American Capitalism: short term gain and screw the future

My one major complaint about American style capitalism or a better term would be corporatism, is the need for short term gain at the expense of the future. Corporations and their lackeys in the Congress seem to bend over backward to protect profits but ignore the consequences of that short sightedness. Take for example the comments made by Rep Jim Jordan (R-OH4) and Marathon Petroleum Co. President Gary Heminger on Thursday to the Findlay Courier concerning the proposed carbon cap and trade program.

U.S. Rep. Jim Jordan and Marathon Petroleum Co. President Gary Heminger on Thursday said congressional Democrats’ plans to reduce carbon emissions would raise utility bills and kill jobs.

The hardship to the 4th District would be compounded by its large number of manufacturers, whose costs would climb. The Democrats’ plan would be a “job killer,” Jordan said.

“It takes a lot of energy to manufacture things,” he said. “We are a huge manufacturing district.”

A study by The Heritage Foundation, a public policy research institute, said the 4th Congressional District would be the fourth hardest hit in the nation.

Marathon employees also are vulnerable, Heminger said.

“I talk to our employees (and tell them) … ‘What this does, is, this is going to eliminate your job. It is not just an extra 50 cents, a dollar, whatever per gallon at the pump, and whatever the increment is in your electricity bill, or your natural gas bill,'” Heminger said. “‘But it is going to eliminate one of the largest industries in the country.'”

Marathon, Jordan warn about ‘job killer’ legislation

Yes, a carbon cap and trade program would force a change in how we do business. The change though is for a future long term benefit by leveling the playing field. The one obstacle to a clean energy economy is the cost. A cap and trade program would remove that obstacle.

Leveling the playing field by forcing fossil-fuel prices to reflect their true cost will spur a wave of clean-energy investment: research and development in new technologies, new factories to produce solar panels and wind turbines, and energy-efficiency retrofits of commercial and residential real estate. That means jobs, and lots of them. While some businesses that rely on dirty energy will be hurt, many others will thrive in the clean-energy economy.

Most carbon cap plans are set up to fail because they reward energy companies with permit giveaways and fail to compensate consumers for increased electricity bills. One such proposal hit the Senate floor last year, only to collapse under the weight of too much spending and not enough protection for the middle class. Obama’s cap-and-refund plan avoids these mistakes.

Obama’s Carbon Cap-and-Trade Plan Can Boost Growth

A clean energy economy would help reduce climate change, improve the health of the population, add to our national security by removing our dependence on foreign oil, and bring about greater technology investment.

We may have to buy electric cars that cost $40,000 but the technology is still pretty new. Heminger doesn’t seem to be aware of Moore’s law in the computer industry and that would happen in the electric car industry as we move forward. Five or six years ago I had to spend about $20 for a compact florescent light bulb, now you can buy them for less than $10. When consumer VCRs came on the market you had to spend thousands of dollars now you can buy one for less than $20 – if you can find one.

We must change our energy policy and get rid of the dirty fuel. I would much rather do it now while the transition costs are relatively low then be forced to do it through some major crisis like the melting of the ice caps or cut off of foreign oil when it will cost us all much more.

There really are two Americas

While writing about the current economic melt down, I’ve mentioned that the douchebags on Wall Street that ran the economy into the ground operated under different rules than what we regular Americans do. The fact that the bankers want the taxpayer to pay for their toxic assets for a value more than the paper they are written on should be a clue. Columnist David Sirota points out even a more obvious example and one that seems to have removed the rose colored glasses from the masses, who have acted like they’ve never noticed this before. His column talks about the foundation of business – the contract.

Last month, the same government that says it “cannot just abrogate” executives’ bonus contracts used its leverage to cancel unions’ wage contracts. As The Wall Street Journal reported, federal loans to GM and Chrysler were made contingent on those manufacturers shredding their existing labor pacts and “extract(ing) financial concessions from workers.” In other words, our government asks us to believe that it possesses total authority to adjust contracts at car companies it lends to, and yet has zero power to modify contracts at financial firms it owns. This, even though the latter set of covenants might be easily abolished.

A government of men, not laws

That’s right. Contracts to pay bonuses to the douchebags who ran the economy into the ground were off limits while there is nothing wrong in throwing out labor contracts as a condition for automakers to get a loan.

Sirota also mentioned this double standard applied to mortgages:

Congressional Republicans have long supported the laws letting bankruptcy courts annul mortgage contracts for vacation homes. Those statutes help the shower-before-work clique at least retain their beachside villas, no matter how many of their speculative Ponzi schemes go bad. But for those who shower after work, it’s Adams-esque bromides against “absolving borrowers of their personal responsibility,” as the GOP announced it will oppose legislation permitting bankruptcy judges to revise mortgage contracts for primary residences.

It was equally unfunny when some talking head on CNBC recently noted that you couldn’t get anyone to run the financial industry for less than $250,000 a year. He forgot that the ones making that cash didn’t do a good job of it either. That’s why they are trying to snooker us into a bad deal on those toxic assets.

Death, Narcissism, and Celebrity

This past week three famous people died. Two were film actors and the third was a person who was only famous because they had been on a reality TV show. I have never understood the general obsession people have with celebrities, especially the celebrities who are famous for nothing more than being one. I have known people and seen people who are so into themselves that they want to be famous but I have never understood why. What I do know is the obsession with celebrity is not healthy and not discriminating in this obsession is even worse. It can get plain silly at times.

I remember when I was kid delivering newspapers. On my route was this one house where they worshiped Elvis. There was every kind of Elvis item in the known universe both inside and outside the house. They also had a mini-alter in their car. I thought that was overdoing it.

This past week showed what happens when that house with the Elvis shrine gets blown up in the media.

Ron Silver and Natasha Richardson passed away. Silver was a good character actor who could move effortlessly between drama and comedy. Richardson came from a family of great actors in the UK and she carried on the family ability. Her passing was due to a tragic accident and I did feel bad for her family just as I did for Silver’s friends and family.

The third celebrity to pass away was well known in the UK for appearing on a reality TV show. She died from cancer which is never a good way to die since it is causes such pain and suffering. The reaction to her death, however was on par to the one when Silver and Richardson passed, which just didn’t seem right to me.

The prime minister said he was “deeply saddened” by the news.

“The whole country has admired her determination to provide a bright future for her children.

“She will be remembered fondly by all who knew her and her family can be extremely proud of the work she has done to raise awareness of cervical cancer, which will benefit thousands of women across the UK.”

PM leads tributes to Jade Goody

This was the same woman who caused a fire storm when she was on the reality show that made her famous by making nasty racist comments about another “player”. Yes, the woman’s death was tragic but the Prime Minister gave a statement? That’s like if President Obama gave a statement of condolences if the Naked Cowboy had passed away.

But Doug, what about the media frenzy when that guy landed the plane in the Hudson River.

You see, I think there is at least 3 levels of celebrity.

Level 1 are those people who pay their dues through some skill or job that is mainly for public consumption. For them fame comes to them for doing a good job. These people are actors, writers, sports figures etc…..

Level 2 are those people where they happen to be in the right time and right place and fame happens. They aren’t seeking it and after a period of time it fades. The pilot who landed in the Hudson is one of these people. The soldiers who raised the flag on Iwo Jima during World War II are others of this level.

Level 3 are people who have really nothing to offer in defense of their fame other than the media focusing on them for whatever reason. They haven’t worked and paid dues to earn it. They seek it out or play along with it or think they deserve it. Paris Hilton comes to mind as does the woman who died in the UK I mentioned earlier. Some other recent ones are a majority of the people who tried out for American Idol and won’t accept they have no real talent. Samuel Joseph Wurzelbacher (aka Joe The Plumber) is another of this level.

There is nothing wrong with being famous per se. If you want it and work for it and it comes to you – great. If you take short cuts or think you deserve it then there is a problem. I think we have way too much of this media created celebrity.

I was one of four or five people who spoke at my high school graduation and in my speech I remember having a bit where I said you might see my picture on the back of a bestseller I write. At the time I did think I would write a bestseller and be famous. I have never thought that I deserved it and have not really worked hard enough to do it, so that idea is less likely to happen than it was twenty years ago when I made the statement.

Do we really need to spend time wondering if some level 3 celebrity is or is not on drugs or might be married or whatever happens to normal non-famous people.

If you think it is important then you may need to reconsider your priorities because as Bill Murray said in the film “Meatballs” – It just doesn’t matter.

It really doesn’t.

As I said I admired the work of Ron Silver and Natasha Richardson, but never once did I think their passing was on the same level as if one of my family had passed away.

That wouldn’t be healthy.

Unions and free choice

A current issue being debated in Congress is about the Employee Free Choice Act (EFCA) which would allow workers who want to form a union to decide if they want a secret ballot election or to accept union representation just based on a majority of signatures gathered. The debate has brought out the usual arguments both for and against unions and in some cases the people against EFCA simply mislead in their arguments. One such anti EFCA effort was expressed on the editorial pages of my boyhood hometown newspaper The Findlay Courier. It made me write a letter to the editor.

The editorial starts out:

An election would happen only if union organizers submitted cards from fewer than 50 percent of company workers. But unions know they lose most elections under such circumstances. Several have stated that their policy now is to seek an election only when 65-75 percent of workers have signed a card.

Un-free choice

Yes, Unions do lose elections even after getting more than 50% of cards signed. Why would that be? I mean if the person signed a card and then voted against a union in an election, what would make them change their mind?

Too many people have been brainwashed by the focus on mobbed up unions back in the day like the Teamsters even though the mob was driven out because of the work of FBI investigations and resulting prosecutions.

Yes, Unions are only as good as its leadership and like all organizations it can be stuffed with people on power trips but a majority of Unions do work for the members and do what they are intended to do – protect the worker from arbitrary actions of an employer.

From my experience the reason most people vote against a Union is after heavy intimidation by management. How would you feel if your boss told you that if a Union was voted in, that you would lose your job. People barely existing from paycheck to paycheck end up backing down because of fear.

As I said in my letter, my mom tried to unionize a place she worked at for several years. As much as her coworkers complained about unfair wages and dangerous working conditions – when elections came up they were too scared to risk their jobs for a Union. It happened time and time again. Her coworkers would complain, a Union would come in gathering signatures, the company would get nasty, the workers would back down. It was a vicious cycle.

The truth is you can lose your job whether you have a Union or not. Most employers include a clause in employment applications that you can lose your job for any reason. It’s called “at-will” employment for a reason. The company could decide one day “Tom we need to let you go. Sorry…” and that would be it. There is no law requiring them to have a reason. As long as they weren’t stupid enough to make it look like they were doing it for racial, gender, or age reasons they can do it and there is no recourse for you at all.

A Union helps in getting a contract with an employer for certain wage and working conditions – it can’t prevent an employer from closing down or laying off people. At least with a Union if a job loss happens, the contract has provisions to help ease the damage. Also Union contracts allow for a certain progressive discipline and grievance procedures that a non-union shop doesn’t have to have. The Union’s job is to enforce the contract.

Union contracts are a compromise between the workers and management. While the company agrees to certain work rules, the Union allows the company to decide who to hire – for example. One place I worked at used temporary employees during peak business periods. The Union contract allowed this but also had a clause that if the workers worked more than certain number of total hours they had be made permanent. Also this contract wouldn’t let a worker officially join the Union unless they had been there at least 2 years. A Union contract, for most unionized places, is unique to that business.

Another misleading argument from the editorial:

Most significantly, it would almost certainly result in job losses. How far can employers be pushed, especially in the current economy, before they fall, or give up, or move to Mexico or China? There are companies that, if “card check” passes, will simply shut down any of their facilities that unionize this way.

Just as Unions fight and get pay raises and other expanded benefits during the good times, they have also given back some benefits in order to save the employer. Rarely has a Union refused to renegotiate a contract if the contract might lead to a business closing. The UAW just gave back a lot during the current economic melt down effecting the auto makers. The Union representing Cooper Tire workers in Findlay gave back some previous gains so the company would keep the Findlay plant open.

What most people seem to forget is that Unions are always asked first to give back even while management doesn’t give up anything in return. Again no matter the Union status, companies have closed or moved production out of the country.

Unions are there to protect workers and they would be insane if they didn’t make an effort to help a struggling company where possible. Again management isn’t a victim. They have to agree to all contracts or there is a strike so when they agree to the expanded contracts during the good times they are a willing party. They can always walk away.

A Courier reader commented about my letter and expressed another false argument about Unions. They wondered why they are forced to join a Union and complained their freedom not be in one is being taken away when a Union comes in.

There are 22 states that are Right-to-work states where you can’t be forced to join a Union or pay dues but are still covered any Union contract.

I agree you should have the freedom to join or not, the Union should also have the option not cover you under the contract. Since federal law prohibits a Union from doing that then Right-to-work laws are unfair. Is it really ok to get the benefit of a contract without paying for it through joining the Union or paying dues?

Here is the full text of my March 18th letter to the editor as published:

Employers harass pro-union workers

The March 12 Courier editorial, “Un-free choice,” about the Employee Free Choice Act currently being considered in Congress, was misleading.

Currently, if employees wish to form a union they have to gain signatures of at least 50 percent of their workmates and then have a secret ballot election a month or so later. In that time between the collecting of the cards and the election, management hires a consulting firm to help them scare employees into voting against a union, harassing the organizers, and looking the other way when there are illegal activities to keep a union out.

Letters to employee homes, postings on bulletin boards, and face-to-face meetings are used to threaten anyone who votes for a union. Employees are told the place will be shut down or layoffs may happen. They are told that union organizers are crooks who will steal their union dues and don’t work for the employees, etc. Organizers at work are constantly watched, and any infraction, real or made up, is documented and used to fire them or to get them to quit.

If you don’t think that happens, then you don’t have farther to look then the efforts to unionize Consolidated Biscuit in McComb. My mother tried at least three times to unionize the place in the late 1980s before she was fired. Her case went through the NLRB process for a couple of years, and like all legal cases the company wore her out and she dropped the case so she could collect her pension.

EFCA would allow the workers a choice to avoid an election so it would lessen the thuggery management is allowed to do now. I support each side being given the chance to convince workers of their position, but the current laws and rules favor management and allow them to lie and intimidate without fear of punishment. EFCA would include stronger penalties for such actions.

Forcing arbitration would lessen another stalling tactic management uses to keep out a union by not bargaining in good faith, just to drag out negotiations as long as possible.

Having or not having a union doesn’t prevent a business from moving jobs or closing plants. Just ask Cooper Tire.

Douglas Berger