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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.

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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.

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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.”