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HOW TO BE A SMARTER EXECUTIVE: PART TWO (END)

In Bureaucracy, Business, History, Self-Help on May 14, 2013 at 12:00 am

I returned, and saw under the sun, that the race is not to the swift, nor the battle to the strong, neither yet bread to the wise, nor yet riches to men of understanding, nor yet favour to men of skill; but time and chance happeneth to them all.

–Ecclesiastes 9:11

It is one thing to gain executive power, and another to hold onto it.  It is altogether different to use it wisely and justly.

Many are the dictators who have ruled long, but not justly–such as Porfiro Diaz, whose 30-year regime was ended by the Mexican Revolution in 1911.

And many are those who wanted to rule justly but could not face up to the harsh realities of power.  One of these was Francisco Madero, who democratically succeeded Diaz–but was soon betrayed and executed by Victoriana Huerta, one of his own generals.

In Part One, I outlined a number of timeless suggestions by Niccolo Machiavelli, the Florentine statesman and patriot (1469-1527) for attaining and wisely employing executive power.

Niccolo Machiavelli

Many of this nation’s corporate executives and officials manning local, state and Federal agencies (including the Presidency) would do well to pay close attention to his advisories.  Among these:

  • EVALUATING A SUBORDINATE: For a prince to be able to know a minister there is this method which never fails.  When you see the minister think more of himself than of you, and in all his actions seek his own profit, such a man will never be a good minister, and you can never rely on him.  For whoever has in hand the state of another man must never think of himself but of the prince, and not mind anything but what relates to him.
  • TREATMENT OF SUBORDINATES: And on the other hand, the prince, in order to retain his fidelity, ought to think of his minister, honoring and enriching him, doing him kindnesses and conferring on him favors and responsible tasks, so that the great favors and riches bestowed on him cause him not to desire other honors and riches, and the offices he holds make him fearful of changes.  When princes and their ministers stand in this relation to each other, they can rely the one upon the other; when it is otherwise, the result is always injurious either for one or the other of them.
  • TAKING COUNSEL: There is no way of guarding oneself against flattery than by letting men understand that they will not offend you by speaking the truth.  But when every one can tell you the truth, you lose their respect.
  • A prudent prince must therefore take a third course, by choosing for his counsel wise men, and giving them alone full liberty to speak the truth to him, but only of those things that he asks and of nothing else.
  • MAKING DECISIONS: But he must be a great asker about everything and hear their opinions, and afterwards deliberate by himself in his own way, and in these counsels and with each of these men comport himself so that every one may see that the more freely he speaks, the more he will be acceptable.  Beyond these he should listen to no one, go about the matter deliberately, and be determined in his decisions.
  • SEEK THE TRUTH:  A prince, therefore, ought always to take counsel, but only when he wishes, not when others wish.  On the contrary, he ought to discourage absolutely attempts to advise him unless he asks it.  But he ought to be a great asker, and a patient hearer of the truth about those things of which he has inquired.  Indeed, if he finds that anyone has scruples in telling him the truth he should be angry.
  • UNWISE PRINCES CANNOT BE WISELY ADVISED: And since some think that a prince who gains the reputation of being prudent is so considered, not by his nature but by the good counselors he has about him, they are undoubtedly deceived.  It is an infallible rule that a prince who is not wise himself cannot be well advised, unless by chance he leaves himself entirely in the hands of one man who rules him in everything, and happens to be a very prudent man. In this case, he may doubtless be well governed, but it would not last long, for the governor would in a short time deprive him of the state.
  • FORTUNE: I think it may be true that fortune is the ruler of half our actions, but that she allows the other half or thereabouts to be governed by us.
  • I would compare her to an impetuous river that, when turbulent, inundates the plains, casts down trees and buildings, removes earth from this side and places it on the other; every one flees before it, and everything yields to its fury without being able to oppose it.
  • Still, when it is quiet, men can make provisions against it by dykes and banks, so that when it follows it will either go into a canal or its rush will not be so wild and dangerous.

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GIVING ADVICE–SAFELY

In History, Politics, Self-Help on May 10, 2013 at 12:12 am

On the rare occasion when most people think of Niccolo Machiavelli, the image of the devil comes to mind.

Niccolo Machiavelli

In fact, “The Old Nick” became an English term used to describe Satan and slander Machiavelli at the same time.

The truth, however, is more complex. Machiavelli was a passionate Republican, who spent most of his adult life in the service of his beloved city-state, Florence.

The years he spent as a diplomat were tumultuous ones for Italy–with men like Pope Julius II and Caesare Borgia vying for power and plunging Italy into one bloodbath after another.

Machiavelli is best-known for his writing of The Prince, a pamphlet on the arts of gaining and holding power. Its admirers have included Benito Mussolini and Joseph Stalin.

But his longer and more thoughtful work is The Discourses, in which he offers advice on how to maintain liberty within a republic. Among its admirers were many of the men who framed the Constitution of the United States.

Also contrary to what most people believe about Machiavelli, he did not advocate evil for its own sake. Rather, he recognized that sometimes there is no perfect–or perfectly good–solution to a problem.

Sometimes it’s necessary to take stern–even brutal–action to stop an evil (such as a riot) before it becomes widespread.

His counsel remains as relevant today as it did during his lifetime (1469 – 1527)–especially for politicians.

But plenty of ordinary citizens can also benefit from the advice he has to offer–such as those who are asked to give advice to more powerful superiors.

Machiavelli warns there is danger in urging rulers to take a particular course of action:

“For men only judge of matters by the result, all the blame of failure is charged upon him who first advised it, while in case of success he receives commendations. But the reward never equals the punishment.”

This puts would-be counselors in a difficult position: “If they do not advise what seems to them for the good of the republic or the prince, regardless of the consequences to themselves, then they fail of their duty.

“And if they do advise it, then it is at the risk of their position and their lives, for all men are blind in this, that they judge of good or evil counsels only by the results.”

Thus, Machiavelli warns that an advisor should “take things moderately, and not to undertake to advocate any enterprise with too much zeal, but to give one’s advice calmly and modestly.”

The person who asked for the advice may follow it, or not, as of his own choice, and not because he was led or forced into it by the advisor.

Above all, the advisor must avoid the danger of urging a course of action that runs “contrary to the wishes of the many.”

“For the danger arises when your advice has caused the many to be contravened. In that case, when the result is unfortunate, they all concur in your destruction.”

Or, as President John F. Kennedy famously said after the disastrous invasion of Cuba at the Bay of Pigs in April, 1961: “Victory has a hundred fathers and defeat is an orphan.”

By “not advocating any enterprise with too much zeal,” the advisor gains two advantages:

“The first is, you avoid all danger.

“And the second consists in the great credit which you will have if, after having modestly advised a certain course, your counsel is rejected, and the adoption of a different course results unfortunately.”

Finally, the time to give advice is before a catastrophe occurs, not after. Machiavelli gives a vivid example of what can happen if this rule is ignored.

King Perseus of Macedon had gone to war with Paulus Aemilius–and suffered a humiliating defeat. Fleeing the battlefield with a handful of his men, he later bewailed the disaster that had overtaken him.

Suddenly, one of his lieutenants began to lecture Perseus on the many errors he had committed, which had led to his ruin.

“Traitor,” raged the king, turning upon him, “you have waited until now to tell me all this, when there is no longer any time to remedy it—” And Perseus slew him with his own hands.

Niccolo Machiavelli sums up the lesson as this:

“Thus was this man punished for having been silent when he should have spoken, and for having spoken when he should have been silent.”

Be careful that you don’t make the same mistake.

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WHY REGULAR JOBS PROGRAMS DON’T WORK

In Bureaucracy, Business, Politics, Self-Help, Social commentary on May 2, 2013 at 12:18 am

Imagine this: A future President seeks to disband the FBI—and offer bribes to career criminals to not rob, rape and murder. And to sell his proposal, he chooses as his slogan: “Let criminals be criminals.”

If that sounds impossible, consider this: Politicians on both the Right and Left have adopted just that mindset toward holding corporate employers accountable for their criminal greed and irresponsibility.

Case in point: The Obama administration has signaled that it may adopt a Georgia program that allows businesses to train jobless workers for two months without having to pay them.

Its supporters claim the program—Georgia Works—lets workers get their foot in the door and reduces businesses’ hiring risks. Unions assert that it exploits workers and violates federal labor laws.

The drawbacks to this program:

  • It’s only open to workers receiving unemployment insurance benefits.
  • Businesses have no obligation to hire participating workers.

Mississippi, in turn, has launched the Subsidized Transition Employment Program and Services. Funded with left-over stimulus dollars, it initially covers 100 percent of an employee’s wages, gradually reducing the subsidy for every 160 hours worked.

Its drawbacks:

  • It lasts only four months—from August to December, 2011.
  • Businesses will be excluded from the program if funds are exhausted or the September 30 enrollment deadline has passed.
  • Only 80 companies had signed up for the program by early September.

Then there’s the Minnesota solution. Instead of adopting Senator Al Franken’s proposal to use public monies to subsidize wages, Congress enacted the Hiring Incentives to Restore Employment Act. This gave businesses $13 billion worth of tax credits for hiring unemployed workers.

The drawbacks to this effort:

  • The measure has not been evaluated.
  • It does not require employers to hire.

In Connecticut, another jobs program, Platform to Employment, puts workers through a four-week training period followed by an eight-week tryout at a participating business.

During the tryouts, the employees’ wages are paid by The Workplace, Inc., a private company which raised enough funds to support 100 jobs starting this fall.

The drawbacks to this are:

  • Employers get, in effect, free labor.
  • Only those who have already exhausted 99 weeks of unemployment benefits are eligible.
  • Employers have no obligation to hire participating workers.
  • The funds will create only 100 jobs.
  • Employers are not required to participate in the program.

Meanwhile, the unemployment rate keeps steadily rising. In 2007, 228,000 people were unemployed for 99 weeks or longer, according to the Bureau of Labor Statistics.

Today more than 2 million Americans have been unemployed for at least 99 weeks—the cutoff point for unemployment insurance in the hardest-hit states.

And the longer a person is out of work, the less likely s/he is to find an employer willing to hire.

What all these “job creating” programs have in common is this: They apply plenty of carrots–but absolutely no sticks.

Bribes–in the form of tax credits or tax breaks–are liberally applied to entice employers to behave like patriots instead of parasites. But for employers whose refusal to hire condemns their country to economic catastrophe–there are no penalties whatsoever.

A policy based only on carrots is a policy of bribery. A policy based only on sticks is one of coercion. Some people can’t be bribed, and some can’t be coerced. But nearly everyone is open to a policy of rewards and punishments.

Thus, corporations across the country are now sitting atop $2 trillion in profits. But their CEOs are using those monies for:

  • Enriching themselves, their bought-off politicians, their families—and occasionally their mistresses.
  • Buying up other corporate rivals.
  • Creating or enlarging companies outside the United States.

In short, the one expense they refuse to underwrite is hiring their fellow Americans.

This is because:

  • They want to pay their un-American employees far lower wages than would be tolerated by employees within the United States.
  • They want to escape American employee-protection laws–such as those mandating worker’s compensation or forbidding sexual harassment.
  • They want to escape American consumer-protection laws–such as those banning the sale of lead-contaminated products (a hallmark of Chinese imports).
  • They want to escape American laws protecting the environment–such as those requiring safe storage of dangerous chemicals.

They want, in short, to enrich themselves at the direct expense of their country.

In decades past, this used to be called treason.

Yet no major political figure–on the Left or Right–has so far dared to blame employers for selling out their country and destroying its economic prosperity.

No job-seeker, however well-qualified and -motivated, can hire himself onto an employer who refuses to hire.

But corporate CEOs–and their paid political stooges–continue to blame the unemployed for being unable to find employers willing to honor their integrity, qualifications and initiative.

Related image

Americans generally–and the unemployed and under-employed in particular–must hold corporate America accountable for its criminal greed and irresponsibility.

Until they do, the United States will continue to sink further into decline–economically, socially and politically.

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HANGING UP ON THE PHONE COMPANY: PART TWO (END)

In Business, Self-Help on April 26, 2013 at 12:02 am

From November, 2011 to February, 2012, AT&T demanded that Dave pay them for a service they had failed to provide.

They had promised to supply him with Uverse high-speed Internet–at 25 MBPs a second. Instead, he had gotten only 6 MBPs a second. And a big dot in the middle of his computer screen when watching YouTube videos.

Finally, an AT&T rep told him the blunt truth:

His geographical area was not yet supplied with fiber-optic cables that could provide high-speed Internet service.

Dave canceled Uverse–and began getting a series of bills from AT&T.

First one for more than $400.

Then a reduced bill for $260.

Then another for $140.

And still another for $126.95.

After getting a phone call from a collections agency, Dave asked me to intervene with AT&T on his behalf.

So I decided to go directly to the Office of the President.

Long ago I had learned a crucial truth:

The man at the top of an organization cannot fob you off with the excuse: “I can’t do it.” He can do anything he wants to do. And once he decides to do it, everyone below will fall into line.

I already had the phone number: (800) 848-4158.

I had gotten this via a google search under “AT&T Corporate Offices.” This gave me a link to “Corporate Governance”–which provides biographies of the executives who run the company.

And at the head stands Randall L. Stephenson–Chairman of the Board, CEO and President of AT&T Inc.

I didn’t expect to speak with him. One of his chief lieutenants would be enough–such as a woman I’ll call Margie.

First, I introduced myself and said I was authorized to act on Dave’s behalf. Then I handed the phone to Dave (who was sitting next to me) so he could confirm this.

I then briefly outlined the problems Dave had been having.

Margie–using Dave’s phone number–quickly accessed the computerized records documenting all I was telling her.

She said she would need three or four days to fully investigate the matter before getting back to me.

I said that, for me, the crux of the matter was this:

An AT&T rep had told Dave the company could not supply high-speed Internet to his geographical area because it had not yet laid fiber-optic cables there.

This meant:
1.There was a disconnect between what AT&T’s technicians knew they could offer–and what its customer service reps had been told;
2.Or, worse, the company had lied when it promised to provide Dave with a service it couldn’t deliver.

I said that Dave wanted to resolve this quietly and amicably. But, if necessary, he was prepared to do so through the Public Utilities Commission (PUC) and the Federal Communications Commission (FCC).

The PUC regulates phone companies at the State level. The FCC regulates them at the Federal level.

Just as I was about to hang up, I said I couldn’t understand why Dave should have kept getting billed, since he had been assured he wouldn’t be.

Margie said that the company felt he owed $150.00 for “breaking” the two-year contract he had signed.

I immediately noted that AT&T had not lived up to its end of the contract–that is, to provide the promised high-speed Internet service. As a result, they could not demand that Dave pay for something that had not been delivered.

Clearly, this set off alarm-bells for Margie.

When I asked her, “How soon can I expect to hear from you on your company’s investigation into this matter?” she said there was no need to conduct one.

In fact, she added, she was writing out a credit to Dave of $150.00 that very minute.

Previously, she had told me it would take three or four days.

Thus, Dave did not owe the company anything for his disappointing experiment with its Uverse service.

I felt certain that Dave’s experience with a rapacious AT&T was not an isolated case. Just as banks use every excuse to charge their customers for anything they can get away with, so do phone companies.

I knew that AT&T didn’t want the PUC and FCC to start asking: “Is ATt&T generally dunning customers for money they don’t owe?”

I believe the answer would have proven to be: “Yes.”

And I believe that Margie felt the same way.

So, when dealing with a predatory company like AT&T:
1.Keep all company correspondence.
2.Be prepared to clearly outline your problem.
3.Know which State/Federal agencies hold jurisdiction over the company.
4.Phone/write the company’s president. This shows that you’ve done your homework–and deserve to be taken seriously.
5.Remain calm and businesslike in your correspondence and/or conversations with company officials.
6.Don’t fear to say you’ll contact approrpriate government agencies if necessary.
7.If the company doesn’t resolve your problem, complain to those agencies, and/or
8.Consider hiring an attorney and filing a lawsuit.

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HANGING UP ON THE PHONE COMPANY: PART ONE (OF TWO)

In Business, Self-Help on April 25, 2013 at 12:10 am

Lily Tomlin introduced her character of Ernestine, the rude, gossipy, know-it-all telephone operator, in the 1960s series Laugh-In.

A typical skit would open:

“A gracious hello. Here at the Phone Company, we handle eighty-four billion calls a year. Serving everyone from presidents and kings to the scum of the earth.

“So, we realize that, every so often, you can’t get an operator, or for no apparent reason your phone goes out of order, or perhaps you get charged for a call you didn’t make. We don’t care!

“You see, this phone system consists of a multibillion-dollar matrix of space age technology that is so sophisticated even we can’t handle it. But that’s your problem, isn’t it?

“So, the next time you complain about your phone service, why don’t you try using two Dixie cups with a string?

“We don’t care. We don’t have to. We’re the Phone Company.”

All of which was–and remains–hilarious. Except when you face such behavior in real-life with the phone company.

That’s exactly what happened to a man I’ll call Dave.

Dave had had DSL Internet service with AT&T for a year, and had been entirely satisfied with it. So when AT&T offered him Uverse service for less than what he had been paying, he signed up.

But the new service never worked properly.

Dave had been promised that he would get 25 MBPs a second–double his previous download speed.

Instead he got only 6 MBPs a second. He was also being repeatedly disconnected from the Internet.

Dave called AT&T to complain. The company sent a technician to inspect the connection.

The tech told him that the line he was using for DSL was not working with Uverse. He was told he needed to install a new line to solve the problem.

Seeking a second opinion, Dave asked AT&T to send out another technician.

This one said there was already an existing CAT 5 line in Dave’s apartment. He said that by connecting this line to the computer, the problem should be solved.

But after he connected the line, Dave could not watch videos on YouTube because a dot appeared in the middle of the screen.

Since Dave had a Mac, he sought advice at his nearby Apple store. Was there was anything wrong with the computer? he asked.

The Apple rep said the problem was that he wasn’t getting enough download speed.

Dave called AT&T again.

A tech said the problem lay with the modem: Send it back and we’ll send you another.

Dave sent back the modem and AT&T sent him a second.

Dave installed the modem but still found a big dot in the middle of the screen while watching YouTube videos.

A technician tried to resolve the problem from AT&T’s own facilities, but was not able to.

Dave called AT&T and said he was going to disconnect the service because it still wasn’t working.

Suddenly, the blunt truth finally emerged:

An AT&T rep told him that his geographical area was not yet supplied with fiber-optic cables that could provide high-speed Internet service. In six months, the company would probably have such lines set up in his location.

Dave said that in six months, if AT&T had fiber-optic cables installed in his area, he would call back and have service restored.

The rep told him to send back the modem and he would owe nothing.

And that’s when the real trouble started.

Dave soon got a bill from AT&T saying he owed more than $400 for Internet service. He called them back and asked why he had gotten this bill.

The AT&T rep said the bill was to cover the costs of sending over the technicians.

Dave replied that they hadn’t installed any new lines or corrected the problem. They had only checked the line.

AT&T said they would reduce the amount Dave owed to $260. This was to cover about two months’ service and the modem—to be paid one month in advance.

Dave said that he hadn’t gotten service that worked and he would pay the money only if they could get it working properly.

AT&T told Dave to return the modem and he would owe them nothing.

Dave mailed the modem to AT&T in November, 2011.

AT&T then sent Dave a letter saying he owed them $140.

He refused to pay it.

He got another bill that said AT&T was reducing it to $126.95 for Unverse Internet service.

Dave called AT&T and complained.

This time, an AT&T rep said it had been a “computer mistake” and that this would be corrected on his next bill; there would be no such charge.

Shortly afterward, Dave got another letter on February 15, still demanding the payment of $126.95 for Uverse service.

After getting a phone call from a collections agency, Dave asked me to intervene with AT&T on his behalf.

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ENTITLEMENT, TEXAS STYLE

In Bureaucracy, Business, Law, Law Enforcement, Politics on April 23, 2013 at 12:01 am

Ted Cruz voted against federal aid for victims of Hurricane Sandy–three times.

But the United States Senator from Texas quickly announced he would seek “all available resources” to assist victims of the April 17 explosion at a fertilizer plant in West, McLennan County, Texas.

The blast killed 13 people, wounded about 200 others, and caused extensive damages to surrounding homes.

Last October, Hurricane Sandy killed about 150 people and caused an estimated $75 billion in damage across the Northeast.

The Republican legislator stood foursquare against the Sandy Aid Relief bill, claiming that it was loaded with “pork”:

“Hurricane Sandy inflicted devastating damage on the East Coast, and Congress appropriately responded with hurricane relief,” said Cruz.

“Unfortunately, cynical politicians in Washington could not resist loading up this relief bill with billions in new spending utterly unrelated to Sandy.

“Emergency relief for the families who are suffering from this natural disaster should not be used as a Christmas tree for billions in unrelated spending, including projects such as Smithsonian repairs, upgrades to National Oceanic and Atmospheric Administration airplanes, and more funding for Head Start.

“This bill is symptomatic of a larger problem in Washington–an addiction to spending money we do not have. The United States Senate should not be in the business of exploiting victims of natural disasters to fund pork projects that further expand our debt.”

Another Republican, Rep. Bill Flores, who represents West,  McLennan County, also voted against the Sandy relief package.  But this didn’t stop him from requesting federal aid for the disaster in his home district.

U.S. Senator Ted Cruz (R-Texas)

But, according to PolitiFact, “A big portion of the $17 billion in ‘immediate’ assistance, more than $5 billion, went to replenish FEMA’s disaster relief fund, which may fund relief from future disasters.”

Furthermore, Rick Ungar, writing at Forbes, pointed out that the “pork” came from having to bribe red state Republicans–including Texas–to get the package passed over their filibuster:

“However, as it turns out, the pork portions of the Senate bill were not earmarked to benefit Democratic members of the upper chamber of Congress….

“The answer can be found in a quick review of the states that are set to benefit from the Senate’s extra-special benevolence—states including Alabama, Mississippi, Texas and Louisiana.”

In fact, according to a September 29, 2011 article in iWatch News: Texas had the most FEMA-declared disasters since the start of 2009:

“Eleven Republican U.S. senators who represent the states with the most FEMA-declared disasters since the start of 2009 voted against a bill designed to keep the agency’s disaster relief fund from running out of cash.”

“The top two states, Texas and Oklahoma, combined for more than a quarter of the Federal Emergency Management Agency’s declared disasters since Jan. 1, 2009.”

Click here: As FEMA funds run out, senators from states with most disasters oppose funding bill  The Center for Public Integrity

Yet the hypocrisy doesn’t end there.

“The nation’s number one resource is its workers,” said Keith Wrightson, safety expert at Public Citizen, a nonprofit consumer advocacy group. “But the agency that’s charged with protecting them is not given the resources to do it. I think it’s worrisome for the nation.”

The West Fertilizer Company facility hadn’t been inspected by the Labor Department’s Occupational Safety and Health Administration (OSHA) since 1985, when the company was fined $30. Why did the facility go for almost 30 years without further inspections from OSHA?

As a small employer, the fertilizer facility may have been exempt from some forms of OSHA scrutiny.  Years ago, Congress attached a rider to agency funding that forbids OSHA to perform inspections of workplaces with 10 or fewer employees and whose industries have low injury rates.

Lawmakers reason that small businesses shouldn’t have to shoulder the same costs of compliance as larger ones.

But smaller worksites aren’t necessarily less dangerous.  According to safety advocates, small companies often  have fewer resources to invest in worker safety and, with less government oversight, even less incentive.

On April 20, the damning news broke in a Reuters story:

“The fertilizer plant that  exploded on Wednesday, obliterating part of a small Texas town  and killing at least 14 people, had last year been storing 1,350 times the amount of ammonium nitrate that would normally trigger  safety oversight by the U.S. Department of Homeland Security (DHS).”

Explosion at as fertilizer plant in West, McLennan County, Texas

Yet a source told Reuters that West Fertilizer, the company that owns the plant, did not tell DHS about the potentially explosive fertilizer as it is required to do.

The DHS is a major regulator of ammonium nitrate–which can also be used in bomb making.  Thus, it was left totally unaware of the potential danger posed by the plant..

Fertilizer plants and depots must report to the DHS when they hold 400 lb or more of the substance. Filings this  year with the Texas Department of State Health Services, which  weren’t shared with DHS, show the plant had 270 tons of it on hand last year.

In short, this situation offers the ultimate combination of disaster-producing circumstances:

  • A state with lax regulation of corporate businesses.
  • A plant crammed full of highly explosive materials.
  • Hypocritical U.S. Senators callously ignoring the hardships nature inflicts on other states while greedily demanding the lion’s share of emergency resources for their own constituents.
  • A state–Texas–whose governor has openly threatened secession greedily sucking at the tit of the otherwise despised Federal Government.

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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.