My Buddy, Andrew, Comments On The Posting – Are Businessmen Smarter Than Children

On September 28, 2010September 27, 2010 By southwerkIn business ethics, Capitalism, Government Failure, Philosophy of Business

As usual, Andrew has something clever to add to one of my posts. I would like you to read it. jp

A few years ago, I did an internship at the CSX Rail Yard in Waycross, GA. One day in the middle of september, I came in to hear that the EPA man was coming today to inspect the yard. As the intern, I was at the bottom of the food chain, and it was my job that day to escort the EPA man around to all of the facilities in the yard.

The inspection lasted until a little after lunch time. At almost every facility we went to, he wrote stuff down in this book he carried with him. At the end of the inspection, we went and met with the Plant Manager of the Locomotive Service/Repair Station, who is the man in charge of the entire yard. That day, CSX got fined $350,000 for environmental hazards and failure to comply with EPA regulations.

What suprised me is the reaction to this. CSX considered this a victory! “We ONLY got charged $350,000!!”. I understand that type of money is a drop in the bucket for what the major railroads make, but the moral issue there is what upset me.

I just thought I’d share my example to help further verify what you learned in law school.

Our Continuing Coverage – More On BRICKED Bank!

On September 27, 2010October 5, 2010 By southwerkIn business ethics, Capitalism, ethics, Philosophy of Business2 Comments

Cameron Hope organized the bricking and had this to say. –

‘We blocked the doorway as a way of saying that the banks are open but the safe is shut.

‘The banks are stifling the recovery from the recession by not lending businesses any money.

‘Savers are getting nothing, borrowers are getting nothing and the banks are doing whatever they like. Some of the banks are even owned by the taxpayer and still they won’t lend.

‘This protest is saying enough is enough and the Government needs to step in and make the banks lend.’

The Daily Mail’s Make the Banks Lend campaign, on behalf of small firms turned down for credit, argues that the banks have money to spare, thanks to enormous funds provided by the taxpayer.

Instead of lavishing this cash on bankers’ bonuses, banks should be lending it at affordable rates to small enterprises – the backbone of the economy. Small and medium concerns provide 57% of all private sector jobs.

It is clever protest that is getting headlines around the world. However, Barclays Bank was not the original target. The protesters were unable to brick up the offending bank. So they picked another bank conveniently located. Press reports indicate that Barclays has a good reputation for continuing to give out small business loans.

If you read this column, you know I’m no shill for the banks. The offending bank was actually “Natwest.” If you want to deny them business, please do, but Barclays did not deny this businessman and his friends a loan.

(One of my clever readers, M. Perry, adds a helpful comment. –
Nat West was the original target to be bricked up because of its location in the centre of Bournemouth. HOWEVER, HSBC was in fact the bank that refused the loan, jeopardising Mr Hope’s business.)

James Pilant

International Price Fixing

On September 27, 2010 By southwerkIn business ethics, Capitalism, Economic measurement, ethics, Government Failure, Philosophy of Business

You don’t make real money by competing. You make real money by not competing.

Price fixing is one of the tried and true methods of generating great profit. You form an alliance with all the others in your business and agree nobody gets a better price.

China Airlines has agreed to pay 40 million dollars in fines for the practice.

They were fixing international cargo rates for shipments to the United States from 2001 to 2006. I find it difficult to believe that their profits were anywhere near as small as 40 mil. Since it was a conspiracy, who else was involved? I want to see some prosecutions. I want to see some justice. Although the pro-business policies of the current administration would seem to mitigate any real penalties for these kinds of practices.

James Pilant

Bank Bailout Estimated Cost: 14 Trillion + (via Pilant’s Business Ethics Blog)

On September 24, 2010September 24, 2010 By southwerkIn business ethics, Capitalism, Government Failure, Philosophy of Business

This is from last year. However, few Americans are aware of the loan guarantees given to banks aside from the direct TARP funds. We should never forget the staggering money sacrifice by the taxpayers of the United States to save a flagging financial sector.

James Pilant

According to a report by Nomi Prins and Krisztina Ugrin, the money paid out to save the banking industry is currently 14 trillion dollars while the money paid out in the stimulus and other responses to the economic crisis total almost 2 trillion dollars. So, the banking industry gets 14 trillion and regular Americans get a little less than 2 trillion scattered over hundreds of programs. Did you know that we can pay off every sub prime mortgage in … Read More

via Pilant's Business Ethics Blog

Blockbuster Files For Bankruptcy Protection

On September 23, 2010September 23, 2010 By southwerkIn business ethics, Capitalism, ethics, Philosophy of Business

Are cable companies next? All over America, the little red boxes and the home computer are building market share. The old ideas, once new and exciting disappear.

I can hope (and my hopes get dashed regularly) that this new environment will actually feature competition. For in America, the free market is like Christianity, a great idea that we haven’t quite got around to yet.

I would like to see the day when the exorbitant rates charged by cable for “packages” designed to maximise their profits while providing dozens of channels no one wants is all a thing of the past. Customer satisfaction and product excellence are also much discussed and preached concepts. Not only a shallow religion but once again not often practiced.

James Pilant

Optimism Leads to Delusions? (via Sonia Jaspal’s RiskBoard)

On September 22, 2010September 22, 2010 By southwerkIn business ethics, Philosophy of Business

For around 400 years, the Western mind has struggled attempting to solve problems by logic using facts. It has not caught on. We still read horoscopes and to my continued astonishment often believe that if we thing hard enough “positively,” it will be so.
When we make decisions, the facts and an accurate assessment are our best allies. But in the United States, there is a perception that only positive, optimistic, emotionally intelligent people are the ones to be emulated.
It’s all nonsense. Read the article, it’s somewhat in line with what I am saying. I will elaborate further in a later article.

James Pilant

Since birth, the mantra taught to us about life is optimists do better in life as they think positive, are surrounded with positive people and generate positive energy. The example of the glass filled with some water typifies our thinking. Here are three examples of the statements people make and the general opinion formed by the public regarding the statements. First person Statement: The glass is half full. Opinion: Give the guy an immediate pa … Read More

via Sonia Jaspal's RiskBoard