Posts Tagged ‘Morgan Stanley’

From 1996: Downsizing Guru Realises It Doesn’t Work

July 23, 2020

Remember the downsizing craze of the 1980s and 1990s, when Thatcherite economists all demanded that big firms should slim down through mass lay-offs and sackings? Firms were overstaffed, and it was all flab that needed to be cut out to make them ‘lean and mean’ in the marketplace.

Looking back through my scrapbooks of newspaper clippings, I found this article by the Daily Mail’s industrial correspondent, David Norris, ‘Guru of the job cutters admits downsizing has its down side’ in that paper’s edition for Monday, May 13, 1996. The article runs

‘An international economic guru who advocated massive job-shedding to make big business lean and fit has admitted he got it all wrong.

American Stephen S. Roach coined the word ‘downsizing’ in the early Eighties to sum up his philosophy that ruthless workforce pruning was needed to boost profits and productivity.

It was seized on around the world – not least in Britain, where hundreds of thousands of full-time jobs have disappeared over the last ten years.

His astonishing turnaround is certain to provoke more outrage against ‘fat-cat’ bosses, who have often used huge payroll savings to justify big salary rises for themselves.

‘Downsizing’ became a boardroom buzzword, with directors proudly telling shareholders that they were able to  pay higher dividends through redundancy-related cost-savings. The slick  term was more acceptable than talking of throwing people out of work.

Middle England has been worst hit, with thousands of white-collar jobs axed. High street banks have between them got rid of 90,000 staff since 1989. Downsizing has created a climate of insecurity which many blame for the still sluggish economic recovery. And the Government has lost millions of pounds in tax from workers axed from previously labour-intensive industries.

It emerged yesterday that Mr Roach, chief economist at the investment bank Morgan Stanley on Wall Street, announced his conversion in a memo to his firm’s clients.

He confessed he had now concluded that relentless cost-cutting was bad for business. ‘If you compete by building, you have a future. If you compete by cutting, you don’t’,’ the contrite guru said.

‘For years I have extolled the virtues of America’s productivity-led recovery. While I think it’s safe to say that such a scenario has become the new mantra for U.S. businesses in the 1990s, I must confess that I’m now having second thoughts.”

And he warned of a worker backlash ‘not on the shopfloor, but in the polling booths’.

That forecast was echoed by TUC boss John Monks yesterday.

He said: ‘Downsizing has done more than any other single business strategy to create the deep insecurity felt in Britain.

‘I hope this will herald a re-think in Britain’s boardrooms. Long-term success comes from steady investment and skilled, motivated staff.”

Around 38 per cent of Britain’s workforce – nearly ten million people – are now not in full-time permanent jobs. They are either in part-time or temporary work, or self-employed.

The main full-time job creation thrust has come from small firms, employing 20 staff or fewer. They have taken on 2.5 million extra workers in ten years.

Big retail chains have also taken on more workers. Tesco recently announced it was recruiting 4,500 to pack bags and generally assist shoppers. Last month it revealed record profits.

Late payment is still a problem for 45 percent of small and medium businesses.

The average time taken to be paid has risen from 52.8 days in 1994 to 53.2 this year, according to a survey by the Confederation of British Industry and accountancy firm Coopers & Lybrand.’

Ha-Joon Chang describes in his book, 23 Things They Don’t Tell You About Capitalism, how downsizing has literally driven firms bankrupt. They cut back their staff and plant so much in order to boost management pay and shareholder dividends beyond the point where they were economically viable. He argues that the most durable firms tend to be those where the state also has a stake in the firm, and so in maintaining it, or where the workers are also strongly involved in its management. Chang’s not anti-capitalist, but he states that shareholders are fickle – the moment they think a firm is no longer as profitable as another company, or is in trouble, they’ll sell their shares and go elsewhere.

Despite this attack on downsizing’s credibility and the loss of government revenue it has created, job insecurity has increased massively to the point where it is normal. Blair and Gordon Brown are as responsible for this as the Tories, as they accepted the neoliberal, Thatcherite dogma that the labour market had to be fluid and flexible. Which means that firms should find it easy to lay off staff and their should always be a supply of cheap workers waiting to be taken on.

Thatcherism has been a disaster. This clipping from a quarter of a century ago shows one of its central doctrines was recognised as such by the man who invented it even them. But it’s kept the rich richer, and the poor poorer, and so despite articles like this, it’s still being pushed.

And the result is a Britain of despair and poverty where working families, never mind the unemployed and disabled, are dying of starvation or forced to use food banks.

 

Jimmy Dore and Secular Talk Tear Apart anti-Corbyn Smears about Bankers

September 20, 2018

Mike on Pollard’s Smears

On Monday, Mike put up a piece attacking the latest anti-Semitism smear against Jeremy Corbyn by the hard-right editor of the Jewish Chronicle, Stephen Pollard. Corbyn had made a video describing how the banks were propping up the Tory government, because they protected and supported them at the expense of ordinary working people. Ten years ago the banks caused the massive crash, which led to the Tories pushing their austerity programme, which is cutting services and pushing ordinary folks into poverty. But while millions of people, including nurses and other vital workers and employees are finding it difficult to make ends meet, the chief of Morgan Stanley last year gave himself a 21.5 million pound bonus, and the banks together have given themselves 15 billion pounds in bonuses. Corbyn concluded his piece by saying that when these people called Labour a danger and a threat, they were right: Labour is a threat to a rigged system. The party now has well over half a million members, and will work for the many, not the few, and Socialist Voice. They pointed out that it was Pollard, rather than Corbyn, who was the anti-Semite. Corbyn said nothing about bankers being Jewish. Pollard did. Therefore, it’s Pollard who believes the anti-Semitic lie that all bankers are Jewish.

Pollard and a number of other gullible bigots immediately blew their tops and decided that when Corbyn talked about ‘bankers’, he was really using dogwhistles to express his hatred of the Jews.

Pollard’s comment was immediately ripped apart on Twitter by David Rosenberg, Another Angry Voice, Kerry-Ann Mendoza, Chelley Ryan, Curious Chak, Martin Frowd, Revolution Breeze, and The MANY versus the Few.

After being torn to shreds, Pollard issued a non-apology. He sort-of admitted that his comments may have been way off beam, but that was what happened when anti-Semitism was allowed to flourish: you saw everything through its prism.

Mike pointed out that this changed nothing, that Pollard still held anti-Semitic views in that he considered bankers to be synonymous with Jews, and that he had claimed that Corbyn was an anti-Semite, even though he stated that he had no evidence to support it.

So the left-wing twitterati returned to the job of tearing bloody chunks out of him, metaphorically speaking. Vote Labour to save the NHS, Audrey, Kerry-Ann Mendoza, and Hajo Meyer’s Violin. They pointed out that Pollard hadn’t apologized and was still showing his own anti-Semitic prejudices. Another Angry Voice tweeted a speech by Marie van de Zyle at a ‘Say No to Anti-Semitism’ event in Manchester, which was a pack of lies from one end to the other. Kerry-Ann Mendoza also tweeted about how she had been accused of anti-Semitism at an event. She described how IDF soldiers kidnap and torture Palestinian children. So she was accused of using the anti-Semitic trope that Jews eat babies. Sara tweeted that she wished to send a message of solidarity to Corbyn, and Tom London said that the schism between the two sides of the Jewish community could be mended if they were prepared to meet in good faith.

Mike concluded his article by stating it was worth a try.

https://voxpoliticalonline.com/2018/09/17/accidental-anti-semitism-of-jewish-chronicle-editor-shows-the-lie-at-the-heart-of-recent-accusations/

Secular Talk and The Jimmy Dore Show

The accusations have crossed the Atlantic. They were repeated in the American Jewish newspapers, the Forward. And the American progressive news shows Secular Talk and the Jimmy Dore Show weighed in to rip Pollard and the other fanatics claiming Corbyn was an anti-Semite apart.

Both Secular Talk, fronted by Kyle Kulinski, and Jimmy Dore and his guests, Ron Placone and Steffi Zamorano, play Corbyn’s speech. Kulinski hows some of the twitter comments from ordinary Jews smearing Corbyn as an anti-Semite. He states that this is what happens to Progressives. Like they tried smearing Bernie Sanders as a sexist and racist, but they couldn’t smear him as an anti-Semite, because he was Jewish. But this didn’t apply in Corbyn’s case. He points out that they’re doing it to the BDS movement. And they’re only using the anti-Semitism smear because they have no real arguments against what he says.

Jimmy Dore and his friends say the same thing, though they take square aim at Stephen Pollard. One of the tweets they show asks how it is that the Jewish Chronicle in London and the Forward in New York say exactly the same thing, on the same day. It’s a good question. The answer is probably that both newspapers are running the same stories because they’re collaborating with the Israeli Ministry of Strategic Affairs, which has been exposed as organizing the campaign of anti-Semitic smearing against pro-Palestinian and anti-Zionist activists. Dore makes the same point as Kulinski, that these tweets don’t show that Corbyn is an anti-Semite because he never mentioned the Jews. All he mentioned was Morgan Stanley. Which doesn’t have a Jewish name. But it does show how Pollard and the other tweeters do believe the anti-Semitic lie that all bankers are Jewish.

Dore also makes the point that this attempts to stop any criticism of the banks, or income inequality or indeed any left-wing issues, because if you do so, you’re an anti-Semite. It’s crying wolf.

And worse, it reduces the value of real accusations of anti-Semitism. Because if you accuse Jeremy Corbyn of anti-Semitism, who stands up for working people, then obviously anti-Semitism can’t be a bad thing. Just like the attacks on Bernie Sanders undermine real accusations of sexism, because if he’s sexist and works for ordinary people, then similarly sexism can’t be all bad.

Here are the videos.

The Jimmy Dore Show.

Secular Talk

I am not at all surprised that they tried attacking Corbyn on the grounds that talking about bankers must be left-wing code for Jews. I’ve seen it done before on Kathy Shaidle’s extreme right-wing blog, Five Feet of Fury. Shaidle’s from the other side of the Atlantic, but her blog is aimed at Conservatives in America, Canada and Britain. She used the accusation to attack American and Canadian critics of the banksters, who cause the crash. I suppose it was only a matter of time before Conservatives and the Israel lobby over here used the same smear.