Category Archives: Corporations

The “I’ve Got Mine, You Don’t Deserve Yours” Crowd.

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According to a recent MSNBC.com article by Brian Alexander, lower class people are more likely to have empathy and compassion while the rich are more likely to think of themselves.  

The article confirmed my own observations. 

As an advertising executive, I’ve often listened to wealthy and powerful clients talk about how their success is the result of their own hard work, determination and risk-taking. They rarely give credit to the many other factors that have played a role in their success. 

They tend to forget that their educations were subsidized by local, state and federal governments. They forget the scholarships and low interest government loans that helped them pay for college. They forget about the Small Business Administration loans that provided the seed money for their companies.  They forget about the Tax Increment Financing that resulted in a no-interest, no-property tax loan for their company headquarters.  They forget about the contributions of their employees and suppliers. And they tend to forget about the contributions of their family, teachers, coaches and mentors who helped shape their lives.

One of my former clients, who received more than $50 million/year in compensation, once demanded that his managers fire 10 percent of their workforce after a year of record profits and then hire new replacements.  His reasoning?  He wanted to make certain that his employees would not “rest on their laurels” so he could make even more money the next year.

Fortunately, he was an exception. But an uncomfortable number of people are similarly driven. And because they are so firm in their belief that they “made it on their own,” they are often unwilling to help others reach for success.

It is this mindset that is at the very heart of the Tea Party movement. Their anti-tax, anti-deficit, anti-government, anti-Obama rants are driven by a philosophy best expressed by a quote from their hero, Ayn Rand, “It is the morality of altruism that men have to reject.”

That philosophy clearly explains their opposition to social safety nets such as Social Security, Medicare and Medicaid. It explains their opposition to the extension of unemployment benefits and any government spending to stimulate our moribund economy.  It explains why are they so opposed to the very government institutions that made their success possible.

But according to the MSNBC.com article, “Rich people may not be selfish as much as willfully clueless.  Research at Duke and Harvard universities showed that regardless of political affiliation or income, Americans tended to think wealth distribution ought to be more equal. The problem? Rich people wrongly believed it already was.”

World’s Greatest Nation? Really?

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Although many Americans are fond of calling the US the greatest nation on Earth, that hasn’t been true for many years. Certainly we have the world’s most powerful military, but that’s no criteria for greatness. Neither is the fact that we are still the world’s richest nation, despite the downgrade in our credit rating by Standard & Poors.

But greatest?

Does a great nation tolerate an ever-widening gap between billionaires and the working poor? Does a great nation leave tens of millions of its citizens without access to health care? Does a great nation allow millions of its children to be homeless? Does a great nation allow its education system to become third-rate? Does a great nation allow its infrastructure to decay and collapse merely to give another tax cut to large corporations and the wealthy?

Does a great nation use its financial and military power to prop up brutal dictatorships around the world? Does a great nation bankrupt the small farmers of neighboring countries by subsidizing corporate farms then demonize those farmers when they cross the border looking for jobs? Does a great nation demean those who labor to build things with their hands, to put out fires, or to teach its youth? Does a great nation begrudge a comfortable retirement to its elderly? Does a great nation allow large corporations and the wealthy to elect its politicians?

How can a nation be called great when it rewards greed and corruption? When its judicial system rules that corporations have rights superior to those of its citizens? When its financial institutions are allowed to grow so large they are immune to failure from their own mistakes? When its corporate lawyers are tasked with seeking out financial and legal loopholes that allow their clients to game the system? When its politicians are more concerned with scoring political points than the welfare of its voters? When its citizens are more interested in the antics of its celebrities than those of its government? When it allows its previous leader to run up a huge debt, and then blames the leader who inherited it?

We didn’t need Standard & Poors to tell us that our nation is on the verge of bankruptcy. When it comes to fairness, ideas and ethics, the US has been on the verge of bankruptcy for many years.

Republicans In Denial (As In Denial Of Any Democrat Proposal)

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Today, Congressional Republicans pulled out of negotiations to resolve the deficit.  And (here’s a shocker) they blamed Democrats.  Their reasoning is that Democrats insist on tax increases rather than merely relying on more than $1 trillion in cuts to Medicare and other programs. 

“Let me be clear.  Tax hikes are off the table,” said House Speaker John Boehner. 

So, according to Republicans, even though the major cause of the deficit is the Bush era tax cuts (primarily for the wealthy), the only way to cut the deficit is by cutting spending for Medicare, Medicaid, Social Security, Planned Parenthood, Public Broadcasting, the Environmental Protection Agency, the Consumer Protection Agency, the Department of Education, etc.  At the same time, Republicans refuse to consider cuts to subsidies for Big Oil and corporate agriculture which they say would be tax hikes.  Of course, they also want to repeal the Affordable Care Act and repeal regulations on the financial industry.

So according to Republicans, when it comes to deficit negotiations, everything is on the table.  Except anything that Democrats want.

I guess that’s what passes for “bipartisan negotiations” these days.

Warring States, Part Two

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Recently, I posted a list of wars fought by the US military.  What I didn’t include were the many more military threats intended to force trade with US corporations or to protect our corporate interests overseas.  That list would be many times longer.

In search of resources and markets for our corporate products, we have forced our way into nations all over the world – from Aregentina to Zaire.  And now that we have created the so-called global marketplace, we use the threat of military action to protect our corporate investments anywhere in the world.

That being the case, next time you hear the media refer to a foreign policy or a military deployment as necessary to protect American interests, ask yourself the following questions: 

When did we amend the US Constitution to require our military to protect greedy corporations?  What is the real reason behind the Teapublican push to replace government agencies with for-profit corporations under the label of “privatization”?  Who is really running our government?

Warring States

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The current debate about withdrawing troops from Afghanistan and Iraq, and the anniversary of Daniel Ellsburg’s release of Pentagon papers started me thinking about our history of wars. When I looked it up, I was stunned!

Since our Declaration of Independence, the United States of America has been almost constantly at war. In fact, not counting the Cold War and relatively minor deployments intended to protect American “interests” abroad, the US has been at war all but 33 years of its 236 year history!

Now you may try to justify those wars (as I used to) by assuming they were the result of our desire to spread democracy around the world and to defend human rights.

You could use that argument. But you’d be wrong.

After wresting the continent away from Native Americans, Great Britain, France, Spain, Russia, and Mexico, our military has spanned the globe. Few of our enemies actually attacked us. More often, wars resulted from a perceived threat to our future and security, especially that of our large corporations. Following is a partial list of military actions involving the US:

1775-83 – Revolutionary War
1776-1915 – Indian Wars
1798-1800 – Quasi-War (undeclared naval war with France)
1801-05 – First Barbary War
1806-10 – Mexico
1810-18 – War with Spanish Florida
1812-15 – War of 1812
1815 – Second Barbary War
1824 – Puerto Rico
1838-39 – Indonesia
1840 – Fiji Islands
1841 – Samoa
1843 – China
1844-48 – Mexican-American War
1853-54 – Japan
1854 – Nicaragua
1857-58 – Utah War (dispute with Mormons)
1859 – Mexico
1861-65 – Civil War
1863-64 – Japan
1866 – Mexico
1866 – China
1867 – Nicaragua
1868 – Japan
1871 – Korea
1873-96 – Mexico
1889 – Kingdom of Hawaii
1893 – Kingdom of Hawaii
1898 – Spanish-American War
1899-1913 – Phillipine-American War
1900 – China (Boxer Rebellion)
1914-17 – Mexico
1915-34 – Haiti
1917-18 – World War I
1918-19 – Mexico
1918-20 – Soviet Union
1941-45 – World War II
1945 – China (vs. Japanese)
1950-53 – Korean War
1955-75 – Vietnam
1957-75 – Laos
1965 – Dominican Republic
1968 – Laos & Cambodia
1975 – Angola
1983 – Grenada
1989 – Panama
1991 – Gulf War
1992-96 – Bosnia and Herzegovina
2001-present – Afghanistan
2003-present – War in Iraq

Moreover, since the end of World War II our military, led by the Central “Intelligence” Agency, has overthrown numerous democratically-elected leaders throughout the world. As a result of this incessant meddling, millions have been imprisoned, tortured and killed. For example:

1953 – In Iran, the CIA overthrew democratically-elected Mohammed Mossadegh and replaced him with a brutal dictator, the Shah of Iran.
1954 – In Guatemala, the CIA overthrew democratically-elected Jacob Arbenz after he threatened to nationalize the United Fruit Company, in which CIA Director Allen Dulles owned stock. The right-wing dictators who replaced Arbenz killed more than 100,000 Guatemalans.
1957-73 – In Laos, the CIA carried out approximately one coup a year trying to nullify Laos’ democratic elections.
1959 – In Haiti, the U.S. military helped “Papa Doc” Duvalier become dictator.
1961 – In Dominican Republic, the CIA assassinated Rafael Trujillo, a brutal dictator supported by Washington. But only after his business interests began competing with our own.
1961 – In Ecuador, CIA-backed military forced democratically-elected President Jose Velasco to resign.
1961 – In Congo (Zaire), the CIA assassinated democratically-elected Patrice Lumumba.
1963 – In Dominican Republic, the CIA overthrew democratically-elected Juan Bosch and installed a repressive, right-wing junta.
1963 – In Ecuador, CIA-backed military overthrew President Arosemana. A military junta assumed command and began abusing human rights.
1964 – In Brazil, a CIA-backed military coup overthrew democratically-elected Joao Goulart and replaced him with a brutal junta.
1965 – In Dominican Republic, a popular rebellion tried to reinstall Juan Bosch. The revolution was crushed by CIA-led U.S. Marines.
1965 – In Indonesia, the CIA overthrew democratically-elected Sukarno. His successor, General Suharto, massacred 500,000 to 1 million civilians.
1965 – In Greece, with CIA backing, the king removed George Papandreous as prime minister for failing to support U.S. interests in Greece.
1965 – In Congo (Zaire), CIA-backed military installed Mobutu Sese Seko who exploited his country for billions.
1967 – In Greece, CIA-backed military overthrew the government two days before elections. The ensuing “reign of colonels,” backed by the CIA, tortured and murdered political opponents.
1967 – In South Vietnam, the CIA helped identify and murder 20,000 alleged Viet Cong leaders.
1969 – In Uruguay, notorious CIA torturer Dan Mitrione ascended to power becoming so feared that revolutionaries kidnapped and murdered him a year later.
1970 – In Cambodia, the CIA overthrew popular Prince Sahounek and replaced him with Lon Nol. The move strengthened the Khmer Rouge, which rose to power and massacred millions.
1971 – In Bolivia, CIA-backed military overthrew leftist President Juan Torres. He was replaced by Hugo Banzer who had more than 2,000 political opponents arrested, tortured, raped and executed.
1973 – In Chile, the CIA assassinated democratically-elected Salvador Allende. He was replaced by General Augusto Pinochet, who tortured and murdered thousands of his own countrymen.
1975 – In Angola, the CIA helped launch a war killing more than 300,000 Angolans.
1979 – In Nicaragua, following the fall of CIA-backed Anastasios Samoza II, the remnants of his personal National Guard became the Contras, who fought a CIA-backed guerilla war against the Sandinista government.
1980 – In El Salvador, following the murder of Catholic Archbishop Oscar Romero, the country dissolved into civil war. CIA-trained death squads roamed the countryside, committing atrocities and killing 63,000 Salvadorans.
1983-89 – In Honduras, the CIA taught Honduran military officers how to torture people. The notorious “Battalion 316” used the techniques on thousands of leftist dissidents.
1986 – In Haiti, following the exile of “Baby Doc” Duvalier, the CIA rigged elections in favor of another right-wing military strongman. The CIA-created National Intelligence Service (SIN) suppressed popular revolt through torture and assassination.
1990 – In Haiti, after leftist priest Jean-Bertrand Aristide captured 68 percent of the vote he was deposed by CIA-backed military which brutalized the country.
1993 – In Haiti, as chaos grew, military dictator, Raoul Cedras, is removed on threat of U.S. invasion. Aristide is returned to power only after being forced to accept an agenda favorable to the country’s ruling class.

Here’s an idea. If Americans are as serious about wanting peace as most claim, maybe we could stop meddling in the internal politics of other nations. Then we could take half of our massive defense budget to solve real problems like poverty, climate change, diminishing energy resources, air and water pollution, and health care.

But given our propensity for war, that will probably be viewed as unpatriotic.

The Corporate Takeover Of America

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It’s really nothing new.  For many years, large corporations have been given special privileges by our governments.  After all, it’s believed that they expand the tax base and fuel our economy.

But do they really?

The vast majority of jobs in the U.S. are created by small businesses.  And, while it is true that large corporations are responsible for large contributions to local, state and federal taxes, the contributions are largely the result of their employees’ tax payments.  Fact is, given the resources they consume, the pollution they create, and the expensive infrastructure they require, large corporations pay relatively little in taxes.

What large coporations and their executives do contribute are donations to the political campaigns of those who will give them what they want – government access, influence and power.  And those donations have paid off handsomely in recent years.

Despite the fact that government deficits have increased dramatically over the past 30 years, corporate taxes have routinely diminished.  Indeed, city, county, state and federal governments have bent over backwards to attract and appease large corporations.  For example, cities have provided Tax-Increment Financing (TIF) to large corporations, allowing them to avoid paying property taxes on large buildings.  And when the TIF expires, another large corporation purchases the building with the help of (you guessed it) Tax-Increment Financing.

Counties and states often provide no-interest loans and exemptions from regulations to attract large corporations.  And the federal government often creates tax loopholes to the benefit of corporations.  Many have been given tax breaks for setting up a P.O. box offshore to create a new “headquarters.”  And many have been given tax breaks for exporting manufacturing and tech-support jobs to other countries.

So how have large corporations repaid these favors?

They routinely pull up stakes at the first hint of increased taxes or regulations.  And they fund political campaigns against any elected official who has the temerity to oppose them.  Of course, corporate meddling in our political process will only increase now that the Republican-controlled Supreme Court has ruled that corporations enjoy the Constitutional rights of individuals (a startling decision given the fact that a corporation is little more than a piece of paper that creates a corporate “veil” protecting its founders from creditors in the event of failure).

The Corporate Takeover Of Political Funding.

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Quick.  Tell me which political contributions are most scruitnized by our government:  Individual contributions of $20 or less to candidates?  Or multi-million dollar gifts from corporations to political action committees?

If you guessed the latter, you’re wrong.

Political parties, local clubs and individual candidates are required to account for every political donation to the penny.  On the other hand, political action committees such as those created by Karl Rove to attack Democratic candidates don’t even have to disclose the sources of tens of millions in contributions.

What’s wrong with that picture? 

In the Citizens United case, the Republican appointees to the Supreme Court of the United States overturned decades of legal precedent to rule that corporations have the same rights as individuals.  Yet, in the political arena, corporations now enjoy the privilege of spending as much as they want to influence elections without disclosing their contributions.  And how many large corporations are run by Democrat-leaning CEOs?

Unless you’re an executive of a large corporation or a Republican running for office, you have reason to be concerned.  Very concerned!

The War Within.

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For many years, Republicans have accused Democrats of “class warfare” and “wealth redistribution.”  They’re correct, of course.  But they fail to mention that they are the ones responsible.  And that the wealth is being redistributed to the wealthiest 2% of our population.

Ever since Ronald Reagan began pushing economic policies based on the “trickle-down theory,” our government has “reformed” (eliminated) welfare for the poor and increased welfare for large corporations and the wealthy.

For example, under Republican leadership, Arizona has reduced corporate taxes 15 years in a row.  As a result, the percentage of state revenue from corporate taxes has dropped 35% to 9%.  Is there really any question why the state is facing a deficit of more than $1 billion in 2011?  Not even increased sales taxes and the already draconian cuts in education, state parks and health care for the poor can make up the deficit.  And Arizona is not alone.

For many years, federal, state and local governments have bowed at the altar of big business thanks to Republicans and their allies.

Due to their political leverage, large corporations are given many advantages over their smaller rivals and individuals.  The federal government has allowed multi-national corporations to avoid taxes by locating a post office box off-shore.  These same corporations have been rewarded for sending jobs off-shore, as well.  State governments provide large “loans” and tax incentives to encourage corporations to open facilities in their states.  And city governments provide Tax Increment Financing (another term for property tax avoidance) to encourage development within their cities.

Corporate farm operations have received $billions in subsidies while family farms have been allowed to go bankrupt.  Large oil companies and mining operations are given subsidies to deface our land and pollute our air and water.

And the best example of all is the recent melt-down and ensuing bailout of our largest financial institutions.  In the ’90s, Republicans stripped away most financial regulations allowing these institutions to gamble with our money.  When the institutions failed, taxpayers were forced to loan them $billions to avoid a devastating depression while the gamblers paid themselves $billions in bonuses.And how did Republicans address the situation?  Why, of course, they fought against any form of increased regulation by Democrats!

Now Republicans are determined to extend the Bush-era tax cuts, despite the fact that they’ll add more than $4 trillion to our national debt over the next 10 years!  They even want to permanently extend tax cuts for millionaires that will add more than $700 billion to our deficit over 10 years.  Out of the other side of their mouths, they continue to talk about reducing our growing deficit.

And how do they propose to reduce the deficit they created?  Do they want to eliminate tax loopholes that encourage large corporations to export jobs and avoid taxes?  Do they want to cut our bloated military budget?  Do they want to go after the abuses of military contractors?

Of course not.

They want to end unemployment benefits, reduce Social Security, reduce Medicare, reduce the Veteran’s Administration, eliminate Medicaid (health care access for the poor) and create a national sales tax which will further increase the tax burden on the poor and the middle class.  They may succeed.

As long as Democrats remain dispirited, and independents vote against their own self-interest as they did this year, Republicans and their corporate masters will continue to extract money from working people.  To ensure that, they can rely on a conservative-controlled Supreme Court that equates corporations to people, and allows corporations to spend tens of millions of dollars on behalf of Republican candidates.

How Much Is Your Vote Worth?

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$100? $1,000? $10,000? More? This year, corporate and foreign-funded shadow groups seem willing to spend whatever it takes to convince you to vote Republican.

Unfortunately, you won’t get to pocket the money.  But, thanks to the Supreme Court decision in the Citizerns United case, corporations (both domestic and foreign) are now able to pour hundreds of millions of dollars into advertising campaigns that attack Democrats. Even the Chamber of Commerce is getting into the act. The group has solicited large donations from businesses in China, Saudi Arabia, Dubai, Bahrain and other nations to spend on attack ads against Democratic candidates. Best of all, unlike the $20 donations you give to candidates, the corporations can give anonymously. The shadow groups don’t have to disclose the source of their millions.

Now you may be asking, “Why are corporations so willing to open their vaults for politics?”

The answer is obvious. They expect something in return. And, as always, Republicans stand ready to give it to them. Republican candidates promise to continue their fight against labor unions. They will continue to promote lower taxes for corporations and the wealthy. They are committed to eliminating pesky regulations that protect the environment and consumers. And they continue to attack so-called entitlements such as Social Security and Medicare.

This year, Republicans even offer a few new bonuses for their corporate masters. Many of the so-called Tea Party candidates on the Republican ticket have questioned the Constitutionality of the minimum wage and unemployment insurance. After all, who wants to waste money on a bunch of lazy deadbeats who can’t hold a job?)  Further, Newt Gingrich is even recommending that GOP candidates attack food stamps! 

If all this corporate money is able to buy enough votes, just imagine what that could mean for working people. American workers can look forward to lower wages, fewer benefits, unaffordable health care and no safety nets. Who wouldn’t want that?

The False Promise Of Privatization.

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Since Ronald Reagan, Republicans have promoted the privatization of government services as the solution to all economic problems. They have long wanted to privatize Social Security and Medicare as a method of killing these so-called entitlements. They would like to privatize the postal service. Under Republican administrations, they have already privatized prisons, much of the military, even intelligence-gathering operations. And, at the state level, they propose to privatize highway rest stops and state parks.

The belief is that corporations are always able to do things better, and for less cost, than the government.

Well, let’s examine the concept. Had Social Security been privatized in 2008, most people would have lost large portions of their investments with the crash of the stock markets. Private contractors for the military have bilked taxpayers out of hundreds of billions of dollars in Afghanistan and Iraq. And the recent escape by three murderers in Arizona occurred due to negligence at a for-profit prison.

Want more?

Then how would you feel about the sale of naming rights for the Grand Canyon or Yosemite? The sponsoring corporation could place its logo at the base of the canyon or the base of the falls. And why stop there? All park attendants could wear logos on their backs. There could be billboards for the corporate sponsors everywhere within the park borders. All highways and roads could become toll roads with a series of corporate logos replacing the white dotted center lines. Interstate rest stops could be turned over to fast food corporations and gas stations with pay toilets. All police squad cars could have corporate logos replacing the shields on the doors. And all 911 calls could be routed to call centers in India or the Philippines where the caller is put on hold for 20 minutes.

And once the corporations realize they have control of the business, prices will go up to pay six-or-seven-figure bonuses to the executives and dividends to shareholders.

The point is, corporations are in business to make money and they’re only responsible to their shareholders while government entities are non-profit and report to you. And, as for the claim that corporations are less bureaucratic than government, anyone who has ever worked for a large corporation or tried to get a claim paid by a large insurance company can tell you that’s simply not true.