Category Archives: Corporations

Families In Deep Doo-Doo.

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It seems that nearly every week, a new study is released that shows the growing income disparity in the United States. Recently, an Associated Press survey found that 80 percent of adults in the US face near-poverty and unemployment at some point in their lives. Another study by the International Human Rights Clinic at New York University’s School of Law found that 1 in 6 (50 million) Americans face food insecurity, including 17 million children.

Now, the medical journal Pediatrics has published a study measuring the psychological impact on mothers who are unable to afford diapers.

The study, “Diaper Need And Its Impact on Child Health,”  by a group of Yale researchers, found that 30 percent of mothers have struggled to pay for diapers and more than 8 percent of low-income mothers reuse soiled diapers! Not surprisingly, the researchers concluded that the lack of clean diapers “seriously affects maternal stress, child health, and child development.”

So, in the richest nation on Earth, a large percentage of our people can’t tend to the needs of either end of a baby!

We have millions who can’t afford the most basic necessities despite working full-time jobs. We have tens of thousands of homeless – many of them families and veterans. And, instead of passing laws to raise the minimum wage; instead of eliminating tax loopholes that encourage companies to ship manufacturing jobs overseas; instead of passing bills to help create jobs here at home; House Teapublicans plan to cut $40 billion from our food stamp programs over the next 10 years.

It will be difficult since the House has only 9 scheduled work days between now and the end of September, but I’m certain they’ll find a way.

Growth Of The “Moocher” Class.

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During the 2012 presidential election, Mitt Romney was famously caught on camera talking about the 47 percent he claimed pay no taxes. That led to the conservative media referring to the 47 percent as the  “moocher” class; those people whose votes could be bought with promises of free “stuff,” such as food stamps, unemployment insurance and access to healthcare.

According to a new survey exclusive to The Associated Press, Romney had the numbers wrong. The survey shows that 80 percent of adults in the US face near-poverty and unemployment at some point in their lives. You read that correctly…80 percent!

In addition, the latest NBC News/Wall Street Journal poll found that 22 percent of Americans have been significantly affected by the sequester budget cuts. And those who earn less than $30,000 per year have been hardest hit. Moreover, 1 in 6 (50 million) Americans face food insecurity, including 17 million children.

The vast majority of these people work full-time jobs; some work two jobs or more and still can’t make ends meet. Yet conservatives call these people “moochers” and “takers.” Fox News Channel and conservative radio hosts vilify and ridicule the working poor. Instead of placing the blame where it belongs…on greedy corporations and an economy that no longer offers the majority of Americans an opportunity to realize the American Dream…Congressional Teapublicans blame the problem on labor unions, pensions, Social Security, Medicare and Medicaid. They have voted to cut food stamps and unemployment insurance benefits. They have voted 39 times to repeal Obamacare, denying access to healthcare for more than 50 million poor Americans. And, instead of voting to fund projects that would rebuild our infrastructure and create good-paying jobs, they vote to cut taxes for the wealthy.

In the two and a half years since regaining control of the House by promising to focus on jobs, Teapublicans continue to push for budget cuts and to place obstacles in the way of our economic recovery.

As a result of their indifference to the plight of ordinary Americans, our economy continues its slow recovery. We continue to see the loss of good-paying jobs to other countries. We continue to see the loss of pensions and income security for the elderly. And we continue to see a widening gap between the rich and the poor.

Teapublicans are right to talk about the “givers” and “takers” in our society. But they have things backwards. The “givers” are the working people who pay a disproportionate share of their income to taxes, including payroll deductions and sales taxes. And the “takers” are the very wealthy and large corporations who benefit from corporate welfare and record profits.

Egypt’s Morsi = America’s GOP

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When asked to explain the removal of President Mohamed Morsi, Egyptian leaders said that Morsi had offered no plan; no vision to solve the nation’s problems. Instead, he focused on consolidating the power of the Muslim Brotherhood and instituting Sharia law.

In many ways, his actions paralleled those of the GOP in the US.

Like Egypt, we have millions of unemployed. We have tens of thousands of recent college graduates with no jobs; not even any prospects of jobs. We have millions who, despite working full-time jobs, live in poverty. Our infrastructure is crumbling around us.

So how are Congressional Republicans dealing with these problems?

Like the Muslim Brotherhood, they are focused on consolidating power. In Republican-controlled states, they are gerrymandering Congressional districts to ensure their re-election. They are pushing through laws to limit the voting rights of minorities. And they are instituting their own form of repressive, antiquated laws to control women’s bodies; to control who may marry; to pick economic winners and losers.

The GOP has offered no legislation to address our growing number of problems. No jobs bills. No plan to rebuild infrastructure. No plan to help workers earn a living wage. No plan to break up our growing number of monopolies. No plan to deal with climate change. No plan to control healthcare costs. No plan to take the corruption out of politics.

The GOP’s only vision is to obstruct the plans of President Obama. If anything, that makes them worse than Morsi’s Muslim Brotherhood.

Abolish The IRS?

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Tea Party favorite, Sen. Rand Paul, is featured in a TV commercial calling for viewers to sign a petition to abolish the IRS. Paul and his fellow Tea Party parasites are capitalizing on what they falsely call an unconstitutional attack on conservatives to get what they really want…a flat tax.

The flat tax is a horrible idea that has long been pushed by the wealthy and conservatives. It doesn’t sound bad; you just total up the income you received for the year and pay a flat percentage of that income. No accountants or tax preparers needed. But since everyone would pay the same percentage, the flat tax would be a huge victory for the wealthy and an unprecedented attack on the poor.

The very conservative Heritage Foundation recommends that the tax rate be set at 28 percent. It would eliminate payroll taxes, estate taxes, excise taxes and taxes on savings. It would give a modest tax credit to the poor. The only other tax deductions would be for higher education, gifts and charitable deductions.

Of course, the poor and modest income households don’t make enough to have savings. So eliminating a tax on savings only benefits the wealthy. Likewise, only the wealthy would benefit from eliminating estate taxes. The wealthy would certainly benefit the most from the charitable deductions. And since the top marginal tax rate is now 39.6 percent, the flat tax would give those making $400,000 and up a tax cut of 11.6 percent!

The real effect of the flat tax proposal would be to dramatically cut taxes for the wealthy and raise taxes on those who can least afford it.

The flat tax is just another Trojan horse concocted by conservatives to benefit their wealthy masters. It would move even more of the tax burden onto the middle class and make the plight of the poor utterly hopeless. A better idea is to rid our current tax code of the deductions, tax shelters and subsidies created by conservative politicians to help their campaign contributors avoid paying their fair share of taxes.

A flat tax will simply help them avoid taxes altogether.

Since no one actually likes paying taxes, the IRS has few friends. Yet, without the IRS, who would track down the thousands of tax cheats? With no enforcement, thousands more would be encouraged to avoid paying taxes. And, though a flat tax may sound like a good idea, if it ever happens, the American dream will become a nightmare for all but a very few.

What’s Wrong With The US? Connect The Dots.

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It’s probably self-evident, but our government is no longer of the people, by the people and for the people. A more accurate description would be of the corporations, by the corporations and for the corporations.

But how did we get here? How have a few powerful multinationals and one percent of the population usurped power from the vast majority of the people? In order to fully understand this, all you need to do is connect the dots.

  • We have allowed a few large corporations to create virtual monopolies, often with the help of government subsidies. These corporations buy out, squeeze out and drive out small businesses.
  • The CEOs of these corporations sit on each others’ Boards and approve each others’ compensations.
  • A portion of CEO compensation is based on the companies’ productivity and share price. That means the CEOs strive to cut costs (employee benefits and salaries) while increasing the price of products and services.
  • Once corporations achieve maximum productivity and profit with US employees, they are encouraged to offshore jobs in order to further reduce labor costs and employee benefits.
  • As corporations expand around the world, it becomes easier to stash profits offshore in order to reduce their tax burden and further increase profits.
  • These increased profits and compensation allow corporations to “invest” millions in the political campaigns of those who will support corporate interests.
  • The campaign contributions by corporations and corporate leaders leads to a massive increase in the cost of running for office, driving away those who might represent ordinary working people.
  • Corporate-financed Political Action Groups and associations, such as the US Chamber of Commerce spend additional millions to support corporate-friendly candidates.
  • Once the corporate-friendly candidates are sworn into office, they pass legislation that benefits their contributors.
  • Corporations and industries finance large lobbying efforts to further impact legislation resulting in large government contracts and subsidies.
  • Eventually, the corporate-friendly politicians nominate and approve judicial appointments that make the courts more friendly to corporate interests (see Citizens United v FEC, Buckley v Valeo and Bowman v Monsanto).
  • Politicians, with help from the courts (see Shelby County v Holder), undermine the voting rights of minorities and others who oppose them. At the same time, they wage war against the poor by cutting education, unemployment benefits and food stamps. They allow corporations to steal their savings, even their homes without repercussions.

We can take back our government, but it won’t be easy. It starts with election finance reform that takes the massive amounts of money out of political campaigns. It ends with politicians who, in the interests of ordinary people, are willing to break up “too big to fail” corporations as President Theodore Roosevelt once did.

What Egypt Reveals About US Foreign Policy.

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In one of the most ironic foreign policy twists of all time, Egyptian journalists are reporting that a majority of Egyptians now link the US with the Muslim Brotherhood and deposed President Mohamed Morsi.

No, it’s not because President Obama is the socialist Muslim Teapublicans think him to be. The reality is much less interesting. It stems from our undying belief in democracy, and the fact that Americans equate democracy with freedom. But, as we’re learning, democracy does not always lead to freedom, and it doesn’t always represent the will of the people.

Egypt is a great case in point.

When Morsi was elected president, it had less to do with his vision for the future of Egypt than the fact that his Freedom and Justice Party representing the Muslim Brotherhood was more organized and more powerful than the opposition parties. After all, political parties had not previously played a large role in Egyptian government because Egypt had never before held democratic elections. Nevertheless, the US felt it necessary to embrace Morsi after he won election.

Once Morsi gained power, he ignored the economic issues of poverty and joblessness that led to the overthrow of Hosni Mubarak. Instead, Morsi focused on consolidating power in order to ensure that Freedom and Justice Party candidates could not be defeated in future elections. He also took steps to replace the current legal system with Islamic law.

To that end, Morsi reinstated the Islamist-dominated parliament that was disbanded by the Supreme Constitutional Court. He then ordered the return of legislators elected a year earlier, a majority of whom are members of his own party or other Islamist groups. Morsi objected to a constitutional provision that would limit his presidential power and announced that any constitutional amendments restricting the president’s powers would be annulled. And late last year, he issued a declaration purporting to protect the work of the assembly convened to draft a new constitution from judicial interference. But, in effect, that declaration immunized his actions from any legal challenge.

By this time, most Egyptians had had enough. But the Obama administration, like so many of the administrations before it, felt it had little choice but to continue to support a democratically-elected president. So we continued to provide billions of military aid to Egypt.

Now the US is left in a very awkward position.

US law dictates that we cut off military aid to any nation that removes a democratically-elected leader through a military coup. Yet one can easily argue that the Egyptian military was directed by the will of the people. And if we do cut off military aid, we risk alienating the military leaders, the most powerful political force in Egypt. Furthermore, it would lend more credence to the notion that we support the Muslim Brotherhood over the will of the people.

We likely wouldn’t be in this dilemma if our foreign policy put more emphasis on humanitarian aid versus military aid. For decades, we have continued Cold War policies of providing weapons to nations (including those run by brutal dictators) that support our corporate…er…national interests. At the same time, we have tended to ignore the health and welfare of ordinary people.

The resulting void is too often filled by terrorists and militant organizations.

Such organizations have endeared themselves to ordinary citizens by building schools, mosques, water treatment plants, medical facilities and other things that directly benefit a majority of the people. That helps them more easily recruit members and enables them to draw a stark contrast with the US. And when these nations inevitably erupt in political turmoil, our own weapons are often turned against us.

Why do we continue such bone-headed foreign policies? In a word, money. Selling weapons to governments that support our multinational corporations is very profitable for our military-industrial complex. Building infrastructure and creating jobs…not so much. Moreover, economic disparity and poverty provide a ready source of cheap labor for multinational corporations in search of places to send our manufacturing jobs.

What Happened To Creativity?

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After the conclusion of the past TV season and viewing the latest sample of so-called blockbuster (emphasis on bust) movies, I must conclude that creativity in the US is either dead or on life support.

As a former advertising creative director, for the first time since the early 1960’s, I ignore most of the commercials. It seems that most US commercials are bland compared to their international counterparts. It’s not for lack of budget. Large US advertisers are literally throwing money at production and getting little in return. That’s because the ideas are mostly formulaic and stunted by research.

Much of the TV programming is worse than the advertising. Except for HBO, “Reality” TV has replaced comedy and drama. We have Survivor, Big Brother, Storage Wars, Swamp People, Here Comes Honey Boo Boo, The Apprentice, The Amazing Race…ad nauseum. Unfortunately, there appears to be no end in sight for the dumbing down of American TV (hard to imagine it could get worse that the vast wasteland of the 60’s and 70’s). Because reality TV is cheap to produce, some industry insiders are predicting the end of scripted television.

Our movies are no better. Hollywood has abandoned stories in favor of bombastic production. Most of the movies are devoted to disasters of one kind of another. Those that aren’t, are remakes of old classics. The reason?  Lynda Obst, in her book Sleepless in Hollywood, argues that the movie industry is driven by foreign demand. She says that foreign movie sales now account for 80 percent of all movie income; that movies with complex stories relying on dialogue simply don’t draw movie audiences in Europe and Asia. As a result, American movie-goers are forced to suffer through movies that are long on action and short on story. Of course, that fits into the video game psyche of American youth.

To my mind, these industries are only indicators of a distressing lack of creativity throughout the US. More and more, we’re falling behind other nations when it comes to creativity and invention. Now that the hedonistic yuppies of the 80’s are running our corporations, we’re good at making money. But not much else.

Hedge fun managers are creative in finding new ways to rip off unsuspecting investors. Mortgage lenders are creative in finding ways to foreclose on homes. Multinational corporations are creative in avoiding taxes, increasing productivity while cutting costs, and socializing their financial losses.

I believe the US won’t reclaim its leadership role until we, once again, value products, design and people over profits; creativity over productivity; customer service over sales; and craftsmanship over cost-cutting.

Until then, we can watch our nation’s demise on our screens in 3D and HD.

The War Within.

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During the Cold War of the 1950’s, 60’s, 70’s and 80’s, the US and Soviet Union armed proxy nations with the world’s most sophisticated weapons. It was good business for the defense industries of both participants. And when the proxy nations went to war with one another, business got even better.

Now we’re seeing a similar phenomenon within the US.

Arms makers such as Glock, Sturm-Ruger, Smith & Wesson and Winchester continue to design and produce increasingly more lethal weapons. Thanks to the NRA, semi-automatic handguns, tactical shotguns and assault rifles are readily available to all Americans…criminals and the mentally unstable included. These weapons are aggressively marketed through dozens of magazines, TV networks and action movies.

The gun makers even promote guns that are currently banned in the US. Ads for semi-automatic weapons are placed directly across from ads offering kits to convert the semi-automatics into illegal, fully-automatic weapons. (Of course small type in the ads note that the conversion of guns is illegal.)

But that’s not the height of the cynicism of these murder-for-sale businesses.

In addition to marketing weapons to the criminal element, the weapons industry markets even more lethal weapons (including tanks) to police and security forces. That way, they profit from both sides in an ever-escalating war of lethality. The criminally insane obtain more and better weapons. Then the police increase their armaments. And so it goes.

I’m reminded of the game played by the manufacturers of radar guns for police. Once they had upgraded the majority of police departments to the latest technology, they began selling radar detectors to help motorists avoid speeding tickets. Then they introduced improved technology for the police.

The only ones to benefit from such policies are the manufacturers.

A Healthcare System Only The Mafia Could Love.

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Actually, I should offer my apologies to the Mafia.  Because not even the Mafia could create such a blatantly expensive and inefficient system as the one we have in the US. In fact, when Singapore recently decided to create a national healthcare system, they first looked to the US…in order to learn what NOT to do.

We spend $2.7 trillion a year on healthcare with astoundingly poor results. Per capita, we spend more than double that of other any other advanced nation. We also spend $300 billion on pharmaceuticals…nearly double the amount spent by the the rest of the world combined!

The ugly truth is that Americans are addicted to pharmaceuticals. But we’re certainly not addicted to health. We overeat. We eat all of the wrong foods. We refuse to exercise. And we lead overly stressful lives. As a result, we die sooner…our lifespan ranks just 50th in the world!

Not surprisingly, most medical schools don’t teach nutrition, and most don’t offer courses on pharmaceuticals. (They rely on the pharmaceutical manufacturers to teach doctors after they begin practice.)

Our doctors and clinics are paid for the number of patients they see and the number of procedures they perform. Because of the cost, many Americans, especially those who lack insurance, delay going to the doctor until they can put it off no longer. They then go to hospital Emergency Rooms…the most expensive providers of healthcare. That causes healthcare costs to rise for those who do have insurance.

Many doctors hate our healthcare system. Many nurses and other medical workers hate our system. Many medical clinics hate our system. And many hospitals hate our system. If that’s true, then why doesn’t the system change? The answer is simple: Health insurers, medical equipment providers and pharmaceutical manufacturers are making billions at our expense.

Their greed is bankrupting Medicare and Medicaid, not to mention the thousands of Americans who have been forced into bankruptcy as the result of medical emergencies. The Patient Protection and Affordable Care Act will have some effect on our staggering healthcare costs. It will also add 30 million uninsured patients into the system, so it will improve the overall health of our nation.  But these new patients will help to further line the pockets of insurers and pharmaceutical companies.

Not satisfied with their spectacular profits, the health insurance and pharmaceutical industries are spending millions on congressional lobbyists to squeeze even more money out of the system.

The only way to stop the corporate profiteering, to cut costs and to improve healthcare is by creating some form of a single payer system similar to those in Canada, England, France, and most of the civilized world.

The Dismal State Of Our Union.

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Upon listening to the last day of Neal Conan’s Talk of the Nation on NPR, I was surprised by Ted Koppel’s response when asked about the future. Turns out, Koppel shares many of the same concerns as I do. For what it’s worth, here is a compilation of my own views of the current state of our union and its future.

Civil Rights – How depressing that people are still struggling for civil rights nearly 150 years after the end of slavery! The Supreme Court ruling on the Voting Rights Act was a huge setback, unleashing red states to suppress minority votes.

Abortion – Although abortion was made legal in 1973, women are still fighting to wrest control of their own bodies from the old men who control our political system. Amazingly, women are now forced to fight for access to contraception!

Environment – Most Americans say they’re concerned about our environment. They just don’t act like it. Most refuse to sacrifice anything on behalf of our planet’s future.

Hunger – In the richest nation on Earth, 50 million people are unsure of where they’ll get their next meal. That includes 17 million American children!

Energy – Nearly 40 years after President Carter had solar panels installed on the White House, we’re still addicted to fossil fuels. We spill more oil than most other countries use.

Healthcare  – The dirty secret is that we have no healthcare system. We spend more than twice as much as other advanced nations, yet achieve worse outcomes. And we spend more on pharmaceuticals than the rest of the world combined.

Wall Street – Greed has turned large banks into high stakes casinos. Their gambling habit not only cost individuals and pension plans trillions…many families lost their homes. Yet any attempt to regulate these banks has been undermined by millions in lobbying efforts.

Income Disparity – The US ranks among the world’s worst nations for income inequality. 400 Americans control more wealth than half of our population, and the gap is growing. Yet Republicans believe that 47 percent are sponging off the rest!

Jobs – Simply put, we don’t have enough of them. And far too few of them pay enough to support a family. Corporate leaders and politicians, on the other hand, each make enough to support dozens of families.

Privatization – We’ve privatized prisons, prison healthcare, schools, our military, even our intelligence efforts. Although all of these efforts have proven to cost more than publicly run institutions, Republicans are pushing for even more privatization.

Pensions – We lost tens of thousands of employee pensions over the past 40 years, replaced by IRAs and 401Ks which were originally intended to supplement defined benefit pension plans. The money once used for employee benefits now lines the pockets of CEOs, executives and investors.

Politics – Our politics have continued to move to the right, even though our population hasn’t. When Republicans are in control, they unabashedly cram through partisan legislation. When Democrats are in control, they tentatively nibble around the margins instead of doing what they were elected to do. Both parties rely on large corporations to finance their political campaigns.

Tea Party – This is a relatively small group that has had a large impact. Based on lies and meanness, it seems its goal is to take us back to the 16th Century.

Surveillance – Following 9/11, we traded privacy for increased security. The NSA tracks records of our phone calls, search engine terms and emails. Banks and credit card companies track our purchases. And surveillance cameras are everywhere.

Guns – While the NRA works to increase the availability of guns, even for criminals and the mentally ill, manufacturers make guns ever more lethal.

Education – Thanks to conservatives, public education is underfunded and teachers are woefully underpaid. Enough said.

Science – Many now claim that evolution is merely a theory. But so is gravity! Of course, these people also deny man’s affect on climate change. (See education.)

Religious Intolerance – Islam is not the only religion with extremists. The intolerance of all religions seems to be growing.

Anger and Pettiness – Within 20 years of the end of the Fairness Doctrine, 91 percent of talk radio was conservative…mean, angry, venomous Rush Limbaugh-style conservative… and it’s getting worse. (See Tea Party)

War – There’s no denying it. The US absolutely LOVES war. We glorify soldiers and their war machines with military-style ceremonies and flyovers at nearly every large event. And we spend hundreds of billions on “defense” to build bigger, badder war toys.

Iraq – Iraq cost us trillions of dollars and thousands of lives. The result of our sacrifices is that we have turned Iraq into a vassal state of radical Iran.

Afghanistan – Despite setting a deadline for withdrawal, there is no clear outcome for this war. We may leave the country no better off than it was when we arrived.

Syria – Yet another opportunity to dive into a war with no real reason or plan. But it is a war and some of our politicians don’t want to be left out.

War on Drugs – This “war” may have ruined more lives than the drugs themselves. It disproportionately affects minorities, filling our prisons to overflowing. Indeed, we have a larger prison population than any other nation.

Militarization of Police – As our soldiers return from war, they’re increasingly hired by police departments. As a result, police become ever more militarized…with assault weapons and assault vehicles…and further removed from ordinary citizens.

Journalism – In the 1980’s, TV networks began measuring the success of their news organizations by ratings which instantly sensationalized the news and created the “sound bite.”  Worse, most news groups have lost their independence as they were gobbled up by conglomerates.

With all this, it’s difficult to be optimistic about the future, but the pendulum may soon swing the other way. I hope so.