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Is Capitalism Compatible With Caring?

By Frugaling 6 Comments

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Google Campus Photo
Google is known for being one of the best places to work, with some of the happiest employees.

On the cost of caring

Each year, 217 million workdays are lost or less productive due to mental health concerns. Indirect mental health costs on companies are estimated at $59 billion. But some estimates put these costs as high as $80 to $100 billion. These staggering numbers often serve as motivators for human resources departments and corporations to take action and “solve” mental health crises.

For each specific diagnosis, the statistics vary widely. Researchers tend to look at indirect costs, direct health coverage costs, productivity disruptions, absenteeism, and failure to be mindful while on the job. One of the more common ones, depression, costs employers about $44 billion in lost productive time. Additionally, employees with depression miss about 4.8 days of work and 11.5 days of reduced productivity every 90 days.

Another frequent mental health concern in employees is anxiety. Symptoms of anxiety manifest in various ways, but generally are closely linked with stressors. Anxiety disorders cost about $42.3 billion in the 90s. Inevitably, that estimate would likely be far greater today.

The most expensive diagnosis is usually bipolar disorder. From absenteeism to lost productivity to medications, this disorder has a potent effect on profits. In fact, it costs about $6,836 per employee with bipolar disorder. Closely linked, suicide amounts to $34.6 billion in medical costs and work lost. And non-fatal suicide attempts cost $4.3 billion in lost wages and productivity.

Make companies care through stats

All of these statistics come from fairly reputable sources such as the Centers for Disease Control (CDC), National Institute of Mental Health (NIH/NIMH), National Alliance on Mental Health (NAMI), and peer-reviewed journal articles. As an academic, I trust that these organizations are estimating — to the best of their ability — the high price of mental health in America.

In the past, many companies discriminated against applicants with mental health concerns. Frequently, people were ruled out for jobs they would otherwise be qualified for because of mental illnesses. What the CDC, NAMI, and NIMH have worked tirelessly to do is normalize mental health concerns and reduce stigmas. They’ve worked to interject a hypothesis for companies, which is that everybody wins when you care for employees.

Each organization learned that to talk to companies you need to focus on the bottom line: profits. They’ve excelled at making terrific inroads with corporate giants that have instituted better fringe benefits, fun activities in the workplace, and greater time off. They know that companies want happy, healthy workers because that leads to greater sales, revenue, and shareholder returns. And, for the most part, it’s helped.

Treat the illness and profits will boom!

Mental health advocates in the corporate world seem to politely accept that companies are only motivated by numbers. They argue that untreated and undertreated mental concerns cost more than proper treatment.

Understanding this basic premise, companies have accepted a Mr-Fix-It-style psychology. Treat the illness, get better, and then get back to work! Similarly, healthcare companies rarely offer long-term mental health treatment, as it’s limited to short-term, brief therapy. To offer something more substantial would require companies to pay more profits to care for employees.

This pressure has led companies to ask researchers and academics to think of faster ways to treat distress. The question seems to be, How can we rapidly patch people up so that they can get back to work?

Models of treatment have focused on prescription pills and quick rounds of talk therapy to douse the fires. We’ve learned to cap emotional distress — to keep it in line with what corporate America needs.

Companies aren’t the victims, we are

Capitalism is predicated on a fatal flaw: work hard and be rewarded. Unfortunately, people are all born with different strengths and weaknesses, positions in society, and economic hand-me-downs. Working hard will look different for everyone. We are fundamentally created unequal, unlike the founding fathers suggested.

Men are generally taller than women, but that doesn’t mean they should get paid any different. Women live longer than men on average, but that doesn’t mean companies should begin to hire women because they could spend more years working. Our differences must be balanced out, because purely capitalistic forces fail to change the systemic problems.

And just like the aforementioned physicality and livelihood between genders, there’s great variety in mental health needs. People are not raised equally. Some parents are wonderful — others abusive. Some schools are the best in the country, and others are the worst. Some experience difficult traumas, and others seem to float by without incident. Our experiences from womb to tomb will vary greatly, and we need to learn to embrace this fact. Some people will need greater mental health care.

Flipping our understanding of mental health

Anything that gets in the way of working hard, being productive, and increasing revenue has — up until this point — been seen as an impediment. Being depressed has become a “bad” thing that you should avoid. Get that treated! It’s considered a flaw to suffer and hurt, because of the cost to a company’s bottom line. You’re causing profits to dip! Additionally, it’s encouraged people to stay tight-lipped and private about their struggles for fear of being ostracized.

When dollar signs flashed before corporations’ eyes, they listened. They understood that by making their employees healthier, they’d increase their bottom line. It would seem — for a moment — that capitalism was compatible with caring. But what if the money wasn’t there, would companies still care?

Companies desperately need to change the way they do business. Companies must see their employees as autonomous, capable, and creative humans. Companies must provide a space to excel, but also to seek freedom. Companies must look beyond the dollar amounts and pay for better time off and vacations. Companies must do their best to disregard the power of shareholders, in favor of respecting their employees.

Medical and mental health are in decline in America. Our system is bloated, expensive, and frankly, embarrassingly flaccid. It’s time we flip the paradigm. It’s time we say that workplaces need a reboot. It’s time for employers to receive the treatment. Perhaps it’s time to make companies work for us?

Filed Under: Social Justice Tagged With: America, Capitalism, care, Companies, employees, Finances, Google, illness, mental health, Psychology, statistics

The Hilarity Of Rarity

By Frugaling 5 Comments

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Diamonds. Photo by Kim Alaniz/Flickr

“Insanity in individuals is something rare – but in groups, parties, nations and epochs, it is the rule.”
–Friedrich Nietzsche

Expensive things are expensive, not rare

Blast your headphones. Blare the bass. Feel the vibrations reverberate through your skull. There’s no limit with Beats by Dre. You’ll pull them off before you reach their volume limit. Plus, they come with a classy little “b” on the side. You can walk, sit, run, fly, drive, and stand while advertising your brand awareness. Flaunt your auditory know-how right on your head. Just don’t look at the price tag for these headphones. They’ll cost you about $200-300 for a pair, but only cost $14 to manufacture.

Feel that torque pulverizing your spinal cord like a belly flop gone amuck? Yeah, that’s the benefit of an expensive car. See the smoking tires as you peel away from that red light? Yeah, you’re burning precious fossil fuels and aiding the world on its campaign to melt the poles. How fast is your 0-60? Yeah, you’ll be the fastest around in the Ferrari LaFerrari. You get all this for the low price of $1.3 million. Get yours today — they’re rare!

Diamonds are a girl’s best friend; at least, that’s what the movies/commercials say! Save room on that ring finger for the biggest rock affordable. Whether questionably procured or straight-up from conflict zones, diamonds can be yours. Despite being hugely manipulated and controlled by oligopolies, you can find these at your local stone store. Supply is limited (by design)!

What makes something rare?

The definition of “rare” includes words like uncommon, unusual, and unusually great. Unfortunately, the word has been perverted into a capitalistic, pro-consumer line. The word’s true value has been emptied, cashed in, and abused by corporate giants. They’ve stolen the word – appropriating it for their own profits.

From art that puts a clever 1 of 100 (1/100) number on the bottom to limited-edition, gold-plated Apple Watches to limited-production Ferraris, we live in a world that finds rarity in everything. What an oxymoron – rarity in everything!

Perceptions are essential. Items of greater perceived rarity are lusted after and purchased for tremendous margins. We crave that which another cannot have.

The diamond industry artificially manipulates supply to affect perceived rarity. They buy up everything can they find, squash competition, and throttle a market. It’s entirely artificial.

We must re-evaluate rarity

We are struggling under a curling wave. The light is blotted out. Oxygen is low. And when we look up, we can’t tell if it’s the seabed or sky. Our senses have been manipulated for too long.

This is the hilarity of rarity: we experience vertigo to this perversion of rarity. Capitalism teaches a fundamental lesson: more expensive goods are “rare.” But we need to stop letting companies set the bar, agenda, and price of rarity. We need to empower ourselves, and destroy these twisted messages.

1. Rarity won’t be found in a material good

Take the aforementioned examples. Companies know how to frame a photo, pose a model, and sell you whatever they want. Material goods are not rare; in fact, they’re everywhere. The “rare” Ferraris are only a carefully constructed marketing ploy to make us buy more.

Let’s get fed up with this trickery. These companies are manipulating us. How long will we let them purposely confuse our natural understanding of rarity for their own gains? I say we end today.

2. Rarity won’t cost you a thing

It’s rare to see someone pull over in their car and stop for a lost dog. It’s rare to see someone sit next to a homeless person and hear his or her story. It’s rare for people to reflect on their privilege and be humbled. It’s rare to feel truly content with a career.

Unlike something with a price tag, these rarities are worth your time. By choosing to pursue life’s rarities rather than Apple Inc’s, you’ll suddenly realize what you were missing. It’s time we say goodbye to petty price tags and open our hearts to the people around us. Let’s make some rare moments, together.

3. Rarity won’t be advertised

Walk out your door, and you’re sure to encounter the walls and screens painted with advertisements. It’s sanitized and approved. It’s primped and primed. It’s made to make us buy.

Nothing advertised is needed. Think about it briefly, and you’ll realize you never see marketing campaigns for air and tap water (aside from clean air and water). Companies know that there aren’t profits in these basic resources – true needs. They’ve moved on to the unnecessary.

In the movement to re-evaluate rarity, we must carry this message with us every day: rarity won’t be advertised. Rarity is out in the world, away from this screen. Go make it happen.

Filed Under: Save Money Tagged With: Advertise, advertisements, Beats, Cars, Companies, Consumerism, diamonds, Ferrari, Marketing, rare, rarity

How Do Your Favorite Companies Make Things Right?

By Frugaling 9 Comments

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Last week I prepped and dressed for a major event at my college. Deans and various important people would be in attendance. My energy was waning from a long week, and I needed a coffee first. I ran up the block to the Starbucks and grabbed my regular “short” coffee. That’s when some serious trouble started.

When I left the store, I noticed the cup was leaking. Drips were landing all over the concrete, and despite attempts to avoid my clothes, the coffee stained what I was wearing. I thought, “Great! Nothing better than being around everyone in the college with big stains.”

I decided to snap a shot of the cup and tweet @Starbucks. And surprisingly, customer service asked me to email them. I emailed them last week and did not hear anything for a couple days.

Please @Starbucks!!!! Fix your cups. pic.twitter.com/IwX8OLynIr

— frugaling (@frugalingorg) September 26, 2014

Today, I received a response:

I am so sorry the lid was leaking. I want to thank you for bringing this issue to our attention, and assure you that your feedback has been forwarded to our manufacturing department for further review. This is definitely an issue we need to get fixed. I would like to invite to participate in our bring your own cup promotion that will give you a $0.10 discount on your beverage purchase. I would like to send you a Starbucks Card that you may use towards the purchase of your own personal tumbler. If you would please be so kind to reply to this email with your name and mailing address and I will send it right out. Thanks for giving us the opportunity to fix something that went wrong. [emphasis added]

My head goes in two separate directions regarding large, multinational corporations. On one side, I think about their effects on local communities. Starbucks is notorious for ousting local coffee shops and destroying competition. Many companies (here’s looking at you Wal-Mart) exterminate mom-and-pop stores that can’t buy large enough quantities to lessen consumer prices and maintain margins. On the other side, there are companies that actually try to make things right when your experience is negative. Starbucks is one of them.

Large companies have arsenals of social networking and customer service individuals. Some recognize that an awful social media presence and negative comments can weigh on profits. While motivated to quiet negativity, some actually reach out to correct experiences and leave you happy to come back.

Starbucks isn’t alone. My favorite companies know how to make things right. For example, I’m a big fan of Zappos, the online shoe retailer, because of their customer service. I’ve received incorrect sizes, colors, and flawed objects. Each time that’s happened, I’ve been able to receive next-day replacements and refunds. There was even a time when they accepted a return on running shoes, which had given trouble on my feet but had already been broken in. That secured my loyalty with the company.

As a frugal person, it’s important to consider where I make my purchases. Not every item will work out. When those occasions arise, I want to be able to trust that my goodwill can be returned in kind. Frugality is about more than low prices. It requires an active role in consuming goods — aiming to find long-term value.

Here are some tips for finding companies that respect your choice to shop with them:

  • Do they accept returns without receipts?
  • Will they allow you to return, exchange, or replace without question?
  • How easily can you reach customer service? Are they just a tweet away?
  • How do your favorite companies make things right?

What are some of your favorite companies? How do they make things right?

Filed Under: Save Money Tagged With: Coffee, Companies, customer service, Make things right, retail, Starbucks, zappos

Tax Inversions: The Most Unpatriotic, Selfish, And Shortsighted Decision Companies Make

By Frugaling 6 Comments

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Corporations Tax Inversion Evasion No Revenue

Tax evasion is persecuted heavily in the United States. If you’re caught keeping income away from the federal government, you could be looking at a hefty prison term and fine. This very crime that put Al Capone, the notorious mafia-gangster, behind bars. And yet, when companies dodge taxes, their shareholders rejoice. Nowadays, rapacious corporations are pushing the limit of U.S. tax laws by engaging in one of the sneakiest tax-dodging practices ever: tax inversions.

What are corporate tax inversions?

Bear with me as I try to explain a fairly complicated procedure. Essentially, corporations pay certain tax rates in America. Sometimes motivated by intrinsic greed — at other times by shareholders — corporate executives decide that moving their official headquarters to another, overseas location would be better for taxation. In switching to another country, with lower tax rates, they can pass on those savings to shareholders via greater earnings per share (via profit and revenue), larger stock buybacks, and more dividends. All they have to do is purchase another company that already has its headquarters in a tax haven.

When you own shares in a company like this, you can easily get swept up into this grand, wonderful idea. You’ll be getting more money for your investment and the company will be even more competitive. These are significant advantages — until you look at the dirty consequences.

When robber barons are more patriotic than today’s businesses…

Robber barons — 19th-century industrialists/capitalists — knew how to make money hand over fist. They could squeeze workers and make millions of dollars (billions when accounting for inflation). Many of these elite capitalists formed companies in finance, manufacturing, oil, and transportation. These industries were at the heart of American success; although, the robber barons made a lot more than your average, everyday peon.

There was a uniting factor to these antiquated moneymen: pride in country. They made their riches here, and much of the money flowed back into America. For instance, Andrew Carnegie, who started one of the largest steel manufacturers in the world, gave much of his wealth to schools (Carnegie Mellon University), museums, and libraries.

As America matured, tax laws and corporate structures evolved. Workers were offered more rights due to union memberships. Talk of a fair wage encouraged companies to pay more and protect workers. America became a booming economy, despite these new restrictions. Social welfare programs developed, as well, which sent people to college (affordably) and created Social Security. There was a respect for those who worked 40 years. The country believed they deserved to live safely after working so hard. Today’s businesses seem to have a different motivation.

How much do American companies have to pay in taxes?

Now, hardly a day goes by without a corporate executives complaining about excessive taxation. Steve Schwarzman famously compared the pressure for increased taxation to the invasion of Poland by the Nazis. Classy! Or, how about the Home Depot founder, Ken Langone, who said that increasing taxes, awareness of income inequality, and the Democratic agenda was “was what Hitler was saying in Germany.” Holy hyperbole! And the last one (that I’ll include in this article) comes from Tom Perkins, whose net worth is said to be around $8 billion. He said, “[there’s a] progressive war on the one percent…In the Nazi area it was racial demonization, now it is class demonization.” To put it simply, he’s saying that poor people clamoring for help is comparable to Nazis killing Jews. Better to bite your tongue, perhaps?!

Beyond the disturbing question of why some bigoted wealthy people freely invoke the Holocaust and its accompanying atrocities, I’m left wondering how bad it is in America for them. If people are that stirred up and eager to fight back poor people, tax increases, and basic rights for workers, these executives must be struggling. Alas, avoid the wellworks, the aforementioned Nazi-invokers are all billionaires. I trust they’ll find a way to pay their next meal.

Despite these clarion calls for tax revolution, American companies are doing well. In fact, corporations are seeing record profits year-over-year. How can this be happening in these awful, tax heavy times? Well, for large-cap corporations, they’re not. Armed with restless lawyers, accountants, and lobbyists, the largest companies march up to Capitol Hill and demand tax breaks. And you know what? It works.

Yesterday, CNBC reported on 20 (to name a few) companies that pay 0% in taxes. Take a look and see if you recognize any:

1. Merck
2. Seagate Tech
3. Thermo Fisher
4. General Motors
5. Public Storage
6. Iron Mountain
7. Newmont Mining
8. Eaton
9. Avalonbay
10. Kimco Realty
11. Prologis
12. Boston Properties
13. Apartment Investment
14. Plum Creek Timber
15. Citrix Systems
16. Crown Castle
17. Macerich
18. News Corp.
19. Essex Prop.
20. First Solar

These companies are likely benefiting from tremendous tax loopholes and writeoffs that are only available to them. From federal investments to research grants to special “one-time” discounts, they add up and suddenly the bill comes to $0.

That means that the preceding list doesn’t contribute a single dollar to our federal budget via traditional taxes. Moreover, they don’t properly fund our infrastructure that they rely on. Without the education, federal investments/breaks, transportation system, etc., these companies would have a devastatingly hard time finding success here.

Business-first media outlets such as the Wall Street Journal swiftly defend companies by saying:

“We’ve written for years about how the U.S. has the highest corporate income tax rate in the developed world, and that’s an incentive for all companies, wherever they are based, to invest outside the U.S.”

In this strange time when taxes are demonized, it’s important to realize that many companies aren’t paying their fair share. These claims that America has the highest corporate tax rate in the world don’t reflect the numerous benefits; after all, membership has its privileges and sometimes that includes sizable tax breaks.

How do corporate tax inversions hurt countries?

Despite this business-friendly reality, some companies still seek to lower their tax burdens — wherever they can find them. Tyco International, Fruit of the Loom, Ingersoll Rand, Transocean, and Eaton Corporation all successfully left the U.S. (for tax purposes), but they all still benefit from the infrastructure and development here. See, even after you leave a country, its people, and suck another $1 billion into your coffers because of the move, we welcome you to do business here with open arms.

It’s sickening. Companies vacate the U.S. for places like the Cayman Islands, Ireland, and Switzerland, where the corporate taxes are zero percent. Americans, again, lose all that tax revenue that would’ve gone to state and federal programs. This all contributes to widening budget gaps, shortfalls, and growing austerity measures. Then, the welcoming nation holds out open arms for the new company. But despite the new headquarters, they make zero percent from their new neighbors.

This is a brutal act that causes disruption for both countries. With zero percent coming in for either party, they both suffer the consequences of a newly globalized world.

Globalization was supposed to bring greater diversity and talent. Suddenly, the world is flat, right? Aren’t we supposed to be benefiting from a shared upward mobility? When tax inversions are employed, it’s hard to see how anyone could possibly benefit — except for a select few shareholders and corporate executives.

Filed Under: Social Justice Tagged With: Business, Companies, federal, Government, invest, irs, market, Robber Barons, stocks, tax inversions, taxation, taxes

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