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Archive for the ‘Business’ Category

CORPORATIONS ARE GREEDY PEOPLE, TOO

In Bureaucracy, Business, Law, Politics, Social commentary on April 10, 2013 at 12:02 am

“How many men ever went to a barbecue and would let one man take off the table what’s intended for nine-tenths of the people to eat? The only way you’ll ever be able to feed the balance of the people is to make that man come back and bring back some of that grub that he ain’t got no business with!”
– Louisiana Senator Huey P. Long, 1934

Campaigning for the Presidency, Mitt Romney was speaking to a crowd of hundreds at the Iowa State Fair. He was being pressed about raising taxes to help cover entitlement spending. Suddenly, a heckler suggested raising corporate tax rates.

Romney responded: “Corporations are people, my friend. Of course they are. Everything corporations earn ultimately goes to the people. Where do you think it goes? Whose pockets? Whose pockets? People’s pockets. Human beings, my friend.”

The line earned him a sustained round of applause from the crowd.

If it’s true that corporations are people, then they are exceptionally greedy and selfish people.

A December, 2011 report by Public Campaign, highlighting corporate abuses of the tax laws, makes this all too clear.

Public Campaign is a national nonpartisan organization dedicated to reforming campaign finance laws and holding elected officials accountable.

Summarizing its conclusions, the report’s author writes:

“Amidst a growing federal deficit and widespread economic insecurity for most Americans, some of the largest corporations in the country have avoided paying their fair share in taxes while spending millions to lobby Congress and influence elections.”

Its key findings:

  • The thirty big corporations analyzed in this report paid more to lobby Congress than they paid in federal income taxes between 2008 and 2010, despite being profitable.
  • Despite making combined profits totaling $164 billion in that three-year period, the 30 companies combined received tax rebates totaling nearly $11 billion.
  • Altogether, these companies spent nearly half a billion dollars ($476 million) over three years to lobby Congress. That’s about $400,000 each day, including weekends.
  • In the three-year period beginning in 2009 through most of 2011, these large firms spent over $22 million altogether on federal campaigns.
  • These corporations have also spent lavishly on compensatng their top executives ($706 million altogether in 2010).

Among those corporations whose tax-dodging and influence-buying were analyzed:

  • General Electric
  • Verizon
  • PG&E
  • Wells Fargo
  • Duke Energy
  • Boeing
  • Consolidated Edison
  • DuPont
  • Honeywell International
  • Mattel
  • Corning
  • FedEx
  • Tenet Healthcare
  • Wisconsin Energy
  • Con-way

The report bluntly cites the growing disparity between the relatively few rich and the vast majority of poor and middle-class citizens:

“Over the past few months, a growing protest movement has shifted the debate about economic inequality in this country.

“The American people wonder why members of Congress suggest cuts to Medicare and Social Security but won’t require millionaires to pay their fair share in taxes.

“They want to know why they are struggling to find jobs and put food on the the table while the country’s largest corporations get tax breaks and sweetheart deals, then use that extra cash to pay bloated bonuses to CEOs or ship jobs overseas.

“….At a time when millions of Americans are still unemployed and millions more make tough choices to get by, these companies are enriching their top executives and spending millions of dollars on Washington lobbyists to stave off higher taxes or regulations.”

Assessing the results of corporate tax-dodging, the report states:

  • Using various tax dodging techniques, including stashing profits in overseas tax havens and tax loopholes, 29 out of 30 companies featured in this study succeeded in paying no federal income taxes from 2008 through 2010.
  • These 29 companies received tax rebates over those three years, ranging from $4 million for Corning to nearly $5 billion for General Electric and totally nearly $11 billion altogether.
  • The only corporation that paid taxes in that three-year period, FedEx, paid a three-year tax rate of 1%, far less than the statutory rate of 35%.

The report bluntly notes the hypocrisy of corporate executives who call themselves “job creators” while enriching themselves by laying off thousands of employees:

“Another area where these corporations have decided to spend lavishly is compensation for their top executives ($706 million altogether in 2010).

“Executives doing particularly well work for General Electric ($76 million in total compensation in 2010), Honeywell International ($54 million), and Wells Fargo ($50 million).

“Executives who have seen the greatest increase work for DuPont (188% increase), Wells Fargo (180% increase) and Verizon (167% increase).

Despite being profitable, some of these corporations have actually laid off workers.

Since 2008, seven of the corporations have reported laying off American workers. The worst offenders are Verizon, which laid off 21,308 workers, and Boeing, which fired 14,862 employees.

Insisting that “corporations are people” wins applause from the wealthiest 1% and their Right-wing supporters. But it does nothing to better the lives of the poor and middle-class.

If the nation is to avoid economic and moral bankruptcy, Americans must demand that powerful corporations be held accountable–and punished harshly when they behave irresponsibly.

TELL YOUR AIRLINE TO FLY OFF

In Bureaucracy, Business, Self-Help on April 8, 2013 at 1:39 pm

Imagine the following situation:

  • 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 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.

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 another 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: “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. So if you’re having troubles with an airline:

  • Start by calling the highest-ranking airline official you can reach.
  • If s/he 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.
  • 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.

A SIGN OF UNEMPLOYMENT: PART SIX (END)

In Business, Law, Politics, Social commentary on March 21, 2013 at 12:01 am

Among the provisions of an Employers Responsibility Act:

(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.

* * * * *

Right-wing capitalists and their paid shills in Congress would attack an Employers Responsibility Act as radically Communist.

But Americans need to cast aside their national obsession with Red-baiting and face up to some ugly truths about themselves–and their employers:

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.

The solution lies in remembering that the powerful never voluntarily surrender their privileges.

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.

And they will most certainly never win such freedom by supporting right-wing political candidates whose first and only allegiance is to the corporate interests who bankroll their campaigns.

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.

A SIGN OF UNEMPLOYMENT: PART FIVE (OF SIX)

In Business, Law, Politics, Social commentary on March 20, 2013 at 12:01 am

A nationwide Employers Responsibility Act would ensure fulltime, productive employment for millions of capable, job-seeking Americans.  And it would achieve this goal without raising taxes or creating controversial government “make work” programs.

Two of its provisions have already been outlined.

Among its remaining provisions:

(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.

(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.

A SIGN OF UNEMPLOYMENT: PART FOUR (OF SIX)

In Business, Law, Politics, Social commentary on March 19, 2013 at 12:01 am

Where there are victims, there are always predators ready to profit from their desperation.

Consider the following email sent out in July, 2012, by Steve Poizner, former Republican State Insurance Commissioner of California (2007-2011).

Dear friends,

I wanted to share with you some news before my new venture – Empowered Careers – launches around the country….I’ve started this company to help address one of the key issues we face today — jobs. Our venture aims to close the skills gap through an innovative career development program — all delivered via the iPad.

The program is called “Empowered UCLA Extension” and it combines personalized career counseling with a UCLA Extension professional education from a live instructor who is an expert in his or her field.

It’s all designed specifically for baby boomers seeking to make a career change, get ahead professionally, or get back into the workforce.

* * * * *

Now, consider this passage:

“Using our Empowered app, the iPad will transform any adult’s living room into a modern day classroom or transform a park bench into a study group while the kids are at soccer practice.”

But transforming “any adult’s living room into a modern day classroom” will not compel those employers who refuse to hire to begin doing so.

Nor will it change the behavior of employers who:

  • Will hire–but only on a part-time, no-benefits, minimum-wage basis;
  • Continue to throw hard-working American employees into the street; and
  • Move their companies to China, Mexico or Singapore.

And note that this program is aimed at those who can afford an iPad–and to shell out $9,800.  This, says the website, “includes a one-time special reduction of $3,000 from our expected 2013 total program price of $12,800.”

So if you’re poor because you’re jobless, this program has nothing to offer you.

But America can end this national disaster–and disgrace.

A policy based only on concessions–such as endless tax breaks for hugely profitable corporations–is a policy of appeasement.

And appeasement only whets the appetite of those appeased for even greater concessions.

It is past time to hold wealthy and powerful corporations accountable for their socially and financially irresponsible acts.

This solution 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.

An ERAt 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.

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.

A SIGN OF UNEMPLOYMENT: PART THREE (OF SIX)

In Business, Law, Politics, Social commentary on March 18, 2013 at 12:02 am

Employers often claim that they can’t find the talent they need.  Today’s applicants, they claim, lack skills, education and even a willingness to work.

The truth is altogether different.

So says Peter Cappelli, the George W. Taylor professor of management at the Wharton School at the University of Pennsylvania.   He is also the author of Why Good People Can’t Get Jobs: The Skills Gap and What Companies Can Do About It.

Amazon.com: Why Good People Can’t Get Jobs: The Skills Gap and What Companies Can Do About It

Why Good People Can't Get Jobs: The Skills Gap and What Companies Can Do About It

According to Cappelli, when companies whine they can’t find talented employees, the fault usually lies with employers, not job-seekers:

  • Hiring managers create wildly inflated descriptions of the talents and skills needed for openings: “They ask for the moon.”
  • Computer technology eliminates many qualified people for consideration when their resumés don’t match the inflated qualifications demanded by employers.
  • Employers aren’t willing to pay for the education and skills they demand: “What they really want is someone young, cheap and experienced.”
  • Online applicants are often told to name a salary expectation.  Anyone who names a salary higher than what the company is willing to pay is automatically rejected.  There’s no chance to negotiate the matter.
  • About 10% of employers admit that the problem is that their desired candidates refuse to accept the positions at the wage level being offered.
  • Employers are not looking to hire entry-level applicants right out of school. They want experienced candidates who can contribute immediately with no training or start-up time.
  • Employers demand that a single employee perform the work of several highly skilled employees. One company wanted an employee to be an expert in (1) human resources, (2) marketing, (3) publishing, (4) project management, (5) accounting and (6) finance.
  • When employers can’t find the “perfect candidate” they leave positions open for months. But if they were willing to offer some training, they might easily hire someone who could quickly take on the job.
  • Companies have stopped hiring new college graduates and grooming them for management ranks. They no longer have their own training and development departments.  Without systems for developing people, companies must recruit outsiders.
  • Employers’ unrealistic expectations are fueled partly by their own arrogance.  With more than three jobless people for every opening, employers believe they should be able to find these “perfect people.”

According to Cappelli, the hiring system desperately needs serious reform:

  • Review job descriptions.  If they’re inflated, bring them down-to earth.
  • Don’t expect to get something for nothing–or next to it.  Offer competitive salaries.
  • Scrutinize the hiring process.  Make sure that the automated systems aren’t screening out qualified candidates simply because they don’t have all the brass buttons in a row.
  • Beef up the Human Resources section.

A 1996 cartoon by Ted Rall, the no-holds-barred cartoonist–entitled “Something for Nothing”–brilliantly sums up how most corporate “job creators” actually regard and treat their employees and applicants:2-28-96

Cappelli worries that the complaints about a labor shortage caused by an unwilling, unskilled workforce will be repeated enough that they will be accepted as truth:

“It’s a loud story … that could become pernicious if it persists.  It does have a blame-the-victim feeling to it.  It makes people feel better. You don’t have to feel so bad about people suffering if you think they are choosing it somehow.”

And where there are victims, there are always people ready to profit from their desperation.

Consider the following email recently sent out by Steve Poizner, former Republican State Insurance Commissioner of California (2007-2011).

A successful Silicon Valley high tech entrepreneur, Poizner founded SnapTrack, Inc. and Strategic Mapping, Inc.  In June, 2011, he co-founded the Encore Career Institute with the Sherry Lansing Foundation and Creative Artists Agency.

Thus, the email sent out on July 2, 2012:

Dear friends,

I wanted to share with you some news before my new venture – Empowered Careers – launches around the country….I’ve started this company to help address one of the key issues we face today — jobs.

Our venture aims to close the skills gap through an innovative career development program — all delivered via the iPad.

The program is called “Empowered UCLA Extension” and it combines personalized career counseling with a UCLA Extension professional education from a live instructor who is an expert in his or her field.

It’s all designed specifically for baby boomers seeking to make a career change, get ahead professionally, or get back into the workforce.

* * * * *

Note the line: “Our venture aims to close the skills gap,” which it assumes to be a reality.  And the ad says nothing about the ”greed gap” which exists between what employers demand from workers–and what they are willing to pay in return.

The Encore Careers Institute will offer online non-degree certificates for out of work adults and baby boomers looking to switch careers.

When did a non-degree certificate ever convince an employer to hire?  Even a hiring-inclined employer?

A SIGN OF UNEMPLOYMENT: PART TWO (OF SIX)

In Business, Law, Politics, Social commentary on March 15, 2013 at 12:00 am

In its June 8, 2011 cover-story on “What U.S. Economic Recovery?  Five Destructive Myths,” Time magazine warned that profit-seeking corporations can’t be relied on to ”make it all better.”

Click here: What U.S. Economic Recovery? Five Destructive Myths – TIME

Wrote Rana Foroohar, Time‘s assistant managing editor in charge of economics and business:

“There is a fundamental disconnect between the fortunes of American companies, which are doing quite well, and American workers, most of whom are earning a lower hourly wage now than they did during the recession.

“The thing is, companies make plenty of money; they just don’t spend it on workers here.

“There may be $2 trillion sitting on the balance sheets of American corporations globally, but firms show no signs of wanting to spend it in order to hire workers at home.”

In short:  Giving even greater tax breaks to mega-corporations–the standard Republican mantra–has not persuaded them to stop “outsourcing” jobs. Nor has it convinced them to start hiring Americans.

While embarrassingly overpaid CEOs squander corporate wealth on themselves, millions of Americans can’t afford medical care or must depend on charity to feed their families.

Yet there is also a disconnect between the truth of this situation and the willingness of Americans to face up to that truth.

The reason:

“The Republicans have pulled off a major (some would say cynical) miracle,” writes Foroohar.

They have convinced “the majority of Americans that the way to jump-start the economy is to slash taxes on the wealthy and on cash-hoarding corporations while cutting benefits for millions of Americans.

“It’s fun-house math that can’t work.  We’ll need both tax increases and sensible entitlement cuts to get back on track.”

Now, fast-forward one year later–to a June 11, 2012 CNNMoney investigation, which raised the question: “Why is the jobs recovery still so sluggish?”

And the answer?  “These 8 companies recently announced layoffs in the thousands.”

8 job killing companies – Hewlett-Packard slashes 27,000 jobs (1) – CNNMoney

The companies:

  • Hewlett-Packard – cutting 27,000 jobs.
  • American Airlines – slashing 13,000 jobs–with most of the cuts affecting maintenance and ground workers.  That’s something to think about the next time you’re thinking of flying American.
  • Sony – eliminating 10,000 jobs.
  • Proctor & Gamble – axing 5,700 jobs.
  • PepsiCo – slashing 8,700 jobs.
  • Yahoo – wiping out 2,000 jobs.
  • First Solar – cutting 2,000 jobs.
  • Kraft Foods – slashing 1,600 workers.

Of course, some companies have legitimate reasons for cutting back on employees:

  • Sony has failed to revive its losing television business, which hasn’t turned a profit in eight years.
  • And PepsiCo has suffered a fall-off in customers as Americans switch from soda to healthier drinks.

But there are also sinister reasons why millions of willing-to-work Americans remain unemployed.  Or remain trapped in part-time, no-benefits jobs far below their levels of education and experience.

Chief among these is the refusal of Congressional Republicans to create job opportunities for their fellow Americans.

U.S. Senator Bernie Sanders (I, Vermont) made just that argument to guest host Ezra Klein on the June 12 edition of “The Rachel Maddow Show.”

U.S. Senator Bernie Sanders

SANDERS: Everybody knows you have to invest in infrastructure. We can create millions of decent paying jobs in the long term and I speak as a former mayor, you obviously save money because you don’t have to do constant repairs as we’ve just seen.

The simple reason is I’m afraid that you have a Republican mindset that says, “Hmm, let`s see, we can repair the infrastructure, save money long time, create millions of jobs, bad idea. Barack Obama will look good.  And we’ve got to do everything that we can to make Barack Obama look bad.”

So, despite the fact that we had a modest bipartisan transportation bill, roads, bridges, public transit pass the Senate with over 70 votes, Inhofe, the most conservative guy in the Senate, working with Barbara Boxer, one of the most progressives, we can’t get that bill moving in the House of Representatives.

So if you’re asking me why, I would say 100 percent political. If it’s good for America, if it creates jobs, if it’s good for Barack Obama, we can’t do it.

Here’s another reason for America’s unemployment miseries:

More than 12 million Americans are now unemployed because many employers have designed “hiring” systems that simply don’t work.

So says Peter Cappelli, the George W. Taylor professor of management at the Wharton School at the University of Pennsylvania.  He is also the author of  Why Good People Can’t Get Jobs: The Skills Gap and What Companies Can Do About It.

Amazon.com: Why Good People Can’t Get Jobs: The Skills Gap and What Companies Can Do About It

Why Good People Can't Get Jobs: The Skills Gap and What Companies Can Do About It

Employers often whine that they can’t find the talent they need.  Today’s applicants, they claim, lack skills, education and even a willingness to work.

The truth is altogether different.

A SIGN OF UNEMPLOYMENT: PART ONE (OF SIX)

In Business, Law, Politics, Social commentary on March 14, 2013 at 12:00 am

Linda Smith, a resident of Menifee, California, wants to help her daughter land a job.

Lisa Smith, 36, has been out of the job market for almost 20 years.

Not that she hasn’t spent those years working.  She has–as a caregiver for her mother.

In 1996, Linda, now 61, was hit by a drunk driver and left with mild dementia.  She couldn’t remember names or safely travel by herself.  Holding down a steady job was impossible.

So Lisa quit her job as a full-time commercial model to care for her mother.  They lived off of Lisa’s part-time jobs, a government caregiver stipend, and Linda’s disability money.

But in June, 2012, a doctor found that Linda was well enough to live alone.

That was the good news.  The bad news was: There would be no more caregiver funds.

As Lisa’s applications for full-time work went unanswered, Linda wanted to help. So, in late February, she began standing on the side of the road, holding a sign.

Linda Smith holds her sign in Menifee, Calif.

Linda Smith

And offering $500 cash to any employer willing to hire her daughter at at least $15 an hour or more for an office job, such as an executive assistant.

This will be no easy task.  California has an unemployment rate of 9.8%–one of the worst in the nation.  And it’s a truism that if you’ve been out of the workforce more than six months, employers don’t want to know you.

You might have won the Medal of Honor or be the next Einstein or Steve Jobs.  But it doesn’t matter.

The basic employer mentality goes: “If someone else wasn’t responsible enough to hire you, why should I be?”

An article in the March, 2011 issue of Reader’s Digest gives the lie to the excuses so many employers use for refusing to hire.

Entitled “22 Secrets HR Won’t Tell You About Getting a Job,” it lays bare many of the reasons why America needs to legally force employers to demonstrate as much responsibility for hiring as job-seekers are expected to show toward searching for work.

Click here: 22 Secrets HR Won’t Tell You About Getting a Job | HT Staffing

Among the truths it reveals:

TRUTH NO: 1: Once you’re unemployed more than six months, you’re considered unemployable.

TRUTH NO. 2: As you’ve always suspected: It’s not what but who you know that counts.

TRUTH NO. 3: If you can, avoid HR entirely and seek out someone in the company you know. If you don’t know anyone, go straight to the hiring manager.

TRUTH NO. 4: Don’t assume that someone will read your cover letter. Many of them go straight into the garbage can.

TRUTH NO. 5: You will be judged on the basis of your email address–especially if it’s something like “Igetwasted@aol.com.”

TRUTH NO. 6: Don’t assume you’re protected against age discrimination just because it’s against the law. If you’re in your 50s or 60s, leave your year of graduation off your resume.

TRUTH NO: 7: Don’t assume you’re protected from unemployment just because it’s illegal to discriminate against applicants who have children. Many managers don’t want to hire people with children, and will go to illegal lengths to find out their parental status–like checking an applicant’s car for child safety seats.

TRUTH NO. 8: It’s harder to get a job if you’re fat. Hiring managers make quick judgments based on stereotypes.

TRUTH NO. 9: Many managers will assume you’re a loser if you give them a weak handshake.

TRUTH NO. 10: Encourage the interviewer to talk–especially about himself. Ego-driven interviewers love hearing the sound of their own voices and will assume you’re better-qualified than someone who doesn’t want to listen to them prattle.

The United States has reached the depths of shame when a willing-to-work American must bribe fat-pockets employers to show a sense of hiring responsibility.

Millions of Americans continue to blame President Barack Obama for the nation’s high unemployment rate. But no President can hope to resolve this problem until employers are legally required to act like patriots instead of predators.

Their responsibilities should encompass more than simply fattening their own pocketbooks and/or egos at the expense of their fellow Americans.

Such behavior used to be called treason.

It’s past time to recognize that a country can be betrayed for other than political reasons.  It can be sold out for economic ones, too:

  • Employers who enrich themselves by weakening their country—by throwing millions of qualified workers into the street and moving their plants to other countries—are traitors.
  • Employers who set up offshore accounts to claim their American companies are foreign-owned—and thus exempt from taxes—are traitors.
  • Employers who systematically violate Federal immigration laws—to hire illegal aliens instead of willing-to-work Americans—are traitors.

And with a new definition of treason should go new penalties–heavy fines and/or prison terms–for those who sell out their country to enrich themselves.

It is time, in short, to put a long-overdue end to the Theory of the Divine Right of Employers.

GREED? THY NAME IS AYN

In Business, History, Politics, Social commentary on March 13, 2013 at 12:00 am

“Thirty years after her death, Ayn Rand’s ideas have never been more important.

“Unfettered capitalism, unregulated business, bare-bones government providing no social services, glorification of selfishness, disdain for Judeo-Christian morality—these are the tenets of Rand’s harsh philosophy.”

So reads the jacket blurb for Ayn Rand Nation: The Struggle for America’s Soul, by Gary Weiss.

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“The timing of this book couldn’t be better for Americans who are trying to understand where in the hell the far-out right’s anti-worker, anti-egalitarian extremism is coming from,” asserts Jim Hightower, New York Times bestselling author of Thieves in High Places.

Ayn Rand Nation introduces us to the godmother of such Tea Party craziness as destroying Social Security and eliminating Wall Street regulation. Weiss writes with perception and wit.”

For those who believe that Rand’s philosophy is the remedy for America’s economic and social ills, a 60 Minutes news story sounds a warning.

New England Compounding Center (NECC) pharmacy, based in Framington, Massachusetts, is under criminal investigation.  The reason: Shipping, in the fall of 2012, 17,000 vials of a steroid to be injected into the joints or spines of patients suffering chronic pain.

But instead of relieving pain, this steroid–contaminated with fungal meningitis–brought only agony and death.

The vials went out to thousands of pharmacies scattered across 23 states.

Forty-eight people have died, and 720 are still fighting horrific infections caused by the drug.

Just as Ayn Rand would have wanted, the pharmacy managed to avoid supervision by the Food and Drug Administration (FDA).

NECC was one of thousands of pharmacies that Congress exempted from FDA oversight. The reason: By law, they are allowed to make custom drugs for just one patient at a time.

But within a few years, NECC went national–and vastly expanded the quantities of drugs produced.

“The underlying factor is that the company got greedy and overextended and we got sloppy, and something happened,” John Connolly, a lab technician for the company, told 60 Minutes, the CBS news magazine.

And, also as Rand would have wanted, the four family members who founded the pharmacy were enriched by it–receiving over $16 million in wages and profits, from December 2011 through November 2012.

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Bankruptcy records show the family members racked up $90,000 on corporate American Express credit cards, including charges made after the company shut down in early October.

A month before the first steroid death, Connolly says he warned his supervisor: “Something’s gonna happen, something’s gonna get missed and we’re gonna get shut down.”

His supervisor just shrugged.

NECC was shut down by the authorities.  Barry Cadden, the president and lead pharmacist of the company, was subpoenaed by Congress to testify.  In true gangster fashion, he pleaded the Fifth.

He claims he doesn’t know how the contamination started.

Which brings us back to Ayn Rand–and, more specifically, Ayn Rand Nation.

Among the themes explored in Weiss’ book:

  • Atlas Shrugged–Rand’s 1957 novel–depicts a United States where many of society’s most productive citizens refuse to be exploited by increasing taxation and government regulations and go on strike. The refusal evokes the imagery of what would happen if the mythological Atlas refused to continue to hold up the world.  The novel continues to influence those who aren’t hard-core Rand followers, who are known as Objectivists.
  • Ayn Rand’s novels dramatically affirm such bedrock American values as independence, creativity, self-reliance, and above all, a permanent distrust of government.
  • In Rand’s 1936 novel, We the Living–set in Soviet Russia–her heroine, Kira Argounova, tells a Communist: “I loathe your ideals; I admire your methods.” Objectivists believe in defending capitalism with the same ruthless methods of Communists.
  • In Rand’s ideal world, government would control only police, armies and law courts.  To her, a   government which performs more than these three functions is not simply impractical or expensive: it is evil.

Many of those who embrace Rand substitute rage for logic: Tea Partiers are furious about the 2008 Wall Street crash, yet they blame the government for it.

(Ironically, in a way, they are right: The government can be blamed–but not for too much regulation of greed-fueled capitalists but too little.)

Weiss asserts that Tea Party members resent the social and economic realities facing the nation, but lack a coherent intellectual framework to help them focus and justify their rage.  But Objectivists have–and offer–such a framework.

Thus, Tea Partiers form the ideological part of the right wing, and the clarity–and fanaticism–of their views gives them a power far out of proportion to their numbers.

Weiss believes that Rand is presenting a moral argument for laissez-faire capitalism, which means eliminating  Social Security, Medicare, public road system, fire departments, parks, building codes–and, above all, any type of financial regulation.

Weiss maintains that Rand’s moral argument must be directly confronted–and defeated–with moral arguments calling for charity and rationality.

Given the fanaticism of Tea Partiers and the right-wing Republicans they support, success in countering Rand’s “I’ve-got-mine-and-the-hell-with-everybody-else” morality is by no means assured.

TAX FAVORS FOR THE RICH

In Business, Law, Politics, Social commentary on March 12, 2013 at 12:02 am

On December 10, 2012, Oregon Governor John Kitzhaber summoned lawmakers for a special (interest) session of the legislature.

The reason: To give Nike, Inc., a guarantee that it would be taxed only on in-state sales.

Nike had promised to spend at least $150 million and create at least 500 jobs in Oregon–if the legislature approved such a tax-guarantee bill.

Multinational corporations such as Nike and Intel relish the state’s current tax policy–which took effect in 2006. The reason: It saves them millions of dollars on state income taxes.

Oregon caters to such well-heeled companies because they provide thousands of jobs and revenues from personal income taxes for state programs.

The catch: Its tax policy–called the single-sales factor–taxes companies on their sales in Oregon while ignoring their worldwide operations.

Nike reported revenues of $6.5 billion for 2012.

Asked why he needed the bill so quickly, Kitzhaber said Nike officials were expressing “a sense of urgency” and he didn’t want to risk losing what could be a significant job-creation opportunity.

“They have to make their move as soon as possible,” he said.

In short, Nike is threatening to leave Oregon if it doesn’t get a tax-break guarantee.

Kitzhaber’s haste to appease a giant multinational sportswear company is yet another reason why America needs an Employers Responsibility Act (ERA).

Such legislation would ensure fulltime, productive employment for millions of capable, job-seeking Americans.  And it would achieve this goal without raising taxes or creating controversial government “make work” programs

If passed by Congress and vigorously enforced by the U.S. Departments of Justice and Labor, an ERA would legally require employers to demonstrate as much initiative for hiring as job-seekers are now expected to show in searching for work.

Among its provisions would be one to cover the above-mentioned type of corporate extortion:

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,”
  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.

To return to the Oregon story, “creating at least 500 jobs in Oregon” may sound like a lot, that doesn’t necessarily mean they will be high-paying, professional ones by which an employee can support himself and a family.

“Jobs” could also mean part-time jobs, which come without medical insurance benefits.

In the “Careers” section of Nike’s website, a prospective employee will find the following:

NIKE, Inc.’s competitive benefits program provides employees with the opportunity to stay fit, ensure the wellness of their families, and create a positive working environment. That is why every geography provides for variable health coverage, fitness center memberships, time off, retirement savings, and more.

Your particular benefits package will depend on your position, location, and years with the company. Here’s a look at what you might be eligible for.

  • Health insurance
  • Life & Accident insurance
  • Disability insurance
  • Retirement Savings Plan with a company contribution
  • Employee Stock Purchase Plan (15% discount)
  • Paid vacations and holidays
  • Paid sabbaticals
  • Product discounts
  • Onsite fitness center/fitness discounts
  • Transportation allowance/discount
  • Tuition assistance

Note the sentence: “Your particular benefits package will depend on your position, location, and years with the company.”

That sentence contains a lot of “if’s”–and the less time an employee has been with the company, the less likely s/he is to be found eligible for a fuller package of benefits.

It’s a safe bet that those who have just been hired–such as under Nike’s doing so in the immediate future–will not be eligible for full benefits.

Thus, these newly-hired employees may well find themselves struggling to pay for health and/or disability insurance.

And here’s another matter for consideration: Kitzhaber claimed that the average pay at Nike is a little above $100,000 a year–roughly twice the average for the rest of the state.

But how does Nike–or Kitzhaber–arrive at that figure?

On its face, it seems as though Nike is paying its avewrage employee $100,000 per year.  But that’s highly unlikely if the employee is acting as simply a glorified shoe salesman.

So Nike might have arrived at that figure by simply adding the total salaries of all its Oregon employees and then dividing that figure by the number of those employees.

At moments like this, it’s well to remember the warning of former British Prime Minister Benjamin Disraeli: “There are three kinds of lies–lies, damned lies and statistics.”