bureaucracybusters

Posts Tagged ‘UNEMPLOYMENT’

GREED-TESTING FOR CEOS: PART TWO (END)

In Bureaucracy, Business, History, Politics on May 22, 2013 at 12:34 am

Robert Benmosche, the CEO of American International Group (AIG) recently offered some blunt advice to college graduates searching for work.

“You have to accept the hand that’s been dealt you in life,” Benmosche said in an interview on Bloomberg Television. “Don’t cry about it. Deal with it.”

As is typical of one-percenters, Benmosche blames willing-to-work college graduates for the refusal of rich employers to offer jobs instead of excuses.

AIG’s way of “accepting the hand that’s been dealt you in life” was to go crying to the Federal Government for a bailout loan–which eventually ballooned to $182 billion.

If college graduates should “deal with” the hardships of finding a responsible, hiring-inclined employer with a stiff upper lip, as Benmosche advises, the same advice should work wonders on greed-fueled CEOs.

Greed-test CEOs for future government loans.

After all, drug-testing welfare recipients has become the new mantra for Republicans.

Some bills have even targeted people who seek unemployment insurance and food stamps, despite scanty evidence that the poor and jobless are disproportionately on drugs.

The concept of background screening is actually sound. But Republicans are aiming it at the wrong end of the economic spectrum.

Since 2008, the government has handed out billions of dollars in bailouts to CEOs of the wealthiest corporations in the country.

The reason: To rescue the economy from the calamity produced by the criminal greed and recklessness of those same corporations.

In 2008, Alan Greenspan, the former chairman of the Federal Reserve, testified before Congress about the origins of the Wall Street “meltdown.”

He admitted that he was “shocked” at the breakdown in U.S. credit markets and said he was “partially” wrong to resist regulation of some securities.

“Those of us who have looked to the self-interest of lending institutions to protect shareholder’s equity–myself especially–are in a state of shocked disbelief,” said Greenspan, who had ruled the Fed from 1987 to 2006.

As a disciple of the right-wing philosopher, Ayan Rand, Greenspan had fiercely held to her belief that “The Market” was a divine institution. As such, “it” alone knew what was best for the nation’s economic prosperity.

“Enlightened self-interest,” he believed, would guarantee that those who dedicated their lives to making money would not allow mere greed to steer them–and the country–into disaster.

As he saw it, any attempt to regulate greed-based appetites could only harm that divine institution.

Greenspan proved wrong. And the nation will be literally paying for such misguided confidence in profit-addicted men for decades to come.

So if Republicans want to protect the “poor, oppressed taxpayer,” they should demand background investigations for those whose addiction truly threatens the economic future of this country.

That is–the men (and occasionally women) who run the nation’s most important financial institutions, such as banks, insurance and mortgage companies.

Thus, in the future, all CEOs–and their topmost executives–of financial institutions seeking Federal bailouts should be required to:

  • Undergo “full field investigations” by the FBI and IRS.
  • Submit full financial disclosure forms concerning not only themselves but all members of their immediate families.
  • Be subject to Federal prosecution for perjury if they provide false information or conceal evidence of criminal violations.
  • Periodically submit themselves for additional background investigation.
  • Be subject to arrest, indictment and prosecution if the background investigation turns up evidence of criminal activity.

In addition:

  • If a bailout-seeking financial institution refuses to comply with these criteria, it should be refused the loan.
  • If a CEO and/or other top officials are judged ineligible for a loan, the company should be asked to replace those executives with others who might qualify.
  • Those alternative executives should be subject to the same background investigation requirements as just outlined.
  • If the institution refuses to replace those executives found ineligible, the Government should refuse the loan.
  • If the Government is forced to take over a troubled financial institution, its CEO and top executives should be replaced with applicants who have passed the required security screening.

The United States has a long and embarrassing history in worshipping wealth for its own sake. Part of this can be traced to the old Calvinistic doctrine that wealth is a proof of salvation, since it shows evidence of God’s favor.

Another reason for this worship of mammon is the belief that someone who is wealthy is automatically endowed with wisdom and integrity.

Following these beliefs to their ultimate conclusion will transform the United States into a plutocracy–a government of the wealthy, by the wealthy, for the wealthy.

Every day we see fresh evidence of the destruction wrought by the unchecked greed of wealthy, powerful men.

When they–and their paid shills in Congress–demand, “De-regulate business,” it’s essential to remember what this really means.

It means: “Let criminals be criminals.”

GREED-TESTING FOR CEOS: PART ONE (OF TWO)

In Bureaucracy, Business, History, Politics, Social commentary on May 21, 2013 at 1:28 am

Robert Benmosche, the CEO of American International Group (AIG) has some blunt advice to college graduates searching for work in a tight job market.

“You have to accept the hand that’s been dealt you in life,” Benmosche said in an interview on Bloomberg Television. “Don’t cry about it. Deal with it.”

Typical advice from a one-percenter whose company, AIG, suffered a liquidity crisis when its credit ratings were downgraded below “AA” levels in September 2008.

And how did AIG “deal with” its own crisis?  It went crying to its Uncle Sugar, the United States Government, for a bailout.

Which it promptly got.

The United States Federal Reserve Bank, on September 16, 2008, made an $85 billion loan to the company to meet increased collateral obligations resulting from its credit rating downgrade–and thus saving it from certain bankruptcy.

In return, the Government took an 80% stake in the firm.

(The bailout eventually ballooned to $182 billion in exchange for a 92%  stake.)

College graduates, said Benmosche, need to seize the opportunities that become available to them, even if their options are limited.

“They want me to talk to the students and give them a sense of encouragement, especially with the high unemployment,” said Benmosche.

“My advice will be, ‘Whatever opportunity comes your way, take it. Take it and treat it as if it’s the only one that’s coming your way, because that actually may be the truth.’”

Of course, willing-to-work college graduates who can’t find willing-to-hire employers won’t be able to count on a generous bailout from the Federal Government.

To which most of them will owe hundreds of thousands of dollars in student loans.

It’s long past time to apply to “untouchable” CEOs like Robert Benmosche the same criteria that right-wing Republicans demand be applied to welfare recipients.

Throughout the past year Republican lawmakers have pursued welfare drug-testing in Congress and more than 30 states.

Some bills have even targeted people who claim unemployment insurance and food stamps, despite scanty evidence the poor and jobless are disproportionately on drugs.

The concept of background screening is actually sound. But Republicans are aiming it at the wrong end of the economic spectrum.

Since 2008, the government has handed out billions of dollars in bailouts to the wealthiest corporations in the country.

The reason: To rescue the economy from the calamity produced by the criminal greed and recklessness of those same corporations.

For example:

  • The Troubled Asset Relief Program (TARP) has invested $118.5 billion in restoring liquidity to the financial markets.
  • Federal Reserve rescue efforts: $1.5 trillion invested.
  • Federal stimulus programs designed to save or create jobs and jumpstart the economy from recession. $577.8 billion invested.
  • American International Group: Multifaceted bailout to help insurers through restructuring, minimize the need to post collateral and get rid of toxic assets. $127.4 billion invested.
  • FDIC bank takeovers: Cost to FDIC fund that insures losses depositors suffer when a bank fails. $45.4 billion billion invested.
  • Other financial initiatives designed to rescue the financial sector. $366.4 billion invested.
  • Other housing initiatives designed to rescue the housing market and prevent foreclosures. $130.6 billion invested.

Total of federal monies invested: $3 trillion.

It’s important to note that these figures–supplied by the Federal Reserve, Treasury Department, Federal Deposit Insurance Corporation, Congressional Budget Ooffice and the White House–date from November 16, 2009.

And it’s equally important to remember that welfare recipients did not

  • hold CEO positions at any of the banks so far bailed out;
  • run such insurance companies as American International Group (AIG);
  • administer the Federal Home Loan Mortgage Corporation, known as Freddie Mac;
  • command the Federal National Mortgage Association, known as Fannie Mae.

The 2010 documentary “Inside Job” chronicles the events leading to the 2008 global financial crisis. One of its most insightful moments occurs at a party held by then-Treasury Secretary Henry Paulson.

“We can’t control our greed,” the CEO of a large bank admits to his fellow guests.

“You should regulate us more.”

Greed is defined as an excessive desire for wealth or goods. At its worst, greed trumps rationality, judgment and concern about the damage it may cause.

Greed begins in the neurochemistry of the brain. A neurotransmitter called dopamine fuels our greed. The higher the dopamine levels in the brain, the greater the pleasure we experience.

Cocaine, for example, directly increases dopamine levels. So does money.

Harvard researcher Hans Breiter has found, via magnetic resonance imaging studies, that the craving for money activates the same regions of the brain as the lust for sex, cocaine or any other pleasure-inducer.

Dopamine is most reliably activated by an experience we haven’t had before. We crave recreating that experience.

But snorting the same amount of cocaine, or earning the same sum of money, does not cause dopamine levels to increase. So the pleasure-seeker must increase the amount of stimuli to keep enjoying the euphoria.

In time, this incessant craving for pleasure becomes an addiction. And feeding that addiction–with ever more money–becomes the overriding goal.

Thus, the infamous line–”Greed is good”–in the 1987 film, “Wall Street,” turns out to be both false and deadly for all concerned.

But the situation need not remain this way.

“BRANDING” AND BARBARISM: PART THREE (END)

In Business, Law, Politics, Social commentary on May 8, 2013 at 12:00 am

When an American employer can compel his employees to be permanently tattooed with the company’s logo, it’s time for a complete overhaul of the nation’s employment laws.

That’s what happened to about 40 employees of Rapid Reality, a New York-based residentia real estate brokerage firm, in return for a 15% raise in commission.

Behind such an outrage lies the justifiable fear of employees that their employers will throw them into the street and pocket their earnings.

Click here: Rapid Realty discusses company tattoos – YouTube

And the terms of such an overhaul can best be summed up in a nationwide Employers Responsibility Act (ERA)

Eleven of its ts povisions have already been outlined.  Here are the remaining ones:

(12) The U.S. Departments of Justice and Labor would regularly monitor the extent of employer compliance with the provisions of this Act.

Among these measures: Sending undercover agents, posing as highly-qualified job-seekers, to apply at companies—and then vigorously prosecuting those employers who blatantly refused to hire despite their proven economic ability to do so.

This would be comparable to the long-time and legally-validated practice of using undercover agents to determine compliance with fair-housing laws.

(13) The Justice Department and/or the Labor Department would be required to maintain a publicly-accessible database on those companies that had been cited, sued/ and/or convicted for such offenses as discrimination, harassment, health and/or safety violations or employing illegal aliens. Employers would be legally required to regularly provide such information to these agencies, so that it would remain accurate and up-to-date.

Such information would arm job applicants with vital information about the employers they were approaching. They could thus decide in advance if an employer is deserving of their skills and dedication. As matters now stand, employers can legally demand to learn even the most private details of an applicant’s life without having to disclose even the most basic information about themselves and their history of treating employees.

(14) CEOs whose companies employ illegal aliens would be held directly accountable for the actions of their subordinates. Upon conviction, the CEO would be sentenced to a mandatory prison term of at least ten years.

This would prove a more effective remedy for controlling illegal immigration than stationing tens of thousands of soldiers on the U.S./ Mexican border. With CEOs forced to account for their subordinates’ actions, they would take drastic steps to ensure their companies complied with Federal immigration laws. Without employers eager to hire illegal aliens at a fraction of the money paid to American workers, the invasions of illegal job-seekers would quickly come to an end.

(15) A portion of employers’ existing Federal taxes would be set aside to create a national clearinghouse for placing unemployed but qualified job-seekers.

* * * * *

For thousands of years, otherwise highly intelligent men and women believed that kings ruled by divine right. That kings held absolute power, levied extortionate taxes and sent countless millions of men off to war–all because God wanted it that way.

That lunacy was dealt a deadly blow in 1776 when American Revolutionaries threw off the despotic rule of King George III of England.

But today, millions of Americans remain imprisoned by an equally outrageous and dangerous theory: The Theory of the Divine Right of Employers.

Summing up this employer-as-God attitude, Calvin Coolidge still speaks for the overwhelming majority of employers and their paid shills in government: “The man who builds a factory builds a temple, and the man who works there worships there.”

America can no longer afford such a dangerous fallacy as the Theory of the Divine Right of Employers.

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

Americans did not win their freedom from Great Britain–-and its enslaving doctrine of “the divine right of kings”-–by begging for their rights.

And Americans will not win their freedom from their corporate masters–-and the equally enslaving doctrine of “the divine right of employers”–by begging for the right to work and support themselves and their families.

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

Corporations can–and do–spend millions of dollars on TV ads, selling lies–lies such as the “skills gap,” and how if the wealthy are forced to pay their fair share of taxes, jobs will inevitably disappear.

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

In 1970, Congress finally recognized the threat organized crime posed to the Nation’s security and passed the Organized Crime Control Act.  This gave law enforcement agents and prosecutors powerful weapons against the Mafia and similar criminal groups.

It’s long past time that Congress be forced–by fed-up voters–to recognize the threat posed to the financial and social security of the Nation by the unchecked power of greed-fueled corporations.

It’s time for Congress to apply to corporate slave-masters the wisdom of Robert F. Kennedy’s warning about the Mafia: “If we do not on a national scale attack organized criminals with weapons and techniques as effective as their own, they will destroy us.”

“BRANDING” AND BARBARISM: PART TWO (OF THREE)

In Business, Law, Politics, Social commentary on May 7, 2013 at 12:05 am

When an American employer can compel his employees to be permanently tattooed with the company’s logo, it’s time for a complete overhaul of the nation’s employment laws.

That’s what happened to about 40 employees of Rapid Reality, a New York-based residentia real estate brokerage firm.  In return, they got a 15% raise in commission.

Although this story has received wide media attention, it has been treated as an oddity out of “Believe It or Not.”  No one has pointed out the sheer barbarity of such a proposal.  Or the sheer barbarity of a culture that bestows such unchecked power on corporate employers.

And the antidote to such employer barbarism: A nationwide Employers Responsibility Act (ERA).

Such legislation would legally require employers to demonstrate as much initiative for hiring as job-seekers are now expected to show in searching for work.

In Part One, I outlined its first two provisions.  Here are an additional nine:

(3) Employers would receive tax credits for creating professional, well-paying, full-time jobs.

This would encourage the creation of better than the menial, dead-end, low-paying and often part-time jobs which exist in the service industry. Employers found using such tax credits for any other purpose would be prosecuted for tax fraud.

(4) A company that acquired another—through a merger or buyout—would be forbidden to fire en masse the career employees of that acquired company.

This would be comparable to the protection existing for career civil service employees. Such a ban would prevent a return to the predatory “corporate raiding” practices of the 1980s, which left so much human and economic wreckage in their wake.

The wholesale firing of employees would trigger the prosecution of the company’s new owners. Employees could still be fired, but only for provable just cause, and only on a case-by-case basis.

(5) Employers would be required to provide full medical and pension benefits for all employees, regardless of their full-time or part-time status.

Increasingly, employers are replacing full-time workers with part-time ones—solely to avoid paying medical and pension benefits. Requiring employers to act humanely and responsibly toward all their employees would encourage them to provide full-time positions—and hasten the death of this greed-based practice.2-28-96

(6) Employers of part-time workers would be required to comply with all federal labor laws.

Under current law, part-time employees are not protected against such abuses as discrimination, sexual harassment and unsafe working conditions. Closing this loophole would immediately create two positive results:

  • Untold numbers of currently-exploited workers would be protected from the abuses of predatory employers; and
  • Even predatorily-inclined employers would be encouraged to offer permanent, fulltime jobs rather than only part-time ones—since a major incentive for offering part-time jobs would now be eliminated.

(7) Employers would be encouraged to hire to their widest possible limits, through a combination of financial incentives and legal sanctions. Among those incentives: Employers demonstrating a willingness to hire would receive substantial Federal tax credits, based on the number of new, permanent employees hired per year.

Employers claiming eligibility for such credits would be required to make their financial records available to Federal investigators. Employers found making false claims would be prosecuted for perjury and tax fraud, and face heavy fines and imprisonment if convicted.

(8) Among those sanctions: Employers refusing to hire could be required to prove, in court:

  • Their economic inability to hire further employees, and/or
  • The unfitness of the specific, rejected applicant.

Companies found guilty of unjustifiably refusing to hire would face the same penalties as now applying in cases of discrimination on the basis of age, race, sex and disability.

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

(9) Employers refusing to hire would be required to pay an additional “crime tax.”

Sociologists and criminologists agree that “the best cure for crime is a job.” Thus, employers who refuse to hire contribute to a growing crime rate in this Nation. Such non-hiring employers would be required to pay an additional tax, which would be earmarked for agencies of the criminal justice system at State and Federal levels.

(10) The seeking of “economic incentives” by companies in return for moving to or remaining in cities/states would be strictly forbidden.

Such “economic incentives” usually:

  1. allow employers to ignore existing laws protecting employees from unsafe working conditions;
  2. allow employers to ignore existing laws protecting the environment;
  3. allow employers to pay their employees the lowest acceptable wages, in return for the “privilege” of working at these companies; and/or
  4. allow employers to pay little or no business taxes, at the expense of communities who are required to make up for lost tax revenues.

(11) Employers who continue to make such overtures would be prosecuted for attempted bribery or extortion:

  1. Bribery, if they offered to move to a city/state in return for “economic incentives,” or
  2. Extortion, if they threatened to move their companies from a city/state if they did not receive such “economic incentives.”

This would protect employees against artificially-depressed wages and unsafe working conditions; protect the environment in which these employees live; and protect cities/states from being pitted against one another at the expense of their economic prosperity.

“BRANDING” AND BARBARISM: PART ONE (OF THREE)

In Bureaucracy, Business, Law, Politics, Social commentary on May 6, 2013 at 12:07 am

Would you agree to be permanently mutilated in return for a 15% commission raise by your employer?

Rapid Reality, a New York-based residential real estate brokerage firm, made that offer to its 800 employees, and nearly 40 of them agreed to permanently ink themselves with the company logo.

“I don’t see myself going anywhere, and if I have it on my arm, it’ll force me to keep going and working hard,” Brooklyn-based broker Adam Altman said in a Rapid Realty video  while getting the tattoo. “It’s there for life. Rapid for life, yo.”

Rapid Realty tattoos

And who came up with this new idea in employer barbarism?  Why, no less than Anthony Lolli, the founder of the comopany.

“They wear it like a badge of honor,” said Lolli. “They get a lot of respect from the other agents with the amount of commitment that they have.”

Lolli claimed that the new tatoos help brokers close deals because clients “love the fact there’s someone who’s 100% dedicated to the business.”

Bragging about his brainchild, Lolli tweeted:  “Talk about marketing–they’re walking billboards!”

Click here: Rapid Realty discusses company tattoos – YouTube

For thousands of years, slaves in the ancient world were branded with the mark of their master.  So were slaves in America before the Civil War finally ended 300 years of slaveocracy throughout the South.

During the 20th century, the Nazis tattooed each arriving inmate to their ever-expanding series of extermination camps such as Treblinka and Auschwitz.

Concentration camp inmate tattoo

Behind the practice of branding has always been the equation of “Who/Whom?”  As in: “Who can do What to Whom?”  The one who does the branding is the Conqueror; the one being branded is the Vanquished.

The same holds true for the work-slaves of American corporations as it did for those of the ancient Romans and 20th-century Nazis.

Behind this is the fear American employees justifiably have that, no matter how well or faithfully they work, their employer will cast them into the street.  And, if he does, it will most likely be to pocket their salaries for himself.

The Thirteenth Amendment was supposed to end slavery within the United States.  But the corrupting financial  power of corporate America has turned American workers into so many wage-slaves.

All of which serves as another reason why the United States needs an Enployers Responsibility Act (ERA).

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

And it would achieve this without raising taxes or creating controversial government “make work” programs.

Such legislation would legally require employers to demonstrate as much initiative for hiring as job-seekers are now expected to show in searching for work.

An Employers Responsibility Act would simultaneously address the following evils for which employers are directly responsible:

  • The loss of jobs within the United States owing to companies’ moving their operations abroad—solely to pay substandard wages to their new employees.
  • The mass firings of employees which usually accompany corporate mergers or acquisitions.
  • The widespread victimization of part-time employees, who are not legally protected against such threats as racial discrimination, sexual harassment and unsafe working conditions.
  • The refusal of many employers to create better than menial, low-wage jobs.
  • The widespread employer practice of extorting “economic incentives” from cities or states in return for moving to or remaining in those areas.  Such “incentives” usually absolve employers from complying with laws protecting the environment and/or workers’ rights.
  • The refusal of many employers to provide medical and pension benefits—nearly always in the case of part-time employees, and, increasingly, for full-time, permanent ones as well.
  • Rising crime rates, due to rising unemployment.

Among its provisions:

(1) American companies that close plants in the United States and open others abroad would be forbidden to sell products made in those foreign plants within the United States.

This would protect both American and foreign workers from employers seeking to profit at their expense. American workers would be ensured of continued employment. And foreign laborers would be protected against substandard wages and working conditions.

Companies found violating this provision would be subject to Federal criminal prosecution. Guilty verdicts would result in heavy fines and lengthy imprisonment for their owners and top managers.

(2) Large companies (those employing more than 100 persons) would be required to create entry-level training programs for new, future employees.

These would be modeled on programs now existing for public employees, such as firefighters, police officers and members of the armed services. Such programs would remove the employer excuse, “I’m sorry, but we can’t hire you because you’ve never had any experience in this line of work.” After all, the Air Force has never rejected an applicant because, “I’m sorry, but you’ve never flown a plane before.”

This Nation has greatly benefited from the humane and professional efforts of the men and women who have graduated from public-sector training programs. There is no reason for the private sector to shun programs that have succeeded so brilliantly for the public sector.

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.

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.

A SIGN OF UNEMPLOYMENT: PART SIX (END)

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

Among the provisions of an Employers Responsibility Act:

(13)  The Justice Department and/or the Labor Department would be required to maintain a publicly-accessible database on those companies that had been cited, sued and/or convicted for such offenses as

  • discrimination,
  • harassment,
  • health and/or safety violations or
  • violating immigration laws. 

Employers would be legally required to regularly provide such information to these agencies, so that it would remain accurate and up-to-date.

Such information would arm job applicants with vital information about the employers they were approaching.  They could thus decide in advance if an employer is deserving of their skills and dedication.

As matters now stand, employers can legally demand to learn even the most private details of an applicant’s life without having to disclose even the most basic information about themselves and their history of treating employees.

(14)   CEOs whose companies employ illegal aliens would be held directly accountable for the actions of their subordinates.  Upon conviction, the CEO would be sentenced to a mandatory prison term of at least ten years.

This would prove a more effective remedy for controlling illegal immigration than stationing tens of thousands of soldiers on the U.S./ Mexican border. With CEOs forced to account for their subordinates’ actions, they would take drastic steps to ensure their companies complied with Federal immigration laws.

Without employers eager to hire illegal aliens at a fraction of the money paid to American workers, the invasions of illegal job-seekers would quickly come to an end.

(15)   A portion of employers’ existing Federal taxes would be set aside to create a national clearinghouse for placing unemployed but qualified job-seekers.

* * * * *

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

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

For thousands of years, otherwise highly intelligent men and women believed that kings ruled by divine right.  That kings held absolute power, levied extortionate taxes and sent countless millions of men off to war–all because God wanted it that way.

  • That lunacy was dealt a deadly blow in 1776 when American Revolutionaries threw off the despotic rule of King George III of England.
  • But today, millions of Americans remain imprisoned by an equally outrageous and dangerous theory: The Theory of the Divine Right of Employers.
  • Summing up this employer-as-God attitude, Calvin Coolidge still speaks for the overwhelming majority of employers and their paid shills in government: “The man who builds a factory builds a temple, and the man who works there worships there.”

America can no longer afford such a dangerous fallacy as the Theory of the Divine Right of Employers.

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

Americans did not win their freedom from Great Britain–-and its enslaving doctrine of “the divine right of kings”-–by begging for their rights.

And Americans will not win their freedom from their corporate masters–-and the equally enslaving doctrine of “the divine right of employers”–by begging for the right to work and support themselves and their families.

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

Corporations can–and do–spend millions of dollars on TV ads, selling lies–lies such as the “skills gap,” and how if the wealthy are forced to pay their fair share of taxes, jobs will inevitably disappear.

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

A SIGN OF UNEMPLOYMENT: PART FIVE (OF SIX)

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

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

Two of its provisions have already been outlined.

Among its remaining provisions:

(3) Employers would receive tax credits for creating professional, well-paying, full-time jobs.

This would encourage the creation of better than the menial, dead-end, low-paying and often part-time jobs which exist in the service industry. Employers found using such tax credits for any other purpose would be prosecuted for tax fraud.

(4)  A company that acquired another—through a merger or buyout—would be forbidden to fire en masse the career employees of that acquired company.

This would be comparable to the protection existing for career civil service employees. Such a ban would prevent a return to the predatory “corporate raiding” practices of the 1980s, which left so much human and economic wreckage in their wake.

The wholesale firing of employees would trigger the prosecution of the company’s new owners. Employees could still be fired, but only for provable just cause, and only on a case-by-case basis.

(5)  Employers would be required to provide full medical and pension benefits for all employees, regardless of their full-time or part-time status.

Increasingly, employers are replacing full-time workers with part-time ones—solely to avoid paying medical and pension benefits. Requiring employers to act humanely and responsibly toward all their employees would encourage them to provide full-time positions—and hasten the death of this greed-based practice.

(6) Employers of part-time workers would be required to comply with all federal labor laws.

Under current law, part-time employees are not protected against such abuses as discrimination, sexual harassment and unsafe working conditions. Closing this loophole would immediately create two positive results:

  • Untold numbers of currently-exploited workers would be protected from the abuses of predatory employers; and
  • Even predatorily-inclined employers would be encouraged to offer permanent, fulltime jobs rather than only part-time ones—since a major incentive for offering part-time jobs would now be eliminated.

(7) Employers would be encouraged to hire to their widest possible limits, through a combination of financial incentives and legal sanctions. Among those incentives: Employers demonstrating a willingness to hire would receive substantial Federal tax credits, based on the number of new, permanent employees hired per year.

Employers claiming eligibility for such credits would be required to make their financial records available to Federal investigators. Employers found making false claims would be prosecuted for perjury and tax fraud, and face heavy fines and imprisonment if convicted.

(8) Among those sanctions: Employers refusing to hire could be required to prove, in court:

  • Their economic inability to hire further employees, and/or
  • The unfitness of the specific, rejected applicant.

Companies found guilty of unjustifiably refusing to hire would face the same penalties as now applying in cases of discrimination on the basis of age, race, sex and disability. Employers would thus fund it easier to hire than to refuse to do so. Job-seekers would no longer be prevented from even being considered for employment because of arbitrary and interminable “hiring freezes.”

(9) Employers refusing to hire would be required to pay an additional “crime tax.”

Sociologists and criminologists agree that “the best cure for crime is a job.” Thus, employers who refuse to hire contribute to a growing crime rate in this Nation. Such non-hiring employers would be required to pay an additional tax, which would be earmarked for agencies of the criminal justice system at State and Federal levels.

(10)  The seeking of “economic incentives” by companies in return for moving to or remaining in cities/states would be strictly forbidden.

Such “economic incentives” usually:

  1. allow employers to ignore existing laws protecting employees from unsafe working conditions;
  2. allow employers to ignore existing laws protecting the environment;
  3. allow employers to pay their employees the lowest acceptable wages, in return for the “privilege” of working at these companies; and/or
  4. allow employers to pay little or no business taxes, at the expense of communities who are required to make up for lost tax revenues.

(11)  Employers who continue to make such overtures would be prosecuted for attempted bribery or extortion:

  1. Bribery, if they offered to move to a city/state in return for “economic incentives,” or
  2. Extortion, if they threatened to move their companies from a city/state if they did not receive such “economic incentives.”

This would protect employees against artificially-depressed wages and unsafe working conditions; protect the environment in which these employees live; and protect cities/states from being pitted against one another at the expense of their economic prosperity.

(12)  The U.S. Departments of Justice and Labor would regularly monitor the extent of employer compliance with the provisions of this Act

Among these measures: Sending  undercover  agents, posing as highly-qualified job-seekers, to apply at companies—and then vigorously prosecuting those employers who  blatantly refused to hire despite their proven economic ability to do so.

This would be comparable to the long-time and legally-validated practice of using undercover agents to determine compliance with fair-housing laws.

A SIGN OF UNEMPLOYMENT: PART FOUR (OF SIX)

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

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

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

Dear friends,

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

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

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

* * * * *

Now, consider this passage:

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

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

Nor will it change the behavior of employers who:

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

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

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

But America can end this national disaster–and disgrace.

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

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

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

This solution can be summed up in three words: Employers Responsibility Act (ERA).

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

And it would achieve this without raising taxes or creating controversial government “make work” programs.

Such legislation would legally require employers to demonstrate as much initiative for hiring as job-seekers are now expected to show in searching for work.

An ERAt would simultaneously address the following evils for which employers are directly responsible:

  • The loss of jobs within the United States owing to companies’ moving their operations abroad—solely to pay substandard wages to their new employees.
  • The mass firings of employees which usually accompany corporate mergers or acquisitions.
  • The widespread victimization of part-time employees, who are not legally protected against such threats as racial discrimination, sexual harassment and unsafe working conditions.
  • The refusal of many employers to create better than menial, low-wage jobs.
  • The widespread employer practice of extorting “economic incentives” from cities or states in return for moving to or remaining in those areas. Such “incentives” usually absolve employers from complying with laws protecting the environment and/or workers’ rights.
  • The refusal of many employers to provide medical and pension benefits—nearly always in the case of part-time employees, and, increasingly, for full-time, permanent ones as well.
  • Rising crime rates, due to rising unemployment.

Among its provisions:

(1) American companies that close plants in the United States and open others abroad would be forbidden to sell products made in those foreign plants within the United States.

This would protect both American and foreign workers from employers seeking to profit at their expense. American workers would be ensured of continued employment. And foreign laborers would be protected against substandard wages and working conditions.

Companies found violating this provision would be subject to Federal criminal prosecution. Guilty verdicts would result in heavy fines and lengthy imprisonment for their owners and top managers.

(2) Large companies (those employing more than 100 persons) would be required to create entry-level training programs for new, future employees.

These would be modeled on programs now existing for public employees, such as firefighters, police officers and members of the armed services. Such programs would remove the employer excuse, “I’m sorry, but we can’t hire you because you’ve never had any experience in this line of work.” After all, the Air Force has never rejected an applicant because, “I’m sorry, but you’ve never flown a plane before.”

This Nation has greatly benefited from the humane and professional efforts of the men and women who have graduated from public-sector training programs. There is no reason for the private sector to shun programs that have succeeded so brilliantly for the public sector.