As I observe our economy, my latest pre-occupation has been with the observation that “Everybody is doing the same thing”.
What I mean by this, and what I think is obvious, is that everywhere you look, in every work-place and every business, managers are attempting to restrain or roll-back the cost of labor by limiting or cutting wages, and/or reducing the number of workers employed.
All of these are normal features of the business environment but it has gotten to the point where the ‘normal’ functions of business are being negatively impacted, and I’m wondering why this hasn’t resulted in any obvious changes in the trend.
Let’s look at an example of what I’m talking about so there’s no doubt that we’re looking at the same situation.
You go to a department store, it doesn’t make any difference whether it’s Macy’s Nordstrom’s or JC Penneys, there are less salespeople on the floor and you have to work harder than ever to find a salesperson to help you.
Add to the story that these employers are paying the people on the floor less and less, and it means when you do find them, they aren’t in a great mood.
These employees who are making less and less per hour, and working less hours per week are attending more and more meetings where they are given instruction on how to treat customers, how to sell, how to reduce losses due to theft, and where they are threatened with being written up for failure to sign customers up for ‘loyalty accounts’, read credit cards.
Credit cards which, by the way reliably charge interest rates of 29%!
Some companies are making more from the finance charges associated with their credit cards than they are on profits due to sales.
All the while, the results are, ill-treated and demoralized employees creating ill-treated and disappointed customers, lower sales, and of course, rocketing losses due to theft from under-staffed stores.
There’s a version of this story going on in every part of the retail industry, employees who are barely scraping by, paid dwindling wages and facing a rising cost of living, trying to help customers who are in the same boat, themselves employed by managers who are attempting to implement the same cost savings in their own business in an effort to bolster bottom-lines or possibly just keep the doors open.
All of these managers are waiting for ‘things-to-get-better’, or ‘things-to-get-back-to-normal’.
What I want to know, is how are things going to get better, how are things going to get back to normal, if everyone, and by this I mean YOUR CUSTOMERS, are making less and less per hour, working less hours, and paying more, and more to live?
Now I know that what I’m describing has been noticed by a lot of people, because when I explain it, just as I’ve done so far here, they all say, “yeah, I know what you mean…”
I’m sure that even store managers know that there’s something wrong with the game-plan they’re being forced to run, but they have no real choice in the matter because there’s a corporate agenda to work from and with it comes a ‘plan’.
What I’m driving at, is that the ‘plan’ is faulty, it’s doomed to failure, and it’s the very definition of a Race-to-the Bottom.
What I further intend to point out, is that at some point this Race–to-the Bottom will become a Flat-Spin.
A flat spin is a term used in aviation to describe what, at one time was generally considered an unrecoverable spin which would only end with the airplane impacting the ground.
So what I’m talking about here, is a pervasive business strategy that far from improving business health, and bolstering bottom lines, has become a literal ‘race to the bottom’, which at some point threatens to become a virtual flat spin that will end only in business failures and bankruptcies.
What I’m pointing out to over-worked middle managers who I describe as ‘Working for the Clampdown’, to borrow a phrase from the punk-rock band, the Clash, is that in executing the strategy dictated by your corporate bosses, you are driving your businesses into the ground.
Working for the Clampdown, is racing to the bottom, is willfully entering a flat spin, which ends predictably with a crash.
What I’d like to point out, is that the fact that ‘everybody is doing the same thing’ looks suspiciously like there is a plan, and if there is a plan, it looks an awful lot like the same plan, you might even call it the ‘Central Plan’.
So why are those who supposedly worship ‘Free Markets’ involved in executing what looks to me, like the biggest example of ‘central planning’ ever attempted?
Why don’t they understand that when they succeed with their plan, we fail, and when we fail, they fail?
It’s because the ‘Plan’ is rooted in an ideology, an ideology that the MOTU find appealing, but the end results of which, they haven’t examined too closely.
All over the world, our corporate masters are busy executing a plan that I call the Clamp-Down, it’s a recipe for imposed austerity, and it has a predictable outcome that they don’t acknowledge.
This plan is driven by adherence to an ideology that leaves its proponents blind to the fact that the ground is coming up real fast.



27 Comments

Interesting diary Bob, but one thing you missed is how productivity increases have reduced the need for people throughout our society. Automation and computers have increased profits while reducing the need for people and customer service is not what it used to be. The checkout register does the reordering and robots will soon handle most of the stocking.
Online sales reduce the need for brick and mortar stores and the people who work in them. The welding job i did at a Chrysler assembly plant in the ’60s is done by a robot now. When i worked at Intel the management were envious of a Fab in Japan that was completely automated with no operators needed, even though they only paid minimum wage to their operators.
The future is here and computers and robots are dramatically reducing the need for humans while producing record profits for the Capitalists.
Workers are rapidly becoming obsolete in many areas and machines don’t take breaks, call in sick or ask for a raise.
Machines don’t buy stuff either. How will our managerial geniuses fix that?
Even if growth is slow we live in a Buy Or Die consumer society. We may not buy as many of the things we want but we still buy the things we need. Companies are using global markets and productivity gains to maintain their profits and the people displaced in the process are no longer needed on either side of the equation.
The downward economic spiral this creates for some is just another opportunity for the Disaster Capitalists, payday loans and title loans are profit centers for the Banksters to suck even more revenues from the losers in this game.
If you follow that to its logical conclusion we end up making only Ra-Men noodles, hot-dogs, Coke and beer.
People making $6/hr don’t buy big-screen TVs or automobiles.
The MOTU invented their divisive ideology, at least in part to help them maintain control by pitting working class Americans against each other.
One of the biggest problems that resulted from their invention, is a mass of people who believe that half our country’s people are living off someone else’s labor, and they’re angry and armed and would love to start shooting.
It’s exactly like Jay Gould said over a hundred years ago;
“I can hire one half of the working class to kill the other half.”
If the profits due to productivity gains you mention had been shared as equitably with the working class since 1970, as they had been between 1900 and 1970, we wouldn’t be in this situation.
Somewhere around 1970 the MOTU decided it was no longer necessary to share, some say because the labor pool finally grew large that there was less competition for workers, what ever the cause, corporations started keeping all the gains due to productivity increasing, and wages went flat.
Eventually, working class people needed two wage-earners to maintain a decent standard of living, and now even that isn’t good enough.
My point, and I believe I’ve made it plain, is that the MOTU made their fortunes off the American consumer, and they are in the process of erasing the American consumer from the environment.
They are doing this in order to minimize their labor costs, which they will surely achieve, but at the cost of erasing their customer’s ability to consume.
I’m asking every Automobile Dealer, for instance, every Retail Business owner in fact, to face the fact that their banker buddies are busy exterminating their customers and to re-think their allegiance to the guys above them on the economic ladder.
Exactly!
Thanks for stopping by Randall.
Auto dealers and big retailers like Walmart seem to be doing just fine since most consumers can still get credit so i doubt your pleas will be heard.
I agree with most of what you stated about our Capitalist Overloards but they have the populace exactly where they want them, chasing political phantoms and scared to death of losing what little they have.
As time goes by i have less and less sympathy for the Amerikan consumer since our largess has been at the expense of other less exceptional peoples. The bitter austerity we are beginning to taste is just our foreign economic policies of yesterday returning to the Homeland.
Dear Bob,
Have you not heard of one-use humans? Did you not realize that Morgan kept capitalism profitable and in return built a monstrous industrial America which transformed nature’s secreted hydrocarbons into a bloom of human craft? Have you not heard of an ideological facade? Haven’t you read the experts saying that the glorious phase of capitalism you were fortunate enough to live through is an oddity?
Capitalism does not strive for sustainability. It is not some enlightened system managed by enlightened individuals.
Your Dealer and Retailer buddies have their cash stockpiled with the rest of the compradors in the financial hedgemonster. They are one with the borg.
I know it’s hard for an old dog to learn new trix, Bob, but you really ought to give it a try.
Not a single word I would disagree with.
And you’re right, it’s very hard to feel sorry for a stupid and callous people.
But, but …
Wish I could disagree, but I don’t.
I do understand the issue of the ideological facade, and that’s my one big gripe with Krugman, he says what they’re doing is wrong but leaves off any mention of why, which is naked greed and straight up craven dishonesty.
Absolutely superb and very necessary post, Watt4Bob!!!
Excellent, thoughtful and well-considered comment thread, as well.
The apologists, and they are numerous, for what is occurring, in the economic system, the political system, legal system, and the MICC, as well, all basically say the same thing, “It’s not illegal, it’s not against the law.”
How terribly sad.
For a civil society and for civilization, itself, to survive, for human beings to thrive … we need to aim for a higher “standard”, than that, a standard which one would think that we all, those with even a modicum of understanding, with a shred of conscience, might, in fact, should insist upon. Such standards are known as principles, they are foundational social principles.
Yet, right now, even at FDL, loud voices, clearly “entitled” voices, say that concern for others is sanctimonious arrogance and that “most people” have other things to “think” about, that those accused of behaving in a morally superior fashion by seeking to talk about the very things you mention, and such things as massive criminal Wall Street fraud, which the government refuses to prosecute, a for-profit health “insurance” system, which the government helped “engineer” behind closed doors, even inserting (certain Senators, their staffs, and even the “White House”, so we are informed) into a bogus “fiscal cliff” bill, a $500 million giveaway to a corporation convicted of fraud a mere two weeks before the vote for that bill, and the increasingly widespread use of torture and drone assassinations, engaged and prosecuted IN the name of all “the people” of this nation, anti-democratic “National Security” secrecy, blatantly kangaroo military “trials” of those whom the Executive, now subject to NO oversight, to NO meaningful checks nor balances, labels as “terrorists” … with “live” coverage which may be “blacked-out”, at any time, for any “reason”, not by the “judge”, but by anonymous “monitors”, entities unknown, even to that judge, all of which is designed, so it is claimed to protect the “security” of all of the people, even as all of the people are subject to secret scrutiny, to being spied upon, having all of their communications recorded and examined, anyone who cares about those things, about the “other people” who “our” ballyhooed policy of perpetual war … are killing, especially the “collateral damage”, often children, or the intent of “our” hegemonic policies to control resources and virtually any other human beings who cannot “fight” back, anyone who dares to speak of such things, to share their concerns with others, to seek to encourage a broader understanding of what, in fact is going on, even as you, Bob, are very ably doing, here, today … according to the defenders of the faith, anyone who questions, anyone with questions … should just shut the hell up.
I apologize, Bob, for throwing in all those other things … yet they too, in my opinion, are part of the “race-to-the-bottom”, “the clampdown”, and contribute greatly to the likelihood of that “flat spin”.
I thank you, Bob, and all those who comment on this post with honest compassion, life-based understanding, learned tolerance, and the courage to dare to make use of those things.
Namaste
DW
Thanks for stopping by DW, your comments are always welcome, and no apologies necessary as your elaborations are spot on.
I think the issue of the ideological facade that RachelX introduced to the discussion is very important to flesh out.
In far too many discussions of our problems and possible solutions, the facade is granted legitimacy it in no way deserves.
The ideological facade is the fountain head of new-speak garbage language intended to obfuscate rather than illuminate the truth.
One of the biggest examples being the utter fallacy surrounding the notion of ‘Free Markets’, that being the fact that those crying the loudest about the virtue of free and open markets are in fact busy wiping out competition and working to prop up their monopolistic domination of every market, worldwide.
The “ideological facade” is precisely what is intended to preclude further thought and discussion, Bob.
We see it “operate”, as another example, around the issue of drone assassinations. Those who oppose such things and the notion of perpetual war, are told, “But, it saves American lives, we don’t have to send people in, on the ground, to do this.”
Right.
Such a retort is intended, usually very deliberately, to end the discussion, to preclude any further discussion of either the legality, justification and moral premise of the use of drones and the “second-strike” philosophy it often employs and, even more significantly, to end any discussion about the moral justification for war, about its actual “utility”, about its many-level costs and consequences.
More specifically germane to your example, above, might be this article by Robert Scheer and comment #2 to that article …
http://www.huffingtonpost.com/robert-scheer/shame-on-you-goldman-sach_b_2596706.html
DW
Yup, I like especially the last paragraph;
You’re also right about commenter #2 Mr. ‘ThatsTheWayItIs’ if you don’t like it, STFU.
Much the same as “America, love it or leave it”, it’s not a patriotic invitation, it’s an open, in-your-face threat meant to intimidate and silence.
Yes, certain “comments” mean “stifle yourself you ‘effin’ retard, shut, go away, move on!, nobody gives a flyin’ fig what you think!”
Such comments are meant to intimidate, to quash any thought of certain things.
On the other foot, Marcy Wheeler provided us with this look at evasion, at official deceit:
http://www.emptywheel.net/2013/02/01/doj-we-cant-tell-which-secret-application-of-section-215-prevents-us-from-telling-you-how-youre-surveilled/
Again, Bob, I don’t mean to hijack your post, merely to add some spicy tidbits.
DW
Spice is good.
Also, speaking of the “self” righteous and their attempts to “instruct” we lesser mortals, we find a signature example, here:
http://www.huffingtonpost.com/2013/01/31/applebees-waitress-fired-god-tip-receipt_n_2591794.html
We of little faith simply do not understand the vast, deep, and all-wise wisdom of those possessing great faith, and little self-reflection, ‘twould seem.
Through our actions, far more than our words, we are known … we are revealed.
DW
To be fair and balanced, which one always should strive to be, (especially when walking tightropes or leaving one’s “signature” musings in public, this link discussing the Pastor’s “apology” must need be clicked …
http://scallywagandvagabond.com/2013/01/pastor-alois-bell-apologizes-for-getting-applebees-waitress-fired/
DW
Did you notice ThatsTheWayItIs’s signature?
The man’s a self-parody. America’s a self parody. The man’s a nihilist. America’s a nihilist.
They don’t believe that and not because they don’t understand their exoteric or their esoteric idology. They don’t care about we.
Do we?
That prosperity gospel will make your head spin like Regan’s. Then again, so will America’s favorite religion.
… yes … well stated … X 2
… yes again as well … X 2
Well that’s something we’ll be talking about as we sit around the campfire in the hobo jungle out back of the Wal-Mart.
That’s the Wal-Mart where half of us work, and the other half assembles for the morning ‘Shape-Up’.
Naked greed. Yes. That is the moral imperative of capitalism. Not only greed, but greed for more soonest.
These people you talk about, these retail store managers, are, as Rachel up there said, part of the Capital Collective. Even if they realize that the policies they follow will inevitably lead to their own store closing and possibly their own unemployment, they still follow them. Why?
Well, for one thing, if they didn’t they would be fired and replaced by someone else who would. Or they hope against hope that they will somehow grab the tantalizing gold ring of capitalism and get a promotion into the corporate executive suites where they and theirs will be set no matter what ultimately happens to the retail corporation.
Or they’re just stupid. Take your pick.
Great post. Rec’d. I have just one question: What’s a credit card? I’ve read stories about them. Are they really true?
You’re lucky if you don’t have first hand experience with them.
Hard to imagine people agree to pay 29% to buy clothes isn’t it?
Heh! Not for lack of trying, once upon a time. I haven’t had credit for well over a decade now, thanks to a “low” FICO score. I wouldn’t call it “lucky,” though. Cash and carry only works if one has the cash.
As for the 29% thing, I’m with the old Catholics there. Usury laws had redeeming social value.
Yes; comment rec’d.
signed,
sanctimoniousX