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Scapegoating and victimization of poor and unemployed

News Neoliberalism Recommended Links Neoliberalism Bookshelf Classification of Corporate Psychopaths Neoclassical Pseudo Theories and Crooked and Bought Economists as Fifth Column of Financial Oligarchy
The Great Transformation Neoliberalism as secular religion, "idolatry of money" Techno-fundamentalism Over-consumption of Luxury Goods as Market Failure Globalization of Financial Flows Globalization of Corporatism
Greenspan as the Chairman of Financial Politburo Friedman --founder of Chicago school of deification of market Pope Francis on danger of neoliberalism Neoliberalism credibility trap Greenspan humor Etc
JackSnap

"[Slavs, Latin, and Hebrew immigrants are] human weeds ... a deadweight of human waste ... [Blacks, soldiers, and Jews are a] menace to the race." "Eugenic sterilization is an urgent need ... We must prevent multiplication of this bad stock." -- Margaret Sanger, April 1933 Birth Control Review .

Victimization of poor as lazy is another quintessential neoliberal policy, so to attribute is 100% to German's racism (while racism is a factor too) would be incorrect.

Shaming the poor as a new sport for the transnational elites and subservient politicians

Amorality and psychopathic tendencies of new transnational elite and a special breed of corrupted politicians who serve them are perfectly demonstrated in the new sport for crooked politicians, especially from the part of the US Republican Party which can be called neo-confederates.

Barbara Ellen in her Guardian column (Guardian March 2, 2013) pointed out that the Methodists, the United Reformed Church, the Church of Scotland and the Baptist Union have joined forces to publish a study called The Lies We Tell Ourselves. It highlights myths surrounding people and poverty, including Iain Duncan Smith's much trumpeted "families out of work for three generations" line (which, it turns out, has never been backed up by data).

The report argues that the government is "deliberately misrepresenting" the poor, blaming them for their circumstances while ignoring more complex reasons, including policy deficiencies. Moreover, they feel that this scapegoating is the result of collusion between politicians, the media and the public.

Increasingly, the shame is being taken out of poor-shaming. It didn't seem so long ago that most people would think twice about denigrating fellow citizens who were having a hard time. These days, it appears to have been sanctioned as a new sport for the elites. A politician is one thing but these attitudes are spreading and hardening among ordinary people too. Indeed, poverty seems a trigger to inspire hate speech that would be quickly denounced if it related to race or gender.

Is this our new default setting – that the needy are greedy? This chimes with a slew of government policies that appear to be founded on notions of bulletproof self-reliance, making no allowances for circumstances or sheer bad luck, and which many would require huge amounts of help to put into practice, never mind sustain. Meanwhile, the more fortunate are invited to pour scorn upon anyone who fails.

While there are people whose problem are self-inflicted for many this is not true. In reality substantial number of poor are former people of modest means hit by a serious disease and who run out of options.

And shaming poor is a pretty safe sport. The poor are poor. They have no money, no voice, no representatives, and no means to defend their interests. Poverty is a like collapse of domino – once the first domino falls, all others follow the suit. In such circumstances, if a group of people are "deliberately misrepresents" the real situation with the poor, then there's precious little they can do about it. The churches got it right – if anything, the truth seems so much worse that it must surely be time to put the shame back into poor-shaming.

Poor-shamers are bullies, and right now they're getting away with it.

Internal colonization

Gaylord: "This is not merely Germany vs. Greece, but rather the Western Banking Cabal asserting heightened control over the economies of the world,"

Exactly. This is about neoliberalism, not so much about Germans. It is about neoliberal polices of financial oligarchy within the Forth Reich (aka EU). And neoliberal vassal state (Greece) sliding into debt slavery by succession of Greek neoliberal governments. In essence this can be viewed not only as an "internal colonization" of southern states and East European state by northern states within EU but as logical development of the vassal state within the neoliberal economic system now adopted by EU. and it is transnationals which will be the main beneficiaries of sell out of Greek assets for pennies on the dollar.

"...This economic plunge happened because they followed and implemented creditor demands for austerity measures to the letter. It is the fact that Syriza has had the temerity to point out the failure of these austerity measures that has provoked the wrath of the likes of Wolfgang Schδuble and Jeroen Dijsselbloem, both of whom are hard-line ideological neo-liberals."

Also if Merkel had not insisted on bailing out the banks that Greece owed money to when it went bankrupt then the Greek debt would not have been transferred to the ECB and hence the taxpayers of the member countries. But the haircut provided proved to be insufficient and country was still under too much pressure of external debt to recover, What happened next is only logical.

Also Yanis Varoufakis suggested that Germany is attempting to force Greece out of the common currency union as a lesson to France, to put the fear of God into them. That might be a factor too.

Blaming the Poor for Poverty


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[Nov 07, 2018] Stuxnet 2.0? Iran claims Israel launched new cyber attacks

Nov 07, 2018 | arstechnica.com

President Rouhani's phone "bugged," attacks against network infrastructure claimed.

Sean Gallagher - 11/5/2018, 5:10 PM

reader comments

Last week, Iran's chief of civil defense claimed that the Iranian government had fought off Israeli attempts to infect computer systems with what he described as a new version of Stuxnet -- the malware reportedly developed jointly by the US and Israel that targeted Iran's uranium-enrichment program. Gholamreza Jalali, chief of the National Passive Defense Organization (NPDO), told Iran's IRNA news service, "Recently, we discovered a new generation of Stuxnet which consisted of several parts... and was trying to enter our systems."

On November 5, Iran Telecommunications Minister Mohammad-Javad Azari Jahromi accused Israel of being behind the attack, and he said that the malware was intended to "harm the country's communication infrastructures." Jahromi praised "technical teams" for shutting down the attack, saying that the attackers "returned empty-handed." A report from Iran's Tasnim news agency quoted Deputy Telecommunications Minister Hamid Fattahi as stating that more details of the cyber attacks would be made public soon.

Jahromi said that Iran would sue Israel over the attack through the International Court of Justice. The Iranian government has also said it would sue the US in the ICJ over the reinstatement of sanctions. Israel has remained silent regarding the accusations .

The claims come a week after the NPDO's Jalali announced that President Hassan Rouhani's cell phone had been "tapped" and was being replaced with a new, more secure device. This led to a statement by Iranian Supreme Leader Ayatollah Ali Khamenei, exhorting Iran's security apparatus to "confront infiltration through scientific, accurate, and up-to-date action."

While Iran protests the alleged attacks -- about which the Israeli government has been silent -- Iranian hackers have continued to conduct their own cyber attacks. A recent report from security tools company Carbon Black based on data from the company's incident-response partners found that Iran had been a significant source of attacks in the third quarter of this year, with one incident-response professional noting, "We've seen a lot of destructive actions from Iran and North Korea lately, where they've effectively wiped machines they suspect of being forensically analyzed."


SymmetricChaos </> , 2018-11-05T17:16:46-05:00 I feel like governments still think of cyber warfare as something that doesn't really count and are willing to be dangerously provocative in their use of it. ihatewinter , 2018-11-05T17:27:06-05:00 Another day in international politics. Beats lobbing bombs at each other. +13 ( +16 / -3 ) fahrenheit_ak </> , 2018-11-05T17:46:44-05:00

corey_1967 wrote:
The twin pillars of Iran's foreign policy - America is evil and Wipe Israel off the map - do not appear to be serving the country very well.

They serve Iran very well, America is an easy target to gather support against, and Israel is more than willing to play the bad guy (for a bunch of reasons including Israels' policy of nuclear hegemony in the region and historical antagonism against Arab states).
revision0 , 2018-11-05T17:48:22-05:00 Israeli hackers?

Go on!

Quote:

Israeli hackers offered Cambridge Analytica, the data collection firm that worked on U.S. President Donald Trump's election campaign, material on two politicians who are heads of state, the Guardian reported Wednesday, citing witnesses.

https://www.haaretz.com/israel-news/isr ... -1.5933977

Quote:

For $20M, These Israeli Hackers Will Spy On Any Phone On The Planet

https://www.forbes.com/sites/thomasbrew ... -ulin-ss7/

Quote:

While Israelis are not necessarily number one in technical skills -- that award goes to Russian hackers -- Israelis are probably the best at thinking on their feet and adjusting to changing situations on the fly, a trait essential for success in a wide range of areas, including cyber-security, said Forzieri. "In modern attacks, the human factor -- for example, getting someone to click on a link that will install malware -- constitutes as much as 85% of a successful attack," he said.

http://www.timesofisrael.com/israeli-ha ... ty-expert/

+5 ( +9 / -4 )
ihatewinter </> , 2018-11-05T17:52:15-05:00
dramamoose wrote:
thorpe wrote:
The pro-Israel trolls out in front of this comment section...

You don't have to be pro-Israel to be anti-Iran. Far from it. I think many of Israel's actions in Palestine are reprehensible, but I also know to (rightly) fear an Islamic dictatorship who is actively funding terrorism groups and is likely a few years away from having a working nuclear bomb, should they resume research (which the US actions seem likely to cause).

The US created the Islamic Republic of Iran by holding a cruel dictator in power rather than risking a slide into communism. We should be engaging diplomatically, rather than trying sanctions which clearly don't work. But I don't think that the original Stuxnet was a bad idea, nor do I think that intense surveillance of what could be a potentially very dangerous country is a bad one either.

If the Israelis (slash US) did in fact target civilian infrastructure, that's a problem. Unless, of course, they were bugging them for espionage purposes.

Agree. While Israel is not about to win Humanitarian Nation of the year Award any time soon, I don't see it going to Iran in a close vote tally either.

[Nov 03, 2018] Is Red Hat IBM's 'Hail Mary' pass

Notable quotes:
"... if those employees become unhappy, they can effectively go anywhere they want. ..."
"... IBM's partner/reseller ecosystem is nowhere near what it was since it owned the PC and Server businesses that Lenovo now owns. And IBM's Softlayer/BlueMix cloud is largely tied to its legacy software business, which, again, is slowing. ..."
"... I came to IBM from their SoftLayer acquisition. Their ability to stomp all over the things SoftLayer was almost doing right were astounding. I stood and listened to Ginni say things like, "We purchased SoftLayer because we need to learn from you," and, "We want you to teach us how to do Cloud the right way, since we spent all these years doing things the wrong way," and, "If you find yourself in a meeting with one of our old teams, you guys are gonna be the ones in charge. You are the ones who know how this is supposed to work - our culture has failed at it." Promises which were nothing more than hollow words. ..."
"... Next, it's a little worrisome that the author, now over the whole IBM thing is recommending firing "older people," you know, the ones who helped the company retain its performance in years' past. The smartest article I've read about IBM worried about its cheap style of "acquiring" non-best-of-breed companies and firing oodles of its qualified R&D guys. THAT author was right. ..."
"... Four years in GTS ... joined via being outsourced to IBM by my previous employer. Left GTS after 4 years. ..."
"... The IBM way of life was throughout the Oughts and the Teens an utter and complete failure from the perspective of getting work done right and using people to their appropriate and full potential. ..."
"... As a GTS employee, professional technical training was deemed unnecessary, hence I had no access to any unless I paid for it myself and used my personal time ... the only training available was cheesy presentations or other web based garbage from the intranet, or casual / OJT style meetings with other staff who were NOT professional or expert trainers. ..."
"... As a GTS employee, I had NO access to the expert and professional tools that IBM fricking made and sold to the same damn customers I was supposed to be supporting. Did we have expert and professional workflow / document management / ITIL aligned incident and problem management tools? NO, we had fricking Lotus Notes and email. Instead of upgrading to the newest and best software solutions for data center / IT management & support, we degraded everything down the simplest and least complex single function tools that no "best practices" organization on Earth would ever consider using. ..."
"... And the people management paradigm ... employees ranked annually not against a static or shared goal or metric, but in relation to each other, and there was ALWAYS a "top 10 percent" and a "bottom ten percent" required by upper management ... a system that was sociopathic in it's nature because it encourages employees to NOT work together ... by screwing over one's coworkers, perhaps by not giving necessary information, timely support, assistance as needed or requested, one could potentially hurt their performance and make oneself look relatively better. That's a self-defeating system and it was encouraged by the way IBM ran things. ..."
Nov 03, 2018 | www.zdnet.com
Brain drain is a real risk

IBM has not had a particularly great track record when it comes to integrating the cultures of other companies into its own, and brain drain with a company like Red Hat is a real risk because if those employees become unhappy, they can effectively go anywhere they want. They have the skills to command very high salaries at any of the top companies in the industry.

The other issue is that IBM hasn't figured out how to capture revenue from SMBs -- and that has always been elusive for them. Unless a deal is worth at least $1 million, and realistically $10 million, sales guys at IBM don't tend to get motivated.

Also: Red Hat changes its open-source licensing rules

The 5,000-seat and below market segment has traditionally been partner territory, and when it comes to reseller partners for its cloud, IBM is way, way behind AWS, Microsoft, Google, or even (gasp) Oracle, which is now offering serious margins to partners that land workloads on the Oracle cloud.

IBM's partner/reseller ecosystem is nowhere near what it was since it owned the PC and Server businesses that Lenovo now owns. And IBM's Softlayer/BlueMix cloud is largely tied to its legacy software business, which, again, is slowing.

... ... ...

But I think that it is very unlikely the IBM Cloud, even when juiced on Red Hat steroids, will become anything more ambitious than a boutique business for hybrid workloads when compared with AWS or Azure. Realistically, it has to be the kind of cloud platform that interoperates well with the others or nobody will want it.


geek49203_z , Wednesday, April 26, 2017 10:27 AM

Ex-IBM contractor here...

1. IBM used to value long-term employees. Now they "value" short-term contractors -- but they still pull them out of production for lots of training that, quite frankly, isn't exactly needed for what they are doing. Personally, I think that IBM would do well to return to valuing employees instead of looking at them as expendable commodities, but either way, they need to get past the legacies of when they had long-term employees all watching a single main frame.

2. As IBM moved to an army of contractors, they killed off the informal (but important!) web of tribal knowledge. You know, a friend of a friend who new the answer to some issue, or knew something about this customer? What has happened is that the transaction costs (as economists call it) have escalated until IBM can scarcely order IBM hardware for its own projects, or have SDM's work together.

M Wagner geek49203_z , Wednesday, April 26, 2017 10:35 AM
geek49203_z Number 2 is a problem everywhere. As long-time employees (mostly baby-boomers) retire, their replacements are usually straight out of college with various non-technical degrees. They come in with little history and few older-employees to which they can turn for "the tricks of the trade".
Shmeg , Wednesday, April 26, 2017 10:41 AM
I came to IBM from their SoftLayer acquisition. Their ability to stomp all over the things SoftLayer was almost doing right were astounding. I stood and listened to Ginni say things like, "We purchased SoftLayer because we need to learn from you," and, "We want you to teach us how to do Cloud the right way, since we spent all these years doing things the wrong way," and, "If you find yourself in a meeting with one of our old teams, you guys are gonna be the ones in charge. You are the ones who know how this is supposed to work - our culture has failed at it." Promises which were nothing more than hollow words.
geek49203_z , Wednesday, April 26, 2017 10:27 AM
Ex-IBM contractor here...

1. IBM used to value long-term employees. Now they "value" short-term contractors -- but they still pull them out of production for lots of training that, quite frankly, isn't exactly needed for what they are doing. Personally, I think that IBM would do well to return to valuing employees instead of looking at them as expendable commodities, but either way, they need to get past the legacies of when they had long-term employees all watching a single main frame.

2. As IBM moved to an army of contractors, they killed off the informal (but important!) web of tribal knowledge. You know, a friend of a friend who new the answer to some issue, or knew something about this customer? What has happened is that the transaction costs (as economists call it) have escalated until IBM can scarcely order IBM hardware for its own projects, or have SDM's work together.

M Wagner geek49203_z , Wednesday, April 26, 2017 10:35 AM
geek49203_z Number 2 is a problem everywhere. As long-time employees (mostly baby-boomers) retire, their replacements are usually straight out of college with various non-technical degrees. They come in with little history and few older-employees to which they can turn for "the tricks of the trade".
Shmeg , Wednesday, April 26, 2017 10:41 AM
I came to IBM from their SoftLayer acquisition. Their ability to stomp all over the things SoftLayer was almost doing right were astounding. I stood and listened to Ginni say things like, "We purchased SoftLayer because we need to learn from you," and, "We want you to teach us how to do Cloud the right way, since we spent all these years doing things the wrong way," and, "If you find yourself in a meeting with one of our old teams, you guys are gonna be the ones in charge. You are the ones who know how this is supposed to work - our culture has failed at it." Promises which were nothing more than hollow words.
cavman , Wednesday, April 26, 2017 3:58 PM
In the 1970's 80's and 90's I was working in tech support for a company called ROLM. We were doing communications , voice and data and did many systems for Fortune 500 companies along with 911 systems and the secure system at the White House. My job was to fly all over North America to solve problems with customers and integration of our equipment into their business model. I also did BETA trials and documented systems so others would understand what it took to make it run fine under all conditions.

In 84 IBM bought a percentage of the company and the next year they bought out the company. When someone said to me "IBM just bought you out , you must thing you died and went to heaven." My response was "Think of them as being like the Federal Government but making a profit". They were so heavily structured and hide bound that it was a constant battle working with them. Their response to any comments was "We are IBM"

I was working on an equipment project in Colorado Springs and IBM took control. I was immediately advised that I could only talk to the people in my assigned group and if I had a question outside of my group I had to put it in writing and give it to my manager and if he thought it was relevant it would be forwarded up the ladder of management until it reached a level of a manager that had control of both groups and at that time if he thought it was relevant it would be sent to that group who would send the answer back up the ladder.

I'm a Vietnam Veteran and I used my military training to get things done just like I did out in the field. I went looking for the person I could get an answer from.

At first others were nervous about doing that but within a month I had connections all over the facility and started introducing people at the cafeteria. Things moved quickly as people started working together as a unit. I finished my part of the work which was figuring all the spares technicians would need plus the costs for packaging and service contract estimates. I submitted it to all the people that needed it. I was then hauled into a meeting room by the IBM management and advised that I was a disruptive influence and would be removed. Just then the final contracts that vendors had to sign showed up and it used all my info. The IBM people were livid that they were not involved.

By the way a couple months later the IBM THINK magazine came out with a new story about a radical concept they had tried. A cover would not fit on a component and under the old system both the component and the cover would be thrown out and they would start from scratch doing it over. They decided to have the two groups sit together and figure out why it would not fit and correct it on the spot.

Another great example of IBM people is we had a sales contract to install a multi node voice mail system at WANG computers but we lost it because the IBM people insisted on bundling in AS0400 systems into the sale to WANG computer. Instead we lost a multi million dollar contract.

Eventually Siemens bought 50% of the company and eventually full control. Now all we heard was "That is how we do it in Germany" Our response was "How did that WW II thing work out".

Stockholder , Wednesday, April 26, 2017 7:20 PM
The author may have more loyalty to Microsoft than he confides, is the first thing noticeable about this article. The second thing is that in terms of getting rid of those aged IBM workers, I think he may have completely missed the mark, in fairness, that may be the product of his IBM experience, The sheer hubris of tech-talking from the middle of the story and missing the global misstep that is today's IBM is noticeable. As a stockholder, the first question is, "Where is the investigation to the breach of fiduciary duty by a board that owes its loyalty to stockholders who are scratching their heads at the 'positive' spin the likes of Ginni Rometty is putting on 20 quarters of dead losses?" Got that, 20 quarters of losses.

Next, it's a little worrisome that the author, now over the whole IBM thing is recommending firing "older people," you know, the ones who helped the company retain its performance in years' past. The smartest article I've read about IBM worried about its cheap style of "acquiring" non-best-of-breed companies and firing oodles of its qualified R&D guys. THAT author was right.

IBM's been run into the ground by Ginni, I'll use her first name, since apparently my money is now used to prop up this sham of a leader, who from her uncomfortable public announcement with Tim Cook of Apple, which HAS gone up, by the way, has embraced every political trend, not cause but trend from hiring more women to marginalizing all those old-time white males...You know the ones who produced for the company based on merit, sweat, expertise, all those non-feeling based skills that ultimately are what a shareholder is interested in and replaced them with young, and apparently "social" experts who are pasting some phony "modernity" on a company that under Ginni's leadership has become more of a pet cause than a company.

Finally, regarding ageism and the author's advocacy for the same, IBM's been there, done that as they lost an age discrimination lawsuit decades ago. IBM gave up on doing what it had the ability to do as an enormous business and instead under Rometty's leadership has tried to compete with the scrappy startups where any halfwit knows IBM cannot compete.

The company has rendered itself ridiculous under Rometty, a board that collects paychecks and breaches any notion of fiduciary duty to shareholders, an attempt at partnering with a "mod" company like Apple that simply bolstered Apple and left IBM languishing and a rejection of what has a track record of working, excellence, rewarding effort of employees and the steady plod of performance. Dump the board and dump Rometty.

jperlow Stockholder , Wednesday, April 26, 2017 8:36 PM
Stockholder Your comments regarding any inclination towards age discrimination are duly noted, so I added a qualifier in the piece.
Gravyboat McGee , Wednesday, April 26, 2017 9:00 PM
Four years in GTS ... joined via being outsourced to IBM by my previous employer. Left GTS after 4 years.

The IBM way of life was throughout the Oughts and the Teens an utter and complete failure from the perspective of getting work done right and using people to their appropriate and full potential. I went from a multi-disciplinary team of engineers working across technologies to support corporate needs in the IT environment to being siloed into a single-function organization.

My first year of on-boarding with IBM was spent deconstructing application integration and cross-organizational structures of support and interwork that I had spent 6 years building and maintaining. Handing off different chunks of work (again, before the outsourcing, an Enterprise solution supported by one multi-disciplinary team) to different IBM GTS work silos that had no physical spacial relationship and no interworking history or habits. What we're talking about here is the notion of "left hand not knowing what the right hand is doing" ...

THAT was the IBM way of doing things, and nothing I've read about them over the past decade or so tells me it has changed.

As a GTS employee, professional technical training was deemed unnecessary, hence I had no access to any unless I paid for it myself and used my personal time ... the only training available was cheesy presentations or other web based garbage from the intranet, or casual / OJT style meetings with other staff who were NOT professional or expert trainers.

As a GTS employee, I had NO access to the expert and professional tools that IBM fricking made and sold to the same damn customers I was supposed to be supporting. Did we have expert and professional workflow / document management / ITIL aligned incident and problem management tools? NO, we had fricking Lotus Notes and email. Instead of upgrading to the newest and best software solutions for data center / IT management & support, we degraded everything down the simplest and least complex single function tools that no "best practices" organization on Earth would ever consider using.

And the people management paradigm ... employees ranked annually not against a static or shared goal or metric, but in relation to each other, and there was ALWAYS a "top 10 percent" and a "bottom ten percent" required by upper management ... a system that was sociopathic in it's nature because it encourages employees to NOT work together ... by screwing over one's coworkers, perhaps by not giving necessary information, timely support, assistance as needed or requested, one could potentially hurt their performance and make oneself look relatively better. That's a self-defeating system and it was encouraged by the way IBM ran things.

The "not invented here" ideology was embedded deeply in the souls of all senior IBMers I ever met or worked with ... if you come on board with any outside knowledge or experience, you must not dare to say "this way works better" because you'd be shut down before you could blink. The phrase "best practices" to them means "the way we've always done it".

IBM gave up on innovation long ago. Since the 90's the vast majority of their software has been bought, not built. Buy a small company, strip out the innovation, slap an IBM label on it, sell it as the next coming of Jesus even though they refuse to expend any R&D to push the product to the next level ... damn near everything IBM sold was gentrified, never cutting edge.

And don't get me started on sales practices ... tell the customer how product XYZ is a guaranteed moonshot, they'll be living on lunar real estate in no time at all, and after all the contracts are signed hand the customer a box of nuts & bolts and a letter telling them where they can look up instructions on how to build their own moon rocket. Or for XX dollars more a year, hire a Professional Services IBMer to build it for them.

I have no sympathy for IBM. They need a clean sweep throughout upper management, especially any of the old True Blue hard-core IBMers.

billa201 , Thursday, April 27, 2017 11:24 AM
You obviously have been gone from IBM as they do not treat their employees well anymore and get rid of good talent not keep it a sad state.
ClearCreek , Tuesday, May 9, 2017 7:04 PM
We tried our best to be SMB partners with IBM & Arrow in the early 2000s ... but could never get any traction. I personally needed a mentor, but never found one. I still have/wear some of their swag, and I write this right now on a re-purposed IBM 1U server that is 10 years old, but ... I can't see any way our small company can make $ with them.

Watson is impressive, but you can't build a company on just Watson. This author has some great ideas, yet the phrase that keeps coming to me is internal politics. That corrosive reality has & will kill companies, and it will kill IBM unless it is dealt with.

Turn-arounds are possible (look at MS), but they are hard and dangerous. Hope IBM can figure it out...

[Nov 03, 2018] The evaluation system in which there was ALWAYS a "top 10 percent" and a "bottom ten percent" is sociopathic in it's nature

Notable quotes:
"... Four years in GTS ... joined via being outsourced to IBM by my previous employer. Left GTS after 4 years. ..."
"... The IBM way of life was throughout the Oughts and the Teens an utter and complete failure from the perspective of getting work done right and using people to their appropriate and full potential. ..."
"... As a GTS employee, professional technical training was deemed unnecessary, hence I had no access to any unless I paid for it myself and used my personal time ... the only training available was cheesy presentations or other web based garbage from the intranet, or casual / OJT style meetings with other staff who were NOT professional or expert trainers. ..."
"... As a GTS employee, I had NO access to the expert and professional tools that IBM fricking made and sold to the same damn customers I was supposed to be supporting. Did we have expert and professional workflow / document management / ITIL aligned incident and problem management tools? NO, we had fricking Lotus Notes and email. Instead of upgrading to the newest and best software solutions for data center / IT management & support, we degraded everything down the simplest and least complex single function tools that no "best practices" organization on Earth would ever consider using. ..."
"... And the people management paradigm ... employees ranked annually not against a static or shared goal or metric, but in relation to each other, and there was ALWAYS a "top 10 percent" and a "bottom ten percent" required by upper management ... a system that was sociopathic in it's nature because it encourages employees to NOT work together ... by screwing over one's coworkers, perhaps by not giving necessary information, timely support, assistance as needed or requested, one could potentially hurt their performance and make oneself look relatively better. That's a self-defeating system and it was encouraged by the way IBM ran things. ..."
Nov 03, 2018 | www.zdnet.com

Gravyboat McGee , Wednesday, April 26, 2017 9:00 PM

Four years in GTS ... joined via being outsourced to IBM by my previous employer. Left GTS after 4 years.

The IBM way of life was throughout the Oughts and the Teens an utter and complete failure from the perspective of getting work done right and using people to their appropriate and full potential. I went from a multi-disciplinary team of engineers working across technologies to support corporate needs in the IT environment to being siloed into a single-function organization.

My first year of on-boarding with IBM was spent deconstructing application integration and cross-organizational structures of support and interwork that I had spent 6 years building and maintaining. Handing off different chunks of work (again, before the outsourcing, an Enterprise solution supported by one multi-disciplinary team) to different IBM GTS work silos that had no physical special relationship and no interworking history or habits. What we're talking about here is the notion of "left hand not knowing what the right hand is doing" ...

THAT was the IBM way of doing things, and nothing I've read about them over the past decade or so tells me it has changed.

As a GTS employee, professional technical training was deemed unnecessary, hence I had no access to any unless I paid for it myself and used my personal time ... the only training available was cheesy presentations or other web based garbage from the intranet, or casual / OJT style meetings with other staff who were NOT professional or expert trainers.

As a GTS employee, I had NO access to the expert and professional tools that IBM fricking made and sold to the same damn customers I was supposed to be supporting. Did we have expert and professional workflow / document management / ITIL aligned incident and problem management tools? NO, we had fricking Lotus Notes and email. Instead of upgrading to the newest and best software solutions for data center / IT management & support, we degraded everything down the simplest and least complex single function tools that no "best practices" organization on Earth would ever consider using.

And the people management paradigm ... employees ranked annually not against a static or shared goal or metric, but in relation to each other, and there was ALWAYS a "top 10 percent" and a "bottom ten percent" required by upper management ... a system that was sociopathic in it's nature because it encourages employees to NOT work together ... by screwing over one's coworkers, perhaps by not giving necessary information, timely support, assistance as needed or requested, one could potentially hurt their performance and make oneself look relatively better. That's a self-defeating system and it was encouraged by the way IBM ran things.

The "not invented here" ideology was embedded deeply in the souls of all senior IBMers I ever met or worked with ... if you come on board with any outside knowledge or experience, you must not dare to say "this way works better" because you'd be shut down before you could blink. The phrase "best practices" to them means "the way we've always done it".

IBM gave up on innovation long ago. Since the 90's the vast majority of their software has been bought, not built. Buy a small company, strip out the innovation, slap an IBM label on it, sell it as the next coming of Jesus even though they refuse to expend any R&D to push the product to the next level ... damn near everything IBM sold was gentrified, never cutting edge.

And don't get me started on sales practices ... tell the customer how product XYZ is a guaranteed moonshot, they'll be living on lunar real estate in no time at all, and after all the contracts are signed hand the customer a box of nuts & bolts and a letter telling them where they can look up instructions on how to build their own moon rocket. Or for XX dollars more a year, hire a Professional Services IBMer to build it for them.

I have no sympathy for IBM. They need a clean sweep throughout upper management, especially any of the old True Blue hard-core IBMers.

[Oct 30, 2018] I have worked at IBM 17 years and have worried about being layed off for about 11 of them. Moral is in the toilet. Bonuses for the rank and file are in the under 1% range while the CEO gets millions

Notable quotes:
"... Adjusting for inflation, I make $6K less than I did my first day. My group is a handful of people as at least 1/2 have quit or retired. To support our customers, we used to have several people, now we have one or two and if someone is sick or on vacation, our support structure is to hope nothing breaks. ..."
Oct 30, 2018 | features.propublica.org

Buzz , Friday, March 23, 2018 12:00 PM

I've worked there 17 years and have worried about being layed off for about 11 of them. Moral is in the toilet. Bonuses for the rank and file are in the under 1% range while the CEO gets millions. Pay raises have been non existent or well under inflation for years.

Adjusting for inflation, I make $6K less than I did my first day. My group is a handful of people as at least 1/2 have quit or retired. To support our customers, we used to have several people, now we have one or two and if someone is sick or on vacation, our support structure is to hope nothing breaks.

We can't keep millennials because of pay, benefits and the expectation of being available 24/7 because we're shorthanded. As the unemployment rate drops, more leave to find a different job, leaving the old people as they are less willing to start over with pay, vacation, moving, selling a house, pulling kids from school, etc.

The younger people are generally less likely to be willing to work as needed on off hours or to pull work from a busier colleague.

I honestly have no idea what the plan is when the people who know what they are doing start to retire, we are way top heavy with 30-40 year guys who are on their way out, very few of the 10-20 year guys due to hiring freezes and we can't keep new people past 2-3 years. It's like our support business model is designed to fail.

[Oct 30, 2018] Sam Palmisano now infamous Roadmap 2015 ran the company into the ground through its maniacal focus on increasing EPS at any and all costs. Literally.

Oct 30, 2018 | features.propublica.org

GoingGone , Friday, April 13, 2018 6:06 PM

As a 25yr+ vet of IBM, I can confirm that this article is spot-on true. IBM used to be a proud and transparent company that clearly demonstrated that it valued its employees as much as it did its stock performance or dividend rate or EPS, simply because it is good for business. Those principles helped make and keep IBM atop the business world as the most trusted international brand and business icon of success for so many years. In 2000, all that changed when Sam Palmisano became the CEO. Palmisano's now infamous "Roadmap 2015" ran the company into the ground through its maniacal focus on increasing EPS at any and all costs. Literally.

Like, its employees, employee compensation, benefits, skills, and education opportunities. Like, its products, product innovation, quality, and customer service.

All of which resulted in the devastation of its technical capability and competitiveness, employee engagement, and customer loyalty. Executives seemed happy enough as their compensation grew nicely with greater financial efficiencies, and Palisano got a sweet $270M+ exit package in 2012 for a job well done.

The new CEO, Ginni Rometty has since undergone a lot of scrutiny for her lack of business results, but she was screwed from day one. Of course, that doesn't leave her off the hook for the business practices outlined in the article, but what do you expect: she was hand picked by Palmisano and approved by the same board that thought Palmisano was golden.

People (and companies) who have nothing to hide, hide nothing. People (and companies) who are proud of their actions, share it proudly. IBM believes it is being clever and outsmarting employment discrimination laws and saving the company money while retooling its workforce. That may end up being so (but probably won't), but it's irrelevant. Through its practices, IBM has lost the trust of its employees, customers, and ironically, stockholders (just ask Warren Buffett), who are the very(/only) audience IBM was trying to impress. It's just a huge shame.

HiJinks , Sunday, March 25, 2018 3:07 AM
I agree with many who state the report is well done. However, this crap started in the early 1990s. In the late 1980s, IBM offered decent packages to retirement eligible employees. For those close to retirement age, it was a great deal - 2 weeks pay for every year of service (capped at 26 years) plus being kept on to perform their old job for 6 months (while collecting retirement, until the government stepped in an put a halt to it). Nobody eligible was forced to take the package (at least not to general knowledge). The last decent package was in 1991 - similar, but not able to come back for 6 months. However, in 1991, those offered the package were basically told take it or else. Anyone with 30 years of service or 15 years and 55 was eligible and anyone within 5 years of eligibility could "bridge" the difference. They also had to sign a form stating they would not sue IBM in order to get up to a years pay - not taxable per IRS documents back then (but IBM took out the taxes anyway and the IRS refused to return - an employee group had hired lawyers to get the taxes back, a failed attempt which only enriched the lawyers). After that, things went downhill and accelerated when Gerstner took over. After 1991, there were still a some workers who could get 30 years or more, but that was more the exception. I suspect the way the company has been run the past 25 years or so has the Watsons spinning in their graves. Gone are the 3 core beliefs - "Respect for the individual", "Service to the customer" and "Excellence must be a way of life".
ArnieTracey , Saturday, March 24, 2018 7:15 PM
IBM's policy reminds me of the "If a citizen = 30 y.o., then mass execute such, else if they run then hunt and kill them one by one" social policy in the Michael York movie "Logan's Run."

From Wiki, in case you don't know: "It depicts a utopian future society on the surface, revealed as a dystopia where the population and the consumption of resources are maintained in equilibrium by killing everyone who reaches the age of 30. The story follows the actions of Logan 5, a "Sandman" who has terminated others who have attempted to escape death, and is now faced with termination himself."

Jr Jr , Saturday, March 24, 2018 4:37 PM
Corporate loyalty has been gone for 25 years. This isnt surprising. But this age discrimination is blatantly illegal.

[Oct 30, 2018] This might just be the deal that kills IBM because there's no way that they don't do a writedown of 90% of the value of this acquisition within 5 years.

Oct 30, 2018 | arstechnica.com

afidel, 2018-10-29T13:17:22-04:00

tipoo wrote:
Kilroy420 wrote:
Perhaps someone can explain this... Red Hat's revenue and assets barely total about $5B. Even factoring in market share and capitalization, how the hey did IBM come up with $34B cash being a justifiable purchase price??

Honestly, why would Red Hat have said no?

You don't trade at your earnings, you trade at your share price, which for Red Hat and many other tech companies can be quite high on Price/Earnings. They were trading at 52 P/E. Investors factor in a bunch of things involving future growth, and particularly for any companies in the cloud can quite highly overvalue things.

A 25 year old company trading at a P/E of 52 was already overpriced, buying at more than 2x that is insane. This might just be the deal that kills IBM because there's no way that they don't do a writedown of 90% of the value of this acquisition within 5 years.

[Oct 30, 2018] The insttuinaliuzed stupidity of IBM brass is connected with the desire to get bonuses

Oct 30, 2018 | arstechnica.com

3 hours ago afidel wrote: show nested quotes Kilroy420 wrote: Perhaps someone can explain this... Red Hat's revenue and assets barely total about $5B. Even factoring in market share and capitalization, how the hey did IBM come up with $34B cash being a justifiable purchase price??

Honestly, why would Red Hat have said no?

You don't trade at your earnings, you trade at your share price, which for Red Hat and many other tech companies can be quite high on Price/Earnings. They were trading at 52 P/E. Investors factor in a bunch of things involving future growth, and particularly for any companies in the cloud can quite highly overvalue things.
A 25 year old company trading at a P/E of 52 was already overpriced, buying at more than 2x that is insane. This might just be the deal that kills IBM because there's no way that they don't do a writedown of 90% of the value of this acquisition within 5 years.

OK. I did 10 years at IBM Boulder..

The problem isn't the purchase price or the probable write-down later.

The problem is going to be with the executives above it. One thing I noticed at IBM is that the executives needed to put their own stamp on operations to justify their bonuses. We were on a 2 year cycle of execs coming in and saying "Whoa.. things are too centralized, we need to decentralize", then the next exec coming in and saying "things are too decentralized, we need to centralize".

No IBM exec will get a bonus if they are over RedHat and exercise no authority over it. "We left it alone" generates nothing for the PBC. If they are in the middle of a re-org, then the specific metrics used to calculate their bonus can get waived. (Well, we took an unexpected hit this year on sales because we are re-orging to better optimize our resources). With that P/E, no IBM exec is going to get a bonus based on metrics. IBM execs do *not* care about what is good for IBM's business. They are all about gaming the bonuses. Customers aren't even on the list of things they care about.

I am reminded of a coworker who quit in frustration back in the early 2000's due to just plain bad management. At the time, IBM was working on Project Monterey. This was supposed to be a Unix system across multiple architectures. My coworker sent his resignation out to all hands basically saying "This is stupid. we should just be porting Linux". He even broke down the relative costs. Billions for Project Monterey vs thousands for a Linux port. Six months later, we get an email from on-high announcing this great new idea that upper management had come up with. It would be far cheaper to just support Linux than write a new OS.. you'd think that would be a great thing, but the reality is that all it did was create the AIX 5L family, which was AIX 5 with an additional CD called Linux ToolBox, which was loaded with a few Linux programs ported to a specific version of AIX, but never kept current. IBM can make even great decisions into bad decisions.

In May 2007, IBM announced the transition to LEAN. Sounds great, but this LEAN was not on the manufacturing side of the equation. It was in e-Business under Global Services. The new procedures were basically call center operations. Now, prior to this, IBM would have specific engineers for specific accounts. So, Major Bank would have that AIX admin, that Sun admin, that windows admin, etc. They knew who to call and those engineers would have docs and institutional knowledge of that account. During the LEAN announcement, Bob Moffat described the process. Accounts would now call an 800 number and the person calling would open a ticket. This would apply to *any* work request as all the engineers would be pooled and whoever had time would get the ticket. So, reset a password - ticket. So, load a tape - ticket. Install 20 servers - ticket.

Now, the kicker to this was that the change was announced at 8AM and went live at noon. IBM gave their customers who represented over $12 Billion in contracts 4 *hours* notice that they were going to strip their support teams and treat them like a call center. (I will leave it as an exercise to the reader to determine if they would accept that kind of support after spending hundreds of millions on a support contract).

(The pilot program for the LEAN process had its call center outsourced overseas, if that helps you try to figure out why IBM wanted to get rid of dedicated engineers and move to a call-center operation).

[Oct 30, 2018] Arbitrators overwhelmingly favor employers

Oct 30, 2018 | features.propublica.org

When it comes to employment claims, studies have found that arbitrators overwhelmingly favor employers. Research by Cornell University law and labor relations specialist Alexander Colvin found that workers win only 19 percent of the time when their cases are arbitrated. By contrast, they win 36 percent of the time when they go to federal court, and 57 percent in state courts. Average payouts when an employee wins follow a similar pattern.

Given those odds, and having signed away their rights to go to court, some laid-off IBM workers have chosen the one independent forum companies can't deny them: the U.S. Equal Employment Opportunity Commission. That's where Moos, the Long Beach systems security specialist, and several of her colleagues, turned for help when they were laid off. In their complaints to the agency, they said they'd suffered age discrimination because of the company's effort to "drastically change the IBM employee age mix to be seen as a startup."

In its formal reply to the EEOC, IBM said that age couldn't have been a factor in their dismissals. Among the reasons it cited: The managers who decided on the layoffs were in their 40s and therefore older too.

[Oct 30, 2018] I see the Performance Improvement Plan (PIP) problem as its nearly impossible to take the fact that we know PIP is a scam to court. IBM will say its an issue with you, your performance nose dived and your manager tried to fix that. You have to not only fight those simple statements, but prove that PIP is actually systematic worker abuse.

Notable quotes:
"... It is in fact a modern corporate horror story; it's also life at a modern corporation, period. ..."
Oct 30, 2018 | features.propublica.org

Cindy Gallop , Thursday, March 22, 2018 10:24 AM

This makes for absolutely horrifying, chills-down-your-spine reading. A modern corporate horror story - worthy of a 'Black Mirror' episode. Phenomenal reporting by Ariana Tobin and Peter Gosselin. Thank you for exposing this. I hope this puts an end to this at IBM and makes every other company and industry doing this in covert and illegal ways think twice about continuing.
Daisy S Cindy Gallop , in reply to" aria-label="in reply to"> •
Agree..a well written expose'. I've been a victim of IBM's "PIP" (Performance Improvement Plan) strategy, not because of my real performance mind you, but rather, I wasn't billing hours between projects and it was hurting my unit's bottom line. The way IBM instructs management to structure the PIP, it's almost impossible to dig your way out, and it's intentional. If you have a PIP on your record, nobody in IBM wants to touch you, so in effect you're already gone.
Paul Brinker Daisy S , in reply to" aria-label="in reply to"> •
I see the PIP problem as its nearly impossible to take the fact that we know PIP is a scam to court. IBM will say its an issue with you, your performance nose dived and your manager tried to fix that. You have to not only fight those simple statements, but prove that PIP is actually systematic worker abuse.
dragonflap Cindy Gallop , in reply to" aria-label="in reply to"> •
Cindy, they've been doing this for at least 15-20 years, or even longer according to some of the previous comments. It is in fact a modern corporate horror story; it's also life at a modern corporation, period.
Maria Stone dragonflap , in reply to" aria-label="in reply to"> •
This started happening in the 1990's when they added 5 years to your age and years of service and ASKED you to retire.
Matt_Z , Thursday, March 22, 2018 6:01 PM
After over 35 years working there, 19 of them as a manager sending out more of those notification letters than I care to remember, I can vouch for the accuracy of this investigative work. It's an incredibly toxic and hostile environment and has been for the last 5 or so years. One of the items I was appraised on annually was how many US jobs I moved offshore. It was a relief when I received my notification letter after a two minute phone call telling me it was on the way. Sleeping at night and looking myself in the mirror aren't as hard as they were when I worked there.
IBM will never regain any semblance of their former glory (or profit) until they begin to treat employees well again.
With all the offshoring and resource actions with no backfill over the last 10 years, so much is broken. Customers suffer almost as much as the employees.
I don't know how in the world they ended up on that LinkedIn list. Based on my fairly recent experience there are a half dozen happy employees in the US, and most of them are C level.
Jennifer , Thursday, March 22, 2018 9:42 AM
Well done. It squares well with my 18 years at IBM, watching resource action after resource action and hearing what my (unusually honest) manager told me. Things got progressively worse from 2012 onward. I never realized how stressful it was to live under the shadow of impending layoffs until I finally found the courage to leave in 2015. Best decision I've made.

IBM answers to its shareholders, period. Employees are an afterthought - simply a means to an end. It's shameful. (That's not to say that individual people managers feel that way. I'm speaking about IBM executives.)

Herb Jennifer , in reply to" aria-label="in reply to"> •
Well, they almost answer to their shareholders, but that's after the IBM executives take their share. Ginni's compensation is tied to stock price (apparently not earnings) and buy backs maintain the stock price.
Ribit , Thursday, March 22, 2018 8:17 AM
If the criteria for layoff is being allegedly overpaid and allegedly a poor performer, then it follows that Grinnin' Jenny should have been let go long ago.
Mr. Hand Ribit , in reply to" aria-label="in reply to"> •
Yes! After the 4th of those 22 consecutive quarters of declining revenues. And she's no spring chicken either. ;-)
DDRLSGC Ribit ,
Especially these CEOs who have ran their companies into the ground for the last 38 years.
owswitch , Thursday, March 22, 2018 8:58 AM
Just another fine example of how people become disposable.
And, when it comes to cost containment and profit maximization, there is no place for ethics in American business.
Businesses can lie just as well as politicians.

Millennials are smart to avoid this kind of problem by remaining loyal only to themselves. Companies certainly define anyone as replaceable - even their over-paid CEO's.

DDRLSGC owswitch

The millennials saw what happen to their parents and grandparents getting screwed over after a life time of work and loyalty. You can't blame them for not caring about so called traditional American work ethics and then they are attacked for not having them when the business leaders threw away all those value decades ago.

Some of these IBM people have themselves to blame for cutting their own economic throats for fighting against unions, putting in politicians who are pro-business and thinking that their education and high paying white collar STEM jobs will give them economic immunity.

If America was more of a free market and free enterprise instead of being more of a close market of oligarchies and monopolies, and strong government regulations, companies would think twice about treating their workforce badly because they know their workforce would leave for other companies or start up their own companies without too much of a hassle.

HiJinks DDRLSGC

Under the old IBM you could not get a union as workers were treated with dignity and respect - see the 3 core beliefs. Back then a union would not have accomplished anything.

DDRLSGC HiJinks
Doesn't matter if it was the old IBM or new IBM, you wonder how many still actually voted against their economic interests in the political elections that in the long run undermine labor rights in this country.
HiJinks DDRLSGC
So one shouldn't vote? Neither party cares about the average voter except at election time. Both sell out to Big Business - after all, that's where the big campaign donations come from. If you believe only one party favors Big Business, then you have been watching to much "fake news". Even the unions know they have been sold out by both and are wising up. How many of those jobs were shipped overseas the past 25 years.
DDRLSGC HiJinks ,
No, they should have been more active in voting for politicians who would look after the workers' rights in this country for the last 38 years plus ensuring that Congressional people and the president would not be packing the court system with pro-business judges. Sorry, but it is the Big Business that have been favoring the Republican Party for a long, long time and the jobs have been shipped out for the last 38 years.

[Oct 30, 2018] The women who run large US companies are as shallow and ruthless as the sociopathic men.

Oct 30, 2018 | features.propublica.org

Bob Gort , Saturday, March 31, 2018 9:49 PM

Age discrimination has been standard operating procedure in IT for at least 30 years. And there are no significant consequences, if any consequences at all, for doing it in a blatant fashion. The companies just need to make sure the quota of H1B visas is increased when they are doing this on an IBM scale!
900DeadWomen Bob Gort , in reply to" aria-label="in reply to">
Age discrimination and a myriad other forms of discrimination have been standard operating procedure in the US. Period. Full stop. No need to equivocate.
Anon , Friday, March 30, 2018 12:49 PM
Wait for a few years and we can see the same happening to "millenials".

And the women who run these companies are as shallow and ruthless as the sociopathic men.

[Oct 30, 2018] Soon after I started, the company fired hundreds of 50-something employees and put we "kids" in their jobs. Seeing that employee loyalty was a one way street at that place, I left after a couple of years. Best career move I ever made.

Oct 30, 2018 | features.propublica.org

Al Romig , Wednesday, April 18, 2018 5:20 AM

As a new engineering graduate, I joined a similar-sized multinational US-based company in the early '70s. Their recruiting pitch was, "Come to work here, kid. Do your job, keep your nose clean, and you will enjoy great, secure work until you retire on easy street".

Soon after I started, the company fired hundreds of 50-something employees and put we "kids" in their jobs. Seeing that employee loyalty was a one way street at that place, I left after a couple of years. Best career move I ever made.

GoingGone , Friday, April 13, 2018 6:06 PM
As a 25yr+ vet of IBM, I can confirm that this article is spot-on true. IBM used to be a proud and transparent company that clearly demonstrated that it valued its employees as much as it did its stock performance or dividend rate or EPS, simply because it is good for business. Those principles helped make and keep IBM atop the business world as the most trusted international brand and business icon of success for so many years. In 2000, all that changed when Sam Palmisano became the CEO. Palmisano's now infamous "Roadmap 2015" ran the company into the ground through its maniacal focus on increasing EPS at any and all costs. Literally. Like, its employees, employee compensation, benefits, skills, and education opportunities. Like, its products, product innovation, quality, and customer service. All of which resulted in the devastation of its technical capability and competitiveness, employee engagement, and customer loyalty. Executives seemed happy enough as their compensation grew nicely with greater financial efficiencies, and Palisano got a sweet $270M+ exit package in 2012 for a job well done. The new CEO, Ginni Rometty has since undergone a lot of scrutiny for her lack of business results, but she was screwed from day one. Of course, that doesn't leave her off the hook for the business practices outlined in the article, but what do you expect: she was hand picked by Palmisano and approved by the same board that thought Palmisano was golden.
Paul V Sutera , Tuesday, April 3, 2018 7:33 PM
In 1994, I saved my job at IBM for the first time, and survived. But I was 36 years old. I sat down at the desk of a man in his 50s, and found a few odds and ends left for me in the desk. Almost 20 years later, it was my turn to go. My health and well-being is much better now. Less money but better health. The sins committed by management will always be: "I was just following orders".

[Oct 30, 2018] Verizon is making similar moves, only sending them to third-party outsourcers instead of laying off.

Oct 30, 2018 | arstechnica.com

atomic.banjo , Smack-Fu Master, in training et Subscriptor 5 hours ago New Poster

Legatum_of_Kain wrote:
It is not a good thing towards employees that are getting fired before retirenment.

https://features.propublica.org/ibm/ibm ... n-workers/

Verizon is making similar moves, only sending them to third-party outsourcers instead of laying off.

[Oct 30, 2018] IBM age discrimination

Notable quotes:
"... Correction, March 24, 2018: Eileen Maroney lives in Aiken, South Carolina. The name of her city was incorrect in the original version of this story. ..."
Oct 30, 2018 | features.propublica.org

Consider, for example, a planning presentation that former IBM executives said was drafted by heads of a business unit carved out of IBM's once-giant software group and charged with pursuing the "C," or cloud, portion of the company's CAMS strategy.

The presentation laid out plans for substantially altering the unit's workforce. It was shown to company leaders including Diane Gherson, the senior vice president for human resources, and James Kavanaugh, recently elevated to chief financial officer. Its language was couched in the argot of "resources," IBM's term for employees, and "EP's," its shorthand for early professionals or recent college graduates.

Among the goals: "Shift headcount mix towards greater % of Early Professional hires." Among the means: "[D]rive a more aggressive performance management approach to enable us to hire and replace where needed, and fund an influx of EPs to correct seniority mix." Among the expected results: "[A] significant reduction in our workforce of 2,500 resources."

A slide from a similar presentation prepared last spring for the same leaders called for "re-profiling current talent" to "create room for new talent." Presentations for 2015 and 2016 for the 50,000-employee software group also included plans for "aggressive performance management" and emphasized the need to "maintain steady attrition to offset hiring."

IBM declined to answer questions about whether either presentation was turned into company policy. The description of the planned moves matches what hundreds of older ex-employees told ProPublica they believe happened to them: They were ousted because of their age. The company used their exits to hire replacements, many of them young; to ship their work overseas; or to cut its overall headcount.

Ed Alpern, now 65, of Austin, started his 39-year run with IBM as a Selectric typewriter repairman. He ended as a project manager in October of 2016 when, he said, his manager told him he could either leave with severance and other parting benefits or be given a bad job review -- something he said he'd never previously received -- and risk being fired without them.

Albert Poggi, now 70, was a three-decade IBM veteran and ran the company's Palisades, New York, technical center where clients can test new products. When notified in November of 2016 he was losing his job to layoff, he asked his bosses why, given what he said was a history of high job ratings. "They told me," he said, "they needed to fill it with someone newer."

The presentations from the software group, as well as the stories of ex-employees like Alpern and Poggi, square with internal documents from two other major IBM business units. The documents for all three cover some or all of the years from 2013 through the beginning of 2018 and deal with job assessments, hiring, firing and layoffs.

The documents detail practices that appear at odds with how IBM says it treats its employees. In many instances, the practices in effect, if not intent, tilt against the company's older U.S. workers.

For example, IBM spokespeople and lawyers have said the company never considers a worker's age in making decisions about layoffs or firings.

But one 2014 document reviewed by ProPublica includes dates of birth. An ex-IBM employee familiar with the process said executives from one business unit used it to decide about layoffs or other job changes for nearly a thousand workers, almost two-thirds of them over 50.

Documents from subsequent years show that young workers are protected from cuts for at least a limited period of time. A 2016 slide presentation prepared by the company's global technology services unit, titled "U.S. Resource Action Process" and used to guide managers in layoff procedures, includes bullets for categories considered "ineligible" for layoff. Among them: "early professional hires," meaning recent college graduates.

In responding to age-discrimination complaints that ex-employees file with the EEOC, lawyers for IBM say that front-line managers make all decisions about who gets laid off, and that their decisions are based strictly on skills and job performance, not age.

But ProPublica reviewed spreadsheets that indicate front-line managers hardly acted alone in making layoff calls. Former IBM managers said the spreadsheets were prepared for upper-level executives and kept continuously updated. They list hundreds of employees together with codes like "lift and shift," indicating that their jobs were to be lifted from them and shifted overseas, and details such as whether IBM's clients had approved the change.

An examination of several of the spreadsheets suggests that, whatever the criteria for assembling them, the resulting list of those marked for layoff was skewed toward older workers. A 2016 spreadsheet listed more than 400 full-time U.S. employees under the heading "REBAL," which refers to "rebalancing," the process that can lead to laying off workers and either replacing them or shifting the jobs overseas. Using the job search site LinkedIn, ProPublica was able to locate about 100 of these employees and then obtain their ages through public records. Ninety percent of those found were 40 or older. Seventy percent were over 50.

IBM frequently cites its history of encouraging diversity in its responses to EEOC complaints about age discrimination. "IBM has been a leader in taking positive actions to ensure its business opportunities are made available to individuals without regard to age, race, color, gender, sexual orientation and other categories," a lawyer for the company wrote in a May 2017 letter. "This policy of non-discrimination is reflected in all IBM business activities."

But ProPublica found at least one company business unit using a point system that disadvantaged older workers. The system awarded points for attributes valued by the company. The more points a person garnered, according to the former employee, the more protected she or he was from layoff or other negative job change; the fewer points, the more vulnerable.

The arrangement appears on its face to favor younger newcomers over older veterans. Employees were awarded points for being relatively new at a job level or in a particular role. Those who worked for IBM for fewer years got more points than those who'd been there a long time.

The ex-employee familiar with the process said a 2014 spreadsheet from that business unit, labeled "IBM Confidential," was assembled to assess the job prospects of more than 600 high-level employees, two-thirds of them from the U.S. It included employees' years of service with IBM, which the former employee said was used internally as a proxy for age. Also listed was an assessment by their bosses of their career trajectories as measured by the highest job level they were likely to attain if they remained at the company, as well as their point scores.

The tilt against older workers is evident when employees' years of service are compared with their point scores. Those with no points and therefore most vulnerable to layoff had worked at IBM an average of more than 30 years; those with a high number of points averaged half that.

Perhaps even more striking is the comparison between employees' service years and point scores on the one hand and their superiors' assessments of their career trajectories on the other.

Along with many American employers, IBM has argued it needs to shed older workers because they're no longer at the top of their games or lack "contemporary" skills.

But among those sized up in the confidential spreadsheet, fully 80 percent of older employees -- those with the most years of service but no points and therefore most vulnerable to layoff -- were rated by superiors as good enough to stay at their current job levels or be promoted. By contrast, only a small percentage of younger employees with a high number of points were similarly rated.

"No major company would use tools to conduct a layoff where a disproportionate share of those let go were African Americans or women," said Cathy Ventrell-Monsees, senior attorney adviser with the EEOC and former director of age litigation for the senior lobbying giant AARP. "There's no difference if the tools result in a disproportionate share being older workers."

In addition to the point system that disadvantaged older workers in layoffs, other documents suggest that IBM has made increasingly aggressive use of its job-rating machinery to pave the way for straight-out firings, or what the company calls "management-initiated separations." Internal documents suggest that older workers were especially targets.

Like in many companies, IBM employees sit down with their managers at the start of each year and set goals for themselves. IBM graded on a scale of 1 to 4, with 1 being top-ranked.

Those rated as 3 or 4 were given formal short-term goals known as personal improvement plans, or PIPs. Historically many managers were lenient, especially toward those with 3s whose ratings had dropped because of forces beyond their control, such as a weakness in the overall economy, ex-employees said.

But within the past couple of years, IBM appears to have decided the time for leniency was over. For example, a software group planning document for 2015 said that, over and above layoffs, the unit should seek to fire about 3,000 of the unit's 50,000-plus workers.

To make such deep cuts, the document said, executives should strike an "aggressive performance management posture." They needed to double the share of employees given low 3 and 4 ratings to at least 6.6 percent of the division's workforce. And because layoffs cost the company more than outright dismissals or resignations, the document said, executives should make sure that more than 80 percent of those with low ratings get fired or forced to quit.

Finally, the 2015 document said the division should work "to attract the best and brightest early professionals" to replace up to two-thirds of those sent packing. A more recent planning document -- the presentation to top executives Gherson and Kavanaugh for a business unit carved out of the software group -- recommended using similar techniques to free up money by cutting current employees to fund an "influx" of young workers.

In a recent interview, Poggi said he was resigned to being laid off. "Everybody at IBM has a bullet with their name on it," he said. Alpern wasn't nearly as accepting of being threatened with a poor job rating and then fired.

Alpern had a particular reason for wanting to stay on at IBM, at least until the end of last year. His younger son, Justin, then a high school senior, had been named a National Merit semifinalist. Alpern wanted him to be able to apply for one of the company's Watson scholarships. But IBM had recently narrowed eligibility so only the children of current employees could apply, not also retirees as it was until 2014.

Alpern had to make it through December for his son to be eligible.

But in August, he said, his manager ordered him to retire. He sought to buy time by appealing to superiors. But he said the manager's response was to threaten him with a bad job review that, he was told, would land him on a PIP, where his work would be scrutinized weekly. If he failed to hit his targets -- and his managers would be the judges of that -- he'd be fired and lose his benefits.

Alpern couldn't risk it; he retired on Oct. 31. His son, now a freshman on the dean's list at Texas A&M University, didn't get to apply.

"I can think of only a couple regrets or disappointments over my 39 years at IBM,"" he said, "and that's one of them."

'Congratulations on Your Retirement!'

Like any company in the U.S., IBM faces few legal constraints to reducing the size of its workforce. And with its no-disclosure strategy, it eliminated one of the last regular sources of information about its employment practices and the changing size of its American workforce.

But there remained the question of whether recent cutbacks were big enough to trigger state and federal requirements for disclosure of layoffs. And internal documents, such as a slide in a 2016 presentation titled "Transforming to Next Generation Digital Talent," suggest executives worried that "winning the talent war" for new young workers required IBM to improve the "attractiveness of (its) culture and work environment," a tall order in the face of layoffs and firings.

So the company apparently has sought to put a softer face on its cutbacks by recasting many as voluntary rather than the result of decisions by the firm. One way it has done this is by converting many layoffs to retirements.

Some ex-employees told ProPublica that, faced with a layoff notice, they were just as happy to retire. Others said they felt forced to accept a retirement package and leave. Several actively objected to the company treating their ouster as a retirement. The company nevertheless processed their exits as such.

Project manager Ed Alpern's departure was treated in company paperwork as a voluntary retirement. He didn't see it that way, because the alternative he said he was offered was being fired outright.

Lorilynn King, a 55-year-old IT specialist who worked from her home in Loveland, Colorado, had been with IBM almost as long as Alpern by May 2016 when her manager called to tell her the company was conducting a layoff and her name was on the list.

King said the manager told her to report to a meeting in Building 1 on IBM's Boulder campus the following day. There, she said, she found herself in a group of other older employees being told by an IBM human resources representative that they'd all be retiring. "I have NO intention of retiring," she remembers responding. "I'm being laid off."

ProPublica has collected documents from 15 ex-IBM employees who got layoff notices followed by a retirement package and has talked with many others who said they received similar paperwork. Critics say the sequence doesn't square well with the law.

"This country has banned mandatory retirement," said Seiner, the University of South Carolina law professor and former EEOC appellate lawyer. "The law says taking a retirement package has to be voluntary. If you tell somebody 'Retire or we'll lay you off or fire you,' that's not voluntary."

Until recently, the company's retirement paperwork included a letter from Rometty, the CEO, that read, in part, "I wanted to take this opportunity to wish you well on your retirement While you may be retiring to embark on the next phase of your personal journey, you will always remain a valued and appreciated member of the IBM family." Ex-employees said IBM stopped sending the letter last year.

IBM has also embraced another practice that leads workers, especially older ones, to quit on what appears to be a voluntary basis. It substantially reversed its pioneering support for telecommuting, telling people who've been working from home for years to begin reporting to certain, often distant, offices. Their other choice: Resign.

David Harlan had worked as an IBM marketing strategist from his home in Moscow, Idaho, for 15 years when a manager told him last year of orders to reduce the performance ratings of everybody at his pay grade. Then in February last year, when he was 50, came an internal video from IBM's new senior vice president, Michelle Peluso, which announced plans to improve the work of marketing employees by ordering them to work "shoulder to shoulder." Those who wanted to stay on would need to "co-locate" to offices in one of six cities.

Early last year, Harlan received an email congratulating him on "the opportunity to join your team in Raleigh, North Carolina." He had 30 days to decide on the 2,600-mile move. He resigned in June.

David Harlan worked for IBM for 15 years from his home in Moscow, Idaho, where he also runs a drama company. Early last year, IBM offered him a choice: Move 2,600 miles to Raleigh-Durham to begin working at an office, or resign. He left in June. (Rajah Bose for ProPublica)

After the Peluso video was leaked to the press, an IBM spokeswoman told the Wall Street Journal that the " vast majority " of people ordered to change locations and begin reporting to offices did so. IBM Vice President Ed Barbini said in an initial email exchange with ProPublica in July that the new policy affected only about 2,000 U.S. employees and that "most" of those had agreed to move.

But employees across a wide range of company operations, from the systems and technology group to analytics, told ProPublica they've also been ordered to co-locate in recent years. Many IBMers with long service said that they quit rather than sell their homes, pull children from school and desert aging parents. IBM declined to say how many older employees were swept up in the co-location initiative.

"They basically knew older employees weren't going to do it," said Eileen Maroney, a 63-year-old IBM product manager from Aiken, South Carolina, who, like Harlan, was ordered to move to Raleigh or resign. "Older people aren't going to move. It just doesn't make any sense." Like Harlan, Maroney left IBM last June.

Having people quit rather than being laid off may help IBM avoid disclosing how much it is shrinking its U.S. workforce and where the reductions are occurring.

Under the federal WARN Act , adopted in the wake of huge job cuts and factory shutdowns during the 1980s, companies laying off 50 or more employees who constitute at least one-third of an employer's workforce at a site have to give advance notice of layoffs to the workers, public agencies and local elected officials.

Similar laws in some states where IBM has a substantial presence are even stricter. California, for example, requires advanced notice for layoffs of 50 or more employees, no matter what the share of the workforce. New York requires notice for 25 employees who make up a third.

Because the laws were drafted to deal with abrupt job cuts at individual plants, they can miss reductions that occur over long periods among a workforce like IBM's that was, at least until recently, widely dispersed because of the company's work-from-home policy.

IBM's training sessions to prepare managers for layoffs suggest the company was aware of WARN thresholds, especially in states with strict notification laws such as California. A 2016 document entitled "Employee Separation Processing" and labeled "IBM Confidential" cautions managers about the "unique steps that must be taken when processing separations for California employees."

A ProPublica review of five years of WARN disclosures for a dozen states where the company had large facilities that shed workers found no disclosures in nine. In the other three, the company alerted authorities of just under 1,000 job cuts -- 380 in California, 369 in New York and 200 in Minnesota. IBM's reported figures are well below the actual number of jobs the company eliminated in these states, where in recent years it has shuttered, sold off or leveled plants that once employed vast numbers.

By contrast, other employers in the same 12 states reported layoffs last year alone totaling 215,000 people. They ranged from giant Walmart to Ostrom's Mushroom Farms in Washington state.

Whether IBM operated within the rules of the WARN act, which are notoriously fungible, could not be determined because the company declined to provide ProPublica with details on its layoffs.

A Second Act, But Poorer

W ith 35 years at IBM under his belt, Ed Miyoshi had plenty of experience being pushed to take buyouts, or early retirement packages, and refusing them. But he hadn't expected to be pushed last fall.

Miyoshi, of Hopewell Junction, New York, had some years earlier launched a pilot program to improve IBM's technical troubleshooting. With the blessing of an IBM vice president, he was busily interviewing applicants in India and Brazil to staff teams to roll the program out to clients worldwide.

The interviews may have been why IBM mistakenly assumed Miyoshi was a manager, and so emailed him to eliminate the one U.S.-based employee still left in his group.

"That was me," Miyoshi realized.

In his sign-off email to colleagues shortly before Christmas 2016, Miyoshi, then 57, wrote: "I am too young and too poor to stop working yet, so while this is good-bye to my IBM career, I fully expect to cross paths with some of you very near in the future."

He did, and perhaps sooner than his colleagues had expected; he started as a subcontractor to IBM about two weeks later, on Jan. 3.

Miyoshi is an example of older workers who've lost their regular IBM jobs and been brought back as contractors. Some of them -- not Miyoshi -- became contract workers after IBM told them their skills were out of date and no longer needed.

Employment law experts said that hiring ex-employees as contractors can be legally dicey. It raises the possibility that the layoff of the employee was not for the stated reason but perhaps because they were targeted for their age, race or gender.

IBM appears to recognize the problem. Ex-employees say the company has repeatedly told managers -- most recently earlier this year -- not to contract with former employees or sign on with third-party contracting firms staffed by ex-IBMers. But ProPublica turned up dozens of instances where the company did just that.

Only two weeks after IBM laid him off in December 2016, Ed Miyoshi of Hopewell Junction, New York, started work as a subcontractor to the company. But he took a $20,000-a-year pay cut. "I'm not a millionaire, so that's a lot of money to me," he says. (Demetrius Freeman for ProPublica)

Responding to a question in a confidential questionnaire from ProPublica, one 35-year company veteran from New York said he knew exactly what happened to the job he left behind when he was laid off. "I'M STILL DOING IT. I got a new gig eight days after departure, working for a third-party company under contract to IBM doing the exact same thing."

In many cases, of course, ex-employees are happy to have another job, even if it is connected with the company that laid them off.

Henry, the Columbus-based sales and technical specialist who'd been with IBM's "resiliency services" unit, discovered that he'd lost his regular IBM job because the company had purchased an Indian firm that provided the same services. But after a year out of work, he wasn't going to turn down the offer of a temporary position as a subcontractor for IBM, relocating data centers. It got money flowing back into his household and got him back where he liked to be, on the road traveling for business.

The compensation most ex-IBM employees make as contractors isn't comparable. While Henry said he collected the same dollar amount, it didn't include health insurance, which cost him $1,325 a month. Miyoshi said his paycheck is 20 percent less than what he made as an IBM regular.

"I took an over $20,000 hit by becoming a contractor. I'm not a millionaire, so that's a lot of money to me," Miyoshi said.

And lower pay isn't the only problem ex-IBM employees-now-subcontractors face. This year, Miyoshi's payable hours have been cut by an extra 10 "furlough days." Internal documents show that IBM repeatedly furloughs subcontractors without pay, often for two, three or more weeks a quarter. In some instances, the furloughs occur with little advance notice and at financially difficult moments. In one document, for example, it appears IBM managers, trying to cope with a cost overrun spotted in mid-November, planned to dump dozens of subcontractors through the end of the year, the middle of the holiday season.

Former IBM employees now on contract said the company controls costs by notifying contractors in the midst of projects they have to take pay cuts or lose the work. Miyoshi said that he originally started working for his third-party contracting firm for 10 percent less than at IBM, but ended up with an additional 10 percent cut in the middle of 2017, when IBM notified the contractor it was slashing what it would pay.

For many ex-employees, there are few ways out. Henry, for example, sought to improve his chances of landing a new full-time job by seeking assistance to finish a college degree through a federal program designed to retrain workers hurt by offshoring of jobs.

But when he contacted the Ohio state agency that administers the Trade Adjustment Assistance, or TAA, program, which provides assistance to workers who lose their jobs for trade-related reasons, he was told IBM hadn't submitted necessary paperwork. State officials said Henry could apply if he could find other IBM employees who were laid off with him, information that the company doesn't provide.

TAA is overseen by the Labor Department but is operated by states under individual agreements with Washington, so the rules can vary from state to state. But generally employers, unions, state agencies and groups of employers can petition for training help and cash assistance. Labor Department data compiled by the advocacy group Global Trade Watch shows that employers apply in about 40 percent of cases. Some groups of IBM workers have obtained retraining funds when they or their state have applied, but records dating back to the early 1990s show IBM itself has applied for and won taxpayer assistance only once, in 2008, for three Chicago-area workers whose jobs were being moved to India.

Teasing New Jobs

A s IBM eliminated thousands of jobs in 2016, David Carroll, a 52-year-old Austin software engineer, thought he was safe.

His job was in mobile development, the "M" in the company's CAMS strategy. And if that didn't protect him, he figured he was only four months shy of qualifying for a program that gives employees who leave within a year of their three-decade mark access to retiree medical coverage and other benefits.

But the layoff notice Carroll received March 2 gave him three months -- not four -- to come up with another job. Having been a manager, he said he knew the gantlet he'd have to run to land a new position inside IBM.

Still, he went at it hard, applying for more than 50 IBM jobs, including one for a job he'd successfully done only a few years earlier. For his effort, he got one offer -- the week after he'd been forced to depart. He got severance pay but lost access to what would have been more generous benefits.

Edward Kishkill, then 60, of Hillsdale, New Jersey, had made a similar calculation.

A senior systems engineer, Kishkill recognized the danger of layoffs, but assumed he was immune because he was working in systems security, the "S" in CAMS and another hot area at the company.

The precaution did him no more good than it had Carroll. Kishkill received a layoff notice the same day, along with 17 of the 22 people on his systems security team, including Diane Moos. The notice said that Kishkill could look for other jobs internally. But if he hadn't landed anything by the end of May, he was out.

With a daughter who was a senior in high school headed to Boston University, he scrambled to apply, but came up dry. His last day was May 31, 2016.

For many, the fruitless search for jobs within IBM is the last straw, a final break with the values the company still says it embraces. Combined with the company's increasingly frequent request that departing employees train their overseas replacements, it has left many people bitter. Scores of ex-employees interviewed by ProPublica said that managers with job openings told them they weren't allowed to hire from layoff lists without getting prior, high-level clearance, something that's almost never given.

ProPublica reviewed documents that show that a substantial share of recent IBM layoffs have involved what the company calls "lift and shift," lifting the work of specific U.S. employees and shifting it to specific workers in countries such as India and Brazil. For example, a document summarizing U.S. employment in part of the company's global technology services division for 2015 lists nearly a thousand people as layoff candidates, with the jobs of almost half coded for lift and shift.

Ex-employees interviewed by ProPublica said the lift-and-shift process required their extensive involvement. For example, shortly after being notified she'd be laid off, Kishkill's colleague, Moos, was told to help prepare a "knowledge transfer" document and begin a round of conference calls and email exchanges with two Indian IBM employees who'd be taking over her work. Moos said the interactions consumed much of her last three months at IBM.

Next Chapters

W hile IBM has managed to keep the scale and nature of its recent U.S. employment cuts largely under the public's radar, the company drew some unwanted attention during the 2016 presidential campaign, when then-candidate Donald Trump lambasted it for eliminating 500 jobs in Minnesota, where the company has had a presence for a half century, and shifting the work abroad.

The company also has caught flak -- in places like Buffalo, New York ; Dubuque, Iowa ; Columbia, Missouri , and Baton Rouge, Louisiana -- for promising jobs in return for state and local incentives, then failing to deliver. In all, according to public officials in those and other places, IBM promised to bring on 3,400 workers in exchange for as much as $250 million in taxpayer financing but has hired only about half as many.

After Trump's victory, Rometty, in a move at least partly aimed at courting the president-elect, pledged to hire 25,000 new U.S. employees by 2020. Spokesmen said the hiring would increase IBM's U.S. employment total, although, given its continuing job cuts, the addition is unlikely to approach the promised hiring total.

When The New York Times ran a story last fall saying IBM now has more employees in India than the U.S., Barbini, the corporate spokesman, rushed to declare, "The U.S. has always been and remains IBM's center of gravity." But his stream of accompanying tweets and graphics focused as much on the company's record for racking up patents as hiring people.

IBM has long been aware of the damage its job cuts can do to people. In a series of internal training documents to prepare managers for layoffs in recent years, the company has included this warning: "Loss of a job often triggers a grief reaction similar to what occurs after a death."

Most, though not all, of the ex-IBM employees with whom ProPublica spoke have weathered the loss and re-invented themselves.

Marjorie Madfis, the digital marketing strategist, couldn't land another tech job after her 2013 layoff, so she headed in a different direction. She started a nonprofit called Yes She Can Inc. that provides job skills development for young autistic women, including her 21-year-old daughter.

After almost two years of looking and desperate for useful work, Brian Paulson, the widely traveled IBM senior manager, applied for and landed a position as a part-time rural letter carrier in Plano, Texas. He now works as a contract project manager for a Las Vegas gaming and lottery firm.

Ed Alpern, who started at IBM as a Selectric typewriter repairman, watched his son go on to become a National Merit Scholar at Texas A&M University, but not a Watson scholarship recipient.

Lori King, the IT specialist and 33-year IBM veteran who's now 56, got in a parting shot. She added an addendum to the retirement papers the firm gave her that read in part: "It was never my plan to retire earlier than at least age 60 and I am not committing to retire. I have been informed that I am impacted by a resource action effective on 2016-08-22, which is my last day at IBM, but I am NOT retiring."

King has aced more than a year of government-funded coding boot camps and university computer courses, but has yet to land a new job.

David Harlan still lives in Moscow, Idaho, after refusing IBM's "invitation" to move to North Carolina, and is artistic director of the Moscow Art Theatre (Too).

Ed Miyoshi is still a technical troubleshooter working as a subcontractor for IBM.

Ed Kishkill, the senior systems engineer, works part time at a local tech startup, but pays his bills as an associate at a suburban New Jersey Staples store.

This year, Paul Henry was back on the road, working as an IBM subcontractor in Detroit, about 200 miles from where he lived in Columbus. On Jan. 8, he put in a 14-hour day and said he planned to call home before turning in. He died in his sleep.

Correction, March 24, 2018: Eileen Maroney lives in Aiken, South Carolina. The name of her city was incorrect in the original version of this story.

Do you have information about age discrimination at IBM?

Let us know.

Peter Gosselin joined ProPublica as a contributing reporter in January 2017 to cover aging. He has covered the U.S. and global economies for, among others, the Los Angeles Times and The Boston Globe, focusing on the lived experiences of working people. He is the author of "High Wire: The Precarious Financial Lives of American Families."

Ariana Tobin is an engagement reporter at ProPublica, where she works to cultivate communities to inform our coverage. She was previously at The Guardian and WNYC. Ariana has also worked as digital producer for APM's Marketplace and contributed to outlets including The New Republic , On Being , the St. Louis Beacon and Bustle .

Production by Joanna Brenner and Hannah Birch . Art direction by David Sleight . Illustrations by Richard Borge .

[Oct 30, 2018] Cutting 'Old Heads' at IBM

Notable quotes:
"... I took an early retirement package when IBM first started downsizing. I had 30 years with them, but I could see the writing on the wall so I got out. I landed an exec job with a biotech company some years later and inherited an IBM consulting team that were already engaged. I reviewed their work for 2 months then had the pleasure of terminating the contract and actually escorting the team off the premises because the work product was so awful. ..."
"... Every former or prospective IBM employee is a potential future IBM customer or partner. How you treat them matters! ..."
"... I advise IBM customers now. My biggest professional achievements can be measured in how much revenue IBM lost by my involvement - millions. Favorite is when IBM paid customer to stop the bleeding. ..."
Oct 30, 2018 | features.propublica.org

I took an early retirement package when IBM first started downsizing. I had 30 years with them, but I could see the writing on the wall so I got out. I landed an exec job with a biotech company some years later and inherited an IBM consulting team that were already engaged. I reviewed their work for 2 months then had the pleasure of terminating the contract and actually escorting the team off the premises because the work product was so awful.

They actually did a presentation of their interim results - but it was a 52 slide package that they had presented to me in my previous job but with the names and numbers changed. see more

DarthVaderMentor dauwkus , Thursday, April 5, 2018 4:43 PM

Intellectual Capital Re-Use! LOL! Not many people realize in IBM that many, if not all of the original IBM Consulting Group materials were made under the Type 2 Materials clause of the IBM Contract, which means the customers actually owned the IP rights of the documents. Can you imagine the mess if just one customer demands to get paid for every re-use of the IP that was developed for them and then re-used over and over again?
NoGattaca dauwkus , Monday, May 7, 2018 5:37 PM
Beautiful! Yea, these companies so fast to push experienced people who have dedicated their lives to the firm - how can you not...all the hours and commitment it takes - way underestimate the power of the network of those left for dead and their influence in that next career gig. Memories are long...very long when it comes to experiences like this.
davosil North_40 , Sunday, March 25, 2018 5:19 PM
True dat! Every former or prospective IBM employee is a potential future IBM customer or partner. How you treat them matters!
Playing Defense North_40 , Tuesday, April 3, 2018 4:41 PM
I advise IBM customers now. My biggest professional achievements can be measured in how much revenue IBM lost by my involvement - millions. Favorite is when IBM paid customer to stop the bleeding.

[Oct 30, 2018] It s all about making the numbers so the management can present a Potemkin Village of profits and ever-increasing growth sufficient to get bonuses. There is no relation to any sort of quality or technological advancement, just HR 3-card monte

Notable quotes:
"... It's no coincidence whatsoever that Diane Gherson, mentioned prominently in the article, blasted out an all-employees email crowing about IBM being a great place to work according to (ahem) LinkedIn. I desperately want to post a link to this piece in the corporate Slack, but that would get me fired immediately instead of in a few months at the next "resource action." It's been a whole 11 months since our division had one, so I know one is coming soon. ..."
"... I used to say when I was there that: "After every defeat, they pin medals on the generals and shoot the soldiers". ..."
"... 1990 is also when H-1B visa rules were changed so that companies no longer had to even attempt to hire an American worker as long as the job paid $60,000, which hasn't changed since. This article doesn't even mention how our work visa system facilitated and even rewarded this abuse of Americans. ..."
"... Well, starting in the 1980s, the American management was allowed by Reagan to get rid of its workforce. ..."
"... It's all about making the numbers so the management can present a Potemkin Village of profits and ever-increasing growth sufficient to get bonuses. There is no relation to any sort of quality or technological advancement, just HR 3-card monte. They have installed air bearing in Old Man Watson's coffin as it has been spinning ever faster ..."
"... Corporate America executive management is all about stock price management. Their bonus's in the millions of dollars are based on stock performance. With IBM's poor revenue performance since Ginny took over, profits can only be maintained by cost reduction. Look at the IBM executive's bonus's throughout the last 20 years and you can see that all resource actions have been driven by Palmisano's and Rominetty's greed for extravagant bonus's. ..."
"... Also worth noting is that IBM drastically cut the cap on it's severance pay calculation. Almost enough to make me regret not having retired before that changed. ..."
"... Yeah, severance started out at 2 yrs pay, went to 1 yr, then to 6 mos. and is now 1 month. ..."
"... You need to investigate AT&T as well, as they did the same thing. I was 'sold' by IBM to AT&T as part of he Network Services operation. AT&T got rid of 4000 of the 8000 US employees sent to AT&T within 3 years. Nearly everyone of us was a 'senior' employee. ..."
Oct 30, 2018 | disqus.com

dragonflap• 7 months ago I'm a 49-year-old SW engineer who started at IBM as part of an acquisition in 2000. I got laid off in 2002 when IBM started sending reqs to Bangalore in batches of thousands. After various adventures, I rejoined IBM in 2015 as part of the "C" organization referenced in the article.

It's no coincidence whatsoever that Diane Gherson, mentioned prominently in the article, blasted out an all-employees email crowing about IBM being a great place to work according to (ahem) LinkedIn. I desperately want to post a link to this piece in the corporate Slack, but that would get me fired immediately instead of in a few months at the next "resource action." It's been a whole 11 months since our division had one, so I know one is coming soon.

Stewart Dean • 7 months ago ,

The lead-in to this piece makes it sound like IBM was forced into these practices by inescapable forces. I'd say not, rather that it pursued them because a) the management was clueless about how to lead IBM in the new environment and new challenges so b) it started to play with numbers to keep the (apparent) profits up....to keep the bonuses coming. I used to say when I was there that: "After every defeat, they pin medals on the generals and shoot the soldiers".

And then there's the Pig with the Wooden Leg shaggy dog story that ends with the punch line, "A pig like that you don't eat all at once", which has a lot of the flavor of how many of us saw our jobs as IBM die a slow death.

IBM is about to fall out of the sky, much as General Motors did. How could that happen? By endlessly beating the cow to get more milk.

IBM was hiring right through the Great Depression such that It Did Not Pay Unemployment Insurance. Because it never laid people off, Because until about 1990, your manager was responsible for making sure you had everything you needed to excel and grow....and you would find people that had started on the loading dock and had become Senior Programmers. But then about 1990, IBM starting paying unemployment insurance....just out of the goodness of its heart. Right.

CRAW Stewart Dean • 7 months ago ,

1990 is also when H-1B visa rules were changed so that companies no longer had to even attempt to hire an American worker as long as the job paid $60,000, which hasn't changed since. This article doesn't even mention how our work visa system facilitated and even rewarded this abuse of Americans.

DDRLSGC Stewart Dean • 7 months ago ,

Well, starting in the 1980s, the American management was allowed by Reagan to get rid of its workforce.

Georgann Putintsev Stewart Dean • 7 months ago ,

I found that other Ex-IBMer's respect other Ex-IBMer's work ethics, knowledge and initiative.

Other companies are happy to get them as a valueable resource. In '89 when our Palo Alto Datacenter moved, we were given two options: 1.) to become a Programmer (w/training) 2.) move to Boulder or 3.) to leave.

I got my training with programming experience and left IBM in '92, when for 4 yrs IBM offerred really good incentives for leaving the company. The Executives thought that the IBM Mainframe/MVS z/OS+ was on the way out and the Laptop (Small but Increasing Capacity) Computer would take over everything.

It didn't. It did allow many skilled IBMers to succeed outside of IBM and help built up our customer skill sets. And like many, when the opportunity arose to return I did. In '91 I was accidentally given a male co-workers paycheck and that was one of the reasons for leaving. During my various Contract work outside, I bumped into other male IBMer's that had left too, some I had trained, and when they disclosed that it was their salary (which was 20-40%) higher than mine was the reason they left, I knew I had made the right decision.

Women tend to under-value themselves and their capabilities. Contracting also taught me that companies that had 70% employees and 30% contractors, meant that contractors would be let go if they exceeded their quarterly expenditures.

I first contracted with IBM in '98 and when I decided to re-join IBM '01, I had (3) job offers and I took the most lucrative exciting one to focus on fixing & improving DB2z Qry Parallelism. I developed a targeted L3 Technical Change Team to help L2 Support reduce Customer problems reported and improve our product. The instability within IBM remained and I saw IBM try to eliminate aging, salaried, benefited employees. The 1.) find a job within IBM ... to 2.) to leave ... was now standard.

While my salary had more than doubled since I left IBM the first time, it still wasn't near other male counterparts. The continual rating competition based on salary ranged titles and timing a title raise after a round of layoffs, not before. I had another advantage going and that was that my changed reduced retirement benefits helped me stay there. It all comes down to the numbers that Mgmt is told to cut & save IBM. While much of this article implies others were hired, at our Silicon Valley Location and other locations, they had no intent to backfill. So the already burdened employees were laden with more workloads & stress.

In the early to mid 2000's IBM setup a counter lab in China where they were paying 1/4th U.S. salaries and many SVL IBMers went to CSDL to train our new world 24x7 support employees. But many were not IBM loyal and their attrition rates were very high, so it fell to a wave of new-hires at SVL to help address it.

Stewart Dean Georgann Putintsev • 7 months ago ,

It's all about making the numbers so the management can present a Potemkin Village of profits and ever-increasing growth sufficient to get bonuses. There is no relation to any sort of quality or technological advancement, just HR 3-card monte. They have installed air bearing in Old Man Watson's coffin as it has been spinning ever faster

IBM32_retiree • 7 months ago ,

Corporate America executive management is all about stock price management. Their bonus's in the millions of dollars are based on stock performance. With IBM's poor revenue performance since Ginny took over, profits can only be maintained by cost reduction. Look at the IBM executive's bonus's throughout the last 20 years and you can see that all resource actions have been driven by Palmisano's and Rominetty's greed for extravagant bonus's.

Dan Yurman • 7 months ago ,

Bravo ProPublica for another "sock it to them" article - journalism in honor of the spirit of great newspapers everywhere that the refuge of justice in hard times is with the press.

Felix Domestica • 7 months ago ,

Also worth noting is that IBM drastically cut the cap on it's severance pay calculation. Almost enough to make me regret not having retired before that changed.

RonF Felix Domestica • 7 months ago ,

Yeah, severance started out at 2 yrs pay, went to 1 yr, then to 6 mos. and is now 1 month.

mjmadfis RonF • 7 months ago ,

When I was let go in June 2013 it was 6 months severance.

Terry Taylor • 7 months ago ,

You need to investigate AT&T as well, as they did the same thing. I was 'sold' by IBM to AT&T as part of he Network Services operation. AT&T got rid of 4000 of the 8000 US employees sent to AT&T within 3 years. Nearly everyone of us was a 'senior' employee.

weelittlepeople Terry Taylor • 7 months ago ,

Good Ol Ma Bell is following the IBM playbook to a Tee

emnyc • 7 months ago ,

ProPublica deserves a Pulitzer for this article and all the extensive research that went into this investigation.

Incredible job! Congrats.

On a separate note, IBM should be ashamed of themselves and the executive team that enabled all of this should be fired.

WmBlake • 7 months ago ,

As a permanent old contractor and free-enterprise defender myself, I don't blame IBM a bit for wanting to cut the fat. But for the outright *lies, deception and fraud* that they use to break laws, weasel out of obligations... really just makes me want to shoot them... and I never even worked for them.

Michael Woiwood • 7 months ago ,

Great Article.

Where I worked, In Rochester,MN, people have known what is happening for years. My last years with IBM were the most depressing time in my life.

I hear a rumor that IBM would love to close plants they no longer use but they are so environmentally polluted that it is cheaper to maintain than to clean up and sell.

scorcher14 • 7 months ago ,

One of the biggest driving factors in age discrimination is health insurance costs, not salary. It can cost 4-5x as much to insure and older employee vs. a younger one, and employers know this. THE #1 THING WE CAN DO TO STOP AGE DISCRIMINATION IS TO MOVE AWAY FROM OUR EMPLOYER-PROVIDED INSURANCE SYSTEM. It could be single-payer, but it could also be a robust individual market with enough pool diversification to make it viable. Freeing employers from this cost burden would allow them to pick the right talent regardless of age.

DDRLSGC scorcher14 • 7 months ago ,

The American business have constantly fought against single payer since the end of World War II and why should I feel sorry for them when all of a sudden, they are complaining about health care costs? It is outrageous that workers have to face age discrimination; however, the CEOs don't have to deal with that issue since they belong to a tiny group of people who can land a job anywhere else.

pieinthesky scorcher14 • 7 months ago ,

Single payer won't help. We have single payer in Canada and just as much age discrimination in employment. Society in general does not like older people so unless you're a doctor, judge or pharmacist you will face age bias. It's even worse in popular culture never mind in employment.

OrangeGina scorcher14 • 7 months ago ,

I agree. Yet, a determined company will find other methods, explanations and excuses.

JohnCordCutter • 7 months ago ,

Thanks for the great article. I left IBM last year. USA based. 49. Product Manager in one of IBMs strategic initiatives, however got told to relocate or leave. I found another job and left. I came to IBM from an acquisition. My only regret is, I wish I had left this toxic environment earlier. It truely is a dreadful place to work.

60 Soon • 7 months ago ,

The methodology has trickled down to smaller companies pursuing the same net results for headcount reduction. The similarities to my experience were painful to read. The grief I felt after my job was "eliminated" 10 years ago while the Recession was at its worst and shortly after my 50th birthday was coming back. I never have recovered financially but have started writing a murder mystery. The first victim? The CEO who let me go. It's true. Revenge is best served cold.

donttreadonme9 • 7 months ago ,

Well written . people like me have experienced exactly what you wrote. IBM is a shadow of it's former greatness and I have advised my children to stay away from IBM and companies like it as they start their careers. IBM is a corrupt company. Shame on them !

annapurna • 7 months ago ,

I hope they find some way to bring a class action lawsuit against these assholes.

Mark annapurna • 7 months ago ,

I suspect someone will end up hunt them down with an axe at some point. That's the only way they'll probably learn. I don't know about IBM specifically, but when Carly Fiorina ran HP, she travelled with and even went into engineering labs with an armed security detail.

OrangeGina Mark • 7 months ago ,

all the bigwig CEOs have these black SUV security details now.

Sarahw • 7 months ago ,

IBM has been using these tactics at least since the 1980s, when my father was let go for similar 'reasons.'

Vin • 7 months ago ,

Was let go after 34 years of service. Mine Resource Action latter had additional lines after '...unless you are offered ... position within IBM before that date.' , implying don't even try to look for a position. They lines were ' Additional business controls are in effect to manage the business objectives of this resource action, therefore, job offers within (the name of division) will be highly unlikely.'.

Mark Vin • 7 months ago ,

Absolutely and utterly disgusting.

Greybeard • 7 months ago ,

I've worked for a series of vendors for over thirty years. A job at IBM used to be the brass ring; nowadays, not so much.

I've heard persistent rumors from IBMers that U.S. headcount is below 25,000 nowadays. Given events like the recent downtime of the internal systems used to order parts (5 or so days--website down because staff who maintained it were let go without replacements), it's hard not to see the spiral continue down the drain.

What I can't figure out is whether Rometty and cronies know what they're doing or are just clueless. Either way, the result is the same: destruction of a once-great company and brand. Tragic.

ManOnTheHill Greybeard • 7 months ago ,

Well, none of these layoffs/ageist RIFs affect the execs, so they don't see the effects, or they see the effects but attribute them to some other cause.

(I'm surprised the article doesn't address this part of the story; how many affected by layoffs are exec/senior management? My bet is very few.)

ExIBMExec ManOnTheHill • 7 months ago ,

I was a D-banded exec (Director-level) who was impacted and I know even some VPs who were affected as well, so they do spread the pain, even in the exec ranks.

ManOnTheHill ExIBMExec • 7 months ago ,

That's different than I have seen in companies I have worked for (like HP). There RIFs (Reduction In Force, their acronym for layoff) went to the director level and no further up.

[Oct 30, 2018] Anyone working at IBM after 1993 should have had no expectation of a lifetime career

Under neoliberlaism the idea of loyalty between a corporation and an employee makes no more sense than loyalty between a motel and its guests.
Notable quotes:
"... Any expectation of "loyalty", that two-way relationship of employee/company from an earlier time, was wishful thinking ..."
"... With all the automation going on around the world, these business leaders better worry about people not having money to buy their goods and services plus what are they going to do with the surplus of labor ..."
"... This is the nail in the coffin. As an IT manager responsible for selecting and purchasing software, I will never again recommend IBM products ..."
"... The way I saw it, every time I received a paycheck from IBM in exchange for two weeks' work, we were (almost) even. I did not owe them anything else and they did not owe me anything. The way I saw it, every time I received a paycheck from IBM in exchange for two weeks' work, we were (almost) even. I did not owe them anything else and they did not owe me anything. The idea of loyalty between a corporation and an at-will employee makes no more sense than loyalty between a motel and its guests. ..."
"... The annual unemployment rate topped 8% in 1975 and would reach nearly 10% in 1982. The economy seemed trapped in the new nightmare of stagflation," so called because it combined low economic growth and high unemployment ("stagnation") with high rates of inflation. And the prime rate hit 20% by 1980. ..."
Oct 30, 2018 | features.propublica.org
Jeff Russell , Thursday, March 22, 2018 4:31 PM
I started at IBM 3 days out of college in 1979 and retired in 2017. I was satisfied with my choice and never felt mistreated because I had no expectation of lifetime employment, especially after the pivotal period in the 1990's when IBM almost went out of business. The company survived that period by dramatically restructuring both manufacturing costs and sales expense including the firing of tens of thousands of employees. These actions were well documented in the business news of the time, the obvious alternative was bankruptcy.

I told the authors that anyone working at IBM after 1993 should have had no expectation of a lifetime career. Downsizing, outsourcing, movement of work around the globe was already commonplace at all such international companies. Any expectation of "loyalty", that two-way relationship of employee/company from an earlier time, was wishful thinking .

I was always prepared to be sent packing, without cause, at any time and always had my resume up-to-date. I stayed because of interesting work, respectful supervisors, and adequate compensation.

The "resource action" that forced my decision to retire was no surprise, the company that hired me had been gone for decades.

DDRLSGC Jeff Russell , in reply to" aria-label="in reply to"> •
With all the automation going on around the world, these business leaders better worry about people not having money to buy their goods and services plus what are they going to do with the surplus of labor
John Kauai Jeff Russell , in reply to" aria-label="in reply to"> •
I had, more or less, the same experience at Cisco. They paid me to quit. Luckily, I was ready for it.

The article mentions IBMs 3 failures. So who was it that was responsible for not anticipating the transitions? It is hard enough doing what you already know. Perhaps companies should be spending more on figuring out "what's next" and not continually playing catch-up by dumping the older workers for the new.

MichiganRefugee , Friday, March 23, 2018 9:52 AM
I was laid off by IBM after 29 years and 4 months. I had received a division award in previous year, and my last PBC appraisal was 2+ (high performer.) The company I left was not the company I started with. Top management--starting with Gerstner--has steadily made IBM a less desirable place to work. They now treat employees as interchangeable assets and nothing more. I cannot/would not recommend IBM as an employer to any young programmer.
George Purcell , Friday, March 23, 2018 7:41 AM
Truly awesome work. I do want to add one thing, however--the entire rhetoric about "too many old white guys" that has become so common absolutely contributes to the notion that this sort of behavior is not just acceptable but in some twisted way admirable as well.
Bob Fritz , Thursday, March 22, 2018 7:35 PM
I read the article and all the comments.

Is anyone surprised that so many young people don't think capitalism is a good system any more?

I ran a high technology electronic systems company for years. We ran it "the old way." If you worked hard, and tried, we would bend over backwards to keep you. If technology or business conditions eliminated your job, we would try to train you for a new one. Our people were loyal, not like IBMers today. I honestly think that's the best way to be profitable.

People afraid of being unjustly RIFFed will always lack vitality.

petervonstackelberg , Thursday, March 22, 2018 2:00 PM
I'm glad someone is finally paying attention to age discrimination. IBM apparently is just one of many organizations that discriminate.

I'm in the middle of my own fight with the State University of New York (SUNY) over age discrimination. I was terminated by a one of the technical colleges in the SUNY System. The EEOC/New York State Division of Human Rights (NYDHR) found that "PROBABLE CAUSE (NYDHR's emphasis) exists to believe that the Respondent (Alfred State College - SUNY) has engaged in or is engaging in the unlawful discriminatory practice complained of." Investigators for NYDHR interviewed several witnesses, who testified that representatives of the college made statements such as "we need new faces", "three old men" attending a meeting, an older faculty member described as an "albatross", and "we ought to get rid of the old white guys". Witnesses said these statements were made by the Vice President of Academic Affairs and a dean at the college.

davosil , Sunday, March 25, 2018 5:00 PM
This saga at IBM is simply a microcosm of our overall economy. Older workers get ousted in favor of younger, cheaper workers; way too many jobs get outsourced; and so many workers today [young and old] can barely land a full-time job.
This is the behavior that our system incentivises (and gets away with) in this post Reagan Revolution era where deregulation is lauded and unions have been undermined & demonized. We need to seriously re-work 'work', and in order to do this we need to purge Republicans at every level, as they CLEARLY only serve corporate bottom-lines - not workers - by championing tax codes that reward outsourcing, fight a livable minimum wage, eliminate pensions, bust unions, fight pay equity for women & family leave, stack the Supreme Court with radical ideologues who blatantly rule for corporations over people all the time, etc. etc. ~35 years of basically uninterrupted Conservative economic policy & ideology has proven disastrous for workers and our quality of life. As goes your middle class, so goes your country.
ThinkingAloud , Friday, March 23, 2018 7:18 AM
The last five words are chilling... This is an award-winning piece....
RetiredIBM.manager , Thursday, March 22, 2018 7:39 PM
I am a retired IBM manager having had to execute many of these resource reduction programs.. too many.. as a matter of fact. ProPUBLICA....You nailed it!
David , Thursday, March 22, 2018 3:22 PM
IBM has always treated its customer-facing roles like Disney -- as cast members who need to match a part in a play. In the 60s and 70s, it was the white-shirt, blue-suit white men whom IBM leaders thought looked like mainframe salesmen. Now, rather than actually build a credible cloud to compete with Amazon and Microsoft, IBM changes the cast to look like cloud salespeople. (I work for Microsoft. Commenting for myself alone.)
CRAW David ,

Now IBM still treats their employees like Disney - by replacing them with H-1B workers.

MHV IBMer , Friday, March 23, 2018 10:35 PM
I am a survivor, the rare employee who has been at IBM for over 35 years. I have seen many, many layoff programs over 20 years now. I have seen tens of thousands people let go from the Hudson Valley of N.Y. Those of us who have survived, know and lived through what this article so accurately described. I currently work with 3 laid off/retired and rehired contractors. I have seen age discrimination daily for over 15 years. It is not only limited to layoffs, it is rampant throughout the company. Promotions, bonuses, transfers for opportunities, good reviews, etc... are gone if you are over 45. I have seen people under 30 given promotions to levels that many people worked 25 years for. IBM knows that these younger employees see how they treat us so they think they can buy them off. Come to think of it, I guess they actually are! They are ageist, there is no doubt, it is about time everyone knew. Excellent article.
Goldie Romero , Friday, March 23, 2018 2:31 PM
Nice article, but seriously this is old news. IBM has been at this for ...oh twenty years or more.
I don't really have a problem with it in terms of a corporation trying to make money. But I do have a problem with how IBM also likes to avoid layoffs by giving folks over 40 intentionally poor reviews, essentially trying to drive people out. Just have the guts to tell people, we don't need you anymore, bye. But to string people along as the overseas workers come in...c'mon just be honest with your workers.
High tech over 40 is not easy...I suggest folks prep for a career change before 50. Then you can have the last laugh on a company like IBM.
jblog , Friday, March 23, 2018 10:37 AM
From pages 190-191 of my novel, Ordinary Man (Amazon):

Throughout it all, layoffs became common, impacting mostly older employees with many years of service. These job cuts were dribbled out in small numbers to conceal them from the outside world, but employees could plainly see what was going on.

The laid off employees were supplanted by offshoring work to low-costs countries and hiring younger employees, often only on temporary contracts that offered low pay and no benefits – a process pejoratively referred to by veteran employees as "downsourcing." The recruitment of these younger workers was done under the guise of bringing in fresh skills, but while many of the new hires brought new abilities and vitality, they lacked the knowledge and perspective that comes with experience.

Frequently, an older more experienced worker would be asked to help educate newer employees, only to be terminated shortly after completing the task. And the new hires weren't fooled by what they witnessed and experienced at OpenSwitch, perceiving very quickly that the company had no real interest in investing in them for the long term. To the contrary, the objective was clearly to grind as much work out of them as possible, without offering any hope of increased reward or opportunity.

Most of the young recruits left after only a year or two – which, again, was part of the true agenda at the company. Senior management viewed employees not as talent, but simply as cost, and didn't want anyone sticking around long enough to move up the pay scale.

turquoisewaters , Thursday, March 22, 2018 10:19 PM
This is why you need unions.
Aaron Stackpole , Thursday, March 22, 2018 5:23 PM
This is the nail in the coffin. As an IT manager responsible for selecting and purchasing software, I will never again recommend IBM products. I love AIX and have worked with a lot if IBM products but not anymore. Good luck with the millennials though...
awb22 , Thursday, March 22, 2018 12:14 PM
The same thing has been going on at other companies, since the end of WWII. It's unethical, whether the illegality can be proven or not.

In the RTP area, where I live, I know many, many current and former employees. Times have changed, but the distinction between right and wrong hasn't.

Dave Allen , Thursday, March 22, 2018 1:07 PM
I worked for four major corporations (HP, Intel, Control Data Corporation, and Micron Semiconductor) before I was hired by IBM as a rare (at that time) experienced new hire.

Even though I ended up working for IBM for 21 years, and retired in 2013, because of my experiences at those other companies, I never considered IBM my "family."

The way I saw it, every time I received a paycheck from IBM in exchange for two weeks' work, we were (almost) even. I did not owe them anything else and they did not owe me anything. The way I saw it, every time I received a paycheck from IBM in exchange for two weeks' work, we were (almost) even. I did not owe them anything else and they did not owe me anything. The idea of loyalty between a corporation and an at-will employee makes no more sense than loyalty between a motel and its guests.

It is a business arrangement, not a love affair. Every individual needs to continually assess their skills and their value to their employer. If they are not commensurate, it is the employee's responsibility to either acquire new skills or seek a new employer.

Your employer will not hesitate to lay you off if your skills are no longer needed, or if they can hire someone who can do your job just as well for less pay. That is free enterprise, and it works for people willing to take advantage of it.

sometimestheyaresomewhatright Dave Allen , in reply to" aria-label="in reply to"> •
I basically agree. But why should it be OK for a company to fire you just to replace you with a younger you? If all that they accomplish is lowering their health care costs (which is what this is really about). If the company is paying about the same for the same work, why is firing older workers for being older OK?
Dave Allen sometimestheyaresomewhatright , in reply to" aria-label="in reply to"> •
Good question. The point I was trying to make is that people need to watch out for themselves and not expect their employer to do what is "best" for the employee. I think that is true whatever age the employee happens to be.

Whether employers should be able to discriminate against (treat differently) their employees based on age, gender, race, religion, etc. is a political question. Morally, I don't think they should discriminate. Politically, I think it is a slippery slope when the government starts imposing regulations on free enterprise. Government almost always creates more problems than they fix.

DDRLSGC Dave Allen , in reply to" aria-label="in reply to"> •
Sorry, but when you deregulate the free enterprise, it created more problems than it fixes and that is a fact that has been proven for the last 38 years.
Danllo DDRLSGC , in reply to" aria-label="in reply to"> •
That's just plain false. Deregulation creates competiiton. Competition for talented and skilled workers creates opportunities for those that wish to be employed and for those that wish to start new ventures. For example, when Ma Bell was regulated and had a monopoly on telecommunications there was no innovation in the telecom inudstry. However, when it was deregulated, cell phones, internet, etc exploded ... creating billionaires and millionaires while also improving the quality of life.
DDRLSGC Danllo , in reply to" aria-label="in reply to"> •
No, it happens to be true. When Reagan deregulate the economy, a lot of those corporate raiders just took over the companies, sold off the assets, and pocketed the money. What quality of life? Half of American lived near the poverty level and the wages for the workers have been stagnant for the last 38 years compared to a well-regulated economy in places like Germany and the Scandinavian countries where the workers have good wages and a far better standard of living than in the USA. Why do you think the Norwegians told Trump that they will not be immigrating to the USA anytime soon?
NotSure DDRLSGC , in reply to" aria-label="in reply to"> •
What were the economic conditions before Regan? It was a nightmare before Regan.

The annual unemployment rate topped 8% in 1975 and would reach nearly 10% in 1982. The economy seemed trapped in the new nightmare of stagflation," so called because it combined low economic growth and high unemployment ("stagnation") with high rates of inflation. And the prime rate hit 20% by 1980.
DDRLSGC NotSure , in reply to" aria-label="in reply to"> •
At least we had a manufacturing base in the USA, strong regulations of corporations, corporate scandals were far and few, businesses did not go under so quickly, prices of goods and services did not go through the roof, people had pensions and could reasonably live off them, and recessions did not last so long or go so deep until Reagan came into office. In Under Reagan, the jobs were allowed to be send overseas, unions were busted up, pensions were reduced or eliminated, wages except those of the CEOs were staganent, and the economic conditions under Bush, Senior and Bush, Jr. were no better except that Bush, Jr, was the first president to have a net minus below zero growth, so every time we get a Republican Administration, the economy really turns into a nightmare. That is a fact.

You have the Republicans in Kansas, Oklahoma, and Wisconsin using Reaganomics and they are economic disaster areas.

DDRLSGC NotSure , in reply to" aria-label="in reply to"> •
You had an industrial base in the USA, lots of banks and savings and loans to choose from, lots of mom and pop stores, strong government regulation of the economy, able to live off your pensions, strong unions and employment laws along with the court system to back you up against corporate malfeasance. All that was gone when Reagan and the two Bushes came into office.
james Foster , Thursday, March 29, 2018 8:37 PM
Amazingly accurate article. The once great IBM now a dishonest and unscrupulous corporation concerned more about earnings per share than employees, customers, or social responsibility. In Global Services most likely 75% or more jobs are no longer in the US - can't believe a word coming out of Armonk.
Philip Meyer james Foster , in reply to" aria-label="in reply to"> •
I'm not sure there was ever a paradise in employment. Yeah, you can say there was more job stability 50 or 60 years ago, but that applied to a much smaller workforce than today (mostly white men). It is a drag, but there are also lot more of us old farts than there used to be and we live a lot longer in retirement as well. I don't see any magic bullet fix either.
George A , Tuesday, March 27, 2018 6:12 PM
Warning to Google/Facebook/Apple etc. All you young people will get old. It's inevitable. Do you think those companies will take care of you?
econdataus , Sunday, March 25, 2018 3:01 PM
Great article. What's especially infuriating is that the industry continues to claim that there is a shortage of STEM workers. For example, google "claim of 1.4 million computer science jobs with only 400,000 computer science graduates to fill them". If companies would openly say, "we have plenty of young STEM workers and prefer them to most older STEM workers", we could at least start addressing the problem. But they continue to promote the lie of there being a STEM shortage. They just want as big a labor pool as possible, unemployed workers be damned.
Buzz , Friday, March 23, 2018 12:00 PM
I've worked there 17 years and have worried about being layed off for about 11 of them. Moral is in the toilet. Bonuses for the rank and file are in the under 1% range while the CEO gets millions. Pay raises have been non existent or well under inflation for years. Adjusting for inflation, I make $6K less than I did my first day. My group is a handful of people as at least 1/2 have quit or retired. To support our customers, we used to have several people, now we have one or two and if someone is sick or on vacation, our support structure is to hope nothing breaks. We can't keep millennials because of pay, benefits and the expectation of being available 24/7 because we're shorthanded. As the unemployment rate drops, more leave to find a different job, leaving the old people as they are less willing to start over with pay, vacation, moving, selling a house, pulling kids from school, etc. The younger people are generally less likely to be willing to work as needed on off hours or to pull work from a busier colleague. I honestly have no idea what the plan is when the people who know what they are doing start to retire, we are way top heavy with 30-40 year guys who are on their way out, very few of the 10-20 year guys due to hiring freezes and we can't keep new people past 2-3 years. It's like our support business model is designed to fail.
OrangeGina , Friday, March 23, 2018 11:41 AM
Make no mistake. The three and four letter acronyms and other mushy corporate speak may differ from firm to firm, but this is going on in every large tech company old enough to have a large population of workers over 50. I hope others will now be exposed.
JeffMo , Friday, March 23, 2018 10:23 AM
This article hits the nail right on the head, as I come up on my 1 year anniversary from being....ahem....'retired' from 23 years at IBM....and I'll be damned if I give them the satisfaction of thinking this was like a 'death' to me. It was the greatest thing that could have ever happened. Ginny and the board should be ashamed of themselves, but they won't be.
Frankie , Friday, March 23, 2018 1:00 AM
Starting around age 40 you start to see age discrimination. I think this is largely due to economics, like increased vacation times, higher wages, but most of all the perception that older workers will run up the medical costs. You can pass all the age related discrimination laws you want, but look how ineffective that has been.

If you contrast this with the German workforce, you see that they have more older workers with the skills and younger workers without are having a difficult time getting in. So what's the difference? There are laws about how many vacation weeks that are given and there is a national medical system that everyone pays, so discrimination isn't seen in the same light.

The US is the only hold out maybe with South Africa that doesn't have a good national medical insurance program for everyone. Not only do we pay more than the rest of the world, but we also have discrimination because of it.

Rick Gundlach , Thursday, March 22, 2018 11:38 PM
This is very good, and this is IBM. I know. I was plaintiff in Gundlach v. IBM Japan, 983 F.Supp.2d 389, which involved their violating Japanese labor law when I worked in Japan. The New York federal judge purposely ignored key points of Japanese labor law, and also refused to apply Title VII and Age Discrimination in Employment to the parent company in Westchester County. It is a huge, self-described "global" company with little demonstrated loyalty to America and Americans. Pennsylvania is suing them for $170 million on a botched upgrade of the state's unemployment system.
Jeff , Thursday, March 22, 2018 2:05 PM
In early 2013 I was given a 3 PBC rating for my 2012 performance, the main reason cited by my manager being that my team lead thought I "seemed distracted". Five months later I was included in a "resource action", and was gone by July. I was 20 months shy of 55. Younger coworkers were retained. That was about two years after the product I worked on for over a decade was off-shored.

Through a fluke of someone from the old, disbanded team remembering me, I was rehired two years later - ironically in a customer support position for the very product I helped develop.

While I appreciated my years of service, previous salary, and previous benefits being reinstated, a couple years into it I realized I just wasn't cut out for the demands of the job - especially the significant 24x7 pager duty. Last June I received email describing a "Transition to Retirement" plan I was eligible for, took it, and my last day will be June 30. I still dislike the job, but that plan reclassified me as part time, thus ending pager duty for me. The job still sucks, but at least I no longer have to despair over numerous week long 24x7 stints throughout the year.

A significant disappointment occurred a couple weeks ago. I was discussing healthcare options with another person leaving the company who hadn't been resource-actioned as I had, and learned the hard way I lost over $30,000 in some sort of future medical benefit account the company had established and funded at some point. I'm not sure I was ever even aware of it. That would have funded several years of healthcare insurance during the 8 years until I'm eligible for Medicare. I wouldn't be surprised if their not having to give me that had something to do with my seeming "distracted" to them. <rolls eyes="">

What's really painful is the history of that former account can still be viewed at Fidelity, where it associates my departure date in 2013 with my having "forfeited" that money. Um, no. I did not forfeit that money, nor would I have. I had absolutely no choice in the matter. I find the use of the word 'forfeited' to describe what happened as both disingenuous and offensive. That said, I don't know whether's that's IBM's or Fidelity's terminology, though.

Herb Jeff , in reply to" aria-label="in reply to"> •
Jeff, You should call Fidelity. I recently received a letter from the US Department of Labor that they discovered that IBM was "holding" funds that belonged to me that I was never told about. This might be similar or same story .

[Oct 30, 2018] There are plenty of examples of people who were doing their jobs, IN SPADES, putting in tons of unpaid overtime, and generally doing whatever was humanly possible to make sure that whatever was promised to the customer was delivered within their span of control. As they grew older corporations threw them out like an empty can

Notable quotes:
"... The other alternative is a market-based life that, for many, will be cruel, brutish, and short. ..."
Oct 30, 2018 | features.propublica.org

Lorilynn King

Step back and think about this for a minute. There are plenty of examples of people who were doing their jobs, IN SPADES, putting in tons of unpaid overtime, and generally doing whatever was humanly possible to make sure that whatever was promised to the customer was delivered (within their span of control... I'm not going to get into a discussion of how IBM pulls the rug out from underneath contracts after they've been signed).

These people were, and still are, high performers, they are committed to the job and the purpose that has been communicated to them by their peers, management, and customers; and they take the time (their OWN time) to pick up new skills and make sure that they are still current and marketable. They do this because they are committed to doing the job to the best of their ability.... it's what makes them who they are.

IBM (and other companies) are firing these very people ***for one reason and one reason ONLY***: their AGE. They have the skills and they're doing their jobs. If the same person was 30 you can bet that they'd still be there. Most of the time it has NOTHING to do with performance or lack of concurrency. Once the employee is fired, the job is done by someone else. The work is still there, but it's being done by someone younger and/or of a different nationality.

The money that is being saved by these companies has to come from somewhere. People that are having to withdraw their retirement savings 20 or so years earlier than planned are going to run out of funds.... and when they're in nursing homes, guess who is going to be supporting them? Social security will be long gone, their kids have their own monetary challenges.... so it will be government programs.... maybe.

This is not just a problem that impacts the 40 and over crowd. This is going to impact our entire society for generations to come.

NoPolitician
The business reality you speak of can be tempered via government actions. A few things:
  • One of the major hardships here is laying someone off when they need income the most - to pay for their children's college education. To mitigate this, as a country we could make a public education free. That takes off a lot of the sting, some people might relish a change in career when they are in their 50s except that the drop in salary is so steep when changing careers.
  • We could lower the retirement age to 55 and increase Social Security to more than a poverty-level existence.Being laid off when you're 50 or 55 - with little chance to be hired anywhere else - would not hurt as much.
  • We could offer federal wage subsidies for older workers to make them more attractive to hire. While some might see this as a thumb on the scale against younger workers, in reality it would be simply a counterweight to the thumb that is already there against older workers.
  • Universal health care equalizes the cost of older and younger workers.

The other alternative is a market-based life that, for many, will be cruel, brutish, and short.

[Oct 30, 2018] Elimination of loyalty: what corporations cloak as weeding out the low performers tranparantly reveals catching the older workers in the net as well.

Oct 30, 2018 | features.propublica.org

Great White North, Thursday, March 22, 2018 11:29 PM

There's not a word of truth quoted in this article. That is, quoted from IBM spokespeople. It's the culture there now. They don't even realize that most of their customers have become deaf to the same crap from their Sales and Marketing BS, which is even worse than their HR speak.

The sad truth is that IBM became incapable of taking its innovation (IBM is indeed a world beating, patent generating machine) to market a long time ago. It has also lost the ability (if it ever really had it) to acquire other companies and foster their innovation either - they ran most into the ground. As a result, for nearly a decade revenues have declined and resource actions grown. The resource actions may seem to be the ugly problem, but they're only the symptom of a fat greedy and pompous bureaucracy that's lost its ability to grow and stay relevant in a very competitive and changing industry. What they have been able to perfect and grow is their ability to downsize and return savings as dividends (Big Sam Palmisano's "innovation"). Oh, and for senior management to line their pockets.

Nothing IBM is currently doing is sustainable.

If you're still employed there, listen to the pain in the words of your fallen comrades and don't knock yourself out trying to stay afloat. Perhaps learn some BS of your own and milk your job (career? not...) until you find freedom and better pastures.

If you own stock, do like Warren Buffett, and sell it while it still has some value.

Danllo , Thursday, March 22, 2018 10:43 PM
This is NOTHING NEW! All major corporations have and will do this at some point in their existence. Another industry that does this regularly every 3 to 5 years is the pharamaceutical industry. They'll decimate their sales forces in order to, as they like to put it, "right size" the company.

They'll cloak it as weeding out the low performers, but they'll try to catch the "older" workers in the net as well.

[Oct 30, 2018] American companies pay health insurance premiums based on their specific employee profiles

Notable quotes:
"... As long as companies pay for their employees' health insurance they will have an incentive to fire older employees. ..."
"... The answer is to separate health insurance from employment. Companies can't be trusted. Not only health care, but retirement is also sorely abused by corporations. All the money should be in protected employee based accounts. ..."
Oct 30, 2018 | features.propublica.org

sometimestheyaresomewhatright , Thursday, March 22, 2018 4:13 PM

American companies pay health insurance premiums based on their specific employee profiles. Insurance companies compete with each other for the business, but costs are actual. And based on the profile of the pool of employees. So American companies fire older workers just to lower the average age of their employees. Statistically this is going to lower their health care costs.

As long as companies pay for their employees' health insurance they will have an incentive to fire older employees. They have an incentive to fire sick employees and employees with genetic risks. Those are harder to implement as ways to lower costs. Firing older employees is simple to do, just look up their ages.

The answer is to separate health insurance from employment. Companies can't be trusted. Not only health care, but retirement is also sorely abused by corporations. All the money should be in protected employee based accounts.

By the way, most tech companies are actually run by older people. The goal is to broom out mid-level people based on age. Nobody is going to suggest to a sixty year old president that they should self fire, for the good of the company.

[Oct 30, 2018] If I were a Red Hat employee over 40, I'd be sweating right now.

Oct 30, 2018 | arstechnica.com

Morley Dotes , Ars Centurion et Subscriptor 4 hours ago

jandrese wrote:
IMHO this is perilous for RHEL. It would be very easy for IBM to fire most of the developers and just latch on to the enterprise services stuff to milk it till its dry.

Why would you say that? IBM is renowned for their wonderful employee relations. </s>

If I were a Red Hat employee over 40, I'd be sweating right now.

Unless I had equity.

NeghVar1 , Wise, Aged Ars Veteran 4 hours ago
Reminds me of when Oracle bought Sun
sviola , Ars Scholae Palatinae 4 hours ago
Peevester wrote:
Muon wrote:
blockquote> We run just about everything on CentOS around here, downstream of RHEL. Should we be worried?

I don't think so, at least no more than you should have already been. IBM has adopted RHEL as their standard platform for a lot of things, all the way up to big-iron mainframes. Not to mention, over the two decades, they've done a hell of a lot of enhancements to Linux that are a big part of why it scales so well (Darl Mcbride just felt like someone walked over his grave. Hey, let's jump on it a bit too!).

Say what you like about IBM (like they've turned into a super-shitty place to work for or be a customer of), but they've been a damn good friend to Linux. If I actually worked for Red Hat though, I would be really unhappy because you can bet that "independence" will last a few quarters before everyone gets outsourced to Brazil.

Brazil is too expensive. Last time I heard, they were outsourcing from Brazil to chapear LA countries...

informationsuperhighway , Wise, Aged Ars Veteran et Subscriptor 2 hours ago
CousinSven wrote:
IBM are paying around 12x annual revenue for Red Hat which is a significant multiple so they will have to squeeze more money out of the business somehow. Either they grow customers or they increase margins or both.

IBM had little choice but to do something like this. They are in a terminal spiral thanks to years of bad leadership. The confused billing of the purchase smacks of rush, so far I have seen Red Hat described as a cloud company, an info sec company, an open source company...

So IBM are buying Red Hat as a last chance bid to avoid being put through the PE threshing machine. Red Hat get a ludicrous premium so will take the money.

And RH customers will want to check their contracts...

They will lay off Redhat staff to cut costs and replace them with remote programmers living in Calcutta. To big corporations a programmer is a fungible item, if you can swap programmer A woth programmer B at 1/4 the cost its a big win and you beat earnings estimate by a penny.

Rotoars , Ars Centurion 2 hours ago
bolomkxxviii wrote:
No good will come from this. IBM's corporate environment and financial near-sightedness will kill Red Hat. Time to start looking for a new standard bearer in Linux for business.

This will kill both companies. Red has trouble making money and IBM has trouble not messing up what good their is and trouble making money. They both die, but a slow, possibly accelerating, death.

[Oct 30, 2018] Cutting Old Heads at IBM by Peter Gosselin and Ariana Tobin

Mar 22, 2018 | features.propublica.org

This story was co-published with Mother Jones.

F or nearly a half century, IBM came as close as any company to bearing the torch for the American Dream.

As the world's dominant technology firm, payrolls at International Business Machines Corp. swelled to nearly a quarter-million U.S. white-collar workers in the 1980s. Its profits helped underwrite a broad agenda of racial equality, equal pay for women and an unbeatable offer of great wages and something close to lifetime employment, all in return for unswerving loyalty.

How the Crowd Led Us to Investigate IBM

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But when high tech suddenly started shifting and companies went global, IBM faced the changing landscape with a distinction most of its fiercest competitors didn't have: a large number of experienced and aging U.S. employees.

The company reacted with a strategy that, in the words of one confidential planning document, would "correct seniority mix." It slashed IBM's U.S. workforce by as much as three-quarters from its 1980s peak, replacing a substantial share with younger, less-experienced and lower-paid workers and sending many positions overseas. ProPublica estimates that in the past five years alone, IBM has eliminated more than 20,000 American employees ages 40 and over, about 60 percent of its estimated total U.S. job cuts during those years.

In making these cuts, IBM has flouted or outflanked U.S. laws and regulations intended to protect later-career workers from age discrimination, according to a ProPublica review of internal company documents, legal filings and public records, as well as information provided via interviews and questionnaires filled out by more than 1,000 former IBM employees.

Among ProPublica's findings, IBM:

Denied older workers information the law says they need in order to decide whether they've been victims of age bias, and required them to sign away the right to go to court or join with others to seek redress. Targeted people for layoffs and firings with techniques that tilted against older workers, even when the company rated them high performers. In some instances, the money saved from the departures went toward hiring young replacements. Converted job cuts into retirements and took steps to boost resignations and firings. The moves reduced the number of employees counted as layoffs, where high numbers can trigger public disclosure requirements. Encouraged employees targeted for layoff to apply for other IBM positions, while quietly advising managers not to hire them and requiring many of the workers to train their replacements. Told some older employees being laid off that their skills were out of date, but then brought them back as contract workers, often for the same work at lower pay and fewer benefits.

IBM declined requests for the numbers or age breakdown of its job cuts. ProPublica provided the company with a 10-page summary of its findings and the evidence on which they were based. IBM spokesman Edward Barbini said that to respond the company needed to see copies of all documents cited in the story, a request ProPublica could not fulfill without breaking faith with its sources. Instead, ProPublica provided IBM with detailed descriptions of the paperwork. Barbini declined to address the documents or answer specific questions about the firm's policies and practices, and instead issued the following statement:

"We are proud of our company and our employees' ability to reinvent themselves era after era, while always complying with the law. Our ability to do this is why we are the only tech company that has not only survived but thrived for more than 100 years."

With nearly 400,000 people worldwide, and tens of thousands still in the U.S., IBM remains a corporate giant. How it handles the shift from its veteran baby-boom workforce to younger generations will likely influence what other employers do. And the way it treats its experienced workers will eventually affect younger IBM employees as they too age.

Fifty years ago, Congress made it illegal with the Age Discrimination in Employment Act , or ADEA, to treat older workers differently than younger ones with only a few exceptions, such as jobs that require special physical qualifications. And for years, judges and policymakers treated the law as essentially on a par with prohibitions against discrimination on the basis of race, gender, sexual orientation and other categories.

In recent decades, however, the courts have responded to corporate pleas for greater leeway to meet global competition and satisfy investor demands for rising profits by expanding the exceptions and shrinking the protections against age bias .

"Age discrimination is an open secret like sexual harassment was until recently," said Victoria Lipnic, the acting chair of the Equal Employment Opportunity Commission, or EEOC, the independent federal agency that administers the nation's workplace anti-discrimination laws.

"Everybody knows it's happening, but often these cases are difficult to prove" because courts have weakened the law, Lipnic said. "The fact remains it's an unfair and illegal way to treat people that can be economically devastating."

Many companies have sought to take advantage of the court rulings. But the story of IBM's downsizing provides an unusually detailed portrait of how a major American corporation systematically identified employees to coax or force out of work in their 40s, 50s and 60s, a time when many are still productive and need a paycheck, but face huge hurdles finding anything like comparable jobs.

The dislocation caused by IBM's cuts has been especially great because until recently the company encouraged its employees to think of themselves as "IBMers" and many operated under the assumption that they had career-long employment.

When the ax suddenly fell, IBM provided almost no information about why an employee was cut or who else was departing, leaving people to piece together what had happened through websites, listservs and Facebook groups such as "Watching IBM" or "Geographically Undesirable IBM Marketers," as well as informal support groups.

Marjorie Madfis, at the time 57, was a New York-based digital marketing strategist and 17-year IBM employee when she and six other members of her nine-person team -- all women in their 40s and 50s -- were laid off in July 2013. The two who remained were younger men.

Since her specialty was one that IBM had said it was expanding, she asked for a written explanation of why she was let go. The company declined to provide it.

"They got rid of a group of highly skilled, highly effective, highly respected women, including me, for a reason nobody knows," Madfis said in an interview. "The only explanation is our age."

Brian Paulson, also 57, a senior manager with 18 years at IBM, had been on the road for more than a year overseeing hundreds of workers across two continents as well as hitting his sales targets for new services, when he got a phone call in October 2015 telling him he was out. He said the caller, an executive who was not among his immediate managers, cited "performance" as the reason, but refused to explain what specific aspects of his work might have fallen short.

It took Paulson two years to land another job, even though he was equipped with an advanced degree, continuously employed at high-level technical jobs for more than three decades and ready to move anywhere from his Fairview, Texas, home.

"It's tough when you've worked your whole life," he said. "The company doesn't tell you anything. And once you get to a certain age, you don't hear a word from the places you apply."

Paul Henry, a 61-year-old IBM sales and technical specialist who loved being on the road, had just returned to his Columbus home from a business trip in August 2016 when he learned he'd been let go. When he asked why, he said an executive told him to "keep your mouth shut and go quietly."

Henry was jobless more than a year, ran through much of his savings to cover the mortgage and health insurance and applied for more than 150 jobs before he found a temporary slot.

"If you're over 55, forget about preparing for retirement," he said in an interview. "You have to prepare for losing your job and burning through every cent you've saved just to get to retirement."

IBM's latest actions aren't anything like what most ex-employees with whom ProPublica talked expected from their years of service, or what today's young workers think awaits them -- or are prepared to deal with -- later in their careers.

"In a fast-moving economy, employers are always going to be tempted to replace older workers with younger ones, more expensive workers with cheaper ones, those who've performed steadily with ones who seem to be up on the latest thing," said Joseph Seiner, an employment law professor at the University of South Carolina and former appellate attorney for the EEOC.

"But it's not good for society," he added. "We have rules to try to maintain some fairness in our lives, our age-discrimination laws among them. You can't just disregard them."

[Oct 30, 2018] The Watson family held integrity, equality, and knowledge share as a formidable synthesis of company ethics. With them gone old IBM was gone...

It not Watson family gone it is New Deal Capitalism was replaced with the neoliberalism
Notable quotes:
"... Except when your employer is the one preaching associate loyalty and "we are family" your entire career. Then they decide you've been too loyal and no longer want to pay your salary and start fabricating reasons to get rid of you. ADP is guilty of these same practices and eliminating their tenured associates. Meanwhile, the millennials hired play ping pong and text all day, rather than actually working. ..."
Oct 30, 2018 | features.propublica.org

Zytor-LordoftheSkies , Thursday, March 22, 2018 11:55 AM

A quick search of the article doesn't find the word "buy backs" but this is a big part of the story. IBM spent over $110 BILLION on stock buy backs between 2000 and 2016. That's the number I found, but it hasn't stopped since. If anything it has escalated.

This is very common among large corporations. Rather than spend on their people, they funnel billions into stock buy backs which raises or at least maintains the stock value so execs can keep cashing in. It's really pretty disgraceful. This was only legalized in 1982, which not-so-coincidentally is not long after real wages stalled, and have stalled ever since.

Suzan Zytor-LordoftheSkies ,
Thanks for this bit of insanely true reporting. When laid off from Westinghouse after 14 years of stellar performance evaluations I was flummoxed by the execs getting million-dollar bonuses as we were told the company wasn't profitable enough to maintain its senior engineering staff. It sold off every division eventually as the execs (many of them newly hired) reaped even more bonuses.
Georgann Putintsev Suzan ,
Thank you ... very insightful of you. As an IBMer and lover of Spreadsheets / Statistics / Data Specalist ... I like reading Annual Reports. Researching these Top Execs, BOD and compare them to other Companies across-the-board and industry sectors. You'll find a Large Umbrella there.
There is a direct tie and inter-changeable pieces of these elites over the past 55 yrs. Whenever some Corp/ Political/ Government shill (wannbe) needs a payoff, they get placed into high ranking top positions for a orchestrating a predescribed dark nwo agenda. Some may come up the ranks like Ginny, but ALL belong to Council for Foreign Relations and other such high level private clubs or organizations. When IBM sells off their Mainframe Manufacturing (Poughkeepsie) to an elite Saudi, under an American Co. sounding name of course, ... and the U.S. Government ... doesn't balk ... that has me worried for our 1984 future.
Carol Van Linda Suzan ,
Sears is doing this also
Suzan Carol Van Linda ,
Details? Thanks!
vibert Zytor-LordoftheSkies ,
True in every large corporation. They use almost free money from the US Government to do it. (Taxpayer's money)
DDRLSGC vibert ,
Yeah, it is amazing how they stated that they don't need help from the government when in reality they do need government to pass laws that favor them, pack the court system where judges rule in their favor and use their private police and the public sector police to keep the workers down.
Johnny Player DDRLSGC ,
Why do you put disqus in your name? . Is that so you can see if they sell your info and you know where it originated from?
Theo Geauxvan Zytor-LordoftheSkies ,
I wonder how many billions (trillions?) have been funneled from corporate workers pockets this way? It seems all corporations are doing it these days. Large-scale transfer of wealth from the middle class to the wealthy.
Stevie Ponders Theo Geauxvan ,
It's called asset stripping. Basically corporate raiding (as in pillage) from the inside.
R. J. Smith , Thursday, March 22, 2018 9:06 AM
"Member of the IBM family" -- BS. Your employer is not your family.
Randall Smith R. J. Smith
Not anymore. With most large companies, you've never been able to say they are "family." Loyalty used to be a thing though. I worked at a company where I saw loyalty vanish over a 10 year period.
marsto R. J. Smith
Except when your employer is the one preaching associate loyalty and "we are family" your entire career. Then they decide you've been too loyal and no longer want to pay your salary and start fabricating reasons to get rid of you. ADP is guilty of these same practices and eliminating their tenured associates. Meanwhile, the millennials hired play ping pong and text all day, rather than actually working.
DDRLSGC marsto
Yeah, and how many CEOs actually work to make their companies great instead of running them into the ground, thinking about their next job move, and playing golf
Mary Malley R. J. Smith ,
I have to disagree with you. I started with IBM on their rise up in those earlier days, and we WERE valued and shown that we were valued over and over through those glorious years. It did feel like we were in a family, our families mattered to them, our well-being. They gave me a month to find a perfect babysitter when they hired me before I had to go to work!

They helped me find a house in a good school district for my children. They bought my house when I was moving to a new job/location when it didn't sell within 30 days.

They paid the difference in the interest rate of my loan for my new house from the old one. I can't even begin to list all the myriad of things that made us love IBM and the people we worked with and for, and made us feel a part of that big IBM family.

Did they change, yes, but the dedication we gave was freely given and we mutually respected each other. I was lucky to work for them for decades before that shift when they changed to be just like every other large corporation.

Georgann Putintsev Mary Malley ,
The Watson family held integrity, equality, and knowledge share as a formidable synthesis of company ethics moving a Quality based business forward in the 20th to 21st century. They also promoted an (volunteer) IBM Club to help promote employee and family activities inside/outside of work which they by-en-large paid for. This allowed employees to meet and see other employees/families as 'Real' & "Common-Interest" human beings. I participated, created, and organized events and documented how-to-do-events for other volunteers. These brought IBMers together inside or outside of their 'working' environment to have fun, to associate, to realize those innate qualities that are in all of us. I believe it allowed for better communication and cooperation in the work place.

To me it was family. Some old IBMers might remember when Music, Song, Skits were part of IBM Branch Office meetings. As President of the IBM Clubs Palo Alto branch (7 yrs.), I used our Volunteer Club Votes to spend ALL that IBM donated money, because they <administratively> gave it back to IBM if we didn't.

Without a strong IBM Club presence, it gets whittled down to 2-3 events a year. For a time WE WERE a FAMILY.

bookmama3 Georgann Putintsev , in reply to" aria-label="in reply to">
Absolutely! Back when white shirts/black suits were a requirement. There was a country club in Poughkeepsie, softball teams, Sunday brunch, Halloween parties in the fall, Christmas parties in December where thousands of age appropriate Fisher Price toys were given out to employee's kids. Today "IBMer" is used by execs as a term of derision. Employees are overworked and under appreciated and shortsighted, overpaid executives rule the roost. The real irony is that talented, vital employees are being retired for "costing too much" while dysfunctional top level folk are rewarded with bonuses and stock when they are let go. And it's all legal. It's disgraceful.
OrangeGina R. J. Smith , in reply to" aria-label="in reply to">
very true, however for many of us, our co-workers of a very long time ARE family. Corporations are NOT people, but they are comprised of them.
HiJinks R. J. Smith , in reply to" aria-label="in reply to">
It was true at one time, but no more.
Herb Tarlick R. J. Smith , in reply to" aria-label="in reply to">
This one was until the mid eighties.

[Oct 30, 2018] Eventually all the people who I worked with that were outsourced to IBM were packaged off and all of our jobs were sent offshore.

Oct 30, 2018 | features.propublica.org

Joe Harkins , Saturday, March 24, 2018 12:12 PM

I recall, back in the mid-1960s, encountering employees of major major corporations like IBM, US Steel, the Big Three in Detroit, etc, There was a certain smugness there. I recall hearing bragging about the awesome retirement incomes. Yes, I was jealous. But I also had a clear eye as to the nature of the beast they were working for, and I kept thinking of the famous limerick:

There was a young lady of Niger
Who smiled as she rode on a Tiger;
They came back from the ride
With the lady inside,
And the smile on the face of the Tiger.

JoeJoe , Friday, March 23, 2018 10:25 AM
As an ex-IBM employee, I was given a package ( 6 months pay and a "transition" course) because I was getting paid too much or so I was told. I was part of a company (oil industry) that outsourced it's IT infrastructure support personnel and on several occasions was told by my IBM management that they just don't know what to do with employees who make the kind of money I do when we can do it much cheaper somewhere else (meaning offshore).

Eventually all the people who I worked with that were outsourced to IBM were packaged off and all of our jobs were sent offshore. I just turned 40 and found work back in the oil industry. In the short time I was with IBM I found their benefits very restricted, their work policies very bureaucratic and the office culture very old boys club.

If you weren't part of IBM and were an outsourced employee, you didn't fit in. At the time I thought IBM was the glory company in IT to work for, but quickly found out they are just a dinosaur. It's just a matter of time for them.

[Oct 30, 2018] To a bean counter a developer in a RH office in North America or Europe who s been coding for RH for 10 years is valued same as a developer in Calcutta who just graduated from college

Notable quotes:
"... There's not an intrinsic advantage to being of a certain nationality, American included. Sure, there are a lot of bad companies and bad programmers coming from India, but there are plenty of incompetent developers right here too. ..."
"... A huge problem with the good developers over there is the lack of English proficiency and soft skills. However, being born or graduated in Calcutta (or anywhere else for that matter) is not a determination of one's skill. ..."
"... I get what the intention of the first comment was intended to be, but it still has that smugness that is dangerous to the American future. As the world becomes more interconnected, and access to learning improves, when people ask you why are you better than that other guy, the answer better be something more than "well, I'm American and he is from Calcutta" because no one is going to buy that. The comment could've said that to a bean counter a solid developer with 10 years of experience is worth the same as a junior dev who just came out of school and make the same point. What exactly was the objective of throwing in Calcutta over there? ..."
"... I have dealt with this far too much these VPs rarely do much work and simply are hit on bottom line ( you are talking about 250k+), but management in US doesn't want to sit off hours and work with India office so they basically turn a blind eye on them. ..."
Oct 30, 2018 | arstechnica.com

dmoan, 2018-10-30T07:32:29-04:00

Drizzt321 wrote: show nested quotes

A.Felix wrote:

Drizzt321 wrote:

Dilbert wrote:

motytrah wrote:

bolomkxxviii wrote:

No good will come from this. IBM's corporate environment and financial near-sightedness will kill Red Hat. Time to start looking for a new standard bearer in Linux for business.

I agree. Redhat has dev offices all over. A lot of them in higher cost areas of the US and Europe. There's no way IBM doesn't consolidate and offshore a bunch of that work.

This. To a bean counter a developer in a RH office in North America or Europe who's been coding for RH for 10 years is valued same as a developer in Calcutta who just graduated from college. For various definitions of word 'graduated'.

I'm just waiting until some major company decides that some of the nicer parts of middle America/Appalachia can be a LOT cheaper, still nice, and let them pay less in total while keeping some highly skilled employees.

I don't know about that. Cities can be expensive but part of the reason is that a lot of people want to live there, and supply/demand laws start acting. You'll be able to get some talent no doubt, but a lot of people who live nearby big cities wouldn't like to leave all the quality of life elements you have there, like entertainment, cultural events, shopping, culinary variety, social events, bigger dating scene, assorted array of bars and night clubs, theatre, opera, symphonies, international airports... you get the drift.

I understand everyone is different, but you would actually need to pay me more to move to a smaller town in middle America. I also work with people who would take the offer without hesitation, but in my admittedly anecdotal experience, more tech people prefer the cities than small towns. Finally, if you do manage to get some traction in getting the people and providing the comforts, then you're just going to get the same increase in cost of living wherever you are because now you're just in one more big city.

Costs of life are a problem, but we need to figure out how to properly manage them, instead of just saying "lets move them somewhere else". Also we shouldn't discount the capability of others, because going by that cost argument outsourcing becomes attractive. The comment you're replying to tries to diminish Indian engineers, but the reverse can still be true. A developer in India who has been working for 10 years costs even less than an American who just graduated, for various definitions of graduated. There's over a billion people over there, and the Indian Institutes of Technology are nothing to scoff at.

There's not an intrinsic advantage to being of a certain nationality, American included. Sure, there are a lot of bad companies and bad programmers coming from India, but there are plenty of incompetent developers right here too. It's just that there are a lot more in general over there and they would come for cheap, so in raw numbers it seems overwhelming, but that sword cuts both ways, the raw number of competent ones is also a lot.

About 5% of the American workforce are scientists and engineers, which make a bit over 7 million people. The same calculation in India brings you to almost 44 million people.

A huge problem with the good developers over there is the lack of English proficiency and soft skills. However, being born or graduated in Calcutta (or anywhere else for that matter) is not a determination of one's skill.

I get what the intention of the first comment was intended to be, but it still has that smugness that is dangerous to the American future. As the world becomes more interconnected, and access to learning improves, when people ask you why are you better than that other guy, the answer better be something more than "well, I'm American and he is from Calcutta" because no one is going to buy that. The comment could've said that to a bean counter a solid developer with 10 years of experience is worth the same as a junior dev who just came out of school and make the same point. What exactly was the objective of throwing in Calcutta over there? Especially when we then move to a discussion about how costly it is to pay salaries in America. Sounds a bit counterproductive if you ask me.

I think a lot of the dislike for Indian developers is that they usually are the outsourced to cheap as possible code monkey developers. Which can be a problem anywhere, for sure, but at least seem exacerbated by US companies outsourcing there. In my limited experience, they're either intelligent and can work up to working reasonably independently and expanding on a ticket intelligently. Or they're copy a pasta code monkey and need pretty good supervision of the code that's produced. Add in the problem if timezones and folks who may not understand English that great, or us not understanding their English, and it all gives them a bad name. Yet I agree, I know some quite good developers. Ones that didn't go to a US college.

My impression, totally anecdotal, is that unless you can hire or move a very good architect/lead + project/product manager over there so you can interact in real-time instead of with a day delay, it's just a huge PITA and slows things down. Personally I'd rather hire a couple of seemingly competent 3 years out of college on their 2nd job (because they rarely stay very long at their first one, right?) and pay from there.

Companies/management offshore because it keep revenue per employee and allows them to be promoted by inflating their direct report allowing them to build another "cheap" pyramid hierarchy. A manager in US can become a director or VP easily by having few managers report to him from India. Even better this person can go to India ( they are most often Indian) and claim to lead the India office and improve outsourcing while getting paid US salary.

I have dealt with this far too much these VPs rarely do much work and simply are hit on bottom line ( you are talking about 250k+), but management in US doesn't want to sit off hours and work with India office so they basically turn a blind eye on them.

[Oct 30, 2018] IBM is bad, but it s just the tip of the iceberg. I worked for a major international company that dumped almost the entire IT workforce and replaced them with managed services , almost exclusively H-1B workers from almost exclusively India.

Oct 30, 2018 | features.propublica.org
netmouse , Saturday, March 24, 2018 10:49 AM
Outstanding. I had to train people in IBM India to do my job when (early) "retired". I actually found a new internal job in IBM, the hiring manager wrote/chat that I was a fit. I was denied the job because my current group said I had to transfer and the receiving group said I had to be on a contract, stalemate! I appealed and group HR said sorry, can't do and gave me one reason after another, that I could easily refute, then they finally said the job was to be moved overseas. Note most open jobs posted were categorized for global resources. I appealed to Randy (former HR SVP) and no change. At least I foced them to finally tell the truth. I had also found another job locally near home and received an email from the HR IBM person responsible for the account saying no, they were considering foreigners first, if they found no one suitable they would then consider Americans. I appealed to my IBM manager who basically said sorry, that is how things are now. All in writing, so no more pretending it is a skill issue. People, it is and always has been about cheap labor. I recall when a new IBM technology began, Websphere, and I was sent for a month's training. Then in mid-2000's training and raises pretty much stopped and that was when resource actions were stepped up.
TVGizmo , Friday, March 23, 2018 10:36 PM
IBM started downhill as a result of many factors.

But the single most cause was when.....Respect for the Individual (the first Basic Belief) was ignored. Everything else was collateral damage.

Former 'Manager of the Year' in the old Field Engineering Division.

CRAW , Friday, March 23, 2018 9:51 AM
IBM is bad, but it's just the tip of the iceberg. I worked for a major international company that dumped almost the entire IT workforce and replaced them with "managed services", almost exclusively H-1B workers from almost exclusively India. This has been occurring for decades in many, MANY businesses around the country large and small. Even this article seems to make a special effort to assure us that "some" workers laid off in America were replaced with "younger, less experienced, lower-paid American workers and moving many other jobs overseas." How many were replaced with H-1B, H-4 EAD, OPT, L-1, etc? It's by abusing these work visa programs that companies facilitate moving the work overseas in the first place. I appreciate this article, but I think it's disingenuous for ProPublica to ignore the elephant in the room - work visa abuse. Why not add a question or two to your polls about that? It wouldn't be hard. For example, "Do you feel that America's work visa programs had an impact on your employment at IBM? Do you feel it has had an impact on your ability to regain employment after leaving IBM?" I'd like to see the answer to THOSE questions.

[Oct 30, 2018] Neoliberal way of screwing up people is via HR

Notable quotes:
"... I too was a victim of IBM's underhanded trickery to get rid of people...39 years with IBM, a top performer. ..."
Oct 30, 2018 | features.propublica.org
xn0 , Monday, April 2, 2018 1:44 PM
These practices are "interesting". And people still wonder why there are so many deadly amok runs at US companies? What do they expect when they replace old and experienced workers with inexperienced millenials, who often lack basic knowledge about their job? Better performance?

This will run US tech companies into the ground. This sort of "American" HR management is gaining ground here in Germany as well, its troubling. And on top they have to compete against foreign tech immigrants from middle eastern and asian companies. Sure fire recipe for social unrest and people voting for right-wing parties.

nottigerwoods , Friday, March 30, 2018 1:39 PM
I too was a victim of IBM's underhanded trickery to get rid of people...39 years with IBM, a top performer. I never got a letter telling me to move to Raleigh. All i got was a phone call asking me if i wanted to take the 6 month exception to consider it. Yet, after taking the 6 month exception, I was told I could no longer move, the colocation was closed. Either I find another job, not in Marketing support (not even Marketing) or leave the company. I received no letter from Ginni, nothing. I was under the impression I could show up in Raleigh after the exception period. Not so. It was never explained....After 3 months I will begin contracting with IBM. Not because I like them, because I need the money...thanks for the article.
doncanard , Friday, March 30, 2018 1:33 PM
dropped in 2013 after 22 years. IBM stopped leading in the late 1980's, afterwards it implemented "market driven quality" which meant listen for the latest trends, see what other people were doing, and then buy the competition or drive them out of business. "Innovation that matters": it's only interesting if an IBM manager can see a way to monetize it.

That's a low standard. It's OK, there are other places that are doing better. In fact, the best of the old experienced people went to work there. Newsflash: quality doesn't change with generations, you either create it or you don't.

Sounds like IBM is building its product portfolio to match its desired workforce. And of course, on every round of layoffs, the clear criterion was people who were compliant and pliable - who's ready to follow orders ? Best of luck.

[Oct 30, 2018] In the late 1980s, IBM offered decent packages to retirement eligible employees. For those close to retirement age, it was a great deal - 2 weeks pay for every year of service (capped at 26 years) plus being kept on to perform their old job for 6 months (while collecting retirement, until the government stepped in an put a halt to it).

Oct 30, 2018 | features.propublica.org

HiJinks , Sunday, March 25, 2018 3:07 AM

I agree with many who state the report is well done. However, this crap started in the early 1990s. In the late 1980s, IBM offered decent packages to retirement eligible employees. For those close to retirement age, it was a great deal - 2 weeks pay for every year of service (capped at 26 years) plus being kept on to perform their old job for 6 months (while collecting retirement, until the government stepped in an put a halt to it). Nobody eligible was forced to take the package (at least not to general knowledge). The last decent package was in 1991 - similar, but not able to come back for 6 months.

However, in 1991, those offered the package were basically told take it or else. Anyone with 30 years of service or 15 years and 55 was eligible and anyone within 5 years of eligibility could "bridge" the difference.

They also had to sign a form stating they would not sue IBM in order to get up to a years pay - not taxable per IRS documents back then (but IBM took out the taxes anyway and the IRS refused to return - an employee group had hired lawyers to get the taxes back, a failed attempt which only enriched the lawyers).

After that, things went downhill and accelerated when Gerstner took over. After 1991, there were still a some workers who could get 30 years or more, but that was more the exception. I suspect the way the company has been run the past 25 years or so has the Watsons spinning in their graves. Gone are the 3 core beliefs - "Respect for the individual", "Service to the customer" and "Excellence must be a way of life".

Chris S. HiJinks

could be true... but i thought Watson was the IBM data analytics computer thingy... beat two human players at Jeopardy on live tv a year or two or so back.. featured on 60 Minutes just around last year.... :

ArnieTracey , Saturday, March 24, 2018 7:15 PM
IBM's policy reminds me of the "If a citizen = 30 y.o., then mass execute such, else if they run then hunt and kill them one by one" social policy in the Michael York movie "Logan's Run."

From Wiki, in case you don't know: "It depicts a utopian future society on the surface, revealed as a dystopia where the population and the consumption of resources are maintained in equilibrium by killing everyone who reaches the age of 30. The story follows the actions of Logan 5, a "Sandman" who has terminated others who have attempted to escape death, and is now faced with termination himself."

Jr Jr , Saturday, March 24, 2018 4:37 PM
Corporate loyalty has been gone for 25 years. This isnt surprising. But this age discrimination is blatantly illegal.

[Oct 30, 2018] Neoliberal IT working place is really a minefield for older workers

Notable quotes:
"... The annual unemployment rate topped 8% in 1975 and would reach nearly 10% in 1982. The economy seemed trapped in the new nightmare of stagflation," so called because it combined low economic growth and high unemployment ("stagnation") with high rates of inflation. And the prime rate hit 20% by 1980. ..."
Oct 30, 2018 | features.propublica.org

disqus_qN55ZbK3Ce , Friday, March 23, 2018 3:09 PM

If anything, IBM is behind the curve. I was terminated along with my entire department from a major IBM subcontractor, with all affected employees "coincidentally" being over 50. By "eliminating the department" and forcing me to sign a waiver to receive my meager severance, they avoided any legal repercussions. 18 months later on the dot (the minimum legal time period), my workload was assigned to three new hires, all young. Interestingly, their combined salaries are more than mine, and I could have picked up all their work for about $200 in training (in social media posting, something I picked up on my own last year and am doing quite well, thank you).

And my former colleagues are not alone. A lot of friends of mine have had similar outcomes, and as the article states, no one will hire people my age willingly in my old capacity. Luckily again, I've pivoted into copywriting--a discipline where age is still associated with quality ("dang kids can't spell anymore!"). But I'm doing it freelance, with the commensurate loss of security, benefits, and predictability of income.

So if IBM is doing this now, they are laggards. But because they're so big, there's a much more obvious paper trail.

Stephen McConnell , Friday, March 23, 2018 10:44 AM
One of the most in-depth, thoughtful and enlightening pieces of journalism I've seen. Having worked on Capitol Hill during the early 1980's for the House and Senate Aging Committees, we worked hard to abolish the remnants of mandatory retirement and to strengthen the protections under the ADEA. Sadly, the EEOC has become a toothless bureaucracy when it comes to age discrimination cases and the employers, as evidenced by the IBM case, have become sophisticated in hiding what they're doing to older workers. Peter's incredibly well researched article lays the case out for all to see. Now the question is whether the government will step up to its responsibilities and protect older workers from this kind of discrimination in the future. Peter has done a great service in any case.
Mark , Friday, March 23, 2018 1:05 AM
The US tech sector has mostly ignored US citizen applicants, of all ages, since the early 2000s. Instead, preferring to hire foreign nationals. The applications of top US citizen grads are literally thrown in the garbage (or its electronic equivalent) while companies like IBM have their hiring processes dominated by Indian nationals. IBM is absolutely a poster-child for H-1B, L-1, and OPT visa abuse.
CRAW Mark , in reply to" aria-label="in reply to">
EXACTLY. Work visas are the enabler of this discrimination. We are overrun.
Warren Stiles , Thursday, March 22, 2018 7:17 PM
Bottom line is we have entered an era when there are only two classes who are protected in our economy; the Investor Class and the Executive Class. With Wall Street's constant demand for higher profits and increased shareholder value over all other business imperatives, rank and file workers have been relegated to the class of expendable resource. I propose that all of us over fifty who have been riffed out of Corporate America band together for the specific purpose of beating the pants off them in the marketplace. The best revenge is whooping their youngster butts at the customer negotiating table. By demonstrating we are still flexible and nimble, yet with the experience to avoid the missteps of misspent youth, we prove we can deliver value well beyond what narrow-minded bean counters can achieve.
DDRLSGC Warren Stiles , in reply to" aria-label="in reply to">
or whipping the butts of the older managers who thought that their older workers were over the hill.
Warren Stiles DDRLSGC , in reply to" aria-label="in reply to">
Just like they are...
Jeff Russell , Thursday, March 22, 2018 4:31 PM
I started at IBM 3 days out of college in 1979 and retired in 2017. I was satisfied with my choice and never felt mistreated because I had no expectation of lifetime employment, especially after the pivotal period in the 1990's when IBM almost went out of business. The company survived that period by dramatically restructuring both manufacturing costs and sales expense including the firing of tens of thousands of employees. These actions were well documented in the business news of the time, the obvious alternative was bankruptcy.

I told the authors that anyone working at IBM after 1993 should have had no expectation of a lifetime career. Downsizing, outsourcing, movement of work around the globe was already commonplace at all such international companies. Any expectation of "loyalty", that two-way relationship of employee/company from an earlier time, was wishful thinking. I was always prepared to be sent packing, without cause, at any time and always had my resume up-to-date. I stayed because of interesting work, respectful supervisors, and adequate compensation. The "resource action" that forced my decision to retire was no surprise, the company that hired me had been gone for decades.

DDRLSGC Jeff Russell , in reply to" aria-label="in reply to">
With all the automation going on around the world, these business leaders better worry about people not having money to buy their goods and services plus what are they going to do with the surplus of labor
John Kauai Jeff Russell , in reply to" aria-label="in reply to">
I had, more or less, the same experience at Cisco. They paid me to quit. Luckily, I was ready for it.

The article mentions IBMs 3 failures. So who was it that was responsible for not anticipating the transitions? It is hard enough doing what you already know. Perhaps companies should be spending more on figuring out "what's next" and not continually playing catch-up by dumping the older workers for the new.

MichiganRefugee , Friday, March 23, 2018 9:52 AM
I was laid off by IBM after 29 years and 4 months. I had received a division award in previous year, and my last PBC appraisal was 2+ (high performer.) The company I left was not the company I started with. Top management--starting with Gerstner--has steadily made IBM a less desirable place to work. They now treat employees as interchangeable assets and nothing more. I cannot/would not recommend IBM as an employer to any young programmer.
George Purcell , Friday, March 23, 2018 7:41 AM
Truly awesome work. I do want to add one thing, however--the entire rhetoric about "too many old white guys" that has become so common absolutely contributes to the notion that this sort of behavior is not just acceptable but in some twisted way admirable as well.
Bob Fritz , Thursday, March 22, 2018 7:35 PM
I read the article and all the comments.

Is anyone surprised that so many young people don't think capitalism is a good system any more?

I ran a high technology electronic systems company for years. We ran it "the old way." If you worked hard, and tried, we would bend over backwards to keep you. If technology or business conditions eliminated your job, we would try to train you for a new one. Our people were loyal, not like IBMers today. I honestly think that's the best way to be profitable.

People afraid of being unjustly RIFFed will always lack vitality.

petervonstackelberg , Thursday, March 22, 2018 2:00 PM
I'm glad someone is finally paying attention to age discrimination. IBM apparently is just one of many organizations that discriminate.

I'm in the middle of my own fight with the State University of New York (SUNY) over age discrimination. I was terminated by a one of the technical colleges in the SUNY System. The EEOC/New York State Division of Human Rights (NYDHR) found that "PROBABLE CAUSE (NYDHR's emphasis) exists to believe that the Respondent (Alfred State College - SUNY) has engaged in or is engaging in the unlawful discriminatory practice complained of." Investigators for NYDHR interviewed several witnesses, who testified that representatives of the college made statements such as "we need new faces", "three old men" attending a meeting, an older faculty member described as an "albatross", and "we ought to get rid of the old white guys". Witnesses said these statements were made by the Vice President of Academic Affairs and a dean at the college.

davosil , Sunday, March 25, 2018 5:00 PM
This saga at IBM is simply a microcosm of our overall economy. Older workers get ousted in favor of younger, cheaper workers; way too many jobs get outsourced; and so many workers today [young and old] can barely land a full-time job.
This is the behavior that our system incentivises (and gets away with) in this post Reagan Revolution era where deregulation is lauded and unions have been undermined & demonized. We need to seriously re-work 'work', and in order to do this we need to purge Republicans at every level, as they CLEARLY only serve corporate bottom-lines - not workers - by championing tax codes that reward outsourcing, fight a livable minimum wage, eliminate pensions, bust unions, fight pay equity for women & family leave, stack the Supreme Court with radical ideologues who blatantly rule for corporations over people all the time, etc. etc. ~35 years of basically uninterrupted Conservative economic policy & ideology has proven disastrous for workers and our quality of life. As goes your middle class, so goes your country.
ThinkingAloud , Friday, March 23, 2018 7:18 AM
The last five words are chilling... This is an award-winning piece....
RetiredIBM.manager , Thursday, March 22, 2018 7:39 PM
I am a retired IBM manager having had to execute many of these resource reduction programs.. too many.. as a matter of fact. ProPUBLICA....You nailed it!
David , Thursday, March 22, 2018 3:22 PM
IBM has always treated its customer-facing roles like Disney -- as cast members who need to match a part in a play. In the 60s and 70s, it was the white-shirt, blue-suit white men whom IBM leaders thought looked like mainframe salesmen. Now, rather than actually build a credible cloud to compete with Amazon and Microsoft, IBM changes the cast to look like cloud salespeople. (I work for Microsoft. Commenting for myself alone.)
CRAW David , in reply to" aria-label="in reply to">
Now IBM still treats their employees like Disney - by replacing them with H-1B workers.
MHV IBMer , Friday, March 23, 2018 10:35 PM
I am a survivor, the rare employee who has been at IBM for over 35 years. I have seen many, many layoff programs over 20 years now. I have seen tens of thousands people let go from the Hudson Valley of N.Y. Those of us who have survived, know and lived through what this article so accurately described. I currently work with 3 laid off/retired and rehired contractors. I have seen age discrimination daily for over 15 years. It is not only limited to layoffs, it is rampant throughout the company. Promotions, bonuses, transfers for opportunities, good reviews, etc... are gone if you are over 45. I have seen people under 30 given promotions to levels that many people worked 25 years for. IBM knows that these younger employees see how they treat us so they think they can buy them off. Come to think of it, I guess they actually are! They are ageist, there is no doubt, it is about time everyone knew. Excellent article.
Goldie Romero , Friday, March 23, 2018 2:31 PM
Nice article, but seriously this is old news. IBM has been at this for ...oh twenty years or more.
I don't really have a problem with it in terms of a corporation trying to make money. But I do have a problem with how IBM also likes to avoid layoffs by giving folks over 40 intentionally poor reviews, essentially trying to drive people out. Just have the guts to tell people, we don't need you anymore, bye. But to string people along as the overseas workers come in...c'mon just be honest with your workers.
High tech over 40 is not easy...I suggest folks prep for a career change before 50. Then you can have the last laugh on a company like IBM.
jblog , Friday, March 23, 2018 10:37 AM
From pages 190-191 of my novel, Ordinary Man (Amazon):

Throughout
it all, layoffs became common, impacting mostly older employees with many years
of service. These job cuts were dribbled out in small numbers to conceal them
from the outside world, but employees could plainly see what was going on.

The laid off
employees were supplanted by offshoring work to low-costs countries and hiring
younger employees, often only on temporary contracts that offered low pay and
no benefits – a process pejoratively referred to by veteran employees as
"downsourcing." The recruitment of these younger workers was done under the
guise of bringing in fresh skills, but while many of the new hires brought new
abilities and vitality, they lacked the knowledge and perspective that comes
with experience.

Frequently,
an older more experienced worker would be asked to help educate newer
employees, only to be terminated shortly after completing the task. And the new
hires weren't fooled by what they witnessed and experienced at OpenSwitch,
perceiving very quickly that the company had no real interest in investing in
them for the long term. To the contrary, the objective was clearly to grind as
much work out of them as possible, without offering any hope of increased
reward or opportunity.

Most of the
young recruits left after only a year or two – which, again, was part of the
true agenda at the company. Senior management viewed employees not as talent,
but simply as cost, and didn't want anyone sticking around long enough to move
up the pay scale.

turquoisewaters , Thursday, March 22, 2018 10:19 PM
This is why you need unions.
Aaron Stackpole , Thursday, March 22, 2018 5:23 PM
This is the nail in the coffin. As an IT manager responsible for selecting and purchasing software, I will never again recommend IBM products. I love AIX and have worked with a lot if IBM products but not anymore. Good luck with the millennials though...
awb22 , Thursday, March 22, 2018 12:14 PM
The same thing has been going on at other companies, since the end of WWII. It's unethical, whether the illegality can be proven or not.

In the RTP area, where I live, I know many, many current and former employees. Times have changed, but the distinction between right and wrong hasn't.

Suzan awb22 , in reply to" aria-label="in reply to">
I was hired by one of the government agencies in RTP last year and then never given a start date after I submitted my SS number & birth certificate.

Anyone familiar with this situation?

Dave Allen , Thursday, March 22, 2018 1:07 PM
I worked for four major corporations (HP, Intel, Control Data Corporation, and Micron Semiconductor) before I was hired by IBM as a rare (at that time) experienced new hire. Even though I ended up working for IBM for 21 years, and retired in 2013, because of my experiences at those other companies, I never considered IBM my "family." The way I saw it, every time I received a paycheck from IBM in exchange for two weeks' work, we were (almost) even. I did not owe them anything else and they did not owe me anything. The idea of loyalty between a corporation and an at-will employee makes no more sense than loyalty between a motel and its guests. It is a business arrangement, not a love affair. Every individual needs to continually assess their skills and their value to their employer. If they are not commensurate, it is the employee's responsibility to either acquire new skills or seek a new employer. Your employer will not hesitate to lay you off if your skills are no longer needed, or if they can hire someone who can do your job just as well for less pay. That is free enterprise, and it works for people willing to take advantage of it.
sometimestheyaresomewhatright Dave Allen , in reply to" aria-label="in reply to">
I basically agree. But why should it be OK for a company to fire you just to replace you with a younger you? If all that they accomplish is lowering their health care costs (which is what this is really about). If the company is paying about the same for the same work, why is firing older workers for being older OK?
Dave Allen sometimestheyaresomewhatright , in reply to" aria-label="in reply to">
Good question. The point I was trying to make is that people need to watch out for themselves and not expect their employer to do what is "best" for the employee. I think that is true whatever age the employee happens to be.

Whether employers should be able to discriminate against (treat differently) their employees based on age, gender, race, religion, etc. is a political question. Morally, I don't think they should discriminate. Politically, I think it is a slippery slope when the government starts imposing regulations on free enterprise. Government almost always creates more problems than they fix.

DDRLSGC Dave Allen , in reply to" aria-label="in reply to">
Sorry, but when you deregulate the free enterprise, it created more problems than it fixes and that is a fact that has been proven for the last 38 years.
Danllo DDRLSGC , in reply to" aria-label="in reply to">
That's just plain false. Deregulation creates competiiton. Competition for talented and skilled workers creates opportunities for those that wish to be employed and for those that wish to start new ventures. For example, when Ma Bell was regulated and had a monopoly on telecommunications there was no innovation in the telecom inudstry. However, when it was deregulated, cell phones, internet, etc exploded ... creating billionaires and millionaires while also improving the quality of life.
DDRLSGC Danllo , in reply to" aria-label="in reply to">
No, it happens to be true. When Reagan deregulate the economy, a lot of those corporate raiders just took over the companies, sold off the assets, and pocketed the money. What quality of life? Half of American lived near the poverty level and the wages for the workers have been stagnant for the last 38 years compared to a well-regulated economy in places like Germany and the Scandinavian countries where the workers have good wages and a far better standard of living than in the USA. Why do you think the Norwegians told Trump that they will not be immigrating to the USA anytime soon?
NotSure DDRLSGC , in reply to" aria-label="in reply to">
What were the economic conditions before Regan? It was a nightmare before Regan.

The annual unemployment rate topped 8% in 1975 and would reach nearly 10% in 1982. The economy seemed trapped in the new nightmare of stagflation," so called because it combined low economic growth and high unemployment ("stagnation") with high rates of inflation. And the prime rate hit 20% by 1980.
DDRLSGC NotSure , in reply to" aria-label="in reply to">
At least we had a manufacturing base in the USA, strong regulations of corporations, corporate scandals were far and few, businesses did not go under so quickly, prices of goods and services did not go through the roof, people had pensions and could reasonably live off them, and recessions did not last so long or go so deep until Reagan came into office. In Under Reagan, the jobs were allowed to be send overseas, unions were busted up, pensions were reduced or eliminated, wages except those of the CEOs were staganent, and the economic conditions under Bush, Senior and Bush, Jr. were no better except that Bush, Jr, was the first president to have a net minus below zero growth, so every time we get a Republican Administration, the economy really turns into a nightmare. That is a fact.

You have the Republicans in Kansas, Oklahoma, and Wisconsin using Reaganomics and they are economic disaster areas.

DDRLSGC NotSure , in reply to" aria-label="in reply to">
You had an industrial base in the USA, lots of banks and savings and loans to choose from, lots of mom and pop stores, strong government regulation of the economy, able to live off your pensions, strong unions and employment laws along with the court system to back you up against corporate malfeasance. All that was gone when Reagan and the two Bushes came into office.
james Foster , Thursday, March 29, 2018 8:37 PM
Amazingly accurate article. The once great IBM now a dishonest and unscrupulous corporation concerned more about earnings per share than employees, customers, or social responsibility. In Global Services most likely 75% or more jobs are no longer in the US - can't believe a word coming out of Armonk.
Philip Meyer james Foster , in reply to" aria-label="in reply to">
I'm not sure there was ever a paradise in employment. Yeah, you can say there was more job stability 50 or 60 years ago, but that applied to a much smaller workforce than today (mostly white men). It is a drag, but there are also lot more of us old farts than there used to be and we live a lot longer in retirement as well. I don't see any magic bullet fix either.
George A , Tuesday, March 27, 2018 6:12 PM
Warning to Google/Facebook/Apple etc. All you young people will get old. It's inevitable. Do you think those companies will take care of you?
econdataus , Sunday, March 25, 2018 3:01 PM
Great article. What's especially infuriating is that the industry continues to claim that there is a shortage of STEM workers. For example, google "claim of 1.4 million computer science jobs with only 400,000 computer science graduates to fill them". If companies would openly say, "we have plenty of young STEM workers and prefer them to most older STEM workers", we could at least start addressing the problem. But they continue to promote the lie of there being a STEM shortage. They just want as big a labor pool as possible, unemployed workers be damned.
Buzz , Friday, March 23, 2018 12:00 PM
I've worked there 17 years and have worried about being layed off for about 11 of them. Moral is in the toilet. Bonuses for the rank and file are in the under 1% range while the CEO gets millions. Pay raises have been non existent or well under inflation for years. Adjusting for inflation, I make $6K less than I did my first day. My group is a handful of people as at least 1/2 have quit or retired. To support our customers, we used to have several people, now we have one or two and if someone is sick or on vacation, our support structure is to hope nothing breaks. We can't keep millennials because of pay, benefits and the expectation of being available 24/7 because we're shorthanded. As the unemployment rate drops, more leave to find a different job, leaving the old people as they are less willing to start over with pay, vacation, moving, selling a house, pulling kids from school, etc. The younger people are generally less likely to be willing to work as needed on off hours or to pull work from a busier colleague. I honestly have no idea what the plan is when the people who know what they are doing start to retire, we are way top heavy with 30-40 year guys who are on their way out, very few of the 10-20 year guys due to hiring freezes and we can't keep new people past 2-3 years. It's like our support business model is designed to fail.
OrangeGina , Friday, March 23, 2018 11:41 AM
Make no mistake. The three and four letter acronyms and other mushy corporate speak may differ from firm to firm, but this is going on in every large tech company old enough to have a large population of workers over 50. I hope others will now be exposed.
JeffMo , Friday, March 23, 2018 10:23 AM
This article hits the nail right on the head, as I come up on my 1 year anniversary from being....ahem....'retired' from 23 years at IBM....and I'll be damned if I give them the satisfaction of thinking this was like a 'death' to me. It was the greatest thing that could have ever happened. Ginny and the board should be ashamed of themselves, but they won't be.
Frankie , Friday, March 23, 2018 1:00 AM
Starting around age 40 you start to see age discrimination. I think this is largely due to economics, like increased vacation times, higher wages, but most of all the perception that older workers will run up the medical costs. You can pass all the age related discrimination laws you want, but look how ineffective that has been.

If you contrast this with the German workforce, you see that they have more older workers with the skills and younger workers without are having a difficult time getting in. So what's the difference? There are laws about how many vacation weeks that are given and there is a national medical system that everyone pays, so discrimination isn't seen in the same light.

The US is the only hold out maybe with South Africa that doesn't have a good national medical insurance program for everyone. Not only do we pay more than the rest of the world, but we also have discrimination because of it.

Rick Gundlach , Thursday, March 22, 2018 11:38 PM
This is very good, and this is IBM. I know. I was plaintiff in Gundlach v. IBM Japan, 983 F.Supp.2d 389, which involved their violating Japanese labor law when I worked in Japan. The New York federal judge purposely ignored key points of Japanese labor law, and also refused to apply Title VII and Age Discrimination in Employment to the parent company in Westchester County. It is a huge, self-described "global" company with little demonstrated loyalty to America and Americans. Pennsylvania is suing them for $170 million on a botched upgrade of the state's unemployment system.
Jeff , Thursday, March 22, 2018 2:05 PM
In early 2013 I was given a 3 PBC rating for my 2012 performance, the main reason cited by my manager being that my team lead thought I "seemed distracted". Five months later I was included in a "resource action", and was gone by July. I was 20 months shy of 55. Younger coworkers were retained. That was about two years after the product I worked on for over a decade was off-shored.

Through a fluke of someone from the old, disbanded team remembering me, I was rehired two years later - ironically in a customer support position for the very product I helped develop.

While I appreciated my years of service, previous salary, and previous benefits being reinstated, a couple years into it I realized I just wasn't cut out for the demands of the job - especially the significant 24x7 pager duty. Last June I received email describing a "Transition to Retirement" plan I was eligible for, took it, and my last day will be June 30. I still dislike the job, but that plan reclassified me as part time, thus ending pager duty for me. The job still sucks, but at least I no longer have to despair over numerous week long 24x7 stints throughout the year.

A significant disappointment occurred a couple weeks ago. I was discussing healthcare options with another person leaving the company who hadn't been resource-actioned as I had, and learned the hard way I lost over $30,000 in some sort of future medical benefit account the company had established and funded at some point. I'm not sure I was ever even aware of it. That would have funded several years of healthcare insurance during the 8 years until I'm eligible for Medicare. I wouldn't be surprised if their not having to give me that had something to do with my seeming "distracted" to them. <rolls eyes="">

What's really painful is the history of that former account can still be viewed at Fidelity, where it associates my departure date in 2013 with my having "forfeited" that money. Um, no. I did not forfeit that money, nor would I have. I had absolutely no choice in the matter. I find the use of the word 'forfeited' to describe what happened as both disingenuous and offensive. That said, I don't know whether's that's IBM's or Fidelity's terminology, though.

Herb Jeff , in reply to" aria-label="in reply to">
Jeff, You should call Fidelity. I recently received a letter from the US Department of Labor that they discovered that IBM was "holding" funds that belonged to me that I was never told about. This might be similar or same story.
AlmostNative , Sunday, April 1, 2018 4:27 PM
Great article. And so so close to home. I worked at IBM for 23 years until I became yet another statistic -- caught up in one of their many "RA's" -- Resource Actions. I also can identify with the point about being encouraged to find a job internally yet hiring managers told to not hire. We were encouraged to apply for jobs outside the US -- Europe mainly -- as long as we were willing to move and work at the prevailing local wage rate. I was totally fine with that as my wife had been itching for some time for a chance to live abroad. I applied for several jobs across Europe using an internal system IBM set up just for that purpose. Never heard a word. Phone calls and internal e-mails to managers posting jobs in the internal system went unanswered. It turned out to be a total sham as far as I was concerned.

IBM has laid off hundreds of thousands in the last few decades. Think of the MILLIONS of children, spouses, brothers/sisters, aunts/uncles, and other family members of laid-off people that were affected. Those people are or will be business owners and in positions to make technology decisions. How many of them will think "Yeah, right, hire IBM. They're the company that screwed daddy/mommy". I fully expect -- and I fully hope -- that I live to see IBM go out of business. Which they will, sooner or later, as they are living off of past laurels -- billions in the bank, a big fat patent portfolio, and real estate that they continue to sell off or rent out. If you do hire IBM, you should fully expect that they'll send some 20-something out to your company a few weeks after you hire them, that person will be reading "XYZ for Dummys" on the plane on the way to your offices and will show up as your IBM 'expert'.

[Oct 29, 2018] A nasty but subtle practice of diminishing employee status and compensation that encourages the employee to prematurely consider retirement or employment elsewhere

Oct 29, 2018 | features.propublica.org

John Mamuscia , Monday, March 26, 2018 3:08 PM

> I was given the choice, retire or get a bad review and get fired, no severance. I retired and have not been employed since because of my age. Got news for these business people, experience trumps inexperience. Recently, I have developed several commercial Web sites using cloud technology. In your face IBM.
Stimpy , Friday, March 23, 2018 11:17 PM
> This could well have been written about Honeywell. Same tactics exactly. I laid myself off and called it retirement after years of shoddy treatment and phonied up employee evaluations. I took it personally until I realized that this is just American Management in action. I don't know how they look themselves in the mirror in the morning.
sukibarnstorm , Thursday, March 22, 2018 6:38 PM
> As an HR professional, I get sick when I hear of these tactics. Although this is not the first company to use this strategy to make a "paradigm shift". Where are the geniuses at Harvard, Yale, or the Wharton school of business (where our genius POTUS attended)? Can't they come up with a better model of how to make these changes in an organization without setting up the corp for a major lawsuit or God forbid ......they treat their employees with dignity and respect.
DDRLSGC , in reply to">
> They are not trained at our business schools to think long-term or look for solutions to problems or turn to the workforce for solutions. They are trained to maximizes the profits and let society subsidies their losses and costs.
John Kauai , in reply to">
> Isn't it interesting that you are the first one (here or anywhere else that I've seen) to talk about the complicity of Harvard and Yale in the rise of the Oligarchs.

Perhaps we should consider reevaluation of their lofty perch in American Education. Now if we could only think of a way to expose the fraud.

[Oct 29, 2018] In the early 1980's President Regan fired the striking air traffic controllers. This sent the message to management around the USA that it was OK to abuse employees in the workplace.

Notable quotes:
"... In the early 1980's President Regan fired the striking air traffic controllers. This sent the message to management around the USA that it was OK to abuse employees in the workplace. By the end of the 1980's unions were totally emasculated and you had workers "going postal" in an abusive workplace. When unions were at their peak of power, they could appeal to the courts and actually stop a factory from moving out of the country by enforcing a labor contact. ..."
"... The American workplace is a nuthouse. Each and every individual workplace environment is like a cult. ..."
"... The American workplace is just a byproduct of the militarization of everyday life. ..."
"... Silicon Valley and Wall Street handed billions of dollars to this arrogant, ignorant Millennial Elizabeth Holmes. She abused any employee that questioned her. This should sound familiar to any employee who has had an overbearing know-it-all, bully boss in the workplace. Hopefully she will go to jail and a message will be sent that any young agist bully will not be given the power of god in the workplace. ..."
Oct 29, 2018 | features.propublica.org

Stauffenberg , Thursday, March 22, 2018 6:21 PM

In the early 1980's President Regan fired the striking air traffic controllers. This sent the message to management around the USA that it was OK to abuse employees in the workplace. By the end of the 1980's unions were totally emasculated and you had workers "going postal" in an abusive workplace. When unions were at their peak of power, they could appeal to the courts and actually stop a factory from moving out of the country by enforcing a labor contact.

Today we have a President in the White House who was elected on a platform of "YOU'RE FIRED." Not surprisingly, Trump was elected by the vast majority of selfish lowlives in this country. The American workplace is a nuthouse. Each and every individual workplace environment is like a cult.

That is not good for someone like me who hates taking orders from people. But I have seen it all. Ten years ago a Manhattan law firm fired every lawyer in a litigation unit except an ex-playboy playmate. Look it up it was in the papers. I was fired from a job where many of my bosses went to federal prison and then I was invited to the Christmas Party.

What are the salaries of these IBM employees and how much are their replacements making? The workplace becomes a surrogate family. Who knows why some people get along and others don't. My theory on agism in the workplace is that younger employees don't want to be around their surrogate mother or father in the workplace after just leaving the real home under the rules of their real parents.

The American workplace is just a byproduct of the militarization of everyday life. In the 1800's, Herman Melville wrote in his beautiful book "White Jacket" that one of the most humiliating aspects of the military is taking orders from a younger military officer. I read that book when I was 20. I didn't feel the sting of that wisdom until I was 40 and had a 30 year old appointed as my supervisor who had 10 years less experience than me.

By the way, the executive that made her my supervisor was one of the sleaziest bosses I have ever had in my career. Look at the tech giant Theranos. Silicon Valley and Wall Street handed billions of dollars to this arrogant, ignorant Millennial Elizabeth Holmes. She abused any employee that questioned her. This should sound familiar to any employee who has had an overbearing know-it-all, bully boss in the workplace. Hopefully she will go to jail and a message will be sent that any young agist bully will not be given the power of god in the workplace.

[Jun 06, 2018] The divisive societal aspects of free market fundamentalism

Jun 06, 2018 | profile.theguardian.com

AsDusty, 3 Jun 2018 17:43

Half the population prefers a politics that is racist and unethical, that demonises the poor and idolises the rich, that eschews community and embraces amoral individuality. These people don't care about the economic inconsistencies of neo-liberalism, they are far more attracted to the divisive societal aspects of free market fundamentalism.

[Jun 06, 2018] Stigmatization of poor as the way to justify and increase inequality

Jun 06, 2018 | discussion.theguardian.com

ellaquint , 3 Jun 2018 19:35

Like Joe Hockey, Rinehart saw the problem of inequality as having more to do with the character of the poor than with the rules of the game:

They don't "see" it this way. They just say they see it this way to perpetuate that inequality. They know that their wealth depends on the labour of the other 95-99%.

To keep us all working and voting for their lackeys, they make promises of wealth if you are a persistent hard worker, never mentioning that the entire game depends on only a tiny minority ever reaching the top. No, the real people holding them back are those who don't work hard. Who don't contribute to the game. They're the ones to blame for why you're not levelling up. The true scapegoats.

It's one giant con and they know it.

[Jun 06, 2018] Victim blaming is a classic neo-con tactic, they seek to deflect from the impact of their heartless policies by demonising the victims, from the unemployed and those stuck in the welfare cycle to refugees trapped in offshore detention, indefinitely .

Jun 06, 2018 | discussion.theguardian.com

reinhardpolley , 3 Jun 2018 17:18

Victim blaming is a classic neo-con tactic, they seek to deflect from the impact of their heartless policies by demonising the victims, from the unemployed and those stuck in the welfare cycle to refugees trapped in offshore detention, indefinitely . We've all seen how appalling their commentary can get, from Abbott and Hockey's "lifters and leaners" to Gina Mineheart's "two dollars a day" & "spend less time drinking or smoking and socialising" they show just how out touch they are. They honestly believe that people can lift themselves out of poverty if only they "spent more time working", ignoring the fact that many are working two jobs just to stay ahead.
Seems that on planet RWNJ there are more than 24 hours in a day..
OrwelHasNothingOnLNP -> w roberts , 3 Jun 2018 17:00
Half the population need welfare to survive.
1% have 90% of all the toys in the sandpit and won't share. They feel that they are entitled to all the toys.

[Apr 02, 2018] How Many Opioid Overdoses Are Suicides

Notable quotes:
"... By Martha Bebinger of WBUR. Originally published at Kaiser Health News ..."
"... The National Suicide Prevention Lifeline is 800-273-8255. ..."
"... This story is part of a partnership that includes WBUR , NPR and Kaiser Health News. ..."
Apr 02, 2018 | www.nakedcapitalism.com

Posted on March 30, 2018 by Yves Smith Yves here. See also this related Kaiser Health News story: Omissions On Death Certificates Lead To Undercounting Of Opioid Overdoses .

It takes a lot of courage for an addict to recover and stay clean. And it is sadly not news that drug addiction and high levels of prescription drug use are signs that something is deeply broken in our society. There are always some people afflicted with deep personal pain but our system is doing a very good job of generating unnecessary pain and desperation.

By Martha Bebinger of WBUR. Originally published at Kaiser Health News

Mady Ohlman was 22 on the evening some years ago when she stood in a friend's bathroom looking down at the sink.

"I had set up a bunch of needles filled with heroin because I wanted to just do them back-to-back-to-back," Ohlman recalled. She doesn't remember how many she injected before collapsing, or how long she lay drugged-out on the floor.

"But I remember being pissed because I could still get up, you know?"

She wanted to be dead, she said, glancing down, a wisp of straight brown hair slipping from behind an ear across her thin face.

At that point, said Ohlman, she'd been addicted to opioids -- controlled by the drugs -- for more than three years.

"And doing all these things you don't want to do that are horrible -- you know, selling my body, stealing from my mom, sleeping in my car," Ohlman said. "How could I not be suicidal?"

For this young woman, whose weight had dropped to about 90 pounds, who was shooting heroin just to avoid feeling violently ill, suicide seemed a painless way out.

"You realize getting clean would be a lot of work," Ohlman said, her voice rising. "And you realize dying would be a lot less painful. You also feel like you'll be doing everyone else a favor if you die."

Ohlman, who has now been sober for more than four years, said many drug users hit the same point, when the disease and the pursuit of illegal drugs crushes their will to live. Ohlman is among at least 40 percent of active drug users who wrestle with depression, anxiety or another mental health issue that increases the risk of suicide.

Measuring Suicide Among Patients Addicted To Opioids

Massachusetts, where Ohlman lives, began formally recognizing in May 2017 that some opioid overdose deaths are suicides. The state confirmed only about 2 percent of all overdose deaths as suicides, but Dr. Monica Bhare l, head of the Massachusetts Department of Public Health, said it's difficult to determine a person's true intent.

"For one thing, medical examiners use different criteria for whether suicide was involved or not," Bharel said, and the "tremendous amount of stigma surrounding both overdose deaths and suicide sometimes makes it extremely challenging to piece everything together and figure out unintentional and intentional."

Research on drug addiction and suicide suggests much higher numbers.

"[Based on the literature that's available], it looks like it's anywhere between 25 and 45 percent of deaths by overdose that may be actual suicides," said Dr. Maria Oquendo , immediate past president of the American Psychiatric Association.

Oquendo pointed to one study of overdoses from prescription opioids that found nearly 54 percent were unintentional. The rest were either suicide attempts or undetermined.

Several large studies show an increased risk of suicide among drug users addicted to opioids, especially women. In a study of about 5 million veterans, women were eight times as likely as others to be at risk for suicide, while men faced a twofold risk.

The opioid epidemic is occurring at the same time suicides have hit a 30-year high , but Oquendo said few doctors look for a connection.

"They are not monitoring it," said Oquendo, who chairs the department of psychiatry at the University of Pennsylvania. "They are probably not assessing it in the kinds of depths they would need to prevent some of the deaths."

That's starting to change. A few hospitals in Boston, for example, aim to ask every patient admitted about substance use, as well as about whether they've considered hurting themselves.

"No one has answered the chicken and egg [problem]," said Dr. Kiame Mahaniah , a family physician who runs the Lynn Community Health Center in Lynn, Mass. Is it that patients "have mental health issues that lead to addiction, or did a life of addiction then trigger mental health problems?"

With so little data to go on, "it's so important to provide treatment that covers all those bases," Mahaniah said.

'Deaths Of Despair'

When doctors do look deeper into the reasons patients addicted to opioids become suicidal, some economists predict they'll find deep reservoirs of depression and pain.

In a seminal paper published in 2015, Princeton economists Angus Deaton and Anne Case tracked falling marriage rates, the loss of stable middle-class jobs and rising rates of self-reported pain. The authors say opioid overdoses, suicides and diseases related to alcoholism are all often "deaths of despair."

"We think of opioids as something that's thrown petrol on the flames and made things infinitely worse," Deaton said, "but the underlying deep malaise would be there even without the opioids."

Many economists agree on remedies for that deep malaise. Harvard economics professor David Cutle r said solutions include a good education, a steady job that pays a decent wage, secure housing, food and health care.

"And also thinking about a sense of purpose in life," Cutler said. "That is, even if one is doing well financially, is there a sense that one is contributing in a meaningful way?"

Tackling Despair In The Addiction Community

"I know firsthand the sense of hopelessness that people can feel in the throes of addiction," said Michael Botticelli , executive director of the Grayken Center for Addiction at Boston Medical Center; he is in recovery for an addiction to alcohol.

Botticelli said recovery programs must help patients come out of isolation and create or recreate bonds with family and friends.

"The vast majority of people I know who are in recovery often talk about this profound sense of re-establishing -- and sometimes establishing for the first time -- a connection to a much larger community," Botticelli said.

Ohlman said she isn't sure why her attempted suicide, with multiple injections of heroin, didn't work.

"I just got really lucky," Ohlman said. "I don't know how."

A big part of her recovery strategy involves building a supportive community, she said.

"Meetings; 12-step; sponsorship and networking; being involved with people doing what I'm doing," said Ohlman, ticking through a list of her priorities.

There's a fatal overdose at least once a week within her Cape Cod community, she said. Some are accidental, others not. Ohlman said she's convinced that telling her story, of losing and then finding hope, will help bring those numbers down.

The National Suicide Prevention Lifeline is 800-273-8255.

This story is part of a partnership that includes WBUR , NPR and Kaiser Health News.

[Mar 27, 2018] Cutting 'Old Heads' at IBM

Mar 27, 2018 | news.slashdot.org

(propublica.org) As the world's dominant technology firm, payrolls at International Business Machines swelled to nearly a quarter-million U.S. white-collar workers in the 1980s. Its profits helped underwrite a broad agenda of racial equality, equal pay for women and an unbeatable offer of great wages and something close to lifetime employment, all in return for unswerving loyalty. But when high tech suddenly started shifting and companies went global, IBM faced the changing landscape with a distinction most of its fiercest competitors didn't have: a large number of experienced and aging U.S. employees .

The company reacted with a strategy that, in the words of one confidential planning document, would "correct seniority mix." It slashed IBM's U.S. workforce by as much as three-quarters from its 1980s peak, replacing a substantial share with younger, less-experienced and lower-paid workers and sending many positions overseas. ProPublica estimates that in the past five years alone, IBM has eliminated more than 20,000 American employees ages 40 and over, about 60 percent of its estimated total U.S. job cuts during those years. In making these cuts, IBM has flouted or outflanked U.S. laws and regulations intended to protect later-career workers from age discrimination, according to a ProPublica review of internal company documents, legal filings and public records, as well as information provided via interviews and questionnaires filled out by more than 1,000 former IBM employees.

[Mar 18, 2018] Demonization of Putin and Russia is in full swing

Notable quotes:
"... The general idea has been to isolate Russia and to make it so hard for anyone to defend Russia. This extends to the media. Whereas lots of articles on Russia and Syria were open to comments in the Guardian and lots of people write and disagree with the constant propaganda it is now rare to have these open to comment. Any questions is always dominated by anti Russia and anti SAG rhetoric. ..."
"... It is a constant psyop that is gathering momentum. I am sure the use of nerve agent is a not so subtle way of linking Russia with what is supposedly happening in Syria. ..."
"... But as we know that the supposed use of chemical weapons is a series of false flags then the same may apply here. ..."
"... So thanks to to the toxic tory blatant propaganda it's now an accepted fact in US Democrats minds that it was the Russians wot done it as they push for tougher sanctions against Russia. ..."
"... just remember it was the usa/uk under bush/blair that had all the info needed to attack iraq in 2003 so much for any lesson learned in any of that, or this at present the political class remain in the gutter serving the military-financial-energy complex of course these special interest groups would have it no other way as war=money what's a few dead people to get in the way of making a killing off the next war, or preparation for war? i heard porton down was given a few $ in the past day or two as well lets keep those chemists busy ..."
Mar 18, 2018 | craigmurray.org.uk

SA , March 16, 2018 at 07:20

I agree with you. But there is more, much more. There was an 8 part drama series on the. BBC called McMafia showing how criminality including arms and narcotics and so on, is closely linked to the Russian state. Then there was a series of very superficial BBC programmes, one on Putin as a new Tsar (sic) and the other on the elections with a spotlight on Navalny. Radio 4 is constantly almost daily talking about Russian aggression and of course there is the vilification of Russian athletes and the drugs.

The general idea has been to isolate Russia and to make it so hard for anyone to defend Russia. This extends to the media. Whereas lots of articles on Russia and Syria were open to comments in the Guardian and lots of people write and disagree with the constant propaganda it is now rare to have these open to comment. Any questions is always dominated by anti Russia and anti SAG rhetoric.

It is a constant psyop that is gathering momentum. I am sure the use of nerve agent is a not so subtle way of linking Russia with what is supposedly happening in Syria.

But as we know that the supposed use of chemical weapons is a series of false flags then the same may apply here.

Mochyn69 , March 16, 2018 at 02:44

"The sanctions today are a grievous disappointment, and fall far short of what is needed to respond to that attack on our democracy, let alone deter Russia's escalating aggression, which now includes a chemical weapons attack on the soil of our closest ally," Adam Schiff, the top Democrat on the House intelligence committee said in a statement.

So thanks to to the toxic tory blatant propaganda it's now an accepted fact in US Democrats minds that it was the Russians wot done it as they push for tougher sanctions against Russia.

There might just be an answer to the cui bono question somewhere in there. Just maybe, but I'm not rushing to judgement!

james , March 16, 2018 at 02:52

just remember it was the usa/uk under bush/blair that had all the info needed to attack iraq in 2003 so much for any lesson learned in any of that, or this at present the political class remain in the gutter serving the military-financial-energy complex of course these special interest groups would have it no other way as war=money what's a few dead people to get in the way of making a killing off the next war, or preparation for war? i heard porton down was given a few $ in the past day or two as well lets keep those chemists busy

[Dec 25, 2017] American Carnage by Brad Griffin

Notable quotes:
"... It tells me that the bottom line is that Christmas has become a harder season for White families. We are worse off because of BOTH social and economic liberalism which has only benefited an elite few. The bottom half of the White population is now in total disarray – drug addiction, demoralization, divorce, suicide, abortion, atomization, stagnant wages, declining household income and investments – and this dysfunction is creeping up the social ladder. The worst thing we can do is step on the accelerator. ..."
Dec 24, 2017 | www.unz.com

As we move into 2018, I am swinging away from the Republicans. I don't support the Paul Ryan "Better Way" agenda. I don't support neoliberal economics. I think we have been going in the wrong direction since the 1970s and don't want to continue going down this road.

  1. Opioid Deaths: As we all know, the opioid epidemic has become a national crisis and the White working class has been hit the hardest by it. It is a "sea of despair" out there.
  2. White Mortality: As the family crumbles, religion recedes in his life, and his job prospects dwindle, the middle aged White working class man is turning to drugs, alcohol and suicide: The White suicide rate has soared since 2000:
  3. Median Household Income: The average household in the United States is poorer in 2017 than it was in 1997:
  4. Real GDP: Since the late 1990s, real GDP and real median household income have parted ways:
  5. Productivity and Real Wages: Since the 1970s, the minimum wage has parted ways with productivity gains in the US economy:
  6. Stock Market: Since 2000, the stock market has soared, but 10% of Americans own 80% of stocks. The top 1% owns 38% of stocks. In 2007, 3/4th of middle class households were invested in the stock market, but now only 50% are investors. Overall, 52% of Americans now own stocks, which is down from 65%. The average American has less than $1,000 in their combined checking and savings accounts.

Do you know what this tells me?

It tells me that the bottom line is that Christmas has become a harder season for White families. We are worse off because of BOTH social and economic liberalism which has only benefited an elite few. The bottom half of the White population is now in total disarray – drug addiction, demoralization, divorce, suicide, abortion, atomization, stagnant wages, declining household income and investments – and this dysfunction is creeping up the social ladder. The worst thing we can do is step on the accelerator.

Paul Ryan and his fellow conservatives look at this and conclude we need MORE freedom. We need lower taxes, more free trade, more deregulation, weaker unions, more immigration and less social safety net spending. He wants to follow up tax reform with entitlement reform in 2018. I can't but see how this is going to make an already bad situation for the White working class even worse.

I'm not rightwing in the sense that these people are. I think their policies are harmful to the nation. I don't think they feel any sense of duty and obligation to the working class like we do. They believe in liberal abstractions and make an Ayn Rand fetish out of freedom whereas we feel a sense of solidarity with them grounded in race, ethnicity and culture which tempers class division. We recoil at the evisceration of the social fabric whereas conservatives celebrate this blind march toward plutocracy.

Do the wealthy need to own a greater share of the stock market? Do they need to own a greater share of our national wealth? Do we need to loosen up morals and the labor market? Do we need more White children growing up in financially stressed, broken homes on Christmas? Is the greatest problem facing the nation spending on anti-poverty programs? Paul Ryan and the True Cons think so.

Yeah, I don't think so. I also think it is a good thing right now that we aren't associated with the mainstream Right. In the long run, I bet this will pay off for us. I predict this platform they have been standing on for decades now, which they call the conservative base, is going to implode on them. Donald Trump was only the first sign that Atlas is about to shrug.

(Republished from Occidental Dissent by permission of author or representative)

[Dec 15, 2017] The Crisis Ahead The U.S. Is No Country for Older Men and Women

Notable quotes:
"... The U.S. has a retirement crisis on its hands, and with the far right controlling the executive branch and both houses of Congress, as well as dozens of state governments, things promise to grow immeasurably worse. ..."
"... It wasn't supposed to be this way. Past progressive presidents, notably Franklin D. Roosevelt and Lyndon B. Johnson, took important steps to make life more comfortable for aging Americans. FDR signed the Social Security Act of 1935 into law as part of his New Deal, and when LBJ passed Medicare in 1965, he established a universal health care program for those 65 and older. But the country has embraced a neoliberal economic model since the election of Ronald Reagan, and all too often, older Americans have been quick to vote for far-right Republicans antagonistic to the social safety net. ..."
"... Since then, Ryan has doubled down on his delusion that the banking sector can manage Social Security and Medicare more effectively than the federal government. Republican attacks on Medicare have become a growing concern: according to EBRI, only 38 percent of workers are confident the program will continue to provide the level of benefits it currently does. ..."
"... As 2017 winds down, Americans with health problems are still in the GOP's crosshairs -- this time because of so-called tax reform. The Tax Cuts and Jobs Act (both the House and Senate versions) includes provisions that would undermine Obamacare and cause higher health insurance premiums for older Americans. According to AARP, "Older adults ages 50-64 would be at particularly high risk under the proposal, facing average premium increases of up to $1,500 in 2019 as a result of the bill." ..."
"... Countless Americans who are unable to afford those steep premiums would lose their insurance. The CBO estimates that the Tax Cuts and Jobs Act would cause the number of uninsured under 65 to increase 4 million by 2019 and 13 million by 2027. The bill would also imperil Americans 65 and over by cutting $25 billion from Medicare . ..."
"... Analyzing W2 tax records in 2012, U.S. Census Bureau researchers Michael Gideon and Joshua Mitchell found that only 14 percent of private-sector employers in the U.S. were offering a 401(k) or similar retirement packages to their workers. That figure was thought to be closer to 40 percent, but Gideon and Mitchell discovered the actual number was considerably lower when smaller businesses were carefully analyzed, and that larger companies were more likely to offer 401(k) plans than smaller ones. ..."
"... Today, millions of Americans work in the gig economy who don't have full-time jobs or receive W2s, but instead receive 1099s for freelance work. ..."
"... The combination of stagnant wages and an increasingly high cost of living have been especially hellish for Americans who are trying to save for retirement. The United States' national minimum wage, a mere $7.25 per hour, doesn't begin to cover the cost of housing at a time when rents have soared nationwide. Never mind the astronomical prices in New York City, San Francisco or Washington, D.C. Median rents for one-bedroom apartments are as high as $1,010 per month in Atlanta, $960 per month in Baltimore, $860 per month in Jacksonville and $750 per month in Omaha, according to ApartmentList.com. ..."
"... yeah, Canada has a neoliberal infestation that is somewhere between the US and the UK. France has got one too, but it is less advanced. I'll enjoy my great healthcare, public transportation, and generous paid time off while I can. ..."
"... Europeans may scratch their heads, but they should recall their own histories and the long struggle to the universal benefits now enjoyed. Americans are far too complacent. This mildness is viewed by predators as weakness and the attacks will continue. ..."
"... Not sure if many of the readers here watch non-cable national broadcast news, but Pete Peterson and his foundation are as everpresent an advertiser as the pharma industry. Peterson is the strongest, best organized advocate for gutting social services, social security, and sending every last penny out of the tax-mule consumer's pocket toward wall street. The guy needs an equivalent counterpoint enemy. ..."
"... The social advantages that we still enjoy were fought in the streets, and on the "bricks" flowing with the participants blood. 8 hr. day; women's right to vote; ability and right for groups of laborers to organize; worker safety laws ..and so many others. There is no historical memory on how those rights were achieved. We are slowly slipping into an oligarchy greased by the idea that the physical possession of material things is all that matters. Sheeple, yes. ..."
"... Mmm, I think American voters get what they want in the end. They want their politicians because they believe the lies. 19% of Americans believe they are in the top 1% of wealth. A huge percentage of poor people believe they or their kids will (not can, but will) become wealthy. Most Americans can't find France on a map. ..."
"... I may have been gone for about thirty years, but that has only sharpened my insights into America. It's very hard to see just how flawed America is from the inside but when you step outside and have some perspective, it's frightening. ..."
"... Our government, beginning with Reagan, turned its back on promoting the general welfare. The wealthy soon learned that their best return on investment was the "purchase" of politicians willing to pass the legislation they put in their hands. Much of their investment included creating the right wing media apparatus. ..."
"... The Class War is real. It has been going on for 40 years, with the Conservative army facing virtually no resistance. Conservatives welcome Russia's help. Conservatives welcome barriers to people voting. Conservatives welcome a populace that believes lies that benefit them. Conservatives welcome the social and financial decline of the entire middle class and poor as long as it profits the rich financially, and by extension enhances their power politically. ..."
"... "Single acts of tyranny may be ascribed to the accidental opinion of the day, but a series of oppressions, begun at a distinguished period and pursued unalterably through every change of ministers, too plainly prove a deliberate, systematic plan of reducing [a people] to slavery" Thomas Jefferson. Rights of British America, 1774 ME 1:193, Papers 1:125 ..."
"... yes, my problem with the post as well, completely ignores democrat complicity the part where someone with a 26k salary will pay 16k in insurance? No they won't, the system would collapse in that case which will be fine with me. ..."
"... As your quote appears to imply, it's not a problem that can be solved by voting which, let's not forget, is nothing more than expressing an opinion. I am not sticking around just to find out if economically-crushed, opiod-, entertainment-, social media-addled Americans are actually capable of rolling out tumbrils for trips to the guillotines in the city squares. I strongly suspect not. ..."
"... This is the country where, after the banks crushed the economy in 2008, caused tens of thousands to lose their jobs, and then got huge bailouts, the people couldn't even be bothered to take their money out of the big banks and put it elsewhere. Because, you know, convenience! Expressing an opinion, or mobilizing others to express an opinion, or educating or proselytizing others about what opinion to have, is about the limit of what they are willing, or know how to do. ..."
Dec 14, 2017 | www.nakedcapitalism.com

Yves here. I imagine many readers are acutely aware of the problems outlined in this article, if not beset by them already. By any rational standard, I should move now to a much cheaper country that will have me. I know individuals who live most of the year in third-world and near-third world countries, but they have very cheap ways of still having a toehold in the US and not (yet or maybe ever) getting a long-term residence visa. Ecuador is very accommodating regarding retirement visas, and a Social Security level income goes far there, but yours truly isn't retiring any time soon. And another barrier to an international move (which recall I did once, so I have some appreciation for what it takes), is that one ought to check out possible destinations but if you are already time and money and energy stressed, how do you muster the resources to do that at all, let alone properly?

Aside from the potential to greatly reduce fixed costs, a second impetus for me is Medicare. I know for most people, getting on Medicare is a big plus. I have a very rare good, very old insurance policy. When you include the cost of drug plans, Medicare is no cheaper than what I have now, and considerably narrows my network. Moreover, I expect it to be thoroughly crapified by ten years from now (when I am 70), which argues for getting out of Dodge sooner rather than later.

And that's before you get to another wee problem Lambert points out that I would probably not be happy in a third world or high end second world country. But the only bargain "world city" I know of is Montreal. I'm not sure it would represent enough of an all-in cost saving to justify the hassle of an international move and the attendant tax compliance burdens .and that charitably assumes I could even find a way to get permanent residence. Ugh.

By Alex Henderson, who has written for the L.A. Weekly, Billboard, Spin, Creem, the Pasadena Weekly and many other publications. Follow him on Twitter @alexvhenderson. Originally published at Alternet

Millions can no longer afford to retire, and may never be able when the GOP passes its tax bill.

The news is not good for millions of aging Baby Boomers and Gen Xers in the United States who are moving closer to retirement age. According to the Employee Benefit Research Institute's annual report on retirement preparedness for 2017, only 18 percent of U.S.-based workers feel "very confident" about their ability to retire comfortably ; Craig Copeland, senior research associate for EBRI and the report's co-author, cited "debt, lack of a retirement plan at work, and low savings" as "key factors" in workers' retirement-related anxiety. The Insured Retirement Institute finds a mere 23 percent of Baby Boomers and 24 percent of Gen Xers are confident that their savings will last in retirement. To make matters worse, more than 40 percent of Boomers and over 30 percent of Gen Xers report having no retirement savings whatsoever .

The U.S. has a retirement crisis on its hands, and with the far right controlling the executive branch and both houses of Congress, as well as dozens of state governments, things promise to grow immeasurably worse.

It wasn't supposed to be this way. Past progressive presidents, notably Franklin D. Roosevelt and Lyndon B. Johnson, took important steps to make life more comfortable for aging Americans. FDR signed the Social Security Act of 1935 into law as part of his New Deal, and when LBJ passed Medicare in 1965, he established a universal health care program for those 65 and older. But the country has embraced a neoliberal economic model since the election of Ronald Reagan, and all too often, older Americans have been quick to vote for far-right Republicans antagonistic to the social safety net.

In the 2016 presidential election, 55 percent of voters 50 and older cast their ballots for Donald Trump against just 44 percent for Hillary Clinton. (This was especially true of older white voters; 90 percent of black voters 45 and older, as well as 67 percent of Latino voters in the same age range voted Democratic.)

Sen. Bernie Sanders' (I-VT) economic proposals may have been wildly popular with millennials, but no demographic has a greater incentive to vote progressive than Americans facing retirement. According to research conducted by the American Association of Retired Persons, the three greatest concerns of Americans 50 and older are Social Security, health care costs and caregiving for loved ones -- all areas that have been targeted by Republicans.

House of Representatives Speaker Paul Ryan, a devotee of social Darwinist Ayn Rand , has made no secret of his desire to privatize Social Security and replace traditional Medicare with a voucher program. Had George W. Bush had his way and turned Social Security over to Wall Street, the economic crash of September 2008 might have left millions of senior citizens homeless.

Since then, Ryan has doubled down on his delusion that the banking sector can manage Social Security and Medicare more effectively than the federal government. Republican attacks on Medicare have become a growing concern: according to EBRI, only 38 percent of workers are confident the program will continue to provide the level of benefits it currently does.

The GOP's obsession with abolishing the Affordable Care Act is the most glaring example of its disdain for aging Americans. Yet Obamacare has been a blessing for Boomers and Gen Xers who have preexisting conditions. The ACA's guaranteed issue plans make no distinction between a 52-year-old American with diabetes, heart disease or asthma and a 52-year-old who has never had any of those illnesses. And AARP notes that under the ACA, the uninsured rate for Americans 50 and older decreased from 15 percent in 2013 to 9 percent in 2016.

According to the Congressional Budget Office, the replacement bills Donald Trump hoped to ram through Congress this year would have resulted in staggering premium hikes for Americans over 50. The CBO's analysis of the American Health Care Act, one of the earlier versions of Trumpcare, showed that a 64-year-old American making $26,500 per year could have gone from paying $1,700 annually in premiums to just over $16,000. The CBO also estimated that the GOP's American Health Care Act would have deprived 23 million Americans of health insurance by 2026.

As 2017 winds down, Americans with health problems are still in the GOP's crosshairs -- this time because of so-called tax reform. The Tax Cuts and Jobs Act (both the House and Senate versions) includes provisions that would undermine Obamacare and cause higher health insurance premiums for older Americans. According to AARP, "Older adults ages 50-64 would be at particularly high risk under the proposal, facing average premium increases of up to $1,500 in 2019 as a result of the bill."

The CBO estimates that the bill will cause premiums to spike an average of 10 percent overall, with average premiums increasing $890 per year for a 50-year-old, $1,100 per year for a 55-year-old, $1,350 per year for a 60-year-old and $1,490 per year for a 64-year-old. Premium increases, according to the CBO, would vary from state to state; in Maine, average premiums for a 64-year-old would rise as much as $1,750 per year.

Countless Americans who are unable to afford those steep premiums would lose their insurance. The CBO estimates that the Tax Cuts and Jobs Act would cause the number of uninsured under 65 to increase 4 million by 2019 and 13 million by 2027. The bill would also imperil Americans 65 and over by cutting $25 billion from Medicare .

As morally reprehensible as the GOP's tax legislation may be, it is merely an acceleration of the redistribution of wealth from the bottom to the top that America has undergone since the mid-1970s. (President Richard Nixon may have been a paranoid right-winger with authoritarian tendencies, but he expanded Medicare and supported universal health care.) Between the decline of labor unions, age discrimination, stagnant wages, an ever-rising cost of living, low interest rates, and a shortage of retirement accounts, millions of Gen Xers and Baby Boomers may never be able to retire.

Traditional defined-benefit pensions were once a mainstay of American labor, especially among unionized workers. But according to Pew Charitable Trusts, only 13 percent of Baby Boomers still have them (among millennials, the number falls to 6 percent). In recent decades, 401(k) plans have become much more prominent, yet a majority of American workers don't have them either.

Analyzing W2 tax records in 2012, U.S. Census Bureau researchers Michael Gideon and Joshua Mitchell found that only 14 percent of private-sector employers in the U.S. were offering a 401(k) or similar retirement packages to their workers. That figure was thought to be closer to 40 percent, but Gideon and Mitchell discovered the actual number was considerably lower when smaller businesses were carefully analyzed, and that larger companies were more likely to offer 401(k) plans than smaller ones.

Today, millions of Americans work in the gig economy who don't have full-time jobs or receive W2s, but instead receive 1099s for freelance work. Tax-deferred SEP-IRAs were once a great, low-risk way for freelancers to save for retirement without relying exclusively on Social Security, but times have changed since the 1980s and '90s when interest rates were considerably higher for certificates of deposit and savings accounts. According to Bankrate.com, average rates for one-year CDs dropped from 11.27 percent in 1984 to 8.1 percent in 1990 to 5.22 percent in 1995 to under 1 percent in 2010, where it currently remains.

The combination of stagnant wages and an increasingly high cost of living have been especially hellish for Americans who are trying to save for retirement. The United States' national minimum wage, a mere $7.25 per hour, doesn't begin to cover the cost of housing at a time when rents have soared nationwide. Never mind the astronomical prices in New York City, San Francisco or Washington, D.C. Median rents for one-bedroom apartments are as high as $1,010 per month in Atlanta, $960 per month in Baltimore, $860 per month in Jacksonville and $750 per month in Omaha, according to ApartmentList.com.

That so many older Americans are renting at all is ominous in its own right. FDR made home ownership a primary goal of the New Deal, considering it a key component of a thriving middle class. But last year, the Urban Institute found that 19 million Americans who previously owned a home are now renting, 31 percent between the ages of 36 and 45. Laurie Goodman, one of the study's authors, contends the Great Recession has "permanently raised the number of renters," and that the explosion of foreclosures has hit Gen Xers especially hard.

The severity of the U.S. retirement crisis is further addressed in journalist Jessica Bruder's new book "Nomadland: Surviving America in the 21st Century," which follows Americans in their 50s, 60s and even 70s living in RVs or vans , barely eking out a living doing physically demanding, seasonal temp work from harvesting sugar beets to cleaning toilets at campgrounds. Several had high-paying jobs before their lives were blown apart by the layoffs, foreclosures and corporate downsizing of the Great Recession. Bruder speaks with former college professors and software professionals who now find themselves destitute, teetering on the brink of homelessness and forced to do backbreaking work for next to nothing. Unlike the big banks, they never received a bailout.

These neo-nomads recall the transients of the 1930s, themselves victims of Wall Street's recklessness. But whereas FDR won in a landslide in 1932 and aggressively pursued a program of progressive economic reforms, Republicans in Congress have set out to shred what little remains of the social safety net, giving huge tax breaks to millionaires and billionaires . The older voters who swept Trump into office may have signed their own death warrants.

If aging Americans are going to be saved from this dystopian future, the U.S. will have to forge a new Great Society. Programs like Social Security, Medicare and Medicaid will need to be strengthened, universal health care must become a reality and age discrimination in the workplace will have to be punished as a civil rights violation like racial and gender-based discrimination. If not, millions of Gen Xers and Boomers will spend their golden years scraping for pennies.

Expat , , December 14, 2017 at 6:29 am

I certainly will never go back to the States for these and other reasons. I have a friend, also an American citizen, who travels frequently back to California to visit his son. He is truly worried about getting sick or having an accident when he is there since he knows it might bankrupt him. As he jokes, he would be happy to have another heart attack here in France since it's free!

For those of you who have traveled the world and talked to people, you probably know that most foreigners are perplexed by America's attitude to health care and social services. The richest nation in the world thinks that health and social security (in the larger sense of not being forced into the street) are not rights at all. Europeans scratch their heads at this.

The only solution is education and information, but they are appalling in America. America remains the most ignorant and worst educated of the developed nations and is probably beaten by many developing nations. It is this ignorance and stupidity that gets Americans to vote for the likes of Trump or any of the other rapacious millionaires they send to office every year.

A first step would be for Americans to insist that Congress eliminate its incredibly generous and life-long healthcare plans for elected officials. They should have to do what the rest of Americans do. Of course, since about 95% of Congress are millionaires, it might not be effective. But it's a start.

vidimi , , December 14, 2017 at 6:40 am

France has its share of problems, but boy do they pale next to the problems in America or even Canada. Life here is overall quite pleasant and I have no desire to go back to N.A.

Marco , , December 14, 2017 at 6:46 am

Canada has problems?

WobblyTelomeres , , December 14, 2017 at 7:47 am

Was in Yellowknife a couple of years ago. The First Nations people have a rough life. From what I've read, such extends across the country.

vidimi , , December 14, 2017 at 8:03 am

yeah, Canada has a neoliberal infestation that is somewhere between the US and the UK. France has got one too, but it is less advanced. I'll enjoy my great healthcare, public transportation, and generous paid time off while I can.

JEHR , , December 14, 2017 at 1:46 pm

The newest neoliberal effort in Canada was put forward by our Minister of Finance (a millionaire) who is touting a bill that will get rid of defined benefit pension plans given to public employees for so-called target benefit pension plans. The risk for target plans is taken by the recipient. Morneau's former firm promotes target benefit pension plans and the change could benefit Morneau himself as he did not put his assets from his firm in a blind trust. At the very least, he has a conflict of interest and should probably resign.

There is always an insidious group of wealthy people here who would like to re-make the world in their own image. I fear for the future.

JEHR , , December 14, 2017 at 1:55 pm

Yes, I agree. There is an effort to "simplify" the financial system of the EU to take into account the business cycle and the financial cycle .

Dita , , December 14, 2017 at 8:25 am

Europeans may scratch their heads, but they should recall their own histories and the long struggle to the universal benefits now enjoyed. Americans are far too complacent. This mildness is viewed by predators as weakness and the attacks will continue.

jefemt , , December 14, 2017 at 10:02 am

We really should be able to turn this around, and have an obligation to ourselves and our 'nation state' , IF there were a group of folks running on a fairness, one-for-all, all-for-one platform. That sure isn't the present two-sides-of-the-same-coin Democraps and Republicrunts.

Not sure if many of the readers here watch non-cable national broadcast news, but Pete Peterson and his foundation are as everpresent an advertiser as the pharma industry. Peterson is the strongest, best organized advocate for gutting social services, social security, and sending every last penny out of the tax-mule consumer's pocket toward wall street. The guy needs an equivalent counterpoint enemy.

Check it out, and be vigilant in dispelling his message and mission. Thanks for running this article.

Running away: the almost-haves run to another nation state, the uber-wealthy want to leave the earth, or live in their private Idaho in the Rockies or on the Ocean. What's left for the least among us? Whatever we create?
https://www.pgpf.org/

Scramjett , , December 14, 2017 at 1:43 pm

I think pathologically optimistic is a better term than complacent. Every time someone dumps on them, their response is usually along the lines of "Don't worry, it'll get better," "Everything works itself out in the end," "maybe we'll win the lottery," my personal favorite "things will get better, just give it time" (honestly it's been 40 years of this neoliberal bullcrap, how much more time are we supposed to give it?), "this is just a phase" or "we can always bring it back later and better than ever." The last one is most troubling because after 20 years of witnessing things in the public sphere disappearing, I've yet to see a single thing return in any form at all.

I'm not sure where this annoying optimism came from but I sure wish it would go away.

sierra7 , , December 14, 2017 at 8:45 pm

The "optimism" comes from having a lack of historical memory. So many social protections that we have/had is seen as somehow coming out of the ether benevolently given without any social struggles. The lack of historical education on this subject in particular is appalling. Now, most would probably look for an "APP" on their "dumbphones" to solve the problem.

The social advantages that we still enjoy were fought in the streets, and on the "bricks" flowing with the participants blood. 8 hr. day; women's right to vote; ability and right for groups of laborers to organize; worker safety laws ..and so many others. There is no historical memory on how those rights were achieved. We are slowly slipping into an oligarchy greased by the idea that the physical possession of material things is all that matters. Sheeple, yes.

Jeremy Grimm , , December 14, 2017 at 4:44 pm

WOW! You must have been outside the U.S. for a long time. Your comment seems to suggest we still have some kind of democracy here. We don't get to pick which rapacious millionaires we get to vote for and it doesn't matter any way since whichever one we pick from the sad offerings ends up with policies dictated from elsewhere.

Expat , , December 14, 2017 at 6:10 pm

Mmm, I think American voters get what they want in the end. They want their politicians because they believe the lies. 19% of Americans believe they are in the top 1% of wealth. A huge percentage of poor people believe they or their kids will (not can, but will) become wealthy. Most Americans can't find France on a map.

So, yes, you DO get to pick your rapacious millionaire. You send the same scumbags back to Washington every year because it's not him, it the other guys who are the problem. One third of Americans support Trump! Really, really support him. They think he is Jesus, MacArthur and Adam Smith all rolled up into one.

I may have been gone for about thirty years, but that has only sharpened my insights into America. It's very hard to see just how flawed America is from the inside but when you step outside and have some perspective, it's frightening.

Disturbed Voter , , December 14, 2017 at 6:29 am

The Democrat party isn't a reform party. Thinking it is so, is because of the "No Other Choice" meme. Not saying that the Republican party works in my favor. They don't. Political reform goes deeper than reforming either main party. It means going to a European plurality system (with its own downside). That way growing Third parties will be viable, if they have popular, as opposed to millionaire, support. I don't see this happening, because of Citizens United, but if all you have is hope, then you have to go with that.

Carolinian , , December 14, 2017 at 8:05 am

Had George W. Bush had his way and turned Social Security over to Wall Street, the economic crash of September 2008 might have left millions of senior citizens homeless.

Substitute Bill Clinton for George Bush in that sentence and it works just as well. Neoliberalism is a bipartisan project.

And many of the potential and actual horrors described above arise from the price distortions of the US medical system with Democratic acquiescence in said system making things worse. The above article reads like a DNC press release.

And finally while Washington politicians of both parties have been threatening Social Security for years that doesn't mean its third rail status has been repealed. The populist tremors of the last election -- which have caused our elites to lose their collective mind -- could be a mere prelude to what will happen in the event of a full scale assault on the safety net.

KYrocky , , December 14, 2017 at 12:05 pm

Substitute Obama's quest for a Grand Bargain as well.

Our government, beginning with Reagan, turned its back on promoting the general welfare. The wealthy soon learned that their best return on investment was the "purchase" of politicians willing to pass the legislation they put in their hands. Much of their investment included creating the right wing media apparatus.

The Class War is real. It has been going on for 40 years, with the Conservative army facing virtually no resistance. Conservatives welcome Russia's help. Conservatives welcome barriers to people voting. Conservatives welcome a populace that believes lies that benefit them. Conservatives welcome the social and financial decline of the entire middle class and poor as long as it profits the rich financially, and by extension enhances their power politically.

If retirees flee our country that will certainly please the Conservatives as that will be fewer critics (enemies). Also less need or demand for social programs.

rps , , December 14, 2017 at 5:01 pm

"Single acts of tyranny may be ascribed to the accidental opinion of the day, but a series of oppressions, begun at a distinguished period and pursued unalterably through every change of ministers, too plainly prove a deliberate, systematic plan of reducing [a people] to slavery" Thomas Jefferson. Rights of British America, 1774 ME 1:193, Papers 1:125

tegnost , , December 14, 2017 at 8:59 am

yes, my problem with the post as well, completely ignores democrat complicity the part where someone with a 26k salary will pay 16k in insurance? No they won't, the system would collapse in that case which will be fine with me.

Marco , , December 14, 2017 at 6:55 am

"President Richard Nixon may have been a paranoid right-winger with authoritarian tendencies, but he expanded Medicare and supported universal health care."

"Gimme that old time Republican!"

One of the reasons I love NC is that most political economic analysis is often more harsh on the Democrats than the Repubs so I am a bit dismayed how this article is way too easy on Team D. How many little (and not so little) knives in the back from Clinton and Obama? Is a knife in the chest that much worse?

OpenThePodBayDoorsHAL , December 14, 2017 at 3:57 pm

This entire thread is simply heartbreaking, Americans have had their money, their freedom, their privacy, their health, and sometimes their very lives taken away from them by the State. But the heartbreaking part is that they feel they are powerless to do anything at all about it so are just trying to leave.

But "People should not fear the government; the government should fear the people"

tagio , December 14, 2017 at 4:39 pm

It's more than a feeling, HAL. https://www.newyorker.com/news/john-cassidy/is-america-an-oligarchy Link to the academic paper embedded in article.

As your quote appears to imply, it's not a problem that can be solved by voting which, let's not forget, is nothing more than expressing an opinion. I am not sticking around just to find out if economically-crushed, opiod-, entertainment-, social media-addled Americans are actually capable of rolling out tumbrils for trips to the guillotines in the city squares. I strongly suspect not.

This is the country where, after the banks crushed the economy in 2008, caused tens of thousands to lose their jobs, and then got huge bailouts, the people couldn't even be bothered to take their money out of the big banks and put it elsewhere. Because, you know, convenience! Expressing an opinion, or mobilizing others to express an opinion, or educating or proselytizing others about what opinion to have, is about the limit of what they are willing, or know how to do.

[Dec 13, 2017] A stunning 33% of job seekers ages 55 and older are long-term unemployed, according to the AARP Public Policy Institute

Notable quotes:
"... And, recent studies have shown, the longer you're out of work - especially if you're older and out of work - the harder it becomes to get a job offer. ..."
Dec 13, 2017 | www.nakedcapitalism.com

Livius Drusus , December 13, 2017 at 2:44 pm

I thought this was an interesting article. Apologies if this has been posted on NC already.

A stunning 33% of job seekers ages 55 and older are long-term unemployed, according to the AARP Public Policy Institute. The average length of unemployment for the roughly 1.2 million people 55+ who are out of work: seven to nine months. "It's emotionally devastating for them," said Carl Van Horn, director of Rutgers University's John J. Heldrich Center for Workforce Development, at a Town Hall his center and the nonprofit WorkingNation held earlier this year in New Brunswick, N.J.

... ... ...

The fight faced by the long-term unemployed

And, recent studies have shown, the longer you're out of work - especially if you're older and out of work - the harder it becomes to get a job offer.

The job-finding rate declines by roughly 50% within eight months of unemployment, according to a 2016 paper by economists Gregor Jarosch of Stanford University and Laura Pilossoph of the Federal Reserve Bank of New York. "Unemployment duration has a strongly negative effect on the likelihood of subsequent employment," wrote researchers from the University of Maryland and the U.S. Census Bureau in another 2016 paper.

"Once upon a time, you could take that first job and it would lead to the next job and the job after that," said Town Hall panelist John Colborn, chief operating officer at the nonprofit JEVS Human Services, of Philadelphia. "The notion of a career ladder offered some hope of getting back into the labor market. The rungs of the ladder are getting harder and harder to find and some of them are broken."

In inner cities, said Kimberly McClain, CEO of The Newark Alliance, "there's an extra layer beyond being older and out of work. There are issues of race and poverty and being defined by your ZIP Code. There's an incredible sense of urgency."

... ... ...

Filling a work gap

If you are over 50, unemployed and have a work gap right now, the Town Hall speakers said, fill it by volunteering, getting an internship, doing project work, job-shadowing someone in a field you want to be in or taking a class to re-skill. These kind of things "make a candidate a lot more attractive," said Colborn. Be sure to note them in your cover letter and rιsumι.

Town Hall panelist Amanda Mullan, senior vice president and chief human resources officer of the New Jersey Resources Corp. (a utility company based in Wall, N.J.), said that when her company is interviewing someone who has been out of work lately, "we will ask: 'What have you done during that time frame?' If we get 'Nuthin,' that shows something about the individual, from a motivational perspective."

... ... ...

The relief of working again

Finally finding work when you're over 50 and unemployed for a stretch can be a relief for far more than financial reasons.

"Once I landed my job, the thing I most looked forward to was the weekend," said Konopka. "Not to relax, but because I didn't have to think about finding a job anymore. That's 24/7 in your head. You're always thinking on a Saturday: 'If I'm not doing something to find a job, will there be a posting out there?'"

Full article: https://www.marketwatch.com/story/jobs-are-everywhere-just-not-for-people-over-55-2017-12-08

[Dec 13, 2017] Stress of long-term unemployment takes a toll on thousands of Jerseyans who are out of work by Leslie Kwoh

Notable quotes:
"... Leslie Kwoh may be reached at lkwoh@starledger.com or (973) 392-4147. ..."
Jun 13, 2010 | www.nj.com

At 5:30 every morning, Tony Gwiazdowski rolls out of bed, brews a pot of coffee and carefully arranges his laptop, cell phone and notepad like silverware across the kitchen table.

And then he waits.

Gwiazdowski, 57, has been waiting for 16 months. Since losing his job as a transportation sales manager in February 2009, he wakes each morning to the sobering reminder that, yes, he is still unemployed. So he pushes aside the fatigue, throws on some clothes and sends out another flurry of resumes and cheery cover letters.

But most days go by without a single phone call. And around sundown, when he hears his neighbors returning home from work, Gwiazdowski -- the former mayor of Hillsborough -- can't help but allow himself one tiny sigh of resignation.

"You sit there and you wonder, 'What am I doing wrong?'" said Gwiazdowski, who finds companionship in his 2-year-old golden retriever, Charlie, until his wife returns from work.

"The worst moment is at the end of the day when it's 4:30 and you did everything you could, and the phone hasn't rung, the e-mails haven't come through."

Gwiazdowski is one of a growing number of chronically unemployed workers in New Jersey and across the country who are struggling to get through what is becoming one long, jobless nightmare -- even as the rest of the economy has begun to show signs of recovery.

Nationwide, 46 percent of the unemployed -- 6.7 million Americans -- have been without work for at least half a year, by far the highest percentage recorded since the U.S. Labor Department began tracking the data in 1948.

In New Jersey, nearly 40 percent of the 416,000 unemployed workers last year fit that profile, up from about 20 percent in previous years, according to the department, which provides only annual breakdowns for individual states. Most of them were unemployed for more than a year.

But the repercussions of chronic unemployment go beyond the loss of a paycheck or the realization that one might never find the same kind of job again. For many, the sinking feeling of joblessness -- with no end in sight -- can take a psychological toll, experts say.

Across the state, mental health crisis units saw a 20 percent increase in demand last year as more residents reported suffering from unemployment-related stress, according to the New Jersey Association of Mental Health Agencies.

"The longer the unemployment continues, the more impact it will have on their personal lives and mental health," said Shauna Moses, the association's associate executive director. "There's stress in the marriage, with the kids, other family members, with friends."

And while a few continue to cling to optimism, even the toughest admit there are moments of despair: Fear of never finding work, envy of employed friends and embarassment at having to tell acquaintances that, nope, still no luck.

"When they say, 'Hi Mayor,' I don't tell a lot of people I'm out of work -- I say I'm semi-retired," said Gwiazdowski, who maxed out on unemployment benefits several months ago.

"They might think, 'Gee, what's wrong with him? Why can't he get a job?' It's a long story and maybe people really don't care and now they want to get away from you."


SECOND TIME AROUND

Lynn Kafalas has been there before, too. After losing her computer training job in 2000, the East Hanover resident took four agonizing years to find new work -- by then, she had refashioned herself into a web designer.

That not-too-distant experience is why Kafalas, 52, who was laid off again eight months ago, grows uneasier with each passing day. Already, some of her old demons have returned, like loneliness, self-doubt and, worst of all, insomnia. At night, her mind races to dissect the latest interview: What went wrong? What else should she be doing? And why won't even Barnes & Noble hire her?

"It's like putting a stopper on my life -- I can't move on," said Kafalas, who has given up karate lessons, vacations and regular outings with friends. "Everything is about the interviews."

And while most of her friends have been supportive, a few have hinted to her that she is doing something wrong, or not doing enough. The remarks always hit Kafalas with a pang.

In a recent study, researchers at Rutgers University found that the chronically unemployed are prone to high levels of stress, anxiety, depression, loneliness and even substance abuse, which take a toll on their self-esteem and personal relationships.

"They're the forgotten group," said Carl Van Horn, director of the John J. Heldrich Center for Workforce Development at Rutgers, and a co-author of the report. "And the longer you are unemployed, the less likely you are to get a job."

Of the 900 unemployed workers first interviewed last August for the study, only one in 10 landed full-time work by March of this year, and only half of those lucky few expressed satisfaction with their new jobs. Another one in 10 simply gave up searching.

Among those who were still unemployed, many struggled to make ends meet by borrowing from friends or family, turning to government food stamps and forgoing health care, according to the study.

More than half said they avoided all social contact, while slightly less than half said they had lost touch with close friends. Six in 10 said they had problems sleeping.

Kafalas says she deals with her chronic insomnia by hitting the gym for two hours almost every evening, lifting weights and pounding the treadmill until she feels tired enough to fall asleep.

"Sometimes I forget what day it is. Is it Tuesday? And then I'll think of what TV show ran the night before," she said. "Waiting is the toughest part."


AGE A FACTOR

Generally, the likelihood of long-term unemployment increases with age, experts say. A report by the National Employment Law Project this month found that nearly half of those who were unemployed for six months or longer were at least 45 years old. Those between 16 and 24 made up just 14 percent.

Tell that to Adam Blank, 24, who has been living with his girlfriend and her parents at their Martinsville home since losing his sales job at Best Buy a year and half ago.

Blank, who graduated from Rutgers with a major in communications, says he feels like a burden sometimes, especially since his girlfriend, Tracy Rosen, 24, works full-time at a local nonprofit. He shows her family gratitude with small chores, like taking out the garbage, washing dishes, sweeping floors and doing laundry.

Still, he often feels inadequate.

"All I'm doing on an almost daily basis is sitting around the house trying to keep myself from going stir-crazy," said Blank, who dreams of starting a social media company.

When he is feeling particularly low, Blank said he turns to a tactic employed by prisoners of war in Vietnam: "They used to build dream houses in their head to help keep their sanity. It's really just imagining a place I can call my own."


LESSONS LEARNED

Meanwhile, Gwiazdowski, ever the optimist, says unemployment has taught him a few things.

He has learned, for example, how to quickly assess an interviewer's age and play up or down his work experience accordingly -- he doesn't want to appear "threatening" to a potential employer who is younger. He has learned that by occasionally deleting and reuploading his resume to job sites, his entry appears fresh.

"It's almost like a game," he said, laughing. "You are desperate, but you can't show it."

But there are days when he just can't find any humor in his predicament -- like when he finishes a great interview but receives no offer, or when he hears a fellow job seeker finally found work and feels a slight twinge of jealousy.

"That's what I'm missing -- putting on that shirt and tie in the morning and going to work," he said.

The memory of getting dressed for work is still so vivid, Gwiazdowski says, that he has to believe another job is just around the corner.

"You always have to hope that that morning when you get up, it's going to be the day," he said.

"Today is going to be the day that something is going to happen."

Leslie Kwoh may be reached at lkwoh@starledger.com or (973) 392-4147.

DrBuzzard Jun 13, 2010

I collect from the state of iowa, was on tier I and when the gov't recessed without passing extension, iowa stopped paying tier I claims that were already open, i was scheduled to be on tier I until july 15th, and its gone now, as a surprise, when i tried to claim my week this week i was notified. SURPRISE, talk about stress.

berganliz Jun 13, 2010

This is terrible....just wait until RIF'd teachers hit the unemployment offices....but then, this is what NJ wanted...fired teachers who are to blame for the worst recession our country has seen in 150 years...thanks GWB.....thanks Donald Rumsfeld......thanks Dick Cheney....thanks Karl "Miss Piggy" Rove...and thank you Mr. Big Boy himself...Gov Krispy Kreame!

rp121 Jun 13, 2010

For readers who care about this nation's unemployed- Call your Senators to pass HR 4213, the "Extenders" bill. Unfortunately, it does not add UI benefits weeks, however it DOES continue the emergency federal tiers of UI. If it does not pass this week many of us are cut off at 26 wks. No tier 1, 2 -nothing.

[Dec 13, 2017] Unemployment health hazard and stress

The longer you are unemployed, the more you are effected by those factors.
Notable quotes:
"... The good news is that only a relatively small number of people are seriously affected by the stress of unemployment to the extent they need medical assistance. Most people don't get to the serious levels of stress, and much as they loathe being unemployed, they suffer few, and minor, ill effects. ..."
"... Worries about income, domestic problems, whatever, the list is as long as humanity. The result of stress is a strain on the nervous system, and these create the physical effects of the situation over time. The chemistry of stress is complex, but it can be rough on the hormonal system. ..."
"... Not at all surprisingly, people under stress experience strong emotions. It's a perfectly natural response to what can be quite intolerable emotional strains. It's fair to say that even normal situations are felt much more severely by people already under stress. Things that wouldn't normally even be issues become problems, and problems become serious problems. Relationships can suffer badly in these circumstances, and that, inevitably, produces further crises. Unfortunately for those affected, these are by now, at this stage, real crises. ..."
"... Some people are stubborn enough and tough enough mentally to control their emotions ruthlessly, and they do better under these conditions. Even that comes at a cost, and although under control, the stress remains a problem. ..."
"... One of the reasons anger management is now a growth industry is because of the growing need for assistance with severe stress over the last decade. This is a common situation, and help is available. ..."
"... Depression is universally hated by anyone who's ever had it. ..."
"... Very important: Do not, under any circumstances, try to use drugs or alcohol as a quick fix. They make it worse, over time, because they actually add stress. Some drugs can make things a lot worse, instantly, too, particularly the modern made-in-a-bathtub variety. They'll also destroy your liver, which doesn't help much, either. ..."
"... You don't have to live in a gym to get enough exercise for basic fitness. A few laps of the pool, a good walk, some basic aerobic exercises, you're talking about 30-45 minutes a day. It's not hard. ..."
Dec 13, 2017 | www.cvtips.com

It's almost impossible to describe the various psychological impacts, because there are so many. There are sometimes serious consequences, including suicide, and, some would say worse, chronic depression.

There's not really a single cause and effect. It's a compound effect, and unemployment, by adding stress, affects people, often badly.

The world doesn't need any more untrained psychologists, and we're not pretending to give medical advice. That's for professionals. Everybody is different, and their problems are different. What we can do is give you an outline of the common problems, and what you can do about them.

The good news is that only a relatively small number of people are seriously affected by the stress of unemployment to the extent they need medical assistance. Most people don't get to the serious levels of stress, and much as they loathe being unemployed, they suffer few, and minor, ill effects.

For others, there are a series of issues, and the big three are:

Stress

Stress is Stage One. It's a natural result of the situation. Worries about income, domestic problems, whatever, the list is as long as humanity. The result of stress is a strain on the nervous system, and these create the physical effects of the situation over time. The chemistry of stress is complex, but it can be rough on the hormonal system.

Over an extended period, the body's natural hormonal balances are affected, and this can lead to problems. These are actually physical issues, but the effects are mental, and the first obvious effects are, naturally, emotional.

Anger, and other negative emotions

Not at all surprisingly, people under stress experience strong emotions. It's a perfectly natural response to what can be quite intolerable emotional strains. It's fair to say that even normal situations are felt much more severely by people already under stress. Things that wouldn't normally even be issues become problems, and problems become serious problems. Relationships can suffer badly in these circumstances, and that, inevitably, produces further crises. Unfortunately for those affected, these are by now, at this stage, real crises.

If the actual situation was already bad, this mental state makes it a lot worse. Constant aggravation doesn't help people to keep a sense of perspective. Clear thinking isn't easy when under constant stress.

Some people are stubborn enough and tough enough mentally to control their emotions ruthlessly, and they do better under these conditions. Even that comes at a cost, and although under control, the stress remains a problem.

One of the reasons anger management is now a growth industry is because of the growing need for assistance with severe stress over the last decade. This is a common situation, and help is available.

If you have reservations about seeking help, bear in mind it can't possibly be any worse than the problem.

Depression

Depression is universally hated by anyone who's ever had it. This is the next stage, and it's caused by hormonal imbalances which affect serotonin. It's actually a physical problem, but it has mental effects which are sometimes devastating, and potentially life threatening.

The common symptoms are:

  • Difficulty in focusing mentally, thoughts all over the place in no logical order
  • Fits of crying for no known reason
  • Illogical, or irrational patterns of thought and behavior
  • Sadness
  • Suicidal thinking

It's a disgusting experience. No level of obscenity could possibly describe it. Depression is misery on a level people wouldn't conceive in a nightmare. At this stage the patient needs help, and getting it is actually relatively easy. It's convincing the person they need to do something about it that's difficult. Again, the mental state is working against the person. Even admitting there's a problem is hard for many people in this condition.

Generally speaking, a person who is trusted is the best person to tell anyone experiencing the onset of depression to seek help. Important: If you're experiencing any of those symptoms:

  • Get on the phone and make an appointment to see your doctor. It takes half an hour for a diagnosis, and you can be on your way home with a cure in an hour. You don't have to suffer. The sooner you start to get yourself out of depression, the better.
  • Avoid any antidepressants with the so-called withdrawal side effects. They're not too popular with patients, and are under some scrutiny. The normal antidepressants work well enough for most people.

Very important: Do not, under any circumstances, try to use drugs or alcohol as a quick fix. They make it worse, over time, because they actually add stress. Some drugs can make things a lot worse, instantly, too, particularly the modern made-in-a-bathtub variety. They'll also destroy your liver, which doesn't help much, either.

Alcohol, in particular, makes depression much worse. Alcohol is a depressant, itself, and it's also a nasty chemical mix with all those stress hormones.

If you've ever had alcohol problems, or seen someone with alcohol wrecking their lives, depression makes things about a million times worse.

Just don't do it. Steer clear of any so-called stimulants, because they don't mix with antidepressants, either.

Unemployment and staying healthy

The above is what you need to know about the risks of unemployment to your health and mental well being.

These situations are avoidable.

Your best defense against the mental stresses and strains of unemployment, and their related problems is staying healthy.

We can promise you that is nothing less than the truth. The healthier you are, the better your defenses against stress, and the more strength you have to cope with situations.

Basic health is actually pretty easy to achieve:

Diet

Eat real food, not junk, and make sure you're getting enough food. Your body can't work with resources it doesn't have. Good food is a real asset, and you'll find you don't get tired as easily. You need the energy reserves.

Give yourself a good selection of food that you like, that's also worth eating.

The good news is that plain food is also reasonably cheap, and you can eat as much as you need. Basic meals are easy enough to prepare, and as long as you're getting all the protein veg and minerals you need, you're pretty much covered.

You can also use a multivitamin cap, or broad spectrum supplements, to make sure you're getting all your trace elements. Also make sure you're getting the benefits of your food by taking acidophilus or eating yogurt regularly.

Exercise

You don't have to live in a gym to get enough exercise for basic fitness. A few laps of the pool, a good walk, some basic aerobic exercises, you're talking about 30-45 minutes a day. It's not hard.

Don't just sit and suffer

If anything's wrong, check it out when it starts, not six months later. Most medical conditions become serious when they're allowed to get worse.

For unemployed people the added risk is also that they may prevent you getting that job, or going for interviews. If something's causing you problems, get rid of it.

Nobody who's been through the blender of unemployment thinks it's fun.

Anyone who's really done it tough will tell you one thing:

Don't be a victim. Beat the problem, and you'll really appreciate the feeling.

[Dec 13, 2017] Being homeless is better than working for Amazon by Nichole Gracely

Notable quotes:
"... According to Amazon's metrics, I was one of their most productive order pickers -- I was a machine, and my pace would accelerate throughout the course of a shift. What they didn't know was that I stayed fast because if I slowed down for even a minute, I'd collapse from boredom and exhaustion ..."
"... toiling in some remote corner of the warehouse, alone for 10 hours, with my every move being monitored by management on a computer screen. ..."
"... ISS could simply deactivate a worker's badge and they would suddenly be out of work. They treated us like beggars because we needed their jobs. Even worse, more than two years later, all I see is: Jeff Bezos is hiring. ..."
"... I have never felt more alone than when I was working there. I worked in isolation and lived under constant surveillance ..."
"... That was 2012 and Amazon's labor and business practices were only beginning to fall under scrutiny. ..."
"... I received $200 a week for the following six months and I haven't had any source of regular income since those benefits lapsed. I sold everything in my apartment and left Pennsylvania as fast as I could. I didn't know how to ask for help. I didn't even know that I qualified for food stamps. ..."
Nov 28, 2014 | theguardian.com

wa8dzp:

Nichole Gracely has a master's degree and was one of Amazon's best order pickers. Now, after protesting the company, she's homeless.

I am homeless. My worst days now are better than my best days working at Amazon.

According to Amazon's metrics, I was one of their most productive order pickers -- I was a machine, and my pace would accelerate throughout the course of a shift. What they didn't know was that I stayed fast because if I slowed down for even a minute, I'd collapse from boredom and exhaustion.

During peak season, I trained incoming temps regularly. When that was over, I'd be an ordinary order picker once again, toiling in some remote corner of the warehouse, alone for 10 hours, with my every move being monitored by management on a computer screen.

Superb performance did not guarantee job security. ISS is the temp agency that provides warehouse labor for Amazon and they are at the center of the SCOTUS case Integrity Staffing Solutions vs. Busk. ISS could simply deactivate a worker's badge and they would suddenly be out of work. They treated us like beggars because we needed their jobs. Even worse, more than two years later, all I see is: Jeff Bezos is hiring.

I have never felt more alone than when I was working there. I worked in isolation and lived under constant surveillance. Amazon could mandate overtime and I would have to comply with any schedule change they deemed necessary, and if there was not any work, they would send us home early without pay. I started to fall behind on my bills.

At some point, I lost all fear. I had already been through hell. I protested Amazon. The gag order was lifted and I was free to speak. I spent my last days in a lovely apartment constructing arguments on discussion boards, writing articles and talking to reporters. That was 2012 and Amazon's labor and business practices were only beginning to fall under scrutiny. I walked away from Amazon's warehouse and didn't have any other source of income lined up.

I cashed in on my excellent credit, took out cards, and used them to pay rent and buy food because it would be six months before I could receive my first unemployment compensation check.

I received $200 a week for the following six months and I haven't had any source of regular income since those benefits lapsed. I sold everything in my apartment and left Pennsylvania as fast as I could. I didn't know how to ask for help. I didn't even know that I qualified for food stamps.

I furthered my Amazon protest while homeless in Seattle. When the Hachette dispute flared up I "flew a sign," street parlance for panhandling with a piece of cardboard: "I was an order picker at amazon.com. Earned degrees. Been published. Now, I'm homeless, writing and doing this. Anything helps."

I have made more money per word with my signs than I will probably ever earn writing, and I make more money per hour than I will probably ever be paid for my work. People give me money and offer well wishes and I walk away with a restored faith in humanity.

I flew my protest sign outside Whole Foods while Amazon corporate employees were on lunch break, and they gawked. I went to my usual flying spots around Seattle and made more money per hour protesting Amazon with my sign than I did while I worked with them. And that was in Seattle. One woman asked, "What are you writing?" I told her about the descent from working poor to homeless, income inequality, my personal experience. She mentioned Thomas Piketty's book, we chatted a little, she handed me $10 and wished me luck. Another guy said, "Damn, that's a great story! I'd read it," and handed me a few bucks.

[snip]

[Dec 12, 2017] Can Uber Ever Deliver Part Eleven Annual Uber Losses Now Approaching $5 Billion

Notable quotes:
"... Total 2015 gross passenger payments were 200% higher than 2014, but Uber corporate revenue improved 300% because Uber cut the driver share of passenger revenue from 83% to 77%. This was an effective $500 million wealth transfer from drivers to Uber's investors. ..."
"... Uber's P&L gains were wiped out by higher non-EBIDTAR expense. Thus the 300% Uber revenue growth did not result in any improvement in Uber profit margins. ..."
"... In 2016, Uber unilaterally imposed much larger cuts in driver compensation, costing drivers an additional $3 billion. [6] Prior to Uber's market entry, the take home pay of big-city cab drivers in the US was in the $12-17/hour range, and these earnings were possible only if drivers worked 65-75 hours a week. ..."
"... An independent study of the net earnings of Uber drivers (after accounting for the costs of the vehicles they had to provide) in Denver, Houston and Detroit in late 2015 (prior to Uber's big 2016 cuts) found that driver earnings had fallen to the $10-13/hour range. [7] Multiple recent news reports have documented how Uber drivers are increasing unable to support themselves from their reduced share of passenger payments. [8] ..."
"... Since mass driver defections would cause passenger volume growth to collapse completely, Uber was forced to reverse these cuts in 2017 and increased the driver share from 68% to 80%. This meant that Uber's corporate revenue, which had grown over 300% in 2015 and over 200% in 2016 will probably only grow by about 15% in 2017. ..."
"... Socialize the losses, privatize the gains, VC-ize the subsidies. ..."
"... The cold hard truth is that Uber is backed into a corner with severely limited abilities to tweak the numbers on either the supply or the demand side: cut driver compensation and they trigger driver churn (as has already been demonstrated), increase fare prices for riders and riders defect to cheaper alternatives. ..."
"... "Growth and Efficiency" are the sine qua non of Neoliberalism. Kalanick's "hype brilliance" was to con the market with "revenue growth" and signs ..."
Dec 12, 2017 | www.nakedcapitalism.com

Uber lost $2.5 billion in 2015, probably lost $4 billion in 2016, and is on track to lose $5 billion in 2017.

The top line on the table below shows is total passenger payments, which must be split between Uber corporate and its drivers. Driver gross earnings are substantially higher than actual take home pay, as gross earning must cover all the expenses drivers bear, including fuel, vehicle ownership, insurance and maintenance.

Most of the "profit" data released by Uber over time and discussed in the press is not true GAAP (generally accepted accounting principles) profit comparable to the net income numbers public companies publish but is EBIDTAR contribution. Companies have significant leeway as to how they calculate EBIDTAR (although it would exclude interest, taxes, depreciation, amortization) and the percentage of total costs excluded from EBIDTAR can vary significantly from quarter to quarter, given the impact of one-time expenses such as legal settlements and stock compensation. We only have true GAAP net profit results for 2014, 2015 and the 2nd/3rd quarters of 2017, but have EBIDTAR contribution numbers for all other periods. [5]

Uber had GAAP net income of negative $2.6 billion in 2015, and a negative profit margin of 132%. This is consistent with the negative $2.0 billion loss and (143%) margin for the year ending September 2015 presented in part one of the NC Uber series over a year ago.

No GAAP profit results for 2016 have been disclosed, but actual losses likely exceed $4 billion given the EBIDTAR contribution of negative $3.2 billion. Uber's GAAP losses for the 2nd and 3rd quarters of 2017 were over $2.5 billion, suggesting annual losses of roughly $5 billion.

While many Silicon Valley funded startups suffered large initial losses, none of them lost anything remotely close to $2.6 billion in their sixth year of operation and then doubled their losses to $5 billion in year eight. Reversing losses of this magnitude would require the greatest corporate financial turnaround in history.

No evidence of significant efficiency/scale gains; 2015 and 2016 margin improvements entirely explained by unilateral cuts in driver compensation, but losses soared when Uber had to reverse these cuts in 2017.

Total 2015 gross passenger payments were 200% higher than 2014, but Uber corporate revenue improved 300% because Uber cut the driver share of passenger revenue from 83% to 77%. This was an effective $500 million wealth transfer from drivers to Uber's investors. These driver compensation cuts improved Uber's EBIDTAR margin, but Uber's P&L gains were wiped out by higher non-EBIDTAR expense. Thus the 300% Uber revenue growth did not result in any improvement in Uber profit margins.

In 2016, Uber unilaterally imposed much larger cuts in driver compensation, costing drivers an additional $3 billion. [6] Prior to Uber's market entry, the take home pay of big-city cab drivers in the US was in the $12-17/hour range, and these earnings were possible only if drivers worked 65-75 hours a week.

An independent study of the net earnings of Uber drivers (after accounting for the costs of the vehicles they had to provide) in Denver, Houston and Detroit in late 2015 (prior to Uber's big 2016 cuts) found that driver earnings had fallen to the $10-13/hour range. [7] Multiple recent news reports have documented how Uber drivers are increasing unable to support themselves from their reduced share of passenger payments. [8]

A business model where profit improvement is hugely dependent on wage cuts is unsustainable, especially when take home wages fall to (or below) minimum wage levels. Uber's primary focus has always been the rate of growth in gross passenger revenue, as this has been a major justification for its $68 billion valuation. This growth rate came under enormous pressure in 2017 given Uber efforts to raise fares, major increases in driver turnover as wages fell, [9] and the avalanche of adverse publicity it was facing.

Since mass driver defections would cause passenger volume growth to collapse completely, Uber was forced to reverse these cuts in 2017 and increased the driver share from 68% to 80%. This meant that Uber's corporate revenue, which had grown over 300% in 2015 and over 200% in 2016 will probably only grow by about 15% in 2017.

MKS , December 12, 2017 at 6:19 am

"Uber's business model can never produce sustainable profits"

Two words not in my vocabulary are "Never" and "Always", that is a pretty absolute statement in an non-absolute environment. The same environment that has produced the "Silicon Valley Growth Model", with 15x earnings companies like NVIDA, FB and Tesla (Average earnings/stock price ratio in dot com bubble was 10x) will people pay ridiculous amounts of money for a company with no underlying fundamentals you damn right they will! Please stop with the I know all no body knows anything, especially the psychology and irrationality of markets which are made up of irrational people/investors/traders.

JohnnySacks , December 12, 2017 at 7:34 am

My thoughts exactly. Seems the only possible recovery for the investors is a perfectly engineered legendary pump and dump IPO scheme. Risky, but there's a lot of fools out there and many who would also like to get on board early in the ride in fear of missing out on all the money to be hoovered up from the greater fools. Count me out.

SoCal Rhino , December 12, 2017 at 8:30 am

The author clearly distinguishes between GAAP profitability and valuations, which is after all rather the point of the series. And he makes a more nuanced point than the half sentence you have quoted without context or with an indication that you omitted a portion. Did you miss the part about how Uber would have a strong incentive to share the evidence of a network effect or other financial story that pointed the way to eventual profit? Otherwise (my words) it is the classic sell at a loss, make it up with volume path to liquidation.

tegnost , December 12, 2017 at 9:52 am

apples and oranges comparison, nvidia has lots and lots of patented tech that produces revenue, facebook has a kajillion admittedly irrational users, but those users drive massive ad sales (as just one example of how that company capitalizes itself) and tesla makes an actual car, using technology that inspires it's buyers (the put your money where your mouth is crowd and it can't be denied that tesla, whatever it's faults are, battery tech is not one of them and that intellectual property is worth a lot, and tesla's investors are in on that real business, profitable or otherwise)

Uber is an iphone app. They lose money and have no path to profitability (unless it's the theory you espouse that people are unintelligent so even unintelligent ideas work to fleece them). This article touches on one of the great things about the time we now inhabit, uber drivers could bail en masse, there are two sides to the low attachment employees who you can get rid of easily. The drivers can delete the uber app as soon as another iphone app comes along that gets them a better return

allan , December 12, 2017 at 6:52 am

Yet another source (unintended) of subsidies for Uber, Lyft, etc., which might or might not have been mentioned earlier in the series:

Airports Are Losing Money as Ride-Hailing Services Grow [NYT]

For many air travelers, getting to and from the airport has long been part of the whole miserable experience. Do they drive and park in some distant lot? Take mass transit or a taxi? Deal with a rental car?

Ride-hailing services like Uber and Lyft are quickly changing those calculations. That has meant a bit less angst for travelers.

But that's not the case for airports. Travelers' changing habits, in fact, have begun to shake the airports' financial underpinnings. The money they currently collect from ride-hailing services do not compensate for the lower revenues from the other sources.

At the same time, some airports have had to add staff to oversee the operations of the ride-hailing companies, the report said. And with more ride-hailing vehicles on the roads outside terminals,
there's more congestion.

Socialize the losses, privatize the gains, VC-ize the subsidies.

Thuto , December 12, 2017 at 6:55 am

The cold hard truth is that Uber is backed into a corner with severely limited abilities to tweak the numbers on either the supply or the demand side: cut driver compensation and they trigger driver churn (as has already been demonstrated), increase fare prices for riders and riders defect to cheaper alternatives. The only question is how long can they keep the show going before the lights go out, slick marketing and propaganda can only take you so far, and one assumes the dumb money has a finite supply of patience and will at some point begin asking the tough questions.

Louis Fyne , December 12, 2017 at 8:35 am

The irony is that Uber would have been a perfectly fine, very profitable mid-sized company if Uber stuck with its initial model -- sticking to dense cities with limited parking, limiting driver supply, and charging a premium price for door-to-door delivery, whether by livery or a regular sedan. And then perhaps branching into robo-cars.

But somehow Uber/board/Travis got suckered into the siren call of self-driving cars, triple-digit user growth, and being in the top 100 US cities and on every continent.

Thuto , December 12, 2017 at 11:30 am

I've shared a similar sentiment in one of the previous posts about Uber. But operating profitably in decent sized niche doesn't fit well with ambitions of global domination. For Uber to be "right-sized", an admission of folly would have to be made, its managers and investors would have to transcend the sunk cost fallacy in their strategic decision making, and said investors would have to accept massive hits on their invested capital. The cold, hard reality of being blindsided and kicked to the curb in the smartphone business forced RIM/Blackberry to right-size, and they may yet have a profitable future as an enterprise facing software and services company. Uber would benefit from that form of sober mindedness, but I wouldn't hold my breath.

David Carl Grimes , December 12, 2017 at 6:57 am

The question is: Why did Softbank invest in Uber?

Michael Fiorillo , December 12, 2017 at 9:33 am

I know nothing about Softbank or its management, but I do know that the Japanese were the dumb money rubes in the late '80's, overpaying for trophy real estate they lost billions on.

Until informed otherwise, that's my default assumption

JimTan , December 12, 2017 at 10:50 am

Softbank possibly looking to buy more Uber shares at a 30% discount is very odd. Uber had a Series G funding round in June 2016 where a $3.5 billion investment from Saudi Arabia's Public Investment Fund resulted in its current $68 billion valuation. Now apparently Softbank wants to lead a new $6 billion funding round to buy the shares of Uber employees and early investors at a 30% discount from this last "valuation". It's odd because Saudi Arabia's Public Investment Fund has pledged $45 billion to SoftBank's Vision Fund , an amount which was supposed to come from the proceeds of its pending Aramco IPO. If the Uber bid is linked to SoftBank's Vision Fund, or KSA money, then its not clear why this investor might be looking to literally 'double down' from $3.5 billion o $6 billion on a declining investment.

Yves Smith Post author , December 12, 2017 at 11:38 am

SoftBank has not yet invested. Its tender is still open. If it does not get enough shares at a price it likes, it won't invest.

As to why, I have no idea.

Robert McGregor , December 12, 2017 at 7:04 am

"Growth and Efficiency" are the sine qua non of Neoliberalism. Kalanick's "hype brilliance" was to con the market with "revenue growth" and signs of efficiency, and hopes of greater efficiency, and make most people just overlook the essential fact that Uber is the most unprofitable company of all time!

divadab , December 12, 2017 at 7:19 am

What comprises "Uber Expenses"? 2014 – $1.06 billion; 2015 $3.33 billion; 2016 $9.65 billion; forecast 2017 $11.418 billion!!!!!! To me this is the big question – what are they spending $10 billion per year on?

ALso – why did driver share go from 68% in 2016 to 80% in 2017? If you use 68% as in 2016, 2017 Uber revenue is $11.808 billion, which means a bit better than break-even EBITDA, assuming Uber expenses are as stated $11.428 billion.

Perhaps not so bleak as the article presents, although I would not invest in this thing.

Phil in Kansas City , December 12, 2017 at 7:55 am

I have the same question: What comprises over 11 billion dollars in expenses in 2017? Could it be they are paying out dividends to the early investors? Which would mean they are cannibalizing their own company for the sake of the VC! How long can this go on before they'll need a new infusion of cash?

lyman alpha blob , December 12, 2017 at 2:37 pm

The Saudis have thrown a few billion Uber's way and they aren't necessarily known as the smart money.

Maybe the pole dancers have started chipping in too as they are for bitcoin .

Vedant Desai , December 12, 2017 at 10:37 am

Oh article does answer your 2nd question. Read this paragraph:-

Since mass driver defections would cause passenger volume growth to collapse completely , Uber was forced to reverse these cuts in 2017 and increased the driver share from 68% to 80%. This meant that Uber's corporate revenue, which had grown over 300% in 2015 and over 200% in 2016 will probably only grow by about 15% in 2017.

As for the 1st, read this line in the article:-

There are undoubtedly a number of things Uber could do to reduce losses at the margin, but it is difficult to imagine it could suddenly find the $4-5 billion in profit improvement needed merely to reach breakeven.

Louis Fyne , December 12, 2017 at 8:44 am

in addition to all the points listed in the article/comments, the absolute biggest flaw with Uber is that Uber HQ conditioned its customers on (a) cheap fares and (b) that a car is available within minutes (1-5 if in a big city).

Those two are not mutually compatible in the long-term.

Alfred , December 12, 2017 at 9:49 am

Thus (a) "We cost less" and (b) "We're more convenient" -- aren't those also the advantages that Walmart claims and feeds as a steady diet to its ever hungry consumers? Often if not always, disruption may repose upon delusion.

Martin Finnucane , December 12, 2017 at 11:06 am

Uber's business model could never produce sustainable profits unless it was able to exploit significant anti-competitive market power.

Upon that dependent clause hangs the future of capitalism, and – dare I say it? – its inevitable demise.

Altandmain , December 12, 2017 at 11:09 am

When this Uber madness blows up, I wonder if people will finally begin to discuss the brutal reality of Silicon Valley's so called "disruption".

It is heavily built in around the idea of economic exploitation. Uber drivers are often, especially when the true costs to operate an Uber including the vehicle depreciation are factored in, making not very much per hour driven, especially if they don't get the surge money.

Instacart is another example. They are paying the deliver operators very little.

Jim A. , December 12, 2017 at 12:21 pm

At a fundamental level, I think that the Silicon Valley "disruption" model only works for markets (like software) where the marginal cost for production is de minimus and the products can be protected by IP laws. Volume and market power really work in those cases. But out here in meat-space, where actual material and labor are big inputs to each item sold, you can never just sit back on your laurels and rake in the money. Somebody else will always be able to come and and make an equivalent product. If they can do it more cheaply, you are in trouble.

Altandmain , December 12, 2017 at 5:40 pm

There aren't that many areas in goods and services where the marginal costs are very low.

Software is actually quite unique in that regard, costing merely the bandwidth and permanent storage space to store.

Let's see:

1. From the article, they cannot go public and have limited ways to raise more money. An IPO with its more stringent disclosure requirements would expose them.

2. They tried lowering driver compensation and found that model unsustainable.

3. There are no benefits to expanding in terms of economies of scale.

From where I am standing, it looks like a lot of industries gave similar barriers. Silicon Valley is not going to be able to disrupt those.

Tesla, another Silicon Valley company seems to be struggling to mass produce its Model 3 and deliver an electric car that breaks even, is reliable, while disrupting the industry in the ways that Elon Musk attempted to hype up.

So that basically leaves services and manufacturing out for Silicon Valley disruption.

Joe Bentzel , December 12, 2017 at 2:19 pm

UBER has become a "too big to fail" startup because of all the different tentacles of capital from various Tier 1 VCs and investment bankers.

VCs have admitted openly that UBER is a subsidized business, meaning it's product is sold below market value, and the losses reflect that subsidization. The whole "2 sided platform" argument is just marketecture to hustle more investors. It's a form of service "dumping" that puts legacy businesses into bankruptcy. Back during the dotcom bubble one popular investment banker (Paul Deninger) characterized this model as "Terrorist Competition", i.e. coffers full of invested cash to commoditize the market and drive out competition.

UBER is an absolute disaster that has forked the startup model in Silicon Valley in order to drive total dependence on venture capital by founders. And its current diversification into "autonomous vehicles", food delivery, et al are simply more evidence that the company will never be profitable due to its whacky "blitzscaling" approach of layering on new "businesses" prior to achieving "fit" in its current one.

It's economic model has also metastasized into a form of startup cancer that is killing Silicon Valley as a "technology" innovator. Now it's all cargo cult marketing BS tied to "strategic capital".

UBER is the victory of venture capital and user subsidized startups over creativity by real entrepreneurs.

It's shadow is long and that's why this company should be ..wait for it UNBUNDLED (the new silicon valley word attached to that other BS religion called "disruption"). Call it a great unbundling and you can break up this monster corp any way you want.

Naked Capitalism is a great website.

Phil in KC , December 12, 2017 at 3:20 pm

1. I Agree with your last point.

2. The elevator pitch for Uber: subsidize rides to attract customers, put the competition out of business, and then enjoy an unregulated monopoly, all while exploiting economically ignorant drivers–ahem–"partners."

3. But more than one can play that game, and

4. Cab and livery companies are finding ways to survive!

Phil in KC , December 12, 2017 at 3:10 pm

If subsidizing rides is counted as an expense, (not being an accountant, I would guess it so), then whether the subsidy goes to the driver or the passenger, that would account for the ballooning expenses, to answer my own question. Otherwise, the overhead for operating what Uber describes as a tech company should be minimal: A billion should fund a decent headquarters with staff, plus field offices in, say, 100 U.S. cities. However, their global pretensions are probably burning cash like crazy. On top of that, I wonder what the exec compensation is like?

After reading HH's initial series, I made a crude, back-of-the-envelope calculation that Uber would run out of money sometime in the third fiscal quarter of 2018, but that was based on assuming losses were stabilizing in the range of 3 billion a year. Not so, according to the article. I think crunch time is rapidly approaching. If so, then SoftBank's tender offer may look quite appetizing to VC firms and to any Uber employee able to cash in their options. I think there is a way to make a re-envisioned Uber profitable, and with a more independent board, they may be able to restructure the company to show a pathway to profitability before the IPO. But time is running out.

A not insignificant question is the recruitment and retention of the front line "partners." It would seem to me that at some point, Uber will run out of economically ignorant drivers with good manners and nice cars. I would be very interested to know how many drivers give up Uber and other ride-sharing gigs once the 1099's start flying at the beginning of the year. One of the harsh realities of owning a business or being an contractor is the humble fact that you get paid LAST!

Jan Stickle , December 12, 2017 at 5:00 pm

We became instant Uber riders while spending holidays with relatives in San Diego. While their model is indeed unique from a rider perspective, it was the driver pool that fascinates me. These are not professional livery drivers, but rather freebooters of all stripes driving for various reasons. The remuneration they receive cannot possibly generate much income after expenses, never mind the problems associated with IRS filing as independent contractors.

One guy was just cruising listening to music; cooler to get paid for it than just sitting home! A young lady was babbling and gesticulating non stop about nothing coherent and appeared to be on some sort of stimulant. A foreign gentleman, very professional, drove for extra money when not at his regular job. He was the only one who had actually bought a new Prius for this gig, hoping to pay it off in two years.

This is indeed a brave new world. There was a period in Nicaragua just after the Contra war ended when citizens emerged from their homes and hit the streets in large numbers, desperately looking for income. Every car was a taxi and there was a bipedal mini Walmart at every city intersection as individuals sold everything and anything in a sort of euphoric optimism towards the future. Reality just hadn't caught up with them yet .

[Dec 03, 2017] Business Has Killed IT With Overspecialization by Charlie Schluting

Highly recommended!
Notable quotes:
"... What happened to the old "sysadmin" of just a few years ago? We've split what used to be the sysadmin into application teams, server teams, storage teams, and network teams. There were often at least a few people, the holders of knowledge, who knew how everything worked, and I mean everything. ..."
"... Now look at what we've done. Knowledge is so decentralized we must invent new roles to act as liaisons between all the IT groups. Architects now hold much of the high-level "how it works" knowledge, but without knowing how any one piece actually does work. In organizations with more than a few hundred IT staff and developers, it becomes nearly impossible for one person to do and know everything. This movement toward specializing in individual areas seems almost natural. That, however, does not provide a free ticket for people to turn a blind eye. ..."
"... Does your IT department function as a unit? Even 20-person IT shops have turf wars, so the answer is very likely, "no." As teams are split into more and more distinct operating units, grouping occurs. One IT budget gets split between all these groups. Often each group will have a manager who pitches his needs to upper management in hopes they will realize how important the team is. ..."
"... The "us vs. them" mentality manifests itself at all levels, and it's reinforced by management having to define each team's worth in the form of a budget. One strategy is to illustrate a doomsday scenario. If you paint a bleak enough picture, you may get more funding. Only if you are careful enough to illustrate the failings are due to lack of capital resources, not management or people. A manager of another group may explain that they are not receiving the correct level of service, so they need to duplicate the efforts of another group and just implement something themselves. On and on, the arguments continue. ..."
Apr 07, 2010 | Enterprise Networking Planet

What happened to the old "sysadmin" of just a few years ago? We've split what used to be the sysadmin into application teams, server teams, storage teams, and network teams. There were often at least a few people, the holders of knowledge, who knew how everything worked, and I mean everything. Every application, every piece of network gear, and how every server was configured -- these people could save a business in times of disaster.

Now look at what we've done. Knowledge is so decentralized we must invent new roles to act as liaisons between all the IT groups. Architects now hold much of the high-level "how it works" knowledge, but without knowing how any one piece actually does work. In organizations with more than a few hundred IT staff and developers, it becomes nearly impossible for one person to do and know everything. This movement toward specializing in individual areas seems almost natural. That, however, does not provide a free ticket for people to turn a blind eye.

Specialization

You know the story: Company installs new application, nobody understands it yet, so an expert is hired. Often, the person with a certification in using the new application only really knows how to run that application. Perhaps they aren't interested in learning anything else, because their skill is in high demand right now. And besides, everything else in the infrastructure is run by people who specialize in those elements. Everything is taken care of.

Except, how do these teams communicate when changes need to take place? Are the storage administrators teaching the Windows administrators about storage multipathing; or worse logging in and setting it up because it's faster for the storage gurus to do it themselves? A fundamental level of knowledge is often lacking, which makes it very difficult for teams to brainstorm about new ways evolve IT services. The business environment has made it OK for IT staffers to specialize and only learn one thing.

If you hire someone certified in the application, operating system, or network vendor you use, that is precisely what you get. Certifications may be a nice filter to quickly identify who has direct knowledge in the area you're hiring for, but often they indicate specialization or compensation for lack of experience.

Resource Competition

Does your IT department function as a unit? Even 20-person IT shops have turf wars, so the answer is very likely, "no." As teams are split into more and more distinct operating units, grouping occurs. One IT budget gets split between all these groups. Often each group will have a manager who pitches his needs to upper management in hopes they will realize how important the team is.

The "us vs. them" mentality manifests itself at all levels, and it's reinforced by management having to define each team's worth in the form of a budget. One strategy is to illustrate a doomsday scenario. If you paint a bleak enough picture, you may get more funding. Only if you are careful enough to illustrate the failings are due to lack of capital resources, not management or people. A manager of another group may explain that they are not receiving the correct level of service, so they need to duplicate the efforts of another group and just implement something themselves. On and on, the arguments continue.

Most often, I've seen competition between server groups result in horribly inefficient uses of hardware. For example, what happens in your organization when one team needs more server hardware? Assume that another team has five unused servers sitting in a blade chassis. Does the answer change? No, it does not. Even in test environments, sharing doesn't often happen between IT groups.

With virtualization, some aspects of resource competition get better and some remain the same. When first implemented, most groups will be running their own type of virtualization for their platform. The next step, I've most often seen, is for test servers to get virtualized. If a new group is formed to manage the virtualization infrastructure, virtual machines can be allocated to various application and server teams from a central pool and everyone is now sharing. Or, they begin sharing and then demand their own physical hardware to be isolated from others' resource hungry utilization. This is nonetheless a step in the right direction. Auto migration and guaranteed resource policies can go a long way toward making shared infrastructure, even between competing groups, a viable option.

Blamestorming

The most damaging side effect of splitting into too many distinct IT groups is the reinforcement of an "us versus them" mentality. Aside from the notion that specialization creates a lack of knowledge, blamestorming is what this article is really about. When a project is delayed, it is all too easy to blame another group. The SAN people didn't allocate storage on time, so another team was delayed. That is the timeline of the project, so all work halted until that hiccup was restored. Having someone else to blame when things get delayed makes it all too easy to simply stop working for a while.

More related to the initial points at the beginning of this article, perhaps, is the blamestorm that happens after a system outage.

Say an ERP system becomes unresponsive a few times throughout the day. The application team says it's just slowing down, and they don't know why. The network team says everything is fine. The server team says the application is "blocking on IO," which means it's a SAN issue. The SAN team say there is nothing wrong, and other applications on the same devices are fine. You've ran through nearly every team, but without an answer still. The SAN people don't have access to the application servers to help diagnose the problem. The server team doesn't even know how the application runs.

See the problem? Specialized teams are distinct and by nature adversarial. Specialized staffers often relegate themselves into a niche knowing that as long as they continue working at large enough companies, "someone else" will take care of all the other pieces.

I unfortunately don't have an answer to this problem. Maybe rotating employees between departments will help. They gain knowledge and also get to know other people, which should lessen the propensity to view them as outsiders

[Dec 03, 2017] Nokia Shareholders Fight Back

On the topic of outsourcing, IMO it can be cheaper if done right. On paper it always seems like a great idea, but in practice it's not always the best idea financially and/or getting the same or better result in comparison to keeping it in-house. I've worked for companies where they have outsourced a particular department/function to companies where I am the one the job is outsourced to. My observation has been the success of getting projects done (e.g.: programing) or facilitating a role (e.g.: sys admin) rely on a few factors regardless of outsourcing or not.
Notable quotes:
"... On the topic of outsourcing, IMO it can be cheaper if done right. On paper it always seems like a great idea, but in practice it's not always the best idea financially and/or getting the same or better result in comparison to keeping it in-house. I've worked for companies where they have outsourced a particular department/function to companies where I am the one the job is outsourced to. My observation has been the success of getting projects done (e.g.: programing) or facilitating a role (e.g.: sys admin) rely on a few factors regardless of outsourcing or not. ..."
Slashdot

noc007 (633443)

On the topic of outsourcing, IMO it can be cheaper if done right. On paper it always seems like a great idea, but in practice it's not always the best idea financially and/or getting the same or better result in comparison to keeping it in-house. I've worked for companies where they have outsourced a particular department/function to companies where I am the one the job is outsourced to. My observation has been the success of getting projects done (e.g.: programing) or facilitating a role (e.g.: sys admin) rely on a few factors regardless of outsourcing or not.

The first is a golden rule of sorts on doing anything:

  • Cheap
  • Quality
  • Fast

You can only pick two; NO exceptions. I've encountered so many upper management types that foolishly think they can get away with having all three. In my experience 9/10 of the time it turns out a lack of quality bites them in the butt sometime down the road when they assumed they somehow managed to achieve all three.

The second is communication. Mostly everyone in at least the US has experienced the pain of being subjected to some company's outsourced customer service and/or tech support that can't effectively communicate with both parties on the same page of understanding one another. I really shouldn't need to explain why communication, understanding one another is so important. Sadly this is something I have to constantly explain to my current boss with events like today where my non-outsourced colleague rebooted a number of production critical servers when he was asked to reboot just one secondary server.

Third is the employee's skill in doing the job. Again, another obvious one, but I've observed that it isn't always on the hiring menu. Additionally I've seen some people that interview well, but couldn't create a "Hello World" HTML page for a web developer position as an example. There's no point in hiring or keeping a hired individual to do a job that they lack the skill to do; even if it's an entry-level position with training, that person should be willing to put for the effort to learn and take notes. I accept that everyone has their own unique skills that can aide or hinder their ability to learn and be proficient with a particular task. However, I firmly believe anyone can learn to do anything as long as they put their mind to it. I barely have any artistic ability and my drawing skills are stick figures at best (XKCD is miles ahead of me); if I were to put forth the effort to learn how to draw and paint, I could become a good artist. I taught an A+ technician certification class at a tech school a while back and I had a retired Marine that served in the Vietnam War as one of my students. One could argue his best skill was killing and blowing stuff up. He worked hard and learned to be a technician and passed CompTIA's certification test without a problem. That leads me to the next point.

Lastly is attitude of the end employee doing the actual work. It boggles my mind how so many managers loose the plot when it comes to employee morale and motivation. Productivity generally is improved when those two are improved and it usually doesn't have to involve spending a bunch of money. The employee's attitude should be getting the work done correctly in a reasonable amount of time. Demanding it is a poor approach. Poisoning an employee will result in poisoning the company in a small manner all the way up to the failure of the company. Employees should be encouraged through actual morale improvements, positive motivation, and incentives for doing more work at the same and/or better quality level.

Outsourcing or keeping things in house can be successful and possibly economical if approached correctly with the appropriate support of upper management.

Max Littlemore (1001285)

How dramatic? Isn't outsourcing done (like it or not) to reduce costs?

Outsourcing is done to reduce the projected costs that PHBs see. In reality, outsourcing can lead to increased costs and delays due to time zone differences and language/cultural barriers.

I have seen it work reasonably well, but only when the extra effort and delays caused by the increased need for rework that comes from complex software projects. If you are working with others on software, it is so much quicker to produce quality software if the person who knows the business requirements is sitting right next to the person doing design and the person cutting code and the person doing the testing, etc, etc.

If these people or groups are scattered around the world with different cultures and native languages, communication can suffer, increasing misunderstanding and reducing the quality. I have personally seen this lead to massive increase in code defects in a project that went from in house development to outsourced.

Also, time zone differences cause problems. I have noticed that the further west people live, the less likely they are to take into account how far behind they are. Working with people who fail to realise that their Monday morning is the next day for someone else, or that by the time they are halfway through Friday, others are already on their weekend is not only frustrating, it leads to slow turn around of bug fixes, etc.

Yeah, I'm told outsourcing keeps costs down, but I am yet to see conclusive evidence of that in the real world. At least in complex development. YMMV for support/call centre stuff.

-- I don't therefore I'm not.

[Nov 28, 2017] The Stigmatization of the Unemployed

"This overly narrow hiring spec then leads to absurd, widespread complaint that companies can't find people with the right skills" . In the IT job markets such postings are often called purple squirrels
Notable quotes:
"... In particular, there seems to be an extremely popular variant of the above where the starting proposition "God makes moral people rich" is improperly converted to "Rich people are more moral" which is then readily negated to "Poor people are immoral" and then expanded to "Poor people are immoral, thus they DESERVE to suffer for it". It's essentially the theological equivalent of dividing by zero ..."
"... That said, the ranks of the neoliberals are not small. They constitute what Jonathan Schell calls a "mass minority." I suspect the neoliberals have about the same level of popular support that the Nazis did at the time of their takeover of Germany in 1932, or the Bolsheviks had in Russia at the time of their takeover in 1917, which is about 20 or 25% of the total population. ..."
"... The ranks of the neoliberals are made to appear far greater than they really are because they have all but exclusive access to the nation's megaphone. The Tea Party can muster a handful of people to disrupt a town hall meeting and it gets coast to coast, primetime coverage. But let a million people protest against bank bailouts, and it is ignored. Thus, by manipulation of the media, the mass minority is made to appear to be much larger than it really is. ..."
Mar 20, 2011 | naked capitalism

Spencer Thomas:

Very good post. Thank you.

Over the past three decades, large parts of our culture here in the US have internalized the lessons of the new Social Darwinism, with a significant body of literature to explain and justify it. Many of us have internalized, without even realizing it, the ideas of "dog eat dog", "every man for himself", "society should be structured like the animal kingdom, where the weak and sick simply die because they cannot compete, and this is healthy", and "everything that happens to you is your own fault. There is no such thing as circumstance that cannot be overcome, and certainly no birth lottery."

The levers pulled by politicians and the Fed put these things into practice, but even if we managed get different (better) politicians or Fed chairmen, ones who weren't steeped in this culture and ideology, we'd still be left with the culture in the population at large, and things like the "unemployed stigma" are likely to die very, very hard. Acceptance of the "just-world phenomenon" here in the US runs deep.

perfect stranger:

"Religion is just as vulnerable to corporate capture as is the government or the academy."

This is rather rhetorical statement, and wrong one. One need to discern spiritual aspect of religion from the religion as a tool.

Religion, as is structured, is complicit: in empoverishment, obedience, people's preconditioning, and legislative enabler in the institutions such as Supreme – and non-supreme – Court(s). It is a form of PR of the ruling class for the governing class.

DownSouth:

perfect stranger,

Religion, just like human nature, is not that easy to put in a box.

For every example you can cite where religion "is complicit: in empoverishment, obedience, people's preconditioning, and legislative enabler in the institution," I can point to an example of where religion engendered a liberating, emancipatory and revolutionary spirit.

Examples:

•Early Christianity •Nominalism •Early Protestantism •Gandhi •Martin Luther King

Now granted, there don't seem to be any recent examples of this of any note, unless we consider Chris Hedges a religionist, which I'm not sure we can do. Would it be appropriate to consider Hedges a religionist?

perfect stranger:

Yes, that maybe, just maybe be the case in early stages of forming new religion(s). In case of Christianity old rulers from Rome were trying to save own head/throne and the S.P.Q.R. imperia by adopting new religion.

You use examples of Gandhi and MLK which is highly questionable both were fighters for independence and the second, civil rights. In a word: not members of establishment just as I said there were (probably) seeing the religion as spiritual force not tool of enslavement.

Matt:

This link may provide some context:

http://en.wikipedia.org/wiki/Prosperity_theology

In particular, there seems to be an extremely popular variant of the above where the starting proposition "God makes moral people rich" is improperly converted to "Rich people are more moral" which is then readily negated to "Poor people are immoral" and then expanded to "Poor people are immoral, thus they DESERVE to suffer for it". It's essentially the theological equivalent of dividing by zero

DownSouth:

Rex,

I agree.

Poll after poll after poll has shown that a majority of Americans, and a rather significant majority, reject the values, attitudes, beliefs and opinions proselytized by the stealth religion we call "neoclassical economics."

That said, the ranks of the neoliberals are not small. They constitute what Jonathan Schell calls a "mass minority." I suspect the neoliberals have about the same level of popular support that the Nazis did at the time of their takeover of Germany in 1932, or the Bolsheviks had in Russia at the time of their takeover in 1917, which is about 20 or 25% of the total population.

The ranks of the neoliberals are made to appear far greater than they really are because they have all but exclusive access to the nation's megaphone. The Tea Party can muster a handful of people to disrupt a town hall meeting and it gets coast to coast, primetime coverage. But let a million people protest against bank bailouts, and it is ignored. Thus, by manipulation of the media, the mass minority is made to appear to be much larger than it really is.

The politicians love this, because as they carry water for their pet corporations, they can point to the Tea Partiers and say: "See what a huge upwelling of popular support I am responding to."

JTFaraday:

Well, if that's true, then the unemployed are employable but the mass mediated mentality would like them to believe they are literally and inherently unemployable so that they underestimate and under-sell themselves.

This is as much to the benefit of those who would like to pick up "damaged goods" on the cheap as those who promote the unemployment problem as one that inheres in prospective employees rather than one that is a byproduct of a bad job market lest someone be tempted to think we should address it politically.

That's where I see this blame the unemployed finger pointing really getting traction these days.

attempter:

I apologize for the fact that I only read the first few paragraphs of this before quitting in disgust.

I just can no longer abide the notion that "labor" can ever be seen by human beings as a "cost" at all. We really need to refuse to even tolerate that way of phrasing things. Workers create all wealth. Parasites have no right to exist. These are facts, and we should refuse to let argument range beyond them.

The only purpose of civilization is to provide a better way of living and for all people. This includes the right and full opportunity to work and manage for oneself and/or as a cooperative group. If civilization doesn't do that, we're better off without it.

psychohistorian:

I am one of those long term unemployed.

I suppose my biggest employment claim would be as some sort of IT techie, with numerous supply chain systems and component design, development, implementation, interfaces with other systems and ongoing support. CCNP certification and a history of techiedom going back to WEYCOS.

I have a patent (6,209,954) in my name and 12+ years of beating my head against the wall in an industry that buys compliance with the "there is no problem here, move on now" approach.

Hell, I was a junior woodchuck program administrator back in the early 70's working for the Office of the Governor of the state of Washington on CETA PSE or Public Service Employment. The office of the Governor ran the PSE program for 32 of the 39 counties in the state that were not big enough to run their own. I helped organize the project approval process in all those counties to hire folk at ( if memory serves me max of $833/mo.) to fix and expand parks and provide social and other government services as defined projects with end dates. If we didn't have the anti-public congress and other government leadership we have this could be a current component in a rational labor policy but I digress.

I have experience in the construction trades mostly as carpenter but some electrical, plumbing, HVAC, etc. also.

So, of course there is some sort of character flaw that is keeping me and all those others from employment ..right. I may have more of an excuse than others, have paid into SS for 45 years but still would work if it was available ..taking work away from other who may need it more .why set up a society where we have to compete as such for mere existence???????

One more face to this rant. We need government by the people and for the people which we do not have now. Good, public focused, not corporate focused government is bigger than any entities that exist under its jurisdiction and is kept updated by required public participation in elections and potentially other things like military, peace corps, etc. in exchange for advanced education. I say this as someone who has worked at various levels in both the public and private sectors there are ignorant and misguided folks everywhere. At least with ongoing active participation there is a chance that government would, once constructed, be able to evolve as needed within public focus .IMO.

Ishmael:

Some people would say I have been unemployed for 10 years. In 2000 after losing the last of my four CFO gigs for public companies I found it necessary to start consulting. This has lead to two of my three biggest winning years. I am usually consulting on cutting edge area of my profession and many times have large staffs reporting to me that I bring on board to get jobs done. For several years I subcontacted to a large international consulting firm to clean up projects which went wrong. Let me give some insight here.

  1. First, most good positions have gate keepers who are professional recruiters. It is near impossible to get by them and if you are unemployed they will hardly talk to you. One time talking to a recruiter at Korn Fery I was interviewing for a job I have done several times in an industry I have worked in several times. She made a statement that I had never worked at a well known company. I just about fell out of my chair laughing. At one time I was a senior level executive for the largest consulting firm in the world and lived on three continents and worked with companies on six. In addition, I had held senior positions for 2 fortune 500 firms and was the CFO for a company with $4.5 billion in revenue. I am well known at several PE firms and the founder of one of the largest mentioned in a meeting that one of his great mistakes was not investing in a very successful LBO (return of in excess of 20 multiple to investors in 18 months) I was the CFO for. In a word most recruiters are incompetent.
  2. Second, most CEO's any more are just insecure politicians. One time during an interview I had a CEO asked me to talk about some accomplishments. I was not paying to much attention as I rattled off accomplishments and the CEO went nuclear and started yelling at me that he did not know where I thought I was going with this job but the only position above the CFO job was his and he was not going anywhere. I assured him I was only interested in the CFO position and not his, but I knew the job was over. Twice feed back that I got from recruiters which they took at criticism was the "client said I seemed very assured of myself."
  3. Third, government, banking, business and the top MBA schools are based upon lying to move forward. I remember a top human resource executive telling me right before Enron, MCI and Sarbanes Oxley that I needed to learn to be more flexible. My response was that flexibility would get me an orange jump suit. Don't get me wrong, I have a wide grey zone, but it use to be in business the looked for people who could identify problems early and resolve them. Now days I see far more of a demand for people who can come up with PR spins to hide them. An attorney/treasurer consultant who partnered with me on a number of consulting jobs told me some one called me "not very charming." He said he asked what that meant, and the person who said that said, "Ish walks into a meeting and within 10 minutes he is asking about the 10,000 pound guerilla sitting in the room that no one wants to talk about." CEO do not want any challenges in their organization.
  4. Fourth, three above has lead to the hiring of very young and inexperienced people at senior levels. These people are insecure and do not want more senior and experienced people above them and than has resulted in people older than 45 not finding positions.
  5. Fifth, people are considered expendable and are fired for the lamest reasons anymore. A partner at one of the larger and more prestigious recruiting firms one time told me, "If you have a good consulting business, just stick with it. Our average placement does not last 18 months any more." Another well known recruiter in S. Cal. one time commented to me, "Your average consulting gig runs longer than our average placement."

With all of that said, I have a hard time understanding such statements as "@attempter "Workers create all wealth. Parasites have no right to exist." What does that mean? Every worker creates wealth. There is no difference in people. Sounds like communism to me. I make a good living and my net worth has grown working for myself. I have never had a consulting gig terminated by the client but I have terminated several. Usually, I am brought in to fix what several other people have failed at. I deliver basically intellectual properties to companies. Does that mean I am not a worker. I do not usually lift anything heavy or move equipment but I tell people what and where to do it so does that make me a parasite.

Those people who think everyone is equal and everyone deserves equal pay are fools or lazy. My rate is high, but what usually starts as short term projects usually run 6 months or more because companies find I can do so much more than what most of their staff can do and I am not a threat.

I would again like to have a senior challenging role at a decent size company but due to the reasons above will probably never get one. However, you can never tell. I am currently consulting for a midsize very profitable company (grew 400% last year) where I am twice the age of most people there, but everyone speaks to me with respect so you can never tell.

Lidia:

Ishmael, you're quite right. When I showed my Italian husband's resume to try and "network" in the US, my IT friends assumed he was lying about his skills and work history.

Contemporaneously, in Italy it is impossible to get a job because of incentives to hire "youth". Age discrimination is not illegal, so it's quite common to see ads that ask for a programmer under 30 with 5 years of experience in COBOL (the purple squirrel).

Hosswire

Some good points about the foolishness of recruiters, but a great deal of that foolishness is forced by the clients themselves. I used to be a recruiter myself, including at Korn Ferry in Southern California. I described the recruiting industry as "yet more proof that God hates poor people" because my job was to ignore resumes from people seeking jobs and instead "source" aka "poach" people who already had good jobs by dangling a higher salary in front of them. I didn't do it because I disparaged the unemployed, or because I could not do the basic analysis to show that a candidate had analogous or transferrable skills to the opening.

I did it because the client, as Yves said, wanted people who were literally in the same job description already. My theory is that the client wanted to have their ass covered in case the hire didn't work out, by being able to say that they looked perfect "on paper." The lesson I learned for myself and my friends looking for jobs was simple, if morally dubious. Basically, that if prospective employers are going to judge you based on a single piece of paper take full advantage of the fact that you get to write that piece of paper yourself.

Ishmael:

Hosswire - I agree with your comment. There are poor recruiters like the one I sited but in general it is the clients fault. Fear of failure. All hires have at least a 50% chance of going sideways on you. Most companies do not even have the ability to look at a resume nor to interview. I did not mean to same nasty things about recruiters, and I even do it sometimes but mine.

I look at failure in a different light than most companies. You need to be continually experimenting and changing to survive as a company and there will be some failures. The goal is to control the cost of failures while looking for the big pay off on a winner.

Mannwich:

As a former recruiter and HR "professional" (I use that term very loosely for obvious reasons), I can honestly say that you nailed it. Most big companies looking for mid to high level white collar "talent" will almost always take the perceived safest route by hiring those who look the best ON PAPER and in a suit and lack any real interviewing skills to find the real stars. What's almost comical is that companies almost always want to see the most linear resume possible because they want to see "job stability" (e.g. a CYA document in case the person fails in that job) when in many cases nobody cares about the long range view of the company anyway. My question was why should the candidate or employee care about the long range view if the employer clearly doesn't?

Ishmael:

Manwhich another on point comment. Sometimes either interviewing for a job or consulting with a CEO it starts getting to the absurd. I see all the time the requirement for stability in a persons background. Hello, where have they been the last 15 years. In addition, the higher up you go the more likely you will be terminated sometime and that is especially true if you are hired from outside the orgnanization. Companies want loyalty from an employee but offer none in return.

The average tenure for a CFO anymore is something around 18 months. I have been a first party participant (more than once) where I went through an endless recruiting process for a company (lasting more than 6 months) they final hire some one and that person is with the company for 3 months and then resigns (of course we all know it is through mutual agreement).

Ishmael:

Birch:

The real problem has become and maybe this is what you are referring to is the "Crony Capitalism." We have lost control of our financial situation. Basically, PE is not the gods of the universe that everyone thinks they are. However, every bankers secret wet dream is to become a private equity guy. Accordingly, bankers make ridiculous loans to PE because if you say no to them then you can not play in their sand box any more. Since the govt will not let the banks go bankrupt like they should then this charade continues inslaving everyone.

This country as well as many others has a large percentage of its assets tied up in over priced deals that the bankers/governments will not let collapse while the blood sucking vampires suck the life out of the assets.

On the other hand, govt is not the answer. Govt is too large and accomplishes too little.

kevin de bruxelles:

The harsh reality is that, at least in the first few rounds, companies kick to the curb their weakest links and perceived slackers. Therefore when it comes time to hire again, they are loath to go sloppy seconds on what they perceive to be some other company's rejects. They would much rather hire someone who survived the layoffs working in a similar position in a similar company. Of course the hiring company is going to have to pay for this privilege. Although not totally reliable, the fact that someone survived the layoffs provides a form social proof for their workplace abilities.

On the macro level, labor has been under attack for thirty years by off shoring and third world immigration. It is no surprise that since the working classes have been severely undermined that the middle classes would start to feel some pressure. By mass immigration and off-shoring are strongly supported by both parties. Only when the pain gets strong enough will enough people rebel and these two policies will be overturned. We still have a few years to go before this happens.

davver:

Let's say I run a factory. I produce cars and it requires very skilled work. Skilled welding, skilled machinists. Now I introduce some robotic welders and an assembly line system. The plants productivity improves and the jobs actually get easier. They require less skill, in fact I've simplified each task to something any idiot can do. Would wages go up or down? Are the workers really contributing to that increase in productivity or is it the machines and methods I created?

Lets say you think laying off or cutting the wages of my existing workers is wrong. What happens when a new entrant into the business employs a smaller workforce and lower wages, which they can do using the same technology? The new workers don't feel like they were cut down in any way, they are just happy to have a job. Before they couldn't get a job at the old plant because they lacked the skill, but now they can work in the new plant because the work is genuinely easier. Won't I go out of business?

Escariot:

I am 54 and have a ton of peers who are former white collar workers and professionals (project managers, architects, lighting designers, wholesalers and sales reps for industrial and construction materials and equipment) now out of work going on three years. Now I say out of work, I mean out of our trained and experienced fields.

We now work two or three gigs (waiting tables, mowing lawns, doing free lance, working in tourism, truck driving, moving company and fedex ups workers) and work HARD, for much much less than we did, and we are seeing the few jobs that are coming back on line going to younger workers. It is just the reality. And for most of us the descent has not been graceful, so our credit is a wreck, which also breeds a whole other level of issues as now it is common for the credit record to be a deal breaker for employment, housing, etc.

Strangely I don't sense a lot of anger or bitterness as much as humility. And gratitude for ANY work that comes our way. Health insurance? Retirement accounts? not so much.

Mickey Marzick:

Yves and I have disagreed on how extensive the postwar "pact" between management and labor was in this country. But if you drew a line from say, Trenton-Patterson, NJ to Cincinatti, OH to Minneapolis, MN, north and east of it where blue collar manufacturing in steel, rubber, auto, machinery, etc., predominated, this "pact" may have existed but ONLY because physical plant and production were concentrated there and workers could STOP production.

Outside of these heavy industrial pockets, unions were not always viewed favorably. As one moved into the rural hinterlands surrounding them there was jealously and/or outright hostility. Elsewhere, especially in the South "unions" were the exception not the rule. The differences between NE Ohio before 1975 – line from Youngstown to Toledo – and the rest of the state exemplified this pattern. Even today, the NE counties of Ohio are traditional Democratic strongholds with the rest of the state largely Republican. And I suspect this pattern existed elsewhere. But it is changing too

In any case, the demonization of the unemployed is just one notch above the vicious demonization of the poor that has always existed in this country. It's a constant reminder for those still working that you could be next – cast out into the darkness – because you "failed" or worse yet, SINNED. This internalization of the "inner cop" reinforces the dominant ideology in two ways. First, it makes any resistance by individuals still employed less likely. Second, it pits those still working against those who aren't, both of which work against the formation of any significant class consciousness amongst working people. The "oppressed" very often internalize the value system of the oppressor.

As a nation of immigrants ETHNICITY may have more explanatory power than CLASS. For increasingly, it would appear that the dominant ethnic group – suburban, white, European Americans – have thrown their lot in with corporate America. Scared of the prospect of downward social mobility and constantly reminded of URBAN America – the other America – this group is trapped with nowhere to else to go.

It's the divide and conquer strategy employed by ruling elites in this country since its founding [Federalist #10] with the Know Nothings, blaming the Irish [NINA - no Irish need apply] and playing off each successive wave of immigrants against the next. Only when the forces of production became concentrated in the urban industrial enclaves of the North was this strategy less effective. And even then internal immigration by Blacks to the North in search of employment blunted the formation of class consciousness among white ethnic industrial workers.

Wherever the postwar "pact of domination" between unions and management held sway, once physical plant was relocated elsewhere [SOUTH] and eventually offshored, unemployment began to trend upwards. First it was the "rustbelt" now it's a nationwide phenomenon. Needless to say, the "pact" between labor and management has been consigned to the dustbin of history.

White, suburban America has hitched its wagon to that of the corporate horse. Demonization of the unemployed coupled with demonization of the poor only serve to terrorize this ethnic group into acquiescence. And as the workplace becomes a multicultural matrix this ethnic group is constantly reminded of its perilous state. Until this increasingly atomized ethnic group breaks with corporate America once and for all, it's unlikely that the most debilitating scourge of all working people – UNEMPLOYMENT – will be addressed.

Make no mistake about it, involuntary UNEMPLOYMENT/UNDEREMPLYEMT is a form of terrorism and its demonization is terrorism in action. This "quiet violence" is psychological and the intimidation wrought by unemployment and/or the threat of it is intended to dehumanize individuals subjected to it. Much like spousal abuse, the emotional and psychological effects are experienced way before any physical violence. It's the inner cop that makes overt repression unnecessary. We terrorize ourselves into submission without even knowing it because we accept it or come to tolerate it. So long as we accept "unemployment" as an inevitable consequence of progress, as something unfortunate but inevitable, we will continue to travel down the road to serfdom where ARBEIT MACHT FREI!

FULL and GAINFUL EMPLOYMENT are the ultimate labor power.

Eric:

It's delicate since direct age discrimination is illegal, but when circumstances permit separating older workers they have a very tough time getting back into the workforce in an era of high health care inflation. Older folks consume more health care and if you are hiring from a huge surplus of available workers it isn't hard to steer around the more experienced. And nobody gets younger, so when you don't get job A and go for job B 2 weeks later you, you're older still!

James:

Yves said- "This overly narrow hiring spec then leads to absurd, widespread complaint that companies can't find people with the right skills"

In the IT job markets such postings are often called purple squirrels. The HR departments require the applicant to be expert in a dozen programming languages. This is an excuse to hire a foreigner on a temp h1-b or other visa.

Most people aren't aware that this model dominates the sciences. Politicians scream we have a shortage of scientists, yet it seems we only have a shortage of cheap easily exploitable labor. The economist recently pointed out the glut of scientists that currently exists in the USA.

http://www.economist.com/node/17723223

This understates the problem. The majority of PhD recipients wander through years of postdocs only to end up eventually changing fields. My observation is that the top ten schools in biochem/chemistry/physics/ biology produce enough scientists to satisfy the national demand.

The exemption from h1-b visa caps for academic institutions exacerbates the problem, providing academics with almost unlimited access to labor.

The pharmaceutical sector has been decimated over the last ten years with tens of thousands of scientists/ factory workers looking for re-training in a dwindling pool of jobs (most of which will deem you overqualified.)

http://pipeline.corante.com/archives/2011/03/03/a_postdocs_lament.php

Abe, NYC:

I wonder how the demonization of the unemployed can be so strong even in the face of close to 10% unemployment/20% underemployment. It's easy and tempting to demonize an abstract young buck or Cadillac-driving welfare queen, but when a family member or a close friend loses a job, or your kids are stuck at your place because they can't find one, shouldn't that alter your perceptions? Of course the tendency will be to blame it all on the government, but there has to be a limit to that in hard-hit places like Ohio, Colorado, or Arizona. And yet, the dynamics aren't changing or even getting worse. Maybe Wisconsin marks a turning point, I certainly hope it does

damien:

It's more than just stupid recruiting, this stigma. Having got out when the getting was good, years ago, I know that any corporate functionary would be insane to hire me now. Socialization wears off, the deformation process reverses, and the ritual and shibboleths become a joke. Even before I bailed I became a huge pain in the ass as economic exigency receded, every bosses nightmare. I suffered fools less gladly and did the right thing out of sheer anarchic malice.

You really can't maintain corporate culture without existential fear – not just, "Uh oh, I'm gonna get fired," fear, but a visceral feeling that you do not exist without a job. In properly indoctrinated workers that feeling is divorced from economic necessity. So anyone who's survived outside a while is bound to be suspect. That's a sign of economic security, and security of any sort undermines social control.

youniquelikeme:

You hit the proverbial nail with that reply. (Although, sorry, doing the right thing should not be done out of malice) The real fit has to be in the corporate yes-man culture (malleable ass kisser) to be suited for any executive position and beyond that it is the willingness to be manipulated and drained to be able to keep a job in lower echelon.

This is the new age of evolution in the work place. The class wars will make it more of an eventual revolution, but it is coming. The unemployment rate (the actual one, not the Government one) globalization and off shore hiring are not sustainable for much longer.

Something has to give, but it is more likely to snap then to come easily. People who are made to be repressed and down and out eventually find the courage to fight back and by then, it is usually not with words.

down and out in Slicon Valley:

This is the response I got from a recruiter:

"I'm going to be overly honest with you. My firm doesn't allow me to submit any candidate who hasn't worked in 6-12 months or more. Recruiting brokers are probably all similar in that way . You are going to have to go through a connection/relationship you have with a colleague, co-worker, past manager or friend to get your next job .that's my advice for you. Best of luck "

I'm 56 years old with MSEE. Gained 20+ years of experience at the best of the best (TRW, Nortel, Microsoft), have been issued a patent. Where do I sign up to gain skills required to find a job now?

Litton Graft :

"Best of the Best?" I know you're down now, but looking back at these Gov'mint contractors you've enjoyed the best socialism money can by.

Nortel/TRW bills/(ed) the Guvmint at 2x, 3x your salary, you can ride this for decades. At the same time the Inc is attached to the Guvmint ATM localities/counties are giving them a red carpet of total freedom from taxation. Double subsidies.

I've worked many years at the big boy bandits, and there is no delusion in my mind that almost anyone, can do what I do and get paid 100K+. I've never understood the mindset of some folks who work in the Wermacht Inc: "Well, someone has to do this work" or worse "What we do, no one else can do" The reason no one else "can do it" is that they are not allowed to. So, we steal from the poor to build fighter jets, write code or network an agency.

Hosswire:

I used to work as a recruiter and can tell you that I only parroted the things my clients told me. I wanted to get you hired, because I was lazy and didn't want to have to talk to someone else next.

So what do you do? To place you that recruiter needs to see on a piece of paper that you are currently working? Maybe get an email or phone call from someone who will vouch for your employment history. That should not be that hard to make happen.

Francois T :

The "bizarre way that companies now spec jobs" is essentially a coded way for mediocre managers to say without saying so explicitly that "we can afford to be extremely picky, and by God, we shall do so no matter what, because we can!"

Of course, when comes the time to hire back because, oh disaster! business is picking up again, (I'm barely caricaturing here; some managers become despondent when they realize that workers regain a bit of the higher ground; loss of power does that to lesser beings) the same idiots who designed those "overly narrow hiring spec then leads to absurd, widespread complaint that companies can't find people with the right skills" are thrown into a tailspin of despair and misery. Instead of figuring out something as simple as "if demand is better, so will our business", they can't see anything else than the (eeeek!) cost of hiring workers. Unable to break their mental corset of penny-pincher, they fail to realize that lack of qualified workers will prevent them to execute well to begin with.

And guess what: qualified workers cost money, qualified workers urgently needed cost much more.

This managerial attitude must be another factor that explain why entrepreneurship and the formation of small businesses is on the decline in the US (contrary to the confabulations of the US officialdumb and the chattering class) while rising in Europe and India/China.

Kit:

If you are 55-60, worked as a professional (i.e., engineering say) and are now unemployed you are dead meat. Sorry to be blunt but thats the way it is in the US today. Let me repeat that : Dead Meat.

I was terminated at age 59, found absolutely NOTHING even though my qualifications were outstanding. Fortunately, my company had an old style pension plan which I was able to qualify for (at age 62 without reduced benefits). So for the next 2+ years my wife and I survived on unemployment insurance, severance, accumulated vacation pay and odd jobs. Not nice – actually, a living hell.

At age 62, I applied for my pension, early social security, sold our old house (at a good profit) just before the RE crash, moved back to our home state. Then my wife qualified for social security also. Our total income is now well above the US median.

Today, someone looking at us would think we were the typical corporate retiree. We surely don't let on any differently but the experience (to get to this point) almost killed us.

I sympathize very strongly with the millions caught in this unemployment death spiral. I wish I had an answer but I just don't. We were very lucky to survive intact.

Ming:

Thank you Yves for your excellent post, and for bringing to light this crucial issue.

Thank you to all the bloggers, who add to the richness of the this discussion.

I wonder if you could comment on this Yves, and correct me if I am wrong I believe that the power of labor was sapped by the massive available supply of global labor. The favorable economic policies enacted by China (both official and unofficial), and trade negotiations between the US government and the Chinese government were critical to creating the massive supply of labor.

Thank you. No rush of course.

Nexus:

There are some odd comments and notions here that are used to support dogma and positions of prejudice. The world can be viewed in a number of ways. Firstly from a highly individualised and personal perspective – that is what has happened to me and here are my experiences. Or alternatively the world can be viewed from a broader societal perspective.

In the context of labour there has always been an unequal confrontation between those that control capital and those that offer their labour, contrary to some of the views exposed here – Marx was a first and foremost a political economist. The political economist seeks to understand the interplay of production, supply, the state and institutions like the media. Modern day economics branched off from political economy and has little value in explaining the real world as the complexity of the world has been reduced to a simplistic rationalistic model of human behaviour underpinned by other equally simplistic notions of 'supply and demand', which are in turn represented by mathematical models, which in themselves are complex but merely represent what is a simplistic view of the way the world operates. This dogmatic thinking has avoided the need to create an underpinning epistemology. This in turn underpins the notion of free choice and individualism which in itself is an illusion as it ignores the operation of the modern state and the exercise of power and influence within society.

It was stated in one of the comments that the use of capital (machines, robotics, CAD design, etc.) de-skills. This is hardly the case as skills rise for those that remain and support highly automated/continuous production factories. This is symptomatic of the owners of capital wanting to extract the maximum value for labour and this is done via the substitution of labour for capital making the labour that remains to run factories highly productive thus eliminating low skill jobs that have been picked up via services (people move into non productive low skilled occupations warehousing and retail distribution, fast food outlets, etc). Of course the worker does not realise the additional value of his or her labour as this is expropriated for the shareholders (including management as shareholders).

The issue of the US is that since the end of WW2 it is not the industrialists that have called the shots and made investments it is the financial calculus of the investment banker (Finance Capital). Other comments have tried to ignore the existence of the elites in society – I would suggest that you read C.W.Mills – The Power Elites as an analysis of how power is exercised in the US – it is not through the will of the people.

For Finance capital investments are not made on the basis of value add, or contribution through product innovation and the exchange of goods but on basis of the lowest cost inputs. Consequently, the 'elites' that make investment decisions, as they control all forms of capital seek to gain access to the cheapest cost inputs. The reality is that the US worker (a pool of 150m) is now part of a global labour pool of a couple of billion that now includes India and China. This means that the elites, US transnational corporations for instance, can access both cheaper labour pools, relocate capital and avoid worker protection (health and safety is not a concern). The strategies of moving factories via off-shoring (over 40,000 US factories closed or relocated) and out-sourcing/in-sourcing labour is also a representations of this.

The consequence for the US is that the need for domestic labour has diminished and been substituted by cheap labour to extract the arbitrage between US labour rates and those of Chinese and Indians. Ironically, in this context capital has become too successful as the mode of consumption in the US shifted from workers that were notionally the people that created the goods, earned wages and then purchased the goods they created to a new model where the worker was substituted by the consumer underpinned by cheap debt and low cost imports – it is illustrative to note that real wages have not increased in the US since the early 1970's while at the same time debt has steadily increased to underpin the illusion of wealth – the 'borrow today and pay tomorrow' mode of capitalist operation. This model of operation is now broken. The labour force is now being demonized as there is a now surplus of labour and a need to drive down labour rates through changes in legislation and austerity programs to meet those of the emerging Chinese and Indian middle class so workers rights need to be broken. Once this is done a process of in-source may take place as US labour costs will be on par with overseas labour pools.

It is ironic that during the Regan administration a number of strategic thinkers saw the threat from emerging economies and the danger of Finance Capital and created 'Project Socrates' that would have sought to re-orientate the US economy from one that was based on the rationale of Finance Capital to one that focused in productive innovation which entailed an alignment of capital investment, research and training to product innovative goods. Of course this was ignored and the rest is history. The race to the lowest input cost is ultimately self defeating as it is clear that the economy de-industrialises through labour and capital changes and living standards collapse. The elites – bankers, US transnational corporations, media, industrial military complex and the politicians don't care as they make money either way and this way you get other people overseas to work cheap for you.

S P:

Neoliberal orthodoxy treats unemployment as well as wage supression as a necessary means to fight "inflation." If there was too much power in the hands of organized labor, inflationary pressures would spiral out of control as supply of goods cannot keep up with demand.

It also treats the printing press as a necessary means to fight "deflation."

So our present scenario: widespread unemployment along with QE to infinity, food stamps for all, is exactly what you'd expect.

The problem with this orthodoxy is that it assumes unlimited growth on a planet with finite resources, particularly oil and energy. Growth is not going to solve unemployment or wages, because we are bumping up against limits to growth.

There are only two solutions. One is tax the rich and capital gains, slow growth, and reinvest the surplus into jobs/skills programs, mostly to maintain existing infrastructure or build new energy infrastructure. Even liberals like Krugman skirt around this, because they aren't willing to accept that we have the reached the end of growth and we need radical redistribution measures.

The other solution is genuine classical liberalism / libertarianism, along the lines of Austrian thought. Return to sound money, and let the deflation naturally take care of the imbalances. Yes, it would be wrenching, but it would likely be wrenching for everybody, making it fair in a universal sense.

Neither of these options is palatable to the elite classes, the financiers of Wall Street, or the leeches and bureaucrats of D.C.

So this whole experiment called America will fail.

[Nov 22, 2017] Unemployment is Miserable and Doesn't Spawn an Upsurge in Personal Creativity

Notable quotes:
"... By Bill Mitchell, Professor in Economics and Director of the Centre of Full Employment and Equity at the University of Newcastle, NSW, Australia. Originally published at billy blog ..."
"... The overwhelming importance of having a job for happiness is evident throughout the analysis, and holds across all of the world's regions. ..."
"... The pattern of human concerns ..."
"... The pattern of human concerns ..."
"... Journal of Happiness Studies ..."
"... The results show the differences between having a job and being unemployed are "very large indeed" on the three well-being measures (life evaluation, positive and negative affective states). ..."
"... Psychological Bulletin ..."
"... 1. "unemployment tends to make people more emotionally unstable than they were previous to unemployment". ..."
"... 2. The unemployed experience feelings of "personal threat"; "fear"; "sense of proportion is shattered"; loss of "common sense of values"; "prestige lost in own eyes and as he imagines, in the eyes of his fellow men"; "feelings of inferiority"; loss of "self-confidence" and a general loss of "morale". ..."
"... in the light of the structure of our society where the job one holds is the prime indicator of status and prestige. ..."
"... Psychological Bulletin ..."
"... Related studies found that the "unemployed become so apathetic that they rarely read anything". Other activities, such as attending movies etc were seen as being motivated by the need to "kill time" – "a minimal indication of the increased desire for such attendance". ..."
"... In spite of hopeless attempts the unemployed continually look for work, often going back again and again to their last place of work. Other writers reiterate this point. ..."
"... The non-pecuniary effects of not having a job are significant in terms of lost status, social alienation, abandonment of daily structure etc, and that has not changed much over history. ..."
"... I think what is missing from this article is the term "identity." If you meet new people, often the conversation starts with what you do for a living. Your identity, in part, is what you do. You can call yourself a plumber, a writer, a banker, a consultant, a reporter but the point is this is part of your identity. When you lose your job long term, your identity here loses one of its main anchor points. ..."
"... This is a crucial point that UBI advocates often ignore. There is a deeply entrenched cultural bias towards associating our work status with our general status and prestige and feelings of these standings. ..."
"... When unemployed, the stress of worry about money may suppress the creative juices. Speaking from experience. People may well 'keep looking for jobs' because they know ultimately they need a job with steady income. The great experience of some freelancers notwithstanding, not all are cut out for it. ..."
"... When considering the world's population as a whole, people with a job evaluate the quality of their lives much more favorably than those who are unemployed. ..."
"... Data like that provided by Mitchell is important to demolishing the horrid "economic anxiety" frame much beloved by liberals, especially wonkish Democrats.* It's not (a) just feelings , to be solved by scented candles or training (the liberal version of rugged individualism) and (b) the effects are real and measurable. It's not surprising, when you think about it, that the working class is about work . ..."
Nov 22, 2017 | www.nakedcapitalism.com

Posted on November 21, 2017 by Yves Smith Yves here. Reader UserFriendly sent this post with the message, "I can confirm this." I can too. And before you try to attribute our reactions to being Americans, note that the study very clearly points out that its finding have been confirmed in "all of the world's regions".

By Bill Mitchell, Professor in Economics and Director of the Centre of Full Employment and Equity at the University of Newcastle, NSW, Australia. Originally published at billy blog

Here is a summary of another interesting study I read last week (published March 30, 2017) – Happiness at Work – from academic researchers Jan‐Emmanuel De Neve and George Ward. It explores the relationship between happiness and labour force status, including whether an individual is employed or not and the types of jobs they are doing. The results reinforce a long literature, which emphatically concludes that people are devastated when they lose their jobs and do not adapt to unemployment as its duration increases. The unemployed are miserable and remain so even as they become entrenched in long-term unemployment. Further, they do not seem to sense (or exploit) a freedom to release some inner sense of creativity and purpose. The overwhelming proportion continually seek work – and relate their social status and life happiness to gaining a job, rather than living without a job on income support. The overwhelming conclusion is that "work makes up such an important part of our lives" and that result is robust across different countries and cultures. Being employed leads to much higher evaluations of the quality of life relative to being unemployed. And, nothing much has changed in this regard over the last 80 or so years. These results were well-known in the 1930s, for example. They have a strong bearing on the debate between income guarantees versus employment guarantees. The UBI proponents have produced no robust literature to refute these long-held findings.

While the 'Happiness Study' notes that "the relationship between happiness and employment is a complex and dynamic interaction that runs in both directions" the authors are unequivocal:

The overwhelming importance of having a job for happiness is evident throughout the analysis, and holds across all of the world's regions. When considering the world's population as a whole, people with a job evaluate the quality of their lives much more favorably than those who are unemployed. The importance of having a job extends far beyond the salary attached to it, with non-pecuniary aspects of employment such as social status, social relations, daily structure, and goals all exerting a strong influence on people's happiness.

And, the inverse:

The importance of employment for people's subjective wellbeing shines a spotlight on the misery and unhappiness associated with being unemployed.

There is a burgeoning literature on 'happiness', which the authors aim to contribute to.

They define happiness as "subjective well-being", which is "measured along multiple dimensions":

life evaluation (by way of the Cantril "ladder of life"), positive and negative affect to measure respondents' experienced positive and negative wellbeing, as well as the more domain-specific items of job satisfaction and employee engagement. We find that these diverse measures of subjective wellbeing correlate strongly with each other

Cantril's 'Ladder of Life Scale' (or "Cantril Ladder") is used by polling organisations to assess well-being. It was developed by social researcher Hadley Cantril (1965) and documented in his book The pattern of human concerns .

You can learn more about the use of the 'Cantril Ladder' HERE .

As we read, the "Cantril Self-Anchoring Scale consists of the following":

Please imagine a ladder with steps numbered from zero at the bottom to 10 at the top. The top of the ladder represents the best possible life for you and the bottom of the ladder represents the worst possible life for you. On which step of the ladder would you say you personally feel you stand at this time? (ladder-present) On which step do you think you will stand about five years from now? (ladder-future)

[Reference: Cantril, H. (1965) The pattern of human concerns , New Brunswick, Rutgers University Press.]

Christian Bjørnskov's 2010 article – How Comparable are the Gallup World Poll Life Satisfaction Data? – also describes how it works.

[Reference: Bjørnskov, C. (2010) 'How Comparable are the Gallup World Poll Life Satisfaction Data?', Journal of Happiness Studies , 11 (1), 41-60.]

The Cantril scale is usually reported as values between 0 and 10.

The authors in the happiness study use poll data from 150 nations which they say "is representative of 98% of the world's population". This survey data is available on a mostly annual basis since 2006.

The following graph (Figure 1 from the Study) shows "the self-reported wellbeing of individuals around the world according to whether or not they are employed."

The "bars measure the subjective wellbeing of individuals of working age" by employment status .

The results show the differences between having a job and being unemployed are "very large indeed" on the three well-being measures (life evaluation, positive and negative affective states).

People employed "evaluate the quality of their lives around 0.6 points higher on average as compared to the unemployed on a scale from 0 to 10."

The authors also conduct more sophisticated (and searching) statistical analysis (multivariate regression) which control for a range of characteristics (gender, age, education, marital status, composition of household) as well as to "account for the many political, economic, and cultural differences between countries as well as year-to-year variation".

The conclusion they reach is simple:

the unemployed evaluate the overall state of their lives less highly on the Cantril ladder and experience more negative emotions in their day-to-day lives as well as fewer positive ones. These are among the most widely accepted and replicated findings in the science of happiness Here, income is being held constant along with a number of other relevant covariates, showing that these unemployment effects go well beyond the income loss associated with losing one's job.

These results are not surprising. The earliest study of this sort of outcome was from the famous study published by Philip Eisenberg and Paul Lazersfeld in 1938. [Reference: Eisenberg, P. and Lazarsfeld, P. (1938) 'The psychological effects of unemployment', Psychological Bulletin , 35(6), 358-390.]

They explore four dimensions of unemployment:

I. The Effects of Unemployment on Personality.

II. Socio-Political Attitudes Affected by Unemployment.

III. Differing Attitudes Produced by Unemployment and Related Factors.

IV. The Effects of Unemployment on Children and Youth.

On the first dimension, they conclude that:

1. "unemployment tends to make people more emotionally unstable than they were previous to unemployment".

2. The unemployed experience feelings of "personal threat"; "fear"; "sense of proportion is shattered"; loss of "common sense of values"; "prestige lost in own eyes and as he imagines, in the eyes of his fellow men"; "feelings of inferiority"; loss of "self-confidence" and a general loss of "morale".

Devastation, in other words. They were not surprised because they note that:

in the light of the structure of our society where the job one holds is the prime indicator of status and prestige.

This is a crucial point that UBI advocates often ignore. There is a deeply entrenched cultural bias towards associating our work status with our general status and prestige and feelings of these standings. That hasn't changed since Eisenberg and Lazersfeld wrote up the findings of their study in 1938.

It might change over time but that will take a long process of re-education and cultural shift. Trying to dump a set of new cultural values that only a small minority might currently hold to onto a society that clearly still values work is only going to create major social tensions. Eisenberg and Lazarsfeld also considered an earlier 1937 study by Cantril who explored whether "the unemployed tend to evolve more imaginative schemes than the employed".

[Reference: Cantril, H. (1934) 'The Social Psychology of Everyday Life', Psychological Bulletin , 31, 297-330.]

The proposition was (is) that once unemployed, do people then explore new options that were not possible while working, which deliver them with the satisfaction that they lose when they become jobless. The specific question asked in the research was: "Have there been any changes of interests and habits among the unemployed?" Related studies found that the "unemployed become so apathetic that they rarely read anything". Other activities, such as attending movies etc were seen as being motivated by the need to "kill time" – "a minimal indication of the increased desire for such attendance".

On the third dimension, Eisenberg and Lazersfeld examine the questions – "Are there unemployed who don't want to work? Is the relief situation likely to increase this number?", which are still a central issue today – the bludger being subsidized by income support.

They concluded that:

the number is few. In spite of hopeless attempts the unemployed continually look for work, often going back again and again to their last place of work. Other writers reiterate this point.

So for decades, researchers in this area, as opposed to bloggers who wax lyrical on their own opinions, have known that the importance of work in our lives goes well beyond the income we earn. The non-pecuniary effects of not having a job are significant in terms of lost status, social alienation, abandonment of daily structure etc, and that has not changed much over history. The happiness paper did explore "how short-lived is the misery associated with being out of work" in the current cultural settings.

The proposition examined was that:

If the pain is only fleeting and people quickly get used to being unemployed, then we might see joblessness as less of a key public policy priority in terms of happiness.

They conclude that:

a number of studies have demonstrated that people do not adapt much, if at all, to being unemployed there is a large initial shock to becoming unemployed, and then as people stay unemployed over time their levels of life satisfaction remain low . several studies have shown that even once a person becomes re-employed, the prior experience of unemployment leaves a mark on his or her happiness.

So there is no sudden or even medium-term realisation that being jobless endows the individual with a new sense of freedom to become their creative selves, freed from the yoke of work. To bloom into musicians, artists, or whatever.

The reality is that there is an on-going malaise – a deeply entrenched sense of failure is overwhelming, which stifles happiness and creativity, even after the individual is able to return to work.

This negativity, borne heavily by the individual, however, also impacts on society in general.

The paper recognises that:

A further canonical finding in the literature on unemployment and subjective wellbeing is that there are so-called "spillover" effects.

High levels of unemployment "increase fear and heighten the sense of job insecurity". Who will lose their job next type questions?

The researchers found in their data that the higher is the unemployment rate the greater the anxiety among those who remain employed.

Conclusion

The overwhelming conclusion is that "work makes up such an important part of our lives" and that result is robust across different countries and cultures.

Being employed leads to much higher evaluations of the quality of life relative to being unemployed.

The unemployed are miserable and remain so even as they become entrenched in long-term unemployment. They do not seem to sense (or exploit) a freedom to release some inner sense of creativity and purpose.

The overwhelming proportion continually seek work – and relate their social status and life happiness to gaining a job, rather than living without a job on income support.

Modern Monetary Theory (MMT) allows us to understand that it is the government that chooses the unemployment rate – it is a political choice.

For currency-issuing governments it means their deficits are too low relative to the spending and saving decisions of the non-government sector.

For Eurozone-type nations, it means that in surrendering their currencies and adopting a foreign currency, they are unable to guarantee sufficient work in the face of negative shifts in non-government spending. Again, a political choice.

The Job Guarantee can be used as a vehicle to not only ensure their are sufficient jobs available at all times but also to start a process of wiping out the worst jobs in the non-government sector.

That can be done by using the JG wage to ensure low-paid private employers have to restructure their workplaces and pay higher wages and achieve higher productivity in order to attract labour from the Job Guarantee pool.

The Series So Far

This is a further part of a series I am writing as background to my next book with Joan Muysken analysing the Future of Work . More instalments will come as the research process unfolds.

The series so far:

  1. When Austrians ate dogs .
  2. Employment as a human right .
  3. The rise of the "private government .
  4. The evolution of full employment legislation in the US .
  5. Automation and full employment – back to the 1960s .
  6. Countering the march of the robots narrative .
  7. Unemployment is miserable and does not spawn an upsurge in personal creativity .

The blogs in these series should be considered working notes rather than self-contained topics. Ultimately, they will be edited into the final manuscript of my next book due in 2018. The book will likely be published by Edward Elgar (UK).

That is enough for today!

divadab , November 21, 2017 at 6:11 am

Perhaps I'm utterly depressed but I haven't had a job job for over 5 years. Plenty of work, however, more than I can handle and it requires priorisation. But I am deliberately not part of the organized herd. I stay away from big cities – it's scary how managed the herd is in large groups – and I suppose that unemployment for a herd animal is rather distressing as it is effectively being kicked out of the herd.

Anyway my advice, worth what you pay for it but let he who has ears, etc. – is to go local, very local, grow your own food, be part of a community, manage your own work, and renounce the energy feast herd dynamics. "Unemployment", like "recession", is a mechanism of control. Not very practical advice for most, I realize, trapped in the herd as they are in car payments and mortgages, but perhaps aspirational?

The Rev Kev , November 21, 2017 at 6:35 am

I think what is missing from this article is the term "identity." If you meet new people, often the conversation starts with what you do for a living. Your identity, in part, is what you do. You can call yourself a plumber, a writer, a banker, a consultant, a reporter but the point is this is part of your identity. When you lose your job long term, your identity here loses one of its main anchor points.

Worse, there is a deliberate stigma attached with being long term unemployed. In that article you have seen the word bludger being used. In parts of the US I have read of the shame of 'living off the county'. And yes, I have been there, seen that, and got the t-shirt. It's going to be interesting as mechanization and computers turn large portions of the population from workers to 'gig' workers. Expect mass demoralization.

nonclassical , November 21, 2017 at 10:24 am

yes the lives many of us have lived, no longer exist though we appear not notice, as we "can" live in many of same "ways" ..rather well known psychologist defined some 40 years ago, best to "drop through cracks"

jrs , November 21, 2017 at 12:13 pm

Well, you also lose money, maybe you become homeless etc. as you have nowhere else to turn (if there are kids involved to support it gets even scarier though there are some programs). Or maybe you become dependent on another person(s) to support you which is of course degrading as you know you must rely on them to live, whether it's a spouse or lover when you want to work and bring in money, or mom and dads basement, or the kindest friend ever who lets you sleep on their couch. I mean these are the things that really matter.

Privileged people whose main worry in unemployment would be losing identity, wow out of touch much? Who cares about some identity for parties, but the ability to have a stable decent life (gig work hardly counts) is what is needed.

sgt_doom , November 21, 2017 at 2:20 pm

I believe your comment sums up the situation the best -- and most realistically.

jgordon , November 21, 2017 at 7:08 pm

I normally wouldn't comment like this, but you have brought up some extremely important points about identity that I would like to address.

Recently I had the most intense mushroom experience of my entire life–so intense that my identity had been completely stripped and I was left in a formless state, at the level of seeing my bare, unvarnished animal neural circuitry in operation. Suddenly with a flash of inspiration I realized that the identity of everyone, all of us, is inextricably tied up in what we do and what we do for other people.

Following from that, I understood that if we passively rely on others for survival, whether it be relying on friends, family, or government, then we do not have an identity or reason for existing. And the inner self, the animal core of who we are, will realise this lack of identity (even if the concious mind denies it), and will continually generate feelings of profound depression and intense nihilism that will inevitably destroy us if the root cause is not addressed.

Before this experience I was somewhat ambivalent about my politics, but immediately after I knew that the political right was correct on everything important, from attitudes on sex to economic philosophy. People need a core of cultural stability and hard work to grow and become actualized. The alternative is rudderless dissatisfaction and envy that leads nowhere.

On the topic of giving "out of kindnes and goodwill", giving without demanding anything in return is a form of abuse, as it deprives those who receive our feel-good generosity the motivation to form a coherent identity. If the parents of a basement-dweller were truly good people, instead of supporting said dweller they'd drag her out by the ear and make her grow food in the yard or some such. Likewise, those who have supported you without also giving concrete demands and expecations in return have been unkind, and for your own good I hope that you will immediately remove yourself from their support. On the other hand, if you have been thoughtlessly giving because it warms the cockles of your heart, then stop it now. You are ruining other people this way, and if your voting habits are informed by this kind of malevolence I'd encourage you to change those as well.

Anyway the original poster is right about everything. Working and having a purpose in life is an entirely different animal from making money and being "successful" in the government-sponsored commercial economy. Society and government deliberately try to conflate the two for various reasons, primarily graft of labor and genius, but that is only a deliberate mis-framing that needlessly harms people when the mainstream economic system is in catastrophic decline, as ours is today. You should try to clear up this misconception within yourself as a way of getting better.

Well, I hope this message can give you a few different thoughts and help you find your way out of the existential angst you're caught in. Don't wallow in helplessness. Think of something useful to do, anything, whether it earns you money or not, and go out and start doing it. You'll be surprised at how much better you feel about yourself in no time.

skippy , November 22, 2017 at 12:45 am

The problem is you said – I – had an extreme experience [burning bush], the truth was reviled to – I – and I alone during this extreme chemically altered state. Which by the way just happens to conform to a heap of environmental biases I collected. This is why sound methodology demands peer review. disheveled some people think Mister Toads Wild ride at Disneyland on psychotropics is an excellent adventure too.

Jeremy Grimm , November 21, 2017 at 12:33 pm

I think your observation about the importance of work to identity is most perceptive. This post makes too little distinction between work and a job and glosses over the place of work in defining who we are to ourselves and to others. I recall the scene in the movie "About a Boy" when the hero meets someone he cares about and she asks him what he does for a living.

I believe there's another aspect of work -- related to identity -- missing in the analysis of this post. Work can offer a sense of mission -- of acting as part of an effort toward a larger goal no individual could achieve alone. However you may regard the value in putting man on the moon there is no mistaking the sense of mission deeply felt by the engineers and technicians working on the project. What jobs today can claim service to a mission someone might value?

Henry Moon Pie , November 21, 2017 at 7:00 am

Agreed on your points. Wage slavery is nothing to aspire to. Self-determination within a context of an interdependent community is a much better way to live. We do our thing in the city, however.

ambrit , November 21, 2017 at 8:29 am

Finding that "interdependent community" is the hard part. My experience has been that this endeavour is almost chance based; Serendipity if you will.
Here Down South, the churches still seem to have a stranglehold on small and mid scale social organization. One of the big effects of 'churching' is the requirement that the individual gave up personal critical thinking. Thus, the status quo is reinforced. One big happy 'Holy Circlejerk.'

UserFriendly , November 21, 2017 at 10:10 am

from the article

This is a crucial point that UBI advocates often ignore. There is a deeply entrenched cultural bias towards associating our work status with our general status and prestige and feelings of these standings.

That hasn't changed since Eisenberg and Lazersfeld wrote up the findings of their study in 1938. It might change over time but that will take a long process of re-education and cultural shift. Trying to dump a set of new cultural values that only a small minority might currently hold to onto a society that clearly still values work is only going to create major social tensions.

FelicityT , November 21, 2017 at 3:07 pm

I would agree about the entenched cultural norms, etc. But not the pessimism and timeline for change. An individual can communicate a complex idea to millions in seconds, things move fast these days.

For me, it seems that what we (we being UBI/radical change proponents) are lacking is a compelling easily accessible story. Not just regarding UBI (as that is but one part of the trully revolutionary transformations that must occur) but encompassing everything.

We have countless think pieces, bits of academic writing, books, etc that focus on individual pieces and changes in isolation. But we've largely abandoned the all-encompassing narrative, which at their heart is precisely what religion offers and why it can be so seductive, successful, and resilient for so long.

The status quo has this type of story, it's not all that compelling but given the fact that it is the status quo and has inertia and tradition on its side (along with the news media, political, entertainment, etc) it doesn't have to be.

We need to abandon the single narrow issue activism that has become so prominent over the years and get back to engaging with issues as unseparable and intimately interconnected.

Tinkering around the edges will do nothing, a new political religion is what is required.

Yves Smith Post author , November 21, 2017 at 4:23 pm

Sorry, I disagree vehemently. Deeply held cultural attitudes are very slow to change and the study found that work being critical to happiness examined a large number of societies.

Look at feminism. I was a half-generation after the time when women were starting to get a shot at real jobs. IIRC, the first class that accepted women at Harvard Law School was in the 1950 and at Harvard Business School, 1965. And the number of first attendees was puny. The 1965 class at HBS had 10 8 women out of a graduating class of over 800; my class in 1981 had only 11% women.

In the 1980s, you saw a shift from the belief that women could do what men could do to promotion of the idea that women could/should be feminine as well as successful. This looked like seriously mixed messages, in that IMHO the earlier tendency to de-emphasize gender roles in the workplace looked like a positive development.

Women make less than 80% of what men do in the US. Even female doctors in the same specialities make 80% of their male peers.

The Speenhamland in the UK had what amounted to an income guarantee from the 1790s to 1832. Most people didn't want to be on it and preferred to work. Two generations and being on the support of local governments was still seen as carrying a stigma.

More generally, social animals have strongly ingrained tendencies to resent situations they see as unfair. Having someone who is capable of working not work elicits resentment from many, which is why most people don't want to be in that position. You aren't going to change that.

And people need a sense of purpose. There are tons of cases of rich heirs falling into drug addiction or alcoholism and despair because they have no sense of purpose in life. Work provides that, even if it's mundane work to support a family. That is one of the great dissservices the Democrats have done to the citizenry at large: sneering at ordinary work when blue-collar men were the anchors of families and able to take pride in that.

FelicityT , November 21, 2017 at 5:11 pm

So a few points.

Regarding the large number of societies, we often like to think we're more different than we actually are focusing on a few glaringly obvious differences and generalizing from there. Even going back a few hundred years when ideas travelled slower we were still (especially the "west" though the "east" wasn't all that much more different either) quite similar. So I'm less inclined to see the large number of societies as evidence.

Generally on societal changes and movements: The issue here is that the leadership has not changed, they may soften some edges here or there (only to resharpen them again when we're looking elsewhere) but their underlying ideologies are largely unchanged. A good mass of any population will go along to survive, whether they agree or not (and we find increasing evidence that many do not agree, though certainly that they do not agree on a single alternative).

It may be impossible to implement such changes in who controls the levers of power in a democratic fashion but it also may be immoral not implement such changes. Of course this is also clearly a similar path to that walked by many a demonized (in most cases rightfully so) dictator and despot. 'Tread carefully' are wise words to keep in mind.

Today we have a situation which reflects your example re: social animals and resentment of unfairness: the elite (who falls into this category is of course debatable, some individuals moreso than others). But they have intelligently, for their benefit, redirected that resentment towards those that have little. Is there really any logical connection between not engaging in wage labor (note: NOT equivalent to not working) and unfairness? Or is it a myth crafted by those who currently benefit the most?

That resentment is also precisely why it is key that a Basic income be universal with no means testing, everyone gets the same.

I think we should not extrapolate too much from the relatively small segment of the population falling into the the inherited money category. Correlation is not causation and all that.

It also seems that so often individuals jump to the hollywood crafted image of the layabout stoner sitting on the couch giggling at cartoons (or something similarly negative) when the concept of less wage labor is brought up. A reduction of wage labor does not equate to lack of work being done, it simply means doing much of that work for different reasons and rewards and incentives.

As I said in the Links thread today, we produce too much, we consume too much, we grow too much. More wage labor overall as a requirement for survival is certainly not the solution to any real problem that we face, its a massively inefficient use of resources and a massive strain on the ecosystems.

Yves Smith Post author , November 21, 2017 at 8:34 pm

I am really gobsmacked at the sense of entitlement on display here. Why are people entitled to an income with no work? Being an adult means toil: cleaning up after yourself, cleaning up after your kids if you have them, if you are subsistence farmer, tending your crops and livestock, if you are a modern society denizen, paying your bills and your taxes on time. The idea that people are entitled to a life of leisure is bollocks. Yet you promote that.

Society means we have obligations to each other. That means work. In rejecting work you reject society.

And the touting of "creativity" is a top 10% trope that Thomas Frank called out in Listen, Liberal. It's a way of devaluing what the bottom 90% do.

WobblyTelomeres , November 21, 2017 at 8:53 pm

My argument with the article is that, to me, it smacks of Taylorism. A follow-on study would analyze how many hours a laborer must work before the acquired sense of purpose and dignity and associated happiness began to decline. Would it be 30 hours a week of backbreaking labor before dignity found itself eroded? 40? 50? 60? When does the worker break? Just how far can we push the mule before it collapses?

The author alludes to this: "The overwhelming proportion relate their social status and life happiness to gaining a job"

Work equals happiness. Got it.

But, as a former robotics instructor, and as one who watches the industry (and former students), I see an automated future as damn near inevitable. Massive job displacement is coming, life as a minimum wage burger flipper will cease, with no future employment prospects short of government intervention (WPA and CCC for all, I say). I'm not a Luddite, obviously, but there are going to be a lot of people, billions, worldwide, with no prospect of employment. Saying, "You're lazy and entitled" is a bit presumptuous, Yves. Not everyone has your ability, not everyone has my ability. When the burger flipping jobs are gone, where do they go? When roombas mop the floors, where do the floor moppers go?

flora , November 21, 2017 at 9:38 pm

"WPA and CCC for all, I say. "

+1

We could use a new Civilian Conservation Corps and and a Works Progress Administration. There's lots of work that needs doing that isn't getting done by private corporations.

nihil obstet , November 21, 2017 at 10:05 pm

The outrage at non-work wealth and income would be more convincing if it were aimed also at owners of capital. About 30% of national income is passive -- interest, rents, dividends. Why are the owners of capital "entitled to an income with no work?" It's all about the morality that underlies the returns to capital while sugaring over a devaluation of labor. As a moral issue, everyone should share the returns on capital or we should tax away the interest, rents, and dividends. If it's an economic issue, berating people for their beliefs isn't a reason.

WobblyTelomeres , November 21, 2017 at 10:14 pm

Why are the owners of capital "entitled to an income with no work?"

THIS!!!! So much, THIS!!!! But, what else is a Wobbly to say, eh?

Yves Smith Post author , November 22, 2017 at 2:27 am

The overwhelming majority do work. The top 0.1% is almost entirely private equity managers who are able to classify labor income as capital gains through the carried interest loophole. Go look at the Forbes 400.

The 1% are mainly CEOs, plus elite professionals, like partners at top law and consulting firms and specialty surgeons (heart, brain, oncology). The CEOs similarly should be seen as getting labor income but have a lot of stock incentive pay (that is how they get seriously rich) which again gets capital gains treatment.

You are mistaking clever taking advantage of the tax code for where the income actually comes from. Even the kids of rich people are under pressure to act like entrepreneurs from their families and peers. Look at Paris Hilton and Ivanka as examples. They both could have sat back and enjoyed their inheritance, but both went and launched businesses. I'm not saying the kids of the rich succeed, or would have succeed to the extent they do without parental string-pulling, but the point is very few hand their fortune over to a money manager and go sailing or play the cello.

IsotopeC14 , November 22, 2017 at 2:58 am

Isn't the brother of the infamous Koch duo doing exactly that? Actually, if all the .001%ers were like him, we'd all be better off

IsotopeC14 , November 22, 2017 at 1:34 am

What's your take on Rutger Bergman's ted talk? i think most jobs aren't real jobs at all, like marketing and ceo's. why can't we do 20 hour work weeks so we don't have huge amounts of unemployment? Note, I was "unemployed" for years since "markets" decide not to fund science in the US. Yay Germany At least I was fortunate enough to not be forced to work at Walmart or McDonalds like the majority of people with absolutely no life choices. Ah the sweet coercion of capitalism.

flora , November 21, 2017 at 9:09 pm

Your hopes for a UBI are undone by some of the real world observations I've made over many years, with regard to how a guaranteed income increase, of any measure, for a whole population of an area, affects prices. Shorter: income going up means prices are raised by merchants to capture the new income.

  • Examples: A single industry town raises wages for all employees by 2% for the new calendar year. Within the first 2 weeks of the new year, all stores and restaurants and service providers in the town raise their prices by 2%. This happens every year there is a general wage increase.
  • Example: Medicare part D passes and within 2 years, Pharma now having new captive customers whose insurance will pay for drugs, raise prices higher and higher, even on generic drugs.
  • A more recent example: ACA passes with no drug price ceilings. Again, as with the passage of Medicare part D, Pharma raises drug prices to unheard of levels, even older and cheap but life saving drugs, in the knowledge that a new, large group will have insurance that will pay for the drugs – a new source of money.

Your assumption that any UBI would not be instantly captured by raised prices is naive, at best. It's also naive to assume companies would continue to pay wages at the same level to people still employed, instead of reducing wages and letting UBI fill in the rest. Some corporations already underpay their workers, then encourage the workers to apply for food stamps and other public supports to make up for the reduced wage.

The point of the paper is the importance of paid employment to a person's sense of well being. I agree with the paper.

Andrew Dodds , November 22, 2017 at 2:48 am

For the vast majority, a UBI would be income-neutral – it would have to be, to avoid massive inflation. So people would receive a UBI, but pay more tax to compensate. The effect on prices would be zero.

The advantage of a UBI is mostly felt at the lower end, where insecure/seasonal work does now pay. At the moment, a person who went from farm labourer to Christmas work to summer resort work in the UK would certainly be working hard, but also relentlessly hounded by the DWP over universal credit. A UBI would make this sort of lifestyle possible.

jsn , November 21, 2017 at 11:28 am

Davidab, Good for you, but your perspicacity is not scalable. People are social animals and your attitude toward "the herd", at least as expressed here, is that of a predator, even if your taste doesn't run toward predation. Social solutions will necessarily be scalable or they won't be solutions for long.

Lambert Strether , November 22, 2017 at 1:44 am

> the organized herd a herd animal trapped in the herd

I don't think throwing 80% to 90% of the population into the "prey" bucket is especially perspicacious politically (except, of course, for predators or parasites). I also don't think it's especially perspicacious morally. You write:

Not very practical advice for most, I realize, trapped in the herd as they are in car payments and mortgages, but perhaps aspirational?

Let me translate that: "Trapped in the herd as many are to support spouses and children." In other words, taking the cares of the world on themselves in order to care for others.

BJ , November 21, 2017 at 6:37 am

Unemployed stay at home dad here. My children are now old enough to no longer need a stay at home dad. Things I have done: picked up two musical instruments and last year dug a natural swimming pond by hand. Further, one would need to refute all the increased happiness in retirement (NBER). Why social security but not UBI? I get being part of the precariat is painful and this is a reality for most the unemployed no matter where you live in the world. A UBI is unworkable because it will never be large enough to make people's lives unprecarious. Having said that, I am almost positive if you gave every unemployed person 24 k a year and health benefits, there would be a mass of non working happy creative folks.

divadab , November 21, 2017 at 7:41 am

UBI seems to me to encourage non-virtuous behavior – sloth, irresponsibility, fecklessness, and spendthriftness. I like the Finnish model – unemployment insurance is not limited – except if you refuse work provided by the local job center. Lots of work is not being done all over America – we could guarantee honest work to all with some imagination. Start with not spraying roundup and rather using human labor to control weeds and invasive species.

I do agree that universal health insurance is necessary and sadly Obamacare is not that.

ambrit , November 21, 2017 at 8:34 am

The crux of this problem is the definition used for "non-virtuous behaviour." A new CCC is a good place to start though. (Your Tax Dollars At Work! [For some definition of tax dollars.]) As for BJ above, I would suppose that child rearing was his "employment" for years. good so far, but his follow-up is untypical. The 'Empty Nester' mother is a well known meme.

a different chris , November 21, 2017 at 9:19 am

Spendthriftness on 24K a year? Seriously? If we are disgorging unprofessional opinions, I will add my own: sloth and irresponsibility are more signs of depression rather than freedom from having to work. In fact, I believe (and I think much of the stuff here) supports the idea that people want to be seen as useful in some way. Doesn't include me! :) .. unfortunately, I have the charmingly named "dependents" so there you have it.

BJ , November 21, 2017 at 11:18 am

I lived 6 years as a grad student on 24k a year and would say it was easy. Only thing I would have to had worried about was awful health insurance. A two household each with 24k would be even easier, especially if you could do it in a low cost area. So I am not sure what you mean by spendthrift. But again it will never happen, so we will be stuck with what we have or most likely an even more sinister system. I guess I am advocating for a JG with unlimited number of home makers per household.

roadrider , November 21, 2017 at 9:23 am

except if you refuse work provided by the local job center

And who's to say that the local "job center" has work that would be appropriate for every person's specific talents and interests? This is no better than saying that you should be willing to go work for some minimum-wage retail job with unpredictable scheduling and other forms of employer abuses after you lose a high-paying job requiring special talents. I have to call bullshit on this model. I went through a two-year stretch if unemployment in no small part because the vast majority of the available jobs for my skill set were associated with the MIC, surveillance state or the parasitic FIRE sector. I was able to do this because I had saved up enough FY money and had no debts or family to support.

I can also attest to the negative aspects of unemployment that the post describes. Its all true and I can't really say that I'e recovered even now, 2.5 years after finding another suitable job.

Jesper , November 21, 2017 at 10:55 am

The job center in the neighbouring Sweden had the same function. Had is the important word. My guess is that the last time someone lost their unemployment insurance payout due to not accepting a job was in the early 1980s. Prior to that companies might, maybe, possibly have considered hiring someone assigned to them – full employment forced companies to accept what was offered. Companies did not like the situation and the situation has since changed.

Now, when full employment is a thing of the past, the way to lose unemployment insurance payouts is by not applying to enough jobs. An easily gamed system by people not wanting to work: just apply to completely unsuitable positions and the number of applications will be high. Many companies are therefore overwhelmed by applications and are therefore often forced to hire more people in HR to filter out the unsuitable candidates.
People in HR tend not to know much about qualifications and or personalities for the job so they tend to filter out too many. We're all familiar with the skills-shortage .
Next step of this is that the companies who do want to hire have to use recruitment agencies. Basically outsourcing the HR to another company whose people are working on commission. Recruiters sometimes know how to find 'talent', often they are the same kind of people with the same skills and backgrounds as people working in HR.

To even get to the hiring manager a candidate has to go through two almost identical and often meaningless interviews. Recruiter and then HR. Good for the GDP I suppose, not sure if it is good for anything else.

But back on topic again, there is a second way of losing unemployment insurance payout: Time. Once the period covered has passed there is no more payouts of insurance. After that it it is time to live on savings, then sell all assets, and then once that is done finally go to the welfare office and prove that savings are gone and all assets are sold and maybe welfare might be paid out. People on welfare in Sweden are poor and the indignities they are being put through are many. Forget about hobbies and forget about volunteering as the money for either of those activities simply aren't available. Am I surprised by a report saying unemployed in Sweden are unhappy? Nope.

nonclassical , November 21, 2017 at 10:42 am

meanwhile NYTimes testimonials Friday, show average family of 4 healthprofit costs (tripled, due to trump demise ACA) to be $30,000. per year, with around $10,000. deductible end of any semblance of affordable access, "murKa"

https://www.nytimes.com/2017/11/16/us/politics/obamacare-premiums-middle-class.html

Jeremy Grimm , November 21, 2017 at 1:53 pm

What do you mean by virtuous behavior?

Where does a character like Bertie Wooster in "Jeeves" fit in your notions of virtuous behavior? Would you consider him more virtuous working in the management of a firm, controlling the lives and labor of others -- and humorously helped by his his brilliant valet, Jeeves, getting him out of trouble?

For contrast -- in class and social status -- take a beer-soaked trailer trash gentleman of leisure -- and for sake of argument blessed with less than average intelligence -- where would you put him to work where you'd feel pleased with his product or his service? Would you feel better about this fellow enjoying a six-pack after working 8 hours a day 5 days a week virtuously digging and then filling a hole in the ground while carefully watched and goaded by an overseer? [Actually -- how different is that from "using human labor to control weeds and invasive species"? I take it you're a fan of chain-gangs and making the poor pick up trash on the highways?]

What about some of our engineers and scientists virtuously serving the MIC? Is their behavior virtuous because they're not guilty of sloth, irresponsibility [in executing their work], fecklessness, and spendthriftness? On this last quality how do you feel about our government who pay the salaries for all these jobs building better ways to kill and maim?

Bill Smith , November 21, 2017 at 8:01 am

How big is the swimming pool and how long did it take? Where did you put the dirt?

BJ , November 21, 2017 at 11:07 am

It is a design by David Pagan Butler. It is his plunge pool design, deepend is 14 by 8 by 7 deep. I used the dirt to make swales around some trees. Win win all around.

tegnost , November 21, 2017 at 9:32 am

curious to know whether you are married to someone with a job?

BJ , November 21, 2017 at 11:25 am

The answer is yes my spouse works. So I do have a schedule of waking up to make her lunch everyday, meeting her at lunch to walk, and making dinner when she gets home, but we do all those things on her days off so .

But again we would need to explain away, why people who are retired are happier? Just because they think they payed into social security? Try explaining to someone on the SS dole how the government spends money into existence and is not paid by taxes or that the government never saved their tax money, so there are not entitled to this money.

David Kane Miller , November 21, 2017 at 6:55 am

I hated working for other people and doing what they wanted. I began to feel some happiness when I had a half acre on which I could create my own projects. Things improved even more when I could assure myself of some small guaranteed income by claiming Social Security at age 62. To arise in the morning when I feel rested, with interesting projects like gardens, fences, small buildings ahead and work at my own pace is the essence of delight for me. I've been following your arguments against UBI for years and disagree vehemently.

a different chris , November 21, 2017 at 9:23 am

I feel I would behave the same as you, if I had the chance. *But* no statements about human beings are absolute, and because UBI would work for either of us does not mean it would work for the majority. Nothing devised by man is perfect.

Mel , November 21, 2017 at 9:42 am

It's not you; it's not me. It's those deplorable people.

tegnost , November 21, 2017 at 9:37 am

first you had to buy the half acre in a suitable location, then you had to work many years to qualify for social security, the availability of which you paid for and feel you deserve. You also have to buy stuff for fences gardens and small buildings. At most that rhymes with a ubi but is significantly different in it's make up.

Lambert Strether , November 22, 2017 at 1:56 am

> when I had a half acre on which I could create my own projects

That is, when you acquired the half acre, which not everyone can do. It seems to me there's a good deal of projecting going on with this thread from people who are, in essence, statistical outliers. But Mitchell summarizes the literature:

So for decades, researchers in this area, as opposed to bloggers who wax lyrical on their own opinions, have known that the importance of work in our lives goes well beyond the income we earn.

If the solution that works for you is going to scale, that implies that millions more will have to own land. If UBI depends on that, how does that happen? (Of course, in a post-collapse scenario, the land might be taken , but that same scenario makes the existence of institutions required to convey the UBI highly unlikely. )

Carla , November 21, 2017 at 7:16 am

Very glad to hear that Bill Mitchell is working on the "Future of Work" book, and to have this post, and the links to the other segments. Thank you, Yves!

Andrew , November 21, 2017 at 7:25 am

I don't agree with this statement. Never will. I'm the complete opposite. Give me more leisure time and you'll find me painting, writing, playing instruments and doing things that I enjoy. I recall back to when I was a student, I relished in the free time I got (believe me University gave me a lot of free time) between lectures, meaning I could enjoy this time pursuing creative activities. Sure I might be different than most people but I know countless people who are the same.

My own opinion is that root problem lies in the pathology of the working mentality, that 'work' and having a 'job' is so engrained into our society and mindset that once you give most people the time to enjoy other things, they simply can't. They don't know what to do with themselves and they eventually become unhappy, watching daytime TV sat on the sofa.

I recall back to a conversation with my mother about my father, she said to me, 'I don't know how your father is going to cope once he retires and has nothing to do' and it's that very example of where work for so many people becomes so engrained in their mindset, that they are almost scared of having 'nothing to do' as they say. It's a shame, it's this systemic working mentality that has led to this mindset. I'm glad I'm the opposite of this and proud by mother brought me up to be this way. Work, and job are not in my vocabulary. I work to live, not live to work.

I_Agree , November 21, 2017 at 11:26 am

I agree with Andrew. I think this data on the negative effects says more about how being employed fundamentally breaks the human psyche and turns them into chattel, incapable of thinking for themselves and destroying their natural creativity. The more a human is molded into a "good worker" the less they become a full fledged human being. The happiest people are those that have never placed importance on work, that have always lived by the maxim "work to live, not live to work". From my own experience every assertion in this article is the opposite of reality. It is working that makes me apathethic, uncreative, and miserable. The constant knowing that you're wasting your life, day after day, engaged in an activity merely to build revenue streams for the rich, instead of doing things that help society or that please you on a personal level, is what I find misery inducing.

nycTerrierist , November 21, 2017 at 12:18 pm

I agree. If financial insecurity is removed from the equation -- free time can be used creatively for self-actualization, whatever form that may take: cultivating the arts, hobbies, community activities, worthy causes and projects. The ideology wafting from Mitchell's post smells to me like a rationale for wage slavery (market driven living, neo-liberalism, etc.)

jrs , November 21, 2017 at 12:48 pm

Besides how are people supposed to spend their time "exploring other opportunities" when unemployed anyway? To collect unemployment which isn't exactly paying that much anyway, they have to show they are applying to jobs. To go to the movies the example given costs money, which one may tend to be short on when unemployed. They probably are looking for work regardless (for the income). There may still be some free time. But they could go back to school? Uh in case one just woke up from a rock they were under for 100 years, that costs money, which one may tend to be short on when unemployed, plus there is no guarantee the new career will pan out either, no guarantee someone is just chomping at the bit to hire a newly trained 50 year old or something. I have always taken classes when unemployed, and paid for it and it's not cheap.

Yes to use one's time wisely in unemployment in the existing system requires a kind of deep psychological maturity that few have, a kind of Surrender To Fate, to the uncertainty of whether one will have an income again or not (either that or a sugar daddy or a trust fund). Because it's not easy to deal with that uncertainty. And uncertainty is the name of the game in unemployment, that and not having an income may be the pain in it's entirety.

FelicityT , November 21, 2017 at 3:18 pm

Sadly this breaking down into a "good worker" begins for most shortly after they begin school. This type of education harms society in a myriad of ways including instilling a dislike of learning, deference to authority (no matter how irrational and unjust), and a destruction of a child's natural curiosity.

Yves Smith Post author , November 21, 2017 at 5:21 pm

I don't buy your premise that people are "creative". The overwhelming majority do not have creative projects they'd be pursuing if they had leisure and income. Go look at retirees, ones that have just retired, are healthy, and have money.

Yves Smith Post author , November 21, 2017 at 4:29 pm

You are really misconstruing what the studies have found and misapplied it to your situation. Leisure time when you have a job or a role (being a student) is not at all the same as having time when you are unemployed, with or without a social safety net.

Summer , November 21, 2017 at 6:25 pm
  • Work: that can be me hiring someone to cut my yard, or another type of one-off thing filled with precariousness.
  • Job: that less temporary work, but by no means permanent. Just a step up from the precariousness of work.
  • Career: that is work in the same field over a long period of time and it is more likely that someone will develop an identity through performing the work. Still precarious, but maybe more fulfilling.
  • Sense of purpose: I was always under the impression that is something you have to give yourself. If it can be taken away by someone what was the purpose?
jrs , November 21, 2017 at 6:37 pm

one often has a role when unemployed: finding work. But it's not a very fulfilling one! But if one is trying to find work, it's not exactly the absence of a role either even if it still leaves significantly more free time than otherwise, maybe winning the lottery is the absence of a role.

But then it's also not like we give people a UBI even for a few years (at any time in adult life) to get an education. Only if they take out a student loan approaching the size of a mortgage or have parents willing to pony up are they allowed that (to pay not just for the education but to live because having a roof over one's head etc. is never free, a UBI via debt it might be called).

Lambert Strether , November 22, 2017 at 2:00 am

> Give me more leisure time and you'll find me painting, writing, playing instruments and doing things that I enjoy.
Nothing to breed resentment of "the creative class" here! Blowback from Speenhamland brought on the workhouses, so be careful what you wish for.

Jesper , November 21, 2017 at 7:47 am

Again the UBI vs JG debate .

UBI won't happen and JG has been tried (and failed).

The argument that JG would allow the public sector to hire more people is demeaning to people already employed in the public sector and demonstrably false – people are hired into the public sector without there being a JG. It is most certainly possible to be against a JG while wanting more people working in the public sector.

The way forward is to have a government acting for people instead of for corporations. Increase the amount of paid vacations, reduce the pension age and stop with the Soviet style worship of work: While some people are apparently proud of their friends and relatives who died while at work it is also possible to feel sad about that.

diptherio , November 21, 2017 at 10:00 am

JG has been tried (and failed).

When and where? The NCCC seemed to work pretty good here in the Western US.

Jesper , November 21, 2017 at 10:27 am

The JG was tried in Communist countries in Europe, Asia and Americas. The arguments then and there were the same as here and now, made by the same type of social 'scientists' (economists).

Would a JG be different here and now as the Republicans and Democrats are representing the best interests of the people? Or are they representing the same kind of interests as the Communist parties did?

Yves Smith Post author , November 21, 2017 at 4:39 pm

Data, please. The USSR fell because it was spending on its military to keep up with the US, a much larger economy. Countering your assertion we have this:

tegnost , November 21, 2017 at 10:00 am

As long as people argue that "it's not fair" to fix the inequality issue and employ things like debt jubilee or student loan forgiveness, or if we fix the ridiculous cost of health care what will all those insurance agents do then we will wind up with the real kind of class warfare, rather than the current punching from the top down, the punching will come from the bottom, because the situation is not fair now, it's just TINA according to those who profit from it. In my own life there is a balance of creativity and work, and I find work enables my creativity by putting some pressure on my time, i.e., I get up earlier, I practice at 8:30 am instead of sleeping til 10 and winding up with S.A..D., I go to bed rather than watch tv or drink to excess.. in other words i have some kind of weird schedule, I have days off sort of When I've been unemployed I feel the way s described in the article. I find the arguments in favor of ubi tend to come from people who already have assets, or jobs, or family who they take care of which is actually a job although uncommonly described as such. The only truth I see in real life is that the unemployed I am intimately familiar with first are mentally oppressed by the notion that to repair their situation will require they work every waking hour at substandard wages for the rest of their life and that is a major barrier to getting started, and that is a policy choice the gov't and elite classes purposefully made which created the precariat and will be their undoing if they are unable to see this.

tegnost , November 21, 2017 at 10:15 am

Hey look, even the msm is looking at it
https://www.seattletimes.com/seattle-news/is-uprising-the-only-way-out-of-gross-inequality-maybe-so/

j84ustin , November 21, 2017 at 10:08 am

As someone who works in the public sector I never quite thought of it like that, thanks.

hunkerdown , November 21, 2017 at 7:53 am

Disappointing that there's no analysis in this context of less employment, as in shorter work weeks and/or days, as opposed to merely all or none.

nonclassical , November 21, 2017 at 10:45 am

see – hear

(but no possibility without healthcare access, rather than healthtprofit)

Vatch , November 21, 2017 at 11:31 am

Interesting point. I read a science fiction story in which the protagonist arrives for work at his full time job at 10:00 AM, and he's finished for the day at 4:00 PM. I can't remember the name of the story or novel, unfortunately.

jrs , November 21, 2017 at 1:04 pm

Agreed. And they already have it in places like Denmark. Why don't we talk about that? It actually exists unlike utopian schemes for either total UBI or total work guarantee (government job creation is not utopian, but imagining it will employ everyone is, and I would like the UBI to be more widely tried, but in this country we are nowhere close). Funny how utopia becomes more interesting to people than actual existing arrangements, even though of course those could be improved on too.

The Danish work arrangement is less than a 40 hour week, and mothers especially often work part-time but both sexes can. It's here in this country where work is either impossibly grueling or you are not working. No other choice. In countries with more flexible work arrangements more women actually work, but it's flexible and flexible for men who choose to do the parenting as well. I'm not saying this should be for parents only of course.

Lambert Strether , November 22, 2017 at 2:02 am

Because the JG sets the baseline for employment, which private companies must meet, the JG (unlike the UBI) can do this.

Otis B Driftwood , November 21, 2017 at 7:58 am

My own situation is that I am unhappy in my well-paying job and would like nothing more than to devote myself to other interests. I'm thirty years on in a relationship with someone who grew up in bad financial circumstances and panics whenever I talk about leaving my job. I tell her that we have 2 years of living expenses in the bank but I can't guarantee making the same amount of money if I do leave my job. She has a job that she loves and is important and pays barely 1/2 of my own income. So she worries about her future with me. She worries about losing her home. I suppose that makes me the definition of a wage slave. And it makes for an increasingly unhappy marriage. I admire those who have faced similar circumstances and found a way through this. Sorry to vent, but this topic and the comments hit a nerve with me and I'm still trying to figure this out.

ambrit , November 21, 2017 at 8:38 am

Otis; We are presently going through a period where that "two year cushion" has evaporated, for various reasons. We are seeing our way through this, straight into penury and privation. Take nothing for granted in todays' economy.

jrs , November 21, 2017 at 1:11 pm

yes find the lower paying job that you like more first. If you just quit for nothing in the hopes of finding one it might not happen. Of course unemployment also happens sometimes, whether we want it or not.

bronco , November 21, 2017 at 12:47 pm

The newer generations are worse when it comes to lifestyle. Those of that are older can at least remember a time without cellphones internet streaming services leasing a new car every 2 years etc.

What about the young? My niece and her husband should be all set , his mom sunk money into a home on the condition she moved into a mother in law apartment. So far so good right? 2 years in they are imploding even with the free child care she provides. Combined their wireless bill a month is over $300. The sit on the couch side by side and stream netflix shows to dueling iphones in front of a 65 inch tv that is not even turned on. Wearing headphones in silence.

Both driving new vehicles , both have gym memberships they don't use . They buy lattes 3 or 4 times a day which is probably another 500 a month.

My uncle passed away recently and my niece asked if she was in the will. It was literally her only communication on the subject. They are going under and could easily trim a few thousand a month from the budget but simply won't. No one in the family is going to lift a finger for them at this point they burned every possible bridge already. I have seen people living in cars plenty lately but I think these will be the first I see to living in brand new cars .

Somewhere along the line they got the impression that the american dream was a leased car a starbucks in one hand and an iphone in the other .

Confront them with the concept of living within a paycheck and they react like a patient hearing he has 3 months to live.

Lambert Strether , November 22, 2017 at 2:03 am

Ah. Reagan's "welfare queens" updated. Kids these days!

JBird , November 22, 2017 at 3:00 am

Yeah being poor, never mind growing up poor, just well and truly sucks and it can really @@@@ you up. Gives people all sorts of issues. I'm rather like her, but I have had the joy of multi-hour commutes to unexciting soul crushing work. Happy, happy, joy, joy! However don't forget that with the current political economy things are likely to go bad in all sorts of ways. This whole site is devoted to that. My suggestion is to keep the job unless you have something lined up. Not being able to rent has it own stresses too. Take my word for it.

Thuto , November 21, 2017 at 8:00 am

I may be engaging in semantics but I think conflating work and jobs makes this article a bit of a mixed bag. I know plenty of people who are terribly unhappy in their jobs, but nonetheless extract a sense of wellbeing from having a stable source of INCOME to pay their bills (anecdotally speaking, acute stress from recent job losses is closely linked to uncertainty about how bills are going to be paid, that's why those with a safety net of accumulated savings report less stress than those without). Loss of status, social standing and identity and the chronic stress borne from these become evident much later I.e. when the unemployment is prolonged, accompanied of course by the still unresolved top-of-mind concern of "how to pay the bills".

As such, acute stress for the recently unemployed is driven by financial/income uncertainty (I.e. how am I going to pay the bills) whereas chronic stress from prolonged unemployment brings into play the more identity driven aspects like loss of social standing and status. For policy interventions to have any effects, policy makers would have to delineate the primary drivers of stress (or lack of wellbeing as the author calls it) during the various phases of the unemployment lifecycle. An Unemployment Insurance Fund (UIF) like we have here in South Africa appears to address the early stages of unemployment, and the accompanying acute stress, quite well by providing the income guarantee (for six months) that cushions the shock of losing a job. What's still missing of course are interventions that promote the quick return to employment for those on UIF, so maybe a middle of the road solution between UBI and a jobs guarantee scheme is how policy makers should be framing this, instead of the binary either/or we currently have.

TroyMcClure , November 21, 2017 at 9:19 am

Lots' of people think they're unhappy with their jobs. Let them sit unemployed for 9 months and ask them if they want that job back. The usual parade of anecdata is on display here in the comments. Mitchell's real data and analysis in the article above still stand.

Thuto , November 21, 2017 at 10:06 am

If you'd read through my comment, and not rushed through it with a view of dishing out a flippant response, you'd have seen that nowhere do I question the validity of his data, I merely question how the argument is presented in some areas (NC discourages unquestioning deference to the views of experts no??). By the way, anecdotes do add to richer understanding of a nuanced and layered topic (as this one is) so your dismissal of them in your haste to invalidate people's observations is hardly helpful.

jrs , November 21, 2017 at 1:15 pm

Yes people many not like their jobs but prefer the security of having them to not. Yes even if the boss sexually harasses one (as we are seeing is very common). Yes even if there is other workplace abuse. Yes even when it causes depression or PTSD (but if one stays with such a job long term it ruins the self confidence that is one prerequisite to get another job!). Yes even if one is in therapy because of job stress, sexual harassment or you name it. The job allows the having health insurance, allows the therapy, allows the complaining about the job in therapy to make it through another week.

Lambert Strether , November 22, 2017 at 2:04 am

> The usual parade of anecdata is on display here in the comments. Mitchell's real data and analysis in the article above still stand.

Ding ding ding!

Democrita , November 21, 2017 at 8:13 am

When unemployed, the stress of worry about money may suppress the creative juices. Speaking from experience. People may well 'keep looking for jobs' because they know ultimately they need a job with steady income. The great experience of some freelancers notwithstanding, not all are cut out for it.

I would love to see some more about happiness or its lack in retirement–referenced by stay-at-home dad BJ , above.

I wonder, too, about the impact of *how* one loses one's job. Getting laid off vs fired vs quitting vs involuntary retirement vs voluntary, etc feel very different. Speaking from experience on that, too. I will search on these points and post anything of interest.

jrs , November 21, 2017 at 1:40 pm

There are also other things that are degrading about the very process of being unemployed not mentioned here. What about the constant rejection that it can entail? One is unemployed and looking for work, one sends out resumes, many of them will never be answered, that's rejection. Then if one is lucky they get interviews, many will never lead to jobs, yet more rejection. Does the process of constant rejection itself have a negative effect on a human being whether it's looking for jobs or dates or whatever? Isn't it learned helplessness to if one keeps trying for something and keeps failing. Isn't that itself demoralizing entirely independent of any doubtful innate demoralizing quality of leisure.

freedeomny , November 21, 2017 at 10:23 am

I am not so sure if I agree with this article. I think it really depends on whether or not you have income to support yourself, hate or love your job, and the amount of outside interests you have, among other things. Almost everyone I know who lives in the NYC area and commutes into the city .doesn't like their job and finds the whole situation "soul-crushing".

Those that live in Manhattan proper are (feel) a bit better off. I for one stopped working somewhat voluntarily last year. I write somewhat because I began to dislike my job so much that it was interfering with my state of well being, however, if I had been allowed to work remotely I probably would have stuck it out for another couple of years.

I am close enough to 62 that I can make do before SS kicks in although I have completely changed my lifestyle – i.e. I've given up a materialistic lifestyle and live very frugally.

Additionally I saved for many years once I decided to embark on this path. I do not find myself depressed at all and the path this year has been very enriching and exciting (and scary) as I reflect on what I want for the future. I'm pretty sure I will end up moving and buying a property so that I can become as self sufficient as possible. Also, I probably will get a job down the line – but if I can't get one because I am deemed too old that will be ok as well. The biggest unknown for me is how much health insurance will cost in the future .

Yves Smith Post author , November 21, 2017 at 5:15 pm

The article made clear that the studies included "unemployed but with income" from government support. It is amazing the degree to which readers ignore that and want to make the findings about "unemployed with no income".

JBird , November 22, 2017 at 3:30 am

That's because we Americans all have work=good=worthy=blessed by God while workless=scum=worthless=accursed by God engraved into our collective soul. Our politics, our beliefs, are just overlays to that.

Even when we agree that the whole situation just crushes people into paste, and for which they have no defense regardless of how hard they work, how carefully they plan, or what they do, that underlay makes use feel that this is their/our fault. Any suggestions that at least some support can be decoupled from work, and that maybe work, and how much you earn, should not determine their value, brings the atavistic fear of being the "undeserving poor," parasites and therefore reprobated scum.

So we don't hear what you are saying without extra effort because it's bypassing our conscious thoughts.

Jamie , November 21, 2017 at 10:43 am

Add my voice to those above who feel that forced labor is the bane of existence, not the wellspring. All this study says to me is that refusing to employ someone in capitalist society does not make them happy. It makes them outcasts.

So, I say yes to a JG, because anyone who wants work should be offered work. But at the same time, a proper JG is not forced labor. And the only way to ensure that it is not forced labor, is to decouple basic needs from wage slavery.

Left in Wisconsin , November 21, 2017 at 12:02 pm

I am critical of those who distinguish between the job and the income. Of course the income is critical to the dignity of the job. For many jobs, it is the primary source of that dignity. The notion that all jobs should provide some intrinsic dignity unrelated to the income, or that people whose dignity is primarily based on the income they earn rather than the work they do are deluded, is to buy in to the propaganda of "passion" being a requirement for your work and to really be blind to what is required to make a society function. Someone has to change the diapers, and wipe the butts of old people. (yes, I've done both.) It doesn't require passion and any sense of satisfaction is gone by about the second day. But if you could make a middle class living doing it, there would be a lot fewer unhappy people in the world.

It is well known that auto factory jobs were not perceived as good jobs until the UAW was able to make them middle class jobs. The nature of the actual work itself hasn't changed all that much over the years – mostly it is still very repetitive work that requires little specialized training, even if the machine technology is much improved. Indeed, I would guess that more intrinsic satisfaction came from bashing metal than pushing buttons on a CNC machine, and so the jobs may even be less self-actualizing than they used to be.

The capitalist myth is that the private sector economy generates all the wealth and the public sector is a claim on that wealth. Yet human development proves to us that this is not true – a substantial portion of "human capital" is developed outside the paid economy, government investment in R&D generates productivity growth, etc. And MMT demonstrates that we do not require private sector savings to fund public investment.

We are still a ways from having the math to demonstrate that government investment in caring and nurturing is always socially productive – first we need productivity numbers that reflect more than just private sector "product." But I think we are moving in that direction. Rather than prioritize a minimum wage JG of make-work, we should first simply pay people good wages to raise their own children or look after their elderly and disabled relatives. The MMT JG, as I understand it, would still require people to leave their kids with others to look after them in order to perform some minimum wage task. That is just dumb.

jrs , November 21, 2017 at 1:31 pm

Maybe it's dumb, it's certainly dumb in a system like the U.S. where work is brutal and often low paid and paid childcare is not well remunerated either. But caretakers also working seems to work in countries with greater income equality, good job protections, flexible work arrangements, and a decent amount of paid parental leave – yea Denmark, they think their children should be raised by professionals, but also work-life balance is still pretty good.

Whiskey Bob , November 21, 2017 at 1:34 pm

My take is that capitalism has made the benefits and malus of having a job so ingrained into culture and so reinforced. Having a job is so closely linked to happiness because it gives you the money needed to pursue it.

A job affords you the ability to pursue whatever goals you want within a capitalist framework. "Everything" costs money and so having a job gives you the money to pay for those costs and go on to fulfill your pursuit of happiness.

Analyzing whether people are happy or not under these conditions seem apparent that it is going to lead to results heavily biased towards finding happiness through employment.

The unemployed are often living off someone else's income and feel like an undeserving parasite. Adults are generally ingrained with the culture that they have to grow up and be independent and be able to provide for a new family that they will start up. Becoming unemployed is like being emasculated and infantile, the opposite of what is expected of adults.

There's also that not having a job is increasingly being punished especially in the case of America. American wages have stayed either largely static or have worsened, making being unemployed that much more of a burden on family or friends. Unemployment has been demonized by Reaganism and has become systematically punishable for the long term unemployed. If you are unemployed for too long, you start losing government support. This compounds the frantic rush to get out of unemployment once unemployed.

There is little luxury to enjoy while unemployed. Life while unemployed is a frustrating and often disappointing hell of constant job applications and having many of them lead to nothing. The people providing support often start to become less so over time and become more convinced of laziness or some kind of lack of character or willpower or education or ability or whatever. Any sense of systemic failure is transplanted into a sense of personal failure, especially under neoliberalism.

I am not so sure about the case of Europe and otherwise. I am sure that the third world often has little or no social safety nets so having work (in exploitative conditions in many cases) is a must for survival.

Anyways, I wonder about the exact methodologies of these studies and I think they often take the current feelings about unemployment and then attempt to extrapolate talking points for UBI/JG from them. Yes, UBI wouldn't change culture overnight and it would take a very, very long time for people to let down their guard and adjust if UBI is to be implemented in a manner that would warrant trust. This article seems to understand the potential for that, but decides against it being a significant factor due to the studies emphasizing the malus of unemployment.

I wonder how different the results would be if there were studies that asked people how they would feel if they were unemployed under a UBI system versus the current system. I know a good number of young people (mostly under 30) who would love to drop out and just play video games all day. Though the significance of such a drastic demographic shift would probably lead to great political consequences. It would probably prove the anti-UBI crowd right in that under a capitalist framework, the capitalists and the employed wouldn't tolerate the unemployed and would seek to turn them into an underclass.

Personally I think a combination of UBI and JG should be pursued. JG would work better within the current capitalist framework. I don't think it is without its pitfalls due to similar possible issues (with the similar policy of full employment) either under Keynesianism (e.g. Milton Friedman sees it as inefficient) or in the USSR (e.g. bullshit jobs). There is the possibility of UBI having benefits (not having the unemployed be a burden but a subsidized contributer to the economy) so I personally don't think it should be fully disregarded until it is understood better. I would like it if there were better scientific studies to expand upon the implications of UBI and better measure if it would work or not. The upcoming studies testing an actual UBI system should help to end the debates once and for all.

redleg , November 21, 2017 at 2:28 pm

My $0.02: I have a creative pursuit (no money) and a engineering/physical science technical career (income!). I am proficient in and passionate about both. Over the last few years, the technical career became tenuous due to consolidation of regional consulting firms (endemic to this era)- wages flat to declining, higher work stress, less time off, conversation to contact employment, etc.- which has resulted in two layoffs.

During the time of tenuous employment, my art took on a darker tone. During unemployment the art stopped altogether.

I'm recently re-employed in a field that I'm not proficient. Both the peter principle and imposter syndrome apply. My art has resumed, but the topics are singular about despair and work, to the point that I feel like I'm constantly reworking the same one piece over and over again. And the quality has plummeted too.

In some fields (e.g. engineering), being a wage slave is the only realistic option due to the dominance of a small number of large firms. The big players crowd out independents and free lancers, while pressuring their own employees through just-high-enough wages and limiting time off. Engineering services is a relationship- based field, and the big boys (and they are nearly all boys) have vastly bigger networks to draw work from than a small firm unless that small firm has a big contact to feed them work (until they get gobbled up). The big firms also have more areas of expertise which limits how useful a boutique firm is to a client pool, except under very narrow circumstances. And if you are an introvert like most engineering people, there's no way to compete with big firms and their marketing staff to expand a network enough to compete.

In that way, consulting is a lot like art. To make a living at it you need either contacts or a sponsor. Or an inheritance.

ChrisPacific , November 21, 2017 at 5:30 pm

I would be interested to know what the definition of unemployment was for the purpose of this study (I couldn't find it in the supplied links). If it's simply "people who don't have a job," for example, then it would include the likes of the idle rich, retirees, wards of the state, and so on. Binary statements like this one do make it sound like the broad definition is the one in use:

When considering the world's population as a whole, people with a job evaluate the quality of their lives much more favorably than those who are unemployed.

The conclusion seems at odds with results I've seen for some of those groups – for example, I thought it was fairly well accepted that retirees who are supported by a government plan that is sufficient for them to live on were generally at least as happy as they had been during their working life.

If, on the other hand, the study uses a narrow definition (e.g. people who are of working age, want a job or need one to support themselves financially, but can't find one) then the conclusion seems a lot more reasonable. But that's a heavily loaded definition in economic and cultural terms. In that case, the conclusion (people are happier if they have a job) only holds true in the current prevailing model of society. It doesn't rule out the possibility of structuring society or the economy differently in such a way that people can be non-working and happy. The existence of one such population already (retirees) strongly suggests that outcomes like this are possible. A UBI would be an example of just such a restructuring of society, and therefore I don't think that this study and its result are necessarily a valid argument against it.

nihil obstet , November 21, 2017 at 6:07 pm

Which makes a person happier -- being considered worthless by one's society or valuable? How many studies do we need to answer that question? Apparently, a lot, because studies like this one keep on going. The underlying assumption is that jobs make one valuable. So if you don't have a job you're worthless. Now, who's happier on the whole, people with jobs or the unemployed? That's surely good for a few more studies. Did you know that members of socially devalued groups (minorities, non-heteros, and the like) have higher rates of dysfunction, rather like the unemployed? Hmm, I wonder if there's maybe a similar principle at work. And my solution is not to turn all the people of color white nor to change all the women to men nor to "cure" gays. Well, maybe a few more conclusive studies of this kind will convince me that we must all be the same, toeing the line for those whom it has pleased God to dictate our values to us.

I am convinced that we shouldn't outlaw jobs, because I believe the tons of stories about happy people in their jobs However, I also believe we shouldn't force everyone into jobs, because I know tons of stories about happy people without jobs. You know, the stories that the JG people explain away: parents caring for their children (JG -- "oh, we'll make that a job!"), volunteers working on local planning issues (JG -- "oh, we'll make that a job, too. In fact, we'll make everything worth doing a job. The important thing is to be able to force people to work schedules and bosses, because otherwise, they'll all lie around doing nothing and be miserable"), the retired (JG -- "that's not really the same, but they'd be better off staying in a job"). And this is all before we get to those who can't really hold a job because of disability or geography or other responsibilities.

I support the JG over the current situation, but as to what we should be working for, the more I read the JG arguments, the more paternalistic and just plain narrow minded judgmental they seem.

Summer , November 21, 2017 at 6:52 pm

If someone else gives you a sense of purpose and takes it away what was the purpose?

Lambert Strether , November 22, 2017 at 1:24 am

Data like that provided by Mitchell is important to demolishing the horrid "economic anxiety" frame much beloved by liberals, especially wonkish Democrats.* It's not (a) just feelings , to be solved by scented candles or training (the liberal version of rugged individualism) and (b) the effects are real and measurable. It's not surprising, when you think about it, that the working class is about work .

* To put this another way, anybody who has really suffered the crawling inwardness of anxiety, in the clinical sense, knows that it affects every aspect of one's being. Anxiety is not something deplorables deploy as cover for less than creditable motives.

[Jun 26, 2017] The entire spectrum of political thought from the neoliberal center to the reactionary right is really about setting up punitive systems of coercion and control.

Notable quotes:
"... The entire spectrum of political thought from the neoliberal center to the reactionary right is really about setting up punitive systems of coercion and control. They hate the "losers" and want them punished. They really believe that the beatings should continue until morale improves, that if you make things unbearable people will pull themselves up by their bootstraps, and if they don't then they deserve all the cruelty that can be heaped upon them. ..."
"... The poor are errant children who need to be molded. Conservatives may whine about the "nanny state" but what they really want to see is either the negligent mommy state or the abusive daddy state. They want to "help" the poor the way a drill instructor wants to help you learn to obey and kill. And remember: it's for your own good. Perhaps I am being unfair, but beneath the platitudes this seems to be the motivating ideology of too much of the contemporary governing class. ..."
"... This is how totalitarian regimes operate and how they view the "brainiacs" of this World. Brainiacs are merely military assets to be deployed brutally against the enemy. Or, if the Brainiacs are perceived to be "Assets of the Enemy", they are targeted for destruction- First, Foremost and on the double! ..."
May 05, 2017 | www.nakedcapitalism.com
James Levy , May 4, 2017 at 1:14 pm

I used to think that much of modern conservatism was simply a misguided, wrong-headed alternative attempt to formulate policies for the general welfare. Then I read Corey Robin's book The Reactionary Mind and started reevaluating that presumption.

The entire spectrum of political thought from the neoliberal center to the reactionary right is really about setting up punitive systems of coercion and control. They hate the "losers" and want them punished. They really believe that the beatings should continue until morale improves, that if you make things unbearable people will pull themselves up by their bootstraps, and if they don't then they deserve all the cruelty that can be heaped upon them.

The poor are errant children who need to be molded. Conservatives may whine about the "nanny state" but what they really want to see is either the negligent mommy state or the abusive daddy state. They want to "help" the poor the way a drill instructor wants to help you learn to obey and kill. And remember: it's for your own good. Perhaps I am being unfair, but beneath the platitudes this seems to be the motivating ideology of too much of the contemporary governing class.

clarky90 , May 4, 2017 at 5:51 pm

IMO, Parise (an economist) is following a well-worn "playbook".

  • (1) Identify the group targeted for liquidation. (Roma, Jew, kulak, Aborigine, American Indian, American Deplorables .)
  • (2) Recruit insider scientists/intellectuals to to "discover" that the targeted group is sub-normal cognitively (unworthy of Life).
  • (3) Have a Noble Cause that requires Tough Action by Determined Leaders (Collectivization, Racial Purity, Bringing Christian Values, Saving the Planet .)
  • (4) Proceed, as Stalin would say, to "break the eggs to make the omelette". (Democide). This is the "unpleasant cleansing" that, however disturbing, must be done for the "greater good".

https://en.wikipedia.org/wiki/Democide

It is happening, as I speak, in the beautiful little town that I grew up in, on the banks of the Ohio River, in Southern Ohio. (drugs and hopelessness)

Seventy-five years ago, it happened to my Jewish forebears in Belarus. Three hundred years ago my Minqua (Iroquois) forbears were destroyed by this murderous rationalization.

This sort of article is not an exchange of ideas, but rather a crafted assault on a vulnerable group of humanity (in this case, the Poor)

Thank you Yves for bringing this to our attention!

clarky90 , May 4, 2017 at 7:37 pm

This last century, Scientists, Intellectuals, Academics, and Religious Leaders have been viewed as Powerful Military Assets, or Military Threats by totalitarian regimes. They have been used to progress the goals of regimes. (The Nazi Doctors of Auschwitz)

Or, if they question the regime, they are the first to be rounded up, jailed or murdered.

The Khmer Rouge immediately murdered anybody who wore glasses or had soft hands.(Intellectuals).

When the Soviet Union invaded Latvia, Lithuania and Estonia in 1940, the first thing the NKVD did was round up local Scientists, Intellectuals, Academics, Religious Leaders and Cultural Leaders and deport them to the Gulags or, more likely, kill them.

The Nazis behaved in exactly the same way with the Cultural leadership of Poland, Czechoslovakia, Yugoslavia ..

This is how totalitarian regimes operate and how they view the "brainiacs" of this World. Brainiacs are merely military assets to be deployed brutally against the enemy. Or, if the Brainiacs are perceived to be "Assets of the Enemy", they are targeted for destruction- First, Foremost and on the double!

I believe that we have a naive view of "experts"; imagining benign, tweed coated/skirted, helpful, good-hearted, "Good Will Hunting" types. Thanks Hollywood!

Adam Eran , May 4, 2017 at 6:08 pm

MSM! Why this fairly screams David Brooks' name!

[Jun 26, 2017] Why hurting the poor will hurt the economy

Crocodile tears of WaPO staff... Who fully supported implementation of Washington consensus that robbed the nations in favor of international companies... this was a new mass scale economic rape of the Western countries and it was especially brutal in xUSSR area.
Mar 11, 2017 | economistsview.typepad.com

djb : March 11, 2017 at 06:42 AM

Why hurting the poor will hurt the economy - The Washington Post

that this topic even needs a special article about it is proof of the sad state of affairs of economics today

Why trying to help poor countries might actually hurt them - The Washington Post

Nobel-winning economist Angus Deaton argues against giving aid to poor countries

It sounds kind of crazy to say that foreign aid often hurts, rather than helps, poor people in poor countries. Yet that is what Angus Deaton, the newest winner of the Nobel Prize in economics , has argued.

Deaton, an economist at Princeton University who studied poverty in India and South Africa and spent decades working at the World Bank, won his prize for studying how the poor decide to save or spend money. But his ideas about foreign aid are particularly provocative. Deaton argues that, by trying to help poor people in developing countries, the rich world may actually be corrupting those nations' governments and slowing their growth. According to Deaton, and the economists who agree with him, much of the $135 billion that the world's most developed countries spent on official aid in 2014 may not have ended up helping the poor.

Angus Deaton (LARRY LEVANTI/AFP/Getty Images)

The idea of wealthier countries giving away aid blossomed in the late 1960s, as the first humanitarian crises reached mass audiences on television. Americans watched through their TV sets as children starved to death in Biafra, an oil-rich area that had seceded from Nigeria and was now being blockaded by the Nigerian government, as Philip Gourevitch recalled in a 2010 story in the New Yorker. Protesters called on the Nixon administration for action so loudly that they ended up galvanizing the largest nonmilitary airlift the world had ever seen. Only a quarter-century after Auschwitz, humanitarian aid seemed to offer the world a new hope for fighting evil without fighting a war.

There was a strong economic and political argument for helping poor countries, too. In the mid-20th century, economists widely believed that the key to triggering growth -- whether in an already well-off country or one hoping to get richer -- was pumping money into a country's factories, roads and other infrastructure. So in the hopes of spreading the Western model of democracy and market-based economies, the United States and Western European powers encouraged foreign aid to smaller and poorer countries that could fall under the influence of the Soviet Union and China.

The level of foreign aid distributed around the world soared from the 1960s , peaking at the end of the Cold War, then dipping before rising again. Live Aid music concerts raised public awareness about challenges like starvation in Africa, while the United States launched major, multibillion-dollar aid initiatives . And the World Bank and advocates of aid aggressively seized on research that claimed that foreign aid led to economic development.

Deaton wasn't the first economist to challenge these assumptions, but over the past two decades his arguments began to receive a great deal of attention. And he made them with perhaps a better understanding of the data than anyone had before. Deaton's skepticism about the benefits of foreign aid grew out of his research, which involved looking in detail at households in the developing world, where he could see the effects of foreign aid intervention.

"I think his understanding of how the world worked at the micro level made him extremely suspicious of these get-rich-quick schemes that some people peddled at the development level," says Daron Acemoglu, an economist at MIT.

The data suggested that the claims of the aid community were sometimes not borne out. Even as the level of foreign aid into Africa soared through the 1980s and 1990s, African economies were doing worse than ever, as the chart below, from a paper by economist Bill Easterly of New York University, shows.


William Easterly, "Can Foreign Aid Buy Growth?"

The effect wasn't limited to Africa. Many economists were noticing that an influx of foreign aid did not seem to produce economic growth in countries around the world. Rather, lots of foreign aid flowing into a country tended to be correlated with lower economic growth, as this chart from a paper by Arvind Subramanian and Raghuram Rajan shows.

The countries that receive less aid, those on the left-hand side of the chart, tend to have higher growth -- while those that receive more aid, on the right-hand side, have lower growth.


Raghuram G. Rajan and Arvind Subramanian, "Aid and Growth: What Does the Cross-Country Evidence Really Show?"

Why was this happening? The answer wasn't immediately clear, but Deaton and other economists argued that it had to do with how foreign money changed the relationship between a government and its people.

Think of it this way: In order to have the funding to run a country, a government needs to collect taxes from its people. Since the people ultimately hold the purse strings, they have a certain amount of control over their government. If leaders don't deliver the basic services they promise, the people have the power to cut them off.

Deaton argued that foreign aid can weaken this relationship, leaving a government less accountable to its people, the congress or parliament, and the courts.

"My critique of aid has been more to do with countries where they get an enormous amount of aid relative to everything else that goes on in that country," Deaton said in an interview with Wonkblog. "For instance, most governments depend on their people for taxes in order to run themselves and provide services to their people. Governments that get all their money from aid don't have that at all, and I think of that as very corrosive."

It might seem odd that having more money would not help a poor country. Yet economists have long observed that countries that have an abundance of wealth from natural resources, like oil or diamonds, tend to be more unequal, less developed and more impoverished, as the chart below shows. Countries at the left-hand side of the chart have fewer fuels, ores and metals and higher growth, while those at the right-hand side have more natural resource wealth, yet slower growth. Economists postulate that this "natural resource curse" happens for a variety of reasons, but one is that such wealth can strengthen and corrupt a government.

curse

Like revenue from oil or diamonds, wealth from foreign aid can be a corrupting influence on weak governments, "turning what should be beneficial political institutions into toxic ones," Deaton writes in his book "The Great Escape: Health, Wealth, and the Origins of Inequality." This wealth can make governments more despotic, and it can also increase the risk of civil war, since there is less power sharing, as well as a lucrative prize worth fighting for.

Deaton and his supporters offer dozens of examples of humanitarian aid being used to support despotic regimes and compounding misery, including in Zaire, Rwanda, Ethiopia, Somalia, Biafra, and the Khmer Rouge on the border of Cambodia and Thailand. Citing Africa researcher Alex de Waal, Deaton writes that "aid can only reach the victims of war by paying off the warlords, and sometimes extending the war."

He also gives plenty of examples in which the United States gives aid "for 'us,' not for 'them'" – to support our strategic allies, our commercial interests or our moral or political beliefs, rather than the interests of the local people.

The United States gave aid to Ethiopia for decades under then-President Meles Zenawi Asres, because he opposed Islamic fundamentalism and Ethiopia was so poor. Never mind that Asres was "one of the most repressive and autocratic dictators in Africa," Deaton writes. According to Deaton, "the award for sheer creativity" goes to Maaouya Ould Sid'Ahmed Taya, president of Mauritania from 1984 to 2005. Western countries stopped giving aid to Taya after his government became too politically repressive, but he managed to get the taps turned on again by becoming one of the few Arab nations to recognize Israel.

Some might argue for bypassing corrupt governments altogether and distributing food or funding directly among the people. Deaton acknowledges that, in some cases, this might be worth it to save lives. But one problem with this approach is that it's difficult: To get to the powerless, you often have to go through the powerful. Another issue, is that it undermines what people in developing countries need most -- "an effective government that works with them for today and tomorrow," he writes .

The old calculus of foreign aid was that poor countries were merely suffering from a lack of money. But these days, many economists question this assumption, arguing that development has more to do with the strength of a country's institutions – political and social systems that are developed through the interplay of a government and its people.

There are lot of places around the world that lack good roads, clean water and good hospitals, says MIT's Acemoglu: "Why do these places exist? If you look at it, you quickly disabuse yourself of the notion that they exist because it's impossible for the state to provide services there." What these countries need even more than money is effective governance, something that foreign aid can undermine, the thinking goes.

Some people believe that Deaton's critique of foreign aid goes too far. There are better and worse ways to distribute foreign aid, they say. Some project-based approaches -- such as financing a local business, building a well, or providing uniforms so that girls can go to school -- have been very successful in helping local communities. In the last decade, researchers have tried to integrate these lessons from economists and argue for more effective aid practices.

Many people believe that the aid community needs more scrutiny to determine which practices have been effective and which have not. Economists such as Abhijit Banerjee and Esther Duflo, for example, argue for creating randomized control trials that allow researchers to carefully examine the development effects of different types of projects -- for example, following microcredit as it is extended to people in poor countries.

These methods have again led to a swell in optimism in professional circles about foreign aid efforts. And again, Deaton is playing the skeptic.

While Deaton agrees that many development projects are successful, he's critical of claims that these projects can be replicated elsewhere or on a larger scale. "The trouble is that 'what works' is a highly contingent concept," he said in an interview. "If it works in the highlands of Kenya, there's no reason to believe it will work in India, or that it will work in Princeton, New Jersey."

The success of a local project, like microfinancing, also depends on numerous other local factors, which are harder for researchers to isolate. Saying that these randomized control trials prove that certain projects cause growth or development is like saying that flour causes cake, Deaton writes in his book. "Flour 'causes' cakes, in the sense that cakes made without flour do worse than cakes made with flour – and we can do any number of experiments to demonstrate it – but flour will not work without a rising agent, eggs, and butter – the helping factors that are needed for the flour to 'cause' the cake."

Deaton's critiques of foreign aid stem from his natural skepticism of how people use -- and abuse -- economic data to advance their arguments. The science of measuring economic effects is much more important, much harder and more controversial than we usually think, he told The Post.

Acemoglu said of Deaton: "He's challenging, and he's sharp, and he's extremely critical of things he thinks are shoddy and things that are over-claiming. And I think the foreign aid area, that policy arena, really riled him up because it was so lacking in rigor but also so grandiose in its claims."

Deaton doesn't argue against all types of foreign aid. In particular, he believes that certain types of health aid – offering vaccinations, or developing cheap and effective drugs to treat malaria, for example -- have been hugely beneficial to developing countries.

But mostly, he said, the rich world needs to think about "what can we do that would make lives better for millions of poor people around the world without getting into their economies in the way that we're doing by giving huge sums of money to their governments." Overall, he argues that we should focus on doing less harm in the developing world, like selling fewer weapons to despots, or ensuring that developing countries get a fair deal in trade agreements, and aren't harmed by U.S. foreign policy decisions.

Deaton also believes that our attitude toward foreign aid – that developed countries ought to swoop in and save everyone else – is condescending and suspiciously similar to the ideas of colonialism. The rhetoric of colonialism, too, "was all about helping people, albeit about bringing civilization and enlightenment to people whose humanity was far from fully recognized," he has written.

Instead, many of the positive things that are happening in Africa – the huge adoption in cell phones over the past decade, for example – are totally homegrown. He points out that, while the world has made huge strides in reducing poverty in recent decades, almost none of this has been due to aid. Most has been due to development in countries like China, which have received very little aid as a proportion of gross domestic product and have "had to work it out for themselves."

Ultimately, Deaton argues that we should stand aside and let poorer countries develop in their own ways. "Who put us in charge?" he asks.

Inequality

[Jun 26, 2017] I hate the the use of word THE POOR by neoliberal politicians It is an insult like deplorable

Notable quotes:
"... "Struggling " is a far better term if we need a category for distressed citizens. Jobless of course leaves out The huge Category of low wage short hours households. Liberals want to help, want to be charitable, but the real social blight is lack of opportunity to make a decent living thru wage work ..."
"... Safety nets are not necessary if opportunity provides alternatives. More jobs more hours ..."
"... And instead we curb the jobs and hours expansion rate because we refuse to socialize even in part the pricing mechanism ..."
"... That was war time and we "tolerated" rations and price boards for the war effort ..."
"... A similar sense of urgency however can be instilled if leading circles embrace the effort ..."
"... We moved from the landed aristocracy to the landed gentry. Democracy still remains to be seen in full light of day, even relatively representative. ..."
"... Distribution system of US/EU capitalism has failed. [It is a ] systemic plunder* it passed ..."
"... Well yeah, but that is the best that we can get with largely unanswerable elites in charge of everything. Patronizing triangulation is the natural modus operandi for republican politics under a system of dollar democracy and arcane rules of compartmentalized representation. Sure, pure democracy is too cumbersome, but would a rough approximate of representativeness be too much to ask? ..."
Mar 11, 2017 | economistsview.typepad.com
Paine : March 11, 2017 at 05:49 AM
I hate the the use of word "THE POOR " by liberal politicians It's like deplorable It's an insult

"Struggling " is a far better term if we need a category for distressed citizens. Jobless of course leaves out The huge Category of low wage short hours households. Liberals want to help, want to be charitable, but the real social blight is lack of opportunity to make a decent living thru wage work
Wage rates and hours

Households cope with this blight. They struggle tinline and hold on to some happiness in the Jeffersonian use of the word happiness

Paine -> Paine... , March 11, 2017 at 05:58 AM
Safety nets are not necessary if opportunity provides alternatives. More jobs more hours

And instead we curb the jobs and hours expansion rate because we refuse to socialize even in part the pricing mechanism

We know what potential for mobilizing idle hours exits thru correct and adequate micro nautics We did this in 1940 - 44

That was war time and we "tolerated" rations and price boards for the war effort

A similar sense of urgency however can be instilled if leading circles embrace the effort

A war on browning

But first the Threat of global browning. Has to become real in the minds of The citizenry

RC AKA Darryl, Ron -> kthomas... , March 11, 2017 at 08:10 AM
Most people are complicated and Thomas Jefferson was no exception. The better part of him was associated with James Maddison and largely came from Thomas Paine.

But TJ had far too many personal problems to be held up like a saint. To be fair his time was well before even a faint glimmer of effective democracy during the dawn of the modern quasi-electorally appointed republic, an institution designed to emphasize property rights economic and political efficacy over inherited bloodlines.

We moved from the landed aristocracy to the landed gentry. Democracy still remains to be seen in full light of day, even relatively representative.

ilsm -> Paine... , March 11, 2017 at 07:32 AM
Distribution system of US/EU capitalism has failed. [It is a ] systemic plunder* it passed

l'audace, l'audace toujour l'audace

RC AKA Darryl, Ron -> Paine... , March 11, 2017 at 08:17 AM
Well yeah, but that is the best that we can get with largely unanswerable elites in charge of everything. Patronizing triangulation is the natural modus operandi for republican politics under a system of dollar democracy and arcane rules of compartmentalized representation. Sure, pure democracy is too cumbersome, but would a rough approximate of representativeness be too much to ask?

[May 04, 2017] The entire spectrum of political thought from the neoliberal center to the reactionary right is really about setting up punitive systems of coercion and control. by their bootstraps, and if they dont then they deserve all the cruelty that can be heaped upon them.

Notable quotes:
"... The poor [under neoliberalism] are errant children who need to be molded. Conservatives may whine about the "nanny state" but what they really want to see is either the negligent mommy state or the abusive daddy state. They want to "help" the poor the way a drill instructor wants to help you learn to obey and kill. And remember: it's for your own good. Perhaps I am being unfair, but beneath the platitudes this seems to be the motivating ideology of too much of the contemporary governing class. ..."
May 04, 2017 | www.nakedcapitalism.com

The poor [under neoliberalism] are errant children who need to be molded. Conservatives may whine about the "nanny state" but what they really want to see is either the negligent mommy state or the abusive daddy state. They want to "help" the poor the way a drill instructor wants to help you learn to obey and kill. And remember: it's for your own good. Perhaps I am being unfair, but beneath the platitudes this seems to be the motivating ideology of too much of the contemporary governing class.

[Apr 11, 2017] The How Ayn Rand became the new rights version of Marx

Notable quotes:
"... Ignoring Rand's evangelical atheism, the Tea Party movement has taken her to its heart. No rally of theirs is complete without placards reading "Who is John Galt?" and "Rand was right". Rand, Weiss argues, provides the unifying ideology which has "distilled vague anger and unhappiness into a sense of purpose". She is energetically promoted by the broadcasters Glenn Beck, Rush Limbaugh and Rick Santelli. She is the guiding spirit of the Republicans in Congress. ..."
"... Like all philosophies, Objectivism is absorbed, secondhand, by people who have never read it. ..."
"... It is not hard to see why Rand appeals to billionaires. She offers them something that is crucial to every successful political movement: a sense of victimhood. She tells them that they are parasitized by the ungrateful poor and oppressed by intrusive, controlling governments. ..."
Apr 11, 2017 | www.theguardian.com

Her psychopathic ideas made billionaires feel like victims and turned millions of followers into their doormats

It has a fair claim to be the ugliest philosophy the postwar world has produced. Selfishness, it contends, is good, altruism evil, empathy and compassion are irrational and destructive. The poor deserve to die; the rich deserve unmediated power. It has already been tested, and has failed spectacularly and catastrophically. Yet the belief system constructed by Ayn Rand , who died 30 years ago today, has never been more popular or influential.

Rand was a Russian from a prosperous family who emigrated to the United States. Through her novels (such as Atlas Shrugged) and her nonfiction (such as The Virtue of Selfishness) she explained a philosophy she called Objectivism. This holds that the only moral course is pure self-interest. We owe nothing, she insists, to anyone, even to members of our own families. She described the poor and weak as "refuse" and "parasites", and excoriated anyone seeking to assist them. Apart from the police, the courts and the armed forces, there should be no role for government: no social security, no public health or education, no public infrastructure or transport, no fire service, no regulations, no income tax.

Atlas Shrugged, published in 1957, depicts a United States crippled by government intervention in which heroic millionaires struggle against a nation of spongers. The millionaires, whom she portrays as Atlas holding the world aloft, withdraw their labour, with the result that the nation collapses. It is rescued, through unregulated greed and selfishness, by one of the heroic plutocrats, John Galt .

The poor die like flies as a result of government programmes and their own sloth and fecklessness. Those who try to help them are gassed. In a notorious passage, she argues that all the passengers in a train filled with poisoned fumes deserved their fate. One, for instance, was a teacher who taught children to be team players; one was a mother married to a civil servant, who cared for her children; one was a housewife "who believed that she had the right to elect politicians, of whom she knew nothing".

Rand's is the philosophy of the psychopath, a misanthropic fantasy of cruelty, revenge and greed. Yet, as Gary Weiss shows in his new book, Ayn Rand Nation, she has become to the new right what Karl Marx once was to the left: a demigod at the head of a chiliastic cult. Almost one third of Americans, according to a recent poll, have read Atlas Shrugged, and it now sells hundreds of thousands of copies every year.

Ignoring Rand's evangelical atheism, the Tea Party movement has taken her to its heart. No rally of theirs is complete without placards reading "Who is John Galt?" and "Rand was right". Rand, Weiss argues, provides the unifying ideology which has "distilled vague anger and unhappiness into a sense of purpose". She is energetically promoted by the broadcasters Glenn Beck, Rush Limbaugh and Rick Santelli. She is the guiding spirit of the Republicans in Congress.

Like all philosophies, Objectivism is absorbed, secondhand, by people who have never read it. I believe it is making itself felt on this side of the Atlantic: in the clamorous new demands to remove the 50p tax band for the very rich, for instance; or among the sneering, jeering bloggers who write for the Telegraph and the Spectator, mocking compassion and empathy, attacking efforts to make the word a kinder place.

It is not hard to see why Rand appeals to billionaires. She offers them something that is crucial to every successful political movement: a sense of victimhood. She tells them that they are parasitized by the ungrateful poor and oppressed by intrusive, controlling governments.

It is harder to see what it gives the ordinary teabaggers, who would suffer grievously from a withdrawal of government. But such is the degree of misinformation which saturates this movement and so prevalent in the US is Willy Loman syndrome (the gulf between reality and expectations) that millions blithely volunteer themselves as billionaires' doormats. I wonder how many would continue to worship at the shrine of Ayn Rand if they knew that towards the end of her life she signed on for both Medicare and social security. She had railed furiously against both programmes, as they represented everything she despised about the intrusive state. Her belief system was no match for the realities of age and ill health.

But they have a still more powerful reason to reject her philosophy: as Adam Curtis's BBC documentary showed last year, the most devoted member of her inner circle was Alan Greenspan , former head of the US Federal Reserve. Among the essays he wrote for Rand were those published in a book he co-edited with her called Capitalism: the Unknown Ideal . Here, starkly explained, you'll find the philosophy he brought into government. There is no need for the regulation of business – even builders or Big Pharma – he argued, as "the 'greed' of the businessman or, more appropriately, his profit-seeking is the unexcelled protector of the consumer". As for bankers, their need to win the trust of their clients guarantees that they will act with honour and integrity. Unregulated capitalism, he maintains, is a "superlatively moral system".

Once in government, Greenspan applied his guru's philosophy to the letter, cutting taxes for the rich, repealing the laws constraining banks, refusing to regulate the predatory lending and the derivatives trading which eventually brought the system down. Much of this is already documented, but Weiss shows that in the US, Greenspan has successfully airbrushed history.

Despite the many years he spent at her side, despite his previous admission that it was Rand who persuaded him that "capitalism is not only efficient and practical but also moral", he mentioned her in his memoirs only to suggest that it was a youthful indiscretion – and this, it seems, is now the official version. Weiss presents powerful evidence that even today Greenspan remains her loyal disciple, having renounced his partial admission of failure to Congress.

Saturated in her philosophy, the new right on both sides of the Atlantic continues to demand the rollback of the state, even as the wreckage of that policy lies all around. The poor go down, the ultra-rich survive and prosper. Ayn Rand would have approved.

Twitter: @georgemonbiot

A fully referenced version of this article can be found at www.monbiot.com

Blaming the Poor for Poverty by Lawrence Davidson

Nov 04, 2013 | To the Point Analyse

Most of the poverty in the United States is artificially manufactured. It is poverty created in the pursuit of "free market ideals," expressed in recent times by the imposition of neoliberal economic policies – the sort of policies that cut taxes on the wealthy, do away with fiscal and other business regulations, shred the social safety net, and erode middle-class stability – all while singing the praises of self-reliance and individual responsibility.

As a result we have done very well in making the rich richer and the poor both poorer and more numerous.

How many poor people are there in the United States? According to Current Population Survey (CPS), which puts out the government's official figures, as of 2012 about 15 percent of the population, or some 46.5 million people, were living in poverty. The rate for children under 18 comes in higher, at about 21.8 percent.

The U.S. government measures poverty in monetary terms. In 2012 poverty was defined as yearly total income of $23,050 or less for a family of four. The figure is adjusted for individuals or other size families. Then there is the depressing fact that "most Americans (58.5 percent) will spend at least one year below the poverty line at some point between the ages of 25 and 75."

There happens to be more than one level to this economic version of hell, and so we should take note of the category of "deep poverty." Deep poverty is defined as having an income that is 50 percent of the official poverty level. This part of the population is growing.

In my area, which takes in southeast Pennsylvania and southern New Jersey, the percentage in deep poverty runs from 5 to 19 percent, depending on the county. These are people who, according to social service and charity workers, "have given up hope" and "given up on finding jobs."

Consider what all this really means. Our economic system is condemning at least 48.5 million people to high rates of un- or underemployment, poor performance in school and at work (when it is available), poor nutrition and eating habits, high instances of drug abuse, high crime rates, homelessness, high rates of preventable diseases, shorter life-spans, and all the other vicissitudes typically associated with a life of poverty.

Yet neoliberals and their allies would say none of this is society's fault or responsibility, rather it is the fault of the individual who, living in a "free" economic environment, makes his or her own choices and then must live with the consequences.

Well, that is one particularly inhumane way of looking at the situation. However, we have proof from relatively recent U.S. history that poverty can be ameliorated through government action without seriously disrupting "market choice."

Back in the mid-1960s millions of citizens marched on Washington for "jobs and freedom," and President Lyndon Johnson responded with his War on Poverty programs. Those programs reduced poverty significantly and did so without transforming the U.S. into a socialist republic. Unfortunately, this momentum was not to last.

Two things brought it to a crashing halt: a murderous war in Vietnam and the tragically wrongheaded neoliberal economic policies mentioned above. We are still stuck in this rut. We are still at war (though now it is in the Middle East) and our economic policies continue to be self-destructive.

Cognitive Dysfunction

The neoliberal outlook is demonstrably wrong in a significant way. The notion that the poor can make "free and rational choices" and thus can be held responsible for their situation is incorrect. There is accumulating evidence that poverty literally "messes with your mind" in a way that obstructs responsible choices.

In fact, the "free market" contributes to an environment that makes the poor decidedly unfree: confused, preoccupied, and feeling overwhelmed and hopeless. In other words, being poor makes you cognitively dysfunctional.

The latest research to show this was published in August 2013 in the journal Science and is titled "Poverty Impedes Cognitive Function." The gist of the argument is, "Poverty captures attention, triggers intrusive thoughts, and reduces cognitive resources." In other words, the more preoccupied one is with troubles, the less able one is to muster the "cognitive resources" necessary to rationally "guide choice and action."

Most people find themselves overwhelmed with problems now and then, but not constantly. What living in poverty does is to hit a person with a toxic cocktail of overwhelming problems day in and day out: financial problems, health problems, parenting issues, victimization by criminals and others, and the problem of just finding and keeping a job.

The authors also point out that the IQ difference between those living in poverty and those living above the poverty line can be as high as 13 points. This difference is not a function of genetics or race. It is created by the environment of poverty itself.

This study is political dynamite. It lends support to the assertion that as long as neoliberal economics claims our allegiance, we will continue to condemn tens of millions of our citizens to a life not only of want, but also of high anxiety and poor cognitive ability. This puts the lie to the popular myth that the poor are disadvantaged because most of them are congenitally lazy.

It likewise challenges the conclusions of such works as Richard Herrnstein and Charles Murray's The Bell Curve, which attributed at least part of the statistical difference in intellectual performance between American blacks and white to genetics. In truth, whatever statistical difference there is does not reflect inherent intellectual ability so much as high levels of long-term stress, which reduces a person's ability to develop and apply their cognitive strengths.

It is quite interesting how the authors of the Science article conclude their piece. As it turns out, they have chosen to sidestep the real implications of their own data. Thus, they tell us "this perspective has important policy implications. First, policy-makers should beware of imposing cognitive taxes on the poor."

What does that mean? It means that policy-makers should try to reduce the number of forms the poor have to fill out, the number of "lengthy interviews" they have to experience, the number of "new rules" they have to "decipher," all of which "consume cognitive resources" that we now know the poor have less of than those who are better off.

Also, policy-makers should time their demands on the poor for specific periods when they are best able to handle them, such as when they receive whatever periodic income that they do get and momentarily feel less monetary stress. These conclusions constitute a rather shocking anticlimactic letdown!

The authors have helped us see the enormous damage poverty does. In response society has a moral obligation to deal with more than forms and lengthy interviews. History tells us that we can do, and indeed have done, much better.

Short of radical changes in our economic thinking, what the poor in the U.S. need is another "War on Poverty." Indeed, the obligation is not just a moral one. There is a collective economic self-interest to minimize poverty for to do so will decrease income inequality, increase overall health, promote social stability and lessen crime. It will also promote consumption, which should make the capitalists among us happy.

Do our politicians understand any of this? Seems not. Just this week the House of Representatives voted to cut the Food Stamp program by some $40 billion. That is neoliberal economics in action and proof positive that ideology and prejudice are stronger than scientific research when it comes to policy formulation.

Is there a way to reverse this stupidity? Yes, but it will take mass action. It is time to consider replaying the 1960s and force the politicians to act responsibly despite themselves.

This piece was reprinted by Truthout with permission or license. It may not be reproduced in any form without permission or license from the source.

Lawrence Davidson teaches history at West Chester University and is the author of "Foreign Policy Inc.: Privatizing America's National Interest" and two other books.

On David Brooks and the "Moral Failures" of the Poor by Emmett Rensin

In These Times

On David Brooks and the "Moral Failures" of the Poor

We aren't bereft of morals, as Brooks argues-we are plagued with bad ones that blame the poor for their own condition.

There is a moral failure at the bottom of American poverty-but this failure does not belong to its own victims.

David Brooks believes that the hardships of poverty are the wages of sin. He calls it "The Cost of Relativism."

In Tuesday's New York Times, Brooks discussed the recent publication of Our Kids by Robert Putnam, the Harvard social scientist most famous for his book Bowling Alone. Our Kids, according to Brooks, is one of those books that has become so necessary under the idolatry of data, the kind that gives empirical credence to what any fool could've guessed: in this case, it is that the children of America's poorer high school graduates fare far worse than those of well-off college grads.

Brooks's column, meanwhile, is one of those little essays that have become inevitable in the era of his implacable employment, the kind that lends the comfort of confirmation bias to what Brooks already believes-in this case, that the root of the American underclass's supposed dysfunction is the moral failures of the impoverished.

Brooks knows that life for America's poor is becoming worse. But he does not believe that sympathy, strong social welfare policies or increased wages can constitute a cure. Rather, he sees the desperate minds of his generation "destroyed by a plague of nonjudgementalism"; starving for the return of "norms" to "hold them responsible." "There are no basic codes and rules woven into daily life," he says, and it is this absence-the refusal of society "to assert that one way of behaving [is] better than another"-that has brought about the declining quality of life for America's poor.

"People got out of the habit of setting standards or understanding how they were set," he writes. If only the least among us possessed enough moral courage to ask themselves tough questions. If only they could consider whether they're living "for short-term pleasure or long-term good," "for yourself or for your children," whether they "have the freedom of self-control" or are "in bondage to [their] desires." If only the poor were beacons of virtue-then perhaps their children would have a shot at the American Dream.

I am not surprised that David Brooks believes these things. I am not surprised that he argues for them with the kind of half-hearted bluster of a crank at last call, more tired than drunk on his own posturing. Reading between his lines these last few years, all I can see is "somebody please put me out of my misery" scrawled over and over on a prison wall. I imagine Brooks is as eager as anyone to discover how long this strange self-parody can last before an editor catches on. I comfort myself by believing that this is the secret curiosity guiding David Brooks these days.

Rather, I am concerned with how pervasive his logic of moral decay is in American life-not only on the Right, where we expect it, but in the celebrated good intentions of erstwhile "liberal" causes, in the programs of Democrats who ostensibly represent our viable near-left. I am concerned with the notion that the principle failure of poor parents is that they aren't enough like middle-class ones.

It is this idea that leads initiatives like Too Small to Fail, a nonprofit nominally led by Hillary Clinton, to spend significant sums of money buying bus banners and radio ads telling poor parents to read to their children-as if this is what will solve the educational achievement gap; as if "reading to your children" was principally responsible for higher test scores, despite the wealth of data demonstrating over and over that wealth and poverty are the strongest determining factors in American children's educational achievement (when as little as a few thousand dollars cash given to the parents of poor children can push as many as 10% of them over the threshold to a collegiate future). No, Too Small to Fail says, the trouble is that poor parents don't have the habits of rich ones.

It is this idea, too, that allows even President Barack Obama to advocate "responsibility" and "fatherhood" among black parents as a cure for what ails them-as if, despite being more involved in the lives of their children than any other demographic of single parents, the thing holding back our black underclass is the breakdown of Brooks's "basic codes" and not the systematic plunder of their wealth over the course of centuries. It is what allows him to recognize the growth of income inequality in one breath while insisting that a little free community college will meaningfully impact it. As if median income didn't divorce itself from productivity a generation ago, and had the two metrics remained together, the difference would be $40,000 per year, per median family. No, it's only that poor Americans are doing it to themselves through a lack of moral fiber.

It is this idea that animates commentary on the condition of Chicago, where we are presently enduring a mayoral election wherein the incumbent Democrat Rahm Emanuel insists his closure of 49 public schools was a necessary response to the schools' low test scores and the fact that these campuses were "underutilized." As if it's only an unhappy accident that 90% of the students so affected were poor and black or Latino.

It would be one thing if we didn't recognize the problem of American poverty. It would be easy if the moral scolding of our poor were confined to one section of our polity. Then we might pursue the many avenues of fiscal and monetary policy available to us. But among even those whose rhetoric suggests an awareness of the situation, even those who know that to be born monied in America is to be heir to a self-fulfilling prophesy of the kind of "good" behavior Brooks is crying out for, are so easily seduced by a reversal of effect and cause.

But out here, poor parents, poor kids and poor schools don't have the luxury of indulging Brook's harmful, costly relativism. They live by the most inflexible "code" of our national life: If you're poor, you're on your own. Good luck. Oh, and we'll be watching. Future pay will reflect performance.

Brooks finds some empathy in the end. "Every parent loves his or her children", he writes. "Everybody struggles. But we need ideals and standards to guide the way."

I can't disagree. But the thing is, we're not operating without standards. We're not without the unconscious rules, absorbed and followed, that David Brooks desires. We aren't bereft of ideals. Rather, we are plagued with bad ones-that discipline is proved by wealth, that the ideas of middle class luxury help children more than material wealth.

A better set might be the kind that makes the elected, empowered, ostensible advocates of America's poor ask "tough questions" about their culpability in the condition of "our kids." The kind that recognizes that there is a moral failure at the bottom of American poverty-but this failure does not belong to its own victims.

[Nov 06, 2016] Putin Tells Everyone Exactly Who Created ISIS - YouTube

Nov 06, 2016 | www.youtube.com
Published on Oct 1, 2015

Here's something you probably never saw or heard about in the west. This is Putin answering questions regarding ISIS from a US journalist at the Valdai International Discussion Club in late 2014.

dornye easton 2 hours ago

The White house and and the CIA ARE THE ONES causing this !!

Gilbert Sanchez 2 weeks ago

from the U.S.. much love for you Putin. you really opened the eyes of many, even in our country. this man is the definition of president and the u.s hasnt had one for over 40 years... smh.

IronClad292 2 weeks ago

As an American I can say that all of this is very confusing. However, one thing I believe is true, Obama and Hillary are the worst thing to ever happen to my country !!!! Average Americans don't want war with Russia. Why would we ?? The common people of both countries don't deserve this !!!!

lown baby 9 hours ago

We need Trump to restore our ties with the rest of the world or we are screwed!

david wood 3 months ago

He pretty much [said] that the President is a complete fucking idiot. I can't argue with him.

simon6071 6 days ago (edited)

+Emanuil Penev Obama is a human puppet who chose to be controlled, He is therefore culpable for his action of supporting Islamic terrorists. Right now Islamic invasion of western countries is the real problem. The USA is now under the control of Obama the Muslim Trojan horse who wants the world to be under the rule of an Islamic empire. USA's military action in the Middle East is the result of USA being under occupation by a Muslim Trojan horse that wants to create tidal waves of Muslim refugees harboring Muslim radicals and terrorists for invading Europe and the USA. Watch video (copy and paste for search) *From Europe to America The Caliphate Muslim Trojan Horse The USA is a victim, not a culprit, in the Muslim invasion of western counties. Obama and his cohorts are the culprits.

StarWarLean 38 minutes ago

America has become the evil empire

Nicholas Villegas 2 days ago

I hope we get better president and will have better ties and relations with Russia

machinist1337 1 month ago

basically Russia wants to be friends with America again and America ain't having it. they have the capabilities to set up shop all around the world. it's like putting guard towers in everyone's lawn just in case somebody wants commit crime. but you never see inside the towers or know who is in them but they have giant guns mounted on them ready to kill. that's how Putin feels. I mean I get it but every other country has nukes. get rid of the nukes and the missile defense will go away. if the situation were reversed it would be out president voicing this frustration. but Putin said it, America is a good example of success that's what Russia needs to do is be more like America. they have been doing it in the last year or so. I think America will come around and we will have good relations with Russia again. so wait... did we support isis as being generally isis or support all Qaeda / Saddam's regime which lead to isis??

Brendon Charles 2 months ago

The US supported multiple Rebel Groups that fought against Syria, they armed them, gave them money, and members of those groups split up and formed more Rebel groups or joined different ones. ISIS (at the time, not as large) was supported by the rebel groups the US armed and they got weapons and equipment from said Rebel Groups, even manpower as well.. That is how ISIS came to be the threat it is today.

benD'anon fawkes 3 months ago

putin doesnt view the us as a threat to russia..?? he has said countless times that he considers the us as a threat.. and that russian actions are a result of us aggression

indycoon 3 months ago (edited)

US people are a threat for all the world because they are not interested in politics, they don't want to know truth, they believe to their one-sided media and allow their government and other warmongers in the US military industry to do whatever they wish all over the world. US politics are dangerous and lead to a new big war where US territory won't stay away this time. It''s time for Americans to understand it. If you allow your son to become a criminal, don't be surprised that your house will be burned some day.

Wardup04 1 day ago

Obama and Clinton are progressive evil cunts funded by Soros. Their decision making is calculated and they want these horrendous results because it weakens the US and benefits globalism. Putin kicked the globalists the fuck out, and when Trump wins he will do the same! They are scared shitless. TRUMP/PENCE 2016

ThePoopMaster01 1 week ago

It's pretty sad when RT is more trustworthy than all other mainstream news networks

Michael Espeland 3 days ago

Someone owns mainstream media, so. Yeah. The rest is kinda self-explanatory

Daniel Gyllenbreider 1 month ago

With a stupid and warmongering opponent such as the USA, Russia do not need to construct a narrative or think out some elaborate propaganda. Russia simply needs to speak the truth. And this is why the US and its puppets hates Russia and Putin so much.

[Aug 06, 2016] Vladimir Putin Issued a Chilling Warning to the United States

Notable quotes:
"... Russia is aware of the United States' plans for nuclear hegemony ..."
"... The Russian president also highlighted the fact that although the United States missile system is referred to as an "anti-missile defense system," the systems are just as offensive as they are defensive: ..."
"... Putin further explained the implications of this missile defense system's implementation without any response from Russia. The ability of the missile defense system to render Russia's nuclear capabilities useless would cause an upset in what Putin refers to as the "strategic balance" of the world. Without this balance of power, the U.S. would be free to pursue their policies throughout the world without any tangible threat from Russia. Therefore, this "strategic balance," according to Putin, is what has kept the world safe from large-scale wars and military conflicts. ..."
Aug 04, 2016 | theantimedia.org

(ANTIMEDIA) As the United States continues to develop and upgrade their nuclear weapons capabilities at an alarming rate, America's ruling class refuses to heed warnings from President Vladimir Putin that Russia will respond as necessary.

In his most recent attempt to warn his Western counterparts about the impending danger of a new nuclear arms race, Putin told the heads of large foreign companies and business associations that Russia is aware of the United States' plans for nuclear hegemony. He was speaking at the 20th St. Petersburg International Economic Forum.

"We know year by year what will happen, and they know that we know," he said.

Putin argued that the rationale the U.S. previously gave for maintaining and developing its nuclear weapons system is directed at the so-called "Iranian threat." But that threat has been drastically reduced since the U.S. proved instrumental in reaching an agreement with Iran that should put to rest any possible Iranian nuclear potential.

The Russian president also highlighted the fact that although the United States missile system is referred to as an "anti-missile defense system," the systems are just as offensive as they are defensive:

"They say [the missile systems] are part of their defense capability, and are not offensive, that these systems are aimed at protecting them from aggression. It's not true the strategic ballistic missile defense is part of an offensive strategic capability, [and] functions in conjunction with an aggressive missile strike system."

This missile system has been launched throughout Europe, and despite American promises at the end of the Cold War that NATO's expansion would not move "as much as a thumb's width further to the East," the missile system has been implemented in many of Russia's neighboring countries, most recently in Romania.

Russia views this as a direct attack on their security.

"How do we know what's inside those launchers? All one needs to do is reprogram [the system], which is an absolutely inconspicuous task,"

Putin stated.

Putin further explained the implications of this missile defense system's implementation without any response from Russia. The ability of the missile defense system to render Russia's nuclear capabilities useless would cause an upset in what Putin refers to as the "strategic balance" of the world. Without this balance of power, the U.S. would be free to pursue their policies throughout the world without any tangible threat from Russia. Therefore, this "strategic balance," according to Putin, is what has kept the world safe from large-scale wars and military conflicts.

Following George W. Bush's 2001 decision to unilaterally withdraw the U.S. from the 1972 Antiballistic Missile Treaty, Russia was, according to Putin, left with no choice but to upgrade their capabilities in response.

Putin warned:

"Today Russia has reached significant achievements in this field. We have modernized our missile systems and successfully developed new generations. Not to mention missile defense systems We must provide security not only for ourselves. It's important to provide strategic balance in the world, which guarantees peace on the planet.

Under the guise of following an anti-nuclear weapons policy, the Obama administration has announced plans for a $1 trillion nuclear weapons plan, which - let's face it - is targeted at Russia.

Neutralizing Russia's nuclear potential will undo, according to Putin, "the mutual threat that has provided [mankind] with global security for decades."

There is no winner in a nuclear war between Russia and the United States. This has been not only confirmed but repeatedly warned about by atomic scientists who - if we are being honest - are the people whose opinion on this topic should matter the most.

It should, therefore, come as no surprise that NASA scientists want to colonize the moon by 2022 - we may have to if we don't drastically alter the path we are on. As Albert Einstein famously stated:

"I know not with what weapons World War III will be fought, but World War IV will be fought with sticks and stones."

This article (Vladimir Putin Just Issued a Chilling Warning to the United States) is free and open source. You have permission to republish this article under a Creative Commons license with attribution to Darius Shahtahmasebi and theAntiMedia.org. Anti-Media Radio airs weeknights at 11 pm Eastern/8 pm Pacific. If you spot a typo, please email the error and name of the article to edits@theantimedia.org.

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Groupthink : Two Party System as Polyarchy : Corruption of Regulators : Bureaucracies : Understanding Micromanagers and Control Freaks : Toxic Managers :   Harvard Mafia : Diplomatic Communication : Surviving a Bad Performance Review : Insufficient Retirement Funds as Immanent Problem of Neoliberal Regime : PseudoScience : Who Rules America : Neoliberalism  : The Iron Law of Oligarchy : Libertarian Philosophy

Quotes

War and Peace : Skeptical Finance : John Kenneth Galbraith :Talleyrand : Oscar Wilde : Otto Von Bismarck : Keynes : George Carlin : Skeptics : Propaganda  : SE quotes : Language Design and Programming Quotes : Random IT-related quotesSomerset Maugham : Marcus Aurelius : Kurt Vonnegut : Eric Hoffer : Winston Churchill : Napoleon Bonaparte : Ambrose BierceBernard Shaw : Mark Twain Quotes

Bulletin:

Vol 25, No.12 (December, 2013) Rational Fools vs. Efficient Crooks The efficient markets hypothesis : Political Skeptic Bulletin, 2013 : Unemployment Bulletin, 2010 :  Vol 23, No.10 (October, 2011) An observation about corporate security departments : Slightly Skeptical Euromaydan Chronicles, June 2014 : Greenspan legacy bulletin, 2008 : Vol 25, No.10 (October, 2013) Cryptolocker Trojan (Win32/Crilock.A) : Vol 25, No.08 (August, 2013) Cloud providers as intelligence collection hubs : Financial Humor Bulletin, 2010 : Inequality Bulletin, 2009 : Financial Humor Bulletin, 2008 : Copyleft Problems Bulletin, 2004 : Financial Humor Bulletin, 2011 : Energy Bulletin, 2010 : Malware Protection Bulletin, 2010 : Vol 26, No.1 (January, 2013) Object-Oriented Cult : Political Skeptic Bulletin, 2011 : Vol 23, No.11 (November, 2011) Softpanorama classification of sysadmin horror stories : Vol 25, No.05 (May, 2013) Corporate bullshit as a communication method  : Vol 25, No.06 (June, 2013) A Note on the Relationship of Brooks Law and Conway Law

History:

Fifty glorious years (1950-2000): the triumph of the US computer engineering : Donald Knuth : TAoCP and its Influence of Computer Science : Richard Stallman : Linus Torvalds  : Larry Wall  : John K. Ousterhout : CTSS : Multix OS Unix History : Unix shell history : VI editor : History of pipes concept : Solaris : MS DOSProgramming Languages History : PL/1 : Simula 67 : C : History of GCC developmentScripting Languages : Perl history   : OS History : Mail : DNS : SSH : CPU Instruction Sets : SPARC systems 1987-2006 : Norton Commander : Norton Utilities : Norton Ghost : Frontpage history : Malware Defense History : GNU Screen : OSS early history

Classic books:

The Peter Principle : Parkinson Law : 1984 : The Mythical Man-MonthHow to Solve It by George Polya : The Art of Computer Programming : The Elements of Programming Style : The Unix Hater’s Handbook : The Jargon file : The True Believer : Programming Pearls : The Good Soldier Svejk : The Power Elite

Most popular humor pages:

Manifest of the Softpanorama IT Slacker Society : Ten Commandments of the IT Slackers Society : Computer Humor Collection : BSD Logo Story : The Cuckoo's Egg : IT Slang : C++ Humor : ARE YOU A BBS ADDICT? : The Perl Purity Test : Object oriented programmers of all nations : Financial Humor : Financial Humor Bulletin, 2008 : Financial Humor Bulletin, 2010 : The Most Comprehensive Collection of Editor-related Humor : Programming Language Humor : Goldman Sachs related humor : Greenspan humor : C Humor : Scripting Humor : Real Programmers Humor : Web Humor : GPL-related Humor : OFM Humor : Politically Incorrect Humor : IDS Humor : "Linux Sucks" Humor : Russian Musical Humor : Best Russian Programmer Humor : Microsoft plans to buy Catholic Church : Richard Stallman Related Humor : Admin Humor : Perl-related Humor : Linus Torvalds Related humor : PseudoScience Related Humor : Networking Humor : Shell Humor : Financial Humor Bulletin, 2011 : Financial Humor Bulletin, 2012 : Financial Humor Bulletin, 2013 : Java Humor : Software Engineering Humor : Sun Solaris Related Humor : Education Humor : IBM Humor : Assembler-related Humor : VIM Humor : Computer Viruses Humor : Bright tomorrow is rescheduled to a day after tomorrow : Classic Computer Humor

The Last but not Least Technology is dominated by two types of people: those who understand what they do not manage and those who manage what they do not understand ~Archibald Putt. Ph.D


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Last modified: November, 03, 2018