of things.”

This proved exactly the case with the proposed Affordable Care Act (ACA).  Its supporters–even when they comprised a majority of the Congress–have always shown far less fervor than its opponents.

This was true before the Act became effective on March 23, 2010.  And it has remained true since, with House Republicans voting 54 times to repeal, delay or revise the law.

So before President Barack Obama launched his signature effort to reform the American medical system, he should have taken this truism into account.

Obama Mistake No. 3: Failing to consider–and punish–the venom of his political enemies.

The ancient Greeks used to say: “A man’s character is his fate.”  It is Obama’s character–and our fate–that he is by nature a conciliator, not a confronter.

Richard Wolffe chronicled Obama’s winning of the White House in his book Renegade: The Making of a President.  He noted that Obama was always more comfortable when responding to Republican attacks on his character than he was in making attacks on his enemies.

Obama came into office determined to find common ground with Republicans.  But they quickly made it clear to him that they only wanted his political destruction.

At that point, he should have put aside his hopes for a “Kumbaya moment” and re-read what Niccolo Machiavelli famously said in The Prince on the matter of love versus fear:

From this arises the question whether it is better to be loved than feared, or feared more than loved.  The reply is, that one ought to be both feared and loved, but as it is difficult for the two to go together, it is much safer to be feared than loved. 

For it may be said of men in general that they are ungrateful, voluble, dissemblers, anxious to avoid danger and covetous of gain. 

As long as you benefit them, they are entirely yours: they offer you their blood, their goods, their life and their children, when the necessity is remote.  But when it approaches, they revolt…. 

And men have less scruple in offending one who makes himself loved than one who makes himself feared; for love is held by a chain of obligations which, men being selfish, is broken whenever it serves their purpose; but fear is maintained by a dread of punishment which never fails.

Moreover, Machiavelli warns that even a well-intentioned leader can unintentionally bring on catastrophe.  This usually happens when, hoping to avoid conflict, he allows a threat to go unchecked.  Thus:

A man who who wishes to make a profession of goodness in everything must inevitably come to grief among so many who are not good.

And therefore it is necessary, for a prince, who wishes to maintain himself, to learn how not to be good, and to use this knowledge and not use it, according to the necessity of the case.

For President Obama, such a moment came in October, 2013, when House Republicans shut down the government to force Obama to scrap Obamacare.

Obama, a former attorney, heatedly denounced House Republicans for “extortion” and “blackmail.”

Unless he was exaggerating, both of these are felony offenses that are punishable under the 2001 Patriot Act and the Racketeer Influenced Corrupt Organizations (RICO) Act of 1970.

All that he needed do was to order his Attorney General, Eric Holder, to ask the FBI to investigate whether either or both of these laws have been violated.

If violations had been discovered, indictments could have quickly followed– and then prosecutions.

The results of such action can be easily predicted.

  1. Facing lengthy prison terms, those indicted Republicans would first have to lawyer-up.  That in itself would have been no small thing, since good criminal lawyers cost big bucks.
  2. Obsessed with their own personal survival, they would have found little time for engaging in more of the same thuggish behavior that got them indicted.  In fact, doing so would have only made their conviction more likely.
  3. Those Republicans who hadn’t (yet) been indicted would have realized: “I could be next.”  This would have produced a chilling effect on their willingness to engage in further acts of subversion and extortion.
  4. The effect on Right-wing Republicans would have been the same as that of President Ronald Reagan’s firing of striking air traffic controllers:  “You cross me and threaten the security of this nation at your own peril.”

It would no doubt be a long time before Republicans dared to engage in such behavior–if they ever so dared again.

So: Why didn’t the President act to punish such criminal conduct?

OBAMA’S SIX “OBAMACARE” MISTAKES: PART ONE (OF FOUR)

In Bureaucracy, Business, History, Law, Politics, Social commentary on August 5, 2014 at 8:56 am

A majority of Americans–53%–disapprove of the Affordable Care Act (ACA), better known as Obamacare.

So says a July healthcare tracking poll of the Henry J. Kaiser Family Foundation, a non-profit organization focusing on national health issues

This is clearly a plus/minus situation for President Barack Obama.

On the positive side:  According to the Department of Health and Human Services, Obamacare enrollment has cut the number of uninsured people in the nation by 10 million.

On the negative side: Obamacare has always had weak support among the American public.  Among the reasons for this:

  • Constant Republican attacks labeling the law as “socialistic” (by which they mean “communistic”).
  • Public opposition to the individual mandate that almost everyone obtain coverage.
  • Many Americans think they can’t afford the insurance sold on the Obamacare exchanges–and don’t know that financial aid is available.

Among the poll’s findings:

  • Sixty percent of the public wants Congress to improve the Affordable Care Act, not repeal and replace it.
  • Thirty-eight percent were unaware that the Act offers consumers a choice among private health plans.
  • Less than half of those polled–47%–say they have discussed the law with friends or family.
  • Of that 47%, a majority–27%–say they’ve heard more bad than good about the law in these conversations.
  • Healthcare isn’t a top priority for Americans right now–except for medical care for veterans (71%).

Among those issues the public does rate as highly important:

  • Economy and jobs (70%)
  • Federal budget deficit (68%)
  • Education (66%)
  • Social Security (65%)
  • Illegal imigration (61%)

Click here: Kaiser Health Tracking Poll: July 2014 | The Henry J. Kaiser Family Foundation

Barack Obama is easily one of the most highly educated Presidents in United States history.

He is a graduate of Columbia University (B.A. in political science in 1983).

In 1988, he entered Harvard Law School, graduating magna cum laude–“with great honor”–in 1991.  He was selected as an editor of the Harvard Law Review at the end of his first year, and president of the journal in his second year.

President Barack Obama

He then taught constitutional law at the University of Chicago Law School for 12 years—as a Lecturer from 1992 to 1996, and as a Senior Lecturer from 1996 to 2004.

So where did he go so wrong?   Several ways:

Obama Mistake No. 1: Putting off what people wanted while concentrating on what they didn’t.

Obama started off well when he took office.  Americans had high expectations of him.

This was partly due to his being the first black elected President.  And it was partly due to the disastrous legacies of needless war and financial catastrophe left by his predecessor, George W. Bush.

Obama entered office intending to reform the American healthcare system, to make medical care available to all citizens, and not just the richest.

But that was not what the vast majority of Americans wanted him to concentrate his energies on. With the loss of 2.6 million jobs in 2008, Americans wanted Obama to find new ways to create jobs.

This was especially true for the 11.1 million unemployed, or those employed only part-time.

Jonathan Alter, who writes sympathetically about the President in The Center Holds: Obama and His Enemies, candidly states this.

But Obama chose to spend most of his first year as President pushing the Affordable Care Act (ACA)–which soon became known as Obamacare–through Congress.

The results were:

  • Those desperately seeking employment felt the President didn’t care about them.
  • The reform effort became a lightning rod for Right-wing groups like the Tea Party.
  • In 2010, a massive Rightist turnout cost the Democrats the House of Representatives, and threatened Democratic control of the Senate.

Obama Mistake No. 2: He underestimated the amount of opposition he would face to the ACA.

For all of Obama’s academic brilliance and supposed ruthlessness as a “Chicago politician,” he has displayed an incredible naivety in dealing with his political opposition.

Niccolo Machiavelli (4169-1527), the Florentine statesman and father of modern politics, could have warned him of the consequences of this–through the pages of his famous treatise on the realities of politics: The Prince.

Niccolo Machiavelli

And either Obama skipped those chapters or ignored their timeless advice for political leaders.

He should have started with Chapter Six: “Of New Dominions Which Have Been Acquired By One’s Own Arms and Ability”:

…There is nothing more difficult to carry out, nor more doubtful of success, nor more dangerous to handle, than to initiate a new order of things. 

For the reformer has enemies in all those who profit by the old order, and only lukewarm defenders in all those who would profit by the new order, this lukewarmness arising partly from fear of their adversaries, who have the laws in their favor, and partly from the incredulity of mankind, who do not truly believe in anything new until they have had actual experience of it.

GREED WILL FIND A WAY

In Bureaucracy, Business, History, Law, Politics on August 4, 2014 at 10:17 am

When William J. Casey–the future director of the Central Intelligence Agency– was a young attorney, he learned an important lesson.

During the Great Depression, 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.

He quickly learned that businessmen neither understood nor welcomed Franklin D. Roosevelt’s efforts to reform American capitalism.

Businessmen didn’t want legal commentary.  Instead, they wanted to know: “What’s the minimum we have to do to comply 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

He was presiding over the CIA when it repeatedly violated Congress’ ban on funding the “Contras,” the right-wing death squads of Nicaragua.  The resulting scandal almost destroyed the CIA

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, has 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 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:

  1. The prices of his pizzas will go up–by eleven to fourteen cents price increase per pizza, or fifteen to twenty cents per order; and
  2. 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.”

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

 John Schnatter

Consider:

  • 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.

In May, 2012, Schnatter hosted a fundraising event for Republican Presidential candidate Mitt Romney at his own Louisville, Kentucky mansion.

“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.”

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.

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.

And had he been the ruthless practitioner of “Chicago politics,” as his enemies claim, he would 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 provided two substantial benefits:

  1. All employees would have been able to obtain medical coverage; and
  2. Employers would have been encouraged to provide fulltime positions rather than part-time ones, since 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.

COSTCO VS. WALMART: TWO VERSIONS OF EMPLOYER

In Bureaucracy, Business, Social commentary on July 29, 2014 at 2:30 pm

Corporations aren’t staffed by faceless machines.  They’re staffed by men and women.

And those men and women take their marching orders from the man (usually) or woman at the top.

Thus, you can learn a great deal about a CEO–and his company–by the way his employees are treated.

Consider the differences between Walmart and Costco.

REVENUES:

Costco:  In 2011, its revenues stood at $89 billion.

Walmart: In 2011, its revenues stood at $447 billion.  But profits declined by 4.6%, to $15.7 billion.

HEALTH INSURANCE:

Costco: About 88% of Costco employees have company-supplied health insurance.  “I just think people need to make a living wage with health benefits,” Craig Jelinek, Costco’s CEO and president, told Bloomberg.  “It also puts more money back into the economy and creates a healthier country.  It’s really that simple.”

Walmart: In January, 2014, the nation’s largest private employer will 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.

Walmart has refused to say how many of its roughly 1.4 million U.S. workers are likely to lose medical insurance under its new policy.

Many of the Walmart workers who might be dropped from the company’s health care plans earn so little that they would qualify for the expanded Medicaid program.

Of course, if they live in any of the 26 Republican-controlled states refusing to expand Medicaid coverage, they’ll wind up with nothing.

“Walmart is effectively shifting the costs of paying for its employees onto the federal government with this new plan, which is one of the problems with the way the law is structured,” said Ken Jacobs, chairman of the Labor Research Center at the University of California, Berkeley.

In 2005, Susan Chambers, Walmart’s then-Vice President of Benefits, outlined how the company could remove sick workers from payrolls and avoid paying healthcare benefits.

Three major studies–in Georgia, Massachusetts and California–found Walmart employees to be the ones most reliant on government aid.  Annually, Walmart employees cost taxpayers more than $1 billion nationwide.

WAGES:

Costco:  Pays a living wage, with its employees starting as $11.50 per hour.  The average employee wage is $21 per hour, not including overtime.

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

CEO SALARY:

Costco: Its CEO and president, Craig Jelinek, made about $4.83 million in 2012.

Walmart: CEO Mike Duke made roughly $19.3 million in 2012.

According to CNN Money: Walmart’s CEO makes as much as 796 average employees.  Costco’s CEO makes 48 times more than the company’s median wage.

HOLIDAYS:

Costco:  Costco closed for Thanksgiving, giving its employees time to spend with their families.

Walmart: Forced its employees–on pain of being fired–to open its stores nationwide at 6 p.m. on Thanksgiving.

The results: Multiple instances of fistfights, taserings and knifings among shoppers whose greed had been roused to fever pitch by Walmart advertising.

PROMOTINS:

Costco: Hires from within. More than 70% percent of its warehouse managers began their careers working the floor or the register.

Walmart:  Facing mounting criticism for its low salaries, Walmart, on October 29, announced that it would promote more than 25,000 employees by the end of January, 2014.

STABILITY:

Costco: The annual turnover rate for employees who have worked at the company for more than one year is less than six percent.  For executives, the turnover rate is less than one percent.

Walmart: 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.

ADVERTISING:

Costco:  Doesn’t advertise or rely on a public relations staff.

Walmart: By contrast, Walmart spent $1.89 billion on self-glorifying ads in 2011.

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.

* * * * *

Some things can’t be quantified.

Goodwill, which is created by taking care of one’s employees–paying them a living wage and providing them with medical care–is one of them.

Similarly, ill will–created by paying the lowest possible wages and forcing employees to essentially become welfare clients–is another.

And some things that can be quantified don’t necessarily make for Nirvana.

In 2012, the Forbes 400 stated that the six wealthiest heirs to the Walmart empire were collectively worth $115 billion.

Yet this has not protected the Walton family from bad publicity–such as from striking workers and news media hungry for scandal.

Nor has it shielded the Waltons from ridicule–comedians like Jay Leno routinely joke about the hordes if illegal aliens Walmart “accidentally” hires.

Americans face a stark choice between two types of corporate employer–one that protects its employees, and another that essentially preys on them.

Which direction the nation chooses to go in will largely determine its course for long-term prosperity or short-term ruin.

GO TO COLLEGE, BECOME A BABYSITTER

In Business, History, Law, Social commentary on July 10, 2014 at 11:41 am

Once again, June has come and gone–and, with it, an annual rite of passage for tens of thousands of college students: Graduation.

That occasion when young innocents formally leave the academic nest to make their way into the harsh realities of the work

Among those harsh realities: The average college graduate faces a debt loan of more than $29,400.

Click here: Average student loan debt: $29,400 – Dec. 4, 2013

But wait!  There’s something even more demoralizing awaiting these “heirs of tomorrow.”

The discovery that, for all the “we hire only the brightest” rhetoric by employers, having a college degree actually means little to most CEOs.

A new report from the Center for College Affordability and Productivity concludes that nearly half of the nation’s recent college graduates hold jobs that don’t require a degree.

In short, many of the jobs they hold aren’t worth the price of that diploma.

From that report:

Increasing numbers of recent college graduates are ending up in relatively low-skilled jobs that, historically, have gone to those with lower levels of educational attainment. This study examines this phenomenon in some detail, concluding:

  • About 48 percent of employed U.S. college graduates are in jobs that the Bureau of Labor Statistics (BLS) suggests requires less than a four-year college education. Eleven percent of employed college graduates are in occupations requiring more than a high-school diploma but less than a bachelor’s, and 37 percent are in occupations requiring no more than a high-school diploma;
  • The proportion of overeducated workers in occupations appears to have grown substantially; in 1970, fewer than one percent of taxi drivers and two percent of firefighters had college degrees, while now more than 15 percent do in both jobs;
  • About five million college graduates are in jobs the BLS says require less than a high-school education;

Click here: Underemployment of College Graduates

But the future isn’t completely bleak–at least not for women willing to transform themselves into glorified babysitters for obscenely-rich families.

Consider a recent post on Facebook by AC Connections, which describes itself as “a nanny and household placement agency.”

Under the headline, “Growing Nanny Industry Is Enticing More College Graduates,” the ad/article begins:

“As more college graduates leave school and struggle to find work, they’re turning to the nanny industry.

“Many working moms love the idea of a highly-educated, experienced nanny providing individualized care for their children in their own homes. But it can come with a substantial price tag.

In this challenging economic climate, more college graduates are finding a little spoonful of sugar in the burgeoning nanny industry.

“These ‘modern day Mary Poppinses’ are educated, experienced, and in increasingly high demand.”

The International Nanny Association claims that the average salary is about $16 an hour. 

The ad asserts that “highly qualified and educated nannies in certain locations can make $100,000 or more each year. It’s not uncommon for nannies to start out with salaries comparable to entry-level finance careers.”

Click here: Growing Nanny Industry Is Enticing More College Graduates

Besides the money, says the ad, there are other reasons for becoming a nanny:

“Many love working with children, want a chance to use their college education, or enjoy the role of caretaker.”

“A chance to use their college education”?  As in cleaning up spills, changing diapers and feeding baby food to infants?

So if you’re a college graduate who can’t convince an employer within your chosen profession–such as pharmacy or engineering–to hire you, there’s always the Mary Poppins option.

Or some similar menial “career” that caters to the indulgences of the American plutocracy, for whom $16 an hour amounts to a Snicker’s candy bar for the fast-disappearing middle class.

It should be enough to make you hesitate before signing up for a loan to cover the average $57,000 cost of a public college education.

Or an even larger loan to cover the $132,000 cost of a private college education.

But if you’re still thinking that “employers really respect that degree,” consider this: Job recruiters spend exactly six seconds examining your resume.

According to The Ladders research, recruiters spend an average of “six seconds before they make the initial ‘fit or not fit’ decision” to interview you.

Not hire you–just meet you.  You’ll still have plenty of chances to get shot down during or after the interview.

Click here: What Recruiters Look At During The 6 Seconds They Spend On Your Resume

According to the study, when scanning a resume, recruiters looked at the following items:

  • Your name
  • Current title and company
  • Current position start and end dates
  • Previous title and company
  • Previous position start and end dates
  • Education

American employers should be legally compelled to hire as responsibly as college students are expected to pursue an education.

Until this happens, those young men and women thinking of committing a big chunk of their time and going into massive debt to pursue a college degree should think twice before doing so.

HERMAN CAIN: “IT’S ALL YOUR FAULT”

In Business, Politics, Social commentary on June 9, 2014 at 12:57 am

Herman Cain may run for President again.

Yes, on May 31, he told the annual Republican Leadership Conference in New Orleans that he might once again take up the Presidential quest in 2016.

The kicker: if God calls upon him to do so.

“I do not know what the future holds,” said the onetime CEO of Godfather’s Pizza, “but I know who holds the future. And I trust in God.”

The last time Cain ran for President–in 2011–his campaign ended in scandal.  Multiple women came forward to accuse him of making aggressive and unwanted sexual advances.

Cain’s longtime wife, Gloria, chose to stand by him.  But millions of female voters chose other candidates to vote for.

Cain dropped out of the race in December, 2011, before any actual votes were cast.

Herman Cain

Aside from his apparent inability to keep his hands–and penis–confined to his marriage, there’s another reason why voters should think twice about voting for him.

At the Republican Presidential candidates’ debate in Las Vegas, on October 18, 2011, a telling exchange occurred between CNN journalist and moderator Anderson Cooper and GOP candidate Herman Cain.

COOPER: “How do you explain the Occupy Wall Street movement happening across the country? And how does it relate with your message?

“Herman Cain, I’ve got to ask you, you said–two weeks ago, you said, ‘Don’t blame Wall Street, don’t blame the big banks. If you don’t have a job, and you’re not rich, blame yourself.’”

“That was two weeks ago. The movement has grown. Do you still say that?”

CAIN: “I still stand by my statement, and here’s why.  They might be frustrated with Wall Street and the bankers, but they’re directing their anger at the wrong place.

“Wall Street didn’t put in failed economic policies. Wall Street didn’t spend a trillion dollars that didn’t do any good. Wall Street isn’t going around the country trying to sell another $450 billion. They ought to be over in front of the White House taking out their frustration.”

* * * * *

So, there you have it.  If you’re one of the estimated 14 to 25 million unemployed or under-employed Americans, don’t look to Herman Cain for help or even sympathy.

It’s all your fault.

It’s your fault that, today, more than 2 million Americans have been unemployed for at least 99 weeks—the cutoff point for unemployment insurance in the hardest-hit states.

It’s your fault that the longer a person is out of work, the less likely s/he is to find an employer willing to hire.

It’s your fault that corporations across the country are now sitting atop $2 trillion in profits. 

It’s your fault that their CEOs are using those monies for enriching themselves, their bought-off politicians, their families—and occasionally their mistresses.

It’s your fault that CEOs are using those monies to buy up their corporate rivals, throw even more Americans into the streets, and pocket their wages.

It’s your fault that CEOs are using those profits to create or enlarge companies outside the United States—solely to pay substandard wages to their new employees.

It’s your fault that the one expense CEOs refuse to underwrite is hiring their fellow Americans.

It’s your fault that CEOs want to escape American employee-protection laws–such as those mandating worker’s compensation or forbidding sexual harassment.

It’s your fault that CEOs want to escape American consumer-protection laws–such as those banning the sale of lead-contaminated products (a hallmark of Chinese imports).

It’s your fault that CEOs want to escape American laws protecting the environment–such as those requiring safe storage of dangerous chemicals.

It’s your fault that mass firings of employees usually accompany corporate mergers or acquisitions.

It’s your fault that many employers victimize part-time employees, who are not legally protected against such threats as racial discrimination, sexual harassment and unsafe working conditions.

It’s your fault that many employers refuse to create better than menial, low-wage jobs.

It’s your fault that right-wing politicians encourage corporate employers to extort “economic incentives” from cities or states in return for moving to or remaining in those areas.

It’s your fault that such “incentives” usually absolve employers from complying with laws protecting the environment and/or workers’ rights.

It’s your fault that many employers refuse to provide medical and pension benefits—nearly always in the case of part-time employees, and, increasingly, for full-time, permanent ones as well.

It’s your fault that crime rates are now rising, due to rising unemployment.

It’s your fault that such employers want, in short, to enrich themselves at the direct expense of their country. 

It’s your fault if you’ve forgotten that, in decades past, such conduct used to be called treason–and punished accordingly.

And it’s your fault if you vote for GOP politicians who support such corrupt and ruinous policies.

TURNING PREDATORS INTO PATRIOTS: PART THREE (END)

In Business, History, Law, Politics, Social commentary on June 3, 2014 at 12:15 am

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

Among its remaining provisions:

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

(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.

* * * * *

Corporations can–and do–spend millions of dollars on TV ads, selling lies, about:

  • How patriotic they are.
  • How much they want to hire but can’t.
  • How well they treat their employees.

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

TURNING PREDATORS INTO PATRIOTS: PART TWO (OF THREE)

In Business, History, Law, Politics, Social commentary on June 2, 2014 at 12:02 am

It is long past time for Americans to 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.

The solution to these evils can be summed up 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.

And it would legally require employers to behave like patriots–not predators–toward the employees who make their profits a reality. 2-28-96

Among the provisions of a nationwide Employers Responsibility Act:

(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.

(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.