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The Next Crisis Will Be a Terrible Thing to Waste

September 30, 2019 By David Griesing Leave a Comment

(photo by Markus Spiske temporausch.com @pixels)

We are moving into less settled times both here and in the rest of the world. Several different storms are gathering along the waterfront today:
 
– in politics, with gridlock both breaking down and intensifying over impeachment and the future course for America, in the UK over its relationship with the rest of Europe and what it wants for itself, in the battles between populists and traditionalists elsewhere;
 
– in economics, with weakening global prosperity and the likelihood of a financial pullback that will affect almost all of us as the fundamentals weaken;
 
– in the environment, with increasing alarm over the current effects of global warming, the longer-term outlook for the health of the planet, and state actors’ halting efforts to respond to the challenge; 
 
– in the world order, with a rising China, a demoralized and divided West, and a handful of nations around the edges that are both willing and able to take advantage of the uncertainty; and
 
 – in the prevailing spirit, perhaps the most impressionistic of these storms but potentially the most powerful, as pessimism, alarm, hysteria, backlash and hostility get reduced into urgency in their boiling cauldron—a drive to do something, anything to move off the dime.
 
The silver lining is that chaos, confusion and uncertainty also provide opportunities. When you’re clear about the priorities behind your work, your chances to advance them are always greatest when the storms finally break as long as you’re ready to rebuild the storm-tossed world in the ways that you want. Now is the time for getting ready, because the chances to address our most pressing problems–and the rewards for us and others that can flow from that–may never be greater.
 
When the work we do helps us realize our priorities, it becomes more purposeful and satisfying.  As I argued here last week, in many of our jobs it is both possible and desirable to align our priorities with that job’s broader objectives. Improved health. Greater fairness. A more sustainable way to live. 
 
In other words, it’s tying what you want yourself to almost every job’s higher purposes. Not only does the alignment reduce friction between you and those impacted by your work, it can also produce an esprit de corps with your bosses, co-workers, customers, suppliers and members of the broader community as they support your efforts. You’re experiencing the shared benefits of a productive community while taking home both the pride and satisfaction that comes with it. 
 
Of course, another essential of “good work” is its future focus: anticipating circumstances that might enable you to take bigger-than-usual strides towards realizing common priorities. It is being aware of the obstacles and opportunities today so you are ready to act when the storms break and the lay-of-the-land shifts, weakening those obstacles and providing those with a vision of the future a path for realizing it. That’s because everyone who has weathered the storm wants to put the pieces back together and is unusually receptive to putting it all back together in some better way.
 
Realizing your particular work ethic in times of crisis has almost nothing to do with luck but everything to do with your mindset and plans. It’s having a vision of the better future that you want, keeping your eye on that goal line as the game degenerates into chaos, and, when everyone is finally able to listen, inviting your fellow survivors to help in rebuilding something that you’re convinced will be more durable and sustainable than all of you had before. At such times, aligning your personal priorities with a higher, common purpose will not only be satisfying for you, it can also make changes that seem impossible today, possible tomorrow.
 
My priorities (in search of this broader resonance) would include the following:
 
Thriving workers, families and communities.  Most of us have jobs as citizens of democratic countries with capitalist economies. We regularly make our preferences known by choosing leaders who share our priorities. As citizens during unsettled times, what kinds of change would we support and priorities would we pursue?
 
In large part because “thriving workers” are the foundation for other kinds of positive change (such as reducing income inequality, gaining affordable health-care and safeguarding the environment in our communities), I’ll be looking for leaders with the courage to say they are foregoing other “hot button” reforms to invest in retraining today’s workforce for a more automated world; to support trade buffers so that workers here don’t lose their jobs to cheap foreign labor when they’re compensated more fairly or work under safer conditions; and to support new public policies like bolstering the economic security of low-wage workers by supplementing their incomes through payroll deposits, thereby encouraging their continued work and improving their chances to start building wealth for their families and communities.
 
We don’t hear politicians making hard choices between costly alternatives.  Or willing to make the engines of capitalism more democratically-driven by ensuring that working men and women have a larger seat at the table with business owners. In the wake of the economic storm that’s coming, there will be many citizen-driven opportunities to support leaders who are eager to rebuild the future on the backs of thriving workers, while admitting that to realize that goal means putting many other goals on a back burner. It should also be a bi-partisan issue. As citizens, our focus and support can help them to accomplish this one important thing as the political process bottoms out and it struggles to identify new, common goals.
 
Environmental stewardship. As Alain de Botton argues persuasively (and often amusingly) in The Pleasures & Sorrows of Work it can be difficult to understand the wide-ranging impacts of your paying job given the global supply chains that feed it and the distribution networks that bring your “goods or services” to consumers. Difficult yes, but hardly impossible.  Among many other things, De Botton invites us to learn more about the consequences of our work, both for better and for worse. I’d argue that when we do, we’ll be able to see “how we can work better in the future” in a common light that includes “greater environmental stewardship.”
 
Is the product I’m selling or helping to sell, is the service I’m providing and the ways I’m providing it, improving the health of the planet or reducing it? Raising consciousness in the workplace about an issue like environmental stewardship provides opportunities for alignment with others–including  bosses and even owners—who may share your concerns. The accelerating storm of today’s climate debate and the quest to find our way out of it will likely present many opportunities to change business practices (and even nudge them in groundbreaking directions) where we work. 
 
Righting the balance between people and profits. Connecting your paid work to its wider-world impacts is not just limited to environmental stewardship. As global economies get roiled and we begin to look beyond these upheavals, we can be thinking now about how our jobs can provide greater benefits to us and our communities and not simply about how we can assist business owners in becoming profitable again. To ensure that you and I are not merely helping to restore the profit-dominated status quo after the next recession, we could be learning now how to connect our labor to “more of its fruits” than higher corporate dividends. 
 
As I argued last March, administrators of a global education test are using that test to assess independent thinking, collaborative problem-solving and building better communities. On the theory that we “treasure what we measure,” students globally are now building these aptitudes in their classrooms because they will ultimately be tested on them.

By the same token, employers could assess (and reward) their employees–and be assessed themselves–for “aptitudes” beyond profit-making, including their success at tying company productivity to greater community benefits. For example, workers could push their companies to retain them (even with reduced hours) instead of firing them during economic downturns because policies like this maintain stable communities, or to take less profit from a product or service if it will keep a job here instead of losing it to a foreign worker. Moreover, employees who can demonstrate that they have strengthened the company-community bond would be rewarded for doing so. 
 
The groundswell for this broader focus needs to come from forward-looking employees as well as executives and owners, and the time to be thinking about more community-oriented work assessments and broader exercises of corporate responsibility is now.
 
After we’ve weathered the next downturn, are looking for better ways forward and desiring greater corporate accountability for common problems—that’s when you can stand up with your new way to determine economic success.

That’s when you can argue that what’s good for the company needs to be good for the community too, and that the economic fallout might be reduced next time if the broader community were part of the equation from the start.  

That’s when you can gain even more pride and satisfaction than is usually available when you help to solve common, work-related problems, because now you’re helping to humanize the foundations of democratic capitialism itself.

+ + +

We are far enough today from the economic recession that began in 2008 to gain at least a measure of historical perspective.  Two new books are arguing that Barrack Obama was so eager to restore economic stability and the health of the American banking industry that he failed to “use” this crisis (as FDR had used the Depression) to seek fundamental—and to these authors—necessary changes to the country’s economic policies. 
 
For example, in the course of re-building America’s way out of the last recession, they observe that Obama (like Clinton before him) never challenged the economic imbalance between the corporations and ordinary working people that had been a hallmark of the Democratic Party from the 1930s through the 1980s. When it came to punishing wrongdoing, Obama refused to insist that the bankers who had profited from the bubble they had created in the housing market be held accountable. When it came to economic initiatives like the Affordable Care Act, he favored market solutions over government policies and direct interventions (unlike the alphabet soup of initiatives during the Thirties or The Great Society programs of the Sixties).
 
According to Reed Hundt’s Crisis Wasted (out last April) and Matt Stoller’s Goliath: The 100 Year War Between Monopoly Power and Democracy (coming in mid-October), Obama sought to preserve the pro-business status quo rather than rectify the economic imbalance that disadvantaged workers, families and communities while benefiting the American business owners who held (and continue to hold) a disproportionate share of the country’s wealth.
 
I agree with them that a crisis is a terrible thing to waste, and that the last one was a string of opportunities neither taken nor pursued. None of us should be willing to waste the next one.

+ + +

I’m defining a “crisis” here as a ground-deep unsettling of prior certainties. A political/economic/environmental/moral crisis tends to prove that “the ways we used to do it” are no longer working and, for a brief window of attention and opportunity, regular people are willing to explore (and even support) both different and better ways forward. It’s why from the perspective of our work, we need to be ready with arguments, data, plans, hope and visions for the better world that each of us wants when that window finally opens.
 
We don’t need to agree on the changes. (The bold-faced objectives above just happen to be some of mine). But I’d argue that all of us need to be active parts of the conversation, even when it’s full of anxiety and has a fevered pitch. Because it’s when your work really can “change the world” and when the personal satisfactions and sense of purpose that come with it can be similarly transformative.  
 
In 2016, a group of forward thinkers who were clustered around the University of Sussex in the UK created educational materials for anyone who is interested in seizing the opportunities of a world in flux. Those materials begin with powerful examples from history where:
 
– radical changes occurred in disruptive times that would not have been possible otherwise;
 
– to nearly everyone’s surprise, immediate changes were accepted by the public fairly rapidly; and 
 
– longer-term improvements followed, with some expected and others exceeding expectations.
 
The Sussex materials also describe how, in a host of practical ways, change-agents can capitalize on the opportunities crisis presents and maintain forward momentum. 
 
There is a broader discussion of their approach and a link to additional materials here.  If you’re interested in readying yourself to take full advantage of the opportunities after our gathering storms break and the re-building begins, I think you’ll find their approach empowering. 
 
Our work can always be aligned with deep motivations and high purposes, but the rewards are never more satisfying than when you’re helping to build a better world out of one that may be ending.

This post was adapted from my September 29, 2019 newsletter. When you subscribe, a new newsletter/post will be delivered to your inbox every Sunday morning.

Filed Under: *All Posts, Being Part of Something Bigger than Yourself, Being Proud of Your Work, Building Your Values into Your Work, Continuous Learning, Daily Preparation, Work & Life Rewards Tagged With: balance between people and profits, crisis wasted, economic policy, employer and employee assessment, environmental stewardship, opportunity during crisis, priorities, rebuilding, thriving workers, work, working

Maybe Uber Drivers Can Handle Amazon Deliveries Too

September 9, 2019 By David Griesing Leave a Comment

These days it seems like companies are pawning off as many risks, costs and responsibilities on workers as they can get away with. It’s particularly apparent among new gig-economy workers like Uber and Amazon drivers. The on-going transfer of economic burdens from companies to workers is a principal reason why many (and maybe most) Americans feel economically vulnerable today. 

At its heart, this is an ethical problem. Where do flourishing workers (families and communities) fall on our list of national and local priorities? Until very recently, the answer was “pretty low,” which is a key reason why there was such widespread discontent around the 2016 election and why it continues to unsettle our next one. Too many Americans feel that the economic security they have painstakingly built for themselves is being assaulted from all sides.

Since the 1980’s, government policies have massively favored businesses over workers, families and communities. This is simply a fact.

That preferential treatment includes policies that dictate who (between companies and individuals) pays and does not pay taxes, and how much each one of them pays. It includes lax enforcement policies that have enabled our most innovative companies (like Google, Facebook and Amazon) to achieve marketplace dominance by eliminating their competition and, in effect, operate however they want. It is also explained by the declining counterweight of organized labor and (until this year) by open trade policies that found the cost of an American worker directly competing with the cost a similar worker in China, Vietnam or Bangladesh. 

The net of these (and similar) forces over the past 50 years is that each American worker has been progressively owning a smaller and smaller share of the nation’s wealth given how little she’s compensated for her labor, while also being asked to pay more than she should for many “goods and services” in our consumer-driven economy. In other words, she’s being squeezed at both ends.

It’s hardly a recipe for flourishing workers, or for the families and communities across America that depend on them to thrive. 

Given the on-going, anti-workforce trend, I’m not being entirely facetious when I suggest that Uber drivers could be asked tomorrow to handle Amazon deliveries too. When all that we seem to care about is maximizing an Uber’s or an Amazon’s profits, an additional demand like this on gig-economy workers hardly seems out of the question. Why not pile even more onto them?

No wonder the social fabric feels like it is unraveling on the backs of the individuals (like you and me) whose strength it depends on at least as much as the companies that have organized and rallied us in profit-making directions.

         The Shift of Risks, Costs and Responsibilities to Workers Continues

Recent stories about workers at Amazon and Uber illustrate the exploitation and vulnerability that are all-too-familiar by-products of working in America today. Not only is there little-to-no safety net around these and other gig-economy workers; but more and more economic risk is continuously shoved onto them by companies that champion profits over paying their workers enough to provide the bare necessities for their families.

If you drive for Uber (or for one of the other car service companies) you’re probably no longer surprised when your passenger wants you to take him to the hospital with a medical emergency. According to a recent University of Kansas study and several recent podcasts picking up on it, Uber cars are commonly used as ambulances because in many parts of the country, taking an ambulance to the ER is not covered by health insurance and can run into the thousands of dollars. As a result, Uber drivers are being called upon to shoulder the financial responsibility (as well as the stress) of ferrying people who are often in extremis to emergency rooms across America. Of course, they never come close to recouping these psychological and risk-laden “costs” in their ride-hailing fees.

A mid-August op-ed in the Wall Street Journal describes another way that Uber drivers end up paying in ways they never contemplated. Few of these drivers appreciate that they are failing to recoup anything that even approximates the depreciation in value that comes from using their private cars—an amount the authors calculate at $11 billion a year, and another burden that Uber is off-loading onto its workers.

Once drivers understand that they are liquidating the value of their vehicles, in effect receiving pay-day loans with their cars as collateral, the effects may be significant. Companies like Uber, Lyft, Grubhub and Door-Dash may find it more difficult to recruit and retain drivers unless they raise prices and pay drivers more.

Another recent article decried how Amazon has exempted itself from any financial responsibility for its drivers who get in car accidents while they are making deliveries to Amazon’s customers. It is the delivery-driver’s car insurance (and his rising premiums) not Amazon’s that bear this expense. Under a clause in the driver’s contract, company profits are shielded from liability for personal injuries and property damage during the company’s delivery-related accidents. Of course many if not most drivers fail to realize that they have “accepted” this responsibility until it’s too late.
 
This summer, journalists at the New York Times also focused  on the working conditions at Amazon’s cavernous regional warehouses, where its employees toil side-by-side with increasingly nimble robots to ensure that the book or toiletry you ordered gets into the right box. One terrifying down-side in this “who’s more efficient, the human or the machine?” type of workspace, is the extent to which live employees are monitored down to the minute in the quest for almost robot-like efficiency throughout their shifts. In addition, because many fear that their jobs will be replaced by their robotic co-workers one day, they strive to meet an automaton’s level of performance to demonstrate their continuing value as employees.

Ironically, these Amazon warehouses are called “fulfillment centers,” but certainly not for the men and women who are becoming stressed out and broken down by working in them. Moreover, when considered in light of “morally acceptable work standards,” it seems fair to ask whether “free” deliveries, “same day” deliveries and customer convenience can be justified when the worker (family and community) costs are this high. 
 
Beyond Uber and Amazon, all of us are either moving from work towards retirement or have already retired. That’s what makes the next story—about home health workers—both heartwarming and chilling. 
 
Mostly women and often minority women, home health workers are the caregivers for millions of people who are still living at home but find themselves burdened by illness, disability or advanced age. These are “whatever-is-required” kinds of jobs, including feeding, bathing, administering medication, providing companionship and ensuring their clients’ personal safety and integrity. Home health workers are literally sustaining people’s lives, yet they struggle as a group to receive “a living wage” in exchange for their long hours and humanitarian service. 
 
As more people live to advanced age but want to avoid long-tern care facilities by staying at home, these health workers will be in even greater demand, but even the groups that are most likely to need their services are not calling for them to receive adequate pay. I, for one, would not want to hope that I’ll receive compassion when my caregiver isn’t being respected enough or paid enough to provide it. But still, according to the reporters in this story, most of these home health workers are, in fact, providing it. That means these women are, in essence, receiving pay-day loans with their human decency as collateral so that the health care companies that employ them can make as much money as possible. It’s one more shameful tradeoff.
 
Many American workers are also parents providing for their children. But according to a New York Times story last week, 67% of the 1000 parents surveyed said they had gone into debt to buy their children necessary items such as food, clothes and food, and 69% of them said that they kept these child-related debts a secret. 
 
Part of the reason that the economic insecurity of many (if not most) Americans has stayed below the radar is that many (if not most) Americans are either too proud to talk about it or too embarrassed to admit that they’ve failed to realize the American Dream. But their anxiety is real. It is manifest in our politics, and the full extent of the problem will (quite literally) “come home to roost” when the nation enters more turbulent economic waters or we find ourselves in the next recession.

It’s time to strengthen the social fabric with sound economic policies

While we have been victimized as “workers” and “families” by 50 years of government policies that have mostly favored business, we have also been victimized as “consumers,” right down to today.
 
This country functions on the proposition that we will bring our paychecks home, pay for our families’ necessities, and spend much of the rest buying what our consumer-oriented companies produce. Well, it turns out that in many instances we are overpaying as consumers too.

Because policy makers have largely failed to ensure healthy competition between companies through strategic application of the anti-trust laws, several companies in rapidly growing sectors of the economy have achieved near total market dominance—and the pricing power that comes with it. In other words, in an uncompetitive marketplace, dominant companies can charge consumers more (and sometimes far more) for their goods and services than they could in a more competitive one. This appears to be the case in the market for cell-phone plans.
 
In recent decades, regulators have allowed the cell phone service market in the US to consolidate. As recently as a few months ago, regulators allowed T-Mobile and Sprint to merge, reducing what little competition there had been even further. Well, a Wall Street Journal column this week highlighted a recent study showing that Americans, on average, pay 27% more than their French counterparts for cell phone service. The difference between the US and France is that the French enjoy a far more competitive market for these kinds of plans. On the other hand, when you allow markets to consolidate and grow un-competitive (as the US has done) higher prices are one of the consequences, but not the one one for individuals. As the study’s author notes:

declining competition has raised profit margins [for companies] and prices [for consumers] while reducing workers’ share of national income in the U.S.  By contrast, the labor share [of France’s and the rest of the EU’s economic prosperity] has remained constant in Europe.

What this means is that our piece of the economic pie as workers has also been reduced by the lack of competition at the very same time that the prices we pay as consumers are higher, and sometimes much higher than if there were more, say, telecommunications companies competing for our business.
 
All of this adds up to economically vulnerable and anxious Americans, whether they are viewed as workers, parents, community members or consumers.

While focusing on gig-economy workers in particular, a recent post here argued for “re-bundling” benefits around them to account for their occasional unemployment or uneven income streams, their loss of traditional health and retirement benefits, and their inability to obtain financing without a traditional 9-to-5 job. To the extent that these “new economy” jobs are likely to become even more plentiful as automation replaces “old economy” jobs, the wide-spread absence of a safety net like this threatens social stability and cohesion. But as the stories above suggest, the anxiety and economic insecurity is hardly limited to gig-ecocomy workers. Instead, it affects nearly all but the very richest Americans. 
 
The good news in this troubling story is that the imbalance may finally have begun to right itself.

A New Political Force for Workers and Consumers?

There are reasons for cautious optimism because of a recent action from within the business community. Last month, the Business Roundtable, comprised of the CEOs of America’s largest companies, issued what it called A Statement on the Purpose of a Corporation.

In a sharp break with the past, this Statement expressed a “fundamental commitment” to all of a company’s stakeholders: putting employees, suppliers and communities on a pedestal that once belonged only to the company’s investors (or shareholders). On “investing in employees,” the Statement said:

This starts with compensating them fairly and providing important benefits. It also includes supporting them through training and education that help develop new skills for a rapidly changing world. . . Each of our stakeholders is essential. We commit to deliver value to all of them, for the future success of our companies, our communities and our country.

If a core group of America’s most prominent business leaders (181 of them, in fact) makes good on this Statement, it will not be for altruistic reasons alone. A comment at the time in Axios which was called “CEO’s Are America’s New Politicians” lists several of the reasons that following through with corrective policies would be in these companies’ best interests too and not just a paternalistic gesture. Among other things:

–  Millennial employees demand their employers stand for something beyond profit;
 
–  It is getting harder to recruit and retain talent, especially tech talent, if profit is the only objective;
 
–  A rising number of consumers make purchasing decisions based on a company’s social purpose;
 
–  The media applies a lot more pressure on CEOs to take positions on political topics, such as race and immigration;
 
–  Every CEO/company is vulnerable to split-second, social media uprisings. Undefined CEOs and companies find it impossible to push back. 

The Roundtable’s corporate leaders are also aware that the desirability of “the capitalist system” that they safeguard is itself being debated in the run up to the next election. And finally, many of them seem to realize that acting on the Statement’s promises is the right thing to do given the imbalances that have grown between their companies and Amerca’s workers/ consumers over the past 50 years.  
 
What advocates for a flourishing workforce (and the families and communities they support) need to do is hold these corporate leaders to their noble sounding but still generalized promises. This business community needs to generate specific policy proposals and then put their considerable lobbying clout and bully pulpits behind them. For our part, we need to hail their efforts in our public statements and at the ballot box, if and when (as I hope they do) those efforts get underway.

+ + +

It is hard to escape the conclusion that America’s social fabric is both loosening and fraying. Much of the reason for this breakdown is the growing tide of economic anxiety and insecurity that has resulted from a half century where American business has gained while American workers and consumers have lost. In the political season ahead, each one of us will have many opportunities to support what is important to us. My argument is that we need to begin with thriving workers, families and communities.

This post was adapted from my September 8, 2019 newsletter. When you subscribe, a new newsletter/post will be delivered to your inbox every Sunday morning.

Filed Under: *All Posts, Being Part of Something Bigger than Yourself Tagged With: BRT Statement, Business Roundtable Statement on the Purpose of a Corporation, competition, consumer, economic anxiety, economic insecurity, flourishing workers, gig economy workforce, gig-economy workers, re-bundling of worker benefits, safety net, thriving workers, work, worker, workers, workforce

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