Archives For Corporations

Made in China - inscription on Red Rubber Stamp.In this age of electronic banking the way to shut down any organization is to go after their access to money. It looks like that is just what is currently happening with North Korea at least to an extent.

“We need to step up and target those financial institutions in Asia and beyond that are supporting the brutal and dangerous North Korean regime.”

When challenged by Royce about “a number of small banks” still doing business with North Korea and the need to choke off the country’s access to hard currency, Glaser replied: “That’s exactly what we are trying to do.”

Royce said he hoped a bipartisan bill he sponsored that would label North Korea “a primary money laundering concern” would be passed by the Senate this year….

The country’s main economic ties are with China and, according U.S. government reports, its tiny economy has supported itself with money-making scams ranging from counterfeiting $100 bills to illicit arms and drug sales.

SOURCE:  U.S. takes aim at North Korea’s remaining financial links – Yahoo News.

Being a simple guy I just can’t understand how we can give China so much power over our day-to-day lives when they support those who would love to see us annihilated from this earth. I don’t know about you but it seems everything I buy almost anywhere today comes with a “Made in China” tag. It is about time we started putting conditions on transferring our wealth to that country. Millions of good paying jobs have disappeared to be resurrected in mainland China at pennies on the dollar and the primary purpose is to provide more profits for their most often times very rich stockholders..

I know doing something about this problem will be a hard-sell for the Republicans in congress. They simply believe that what our corporations do to make their profits is their own business and the government should stay out of it. And again if Obama comes out for it they will naturally be adamantly against it whatever it is. I think this same thing would be happening no matter who the Democrat was that occupies the Oval Office. Its pure politics and it is getting uglier by the minute. But I am getting off topic here.

How can we allow China to help North Korea with their illegal schemes and not suffer any consequences?  Of course part of that reason, maybe the biggest part, is that we are already so deeply dependent on China that we simply can’t afford to confront them. If they for whatever reason decided to stop sending us the products they now make our economy would likely collapse. How did we get into this type of arrangement is of course because of greed. When a bigger profit can be made using Chinese labor at pennies per hour as opposed to dollars per hour for home-grown labor greed will go off-shore every time. But I kind of think that even those who made these decisions to move their production to China are surprised at the speed at which the total transformation occurred. They all seemed to rush there without really considering the consequences.  But then again greed has never been much of a forward-looking thing…

2014-10-30_08-32-58AT&T has completed upgrading its fiber-network in Austin, Texas, to 1-gigabit-per-second broadband speeds, the carrier said Monday.The Dallas-based company, which started the Austin upgrade in August, has been working to increase the speed of its U-Verse with GigaPower fiber network from 300 megabits-per-second to 1Gbps. AT&T is racing to bring faster Internet to customers before its competitors.

SOURCE:  AT&T finishes rollout of 1Gbps connection in Austin – CNET.

I am one of the fortunate ones along my road in that I am within the 1.5 mile distance from the AT&T central office. I can get my Internet connection at 0.003 Gbps. That is 300 times slower than folks in Austin get.  To put that in perspective what takes them one second to get takes me 5 minutes. Sadly those north of me are limited to 0.0002 Gbps.So when I run across these types of announcements I often say “SHAME ON YOU”.

We all know that in the 21st century information is power. Those with it have opportunity; those without it have almost none and of course the Internet and access to it is fundamental to the 21st century information age.  Why are those of us in less populated areas denied access to the Internet speeds that our urban neighbors take for granted? Of course the answer is profits.

I look out my front door and see a couple of two-inch diameter cables strewn between two poles across my front yard. In some places along my road these cables sag to just a few feet above the ground. They have not been improved in many decades. The picture above shows that both of those cables could be replaced by a single small fiber-optic line but to do that would require an investment that currently goes to the owners as profit.

Looking at the history of utilities in rural America I see where this is nothing new. It wasn’t until the 1930s that electricity or telephone was widely available to the farmers who provide the rest of us with food.  The New Deal of the 1930s would finally help remedy that situation via the REMC. Here is a little about that from my friends at Wikipedia:

Many such cooperatives exist in the rural United States, and were created by the New Deal to bring electric power and telephone service to rural areas, when the nearest investor-owned utility would not provide service, believing there would be insufficient revenue to justify the capital expenditures required. Many electric cooperatives have banded together to form their own wholesale power cooperatives, often called G&Ts for generation and transmission, to supply their member-owners with electricity.

If we had a functional government in place, instead of the gridlock that is there, maybe this issue could be resolved like it was then. I guess I should be grateful for my 0.003 Gbps Internet connection even though my city neighbors had connections three hundred times faster. At least my snail like speeds are several times faster than all my neighbors north of me.  It is about time for AT&T to spend a little money and put all of us on a fiber-optic system so that we all have a more or less level playing field for the future.  I thought that was the FCC’s mandate but if it is it is being totally ignored. Shame on AT&T for not having done so already…. And shame on the FCC for not having forced them to do it already….

2014-10-02_09-11-00Drug and medical-device companies paid at least $3.5 billion to U.S. physicians and teaching hospitals during the final five months of last year, according to the most comprehensive accounting so far of the financial ties that some critics say have compromised medical care….

Some doctors have earned tens of thousands of dollars annually from drug companies by flying to various cities to give paid speeches, while some surgeons have received even larger amounts from medical-device makers, partly from royalties on products they helped develop….

One former Senate staffer who was closely involved in the effort to pass the Sunshine Act hopes the database will do some good. “This website will let patients ask a very important question: ‘Is a relationship between my doctor and a drug company right for me?’ It took six years of hard work to get this site together and, hopefully, it will help clean up medicine,” said Paul Thacker, a former aide to Sen. Chuck Grassley (R-Iowa) who is now a fellow at the Safra Ethics Center at Harvard University. He said the “total amount of money is pretty eye popping.”

SOURCE:  Doctors net billions from drug firms – Yahoo Finance.

Doctors receiving $3.5 billion from the drug companies was a total surprise to me. I knew the drug companies pampered them hoping that they will prescribe their drug over their competitor’s but some of the instances reported in the source articles go way beyond an ethical boundary.

I find it totally astounding that it is illegal for the largest medical care company in the country to negotiate prices with the drug manufacturers. It is a well known fact that all other countries in the world get their pharmaceuticals at a deeply discounted price. Why must Medicare pay full price when everyone else can bargain for their needs? How many billions of dollars are needlessly spent to give these guys a golden apple?

They say Medicare will go broke in about twenty years or so. I wonder how far that would be extended if we could bargain with the drug companies? Getting back to the original thoughts about this article why  is it even legal for doctors to take all the bribes that apparently do from these guys. A doctor being paid $70,000+ to give a seminar in an exotic location and which no one attends is surely a grossly unethical situation. Doctors who are among the top ten most compensated profession makes enough without these bribes!

It will take a legislative branch similar to those during the Teddy Roosevelt administration to finally put an end to these types of practices. If we are serious about cutting our healthcare costs in this country the drug companies are the low hanging fruit to be first dealt with. If only our current gridlocked government would life up to their responsibilities and do the people’s business. It is as simple as that….

No More Whoppers For Me…

September 3, 2014

2014-08-26_08-36-25Burger King’s plan to scurry across the Canadian border to avoid U.S. taxes could be seen as the corporate equivalent of flipping President Barack Obama the bird….

“My sense is this is Burger King trying to dodge paying its taxes. I don’t know that I’d attribute it to their making a move like this to directly challenge Obama,” Frank Clemente, executive director of the nonprofit Americans for Tax Fairness, told The Huffington Post. “I can’t say what’s on the company’s mind here, whether they’re trying to beat the clock on this and do something before Congress passes legislation or do something before Obama signs an executive order.”

SOURCE:  Burger King Dares Obama To Stop It From Fleeing To Canada.

It irks me to see U.S. corporations declare bigger than ever profits and then shirk their tax responsibilities by moving out of the country.  As far as I am concerned Burger King might just as well move all their stores to as I will not be frequenting any of them in the future.  They can send me all the coupons they want but they will go immediately to the trash can.

Burger King is also known for paying no more than minimum wage to most of their store employees.  In my small town that results in huge turnover and low customer service. I’m sure the executive officers are well paid and like most others have figured a way to get their lavish bonuses year after year.

Goodbye Whooper…… We overthrew one king I guess we can do the same to this one…

Triangle Factory Fire…

August 19, 2014

The Triangle Factory Fire was a defining moment in US history. Here is a little about what Wikipedia says about it

2014-04-30_09-32-20The Triangle Shirtwaist Factory fire in Manhattan, New York City on March 25, 1911 was one of the deadliest industrial disasters in the history of the city, and resulted in the fourth highest loss of life from an industrial accident in U.S. history…

The fire caused the deaths of 146 garment workers – 123 women and 23 men [1] – who died from the fire, smoke inhalation, or falling or jumping to their deaths. Most of the victims were recent Jewish and Italian immigrant women aged sixteen to twenty-three…

Because the owners had locked the doors to the stairwells and exits – a common practice at the time to prevent pilferage and unauthorized breaks[6] – many of the workers who could not escape the burning building jumped from the eighth, ninth, and tenth floors to the streets below. The fire led to legislation requiring improved factory safety standards and helped spur the growth of the International Ladies’ Garment Workers’ Union, which fought for better working conditions for sweatshop workers.

I recently watched a very moving documentary about it on PBS. One of the shocking things I learned from that program was just how much the “system” was against the striking workers. The police, judges and city hall did monstrous things to beat the women back.  It would take J.P. Morgan’s  very privileged daughter to turn this trend. When she came out in favor of the workers things finally started to shift.

For those who might misunderstand the meanings of my words I want to state up front that I believe capitalism is the greatest monetary system in the world. Nothing else even comes close.  But this tragedy is a lesson learned that you just can’t have unregulated industrialization.  Without regulation greed overwhelms the capitalistic system. The owners who caused these unnecessary deaths took their insurance money and basically disappeared with no consequences for the deaths they caused.

I do thank God that these sort of things don’t happen in this country today but they continue to happen in those countries that supply us with our unquenchable desire for more and more cheap goods. We have current government agencies such as OSHA and although they are generally very understaffed compared to those they regulate they do a good job of reigning in unsafe corporate greed.

 

 

2014-08-03_11-10-40But the problem is we have structured our economy in this sort of death spirally way, where huge profitable organizations like Wal-Mart pay poverty wages to a million workers, and then taxpayers make up the difference in social services programs like food stamps and Medicaid and rent assistance, and so on and so forth.  It’s as morally repugnant as it is economically inefficient.

It’s a fact that Wal-Mart earned $27 billion in profit last year. They could afford to pay their bottom million workers $10,000 more a year, raise all of those people out of poverty, save tax payers billions of dollars, and still earn $17 billion in profit, right.

It’s simply nuts that we have allowed this to happen. And the only way you can change things is to raise the minimum wage. Certainly the people that run Wal-Mart will not do this on their own.  The idea that businesses will go out of business if they pay workers more is just not true, even though I understand the sort of visceral fear that some of them feel about this change.

SOURCE: Why capitalism has nothing to do with supply and demand | Making Sen$e | PBS NewsHour.

These quotes above drive home what I believe is a very basic reason our economy is still in the state that it is. We just give too much power to the most avid capitalists among us. In other words we give too much power to those few who control most of our nation’s wealth. I am a firm believer in the idea that government’s role in a democratic/capitalist society is to reign in the greed that naturally comes with capitalism.

Unions used to have some control over this wage vs established wealth issue but that is just no longer the case. As is typical of these sort of thing unions themselves became too powerful and as a result too self-focused and corrupt to continue to hold the influence they once had. Unfortunately there was nothing there to replace the void left by the extinction of unions so it is necessary for our government to step in. But even that is another tragic failure in this very disjointed country.

With the almost total breakdown of the ability to govern, especially at the national level, this dichotomy between wages and wealth has gone unabated for a couple of decades now. Our economy is almost totally based on consumer spending but if consumers are stripped of any sense of discretionary income it seems like that is a natural spiral that we will not escape from. The richest among us just don’t eat out 10,000 times a month to replace those who can no longer afford such luxury.

We depend on our government to reign in the excess of our capitalist system and that is just not happening in today’s world.