Category Archives: Corporations

The Truth About The Great “Job Creator.”

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Former Governor and current Panderer-In-Chief, Mitt Romney, claims that he has the experience to put our economy on the fast track.  The question is, the fast track to where?

In his 15 years at Bain Capital, Romney made tens of millions by buying companies and dismantling them, or firing employees and outsourcing jobs to China.  Indeed, according to a story published in Vanity Fair, Bain itself found that during the period of 2002 to 2007, there is “little evidence that private equity owners, overall, added value” to the companies they took over.  Instead, the company found that most of its profits were the result of overall economic growth, rising stock markets and leverage.

More disturbing, the Vanity Fair article found that Romney used every conceivable trick to avoid paying federal income taxes.  Not only did he stash money in a secret Swiss bank account.  He stashed an estimated $30 million in Bain Capital Funds in the Cayman Islands.  In another questionable transaction, he shifted funds to his wife’s name in order to avoid taxes.  There’s even the mystery of how Romney’s IRA, with contribution ceilings of $2,000 per year for 15 years, now contains up to $102 million!

So, while most Americans play by the rules and pay up to 35 percent of their income in taxes, the great “Job Creator” deposited millions off-shore in order to avoid paying taxes to the country he wants to run?  And in the process, he destroyed American companies and jobs?

If this man collects a single vote from an ordinary working American, that’s one more than he deserves.

Willing Ourselves To A Better Economy.

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As several economists have told me, we get the economy we want.  If we think the economy is good, we will buy what we want or need.  Our purchases will increase sales for retailers.  That will increase manufacturing, and the economy will thrive.  As a result, tax revenue grows and our deficits decrease.

On the other hand, if we think the economy is going to be bad, we will restrict spending and increase saving.  If enough people do this, our economy will be pushed into recession, jobs will be cut, tax revenues drop and our deficits and national debt will grow.

Most people know this, especially large corporations, the wealthy and politicians.  And they often manipulate these principles in order to cash in on easy money.  The losers of this sort of manipulation are almost always ordinary working people.

Everyone knows about the principle of buy low, sell high.  So if you’re among the wealthy and powerful, it doesn’t benefit you if the economy grows at a steady, sustainable rate.  In order to really cash in, you need to create periods of high growth, followed by recessions.  In the midst of a recession, you buy low.  Then at the peak of growth, you sell high.  That’s why a chart of our economic history looks like a ride through the Rocky Mountains.

The interest of the wealthy and powerful is obviously money.  But why would politicians be interested in such a strategy of manipulation?

In a word, Power.

If the opposition is in power, the GOP (Guardians Of Privilege) starts screaming about inflation, deficits, debt and other issues in order to frighten ordinary people.  If they scream loud enough and long enough, a large percentage of our population will hold onto their cash in preparation for the coming calamity and delay purchases.  As a result, the economy struggles.

That’s what’s been happening for the past 3+ years.

In order to make President Obama fail, Teapublicans have howled about “outrageous” deficits.  They talk about “saddling our grandchildren with oppressive, overwhelming debt.”  They’ve scared voters about illegal immigrants taking their jobs.  They’ve talked about an “out-of-control government” and “the end of freedom.” 

Unfortunately, the Tea Party, the religious right and others have scooped up this load of dung as if it were gold in the streets.

The only way to avoid being buried by the dung is to call it what it really is.  And to let everyone know that the people spreading the dung are the southern-most end of a north bound elephant.

Clean Coal? Is That Like A Poor Billionaire?

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AmericasPower.org (aka American Coalition for Clean Coal Electricity) is currently running a television campaign attacking the Obama administration’s evironmental protections.  The commercials claim that “clean” coal is an important part of our nation’s energy needs.

They ignore the fact that there simply is no such thing as “clean” coal.

While it is true that much of our electricity comes from coal and will for many years to come, coal should be viewed as little more than a necessary evil.  We will not be able to completely avoid its use for the foreseeable future. However, we should be working to free ourselves from it.

Coal is a carbon-based fuel and, as such, its use spews large quantities of carbon dioxide (aka greenhouse gases) into the atmosphere. According to Richard Conniff in his article, Myth of Clean Coal, coal-fired power plants produced 2 billion metric tons of carbon dioxide — 36 percent of total U.S. emissions in 2006. So even with the use of the most advanced technology, coal-fired plants are harming the environment. And many older power plants lack the technology to clean other elements from their smokestacks, such as sulfur dioxide and nitrogen oxide, mercury, and fine particulates. Indeed, coal power plants are the primary reason most of the lakes across the upper US have warnings limiting the number of fish that should be consumed due to mercury pollution.

And emissions are not the whole story.

Much of our coal is mined by mountaintop removal in the Appalachians, transforming the beauty of the region forever.  In addition to flattening the terrain, over 1,000 miles of West Virginia streams have been buried by strip mine waste.  300,000 acres of hardwood forests in West Virginia have been destroyed.  And 75 percent of West Virginia’s streams and rivers have been polluted.  Underground mining is not much better.  For generations, some coal mining companies have skirted around safety regulations, endangering those who work in the mines.

Yet another issue is coal ash (aka fly ash), the residue from burning coal.  Operators of coal-fired power plants have long been puzzled as to what to do with this by-product.  In the area of the Tennesee Valley Authority, they built vast containment pools.  In 2008, one of those containment dams burst creating a torrent of this poisonous residue into the Emory River. Cost of the cleanup is estimated at more than $1.2 billion.  A few weeks later another spill occured in Alabama polluting Widows Creek and the Tennessee River.

The real crime is that, with a little investment in our infrastructure, we could be moving away from coal as a means of generating electricity.  Studies have shown that roughly half of all the electricity generated in the US is lost in our outmoded “grid.”  So half of the pollution to our air, water and soil is completely unnecessary

A modern grid coupled with increased use of solar, wind and other alternative means of generation could all but eliminate coal-fired electric generation in the US.  But “America’s Power” will never include that information in its ads.

The Freedom To Fail On Your Own.

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There’s a long-standing attitude of individualism in the US that causes people to inherently dislike any form of collectivism, such as collective bargaining through labor unions.  As I wrote in a previous post, we come from a long line of independent-minded people; people who were pushed out of Europe by dictators of all ilks, from royalty to the Roman Catholic Church.

Unfortunately, corporations and their lackeys on the right have been able to exploit this inborn streak of independence to extract money from us.  They have used a combination of lobbyists, campaign contributions, exportation of jobs, and right wing media megaphones to undermine labor unions and pit workers against one another in order to maximize profits while minimizing wages and benefits.

As a result of the propaganda, far too many Americans equate labor unions with socialism or communism.  Many poor and middle class workers vote for candidates that will continue the pattern of withdrawing employee benefits, eliminating pensions, depressing wages and foreclosing on homes.  Now they are turning their attention to the “entitlements” – Social Security and Medicare.

Yet many of us will continue to support corporations out of the fear of losing our jobs, misplaced loyalty, or the determination to “make it on our own.”  What these people don’t understand is that any individual’s disagreement with a large, heavily capitalized corporation is not a fair fight.  A retail clerk cannot fairly negotiate with a big box retailer.  An assembly line worker cannot win against a large manufacturer.  A maid cannot fight a large hotel chain.

The only chance they have to improve their position and their wages is to band together.  Individuals, no matter how hard they work, are far more likely to fail on their own than to make it on their own.

The Age Of The Corporation.

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Following the Great Depression and World War II, most people in the US were independent.  Many owned a small family farm or a small business such as a Five and Dime, a soda fountain, clothing store or whatever.  If they managed to set aside any savings, the money likely went into a Certificate of Deposit or US Savings Bond with guaranteed interest.

Things pretty much continued that way until the 1970s and 1980s.  Then, large indoor shopping malls and big box stores began replacing small retailers.  Farms became larger and larger until only a few families and wealthy corporations could afford the land and equipment.  Much of the US population moved to large cities to work for large corporations. Whatever savings we managed to accumulate went into large, corporate-controlled mutual funds, corporate 401Ks or IRAs.

In the 1990s and early 2000s, yet another trend toward corporate control began as on-line shopping sites began to replace brick and mortor stores cutting salaries and moving many jobs off-shore.

The result of all of this is an almost total corporate dominance of our lives.

We not only rely on large corporations for our jobs.  We have grown to rely on them for food, healthcare, pharmaceuticals, communications, entertainment and our investments (if we’re lucky enough to still have some).  And now large corporations are beginning to seize control of many other aspects of our lives such as education, transportation, even the military.  And, in the most disturbing intrusion of all, thanks to the Supreme Court ruling for Citizens United, corporations are now exerting even more control over our election campaigns.

Our once proud democracy is slowly fading into history.  Welcome to the age of plutocracy.

Greedy Bastards!

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Lately, I’ve been reading Dylan Ratigan’s book, Greedy Bastard$.  This is an even-handed account of how corporations and banks are sucking America dry.  I recommend it to everyone – Democrats, Independents and Teapublicans alike.  I warn you:  It will not only educate you about the state of our nation and how we got here.  It will infuriate you by showing you how corporations and politicians are destroying the nation while, at the same time, wrapping themselves in the American flag (which by the way is now made in China).

If you read it, you will get angry.  But that’s exactly what we need.  Check it out at: http://greedybastards.com/

How Performance-Based Compensation Is Killing America.

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Sometime in the late 70s, I met with a client to discuss his marketing plans for the year.  When I asked about the company’s long-term plans, the client said that his Fortune 500 Company no longer does long-term planning.  When the client noticed my obvious surprise, he told me that things were changing too quickly.  He went on to explain that the company’s CEO is now compensated with a base salary and performance-based stock options.  The higher the stock price, the more the CEO would be paid.

Now more than 30 years later, the effects of performance-based compensation are obvious.

CEOs now base their companies’ success on the share price of securities.  Not on brand value, number of offices and employees, company holdings and investments, or sales.  As a result, many CEOs are now willing to mortgage the future of their companies in order to maximize share price.  Of course, one way to accomplish their short-sighted goal is to increase productivity, aka employee layoffs.  Another popular method is to cut or eliminate employee benefits.  Yet another method is to export jobs to countries that have a plentiful supply of low-cost workers, no labor unions and few regulations.

There is no loyalty to long-time employees, vendors, communities, the nation or the environment.  The only thing that matters is the stock value and how that translates into executive compensation.  The average tenure of a CEO with any one company is slightly more than 8 years.  As a result, they often don’t care about what happens to that company 10, 20 or 30 years from now as long as they have time to cash in their stock.  If the company is aquired or merged, that only means the stock price is likely to go up.

If we want to take back our country from these greedy few, we have to change the way performance is measured.  The price of a share of stock is not enough.  We must also measure the value of corporations to our nation – the number of jobs provided, impact on our environment, contributions to communities, value of natural resources consumed, and taxes paid.

Until that happens, you will continue to see CEOs lead our nation in a race to the bottom.

The Teapublican Book of Lies.

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You know those things Teapublicans present as facts that just never quite make sense?  The ones that are repeated day after day on Fox News Channel and right wing radio?  The conservative ideas that have been tried and failed, but keep coming back?

I’ve taken 50 of those so-called “facts,” researched them, and presented my findings in a new book:  The Teapublican Book of Lies.  It’s a sort of handbook for debates with your conservative friends and family members.

Pardon the shameless self-promotion, but you can buy the book from Amazon.

For Sale: USA, Highest Bidder Takes All.

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This past week, it was announced that Teapublican Super Pacs will spend more than $3 billion on attack ads.  Likely, there will be nearly a billion more spent by the campaigns for Teapublican candidates.

Also in the news this week, was the John Edwards verdict and mistrial over the alleged misspending of money for a 2008 campaign at a time when contributions were limited to $2,500 from any single contributor.

The juxtaposition of the two stories should tell you everything you need to know about the impact of the Supreme Court’s misguided decisions equating money with free speech and corporations with individuals.

Thanks to the Court’s five conservative justices, this election may very well go to the highest bidders.  The Koch brothers, John Paulson, Bill Marriott, Richard Marriott, Julian Robertson, Ken Griffin, and Jim Davis each have donated $1,000,000 or more to Mitt Romney’s campaign.  In addition, the Koch Brothers and Sheldon Adelson have donated untold millions to Super Pacs dedicated to attacking President Obama.

Of course, they don’t expect anything in return…nooooo!  Why would anyone think that?

If, like me, you believe individual voters should decide elections.  Not corporations and billionaires.  If you think that elections should be determined by the quality of ideas.  Not the quantity of contributions.  Then let’s overrule the Court.  Help restore our democracy by signing the petition at www.MoveToAmend.org.

Cutting Defense Spending Does Not Have To Compromise Military Readiness.

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Although Teapublicans insist on cutting government spending despite our fragile economic recovery, they categorically refuse to consider cuts to our defense budget.  They claim such cuts will leave the US vulnerable to attack.  So, when they passed the Ryan budget plan in the House, they included significant budget increases for the Pentagon.

In doing so, they disregarded a Pentagon report requested by Senator Bernie Sanders that shows, over the past decade, the government has awarded contracts totaling $1.1 trillion to defense contractors and their parent companies found guilty of defrauding the government.  In other words, when a military contractor is found guilty of defrauding the government, we demand a settlement.  Then we give them an opportunity to do it again!

If Teapublicans are serious about cutting deficits, the military/industrial complex is the very first place they should look.  Not the last.  The military budget is so bloated the Pentagon can’t even determine what happened to the $60 billion or so that has gone missing in Iraq and Afghanistan!

The money that can be saved by cutting Medicare, Medicaid and Social Security pales by comparison to the money that could be saved just by increasing oversight of military spending.  Moreover, the money spent on safety nets tends to go right back into our economy, while much of the money wasted on military fraud tends to line the pockets of CEOs and foreign dictators.

Of course, Teapublicans don’t want to stop with cuts to safety nets.  They want to hack away money from education, too; money that is truly an investment in our future.  Money that will pay us back in innovation and future increased tax revenues, as opposed to excess military spending that will result in more fraud and waste.

Both parties say this election will determine the future of our nation for generations.  The question is what future do you want?  More military and more wars?  Or a better standard of living for our youth and our seniors?

It seems like an easy choice for me.