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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.”

EXIT THE GECKO, ENTER THE PIG AND BULLY

In Bureaucracy, Business, Social commentary on March 4, 2013 at 11:53 pm

There’s been a changing-of-the-guard at GEICO insurance.

Exit the understated, British-accented gecko.

Enter the pig–and the grunting black bully.

For years GEICO has taken a light-hearted, humorous approach to its advertising.

The company that designed these ads accomplished the seemingly impossible:  It recruited a friendly reptile as its spokesman and, in doing so, turned a dull subject like insurance into something fun.

Remember the ad about the towering GEICO executive who tells the gecko: “GEICO is about trust.  So let’s demonstrate how that trust works.  I’ll fall backward–and you catch me.”

And as the man starts to fall back, the gecko mutters, “Oh, dear.”

But apparently GEICO wanted something more than humor in its advertising–something that would shake up those who watched it.

And the ads the company is now running will definitely do that.  But GEICO may wind up regretting it.

Enter the new GEICO spokesman: a pig–porcine, hairless, goofy-voiced.  And he’s sitting in the driver’s seat of a stalled car next to a beautiful brunette.

And it’s clear the woman is clearly feeling aroused and wants to do something romantic.  Or, maybe the word for it is perverted.

But the pig is–fortunately–nervous, and just wants to talk about how wonderful GEICO is.

Now, think about this for a moment.

If you’re Jewish, Hindu or Muslim, eating pork is strictly forbidden.  The meat is considered “unclean” because pigs don’t sweat–thus trapping all the impurities within.

So if you’re an adman who wants to design commercials that will appeal to the widest number of viewers, you’ve already flunked out.

And if eating pork is verboten to millions of Jews, Muslims and Hindus, having a romantic tryst with a pig is off-limits to anyone outside the confines of a porno theater.

After all, how twisted do you have to be to date out of your own species?

So what is the message GEICO is trying to send here?  That if you buy GEICO insurance, you can make it with a beautiful chick even if you’re a pig?

Then there’s the bullying black basketball player as GEICO sales rep–played by real-life former basketball star Dikembe Mutombo.

Mutombo is a Congolese American retired professional basketball player who once played for the Houston Rockets.  He was an eight-time All-Star and a record-tying four-time NBA Defensive Player of the Year.

Outside of basketball, he has become known for his humanitarian work.

But you’d never know it by the GEICO ad.

First, clad in basketball attire, he darts into an office and throws something at a startled executive and his secretary.

Then, grunting, he appears in a laundromat and prevents a woman from tossing clothing from a dryer to her cart by knocking it out of the air as she throws it in.  Then he wiggles his finger at her.  Thus the woman ends up with a clean garment made dirty.

Finally, he charges into a supermarket and knocks a cereal box out of the hands of a little boy as he’s about to toss it into a shopping cart.  The box explodes, spilling cereal onto the floor and the little boy as the grunting black man races off.

GEICO Dikembe Mutombo Commercial – Happier Than Dikembe Mutombo Blocking a Shot

What is the message GEICO is trying to send here?  That violence and intimidation are fun?  That you’d better buy GEICO insurance–or else?

Even more ominous: This ad premiered during the week that another bullying black man was making headlines across the nation.

From February 3 to 12, Christopher Dorner, a former member of the Los Angeles Police Department, waged war on the LAPD.

Dorner blamed the agency for his firing in 2008.  First he published a “manifesto” on his Facebook page and then set about a killing spree that killed four people.  Two police officers died, and three others were wounded.

The rampage ended on February 12, in an isolated cabin near Big Bear Lake, California.  Surrounded by lawmen from several police agencies, the cabin set ablaze by pyrotechnic tear gas, Dorner shot himself in the head rather than surrender.

It’s likely that these ads will join a parade of others that produced results other than those intended:

  • Pepsi’s slogan, “Come alive with Pepsi” bombed in China, where it was translated into: “Pepsi brings your ancestors back from the grave.”
  • The Dairy Association’s slogan, “Got milk?” became–when translated into Spanish–“Are you lactating?”
  • Purdue Chicken thought it had a winner with: “It takes a tough man to make a tender chicken.”  But the Spanish mistranslation came out: “It takes a sexually stimulated man to make a chicken affectionate.”

Clearly the executives at GEOCO need to ask themselves two questions:

  1. What are we trying to achieve with these commercials?
  2. What messages are these ads sending to our targeted audiences?

More often than not, there is a disconnect between the two.

As in the case of the latest GEICO commercials.

MACHIAVELLI WAS RIGHT

In Business, History, Law, Social commentary on March 1, 2013 at 12:37 am

In 1513, Niccolo Machiavelli, the Florentine statesman who has been called the father of modern political science, published his best-known work: The Prince.

Niccolo Machiavelli

Among the issues he confronted was how to preserve liberty within a republic.  And key to this was mediating the eternal struggle between the wealthy and the poor and middle class.

Machiavelli deeply distrusted the nobility because they stood above the law.  He saw them as a major source of corruption because they could buy influence through patronage, favors or nepotism.

Successful political leaders must attain the support of the nobility or general populace.  But since these groups have conflicting interests, the safest course is to choose the latter.

…He who becomes prince by help of the [wealthy] has greater difficulty in maintaining his power than he who is raised by the populace.  He is surrounded by those who think themselves his equals, and is thus unable to direct or command as he pleases. 

But one who is raised to leadership by popular favor finds himself alone, and has no one, or very few, who are not ready to obey him.   [And] it is impossible to satisfy the [wealthy] by fair dealing and without inflicting injury upon others, whereas it is very easy to satisfy the mass of the people in this way. 

For the aim of the people is more honest than that of the [wealthy], the latter desiring to oppress, and the former merely to avoid oppression.  [And] the prince can never insure himself against a hostile population on account of their numbers, but he can against the hostility of the great, as they are but few.

The worst that a prince has to expect from a hostile people is to be abandoned, but from hostile nobles he has to fear not only desertion but their active opposition.  And as they are more far seeing and more cunning, they are always in time to save themselves and take sides with the one who they expect will conquer. 

The prince is, moreover, obliged to live always with the same people, but he can easily do without the same nobility, being able to make and unmake them at any time, and improve their position or deprive them of it as he pleases.

Unfortunately, political leaders throughout the world–including the United States–have ignored this sage advice.

The results of this wholesale favoring of the wealth and powerful have been brilliantly documented in a recent investigation of tax evasion by the world’s rich.

In 2012, Tax Justice Network, which campaigns to abolish tax havens, commissioned a study of their effect on the world’s economy.

The study was entitled, “The Price of Offshore Revisited: New Estimates for ‘Missing’ Global Private Wealth, Income, Inequality and Lost Taxes.”

http://www.taxjustice.net/cms/upload/pdf/Price_of_Offshore_Revisited_120722.pdf

The research was carried out by James Henry, former chief economist at consultants McKinsey & Co.  Among its findings:

  • By 2010, at least $21 to $32 trillion of the world’s private financial wealth had been invested virtually tax-­free through more than 80 offshore secrecy jurisdictions.
  • Since the 1970s, with eager (and often aggressive and illegal) assistance from the international private banking industry, private elites in 139 countries had accumulated $7.3 to $9.3 trillion of unrecorded offshore wealth by 2010.
  • This happened while many of those countries’ public sectors were borrowing themselves into bankruptcy, suffering painful adjustment and low growth, and holding fire sales of public assets.
  • The assets of these countries are held by a small number of wealthy individuals while the debts are shouldered by the ordinary people of these countries through their governments.
  • The offshore industry is protected by pivate bankers, lawyers and accountants, who get paid handsomely to hide their clients’ assets and identities.
  • Bank regulators and central banks of most countries allow the world’s top tax havens and banks to hide the origins and ownership of assets under their supervision.
  • Although multilateral institutions like the Bank for International Settlements (BIS), the IMF and the World Bank are supposedly insulated from politics, they have been highly compromised by the collective interests of Wall Street.
  • These regulatory bodies have never required financial institutions to fully report their cross-­border customer liabilities, deposits, customer assets under management or under custody.
  • Less than 100,000 people, .001% of the world’s population, now control over 30% of the world’s financial wealth.
  • Assuming that global offshore financial wealth of $21 trillion earns a total return of just 3% a year, and would have been taxed an average of 30% in the home country, this unrecorded wealth might have generated tax revenues of $189 billion per year.

Summing up this situation, the report notes: “We are up against one of society’s most well-­entrenched interest groups. After all, there’s no interest group more rich and powerful than the rich and powerful.”

Fortunately, Machiavelli has supplied a timeless remedy to this increasingly dangerous situation:

  • Assume evil among men–and most especially among those who possess the greatest concentration of wealth and power.
  • Carefully monitor their activities–the way the FBI now regularly monitors those of the Mafia and major terrorist groups.
  • Ruthlessly prosecute the treasonous crimes of the rich and powerful–and, upon their conviction, impose severe punishment.

THE REAL “TAKERS”: THE RICH

In Business, History, Politics, Social commentary on February 26, 2013 at 1:08 am

Ann Coulter, the Republican version of the Miss America Nazi, was devastated by the November 6 defeat of Mitt Romney.

“People are suffering,” she whined. “The country is in disarray. If Mitt Romney cannot win in this economy, then the tipping point has been reached. We have more takers than makers and it’s over. There is no hope.”

Actually, Coulter was right–but not in the way she thought she was.

The “takers” are not the “have-nots” who depend on government for assistance.  They are the “more-than-haves” who cheat the government of billions in lost tax revenues.

In 2012, Tax Justice Network, which campaigns to abolish tax havens, commissioned a study of their effect on the world’s economy.

The study was entitled, “The Price of Offshore Revisited: New Estimates for ‘Missing’ Global Private Wealth, Income, Inequality and Lost Taxes.”

http://www.taxjustice.net/cms/upload/pdf/Price_of_Offshore_Revisited_120722.pdf

The research was carried out by James Henry, former chief economist at consultants McKinsey & Co.  Among its findings:

  • By 2010, at least $21 to $32 trillion of the world’s private financial wealth had been invested virtually tax-­free through more than 80 offshore secrecy jurisdictions.
  • Since the 1970s, with eager (and often aggressive and illegal) assistance from the international private banking industry, private elites in 139 countries had accumulated $7.3 to $9.3 trillion of unrecorded offshore wealth by 2010.
  • This happened while many of those countries’ public sectors were borrowing themselves into bankruptcy, suffering painful adjustment and low growth, and holding fire sales of public assets.
  • The assets of these countries are held by a small number of wealthy individuals while the debts are shouldered by the ordinary people of these countries through their governments.
  • Local elites continue to vote with their financial feet while their public sectors borrow heavily abroad.
  • First World countries do most of the borrowing.
  • Of the $7.3–$9.3 trillion of offshore wealth belonging to residents of these 139 countries, the top 10 countries account for 61% and the top 20 for 81%.
  • The offshore industry has many levels of protection: Private bankers, lawyers and accountants get paid handsomely to hide their clients assets and identities.  These groups also maintain influential lobbies.
  • Bank regulators and central banks of most individual countries typically view private banks as key clients.  They have long permitted the world’s top tax havens and banks to conceal the ultimate origins and ownership of assets under their supervision, especially those held in off-balance sheet trusts and
    fiduciary accounts.
  • Although multilateral institutions like the Bank for International Settlements (BIS), the IMF and the World Bank are supposedly insulated from politics, they have been highly compromised by the collective interests of Wall Street.
  • These regulatory bodies have never required financial institutions to fully report their cross-­border customer liabilities, deposits, customer assets under management or under custody.
  • All conventional measures of inequality sharply understate the levels of income and wealth inequality at both the country and global level.
  • Less than 100,000 people, .001% of the world’s population, now control over 30% of the world’s financial wealth.
  • The impact on lost tax revenue may be huge–large enough to make a significant difference to the finances of nations.
  • Assuming that global offshore financial wealth of $21 trillion earns a total return of just 3% a year, and would have been taxed an average of 30% in the home country, this unrecorded wealth might have generated tax revenues of $189 billion per year.

Summing up this situation, the report notes: “We are up against one of society’s most well-­entrenched interest groups. After all, there’s no interest group more rich and powerful than the rich and powerful.”

Yet the study reveals two bright spots for countries fed up with being bled dry by those parasites whose allegiance runs only to their wallets.

  1. A huge pile at least $21 trillion of untapped financial wealth has been discovered–monies that can be called upon to help solve the most pressing global problems.
  2. A substantial fraction of this wealth is being managed by the top 50 players in the global private banking industry.

As a result, these findings allow nations’ leaders to:

  • Prevent the abuses that have lead to off-the-books wealth accumulation in the future.
  • Make use of the huge stock of accumulated, untaxed wealth that is already there, as well as the steady stream of untaxed earnings that it generates.

It was Stephen Decatur, the naval hero of the War of 1812, who famously said: “Our country, right or wrong.”

Billionaire tax-cheats like those uncovered in the above-cited report have coined their own motto: “My wallet–first and always.”