Capitalism; Competitive Markets Cut To The Core; Inequity Is Inevitable
American propaganda - Capitalism (1948)
copyright © 2007 Betsy L. Angert. BeThink.org
Decades ago, Americans watched a televised spoof of current events, the Rowan and Martin Laugh-In Show. A cast of characters sang "What is the news across the nation?" Then they assessed the antics of politicians and celebrities alike. Serious situations were satirized; silliness was glorified. Americans were given an opportunity to reflect and see how sadly corrupt and irrational our competitive Capitalist system is. Exuberance envelops us. Avoidance advances. Americans consume, compete, and settle into complacency.
This week, as we again set aside time to honor laborers in America, this reality seemed ever-present. Labor's failure is perhaps industrialism at its best. Free enterprise follows the market or perchance it creates a product for America to buy.
In recent weeks, the American public was again able to purchase the absurdity that passes for news. The current craze streaming through the airwaves is Senator Larry Craig was arrested in an airport bathroom. Although he plead guilty after being accused of a crime, Idaho Senator Craig, stated, I did nothing 'inappropriate' in [an] airport bathroom. What the Senator did do, regardless of whether he solicited sex from a male officer or not, is provide Americans with another welcome distraction. That is glorious; that is entertainment! In a free-enterprise marketplace economy, we demand diversions. The truth of our status is too painful to bear,
The weighty news daunts and haunts us. There are moments that we wish to share what is thought significant to Americans as a whole. However, these are few and far between. U.S. Workers Are Most Productive. As we read this banner headline, we exclaim, 'Hooray!' America is still Number One!!! Citizens are reassured. The public need not look any further. Nor is there a need for the mainstream media to dwell. Citizens of this country are secure in their knowledge. This nation is great. The numbers support our sense of self, or at least this calculation does.
However, sadly, days later, we learn, 4-Year Growth in Jobs Ends; Dow Off 200. This pronouncement did not appear as prominently; nor did it receive the attention Larry Craig's resignation did. Few wanted to discuss the devastation in the job market or the blow to the economy.
Not only did the report show that there was no job growth last month, but it also found that the job market was significantly weaker in June and July than the government first reported. Revisions to earlier jobs reports showed that 81,000 fewer jobs were created than initially estimated.This bulletin is not novel. Buried in the back pages a thorough reader often finds words that might destroy the illusion. Opinion: Pay heed to needs of the American worker. However, statements such this are far less titillating. Sex sells. Super star sensationalism stimulates. A member of Congress in crisis is a celebrated chronicle. Accounts of Labor Day festivities, those filled with fun and folly can help to affirm America is on solid ground. Any information that attests to the good of Capitalism is treasured.
However, if we care to probe deeply, beyond the hype, we might question the system that leave its citizens steeped in debt, despair, and economic depression.
Just prior to Labor Day, John Sweeney, President of the AFL-CIO, [American Federation of Labor and Congress of Industrial Organizations] published an editorial that appeared in no more than one or two periodicals. Sweeney spoke of the plight of the American employee, the drudge. He discussed circumstances that are yours and mine. We, the laborers, the common folk that sustain this country, and make the United States great may wish to understand.
'What's wrong with America?" That's the question Steve Skvara, a disabled, retired steelworker, asked seven Democratic presidential candidates several weeks ago at the AFL-CIO Presidential Forum in Chicago. Skvara struggles to afford health care for himself and his wife after the company he worked for declared bankruptcy and abandoned its commitment to those who gave the best years of their lives to their employer.Yet, those with an empty stomachs are grateful for the smallest serving. In America, we are trained to believe there is a limited supply. Resources are scarce. There is only enough for a few. Some will have, others must work diligently to acquire a pittance. Citizens are reminded there is reason to hope. The news is filled with success stories. The masses are asked to suspend disbelief. They too must dream.As we approach Labor Day, many of America's workers are echoing Skvara's question.
Corporate greed and nearly seven years of wrong-headed Bush administration economic policies have fed a growing gap between the haves and have-nots. Americans are less secure about their jobs, retirement, health care, and standard of living.
The issue that Skvara so poignantly raised - health care - is on the mind of nearly every American.
Our system is broken; it's left 47 million without insurance coverage and millions more with inadequate or unaffordable care. Rising health costs are crippling families and making it harder for responsible businesses to compete. A recent study by the New York City Department of Health found that one of every six adults in New York has no health insurance, though nearly two-thirds of those without coverage have jobs.
Americans now work longer hours than workers in any other developed country, and as a result, we generate a whopping $13 trillion in income every year. Yet, at the richest moment in our nation's history, the wealthiest 1 percent claims more than 20 percent of the nation's income. As a result, workers have seen their slice of the economic pie shrink to a sliver.
In truth, opportunities are not equal. This reality may seem obvious if you are among a minority, or born poor. Nevertheless, even those that struggle to do well in America, aspire to greatness. After all, this is the land of the free market, free enterprise, freedom, and opportunity.
Citizens and immigrants alike believe as their great grandparents, grandmothers and grandfathers did. We trust in the words of Mom and Dad. America is the land of opportunity. People have faith that in America anyone can make good. Perhaps, early in our nation's history some did. Narratives are nuanced. Nonetheless, today there seems less reason to dream.
[T]he Pew Charitable Trust published the first of its studies on economic mobility. The nonpartisan project is taking input from top economists and researchers across the political spectrum in an effort to measure American mobility — the ability of a person to move up or down the income ladder.Our countrymen complain; yet, customarily, we accept, 'Life is not fair.' In the spirit of an entrepreneur, Americans believe. After all, in this great nation our Constitution confirms, "All men are created equal."The study finds that economic mobility in America is “less than has long been presumed.” It says economic mobility is actually declining for men in their 30s, who are doing worse (as a whole) than their father’s generation when measured by incomes: “This suggests that the up escalator that has historically ensured that each generation would do better than the last may not be working that well.”
The study also says that, based on other research, “about half of the advantages of having a parent with a high income are passed onto the next generation,” which means “one of the biggest predictors of an American child’s future economic success — the identity and characteristics of his or her parents — is predetermined and outside that child’s control.” In other words, the existing rich are just getting richer and the middle class tends to stay middle class.
Nevertheless, Economists theorize. Researchers reassure us, the reality that the 'rich get much richer' is a new phenomenon. It is only in recent years that the Middle Class struggles to sustain a comfortable life style. Always in the past, the poorest among us had a chance at success. In America, the streets are paved in gold. Anyone can make it here.
An individual merely needs to maintain that competitive edge. A word to the wise and those that want more, keep your chin up and nose to the grindstone. Pay your dues. Good comes to those that work hard for a living and wait. Americans accept these standards. Conventional wisdom serves to secure the workforce as is. We understand, We must keep hope alive if the USA is to remain Number One.
The public is encouraged to think the best of the current situation, regardless of reality. Rarely is the populace exposed to fiscal facts. The news is just too disturbing. Besides, in a market economy, actual statistics are dry. Data does not sell. Nor do formulas and figures entertain a society groomed to crave comedy, short stories, drama, and special effects. No one wants to know the myth is a manipulation, necessary to maintain inequality.
Recent studies suggest that there is less economic mobility in the United States than has long been presumed. The last thirty years has seen a considerable drop-off in median household income growth compared to earlier generations. And, by some measurements, we are actually a less mobile society than many other nations, including Canada, France, Germany, and most Scandinavian countries. This challenges the notion of America as the land of opportunity.Elected officials grasp, inequity is exceptionally good for the economy. Indeed, it is essential. Noted Liberal Senator, Barney Frank finds no fault with disparity. The Congressional Finance Chair merely struggles when the difference between the rich and poor is extreme. In a News Hour interview, on a day set aside to honor labor, no less, the Progressive Massachusetts representative concedes.Despite these potentially troubling findings, the current national economic debate remains focused too narrowly on the issue of inequality, leaving aside the more important core question of whether the foundation of opportunity, economic mobility, remains intact. As Federal Reserve chairman, Ben Bernanke recently noted: Although we Americans strive to provide equality of economic opportunity, we do not guarantee equality of economic outcomes, nor should we. Indeed, without the possibility of unequal outcomes tied to differences in effort and skill, the economic incentive for productive behavior would be eliminated, and our market-based economy — which encourages productive activity primarily through the promise of financial reward — would function far less effectively.
Inequality is a good thing. You don't have a capitalist system without it. But we are in a position now in which inequality is excessive.One might ask, in a system that promotes scarcity among the poor, and advances policies that allow the affluent to become more so, how can we expect any outcome other than what we witness today. Yet, Americans do not inquire why or how an economic system that requires inequality is adopted in a nation whose Constitution states, all men women, and children are of comparable worth.
Instead, common-folk suffer in silence. Individuals stress. People in this great country, the land of opportunity, blame themselves for not being better, or at least for not being the best they could be. Our countrymen are convinced the sky is the limit. They watch others on their televisions and think, someday.
Actors and actresses on the silver screen are larger than life. Surely, the audience thinks that could be me. Industrialists are featured in periodicals. We see them in commercials. Businessman and businesswoman write books. These Capitalist share their secrets. People are captivated by the promise that they too could become rich. Competitive drive is all we need.
The media, just as free enterprise Economists, remind us of this in each moment. Residents of this country are persuaded to cling to stories of celebrity, self-made millionaires, and corporate genius. The thought is, if he or she made it, so too can I. As much as Americans enjoy success stories, we much prefer tales of woe. Thus, for weeks now, we have been guided to the toilet. The Larry Craig story lives large. The Senator's sexual preference has been discussed with greater vigor than all other matters since it was first exposed. Howard Kurtz of Cable News Network's Reliable Sources offers his hypothesis for why this might be. He states.
Celebrity scandals have become embedded in the media's DNA. Every couple of days, it seems, somebody somewhere who's been mentioned in "People" or "US" or on "Access Hollywood" gets into some kind of trouble and we all start buzzing about it.Again, we might question why do Americans focus on the failures of the famous. Perhaps, other indulgences, such as sex, drugs, and drink have not significantly dulled the pain. Try as they might, people in this prolific territory, never seem able to compete with the images they have of themselves. Middle Americans do not often live up to their expectations. People become impatient with themselves and with all those around them.
Now comes "Entertainment Weekly" with a cover story on the 25 biggest celeb scandals of the past 25 years.
Residents in this wealthy nation want, they need. We cannot wait. After all, in movies, on television resolution and riches comes within minutes. Granted, people in the United States are greedy. As well they should be. Capitalism demands such an attitude. Immediate gratification is cultivated by corporate America. Once more, Journalist Howard Kurtz assesses this truth in his meta on the media. As Kurtz and his guest correspondents, digest the dynamic of media coverage as it pertains to hurricane Katrina, they accept what many of us perceive. During the tempest, there was much drama. Now two years after the storm, the interest in the circumstances and the people affected has died. The audience is flippant. They are a product of a competitive free-market society.
Kurtz: [O]bviously, John Dickerson, it lacks the drama of the hurricane itself, when you have people clinging to roofs and water rushing in. And, you know, anybody who goes there -- I went there about eight months after the storm -- is just struck by the continuing miles and miles of devastation and abandoned houses and all that. And you come back and you want to sort of tell the world about it. But in the world in which we live, it's got to compete with Michael Vick pleading guilty to dogfighting and Larry Craig and everything else.For the masses, much fades from memory, even when we marinate in what is. Distractions are often a welcome break. The miseryDickerson: That's right. And what was interesting is, after Katrina, there were a lot of people -- you know, even Condi Rice said we need to have a national conversation about race. And what everybody said was, you know, we had forgotten about this story of America's forgotten people and the poor before Katrina, so let's all think about it now. But now we've seen that that conversation, even after this devastating tragedy, has, in fact, shrunken away.
of another can be the source of great entertainment, particularly when, in a nation of lopsided wealth personal fulfillment does not seem possible in the near future.
A year ago, also on the Labor Day weekend, another report surfaced. Only the affirmative aspect of this study was considered suitable for distribution. The Public Says American Work Life Is Worsening, But Most Workers Remain Satisfied with Their Jobs. The qualifier is important to note. People may rant, 'We must make a change.' However, humans adapt easily. Mankind is comfortable when our essential needs are met. People gravitate towards the familiar. If we feel safe and secure in our knowledge, 'life is fine,' we will likely do little to alter what is.
Years ago, I lived in a roach infested studio apartment. I slept on a Murphy, pullout bed. The springs poked through the thin mattress. The stove in my minuscule kitchenette had two small burners. The furniture was used, dirty, and dilapidated. Nonetheless, I was content. Settling seemed more sane than venturing into the unknown. To others my state of affairs seemed sad. For me, all was good enough.
It is good to know, people adapt. They make due. This fact benefits those averse to accepting less than the best. In a Capitalist culture, the affluent must be certain there are those willing and able to serve. The underclass, if gratified with crumbs will continue to work for the wealthy. Thus, the rich can get richer and the economy survives. The elite among us thrive. The poor ultimately perish at an early age. No matter. Reproduction will help sustain the imbalance necessary for Capitalism to flourish. There will be a continual supply of underprivileged to meet the demands of the corporate class.
However, the health of the working class is in rapid decline. Few are able to prevent illness. Health insurance is frequently not provided by employers. Government programs are restrictive. In a Capitalist country, programs that might prevent illness are labeled, "Socialist" and therefore unacceptable. Let people fend for themselves. "Pull your self up by your boot straps," even if the price of foot-ware is beyond your reach.
Poverty Rate Up 3rd Year In a RowAs the years pass, we realize red flags remain ignored. The poor are not the only persons affected.Study: More Middle Class Uninsured. an income once thought opulent now is substandard.
More Also Lack Health Coverage
By Ceci Connolly and Griff Witte
Washington Post
Friday, August 27, 2004; Page A01The number of Americans living in poverty or lacking health insurance rose for the third straight year in 2003, the Census Bureau announced yesterday, reflecting a job market that failed to match otherwise strong economic growth.
Overall, the median household income remained stagnant at $43,318, while the national poverty rate rose to 12.5 percent -- 35.9 million people -- last year, from 12.1 percent in 2002. Hit hardest were women, who for the first time since 1999 saw their earnings decline, and children. By the end of 2003, 12.9 million children lived in poverty.
As expected, the number of people without health insurance grew last year, to 45 million -- an increase to 15.6 percent from 15.2 percent. White adults, primarily in the South, accounted for most of the increase. The proportion of people receiving health insurance through an employer fell to 60.4 percent, the lowest level in a decade, from 61.3 percent.
The census report provided hard numbers to anecdotal evidence that the recent recovery has missed certain regions and segments of the population. An additional 1.3 million Americans fell below the poverty line in 2003, as incomes dipped for the poorest 20 percent of the population. An additional 1.4 million became newly uninsured.
"This recovery has failed to reach those in the bottom half," said Jared Bernstein, a senior economist with the Economic Policy Institute.
Middle-Class Americans Join Ranks of Uninsured in 2006 as Private Coverage ShrinksNumber of Uninsured Swells 2.2 Million to 47 Million
15,000 Doctors: “Single Payer National Health Insurance is the Only Solution”
Chicago — The U.S. Census Bureau released data today showing that the number of uninsured Americans jumped by 2.2 million in 2006 to 47.0 million people, with nearly all the increase (2.03 million) concentrated among middle-class Americans earning over $50,000 per year, according to an analysis by Physicians for a National Health Program (PNHP). Strikingly, 1.4 million of the newly uninsured were in families making over $75,000 per year. An additional 600,000 were in families earning $50,000 to $75,000 per year. (The median household income in 2006 was $48,200).
“Middle income Americans are now experiencing the human suffering that comes with being uninsured. It makes any illness a potential economic and social catastrophe,” said Dr. Steffie Woolhandler, co-founder of Physicians for a National Health Program and Associate Professor of Medicine at Harvard Medical School.
When Americans have health insurance, the coverage is often inadequate. Half-truths flourish in a Capitalist culture. It is imperative we maintain the myth. However, we need only look at our own lives to realize the vibrancy of the "Middle Class" is not what we are led to believe.
Granted, more Americans may have color televisions. Cellular telephones are abundant. Much in the way of supposed material wealth fills our homes, or more honestly, the house the bank owns and we live in. Nonetheless, most of what we possess is not fully ours. We made the down payment on our wares and we continue to pay the bills. Our purchases ensure the economy will remain healthy.
In America, credit card debt is up. Homeownership is down. The miracle of a home ownership with a 'no money down' mortgage was merely a mirage. Ultimately, as might have been expected the bubble burst. Bankers did as the public does. They borrowed from Peter to pay Paul. Our pal Paul had investments on paper. His worth was inflated. Industrialists are able to create great illusions. Print more money; it is the magic cure.
For years, Americans believed as businesses invited them to do. All this can be yours. A signature is all that is required. Brokers said, 'You too can buy a beautiful home." Your good name is enough to secure a loan. Today, Mortgages in foreclosure at record high. The sub-prime fiasco is as much is in a Capitalist society, a front for failures.
We, as Americans fail to save dollars or cents, sense [sic.] We have no time or knowledge of how to do other than what we have done, keep up with the Jones's. It is a competitive world out there. Only the strong survive. Strength is measured in dollars. Yet, all that glitters is not gold.
In a world where inequity is thought excellence, there is much to consider. Americans may speak about a need to change. However, when asked to do so, we proclaim. I do not want to give up the creature comforts that destroy the environment.
Rarely, do we consider that if we work together to better the Earth for all it inhabitants equally, the quality of life will improve for everyone. We dare not contemplate industry and government together can create jobs that nurture nature. This topic is taboo. Government and industry, must remain separate. In truth, they never were in the United States. Capitalism spreads freedom, free enterprise, even as democracy, the free and equal right of every person to participate in a system of government, falters. Thus, we have it income inequity increases. The rich get richer. The masses sink further into oblivion.
Capitalism thrives for citizens of this great nation comply. They accept familiar and comfortable circumstances. It is far easier to do as we have done for centuries. People in this Capitalistic culture continue to claim this "civilized' lifestyle is unsurpassed. Certainly, no country is as great as ours.
Americans compete in a desire to feel complete. We shop until we drop. We drown our sorrows. Those in this, the wealthiest country on the planet, dive into drug-induced stupors. The general public hopes to find happiness. However, they must know, in a culture that breeds inequity, they are powerless.
An educated community exercises their right to free speech. Speaking out pacifies anxious Americans ; still frustration lingers. Ultimately, even the scholarly escape in various forms of entertainment. Men and women in this glorious nation gossip, indulge in rumors, and temporarily absorb themselves in reports to release the pressure. Capitalism and the active marketplace appease the masses and sustain the classes.
Thank goodness, Americans excel at avoidance and diversions are everywhere. If it were not for a Conservative Idaho Senator and his circumstances, Amid sex scandal, Senator Larry Craig resigns we might have to question the quality of a competitive market economy. So, embrace the fury. It is your duty as a Capitalist.
Capitalism, Inequity, and Deplete Resources . . .
Posted by Betsy L. Angert on September 7, 2007 at 01:00 PM in Americana, Capitalism and Competition, Economics, Income Inequity, Inequality in America, Labor, Employment | Permalink | Comments (0) | TrackBack
Business Blunders Burden Society ©
My reaction; I am not surprised. Years ago I was dating a man, a marvelous specimen of a person. He was bright, personable, loving, and truly amazing. I suspect he still is. Tom was the Vice President of a small; yet successful business. Millions of dollars passed through this company's hands perhaps daily, maybe it was monthly. I know not for sure. I am not much of a marketing person. My mind travels elsewhere. Nevertheless, I marveled at how the money flowed, what is was spent on, and what services were provided. Perhaps you would have as well.
You might have contemplated, as I did, what was not occurring. I trust you would have noticed in Tom's business, efficiency was lacking. The man working in and managing the warehouse was a wonder. I always felt as though without his leadership, the corporation would never continue to exist. In truth, I was astonished that this operation not only survived; it thrived! Perchance, you have seen similar.
This week, as in months past, I read articles that reminded me of my musing, "How do corporations, even communities function?" How do they stay alive. From what I observe the world is crumbling around us. Incompetence permeates society. Institutions house the ignorant or avoidant. I hope it is the latter. Nevertheless, whether people are unaware or uninformed they manage. How can this be. I offer the examples I see and saw. I ask you to assess for yourselves. What is going on in the business world?
GM Loss $2B Worse Than Thought
Automaker Now Estimates It Lost $10.6 Billion In 2005
Detroit, CBS News March 17, 2006AP) General Motors Corp. is increasing its previously-reported loss for 2005 by $2 billion as the world's largest auto maker gets a truer picture of the costs of bailing out its former parts-making unit and revamping its loss-riddled North American operations.
GM said in a release after the market close Thursday that it now estimates it lost about $10.6 billion last year from its earlier preliminary report of a loss of $8.6 billion.
It expects to increase the charge for its exposure relating to Delphi Corp.'s Chapter 11 bankruptcy case to $3.6 billion from the previous estimate of $2.3 billion.
Additionally, GM will boost its North American restructuring charge to $1.7 billion from the previously reported $1.3 billion to cover higher expected costs for plants the company aims to close by the end of 2008.
Then there is Ford. They thought they had a better idea; however, evidence shows that they do not.
Ford Losses Widen On RestructuringInvestors are hurt by incompetence and short-range thinking; however workers suffer the greatest loss. Society as a whole endures greater pain when workers are no longer employed. Those laid off from their jobs have little money to spend let alone devote to building a nest egg.
By Annalisa Burgos.
Forbes. April 21, 2006New York. Making news this morning, Ford Motor lost $1.2 billion in the first quarter, its worst performance in more than four years. The automaker took a $1.7 billion charge for costs from its massive North American restructuring effort. The company is cutting up to 30,000 jobs and closing 14 facilities over the next six years.
Even when employees do prosper and their employers are doing well, people can be affected by the incompetence of business moguls.
Failed hedge funds make a big noiseCorporate and government business decisions as a whole cause me to wonder. In truth, companies do not concern me; people in total, worry me. I continue. I offer more examples to better illustrate my distress. Allow me to present two more circumstances.
By Len Boselovic.
Pittsburgh Post-Gazette Thursday, June 09, 2005In the pantheon of hedge fund blowups, the $215 million that Downtown money manager MDL Capital Management lost for the Ohio Bureau of Workers' Compensation is small potatoes.
Nor is Mark D. Lay, who built MDL into an influential $2.8 billion money management firm that has stumbled in recent years, the first investor to lose millions making an errant bet on interest rates.
But the loss will put increased scrutiny on hedge funds, an $875 billion industry that's growing about 20 percent annually, according to figures from The Hedge Fund Association.
The investments, which rely on such techniques as interest rates swaps, options, futures contracts and other complex strategies that typically involve borrowing money or putting down only a fraction of funds, were once strictly targeted at affluent individuals.
Now, pension funds and other institutional accounts are using them to offset risk and enhance performance, particularly at a time the stock market, coming off its steep sell-off earlier this decade, is struggling to generate the sort of returns that seemed commonplace in the go-go '90s. While they are still off limits to most individuals, investors don't have to be as affluent as they once did to buy into the exotic funds.
In the right manager's hands, hedge funds can outperform plain vanilla stock and bond investments with less volatility and less risk. This year, their performance has been less than spectacular.
School district tries to close the book on missing textsIt is bad enough that student lose their textbooks. I think it is worse when administrators lie when asked of the possibility. We ask, and supposedly teach our children not to purposely misinform others; yet, we the educated and ethical; elders do as we profess not to do. We say what satisfies our own needs and not what is morally correct.
By Don Jordan
Palm Beach Post. Sunday, December 10, 2006In the last two years, the Palm Beach County School District has taken a hit of more than $1.1 million in lost or stolen textbooks, according to school records.
Even though that is half of what was reported five years ago, district officials are just now implementing a $515,000 program aimed at stemming the losses. The school district reported $1 million in missing schoolbooks for the 2000-01 school year, according to a state audit.
High schools that recorded missing textbooks last year averaged about $17,000 in losses. However, there were three schools - Boynton Beach, Suncoast, and Palm Beach Gardens high schools - that initially recorded no losses, despite a combined enrollment of more than 5,000 students and more than a combined $28,000 in textbook losses the previous year.
Officials at Boynton Beach and Palm Beach Gardens high schools changed their textbook loss figures on record with the school district after The Palm Beach Post questioned the numbers. Boynton Beach High officials changed their report Tuesday to include more than $39,000 in lost books, the second highest amount among all schools last year.
Boynton Beach High Principal Kathleen Perry said she's not sure what caused the mistake.
"We're trying to determine exactly where we had this problem," Perry said.Palm Beach Gardens High changed its report to include more than $16,000 in lost books.
"For some reason, it didn't get keyed in," Assistant Principal Raymond Ranghelli said.
Students who don't return textbooks - and don't pay for them - can be denied participation in extracurricular activities and, in the case of seniors, the graduation ceremony. They cannot be denied a diploma.
When a textbook is deemed lost or too damaged to be used, the school is responsible for paying 75 percent of the replacement costs, according to Meezie Pierce, director of the school district's instructional materials department. If a student doesn't pay, school administrators must glean the money for replacement books from the school budget - supported by taxpayer dollars - or collect excess money from fund-raisers.
But the schools are charged only if they report the books as lost, a system that district officials admit is difficult to enforce and verify."I send out the reports from the principals, that's all I can do," Pierce said. "I don't have any authority to do anything to a principal who doesn't pay.
"If they don't report their losses, then the books are not replaced," she said.
Eventually, when a school tries to purchase new books, district officials can compare the request to the school's reported inventory and identify unreported lost books.
"The system matches it up if they've not been reporting losses," Pierce said.
Neither the Martin nor St. Lucie County school districts report problems with lost textbooks. The Martin district doesn't track lost or damaged textbooks; it's up to individual schools to replace them, spokeswoman Cathy Brennan said. So far, it hasn't become a problem. Students must pay to replace lost textbooks, and rarely do school officials find a student unwilling or unable to pay for them, Brennan said.
The St. Lucie district also does not track how much is spent replacing existing textbooks, district spokeswoman Janice Karst said. She said those costs are budgeted along with the costs of new textbooks, which the district frequently orders to keep up with changing curricula. Karst said she doesn't know of any time when the costs of replacing textbooks has ever created a problem for the district. "It doesn't seem to be an issue here," she said.
There are times that we admit our deficits and do not expect others to pay for the problems we produce. Please consider the predicament in New York City.
City Fails to Collect Millions for WaterWhy would people think to pay their water bills? Few truly pay attention to the details of their daily doings. At work, they wallow in avoidance. Some seek the solace of blame. Excuses are abundant and this is at work. Imagine what occurs in people's personal lives. I invite each of us reflect, myself included. What do we focus on and why? When do we allow thoughts, words, and deeds to slide? Will we ever stop to examine the repercussions and if we do, will we willingly take responsibility for the role we play in our own lives.
By Anthony DePalma and Jo Craven McGinty
New York Times. December 12, 2006For years, New York City has failed to collect on millions of dollars in overdue water bills because its records are so riddled with factual errors and outdated information that pursuing deadbeats and delinquents has become virtually impossible.
An examination of the city’s water records by The New York Times revealed that, at least on paper, tens of thousands of property owners have not paid a penny for water in at least two years. Officials insist that debtors collectively owe hundreds of millions for water they used but never paid for.
But whether they are true deadbeats or customers with legitimate disputes, all debtors enjoy a virtual immunity because the city, unlike Boston or Los Angeles, will not use aggressive collection methods like service suspension because its records are so unreliable.
The city’s records show a family that owns more than two dozen properties in Brooklyn and Queens owes more than $1 million in water charges. The family blames it on broken meters and misunderstandings and has managed to make no payments in at least two years.
The owners of a 10-unit condominium building on East 50th Street, a few blocks from the Waldorf-Astoria, simply stopped paying their water bills about two and a half years ago. The city says they now owe more than $16,175. The owners say the meter readings are inaccurate. The city just keeps sending overdue notices.
Two doors away, the United Nations Mission of the Republic of Niger has ignored every water bill it has received since 1998 for its elegant town house, accumulating a debt of nearly $120,000, including penalties. It ignored repeated calls for comment. Eight other foreign missions on the Upper East Side are also in debt, and collectively owe the city about $230,000.
Joseph Mannino, the owner of a small building on Staten Island has a water bill of more than $260,000, which represents some 200 years of water use.
“There’s no way I could have used that much,” he said.
What efforts the city has made to collect on thousands of water debts have been made all the more difficult by a broken record-keeping system that even city officials cannot make sense of. Meters that were installed were never read. Buildings that were demolished over the years continued to receive bills. Water use that would have taken a century to run up was billed to one customer in a single year.
Deputy Mayor Daniel L. Doctoroff said in an interview that the city could not be proud of a billing and collection system with such “long standing and deeply ingrained” problems.
Yet, only in the past year have city officials begun examining ways to overhaul the system. They hope to install a $200 million automated meter-reading system, but that will not be in place until 2010.
The city’s records of just how much it is owed — $230 million on debts more than two years old and $400 million accumulated in the last two years — are really just estimates. The actual debts may be less, or more. While city officials insist the debts are substantial and real, no one believes they will be collected any time soon.
The records — which the city provided only after it was sued by The Times under the Freedom of Information Law — showed that more than 21,000 water accounts have been in arrears for at least two years, with more than 4,650 of those accounts delinquent for a decade or longer.
One consequence of the faulty system is that New Yorkers who do pay their water bills are bearing the burden of those who do not. In July, the city raised water rates by 9.4 percent, far more than had been projected. While higher insurance and financing costs contributed to the increase, the city Department of Environmental Protection, which runs the system, explained that “by far the biggest problem that is causing this proposed increase are the deadbeat homeowners who don’t pay their water bills.”
As I evaluate the entrepreneurial world, I wonder. So much survives with little thought. Businesses thrive while the workings wane. Fault can be found in every enterprise; yet, we accept this. Explanations are barely evident. At times, people do not bother to place blame; although when they do, it is tentative. Individuals only wish defer the focus from themselves. They want us to believe that they stake no claim in what comes.
I recall a poster that hung in the Miss Wellington's fourth grade classroom. The message held meaning for me then, and it still does. "Not making a decision is deciding!" Please ponder the proclamation, then decide for yourself. What will you do today, at work, as you travel the streets and avenues; what, more accurately, will you be at home?
Look through the ledgers and marvel . . .
Posted by Betsy L. Angert on December 26, 2006 at 11:11 AM in Business, Capitalism and Competition, Corporate Criminals, Corporate Profits, Economics, Ethics and Profits, Failure, General Motors, GM Short-term Solutions, Society, Success. Failure. | Permalink | Comments (0) | TrackBack