The following column by my friend Marshall Ward of Murray, Ky, succinctly describes what is the most important problem in the United States today, one that we must solve to remain both a democracy and a livable planet, IMHO.
Monday is Labor Day, the traditional end of summer, but for the American worker it should be a reminder that we still have a long way to go for our workers to be fully compensated for the vital work that they do.
We still have a serious question facing the middle and working classes in America.
Why is there no-lose socialism for the rich and cutthroat hyper-capitalism for everyone else?
Labor laws, pension laws, corporate laws, and tax laws dramatically favor those at the top, who have an army of lawyers and lobbyists who work for them in Washington, D.C. and state capitals.
Most American companies are still locked in the old cutthroat hyper-capitalist model that views workers as costs to be cut rather than as partners to share in success which is viewed as “socialism” by dim-witted Republicans.
You may have heard Republicans in legislatures all over the country rail about how the Democrats’ agenda is chocked-full of scary “socialist” policies.
And Kentuckians like Comer, McConnell, and Rand Paul protect their rich donors who have benefited big time from these Republican no-lose socialist policies for the rich.
How?
American corporations rake in billions each year in government subsidies, bailouts, and tax loopholes – all funded by you and me, and all contributing to higher stock prices for the richest ONE percent who own HALF of the stock market, as well as CEOs and other executives who are paid largely in shares of stock while the worker hasn’t had a real meaningful raise for decades.
These corporations and their trade groups spend hundreds of millions each year on lobbying and campaign contributions. Their influence-peddling pays off. The return on these political investments is huge. For all practical purposes, it’s institutionalized bribery – a quid pro quo.
An even more insidious example is corporations that don’t pay their workers a living wage. As a result, their workers must rely on programs like Medicaid, public housing, food stamps and other safety nets. That means you and I and other taxpayers subsidize these corporations, allowing them to enjoy even higher profits and share prices for their wealthy investors and executives.
Not only does corporate welfare take money away from us taxpayers. It also harms small business that has a harder time competing with big business that gets these subsidies. Everyone loses except those at the top.
So the real socialism is the Republican no-lose socialism for Big Tech, Big Oil, Big Pharma, defense contractors, and big banks who are the benefiting from these no-lose socialist schemes for the rich.
But something is afoot; CEO Hamdi Ulukaya, founder and CEO of Chobani yogurt, announced he’s giving all his full-time workers shares of stock worth up to 10 percent of the privately held company’s worth.
“If the company ends up being valued at $3 billion, for example, the average employee payout could be $150,000. Some long-tenured employees could get more than $1 million,” explains Ulukaya.
Ulukaya’s decision is just good business. Employees who are partners become more dedicated to increasing a company’s value.
Ulukaya just increased the odds that Chobani will be valued much higher when it’s sold, or its shares of stock are available to the public. That will make him, as well as his employees, far wealthier.
As Ulukaya wrote to his workers, the award is “a mutual promise to work together with a shared purpose and responsibility.”
Forbes magazine called it one of “the most selfless corporate moves in memory.”
Additionally, Apple has decided to award shares not just to executives or engineers but to hourly workers as well. Twitter CEO Jack Dorsey is giving a third of his Twitter stock (about 1 percent of the company) “to our employee equity pool to reinvest directly in our people.”
Employee stock ownership plans, which have been around for years, are making a comeback.
Research shows that employee-owned companies tend to outperform the competition. Two Kentucky companies that are employee owned are Murray’s Paschall Truck Lines and Bowling Green’s Houchens in retail grocery and convenience stores.
But sadly on this Labor Day, it’s still mainly no-lose socialism for the rich, cutthroat hyper- capitalism for the rest of us.