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Robber Barons in the New Gilded Age
Published Saturday, July 11, 1998

"When the capitalists are all to be hanged, they will vie among themselves for the contract for the rope." That old quote doesn’t paint a flattering picture of capitalism, but neither does this one:

"Capitalism is the astounding belief that the most wickedest of men will do the most wickedest of things for the greatest good of everyone." -- Keynes

Or this one, from a President you know:  "Money, and not morality, is the principle of commerce and commercial nations." -- Jefferson

Money? Not morality? Exactly. The terms "good" and "bad" don’t apply to an economic system. Capitalism (like democracy) is sometimes called "the worst system, except for all the others." So, like most Americans, I’m a fan of capitalism and I wouldn’t advocate abandoning it.

However, I warn you, this is the New Gilded Age -- the era of rapacious, excessive, corrosive capitalism. Unless we recognize that, and take action, the oft-vaunted free market will become a marketplace without choices, and your workplace (if you still have a job) will remain a bastion of corporate fascism. What troubles me most is that corporations lie a lot.

When a corporation is about to mar your life to satisfy its epic greed, it uses "feel-good" TV commercials or news sound bites to put a good spin on the story -- whether it’s laying off 40,000 workers or recalling 25,000,000 pounds of ground beef. Fortunately, you and I can read between the lines. Here are some recent offerings:

  • Microsoft. Bill Gates is an ill-used, misunderstood software merchant. He doesn’t want Windows to be the only operating system, or Internet Explorer to be the only web browser. He doesn’t want to own the internet.
  • A&T/TCI merger. This marriage will offer "improved service" and "wider choices." AT&T denies years of gimmicks and come-ons with no real reduction in rates. TCI denies having too few channels, too many shopping channels, and rates that rise faster than inflation. Like Microsoft, AT&T denies wanting to own the communication pipeline.
  • Nike. Nike makes shoes offshore to "remain competitive" and "increase efficiency." It denies paying people ten cents an hour to make $175.00 shoes. (By the way, if Nike were so efficient, you’d be buying their shoes for $9.95 by now. Of course, if you were a laid-off shoemaker, you wouldn’t be buying any shoes at all.)
  • Any bank merger. Banks merge to give you "choices, service, efficiency and competitiveness." How come after any bank merger, we have fewer banks in the neighborhood to choose from?
  • Any layoff. Corporations have "staff reductions" to "improve productivity." They deny they will lay us off (or close a whole division) in an instant if it improves the bottom line. Corporations regard workers as a "cost factor," to be reduced or eliminated whenever possible.

And what do you get out of this? Oddly enough, you frequently pay more, not less, for goods and services. However, a company making an extra dollar might pass a five-cent dividend to your retirement plan after giving the CEO a big bonus and paying off politicians.

Not a pretty picture, but what can we do about it? A lot. Capitalism is an inherently brutal system, so big corporations will understand when you respond with brutal tactics. Use the marketplace to reward companies you like and ruin those you don’t. To have some great fun reshaping America, follow these simple rules:

  • Never be fooled by manipulative language. Know the code. Learn that "downsizing" really means "firing your butt, " and that "new" and "improved" don’t mean anything.
  • Boycott anything you don’t like. If you don’t like Recombinant Bovine Growth Hormone in your ice cream, buy another brand. If your bank merges, change banks.
  • Complain vigorously. You can use the 800 number on the package of practically every product, but for better effect, write a letter. You’d be amazed how many letters addressed to a company president get read by him or her.
  • Be a troublemaker. Write letters to regulatory agencies. It will trigger a cascade of problems at the company you name. Just start, "I am a 78-year-old retired lady. Is it OK to put rat parts and human fingers in canned soup?"

Mark Twain said, "What is the chief end of man? -- to get rich. In what way? -- dishonestly if we can; honestly if we must."

There’s been too much dishonesty. Let’s try honesty for a while.

Barry Schoenborn is a technical writer, and a ten-year resident of Nevada County. You can write to him at barry@wvswrite.com. The opinions of columnists are not necessarily those of The Union.

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