In a lengthy interview on NBC’s Meet the Press Sunday morning, President-Elect Barack Obama said a number of things that were highly important when setting the agenda during his upcoming term as American leader. Firstly, the former Illinois Senator sided with the laid-off Republic Windows and Doors factory workers as they protested the loss of their jobs in the wake of the recession. Another item of note is that there needs to be work done to stop the slide in foreclosures that are happening daily across the country. Although Mr. Obama described the economy getting a lot worse before it recovers, he advocated for immediate and meticulous attention to reignite it via introducing much needed policies that would work on rebuilding America’s infrastructure.
But the best thing? Mr. Obama said that the corporations must be more responsible and ethical in their daily dealings:
What we haven’t seen is a sense of urgency and the willingness to make tough decisions. And what we still see are executive compensation packages for the auto industry that are out of line compared to their competitors, their Japanese competitors who are doing a lot better.
Now, it’s not unique to the auto industry. We have seen that across the board. Certainly, we saw it on Wall Street. And part of what I’m hoping to introduce as the next president is a new ethic of responsibility where we say that, if you’re laying off workers, the least you can do, when you’re making $25 million a year, is give up some of your compensation and some of your bonuses. Figure out ways in which workers maybe have to take a haircut, but they can still keep their jobs, they can still keep their health care and they can still stay in their homes. That kind of notion of shared benefits and burdens is something that I think has been lost for too long, and it’s something that I’d like to see restored.
Simply put, drastic times call for measures which favor the American worker again. For years, the corporations have enjoyed the perks the government has given them. The biggest gift of all happened to be the gradual dismantling and eventual repeal of the Glass-Steagall Act in 1933. The passage and signing of the Gramm-Leech-Billey Act of 1999 signaled the regulations of the New Deal were over. At first, these measures for financial institutions were liberatory. Commercial and Investment banks could join forces into a single entity. This type of corporate marriage in the financial world meant more ways to make money hand over fist by pitting the greedy against the most vunerable. It didn’t stay within the borders of one’s country. These dealings extended internationally too.
But, the higher the high, the greater the fall. Not only did large entities like Citigroup, Fannie Mae, Freddie Mac and Bear Stearns take a nose dive; a string of other companies people have known and loved over the years (such as Archway & Mother’s Cookies Co., Tower Records and Sharper Image) have shut their doors to the public as well. Within the last four years of the Bush Presidency, the list of folding business (especially those filing for bankruptcy) has grown larger and more nebulous. Those who survived the trial by fire this far has pared down their operations so much that consumers deal with bare-bone operations with few luxuries.
But even despite all the horrific happenings of the economic downturn, the managment still kept their golden parachutes and other perks while their employees suffered cut-backs. Similarly, the story of Enron depicts one of the most heinous examples of corporate greed and employee negligence. The Enron scandal still stings for a lot of people–including many Californians.
In light of this, corporations are not going to change over night to be more ethical entities if they continually get rewarded by their political cronies year after year. Instead, there has to be a reintroduction of more regulations along with more support to enforce the restrictions already on the books. Without such backing, the same old thing will happen in a quid pro quo fashion.
We have to start somewhere in order to rebuild a new type of society from the ruins left in the wake of the Bush years. This means more consideration for workers and their rights. Without the support of the workers, management cannot get anywhere. After all, the workers are voters and conscious consumers. They read the papers, discuss politics and even watch the news just like the majority of other citizens in the United States. Ignore and treat them like the dirt under someone’s shoe and the outcry becomes enormous. Case in point? The 2008 Elections.