Corporate Greed and Contempt for Employees: The New Virtues?
Chuck Sheketoff
Hail greed! That’s the message that Rep. Sal Esquivel recently sent out to his constituents.
In an email (PDF), Esquivel forwarded a political speech purportedly from the owner of a chain of tire and automotive shops to his employees. Attendance was mandatory, so the 157 full-time and about 30 part-time employees were forced to listen to the owner rant about the direction the country has taken under President Obama.
Esquivel wrote at the top of the email
“I felt [the speech] was such a good explanation of how each of us will be affected by the changes our governments — both state and national — are proposing or have already passed — that I wanted to forward it to each of you. I hope that it is helpful — clarifying any questions you may have and perhaps helping you answer questions for others.”
Actually, I do have some questions. At the outset, I’d like to know if Esquivel knows he’s been duped.
The speech that Esquivel warmly embraces is fiction and comes from right-wing blogger Neal Boortz. Boortz expresses some of the most vile hate and racism in the blogosphere, such as calling New Orleans residents “parasites” and claiming that a California fire started because "somebody not Mexican tried to use a weed eater." When he published the speech that Esquivel is encouraging people to read, Boortz noted it was about a fictitious small businessman, prefacing the speech with
“Transcript of remarks made by Leo Carrington (who doesn’t exist) to a mandatory meeting of all employees of Carrington Automotive Enterprises, Inc. (which doesn’t exist either) on August 17th, 2009 at the Royal Payne Hotel (a purely imaginary place) in Norfolk, Virginia (which does, in fact, exist).”
Another question for Esquivel: Do you really embrace the content of the speech, including the messages of greed and contempt for employees?
Put aside for the moment the idea that an employer would force some African American employees to sit through a speech with thinly veiled racism toward them (“I know a lot of you voted for President Obama. . . . You might have thought it would be cool to have a president who looks like you”).
Forget for a moment the many inaccuracies in the piece (there are so many that it’s not worth going through them).
The bottom line is that the speech is about a business owner telling his employees that he isn’t going to give up any of his $534,000 profit. If any new taxes are imposed, he’s going to hang on to his profit, stop expansion plans, not give pay raises, reduce pay and cut out year-end bonuses. (By the way, the fictitious business claims to be an S-corporation, so under Measure 67 it would pay just $150 in new business taxes.)
The fictitious owner is essentially saying that he’s keeping all his profits and taking out any new tax obligations on the employees without whom he would not be able to prosper.
“Class is now dismissed,” the owner says at the end.
Some lesson.
The owner is obviously not a “we’re in this together” (WITT) guy. He’s not even a “you’re on your own” (YOYO) guy. He’s “pure, insufferable greed” (a PIG).
And from the email Rep. Sal Esquivel sent, that’s just fine with one House Republican.
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Oct 30, '09
By sending this out, Esquivel shows himself to be firmly in the same camp as the fictitious business owner. This is exactly why the voters of HD-6 need to elect Lynn Howe as their next representative- the people of Medford deserve better. Lynn will actually represent everyone in her district, rather than just the select few who Esquivel chooses to associate himself with because they donate to his campaigns. Go, Lynn, Go!
Oct 30, '09
The owner is obviously not a “we’re in this together” (WITT) guy. He’s not even a “you’re on your own” (YOYO) guy. He’s “pure, insufferable greed” (a PIG).
No he isn't! HE DOESN'T EXIST!
BO has had a great week...first a story about teabaggers not showing up for an event, except the event was the following day and now an entire rant against a business owner who doesn't exist.
Can't you find real stories to support your POV anymore?
Oct 30, '09
mp97303 --- the PIG exists in the heart and mind of Sal Esquivel. I'd say you just don't get it, but I suspect you do.
Oct 30, '09
Posted by: Sick-of-mp397303 | Oct 30, 2009 7:59:56 PM
Lame at best. Are you ready for trick or treating tomorrow night?
The PIG exists in the heart and mind of Sal Esquivel
Oct 30, '09
There has been scholarly research done about most effective companies and workplaces.
Guess what--employers who treat their employees as resources are more productive and effective than companies which treat their employees as costs.
The fictitious owner sounds like someone without an effective, productive workplace. He also sounds like someone who would have been happier to have been born a century ago when bosses were king and workers were treated like peons.
Oct 30, '09
how about the greedy selfish state govt who refuses to listen to anyone but their public employee union buddies mr sheketoff?got an answer on that?why dont you pick on them and demand they start listening more to us in the private sector?
Oct 31, '09
(BTW, Neal Boortz is most well known for being a long-time radio talk show host - not a 'right-wing blogger'... you can hear a replay of a portion of his syndicated Atlanta-based weekday morning program locally on KPAM 860 11p to 1a)
No, he's not a 'WITT' guy because 'they' wouldn't be. The fictitious business is evidently a sole proprietorship - the employees aren't taking or sharing any risk. In years where there were (or may be) little or no profits - or even losses, employees still collect their wages/salaries (he even says no layoffs or cuts in wages and benefits...) If the company went belly-up, the employees' life savings wouldn't be at risk nor would they be subject to bankruptcy liability, they'd just go find another job. I work for a large public corporation and even there I understand that if business expenses (including taxes) increase, it's going to impact pay raises or any year-end bonus I may receive. I wouldn't expect it to be any different in this case. Why are you expressing such surprise?
The 'speech' is a commentary - largely instructive satire... sure, the words are harsh to some ears but, any possible inaccuracies in numbers aside, the core ideas are much how it is (and has been forever) in the real business world. Risk/reward - wealth is earned, not 'distributed'...
Oct 31, '09
Leo Carrinton does exist for sure, I am he and he is me and we are all together in this grand experiement. As a business owner I can relate to Leo and I do view my employees as reources not peons. But if I'm forced by regulation to direct more money to the governments hands for redistribution to those that have no skin in the game then I would say the same thing. I can guarantee you that it will cost me more than $150.00 as one commentor suggested and if it's too heavy it will cost all of us everything. I will strive to protect the safety and security of my family first and foremost and secondly the enterprise which I created, that's a given. Unfortunately, if it becomes an entity that morphs into an effort that is too much of a liability, well then, my employees will have to create their own way to make a living because I'll shut it down. I can't and won't carry them on my back beacuse I'm forced to do so, slavery was abolished in the 1800's.
Oct 31, '09
Can't you find real stories to support your POV anymore?
Funny, I was asking that same question about Rep. Esquival.
Guess what--employers who treat their employees as resources are more productive and effective than companies which treat their employees as costs.
How about employers who treat employees as people? Or do any such companies exist any more?
Seems to me, the biggest problem with the Leo Carrington-type people is that THEY ARE IN THE WAY. I've been hearing them whine and puke and threaten to move away if taxed (presumably to that thriving economic utopia of Mississippi, since the other 48 states all have higher corporate tax tares than Oregon). And yet they're still here, standing in the way of the new generation of entrepreneurs eager to take their place and surpass them in innovation. Maybe they're all mouth because they know that if they took their ball and left, we wouldn't miss them as much as they think we would.
Oct 31, '09
Okay...I've read "Carrington"'s speech, and the names aren't the only thing fictional about it.
"Carrington" says his personal taxable income last year was $534,000. That's his net, after business deductions. But then he later says that advertising, new development, and other overhead is taken out of the $534,000, so that he's not really as wealthy as the government thinks he is.
That ain't true. If his net taxable income is $534,000, that means the several stores he owns likely brought in combined revenue (gross income) of over $2 million, from which advertising, rent, supplies, development, salaries and benefits to employees...all the overhead is deducted BEFORE the personal net taxable income of the owner is reached. My own small business grossed over $200,000 last year, of which less than $50K was my personal income. "Carrington" is right that business profit is not a high percent of business gross income, and that some business owners are not wealthy even with high gross incomes. However, if the PROFIT is $534,000, "Carrington" is very well off indeed.
He further says that he has to salt away part of that as a reserve against bad times. Most business owners do that. We put the bad-times fund in a relatively safe, liquid investment like a high yield money market account or a set of short-term laddered CDs, so that they make money for us personally, sometimes at a lower tax rate for capital gains while still being available if a cash infusion is needed for the business. Doesn't sound so bad when the full truth is pointed out.
"Carrington" prides himself on not providing health insurance to employees. What a guy! I would hope that, since he doesn't want businesses on the hook for providing coverage, he would be lobbying hard for a robust public option, or better yet, a single payer system, under which employers would not be required to provide coverage and uninsured employees would have someplace else to turn to. I'd be disappointed, but not surprised, if he was not.
Finally, he anticipates having his income go higher than a million dollars in the foreseeable future. By this he must, again, mean his NET income, since his gross, before deductions is already much higher. From this we can tell that his income, even if his taxes were DOUBLED, will be far, far higher under the Obama administration than they were under the Republicans. And also, if he is concerned about keeping his income under the new tax threshhold he dreads, the easiest way to do so would be to reward his best employees with well-deserved salary increases or contributions to a 401(k).
Oct 31, '09
LT is correct. Just look at COSTCO v Wal-Mart. Whereas Wal-mart has constant employee turnover, there are huge waiting lists to even be considered as part of the employee team at COSTCO. The Wall Street Journal noted this in an excellent article about 2 years ago. One has huge bills fighting continuous representation battles with UFCW, AFL-CIO and the other doesn't. One has huge brand loyalty while the other is mainly viewed as a purveyor of cheap goods. One is generally fought tooth and nail when they wish to build in a new area and the other is welcomed.
Oh, and this is not the first time Sal Esquival has blindly sent on something he or a staffer received via e-mail. He has been cautioned before about how to use snopes.
Oct 31, '09
Dear Admiral: are you married? Will you marry me despite my overweaning pride and windy ways?
Would you take an ill-tempered wench in hand and cause her to be a clear-thinking, dulcet-toned, adroitly-kind little bird?
Gee whiz - I'm yer fan.
Ex-Eugene Girl
Oct 31, '09
@rw: I'm afraid my spouse and kids would object, in a way that would reduce my taxable income far beyond any right wing pundit's fantasy-Democratic Government. But thank you, sincerely, for the offer...
11:08 a.m.
Oct 31, '09
The fact that Rep. Esquivel didn't know it was "fictional" is just sorta funny, like passing along a an message he received from Santa Claus and not realizing there is no Santa Claus.
The issue is that he supports the points made in, and the values expressed in, the message. It is one thing to pass along a message from Santa Claus urging kids to be good, it is quite another passing along a message from a fictional business owner extolling greed.
Oct 31, '09
Chuck, at last something we can agree on without conditions!
Esquival is a BONEHEAD.
Oct 31, '09
There's no Santa Claus!?
Don't just vote for Lynn Howe -- donate to support her campaign. She came close the last time, and she's ready to win this time.
I know Lynn -- she is a board member and honorary graduate of Emerge Oregon. Her commitment is clear. And in addition to being "not Sal" she stands for all the values I hold dear. Education, health care, functioning and fair economy and FAIR TAXES.
Oct 31, '09
Sal Esquivel is on Facebook. He has no fans.
5:04 p.m.
Oct 31, '09
Sal Esquivel does have fans...
8:31 p.m.
Oct 31, '09
I think that I will just buy my tires at Les Schwab. I sure would like to get serviced by a company that pays poorly, threatens employees and offers no health care. That way I will be sure to get great service. (yes I understand this is a fictional company.)
Oct 31, '09
... and Admire-able: you nicely overlooked my misspelling of overWEENING..... I'm not a babe any longer in any sense of this word, and so WEANing was perhaps a Freudian blip, but certainly probably more likely a perimenopausal SLIP of my not-so-gentle hands...
;)... well, I shall remain in my turret crooning crankily for a swain with a brain, a clear-thinkin' brain.
Best, Tin Rapunzel
Oct 31, '09
Hey John, if by "serviced" you mean screwed... :)... heh.
Oct 31, '09
This has always been the case. Bill Clinton did nothing to nip the trend in the bud, and, sandwiched between 41 and 43, it has become common policy.
It started with drug tests and mangement compensation not being tied to performance. For 30 years moderates have yawned. Now reap the wirlwind!
Nov 1, '09
“There is now a mass of people with real grievances who want answers but are not receiving them.
“The far-right is providing answers that are completely crazy: that rich liberals are giving their hard-earned money away to illegal immigrants and the shiftless poor.
“A common reaction in elite educated circles and much of the left is to ridicule the right-wing protesters, but that is a serious error.
“The correct reaction is to examine our own failures. The grievances are quite real and should be taken seriously.” (http://www.belfasttelegraph.co.uk/entertainment/belfast-festival/reviews/chomsky-why-far-right-must-be-challenged-14546372.html)
Nov 3, '09
Yet another example of how, since 2000, ever dirty GOP trick has become bread and butter Dem tactics. Used to be it was people like Ronald Reagan and Newt Gingerich, and John McCain and the GOP admeisters that used to make up "real people" to illustrate their points.
Al Gore made a lame attempt with Willie Horton, but he was at least real. Then he lost in 2000, and Dems adopted every Rep tactic, including this one.
You really don't get that you lose progressives, and you don't play the middle as well as the GOP, do you? Move the Dem base to narrow center, and you lose, every time.
It's been said before and I'll say it now. These measures had a good chance of passing. If they don't, you can credit BO, and Mr. S, in particular for daily becoming the bogey man these issues have been painted as.
I guess the title is more, "Greed and contempt for Employees: If its good enough for corp America, it's good enough for BO!" "The Democratic Party of America: Fostering Selfless Greed". You're talking about personality variables. Bet you my last thin dime that if you gave the full MMPI to megaCorp bosses and State government administrators that you couldn't separate the populations. Greed and contempt are endemic in America. It matters not how your organization is chartered.
Nov 3, '09
Posted by: rw | Oct 31, 2009 10:24:18 AM
Dear Admiral: are you married? Will you marry me despite my overweaning pride and windy ways?
Would you take an ill-tempered wench in hand and cause her to be a clear-thinking, dulcet-toned, adroitly-kind little bird?
I'm available and fit the job description!
Nov 12, '09
I like what LT says about companies who treat their employees as resources having better productivity... so true. I have been reading a very informative book titled, "Cancel Christmas" by Rocco Leonard Martino. He points out that Corporate America has the philosophy that “Greed is Good.” That is why I think there is so many problems at the present time. They should care ore for the needs and rights of the individuals.
Nov 17, '09
WOW...how convenient...the guy woke up making $534K!! No mention that he had to bust his ass to get there! Share? WTF happened to people earning what they make? If people chose to elect someone who wants to turn America into a 3rd world EU country....well sometimes you have to watch what you ask for...because you might get it! As the Govt whittles down that $534K`with 5% here and 8% there while piling on a bad economy that further decreases that number...that $534K is soon $300K. Now that is alot of money...but I don't call it greed...I call it a good businessman who is keeping people working during a bad time....and some liberal idiot wants to punish him for it! Not even at $300K...the business still requires a good chunk of that leftover $300K to maintain itself! Will the govt pay for upkeep of the properties, new capital equipment, computer network upgrades, etc? I guess you feel GM is a great example of letting the worker and the govt decide who best to run the business! F'n dumbass!
Nov 17, '09
Now hang on, ZaraEnthustra:
Remember, I'm bespeaking MY particular attributes there... are you saying that you too are as mentioned above? Imagine the terrible fights and even worse making up? Oy vey, maybe not.
Howsomever, if you are claiming to be the sort who can wizard a reasonably bright, awfully tendential sweetie-heart-screamy-face wench to tolerable politesse... hum.
Bring a flower and a drum and let's see all that.
;)
Nov 17, '09
Yes.