Showing posts with label the one percent. Show all posts
Showing posts with label the one percent. Show all posts

Wednesday, March 15, 2017

You make HOW MUCH??


When I look at the issues that have our country tied in knots today, it seems to me that every single one can be traced straight back to income inequality.  Its beginning predates Citizens United (the court ruling allowing unlimited political contributions by corporations), it didn't get this way overnight, and we won't get out of it with just a few new Executive Orders.  It's WAY more complicated than that.

Without doubt my all-time favorite corporate CEO was Herb Kelleher, the (now retired) Chairman of Southwest Airlines.  His business model was simple:  "Take care of your people first, your customers second, and your stockholders last."  If you take care of your people first, they will be happy and give impeccable, smiling service to your customers.  Happy customers will come back time and again, ultimately giving your stockholders a handsome return.  Win-win-win.  While the airline industry has been in constant turmoil for years, with bankruptcies, mergers, and layoffs common, Southwest has had an unbroken string of profitable years with no layoffs, ever.



That's Herb in the red shirt with some of his ramp employees, and the photo was not staged.  He would on a daily basis walk around and greet his people, swap a quick joke, do some back-slapping (the ladies got a kiss on the cheek....times were different then!), and just in general tell them how much he appreciated them....and they worked their asses off for him!

In 1965 the average CEO made 20-times as much as his average employee.  By 2015 the average CEO made 303-times as much as his average employee.  (source:  Fortune magazine) 

Here's where I'm going with this:  While most airline CEO's of the day were making handsome 7-figure salaries, Herb kept his salary at around $350K (?) per year.  He was seen by his people as well paid, but still with his feet on the ground.  He made sure that ALL Southwest employees received yearly profit sharing, real health insurance, a generous 401K, and stock options.  (That's where Herb made his very sizeable fortune.)  If the company made money, so did he, and his model worked....there was never an unprofitable year.

This is critical....right after 9/11, when planes were flying virtually empty and other airlines were laying off as fast as they could, top executives at SWA said they would work without pay until the crisis was over, while their employees were never asked for any wage concessions.  THAT'S how you show solidarity with your people!  (As I recall, American Airlines was at the time cutting employee pay, all while they were quietly giving generous bonuses to upper management.  The rank-and-file found out about it and the s__t hit the fan!)

Today we have a dangerous divide between workers and the "One Percent".  The upper class has never had it so good, while the middle class is actually shrinking.  Their inflation-adjusted income has been stagnant for 25 years.  Too many don't have health insurance, or if they do, they can't afford the deductibles.  Large companies are generally not expanding here, and many are moving operations overseas.  Employees are scared.  Small companies are where new jobs are being created today, but many of those have modest or even no benefits.

Too many of our new jobs that we use to pump up our high employment figures are low-paying positions.  Part-time or contract workers are popular because they allow companies to skirt offering benefits, among other things.  Workers feel estranged from their bosses, and bosses can't empathize with their workers.  Distrust and hostility is the norm.  This income inequality/attitude now permeates how our country operates from top to bottom, and it's unhealthy.

I'm not looking for some sort of instant Robin Hood "rob from the rich/give to the poor" income redistribution scheme, for that, too, would cause resentment.  But our rigged tax laws and subsidies and sweetheart breaks for the rich need to be reversed.  We all need to be on a level playing field, where everyone feels like they're getting a fair shake.  

All I'm hearing from our leaders is promises.  The "haves" are trying to get even more for themselves by taking away what little the working class has left.  This is not good.  We should look to Herb Kelleher as an example of how we can ALL thrive if we pull in the same direction.

S


Friday, July 22, 2016

Well...THAT was interesting!


The Republican Convention 2016 is history.  Hurricane Trump has moved inland, the Lake Erie coast has been spared.  No riots, no attacks.  Now we just have to slog through the usual follow-on storms and the eventual cleanup.

What I took away, first of all, is that Donald Trump has a set of World-Class vocal chords.  I watched and heard him scream for 75 minutes during his acceptance speech.  Some say his screams were scary dark, that he dwelt on doom-and-gloom.  The media called it "midnight in America".  Others say he was just telling it like it is.  I heard a bit of both.

These are scary times.  Domestically, race relations are tense.  Many cities are potential powder kegs.  Too many cops have itchy trigger fingers.  Too many of our citizens need anger management.  The average Joe is falling behind.  He/she hasn't had a raise in 20 years (after inflation).  Too many good jobs have gone overseas.  

Too many educated young people with staggering student debt can't get a job commensurate with their smarts.  We're flipping far too many burgers.  Too few Ivory Tower dwellers pull too many strings and are too far removed from the country the rest of us have to live in.  Fact.  (Bernie and The Donald can have a lovefest on that one!)

Internationally, it's a pretty f__ked up world out there, and it gets more f__ked up every day.  Look at what's happening in previously stable, vibrant Turkey.  We have a tiger by the tail and we don't know how to turn loose of it.  Our attempt at "nation building" has NOT worked.  Fifteen years and a TRILLION dollars later, all we've managed to do is stir up a fire ant pile.  Islam has proven to be an apparently easy religion to subvert.  As one of the convention speakers pointed out, while only about 10% of the world's Muslims have any sympathy for Islamic terrorism, 10% of 1.6 billion Muslims is 160,000,000 potential bomb chuckers! 

The basic premise of Donald Trump's grievances are true.  The issue is, can he and he alone fix it?  Lemme think....*one nanosecond later*....NO!  Like all politicians, he's over-promising.  ISIS will not crawl back into its hole on January 20th.  Ronald Reagan might have backed down the Iranians back in 1980, but the Iranians were sane.  ISIS isn't.

The underlying racism that exists here at home can't just be legislated away.  Crime will not instantly vanish on inauguration day.  His wall isn't going to build itself.  American companies* aren't just going to put their greed aside and move production back here.  (I see a Trump Presidency as being an absolute gold mine for lobbyists!)

     *Is there such a thing as an "American company" any more?  IMO their loyalty seems to be to their money, not their country.

So if Donald Trump is just blowing smoke, does that mean that Hillary Clinton should have an easy time exposing him as a 21st Century Don Quixote?  I'm doubtful.  It will be difficult for her to say she can bring us the change (now where have we heard that before?) that will right all our wrongs.  Why?  Because SHE IS THE ESTABLISHMENTThe Establishment with the lowest approval rating in history.  Want proof?....look who the big financial interests are throwing their money at this election year.  They are the ones who have the most to lose if the status quo should implode.  

And as I've said forever (and you know I'm never wrong *wink*) Hillary has too many skeletons in her closet.  Too many people just don't like her.  There isn't enough lipstick....no, I won't go there.  Hillary will have her week, we'll hear her tell us how she'll fix things, and then it's up to us to choose.

Just to stir the pot a bit (more), have you looked at the Libertarian candidates?  The Libertarians are an odd mix....fiscally conservative like traditional Republicans, yet socially liberal like traditional Democrats.  Their poll numbers this year are up into double digits, very good for them.  They won't win this year, but they just might build themselves into a viable third party, one that might temper the other two some day.  Give them a look-see.

Enough of my bloviating.  Your feedback, either (politely) positive or negative, would be welcome.

S