Category Archives: Corporations

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.

How Teapublicans Win.

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What happens when you combine the least educated and least curious portion of our electorate with the most selfish and greedy?  What happens when those people are guided by the religious certainty that the Earth is 6,000 years old and that the destruction of our planet will only hasten their opportunity to ride in the golden chariot to heaven?  What happens when they’re led by people who are willing to tell any lie and embrace any falsehood to be elected?

The result is today’s Republican Party.

Of course, they’ll never admit it.  According to Teapublicans, they’re simply trying to rescue America from socialists, communists, fascists and other undesireables such as Democrats, women, school teachers, government workers, labor unions, immigrants, gays, lesbians, transgenders, people of color, and the poor.  I’m sure there are many other “enemies,” but I don’t know what’s inside the minds of Teapublicans.  And, given the ugliness of their rhetoric, I certainly don’t want to peek inside!

The reality is that Teapublican leaders want their followers to fear their neighbors, so they won’t notice the big money interests pulling the strings behind the curtain.  They’re quite literally rigging the system and walking off with the money.  They’ve pushed their tax burden onto the already overburdened middle class.  They collect billions in government contracts and subsidies. And by gaining control of the Supreme Court, they’ve usurped even more control of our political system.

Now they’re out to undermine Social Security and Medicare.  The end result will be to give large financial institutions and insurance companies (both controlled by Wall Street) access to still more of our money.

If more people recognized what’s going on, Teapublicans would never again win an election.  They can’t win based on an open discussion of ideas and truth.  They can only win through a combination of lies, intimidation, dirty tricks and fear.

This year, they are led by a candidate who quite blythely says today what is in direct contradiction with what he said yesterday.  And his followers eat it up.  They’ve manufactured the usual number of straw dogs to excite their base and intimidate opponents, such as ballot measures designed to appeal to their religious base in order to incite more campaigning from the pulpit.  They’ve created PACs and Super PACs with tens of millions in anonymous money to buy votes.  And they are well on their way to repressing minority votes through new voter ID laws.

We’ve seen it all before…in 2000, 2004 and 2010.  And with each passing election cycle, the conversation leans further to the right and ordinary citizens lose a little more control of our country.

What’s Your Definition Of Freedom?

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If you listen to conservative talk radio, you’d think conservatives are the only ones who care about freedom.  They call themselves “patriots” and wrap themselves in the flag in a show of false superiority.  But, truth is, moderates and liberals want freedom, too.  The difference is in the way we define it.

For example, conservatives seem to believe freedom means being able to do whatever they want without restriction.  They seem to equate freedom with money…the more money the more freedom.  And some seem to believe the color of their skin gives them more freedom than others.

Some believe corporations should be free to exploit natural resources without regard to the quality of our air and water.  They believe corporations should be free to sell foods that slowly poison their customers.  They believe corporations should be free to sell any product no matter how flawed or dangerous.  And they believe corporations should be free to use their money and influence to control our government.

Moderates and liberals, on the other hand, believe corporations should be regulated to protect our families and our environment.

Many “conservatives” believe that they should be free to impose their religious and moral beliefs on others.  To tell others who to marry and who to love, and what they can do with their bodies.  Some believe they should be able to control who votes.

Some believe they should have the freedom to speed, to tailgate and to run red lights.  Some believe they have the right to ridicule and intimidate others.  Some believe they should be free to cheat, lie and steal.  Some believe freedom is tied to the barrel of a gun.

Others, like me, consider such people to be bullies and cowards.

That’s the difficult thing about freedom.  Everyone has a different definition.  With more than 300 million sharing this land, freedom requires compromise and we should never allow any ideology to co-opt it.  In fact, the only thing standing between your freedom and mine is government; the system of representation and laws our Founding Fathers had the wisdom to create.  We can’t permit conservatives to claim ownership of it.

The Legacy of Trayvon Martin.

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Following his tragic murder, the circumstances of Trayvon Martin’s death have focused national attention on Florida’s “Stand Your Ground” law authored by ALEC (American Legislative Exchange Council).  It’s not as if the law is unique to Florida.  Like most of the thousands of bills ALEC has authored over the past 30 years, it was peddled to conservative legislators all over the country.  More than two dozen states have some version of the law.

Now that the publicity generated by Martin’s death has shone a bright light on ALEC, a growing number of the organization’s sponsors have severed ties with the group.  Coca-Cola, the Gates Foundation, Kraft Foods, McDonald’s, Pepsico, Wendy’s and Yum! Brands (A&W, KFC, Long John Silver’s and Taco Bell) have all announced they will no longer donate money to ALEC.

But we need to starve ALEC of all the funds it needs to control our legislatures.  We must keep writing ALEC sponsors. We must tell them that we will not support them as long as they support ALEC.  Ending ALEC, the Goldwater Institute and dozens of other such undemocratic organizations would be a great first step in taking back our government. 

And it would be a fitting tribute to the young man who was the victim of a senseless killing.

Sen. Phil Gramm. A Legacy Of Failures.

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Unquestionably, Gramm’s actions as a US Senator were failures for consumers and our economy. But given the massive profits of the “too big to fail” financial institutions, they were great successes for Wall Street and large corporations.

In 1999, then Republican Senator Phil Gramm co-sponsored the Gramm–Leach–Bliley Act, aka the Financial Services Modernization Act, aka the Citigroup Relief Act which was enacted by the 106th US Congress and, unfortunately signed into law by President Bill Clinton. It repealed part of the Glass-Steagall Act of 1933 which had successfully protected consumer finances by erecting firewalls between banks of deposit, security investment companies and insurance companies. The Gramm–Leach–Bliley Act removed those restrictions allowing financial institutions of all kinds to consolidate.

The bill was crafted to provide legal cover for Citigroup which, a year earlier had been formed by the merger of Citicorp and Travelers Group. For the first time since the Great Depression, the merged organization combined banking, securities and insurance services that included Citibank, Smith Barney, Primerica and Travelers.

For Wall Street, it was the best legislation money could buy.

But Sen. Gramm’s meddling on behalf of large financials didn’t stop there. In 2000, he sponsored the Commodity Futures Modernization Act which was also signed into law by President Clinton. It weakened yet another post-Depression law, the Commodity Exchange Act of 1936, freeing over-the-counter derivitives transactions between “sophisticated parties” from regulation under federal securities laws. It is the law that permitted credit default swaps.

Combined, the two Gramm-sponsored laws created an environment of massive profits for Wall Street and led to the 2007 subprime mortgage crisis which cost the world economy an estimated $7.7 trillion! And if that doesn’t give you cause for concern, consider this:  Despite being the poster boy for our current economic problems, Gramm was selected as the senior economic adviser for John McCain’s presidential campaign.

Had McCain been elected with Gramm advising him, imagine where our economy might be now!

Taking Back Our Government.

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Over the past 30 years, no organization or group of individuals has had a more negative impact on our nation than ALEC (American Legislative Exchange Council).  Sponsored by many of the world’s largest corporations, ALEC’s membership consists of the most partisan conservative legislators.  It maintains an ideological staff that writes legislation and peddles it to its members in every state legislature.  In turn, those legislators sponsor the bills, often without even reading them. 

ALEC’s website brags that, each year, nearly 1,000 ALEC-authored bills are introduced in legislatures throughout the US. ALEC has given us some of the nation’s most extreme bills, including the “Stand Your Ground” law that is at the center of the Trayvon Martin murder, Arizona’s infamous SB 1070 anti-Latino bill, anti-union bills and many others designed to promote an extreme ideology and to serve ALEC’s corporate masters.  And its legislation becomes more divisive every year.

How can we stop it?

Last week, several former sponsors showed us the way to defeat this insidious group.  Due to the public attention focused on the “Stand Your Ground” law, Coca-Cola, the Gates Foundation, Intuit, Kraft Foods, McDonald’s, Pepsico and Wendy’s announced they would no longer sponsor ALEC. 

We need to remind the other sponsors that they, too, are vulnerable to public backlash over ALEC’s extreme ideology.  Following is a partial list of the organization’s corporate sponsors according to www.SourceWatch.org.  Contact them and tell them that you will hold them responsible for extreme legislation such as the “Stand Your Ground” law.  If we’re successful, we can starve ALEC of the funds it needs to continue to make a mess of our political system.

Amazon.com, American Express, Amway, Anheuser-Busch, Arby’s, ARCO, AT&T, Bank of America, Bankers Insurance Co., Bayer Corp., Bell Atlantic, Blue Cross and Blue Shield Association, BP America, Bristol-Myers Squibb, CenturyLink, Chevron, Chrysler Corporation, Coldwell Banker, Comcast, ConocoPhillips, Cox Communications, Deere & Company, Dell Inc., Del Webb Corp., Dow Chemical, DuPont, Eli Lilly, Excel Telecommunications, ExxonMobil, Farmers Group Inc., FedEx, Fidelity Investments, Ford Motor Co., Frito-Lay, Fruit of the Loom, GEICO, General Electric, General Mills Restaurants, General Motors, Georgia-Pacific, Gerber Products, Harris Bank, Henkel, Honeywell, HP, Humana Corp., IBM, International Paper, JC Penney Co., Johnson & Johnson, Koch Industries, LaSalle National Bank, Liberty Mutual Insurance, Long Term Care, Inc., Marathon Oil, Mars Inc., Mary Kay Cosmetics, Microsoft, MillerCoors, Monsanto, Motorola, Nationwide Insurance, Nestlé USA, Northern Telecom, Novartis, Outback Steak House, Pennzoil, Pfizer Inc., Procter & Gamble, Prudential Financial, Reynolds American, Ryder Systems, Salt River Project, Sara Lee Corp., Schwan’s Sales Enterprises, Shell Oil, Sony Corp., Sprint Nextel, State Farm Insurance, Texaco, TicketMaster, Time Warner, The Traveler’s Companies, Unilever, United Airlines, UnitedHealthcare, UPS, VALIC, Verizon, Visa, Walgreens, Wall Street Journal, Wal-Mart, Washington Times, Wausau Insurance, WellPoint, Xcel Energy, and YUM! Brands (owner of Kentucky Fried Chicken, Taco Bell, Pizza Hut, Long John Silver’s and A&W).