The Outright Idiocy Of American Business
The Market Ticker - Commentary on The Capital Markets
2017-02-09 12:01 by Karl Denninger
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The Outright Idiocy Of American Business
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I find it simply astounding to read articles like this:

Since Trump took charge at the White House, executives at companies including the Cleveland Clinic, Facebook, and Uber have come under internal pressure to answer for not just their policies but their politics. Employees like Hanley are pushing top bosses to sever their personal or professional ties to the administration, registering their dissent with protests, walkouts, and open letters. A handful have even resigned.

You got to be kidding me.

As a former CEO I will tell you what my response would be to any such "petition", "pressure" or otherwise:

"This company is not a democracy. You're fired."

Period.

The utter idiocy of a firm taking a political position that is opposed by half the nation, no matter on which side of the political spectrum it rests, ought to be considered by fiduciary law experts as a per se cause of action if said firm is a public company -- and lead to immediate lawsuits.

What possible upside is there to pissing off at least half of the potential customer base you might have -- that is, half the nation?

If the "pressure politics" folks think that they can "win" by arguing the opposite side of this -- accede to this pressure and take our position or we will boycott you they need to understand that their argument is a lose:lose proposition across the board.

It's one thing if you have 90% of the nation behind you on something.  It's quite another when the country is split almost exactly down the middle; in that instance any engagement, on either side, costs you half your customers and most will never come back no matter what you do in the future.

If you want a reason to short everything that has a customer-facing presence in the United States, especially social media that has nobody other than consumers to sell (not sell to!) this has to be the best argument I've seen in two decades for it.

As for Silicon Valley and their "immigration" screaming that's on the list of the dumbest things I've seen in decades as well.  H1b abuse is a simmering pot that most people are not particularly aware of, but now all of these firms including all the big names in the tech space on the west coast including Facebook, Microsoft, Google, Apple and others have gone out and declared that they are (1) addicted to cheap immigrant high-skilled labor and (2) they are and insist on continuing to be able to screw up the ass well-educated young people graduating from college in the United States by favoring cheap Indian citizens to take jobs that would otherwise go to those highly-skilled and intelligent US Citizens!

The risk of such nonsense ought to be apparent -- these are the very people who are the best of the US, many of them were cajoled into taking out huge college loans which they now have to pay off in order to obtain that education and they are likely to have far better than a minimum wage income to spend in the future -- and can quite-easily tell all of these firms to go******up a rope when it comes to any sort of "engagement" or "spending" on their products.

Wake up America -- and put all of these firms out of business by cutting their revenue from you to zero.

As for those who will whine "you're costing Americans their jobs" I will simply reply that those who are stupid deserve to neither own companies or have a job, and it does not matter what nationality you are in that regard.

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Radcondive
Posts: 436
Incept: 2010-09-16

Charleston, SC
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Mine actually cannot go any lower than zero to all of them, but it was at zero for the last few years and I haven't had a digital presence on any of 'em. I will say that I have a good cigar that I have saved for years that will get lit up when those ticker symbols in the masthead are reached.
Lenguado
Posts: 1970
Incept: 2010-01-12
A True American Patriot!
Orlando, FL
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Uhh Hummmm.....

Twitter Crashes On Revenue Miss, Terrible Guidance, Declining US Sales, Flat US Users
http://www.zerohedge.com/news/2017-02-09....

----------
I just realized... they aren't saying, "Keynesian Economics"
they're saying "Kenyansian Economics". Grass Huts for everyone!
smiley
Welcome to historys first Double Dip Depression
Erbo
Posts: 301
Incept: 2010-06-10

Denver, CO
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This is kind of the same issue I have that underlies the whole "bakeries refusing to make wedding cakes for same-sex couples because it goes against their religious beliefs" controversy...

"Why on earth would a small business deliberately choose to limit its customer base, for any reason?"

(Which is why the correct response for a couple turned away from such a business is not for them to go to the government, but for them to go to another bakery, and tell everyone WHY they went to that bakery instead of the first one! If enough people do that, the bakery that actually took their business and their money will prosper...and the bakery that turned them away will ultimately go out of business!)

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"There is a ready solution for anyone on the public payroll who feels that he is not paid enough: He can resign and work for a living. This applies with equal force to Congressmen, Welfare 'clients,' school teachers, generals, garbage collectors, and judges." - Ira Johnson
Orionrising
Posts: 4
Incept: 2017-01-26

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well not quite as bad as smith and wessons foray into gun control that cost them 40% of sales. Yet anyway... I guess I can see uber having Yemeni, Somalian and Iraqi employees, but Facebook and google? Pure SJW from their CEOs...
Tickerguy
Posts: 147938
Incept: 2007-06-26
A True American Patriot!
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It's not SJW bull****, it's purely a money thing.

Why pay $100,000 for an employee that can quit any time they'd like when you can have one that is bound to you for several YEARS for $60,000, and if he or she quits THEY HAVE TO LEAVE THE UNITED STATES?

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Winding it down.
Orionrising
Posts: 4
Incept: 2017-01-26

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oh yes, the H1B thing certainly is all about money, the 7 country visa EO thing all those companies were publically protesting is what I was referring to. Though I guess that could be their opening gambit to try and limit trumps immigration control power.
Londoncat
Posts: 83
Incept: 2012-03-02

Kansas
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Karl,
You and I are on the same page! It should be a clear breach of a CEO's fiduciary duty to the company's shareholders to make political/policy statements that immediately alienate half the adult US population (unless your business model is specifically aimed at catering to one side or the other of the political spectrum). The board should immediately fire him/her and beg the shareholders not to sue the company. Star*ucks is a perfect example. It's dumb, makes no business sense, and I hope others take your advise and vote with their wallets.
Robc
Posts: 11
Incept: 2009-09-10

Cincinnati
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What are they so upset about? Do they hire that many workers from the 7 middle eastern countries banned? I thought they mostly got Indians and Chinese.
Tickerguy
Posts: 147938
Incept: 2007-06-26
A True American Patriot!
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They know damn well a H1b change is coming, and want to delegit the administration BEFORE that happens, as if they lose the H1bs they're ****ed and they know it.

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Winding it down.
Supertruckertom
Posts: 1184
Incept: 2010-11-07

USA
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Dear Netflix,

**** You.

Sincerely,

A White Guy with a family.

Dear White People is Psychological conditioning being pushed by someone that wants to see a pogrom in the United States.




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Preparing to go Hunting.
Allanhvii
Posts: 4
Incept: 2017-01-27

Marion, MA
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I worked in a company where most of the engineering staff were H1B visa holders. They worked for far less than a regular salary and were pushed to over 100 hours per week. I called it the "engineering sweat shop." It was basically slave labor, and they were sent back if they didn't "perform".

Seems to me we have been "off-shoring" all the jobs we can, and for the jobs left here (which we can't ship out) we've been creating ways to have foreign labor do the work here at reduced rates.

When I hear the idea of having foreign workers come here, do the jobs at extra-low wages, and then be sent home again, it sounds like we're trying to create a new form of slave labor with people who don't have full rights of citizens.

It used to be that if we couldn't "afford" to have labor do the job, we would innovate and improve labor productivity so that the higher pay was justified by the higher productivity. Now we just keep looking for the cheaper labor - a very near-sighted philosophy.

If only the forces aligned to ensure cheap labor could direct their energy at the improving labor productivity and lowering health care costs!

The standard of living is based on productivity, but there seems to be very little focus on either. Cheap labor is like working 24 hour days. It seems beneficial, but it doesn't raise the "net" standard of living, so what is the point?
Clock
Posts: 1111
Incept: 2007-09-18

South of Billings Mt
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Radcondive wrote..
Mine actually cannot go any lower than zero to all of them, but it was at zero for the last few years and I haven't had a digital presence on any of 'em. I will say that I have a good cigar that I have saved for years that will get lit up when those ticker symbols in the masthead are reached.


Yep.

I especially agree with the last part about the stock symbols at the top of this page. Markets are way out of control...Way overvalued. UP BIG...DOWN BIG. It's coming.

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~ Would anybody else like to see what Hillary's 'Get out of Jail' ticket looks like? ~

Lenguado
Posts: 1970
Incept: 2010-01-12
A True American Patriot!
Orlando, FL
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Quote:
When I hear the idea of having foreign workers come here, do the jobs at extra-low wages, and then be sent home again, it sounds like we're trying to create a new form of slave labor with people who don't have full rights of citizens.

Actually, it is an OLD form of slavery - called Indentured Servitude.
smiley

----------
I just realized... they aren't saying, "Keynesian Economics"
they're saying "Kenyansian Economics". Grass Huts for everyone!
smiley
Welcome to historys first Double Dip Depression
Aztrader
Posts: 7702
Incept: 2007-09-10

Scottsdale, AZ
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Every time I deal with the post office, I get another immigrant that I can't understand and this is at our local post office. Recently, I had an issue where the temp driver picked up my mail and in addition took my Fedex packages too. This moron put the Fedex labeled packages through the postal system instead of putting them in the Fedex bin at the post office. I found out about his when a customer called wanting to know why his tracking information wasn't working from Fedex. One of the packages showed up in Texas by a USPS driver and then charged him $12.00 for the delivery. We are still missing the other 2 packages and the post office is trying to skirt responsibility. I have $900 worth of product floating somewhere and had to reship the products to my customers to keep them happy.
No more of these incompetent immigrants and refugees handing important jobs. I am sick and tired of being called by people that barely speak English that I could scream.
Niti
Posts: 642
Incept: 2008-03-20

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I returned something to Newegg once and a staff member gave it to USPS instead of UPS. Never tracked it down. Good luck.
Azbob
Posts: 1300
Incept: 2007-07-27

Tx
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I ordered 100 keto strips on eBay Friday 12 PM. $8.19 free shipping. Some company in Miami Fla. My order status reflected delivery on Wed Feb 15. The item was delivered today, Sun Feb 12 @ 1 PM. The item was delivered by Amazon vehicle, Envelope had Amazon all over it.
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