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One Less Company....
I lament the days that have quickly fallen by the wayside of the old-time family business, which was owned and funded by one man--or two or three--who had started the business way back when. As he grew too old to run it, he passed it on to a family member. These people prided themselves on their company, its quality, its service and its employees.
These businesses either have been swallowed by huge conglomerates or driven out by other mega businesses. Now rather than one or two funding a business, we have investors who fund the business with their stock purchases. Investors are scattered hither and yon with no vested concern for the welfare of the business or its employees. Their one and only concern is that it show a profit.
To accomplish this they hired managers at 1000 times what the average "Joe" slaving in the armpit of humanity was earning. They then promised these CEO's and CFO's percentages of the profits as further incentives. However, soon, these guys wised up and began demanding that it be put in their contracts that they receive these huge bonuses whether the company turned a profit or not. They also added another stipulation--monster "umbrella" packages in the millions to "tide them over" should they be fired.
The managers, sitting in their $20,000 offices furnished at company expense slashed wages, cut the work force, demanded more work and more hours from their employees 'lucky' enough to still have a job; and, in general, did not give a flying flip whether the company or company service suffered so long as it improved the bottom line, if only for the short term.
If that didn't work, they shut the plant down and moved it to Mexico, India, China or some other place where they could hire unskilled labor at ridiculous prices, further undermining our economy and the dollar. These workers could also manufacture without the constraints of consumer protection, shipping products often tainted with lead paint or, in the case of dog food, with actual additives that killed the animals.
That, my friends, is why civilized countries around the world who are trying to operate under a free market society are in big time trouble.
But, hey! We've still got our holidays, so let's enjoy them while we still can.
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I do agree with you, Brian, that often the owners are bedazzled by the dollar signs and choose to sell out. That is sad, because it is perpetrating the very thing that I think is ruining this country...the demise of the individually owned company in place of the huge conglomerate who, as you say, must answer to the investors whose ONLY interest is ROI at the cost of ANYTHING. |
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So do I! |
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Oh, I just love the way you did this post, the "tone" of the piece. Very clever. |
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Well, thank you for those nice words. I'm happy you found it clever and interesting. |
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I did too Joan...every paragraph as I read, my head didnt stop nodding in agreement. You hit the nail right on the head and although there are exceptions to everything as Brian pointed out....these exceptional businesses are so miniscule they dont add very much to the overall picture...which is exactly as you have written. Great post...as always. |
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me too, and I couldn't agree more!!! |
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Thanks, Maria. It is such a simple thing but it has had worldwide repercussions in terms of effect on the free market system. |
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Thank you, Charlie |
You know, it's funny when you make your case to most conservatives/republicans and you don't directly say the problem is this failed concept of "free market" global capitalism, which frankly is a race to the bottom for America, and you just say what needs to be done. They will agree. Half the time they will agree, but soon as you say free trade is what is doing this, free trade is what is inflating the trade deficits or bringing the immigrants here in mass, it's instant shutdown. They keep voting for the clown that says it, and keep saying "the markets correct themselves" without the slightest consideration that those markets are under the manipulation of non-correcting greedy Politics over everything to some. Rape, employment, economy, health care. everything. And their supporters don't care...they love it. Screw the gangraped (figuratively You might enjoy this debate I watched the other day, on rather we are "sacrificing the middle class to get cheap goods from China". |
people...
), screw the workers, screw the people. |
It really is a "race to the bottom" and it just upsets me so much to see it happening because of greed and stupidity. |
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Well said! Greed has driven boards of directors, and shareholders, and directors/owners/principals of businesses into such short-minded thinking, it's a wonder all the long-standing businesses are in the dust heap. Somebody better wake up before they are. I think government regulations have been far too weak. Short-term rewards don't yield long-term sustainability. |
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We absolutely MUST get government regulations back in place, and we also have to find a way to keep business in America. |
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I'm afraid you are in need of "people's revolution" to turn the tide backwards SWG... Then, if this happens, the question will be "Who is honest enough and incorruptible by power to take over?" |
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Good point. The outsourcing of so many businesses overseas has really hurt the American economy and put a lot of people out of work. |
The companies themselves should restrict the bonuses if the company does not show a reasonable profit. That is what well-managed companies do. I will use an example where my daughter works, because she has been offered a better position with a competing company and will leaving this business Nov. 3. This company is Caterpillar, a Fortune 50 company and one of the largest in the world. When the recession hit, Caterpillar offered compensation packages to people who would take early retirement and also told them they would not restrict their employment at a competing factory if they quit. They also froze all salaries and eliminated all bonuses for 2008. Consequently, they are still in the black in spite of the recession.