Lesson’s Modern Day Business Leaders and Entrepreneurs Must Learn from Henry Ford
by Gary Flores, Save US Jobs.biz, VP of Sales and Marketing
In the early 20th century, an ambitious industrialist stood in front of a group of factory workers and had a bold vision. He said “I have a vision to create an automobile that will be affordable to the masses of our country.” Many were skeptical and pessimistic, as they knew that the automobile was only a luxury item affordable to the wealthy. But this visionary went further to say all of the people building this automobile would be able to afford it for themselves. By 1924, there were over 17 million Model T’s produced at a price of $281. And as you know, Henry Ford changed our society in so many profound ways such as giving us mobility to travel. Roads, highways,
construction, oil distribution, business growth, freedom, prosperity for the factory workers were all ‘driven’ by Henry Ford’s bold vision and passion. He revolutionized manufacturing for mass production of the automobile and incentivized his workers with profit sharing for their accomplishments. Workers were challenged to find solutions to solve problems more cost effectively. Henry Ford rewarded workers in the United States for their work and gave
them more prosperity. This produced enormous wealth creation for the United States.
Today we are at a major shift in how businesses operate. Companies and executives are challenged to remain financially solid. However, they have lost sight of what being an entrepreneur is all about. To be successful as a business person you must also reward those people around you. Today, executives have no focus on rewarding employees or incentivizing them for their work. Bottom line: cut costs and find the most cost-effective solution including sending jobs out of this country. And executives look at how to maximize their own personal compensation at the expense of cutting jobs and sending work offshore. Further, these executives have lost sight of
the basic importance of developing products and services that their own workers can afford to grow our economy. Obviously, Henry Ford had this as a basic objective of the Ford Motor Company. He recognized that having employees being able to buy Model T’s would perpetuate the growth of his company.
Modern day businesses and executives have failed. They need to look at successful leaders from the past that has created long-term stable organizations. We are at an inflection point where our country will be unable to thrive as we did in the past with this ‘selfish’ focus on executive’s personal benefits and lack of commitment to workers. How can sending jobs offshore fuel the growth of our economy by allowing US citizens to purchase our own goods and services. These same businesses will never grow beyond their limited thinking if they ignore providing products,
services to our own economy.
My Arms Are Not Too Short To Box With God
by H.M. Hervey, CEO, Save US Jobs.biz
This heading borrows from the hit Broadway musical “My arms are too short to box with God” and paraphrases what the title implies. Namely, it’s impossible for mere mortals to win a fight with the heavens. In today’s vernacular, it implies that you can’t fight the system.
As head of an organization dedicated to reversing the growing and dangerous trend of American corporations sending our jobs off-shore, I’m writing this piece to illustrate that such “conventional wisdom” is just that, conventional. And it’s not particularly strong in the “wisdom” department either. The “David vs. Goliath” analogy works just as well and you know what happened in that movie. Stopping multi-national corporations from decimating America’s middle-class for the sake of short-term profits is the current sequel to the David story. In spades.
Contrary to what our business “leaders” and “ivory-tower” economists tell us, putting thousands of well-educated and
highly productive Americans out of work is not good for this nation. It’s not good in the short-term and it’s an economic tragedy in the long-term. These people tell us that “tried and true” economic theory holds that the free market must be preserved because it – well – it always worked before. But that was then, this is now.
Trying to solve America’s current economic situation with recipes written by 19th century economists is like taking an X-ray with a candle. Adam Smith never imagined India would have 150 million well-trained, English speaking workers. That’s bigger than the entire workforce of the United States. You can begin to see the problem in sharp relief when you fold China, Pakistan, Indonesia and emerging African nation into this equation.
Americans created the most innovative, resourceful and productive companies in the history of capitalism. They invested money, blood, sweat and tears to make these companies grow and prosper. American workers, engineers and managers exported their energy and work ethic around the globe. In short, American workers made these companies the envy of the world. However, as reward for those decades of labor and toil, these same American companies are now shredding the social and economic fabric that binds companies, employees and communities for the sake of short-term profits. And I do mean short-term. The growing number of unemployed and under-employed Americans will be eventually too poor to buy the products made by these companies.
The relentless neo-liberal quest for profits über alles is driving this headlong dash into economic oblivion. These short-sighted executives are not only sending our jobs off-shore, they’re also transferring American technology, “know-how” and proprietary intellectual property to foreign workers who will soon use those skills to start their own companies to defeat their American teachers. That’s so obvious even Stevie Wonder can see it. This transfer of wealth, jobs and technology also saps America’s incentive for innovation because new ideas are seldom created in a
declining economic environment. Remember, these globalists gave us Enron, WorldCom, Tyco and insider trading scandals. These same executives say we should not force them to expense stock options because they want to attract good people. But some of those good people turned out to be Ken Lay, Bernie Ebbers, Dick Grasso and
Dennis Koslowski. They also fail to mention that companies expense those very stock options on their tax returns.
To reduce their tax burdens. To increase their profits. To pay themselves higher salaries. To give themselves bigger bonuses. To allow for larger expense accounts. I’ll stop now but you get my drift.
These same people are now telling us that outsourcing our white-collar jobs is “good for America.” Remember what they said after sending our manufacturing jobs offshore? In effect they said “Don’t worry, be happy. We’ll help you retrain for jobs in the next “big thing” like computers, the Internet, online customer service, tech support,
programming and IT work.” But these are kinds of jobs they’re now sending offshore…again. Now these corporate executives tell us that, while it’s OK to continue increasing their already huge salaries, the rest of us must retrain, retool and take major wage cuts or risk having our jobs sent offshore. They say the next “big thing” will
always emerge to save the day because it “always happened before”. And they tell us we should accept all this because it’s “good for us”. It is the biggest bait and switch con game in U.S.history.
Well, should we listen to them now? In a word, NO! Not just NO but…HELL NO! And here’s why: these globalists don’t have a clue about that the “next big thing” will be. But the rest of us know that vast oceans of cheap labor in India, China, Pakistan and African nations are wide and deep enough to absorb most new technology jobs created in the United States so far into the future the Pyramids will erode to mere ant hills before it stops.
Question: How does the outsourced American worker support his family during all the time it takes to pick a new industry, learn the new technology and find a job in that new business?
“Based on their dismal history, putting Congress or other U.S. politicians in charge of protecting America’s trade and economic future is like putting Colonel Sanders in charge of health care for chickens.” Even if you find a politician who isn’t getting financial support from corporations that are sending our jobs offshore, imagine how long it takes to get effective legislation written, killed in committee, rewritten, filibustered, signed into law, monitored for compliance and enforced by the courts? Whew! And that’s the easy part. Then we still have to deal with WTO, NAFTA and GATT. In other words, asking congress to help is a colossal waste of time and money. Want proof? Outsourcing is gathering pace, worker visa programs are being abused big-time and the trade deficit just went north of $542 Billion. Want more proof? Of more than 80 anti-outsourcing bills pending in 30 states, none have passed.
Based on the above, it’s easy to see why I started taking boxing lessons. And I learned that my arms were not too short to box with God. My organization, Save U.S. Jobs.biz, was able to arrange a “Come-to-Jesus” meeting with some of the big guys at Hewlett-Packard in March. Since HP was founded, nurtured and grown by Americans, we said that all the work that can be done in the US should be done in the US. They didn’t like what they heard. The HP
representative sneered and called us “American Firsters.” Imagine the mentality it takes for an American to consider being an “American Firster” an insult. The bottom line: HP sees no difference between American employees and foreign employees. A market is a market to them. An employee is an employee. All that matters is what they pay employees and if the market buys their products.
Question: If HP has no special allegiance for America and its people, should Americans have any allegiance to HP or its products?
But that was just round one. We own HP stock and look forward to some classic infighting. Our Direct Action plan makes changes from within by acquiring stock, getting on the Board and challenging executives to act like Americans citizens again. Carly Fiorina, HP’s CEO who has a $6 Million compensation package, is sending $60K jobs offshore to reduce labor and overhead costs by 70%. Want to cut costs? Well OK then, let’s really cut some costs, Carly!
Let’s cut your salary commensurate with the cuts your laid-off employees are forced to endure. Same goes for the VP’s and the Board members and the rest of senior management. Think about how much HP will save when it cuts all their compensation by 70%, too. How about that? Seems only fair and proper.
I have no problem with executives making lots of money. They work long and hard and have serious responsibilities. But don’t tell me they have to cut labor costs on one hand while simultaneously paying themselves multi-million dollar pay packages on the other hand. That nonsense happens even when their revenues and stock
prices decline. I’ll stand down and remove the gloves when someone explains how that’s good for America. Even Warren Buffett doesn’t think it’s good for America and he’s about $23 Billion smarter than anybody at HP. In the meantime, our Direct Action Plan shows that my arms were not too short to box with God. And neither are yours.
Remember, “The job you save may be your own.”