Category Archives: Labor

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.

This Is A Reason To Vote For Romney?

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Teapublican presidential candidate, Mitt Romney, has said that anything more than 4 percent unemployment is a failure for the Obama administration.  (It should be noted that the US has rarely achieved such a low unemployment figure.)  Now Mitt says that by the end of the first term of a Romney presidency, unemployment should be somewhere around 6 percent!

Hmmm…so Romney is already predicting that his first term will be a failure?

Even more puzzling is the fact that the Congressional Budget Office (CBO) estimates that continuing the policies of President Obama will result in an unemployment rate of 6 percent by 2015 – a year before the end of President Obama’s second term!  So, if this election is all about jobs as Mitt Romney has said, tell us again Mitt:  Why is it we should vote for you?

What Politicians Aren’t Telling You About The Economy.

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As a result of the 2008 economic crash created by the lack of regulation of Wall Street gamblers, new home construction has slowed to a relative trickle.  According to the National Associaton of Home Buildiers (NAHB), the number of housing units started in the U.S. totaled only 609,000 in 2011.  That compares to 1,131,000 in 2006 as measured by the US Census Bureau and Department of Housing and Urban Development.

Using NAHB estimates that for each new home built three jobs are created, these numbers represent a loss of more than 1.5 million jobs.  They also represent a loss of $67,000 in federal taxes and $23,000 in state and local taxes for each home not built!

And that’s just part of the problem.  In addition to the jobs lost that are directly related to home construction, there are job losses for landscapers, pool builders, movers, the makers and sellers of furniture, window treatments, appliances and more.  Indeed, a writer for The Outer Banks Voice tracked the number of people involved in building his new home in 2010.  He counted a total of 219!

Now multiply that number of 219 times the 522,000 fewer homes built in 2011 than before the Great Recession and you see the scope of the problem.

But there is some good news.  NAHB estimates 1.7 to 1.8 million new homes are needed each year to accommodate population growth and replacement of older housing stock.  So we are creating tremendous pent-up demand.  Sooner or later, the housing market is going to explode.  But it’s going to take time.  Those who bought homes between 2005 and 2008 were burned by home ownership.  They were taken advantage of by unethical mortgage lenders.  They were foreclosed by uncaring banks.  And even if they didn’t lose their homes, they have found that their homes are worth far less than before.

How do you get these people to forget the recent past and jump into the market again?  Given the low prices of homes and low interest rates, there are plenty of incentives.  But, unfortunately, it’s going to take years.

Americans tend to have short memories, but not when it comes to their money.

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).

What If Teapublicans Get Their Way In 2012?

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After watching their debates and reading the conservative legislation being pushed through Congress and our state legislatures, it’s clear that Teapublicans will not be satisfied until they:

– Replace Social Security with retirement accounts based on volatile stock markets.
– Replace Medicare with vouchers leaving seniors at the mercy of private insurers.
– Repeal “Obamacare” making health care unaffordable for 60 million people.
– Eliminate insurance coverage for contraception.
– Eliminate all forms of public assistance for the poor.
– Eliminate unemployment insurance.
– Replace progressive taxes with a flat tax to benefit the wealthy.
– Reduce or eliminate taxes for corporations.
– Eliminate the EPA allowing corporations to foul our air and water.
– Eliminate oil and gas regulations leading to more environmental disasters.
– Open national park lands, such as the Grand Canyon, to mining.
– Eliminate Wall Street regulations designed to prevent economic collapses.
– Eliminate the Consumer Financial Protection Bureau that regulates credit cards.
– Eliminate the Federal Reserve.
– Eliminate the Department of Labor along with labor unions.
– Eliminate pensions and benefits for public employees.
– Eliminate the Department of Education along with public schools.
– Mandate that schools ban the teaching of evolution.
– Eliminate the US Postal Service.
– Eliminate funding for women’s health care through Planned Parenthood.
– Eliminate all subsidies for the development of alternative energy.
– Eliminate funding for the National Endowment for the Arts.
– Eliminate funding for National Public Radio and Public Television.
– Privatize prisons, roads, parks and virtually every other public entity.
– Eliminate all restrictions on firearms and ammunition.
– Eliminate all restrictions on hunting.
– Repeal the Constitution’s establishment clause that prevents a state-sponsored religion.

Seriously, is this the kind of country you want?

A True Conservative.

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During the Teapublican primaries, we’ve all heard candidates who claim to be true conservatives. But upon listening to their plans, I have come to the realization that the only things they really want to conserve are their own fortunes.

It was during a recent Teapublican debate that I discovered I’m definitely not a liberal – never have been. I’ve been a conservative all along.

I believe in conserving clean air and water. I believe in conserving our forests, our streams and our oceans. I believe in conserving wildlife. I believe in conserving fossil fuels by not using them wastefully. I believe in conserving our natural resources by not subsidizing large corporations to exploit them. I believe in conserving our Constitution. I believe in conserving the Bill of Rights which provides equality and the pursuit of life, liberty and happiness. I believe in conserving the separation of church and state.

I believe in conserving lives by only going to war as an absolute last resort. I believe in conserving taxpayer money by eliminating corporate subsidies, off-shore tax havens and no-bid defense contracts. I believe in conserving American middle class jobs. I believe in conserving the American tradition of building things rather than destroying them through vulture capitalism. I believe in conserving the rights of workers to bargain for fair compensation. I believe in conserving our electoral system by banning contributions from corporations and lobbying groups.

I believe in conserving our citizens’ homes and savings with common-sense regulations for greedy financial institutions. I believe in conserving our citizens’ health by providing access to affordable health care. I believe in conserving safety nets such as Social Security, Medicare and Medicaid. I believe in conserving the rights of all people to pursue the marital relationship of their choice. I believe in conserving the rights of women to control their own bodies even if I disagree with some of their decisions. I believe in conserving our future by providing all children with the opportunity to receive a good education.

Finally, I believe in conserving America’s standing as a role model for the world rather than as a bully. And I believe in conserving the idealism that has always driven Americans by focusing on what can be, rather than what once was.

Masters Of The Double Standard.

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The field of Teapublican “presidential” (and I use the term loosely) candidates have proven, once and for all, that Teapublicans are almost completely devoid of ethics. I’d call them hypocrites, but we’re talking about Teapublicans here, so, for their benefit, I’ll try to use small words.

Teapublicans famously fight for so-called family values, yet many support Newt Gingrich who is twice divorced and whose second wife stated that Newt demanded an “open” marriage. In other words, a marriage that would allow him to boink anyone he wanted. So much for the “sanctity” of marriage issue.

Gingrich also admitted to 84 ethics violations while Speaker of the House and resigned in disgrace. Most of these violations were the result of Newt gaming the system to enrich himself. So much for the anti-Washington, anti-corruption issue.

Turning to the front-runner, Teapublicans are furious with so-called “Obamacare.” But what did President Obama use as a model for his health care reform? Why “Romneycare,” of course. You simply can’t be against the Patient Protection and Affordable Care Act and support Mitt Romney. So much for the government health care issue.

Romney is also a “Vulture Capitalist” (Newt’s words, not mine) who led a private equity firm that purchased undervalued corporations with other peoples’ money, saddled the corporations with large management fees then sold off their assests while laying off thousands of American workers. So much for the jobs issue.

In addition, Romney has admitted to “parking” large amounts of money in off-shore bank accounts to avoid paying taxes. And though he has not yet released his tax returns, he estimates that his tax rate is “somewhere in the area of 15 percent.” Given that Mitt is a multi-millionaire, that’s a nice area to be in, especially considering that much of the middle class is taxed at a rate of 30-35 perecent! And, if Romney is elected and allowed to institute his recommended tax policies, his tax rate will dramatically drop while the tax rate for the middle class will remain virtually unchanged. And the tax rate for the poor will actually go up! Moreover, Romney’s tax plan will add tens of billions of dollars to the deficit. So much for the deficit and debt issues.

Voter support for these two only shows that Teapublicans are not really for anything. They’re simply against Obama. And many of them don’t even know why.

Lies, Damn Lies and Teapublican Lies.

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In every field or endeavor, there are people who have difficulty with the truth. Most of us tell the occasional little white lie, often to keep from hurting another’s feelings. Many of us tell lies to make us feel better or to explain a mistake. And then there are chronic, sociopathic liars who make statements that are provably false.

It’s in the latter category where Teapublican candidates, Fox News Channel hosts, religious conservatives and their supporters reside.

Want to kill Medicare? You vote to replace it with vouchers then tell your constituents that you voted to “save” it. Want to lower taxes for the wealthy? You re-position attempts to eliminate tax subsidies and create fairness as “Class Warfare.” Want to kill the EPA? You tell people that environmental regulations are “killing job creation.” Want to help your corporate funders privatize government agencies? You talk about “government waste” and let corporations cherry-pick the most profitable functions. Want to distract voters from your role in the collapse of our economy? You blame it on the poor, minorities and unions. Want to get rid of ATF and the new Consumer Financial Protection Agency? You simply block the appointment of the agencies’ directors. Want to make President Obama a one-term president? You block virtually every job creating initiative then tell people that his economic policies have failed.

The load of B.S. coming from Teapublicans would fertilize every planet in our solar system.  And it’s growing by the minute.

How do they get away with such blatant, provably false claims? They count on creating anger and mistrust in government. They count on people who are uninformed or misinformed (in other words, Fox News viewers). They count on voters who won’t take the little bit of time needed to research their outrageous claims.

Will their lies work again in 2012? How informed are you? How about your friends and neighbors?

The Continuing Destruction Of Our Two-Party System.

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Destroy limits on corporate political donations – check. Marginalize President Obama – check. Block Democratic presidential appointments – check. Block all attempts to improve the economy – check. Destroy ACORN – check. De-fund Planned Parenthood – in progress. Destroy labor unions – in progress. Suppress minority voters in key swing states – in progress. Destroy confidence in mainstream media – check. De-fund Public Broadcasting – in progress. Destroy the Environmental Protection Agency – in progress. Destroy confidence in government – check.

I will probably be dismissed as a leftist conspiracy crackpot for writing this. But if you think these things are unrelated, you’re wrong. More than 40 years ago, right wing Republicans along with conservative Christians set out to change the political landscape. They pushed moderate politicians from their party, labeling them RINOS (Republicans In Name Only). They attacked the media for daring to publish any story counter to their beliefs then eliminated the Fairness Doctrine to allow right wing media to lie as much as they want.

They focused on judicial appointments to replace moderate “activist” judges with conservative “activist” judges. Evangelist “Christian” Pat Robertson prayed (or should it be spelled preyed) for the death of moderate Supreme Court justices so George W. Bush could appoint “true” conservatives. They even attacked science for daring to teach such “leftist” ideas as evolution and climate change.

As a result, politics in this country have undergone a dramatic shift to the extreme right. Many traditional Republicans have switched parties or left politics altogether. Many moderate Democrats are former Republicans. And traditional Democrats are relegated to the Progressive Caucus and dismissed as extreme lefties.

In many states, thanks to the 2010 census and lack of Democratic voter turnout in 2010, Teapublican legislatures are hard at work gerrymandering congressional and legislative districts to benefit their candidates. But the most disturbing development of the Conservative/Religious alliance is the current attempt to suppress minority votes.

In 38 states (particularly swing states), Teapublicans are busy pushing bills to eliminate “voter fraud” by demanding photo IDs for voters. Nevermind that confirmed instances of voter fraud are virtually non-existant. In some states, it’s estimated as many as 50 percent of minority and elderly voters do not have driver’s licenses. Many of those people will find it difficult to obtain photo IDs. So Teapublicans are hoping that they won’t make the effort. And who will it help to suppress minority votes? Certainly not President Obama.

Our two party system and, as a result, our middle class have never been more at risk. If you think that’s accidental or the product of circumstances, think again.