Corporate apocalypse: Feeding the hand that bites us

1920: The customer is always right.

2020: The stockholder is always right.

This ain’t your grandfather’s capitalism. The myth of American capitalism endures: If you have good ideas and work your ass off, you’ll get ahead. But the reality is very different: Instead of rewarding hard work and pursuing customer satisfaction, modern capitalism is designed to reward shareholders, and everyone else be damned.

Two things made this possible:

1. Corporations replaced small business as the dominant force in the nation’s economy.

2. Convenience replaced service as the most important element (along with price) in the consumer’s daily lives.

Convenience is king

As customers demand more convenience, business is motivated to provide it. But doing so requires technological advances that, in turn, require investment – often more investment than a small business can afford to make. It’s only natural (and sometimes, perhaps, essential) that such a business seek outside money to finance the necessary improvements.

The problem is that, once a business secures financial backers, it becomes responsible to them rather than its customers, much less its employees. Shareholders want a business to maximize profits and minimize expenses, regardless of the cost to worker morale, consumer service or even the company’s reputation. Just hire a glitzy PR firm and make some strategic donations to charity, and you can still look like a good guy even when you treat your employees and your customers like shit.

Andrew Carnegie used part of his fortune to create libraries, but does that make him a “good guy” when he earned that money by paying his employees a pittance and pushing them beyond their limits?

A return to the late-19th century world of Carnegie becomes easier when convenience and immediacy are valued more highly than quality and service.

When service doesn’t matter as much as convenience, the people who provide that service become expendable. When you pump gas yourself, you don’t need an attendant to do it for you. When you buy goods at self-service check stands, you don’t need cashiers anymore. When people demand news the moment it “breaks,” you don’t need copy editors to check for spelling or accuracy, you just need a program to make sure you’re online first.

The Matrix has you

But in demanding convenience, consumers have put themselves in a bind – and, in many cases, have cut off their collective nose to spite their face. How convenient is it, for instance, to navigate a phone tree, then wait on hold for an hour until the next customer service rep is free to take your call (or start all over again when you press the wrong button or you’re “accidentally” cut off)? How convenient is it to use one of those self-service check stands when the scanner keeps malfunctioning? Or to check the accuracy of a story via Snopes because journalism is done on the fly, rather than with care and precision?

Then there’s the identity theft that comes with using debit cards and computer programs vulnerable to hackers. Now that’s really convenient! (Note sarcasm.)

Here’s the rub: Convenience doesn’t always make life easier, at least not in the long run. It often just frees up more time for us to become busier, take on more commitments and, in the end, become more stressed out. We’ve devalued human interaction as consumers, and that interaction becomes the first thing we sacrifice in our personal lives when we start to feel overloaded. The result is a vicious circle of busyness and isolation.

We become, in a very real sense, dependent on – even addicted to – convenience and instant gratification. And, as with any addiction, the “highs” get less intense, the “lows” get lower, and the dependency grows stronger as time goes on.

Corporations know this and, as we become more dependent, they have less incentive to provide that high. Because. They. Have. Us. Hooked. Once they do, shareholder and consumer interests that once seemed aligned in the quest for convenience are no longer in sync. For corporations, convenience was always just a means to an end: maximizing profits for shareholders. Once it no longer serves that purpose, corporations will discard it like yesterday’s news.

Toxic capitalism

When’s the last time you stopped at a full-service gas station or were put directly through to a live operator willing and able to answer your questions? It’s probably been a while. That kind of service has largely gone by the wayside, and (in most places) you no longer have any option but to pump your own gas or navigate that phone tree. It all happened right under our noses, so gradually we barely noticed. But now, here we are, and we’re no turning back.

Once they’ve eliminated all our other options, corporations have no more incentive to provide service, convenience, low prices or anything else. The consumer becomes irrelevant, and only the shareholder matters. Instead of personal service, we get automated phone trees and overseas operators. Instead of quality, we get planned obsolescence. We were supposed to have learned this lesson more than a century ago, when monopolies were working employees to death (literally in some cases) and foisting off bogus “miracle cures” on consumers. But apparently, we’re going to have to learn it all over again.

Capitalism works well when it encourages competition; when it discourages it, it’s toxic.

Want evidence? What ever happened to Marshall Field’s or Rich’s or Filene’s or Jordan Marsh? They’re all Macy’s now. Every single one of them. In the 1960s, there were dozens of regional discount retailers; today, there’s Walmart. And Target.

As Facebook has all but cornered the market on social media access, has it become more flexible or more controlling? Have those controls become more in tune with the user or the shareholder? Since Facebook went public, its quest to maximize profits by allowing corporations access to personal profiles – and by looking the other way on Russian interference – has been widely publicized. But we still use it because most of our friends are there, not on Ello or MeWe. We’re addicted. We’re stuck.

Tainted government

The government, meanwhile, enables and accelerates this process. It’s no secret why this happens: The same corporations that have the money to invest in business have the money to lobby Capitol Hill – to their benefit, and to the detriment of their competitors.

Many of those competitors are small businesses, who then have little choice but to go public themselves so they can get money to pay for their own lobbyists.  

The 2018 tax cut is a great example of how this works. Whom did it benefit most? Small businesses that need help to compete or corporations that will use the advantages to consolidate their stranglehold and eliminate even more choices?

We know the answer to that question.

Before the trust-busters broke up Standard Oil’s monopoly at the dawn of the 20th century, cartoonists portrayed it as an octopus, with its tentacles wrapped around everything from the U.S. Capitol to statehouses to investors. Walmart, Amazon, Facebook, Google and others are on the brink of becoming today’s version of Standard Oil.

Customer service died decades ago. Convenience is on its last legs. Can a return to snake oil and sweatshops be far behind?

How Citizens United paved the way for Donald Trump

We went to sleep in Bedford Falls, and we’re waking up in Pottersville. A lot of us would rather go back to sleep.

For years, many of us have yearned for a leader who would “run the country like a business.” Well, we got what we wished for, but despite the shock of waking up more than a year ago with a six-times-bankrupt real estate mogul for a president, none of this happened overnight.

There are two kinds of businessmen. There are the old-school merchants who put the customer first, because the customer could always take his business elsewhere. Then there’s the new corporate model, which puts the shareholders first, because that’s where the real money is. Customers can’t nickel-and-dime you to death if you’ve got investors slipping millions into your back pocket at regular intervals.

There are, similarly, two approaches to government. The traditional approach — which made America great in the first place — puts the voter first. Officials are elected to represent their constituents, and if they don’t, those constituents can take their votes elsewhere. But under the new model, big-money donors come first, because they can control the conversation. Voters can’t elect you if they don't know who you are, and they can't kick you out of office if they don’t know you're robbing them blind.

Transformation

We’ve been morphing from the traditional form of government into a corporate model for some time: Ronald Reagan’s supply-side economics and the Ross Perot’s third-party candidacy were among the early signs of this progression. But the tipping point came in 2010, when the Citizens United decision opened the floodgates for corporate donors and blew the last vestiges of a fair playing field to smithereens.  

Once this model was firmly in place, its proponents thought they’d use it, along with the tool of Gerrymandering, to corner the market on public policy for the benefit of their corporate sponsors. One thing they hadn’t counted on, though, is an inconvenient aspect of corporate life: the hostile takeover.

That’s where Donald Trump came in. He knew the voters didn’t like the idea of corporate big wigs telling them what to do, so he tapped into that, presenting himself as an “outsider” who was ready to “drain the swamp” and take on the Washington elites: notably, the Clinton Democratic machine, but also Republican lawmakers like “Lyin’ Ted” Cruz and “Little” Marco Rubio.

“George, I am an old man, and most people hate me. But I don’t like them either so that makes it all even. ”

— Lionel Barrymore as Mr. Potter in "It’s a Wonderful Life"

Whatever you think of Trump, his takeover of the Republican Party was a masterstroke worthy of “corporate raider” Carl Icahn (who later served briefly in Trump’s administration as a special economic adviser). The Republican establishment, which had banked on corporate support from the Koch Brothers, Sheldon Adelson and their ilk, was nonplussed at the idea that someone outside their ranks turning the tables on them.

Cruz called him a “pathological liar,” “utterly amoral” and “a narcissist at a level I don’t think this country’s ever seen.” Fellow candidate Lindsay Graham said Republicans should “tell Donald Trump to go to hell.” But that was during the primaries. Cruz eventually endorsed Trump (conveniently forgetting insults toward Cruz's wife and father), and Graham now plays golf with him on a fairly regular basis.

Why the change?

Two reasons: Trump runs the show, but it’s still their show.

Since assuming office, Trump has been anything but an outsider. In fact, he’s become the very thing he ran against in the primaries, morphing into the quintessential NeoCon Republican. During his first year in office, he has, almost without fail, championed the same causes establishment Republicans have supported for years: increased military spending, anti-gay policies, regulation rollbacks and overt “patriotism.” But he’s done so while playing to the crowd as though he were still an outsider.

This is likely one reason Trump has clung to his tweeting habit so tenaciously. His rash and often offensive outbursts, and the conspiracy theories that go along with them, are all that separate him from the people he ran against in the primaries. He’s basically keeping up appearances.

Whether he’s a maverick or a traditional Republican at heart doesn’t matter to Trump, just as ideology doesn’t matter to most CEOs. It’s the bottom line that counts, and for Trump, the bottom line is his own ego. The Republicans who railed against him in the primaries have figured this out, and they know he’ll execute their agenda as long as they play along with his little charade. So, that’s exactly what they’re doing.

Imperfect storm

No wonder people on the other side of the political fence are so enraged. To them, the current situation is the worst of both worlds: a Republican majority that’s still indebted to corporate interests, working hand in glove with a president who lacks a moral compass and who insults friend and foe alike.

Trump’s Mad Hatter act is, in part, a function of who he is — a self-serving narcissist who uses chaos to further his own ends. But it’s also a function of the new corporate government system we’ve created. Under the corporate model, a board of directors makes policy to benefit shareholders (not customers), and the CEO both executes and sells that policy as the face of the company. Think Bill Gates or Steve Jobs, Richard Branson or Carly Fiorina. Or, in Britain, the royal family.

Trump likes to think he's royalty, with Mar-a-Lago as his palace and a bunch of toadies groveling at his feet.

Whatever else he is, he's the face of our nation, and it’s an ugly one, rather like Mr. Potter from It’s a Wonderful Life. Maybe we’re not threatening to jump of a bridge, as George Bailey did in that iconic film, but some people are threatening to move overseas and a whole lot of others are distraught, disconsolate and downright embarrassed.

Trump didn’t create this mess on his own. He merely stepped into the role we created for him when, fed up with gridlock and do-nothing lawmakers, we clamored for a "businesslike" approach to government. We asked for it; now we’ve got it. But is this really what we had in mind?

The sad irony is that we hired a third-rate businessman with a first-rate ego to work for 1 percent of Americans.

Welcome to Pottersville, otherwise known as Trumpsylvania. But don’t make yourself at home. In this little slice of faux-Rockwell Americana, foreclosure’s always just around the corner.