About Wanderings

Each week I will post my current syndicated newspaper column that focuses upon social issues, the media, pop culture and whatever might be interesting that week. During the week, I'll also post comments (a few words to a few paragraphs) about issues in the news. These are informal postings. Check out http://www.facebook.com/walterbrasch And, please go to http://www.greeleyandstone.com/ to learn about my latest book.



Showing posts with label corporate profits. Show all posts
Showing posts with label corporate profits. Show all posts

Friday, August 7, 2015

Their Cheatin’ Souls: Short Circuiting Ethics in America



by Walter Brasch
     
      New England Patriots quarterback Tom Brady says he had nothing to do with having air removed from game balls.
      The NFL, following an investigation, says he did. It gave him a four game suspension, which he is appealing. That four game suspension could cost him somewhere between $2 million and $4 million of his $14 million 2015 salary. If he plays well with others, doesn’t get into any more trouble, and injuries and retirement don’t stop his career before he becomes 40 years old in 2017, he will earn $31 million for the 2016 and 2017 seasons.
      The NFL also fined the Patriots $1 million and required the team to forfeit its first round draft pick next year and 4th round pick the year after.
      Of course, Brady also forfeited his cell phone. Before it and its 10,000 messages could be confiscated in the investigation, he destroyed it and got a new phone. Multi-millionaires can do that.
      But, the issue here is not so much Brady or the Patriots. It’s an endemic problem of cheating.
      In school, children spend more time learning how to avoid learning than they do learning subject matter. This can be by looking over someone else’s shoulder during a test or copying information from an online story for a paper.
      By the time they get to college, their ways of evading knowledge becomes more refined. They can use their grants and loans to buy term papers written by others. On tests, they can flash hand signals to a buddy two rows away or secretly text each other for answers. They can wear baseball caps to hide their wandering eyes. They can even buy copies of the tests. Some professors give the same tests every year, and fraternities and sororities assist their brothers and sisters by having a current test bank of knowledge. There are hundreds of ways to cheat, and even the best professors don’t know all of them.
      And then the students graduate, their resumés floating into corporate headquarters, like parade confetti. Most of these capsulized on paper lives are fluff and puff.
      Although most workers don’t cheat, there’s enough who do.     
      Eleven teachers in Atlanta were convicted this year of racketeering for changing student answers on standardized tests to make overall scores higher. An Atlanta Journal–Constitution investigation reported about 180 teachers and administrators probably changed student scores; 35 of them were indicted, with 23 accepting plea bargains; 12 went to trial and only one of them was found not guilty.
      The reason there was cheating by the adults, who probably didn’t “notice” when the children openly cheated, was money-based. Scores that flatlined each year or went down from the year before would have led to less funds. Higher scores led to increased budgets, which led to increased teacher merit pay. The superintendent of schools herself was accused of being the gang leader; her motivation may have been not just to make her district look good but to receive the bonuses for increased student performance. Unfortunately, teacher cheating isn’t confined to Atlanta, nor is cheating only a part of the educational system.
      In factories, short cuts lead to products with defects. In some cases, corporate management knows there are defects but ignores the consequences, figuring that the cost of recalls and lawsuits is still less than the profits. In corporate language this is known as “mitigation.” It sounds so much better than “greed.”
      Wall Street and financial institution greed and lies, combined with a serious lack of enforcement by government regulatory agencies, led to the nation’s great recession, which began the last couple of years of the Bush-Cheney administration. Trying to justify why they short-circuited ethics and the law, many of the guilty whined that they were in a high-pressure job to perform, that others did it, that they thought it was all part of the corporate culture; the whine that if they were ethical, they wouldn’t make as much money as expected, and probably wouldn’t be promoted or possibly fired for not meeting production goals.
      Some politicians also cheat. In their case, the cheating could be by accepting gifts from lobbyists or making promises that no one believes will be kept. But, for politicians, the cheating is often to get campaign funds and benefits that might help grease a re-election, which will lead to an even further need to cross ethical lines.
      You don’t have to be a corporate executive, go-go stock manipulator, politician, or even a student to cheat. Just fill out your yearly IRS 1040. Just as there are hundreds of ways students cheat, there are hundreds of ways taxpayers and corporations can cheat on taxes, with the average taxpayer believing it is perfectly acceptable to try to keep as much of every dollar earned as possible. Thus, fudging deductions and under-reporting income have become routine in many households. The IRS believes unreported income—which can be a few hundred dollars in restaurant tips or “under the table” job income to a few hundred thousand dollars stashed in a Cayman Islands bank—could be more than $4 billion a year.
      Of course, cheating may be beneficial to others—if spouses didn’t cheat, the entire country music industry could fall.
      Nevertheless, If Tom Brady did cheat in deflategate—and we’re not saying he did—he was just a part of a culture that is slowly losing its ethics and values in order to get results.

     [Dr. Brasch is a journalist/social activist, and the author of 20 books. His latest book is Fracking America, an overall look at the process, effects, and numerous social issues of horizontal fracturing.]

Friday, July 11, 2014

Passing Gas to the Consumer



by Walter Brasch

      Gas prices at the pump during the July 4th extended weekend were the highest they have been in six years. This, of course, has little to do with supply-and-demand economics. It has everything to do with supply-and-gouge profits.
    Over the past decade, the five largest oil companies have earned more than $1 trillion in profits. Last year, the Big Five—BP, Chevron, ConocoPhillips, Exxon Mobil, and Shell—earned about $93 billion in profits. Their CEOs last year earned an average of about $20 million. Included within the profits is $2.4 billion in taxpayer subsidies because it’s hard to make a living when your hourly wage, assuming you work every hour of every day, is only $2,283.
    “We have been subsidizing oil companies for a century. That’s long enough,” President Obama said more than a year ago. The Senate disagreed. Forty-three Republicans and four Democrats blocked the elimination of subsidies. Although the final vote was 51–47 to end the subsidies, a simple majority was not enough because the Republicans threatened a filibuster that would have required 60 votes to pass the bill. A Think Progress financial analysis revealed that the 47 senators who voted to continue subsidies received almost $23.6 million in career contributions from the oil and gas industry. In contrast, the 51 senators who had voted to repeal the subsidies received only about $5.9 million.
      For a couple of decades, the oil industry blamed the Arabs for not pumping enough oil to export to the United States. But when the Arab oil cartel (of which the major U.S. oil companies have limited partnerships) decided to pump more oil, the Americans had to look elsewhere for their excuses. In rapid succession, they blamed Mexico, England, the Bermuda Triangle, polar bears who were lying about climate change so they could get more ice for their diet drinks, and infertile dinosaurs.
      This year, the oil companies blamed ISIS, a recently-formed terroristic fringe group composed primarily of Sunni Muslims, who have opposed Shia Muslims for more than 14 centuries. Think of the Protestant–Catholic wars in Ireland. Because ISIS was laying a path of destruction through Iraq, the oil companies found it convenient to declare that oil shipments were threatened, and then raise prices, salivating at their good fortune that terrorists had come to their financial assistance during the Summer holidays.
      However, because the oil companies have laid a thick propaganda shield upon the America people to make them believe that fracking the environment and destroying public health, while yielding only temporary job growth, will lead to less dependence upon the Arab nations and lower costs to Americans, the Industry has to come up with some excuses to drill the taxpayers.
      Through deft journalistic intrigue and a lifetime of investigative reporting, I was able to obtain insider information from the ultra secret Gas and Oil Unified Greedy Excuse Maker sub-committee (GOUGEM). I have not been able to verify the transcript, but in the developing tradition of 21st century journalism, that doesn’t really matter.

      “We have a problem,” declared the GOUGEM Grand Caliph “We have run out of excuses. Last year, we had to find excuses not only for the Summer vacations, but also to justify our surreptitious funding of the Benghazi investigation.”
      “There must be a hundred different ways to nail Obama for this year’s increase,” declared the Sunoco representative.
      “What if we claim that Obamacare caused gas prices to go up for ambulances,” said a newly-appointed representative from the Hess Corp.
      “Tried it last year, but we couldn’t get much traction,” said the Grand Caliph. “Only Fox, Limbaugh, and some guy broadcasting through a tin cup from his room at Bellevue picked it up.”
      “Afghanistan!”  shouted the Marathon representative. “We’ve gotten good mileage from blaming the war for the cost of gas.”
      “Yeah,” said the Tesoro rep sarcastically, “while we’ve been reaping enough excessive profits to build a water park at every one of our executives’ McMansions. I’m afraid the American people after 13 years have finally caught on to that scam.”
      “If not Iraq and Afghanistan,” how about a new war? We invade Switzerland,” the ConocoPhillips rep suggested, “and claim we’re protecting the world from weapons of mass Swiss Army Knives. Every Republican and a few Democrats will back us on that.”
      “It only works if there’s oil in Switzerland,” said the Shell rep, “and since we haven’t developed the technology to frack the Matterhorn, we’ll have to find another reason to raise gas prices.”
      The BP rep suggested that the oil companies claim gas price increases were necessary because the price of Dawn detergent, used to clean oil-slicked marine mammals, went up.
      The Chevron  rep said they could blame the Treasury Department for their underhanded tactics in locating the companies’ tax-free stash in the Caymans.  “How could anyone complain about us needing more income to pay our lawyers?” she declared.
      The Valero rep wanted to blame the Veterans Administration. “We say we had to wait so long to get permission to raise gas prices that we had to do it ourselves,” he brightly said, and tagged that suggestion with the explanation that the companies could then claim they were being self-sufficient and not dependent upon the government. “The conservatives will love us,” he righteously declared.
       After a few moments of idle chatter, something committees have perfected, the Exxon Mobil rep spoke up. “We don’t need an excuse.”
      “You been inhaling too many fumes?” the Shell rep asked.
      “Slip on a grease spot in one of your garages?” asked the Murphy Oil rep.
      “We’ve always had an excuse,” the Shell rep whined. “Without an excuse, the motorist might not buy our gas.”
      “Oh, they’ll buy,” said the Exxon Mobil rep confidently. “We’ve bought out and eliminated most of the alternative fuel sources, public transportation is in the pits, and no one walks. That leaves cars, and they all run on what we decide they run on.”
      “So what’s your point?” asked the BP representative.
      “It’s as simple as 1-2-3,” the Exxon representative stated. “One. We’re Big Business. Two. We’ve already bought the Republican-controlled Congress. Three. We don’t need to justify anything.”
      By unanimous agreement, the gas bag cartel declared there would be a 10-cent a gallon hike by the end of Summer—and no excuse.
      [Dr. Brasch’s latest books are the critically-acclaimed Before the First Snow, a journalistic novel; and Fracking Pennsylvania, an in-depth investigation of the health, environmental, economic, and political effects of horizontal fracturing.]



Friday, May 11, 2012

Mission Impossible: Finding a Minivan Made in America by Union Workers



by Walter Brasch

Last year, not one of the 491,687 new minivans sold in the United States was made in America by unionized workers.
            Some were manufactured overseas by companies owned by non-American manufacturers. The Kia Sedona, with 24,047 sales, was built in South Korea, Russia, and the Philippines. The MAZDA5, with 19,155 sales, was built in China, Japan, and Taiwan.
            Some minivans from Japanese companies were built in the U.S., but by non-unionized workers. Honda sold 107,068 Odysseys built in Alabama. Toyota Siennas, built in Indiana, went to 111,429 persons. The Nissan Quest, built in Ohio, had 12,199 sales.
            Only three minivans were built by unionized workers, but they were made in Canada by members of the Canadian Auto Workers. The Dodge Grand Caravan, with 110,996 sales; Chrysler Town & Country, with 94,320 sales; and the VW Routan, with 12,473 sales, all share the same basic body; most differences are cosmetic. GM and Ford no longer produce minivans.
            The United Auto Workers (UAW) suggests that members who wish to buy minivans buy one of the three Chrysler products because much of the parts are manufactured in the United States by UAW members.
At one time, all cars, trucks, and vans from GM, Ford, and Chrysler were produced by union workers in the U.S. or Canada. The Dodge Avenger and Chrysler 200 Sedan both have about 80 percent of all parts produced in the U.S. For many cars built in the U.S., the number of parts produced in North America may be only 50-75 percent. The Japanese-owned Mitsubishi Eclipse, Spyder, and Galant, and the Mazda6 are produced in the U.S. under UAW contracts; neither company makes minivans. However, the “Big 3” have been building cars in other countries. Ford, which had strong profits the past year, has closed U.S. manufacturing plants, and cut its U.S. workforce by about half in the past five years. Only about 40 percent of its worldwide workforce is now in the U.S. Many of the cars and the F-series pick-up trucks are being built in Mexico. GM is building cars in South Korea and Brazil, with wages nearly comparable to those in the U.S. However, wages are significantly lower for its workers in China, Mexico, India, and Russia. About 300,000 Chryslers and 200,000 Dodge trucks are built in Mexico.
All vehicles produced in the U.S. have the first Vehicle Identification Number (VIN) as a 1, 4, or 5; vehicles produced in Canada have a 2 as the first VIN number.
            Founded in 1935, the UAW quickly established a reputation for creating the first cost-of-living allowances (COLAs) and employer-paid health care programs. It helped pioneer pensions, supplementary unemployment benefits, and paid vacations.
It has been at the forefront of social and economic justice issues; Walter Reuther, its legendary president between 1946 and his death in 1970, marched side-by-side with Martin Luther King Jr. and Cesar Chavez, and helped assure that the UAW was one of the first unions to allow minorities into membership and to integrate the workforce. Bob King, its current president, a lawyer, was arrested for civil disobedience, carrying on the tradition of the social conscience that has identified the union and its leadership.
.           The UAW doesn’t mind that corporations make profits; it does care when some of the profit is at the expense of the worker, for without a competent and secure work force, there would be no profit. When the economy failed under the Bush–Cheney administration, and the auto manufacturers were struggling, the UAW recognized it was necessary for the workers to take pay cuts and make other concessions for the companies to survive.
But not all corporations have the social conscience that the UAW and the “Big 3” auto manufacturers developed. For decades, American corporations have learned that to “maximize profits,” “improve the bottom line,” and “give strength to shareholder stakes” they could downsize their workforce and ship manufacturing throughout the world. Our companies have outsourced almost every form of tech support, as well as credit card assistance, to vendors whose employees speak varying degrees of English, but tell us their names are George, Barry, or Miriam. Clothing, toys, and just about anything bought by Americans could be made overseas by children working in abject conditions; their parents might make a few cents more, and in certain countries would be thrilled to earn less than half the U.S. minimum wage.
Americans go along with this because they think they are getting their products cheaper. What they don’t want to see is the working conditions of those who are employed by companies that are sub-contractors to the mega-conglomerates of American enterprise. These would be the same companies whose executives earn seven and eight-figure salaries and benefits, while millions are unemployed.
But, Americans don’t care. After all, we’re getting less expensive products, even if what we buy is cheaply made because overseas managers, encouraged by American corporate executives, lower the quality of materials and demand even more work from their employees.
            Walk into almost every department store and Big Box store, and it’s a struggle to find clothes, house supplies, and entertainment media made in America. If you do find American-made products, they are probably produced in “right-to-work” states that think unionized labor is a Communist-conspiracy to destroy the free enterprise system of the right to make obscene profits at the expense of the working class.
            We can wave flags and tell everyone how much more patriotic we are than them, but we still can’t buy a minivan made in America by unionized workers—even when the price is lower than that of the non-unionized competition.

            [Sales figures of minivans is from Edmunds.com. Also assisting were Rosemary Brasch and Michael Fox. Walter Brasch’s latest book is the critically-acclaimed novel Before the First Snow, which looks at the mass media, social justice, and the labor movement. The book is available from amazon, local bookstores, and http://www.greeleyandstone.com in both hard copy or an ebook.]