Archive for the ‘Capitalism & Corporations’ Category

Top (American) CEO pay equals 3,489 years for typical worker

Sunday, May 27th, 2012

WASHINGTON — David Simon of Simon Property received a pay package worth more than $137 million for last year, and the typical CEO took home $9.6 million, according to an analysis by The Associated Press.

Here are some ways to think about just how much money those salaries represent.

Simon’s $137 million is almost entirely in stock awards that could eventually be worth $132 million. The company said it wanted to make sure Simon wasn’t lured to another company.

HOW LONG IT TAKES OTHERS TO MAKE THAT MUCH: A minimum wage worker — paid $7.25 per hour, as some workers at Simon malls are — would have to work one month shy of 9,096 years to make what Simon made last year. A person making the national median salary, $39,312 by AP calculations, would have to work 3,489 years.

BY THE HOUR: Assuming Simon worked a 60-hour week, his pay was $43,963.64 per hour, or $732.73 per minute. To put that in perspective, the minimum-wage worker would have to labor for nearly three years to make what Simon earns in an hour. The average U.S. worker makes slightly less in one year than Simon makes in an hour.

COMPARED WITH AMERICA’S CEO: Simon makes about 342 times the $400,000 annual salary of President Barack Obama. In fact, if you add the salaries of Obama, Vice President Joe Biden, the Cabinet, the Supreme Court justices, all the members of the Senate and House of Representatives and all 50 governors, it is less than $110 million, so Simon makes well more than government’s top 600 leaders. In the past 100 years, U.S. taxpayers have paid a total of $80.6 million, adjusted for inflation, to presidents from Woodrow Wilson to Obama.

The median CEO salary of $9.587 million:

HOW LONG IT TAKES OTHERS TO MAKE THAT MUCH: A minimum wage worker would have to work 636 years to make that much. A person making the national average salary would have to work 244 years to make the median CEO salary.

BY THE HOUR: If you assume the CEO works a 60-hour week, the pay comes to $3,072.84 per hour, or $51.21 per minute. To put that in perspective, the minimum wage worker would have to labor more than 10 weeks to make what the median CEO earns in an hour. It would take the average U.S. worker nearly a month to make what the average CEO makes in an hour.

COMPARED WITH AMERICA’S CEO: The CEO who made the median salary took in 12 times the total $789,674 in gross income that President Obama reported last year. But it is less than half the $20.9 million in income that presumptive Republican nominee Mitt Romney reported in his tax filing.

– To the original article…

 

An Open Letter to the World

Sunday, May 20th, 2012

– Sad news from Canada where the conservative Harper government is decimating science.

– Dennis 

= = = = = = = = = = = = = = =

Dear Everyone,

My name is Naomi. I am Canadian. I worked for Environment Canada, our federal environmental department, for several years before our current Conservative leadership (under Stephen Harper) began decimating environmentalism in Canada. I, along with thousands and thousands of federal science employees lost any hope of future work. Their attitude towards the environment is ‘screw research that contradicts the economic growth, particularly of the oil sands’. They have openly and officially denigrated anyone that supports the environment and opposes big-money oil profit as ‘radicals’ (http://tinyurl.com/7wwf8dp).

Every day in Canada, new information about their vendetta on science and the environment becomes quietly public and keeps piling up. I have been privy to much first-hand information still because I retain friendships with my ex-colleagues (though my blood pressure hates me for it).

While I was working there, scientists were effectively muzzled from speaking to the media without prior confirmation with Harper’s media team (http://tinyurl.com/7bnsqp4) – usually denied, and when allowed, totally controlled. Scientists were threatened with job loss if they said anything in an interview that was not exactly what the media team had told them to say. This happened in 2008. The public didn’t find out for years.

During one of my contracts, I was manager of a large, public database set. Contact information for all database managers was available for anyone. I knew what was going on with the information and could answer questions immediately and personally. During this time, I noticed that a media team from Quebec started asking me “What would I say” to certain questions. I answered unwittingly. After a certain period of time, I noticed that all contact information had been removed from the internet –eliminating the opportunity for a citizen to inquire directly about these public data sets without contacting the media team. The Conservatives effectively removed another board from the bridge between science and the public, and I had inadvertently helped.

Since then, the Conservative government has been laying off thousands and thousands of full-fledged scientists that have been performing research for decades (http://tinyurl.com/8xtkaro), shutting down entire divisions and radically decimating environmental protection and stewardship in a matter of a couple years.

I am afraid for my country. Canada is the second largest land mass in the world – though our population is small, you can be sure that when a country that encompasses 7% of the world’s land mass, and has the largest coastline in the world says “screw it” to environmental protection, there will be massive global repercussions.

The Conservative leadership have admitted to shutting down environmental research groups on climate change because “they didn’t like the results” (http://tinyurl.com/7kpqk7d), are decimating the Species at Risk Act (our national equivalent of the IUCN Red list), are decimating habitat protection for fisheries, are getting rid of one of the most important water research facilities in the world (Experimental Lakes Area – has been operational since 1968, and allows for long-term ecosystem studies [http://tinyurl.com/cdygbdk] ), are getting rid of almost all scientists that study contaminants in the environment, have backed out of the Kyoto protocol – and the list goes on and on and on.

Entire divisions of scientific research are being eliminated. Our land, our animals, our plants, our environment are losing all the protection that has been building for decades – a contradictory stance to the rest of the world. (Please see their proposed omni-bill that basically tells the environment to go screw itself, while also being presented in an undemocratic fashion that limits debate on any of the 70+ changes [http://tinyurl.com/89ys2nf]).

David Schindler, a professor from the University of Alberta (and founder of ELA) quoted. “I think we have a government that considers science an inconvenience.”

I am writing this to implore every single person to please – look into this subject, and help us, help ourselves. Contact your MP, the Fisheries minister, Stephen Harper, anyone, everyone. I can’t sit by and just post rants on my Facebook page anymore. Share this letter, discuss, anything. Canada is an important nation environmentally, and our leadership doesn’t give a fig for science or the environment. But we do. This Conservative minority leadership was voted in on a thin string in the lowest voter election turnout in recent history, but thanks to our ridiculous voting laws, have 100% full power to do whatever they want. And in the name of short-term monetary oil profit, they have realized that science and the environments is a threat to their goals, and are doing everything possible to eliminate both.

We are depressed, and frustrated, and mad, and need all the help we can get to protect the value of science and our environment. In the age of globalization, intentional stone-age evilness is going to affect everyone. We share our waters, air, and cycles with all of you. Science IS a candle in the dark, and we cannot let greed extinguish that flame. What happens in Canada – will happen everywhere.

Thank you.

Sincerely,

A Canadian that cares about science and the environment

– To the original post over on uncloaked 

A Monstrous Proposal

Wednesday, May 9th, 2012

– This idea from, George Monbiot, makes deep sense to me.  He calls it monstrous but he’s tongue-in-cheek. The only entities likely to complain are the corporations.   This would go some ways towards pulling their fangs.

-Dennis

– – – – – – – – – – – – – – – –

Why the private sector should be subject to freedom of information laws.

By George Monbiot, published in the Guardian 8th May 2012

Modern government could be interpreted as a device for projecting corporate power. Since the 1980s, in Britain, the US and other nations, the primary mission of governments has been to grant their sponsors in the private sector ever greater access to public money and public life.

There are several means by which they do so: the privatisation and outsourcing of public services, the stuffing of public committees with corporate executives(1), the reshaping of laws and regulations to favour big business. In the UK, the Health and Social Care Act extends the corporate domain in ways unimaginable even five years ago.

With these increasing powers come diminishing obligations. Through repeated cycles of deregulation, governments release big business from its duty of care towards both people and the planet. While citizens are subject to ever more control – as the state extends surveillance and restricts our freedom to protest and assemble(2,3) – companies are subject to ever less.

In this column I will make a proposal which sounds, at first, monstrous, but which I hope to persuade you is both reasonable and necessary: that freedom of information laws should be extended to the private sector.

The very idea of a corporation is made possible only by a blurring of the distinction between private and public. Limited liability socialises the risks which would otherwise be carried by a company’s owners and directors, exempting them from the costs of the debts they incur or the disasters they cause. The bail-outs introduced us to an extreme form of this exemption: men like Fred Goodwin and Matt Ridley are left in peace to count their money while everyone else must pay for their mistakes(4).

So I am asking only for the exercise of that long-standing Conservative maxim: no rights without responsibilities. If you benefit from limited liability, the public should be permitted to scrutinise your business.

– More …  

 

 

Why increasing corporate control of our world is bad

Tuesday, May 8th, 2012

“According to the competitive exclusion principle, if a reinforcing feedback loop rewards the winner of a competition with the means to win further competitions, the result will be the elimination of all but a few competitors.”

For he that hath, to him shall be given: and he that hath not, from him shall be taken even that which he hath.  – Mark 4:25

From Thinking in Systems – a primer by Donella H. Meadows

American Health Insurance … revisited

Wednesday, April 18th, 2012

– We’ve been here before, readers.   But I feel like I need to revisit the subject again for the edification and amazement of my U.S. readers.

– I just bought New Zealand Health Insurance to cover myself when I’m in the USA for 78 days from July 8th to September 23rd this year.

– Cost in New Zealand dollars was $386.55 which is currently about $302.00 in U.S. dollars.

– And this policy is much more than just simple healthcare coverage.   It’s also travel insurance for lost baggage, the consequences of cancelled flights and other things.  

– If I was to get seriously sick in the USA (a potentially very expensive thing to do), the New Zealand insurance folks will fly me home to New Zealand on their dime and I’ll be treated here.

– When I was still in the U.S., married and running a business, we paid each about $425.00 a month for our medical coverage.   There was a $2500 deductible on the policy so we had to spend that amount each up front before we ever got a dime back from the insurance company for medical expenses.   And, even then, when they did begin to pay, it was only 80% of our costs.

– So, in the U.S., I had to play $20.82 per day (see Note 1) to get 80% coverage and with this New Zealand policy, which is covering me on the other side of the planet, I’m paying $3.87 per day (see Note 2) for 100% coverage.   Interesting, eh?

– Some months ago, I had a small heart attack here in New Zealand.   You can read about it here:    

– The long and the short of it is I went to an emergency clinic, I had a ride in an ambulance, I spent two nights in the hospital, I had an angioplasty and I had a stent inserted into one of my coronary arteries.   My total cost was less than $200 dollars ($164.00 U.S.).

– Many in the U.S. have a hard time believing that the country has been so thoroughly captured by corporations.   And many still believe the country is a fully functional representative democracy.  But both assumptions are seriously flawed.  

– The outrageously high cost of medical care in the U.S. is because enormous profits are being taken from the system by the medical corporations.  

– And our representative democracy has been deeply corrupted by big money.  Money that pays to keep the country’s laws arranged so that the looting can continue.

– Don’t believe it?   Then ask yourself how the richest country in the world is also the only major western democracy in which this sort of stuff goes on?

– Dennis

—————————–

Note 1 – that’s $425/month * 12 = $5100.00/year and if I divide that by 365, it is $13.97/day.  But then in order to get any thing paid to me, I also have to spend the $2500 deductible which is another $6.85/day so the total I have to spend per day in the U.S. to get to the 80% coverage point is $13.97 + $6.85 = $20.82/day.

Note 2 – I’m paying $302.00 (in U.S. dollars) for 78 days so I’m paying $3.87/day to get to the 100% coverage point.

Housing NZ head questioned over trips

Wednesday, April 4th, 2012

– This is the kind of insider trash that goes on in the U.S. all the time.  I.e., folks work in the government agency that regulates an industry, they meet with folks from that industry, they get cosy with them, then new laws, favorable to the industry, are passed and then the individuals involved leave government service and end up on the boards of the industries they previously regulated.

– I would have hoped that New Zealand was smarter than this but this story would indicate not.

– Dennis

= = = = = = = = = = = = = = = =

Two former senior Housing New Zealand executives went on a $35,000 trip to visit a software company in Britain just months before both quit Housing NZ and set up a private company which went into partnership with the same software company.

Labour housing spokeswoman Annette King yesterday questioned Housing NZ chief executive Lesley McTurk about a trip to London and Canada in June 2011 by Stephen McArthur and Roy Baker. The two were senior executives at Housing NZ who left soon afterward to set up their own consultancy firm, Tinakori.

The trip to London was for a conference held by Northgate – a software company Housing NZ has contracted for a major part of an $80 million IT upgrade. Northgate is now also a partner for Tinakori which was set up in February this year. Mr McArthur left HNZ in August 2011 and Mr Baker left in December 2011. Both are now directors of Tinakori.

Mr McArthur was the chief operating officer of Housing New Zealand and Mr Baker was the chief financial officer – both had significant roles in the IT project’s development.

Ms King asked Ms McTurk if she was aware the pair intended to leave Housing NZ when she approved the travel costs and whether there were questions about conflicts of interest.

Ms McTurk said she had no knowledge at that point that they planned to leave and believed it was appropriate the pair went to the conference given their role with the IT upgrade.

– to the original story…

 

Corrupt call center workers selling your private information for pennies

Thursday, March 22nd, 2012

– Could it be another excellent reason to reconsider the rush to offshore everything?    Or is the profit gained by off shoring simply outweigh any of the negatives that accrue to your customers?

– Dennis

= = = = = = = = = = = = = = =

According to the Daily Mail an undercover investigation in India has uncovered that some call center workers have been selling confidential information on nearly 500,000 Britons.

Undercover reporters from The Sunday Times met with two IT workers who claimed to be IT workers who offered to provide them with 45 different types of data gathered from the victims.

Information offered up included names, addresses, phone numbers and credit card details (including CCV/CVV codes and expiration dates).

The reporters allege they could purchase the records for as little as 2 pence apiece ($0.03 USD). One of the IT workersthieves bragged:

"These [pieces of data] are ones that have been sold to somebody already. This is Barclays, this is Halifax, this is Lloyds TSB. We’ve been dealing so long we can tell the bank by just the card number."

They claimed to information on mortgages, loans, insurance policies, mobile phone contracts and television subscriptions. Much of the information was “fresh”, or less than 72 hours old.

– More…

 

Obama tries again to end oil subsidies

Sunday, March 18th, 2012

– The profit levels of the big oil companies are obscene but no one has the political will in Washington to remove their obviously unnecessary subsidies.   Can there be any doubt that the U.S.’s political processes are controlled by big money from behind the scenes?

– Dennis

= = = = = = = = = = =

President Barack Obama is calling anew on Congress to end tax subsidies for the oil and gas industry, saying America needs to develop alternative sources of energy in the face of rising petrol prices.

Obama said in his weekly radio and internet address that he expected Congress to consider in the next few weeks halting US$4 billion ($4.85 billion) in tax subsidies, something he hasn’t been able to get through Congress throughout his presidency.

The vote would put lawmakers on record about whether they “stand up for oil companies” or “stand up for the American people. They can either place their bets on a fossil fuel from the last century or they can place their bets on America’s future”, Obama said.

Industry officials and many Republicans in Congress have argued that cutting the tax breaks would lead to higher petrol prices, raising costs on oil companies and affecting their investments in exploration and production.

The measure is considered a long shot in Congress, given that Obama couldn’t end the subsidies when Democrats controlled Congress earlier in his term.

– More…

 

To the Chinese and the Indians go … the spoils of war

Sunday, March 18th, 2012

– Ah, where did all those billions spent on Afghanistan go and what were they for?   So the Chinese and others could come in and reap the mineral wealth of the country and the Afghan women could be returned to the Taliban for another round of fundamentalist abuse.   Beautiful work USA.

– Dennis

– – – – – – – – – – – – – – – – – – – – –

The money and blood pit that is Afghanistan – where the United States and Britain have spent more than 2100 lives and £302 billion ($580 billion) – is about to pay a dividend.

But it won’t be going to the countries which have made this considerable sacrifice. The contracts to open up Afghanistan’s mineral and fossil-fuel wealth, and to build the railways that will transport it out of the country, are being won or pursued by China, India, Iran, and Russia.

The potentially lucrative task of exploiting Afghanistan’s immense mineral wealth – estimated to be worth around £2 trillion, according to the Kabul Government – is only in the early stages. But already China and India in particular are doing deals and beginning work.

Facilities already established are being protected by local army and police, part of whose funding, and most of whose training, has been a US/British responsibility.

– More…

 

The Middle Class Really Is in a Three-Decade Slump

Thursday, March 15th, 2012

– I’ve heard/read this before; that the average working man in the USA has seen what he/she can buy with their wages drop year by year ever since the mid-70’s.    Where might all that money be going?   Ask the 1%.

– Dennis

= = = = = = = = = = = = = = =

Did middle-class incomes really decouple from overall economic growth in the mid-’70s? If you look at median family income vs. GDP per capita, the answer is yes. From 1950 through 1975, both grew at about the same rate. After that, median family income grew quite a bit more slowly than GDP per capita.

But wait! You need to make sure to calculate inflation the same way for both measures. And maybe GDP per capita is a bad measure. Plus you need to account for health insurance and other benefits when you calculate median income. And the number of people per household has changed over time. These are all legitimate issues. So Lane Kenworthy redrew the chart to compare apples to apples: median household income vs. average household income. Medianincome shows only the movement of households that are smack in the middle of the middle class, while average income is similar to overall economic growth since it depends on total national income.

In the chart below, the black lines are the original comparison. The red lines are the new comparison. As you can see, there’s really not much difference. “Decoupling,” say Kenworthy, “is real and sizable.” The rich really are hoovering up a much bigger share of national income than they used to. The only thing left to argue about is why, not whether.

– To the article and its charts…