Category: Business

25 March 2021, 6:37 PM

Headline of the Day

Amazon Denies Workers Pee in Bottles. Here Are the Pee Bottles

—Vice

What a surprise, the PR department of the ~~Sirius Cybernetics Corporation~~ Amazon lies through its teeth.

They claim that their workers are well treated, and are free to take pee breaks, which is belied by the pictures of pee bottles in Amazon trucks and warehouses.

Amazon claims its workers don’t pee in bottles; defenders say it’s an urban legend. But these photos sent to me by a former driver for a former @amazon contractor called Synctruck in a California facility suggest strongly otherwise. https://t.co/hp4zCqOxRO pic.twitter.com/StHNvV9B1x

— Ken Bensinger (@kenbensinger) March 25, 2021

A memo specifically telling workers to remove their urine bottles at the end of a shift

What’s more, Amazon actually has posted notices telling workers to clean up their urine bottles at the end of a shift. (See attached Tweet)

They demand a schedule that allows no time to pee, and it is impossible to make schedule unless you pee in a bottle, because it’s (at least) 15 minutes to find and use a bathroom and return to deliveries.

In a just world, Jeff Bezos would be sentenced to a life of working for ……… Jeff Bezos.

One of the responses to that tweet is telling:

And yes, I know, that Crassus did not actually die in this manner, though he was almost as contemptible as Bezos:

The first ever Roman fire brigade was created by Crassus. Fires were almost a daily occurrence in Rome, and Crassus took advantage of the fact that Rome had no fire department, by creating his own brigade—500 men strong—which rushed to burning buildings at the first cry of alarm. Upon arriving at the scene, however, the firefighters did nothing while Crassus offered to buy the burning building from the distressed property owner, at a miserable price. If the owner agreed to sell the property, his men would put out the fire; if the owner refused, then they would simply let the structure burn to the ground. After buying many properties this way, he rebuilt them, and often leased the properties to their original owners or new tenants.

This is an attitude toward public service that I am sure Jeff Bezos would admire.

23 March 2021, 6:13 PM

Finally, Someone Suggest Breaking Out the Handcuffs

Someone states the obvious, that if you want to rein in tech giants, start treating them like the criminals that they are.

Between criminal violations of anti-trust laws, violations of wiretapping laws, securities law violations, and conspiracies to violate laws and regulations (Uber, AirBnB, etc.) these guys should be subject to arrest, trial, and imprisonment”

On March 25, the CEOs of Google, Facebook, and Twitter will once again testify before a committee of the House of Representatives, this time about the spread of disinformation on their platforms.

………

Fortunately, there are two options to buy time, neither of which requires congressional action. It merely requires the government to apply regulatory tools that do not get used frequently, namely subjecting business executives to felony prosecution.

The first option is an antitrust case against Google led by the attorney general of Texas that alleges a price fixing conspiracy in digital advertising. The complaint names Facebook as a co-conspirator. Price fixing falls under Section 1 of the Sherman Act, significant because it does not require proof of harm. The attempt itself is a crime. And if, as has been alleged, there is evidence of an agreement for mutual legal defense, there may be a second count. When appropriate, executives can be subject to felony prosecution, punishable by up to three years in prison. Google denies any wrongdoing.

………

The second option would be a securities fraud investigation by the Securities and Exchange Commission. For a decade or more, journalists have reported evidence of overstated user counts and advertising views by internet platforms. They assert that a material percentage of advertising clicks are manufactured by fraudsters exploiting the lack of transparency in digital advertising. The opacity of all digital ad platforms relative to traditional media and Google’s dominance of digital ad infrastructure have prevented a thorough accounting.

………

Securities law requires public companies to report accurate numbers. For internet platforms, user count and ad views are key to investor sentiment, the latter an essential revenue driver. If ad views are overstated, then revenues must also be overstated. If the overstatement occurred over many years, with the knowledge of the executives, then the SEC has the option to pursue a felony case, creating legal jeopardy for senior executives who may face prison time. Such cases are not common, but the circumstances surrounding internet platforms certainly warrant a thorough investigation.

While it has not been a common practice to use felony cases to reform an industry, these are extraordinary times. The goal is not to put executives in jail, but rather to create incentives for good faith negotiation with corporations whose behavior poses a threat to society and the authority of the government.

It used to be common practice to use felony cases to reform an industry, just look at the prosecutions, and long jail sentences in the 1930s, see the fate of Richard Whitney, former head of President of the NYSE.

He was not the only one.

………

The Biden administration wants to restore faith in government. Its aggressive actions to distribute Covid vaccines and pass the American Recovery Act are important first steps, but not enough. Directing executive branch agencies to enforce the antitrust and securities laws against flagrant violators would be welcome next steps. Doing so against Google and Facebook would begin the process of reforming an industry that continues to act recklessly.

I know I say this a lot, but I want to see them frog-marched out of their offices in handcuffs.

11 March 2021, 7:11 PM

I Picked the Right Time to Switch to Verizon®

As I noted yesterday, my family and I changed my provider from Sprint^® to Verizon^®.

To be sure, the problem was not with Sprint^® per se, it was because Verizon^® gave us a better deal, particularly since we were already FIOS^®, the land line fiber service, customers, particularly with regard to getting new phones for Sharon, Natalie, and Charlie. (We’ll be saving about $50 a month including various discounts, and replacing Sharon’s^* and the kid’s decrepit cell phones for free.)

That being said, I have had some misgivings about the T-Mobile^®‘s takeover of Sprint^® a few years back, and the increasing move to T-Mobile^®-ize Sprint was concerning.

What I did not expect T-Mobile^® to do though was to attempt to aggressively spy on its customers to collect ad dollars, but is what they did, as the folks at The Register noted, ” Privacy Purists Prickle at T-Mobile Us Plan to Proffer People’s Personal Web, App Pursuits to Ad Promoters.” (Seriously, El Reg’s headline writers should get a Pulitzer)

T-Mobile is requiring users to opt out in order for them not to share data like, phone location, apps installed on the phones, web browsing habits.

T-Mobile^® is claiming that the data is “Anonymized”, but each phone user will have a unique identifier, and by aggregating as few as 5 data points, the likelihood of specifically identifying a user becomes well more than 90%. (The term is “Profiling” or “Stalking”)

What’s more, as the folks at Ars Technica note the opt-out process is (unsurprisingly) not working reliably, “We’ve heard from customers who say they’ve had problems opting out so you may have to try multiple links or make multiple attempts,” because ATAB (All Telcos Are Bastards).

It’s a rather depressing turn of events for a wireless company that markedly improved consumer treatment in the US market a few years ago.

^*Love of my life, light of the cosmos, she who must be obeyed, my wife.

2 March 2021, 6:55 PM

Why Facebook is Freaking Out Over Apple

About 7 months ago, I mentioned that a Dutch broadcaster turned off tracking ads, and went with simple contextual ads, and earned more money.

Contextual ads are, for example, you read a story and the ads are based on what you are reading, so if you were looking as sports, you would get ads for beer, and if you were looking at barbecue recipes, you would get ads for beer, and if you were reading a story about a heat wave, you would get ads for beer.

Tracking ads, on the other hand will look at everything that you have done in the past 18 months, and determine that because you looked at sports, barbecue, and the weather, you get served an add for beer. (all ads lead to beer, but that is another post)

The reason that tracking ads are more popular these days is because they are supposed to get higher response rates..

Certainly, that is what the incumbents, like Facebook and Google want you to think, because if contextual ads work just as well, then pretty much anyone can go into the online ad business, and Google and Facebook can no longer slurp up most of the revenue

This is why Facebook is going nuclear about Apple’s new privacy policies, which will require an explicit opt-in for tracking.

It’s not because they would lose a whole lot of money with this, they would still sell ads, but because this is a massive A/B test on the internet giant’s business model.

If advertisers find that non tracking ads work just as well, or nearly so for less money, they will switch to non-tracking ads.

This is why we have leaked emails in which Mark Zuckerberg states that, “We need to inflict pain,” on Apple.

I’m inclined to believe that Mark Zuckerberg already knows that the ad tech he sells is a lie, and the emperor does not wish to reveal his sartorial choices.

All this is a long way around to seeing that we now have another data-point in addition to the Dutch broadcaster NPO, we also have the New Zealand news site Stuff, which has abandoned Facebook to no effect. (They did so because of Facebook’s irresponsibility both before and after the Christchurch shootings)

The short version, (video below) is that Stuff cut advertising spending on Facebook with, “No traffic impact at all,” and since they stopped posting on Facebook, they have been unable to tease out any impact on traffic.

Video below:

22 February 2021, 9:44 PM

I Hope That This Is Illegal

Not that anyone will be prosecuted for it, because it is Alabama, but Amazon offering $2,000 “Resignation Bonuses” so that it can replace potentially pro-union workers with scabs ahead of the vote is skeevy as hell.

Bribes in union elections are expressly forbidden under the NLRA, and I am pretty sure that this is a bribe not to vote, particularly since they are giving the impression that they will hiring folks back after the union election: (Yeah, sure)

As the historic union election at Amazon in Alabama heats up, Amazon is pulling all the tricks to stop the union.

In violation of Amazon’s social distancing policy, Amazon has forced workers to attend anti-union meetings and sent workers constant text messages daily, hinting that a union could possibly lead to the warehouse closing. Amazon has even gotten the local authorities to shorten the time of stoplights outside of the plant so that union organizers can’t hand out pro-union literature to workers passing in their cars.

Now, Amazon is doing something that labor observers have never seen before in a union election; they are offering $2,000 “resignation bonuses” to quit.

Last night, workers throughout the plant received emails offering them bonuses if they simply quit their jobs. The emails offer workers, who worked for 2 peak seasons, at least $2,000 to quit. If workers have been there at least 3 peak seasons, they are offering them $3,000.

Some Amazon workers, who dislike their job at the warehouse, may find the bonuses a tempting bridge to quit their job and seek something better. Workers are even being told that if they quit now that they could regain their jobs later after the union election.

However, if workers quit now, they won’t be eligible to vote in the ongoing union election. In the meantime, many labor observers expect that Amazon will seek to hire replacements that will vote solidly anti-union.

“That should be illegal, how can you pay someone to resign,” says 48-year-old Black Amazon worker Jennifer Bates “They are going all the way, they are pulling out all the stops”.

Under federal labor law, the bonuses could be considered a bribe and could lead to the union election being thrown out. Employers are strictly forbidden from improving the material conditions of workers in the lead up to elections and the “resignation bonuses” could be grounds for the union to petition the National Labor Relations Board (NLRB) to order a new union election if RWDSU loses this round.

Keeping this in litigation for the next decade is a part of Amazon’s strategy.

You won’t stop this without frog marching senior executives out of corporate offices in handcuffs.

20 February 2021, 8:44 PM

Rule 1 of Regulating Businesses: Businesses Will Lie to Avoid Regulation

Rule 2 is, “See Rule 1.”

Case in point, when faced with the prospect of regulation enforcing a right to repair, John Deere lied when it said that future products would allow for more maintenance to be performed by the farmers themselves.

These products are out now, and they are not user-repairable, and intentionally designed not to be user repairable:

In September 2018, a trade group that represents John Deere and a series of other tractor and agricultural equipment manufacturers made a promise intended to stave off increasing pressure from their customers and to prevent lawmakers from passing what they said would be onerous repair regulations. They vowed that, starting January 1, 2021, Deere and other tractor manufacturers would make repair tools, software, and diagnostics available to the masses.

This “statement of principles,” as it was called at the time, was nominally designed to address concerns from farmers that their tractors were becoming increasingly unrepairable due to pervasive software-based locks that artificially prevented them from fixing their equipment. As Motherboard repeatedly reported at the time, farmers were being forced to go to “authorized” John Deere dealerships and service centers to perform otherwise simple repairs that they could no longer do because they were locked out of their equipment and needed special software to unlock it. To get around this, some farmers had begun hacking their tractors with cracked software from Ukraine.

A host of states were considering “right to repair” legislation that would have compelled Deere and other manufacturers to abandon these artificial software locks, to make repair tools and guides available to the general public, and to, broadly speaking, allow farmers to fix the tractors they owned.

Deere, the Association of Equipment Manufacturers (the lobbying group that represents Deere and several other large manufacturers), and the Equipment Dealers Association announced this “commitment” to farmers in order to prevent any of this legislation from passing; the thinking was that if manufacturers like Deere provided some of the things that right to repair legislation would have required, they could explain to lawmakers that these bills (which provided more consumer control) weren’t actually necessary.

This was a big deal in the farm world. In California, The Far West Equipment Dealers Association (which represents authorized dealers in seven western states) signed a “Memorandum of Understanding” with the California Farm Bureau that enshrined this statement of principles, printed out a giant poster of it, and then displayed it in a signing ceremony and photo-op. It was seen as a grand compromise, and farmers were the winners.

………

It is now three years later. The agreement is supposed to be in effect. No right to repair legislation has been passed. Deere, the dealers, and the manufacturers got what they wanted. And, yet, farmers are still struggling to get anything promised in the agreement.

………

Kerry Sheehan, iFixit’s head of US policy, points out that currently, the “only John Deere repair tools we can find” are these children’s toys.

David Ward, a spokesperson for the AEM, the manufacturers’ lobbying and trade group that often represents John Deere, told Motherboard that “Equipment manufacturers support farmers right to repair their equipment. Comprehensive repair and diagnostic information is now available for the vast majority of the tractor and combine market through authorized dealers. While we do not track it, specific information on pricing varies based on manufacturer.” A follow-up email from Motherboard that asked if he could point to a single instance where this is actually the case, or a single manufacturer that explains to farmers where they can get this information or these tools, was unreturned.

………

New sensors and software in tractors have led to this problem. For decades, many farmers did their own repairs. By-and-large, they can no longer do this: the proliferation of onboard computers and fancy equipment in newer models of tractors and combine harvesters has made it hard for farmers to repair the tools they need to keep the country fed.

………

The problem is that farmers often don’t have access to the diagnostic software and repair tools they need to make the fix. According to U.S. PIRG, the John Deere S760 combine harvester has 125 different computer sensors in it. If those sensors start throwing an error code, the combine won’t run and the farmer doesn’t have immediate access to the tools they need to fix the problem.

“It doesn’t matter how industrious they are, what their planting window looks like, or if their tractor goes down right as weather threatens to destroy their crop—modern farming equipment is designed so that farmers need to call the dealership to repair their machines,” O’Reilly said.

………

The problem with new machines is so bad that farmers are taking drastic action to repair their own equipment. Some have become hackers, using software and tools they’ve found online to diagnose and repair their equipment. Others are buying 40-year old tractors because they still function and they’re more repairable than new models.

As an aside, these “40-year old tractors” are now selling for more money than their newer counterparts.

As the problem has become more pronounced, legislators are trying to pass right-to-repair laws that would help farmers repair their own equipment. LC 1562 in Montana is one example, a simple piece of legislation that would make it easier for farmers to access the information they need to make repairs.

“What the bill does, overall, is give the owner the ability to purchase the diagnostic tools to make repairs themselves, saving time and money,” Katie Sullivan, a Missoula area state representative said during the town hall. “It supports farmers who don’t have the time to wait for mechanics or have the extra money to spend just to fix a small issue.”

………

Deere has claimed that it can’t allow farmers access to the computer system at this level because it’s a security risk and might lead to farmers breaking federal law. “Sometimes, these modifications can be altered and now the machine is not functioning as it was intended,” Vancil said at a webinar about right to repair with the Florida Farm Bureau last week. “It also starts getting into some areas, if you’re talking about emissions, that get into the area where you start having federal topics being introduced from an emissions standpoint.”

This is the same reasoning used by car manufacturers in their attempts to hamstring independent car repair shops.

It is, and remains, complete bullsh%$.

………

It would not be difficult for John Deere and other manufacturers to comply with a right to repair law, or, at the very least, to abide by its own promise. Europe has had some right to repair regulations which require “standardized access to repair and maintenance information (RMI) systems to provide repair and maintenance information for vehicles used in agriculture and forestry” since 2013, and manufacturers comply with those.

And so the solution in the United States seems like it’s going to have to be the same. Not a promise from manufacturers and dealers, but legislation with the force of law.

As is always the case, with profit driven businesses.

They will not voluntarily cede a revenue stream, even if it is unfair and abusive, until such time as they are forced to through statute or regulation.

26 August 2016, 6:19 PM

I Am Not Sure What This Means

ITT Educational Services, you’ve probably seen their ads for ITT Technical Institute, has been prohibited from enrolling new students using any federal aid

It sounds like a big deal, but the educational chain has been circling the drain for a while, so it’s not like the Depoartnebt if Education went after a major going concern.

It has been showing signs of financial distress for some time, and its accreditation has been problematic as well:

The federal Department of Education imposed strict new rules on Thursday on one of the nation’s largest for-profit education companies, ITT Educational Services, barring it from enrolling new students who use federal financial aid and ordering it to pay $153 million to the department within 30 days to cover student refunds if its schools close down.

John B. King Jr., the secretary of education, said the department took action to protect both ITT’s students and the taxpayers who are on the hook for losses when students default on their federal aid. “Looking at all of the risk factors, it’s clear that we need increased financial protection and that it simply would not be responsible or in the best interest of students to allow ITT to continue enrolling new students who rely on federal student aid funds,” Mr. King said in a statement.

The action threatens the viability of the beleaguered company, which like most for-profit education entities relies heavily on government financial aid programs for students to fund its operations. As of June 30, according to a regulatory filing, ITT had only $78 million in cash on its balance sheet.

Dead School Walking.

ITT operates 137 campuses in 39 states, providing career-oriented programs to 43,000 students at ITT Technical Institute and Daniel Webster College locations. ITT was once a highflying stock, trading above $75 a share in 2012. On Thursday, its shares closed at $1.40.

Ouch.

The company has been under increased scrutiny by the Education Department since 2014 and has been accused by both federal and state regulators of misleading students about the quality of its programs and their employment potential upon graduation. The Consumer Financial Protection Bureau filed a lawsuit against ITT two years ago, accusing the college chain of predatory student lending.

In addition to the enrollment restrictions imposed by the Education Department, ITT is also prohibited from awarding raises to employees, paying bonuses to its executives or paying special dividends without department approval. In recent years, ITT has not paid bonuses to its executives. Still, Kevin Modany, its chief executive, received total compensation of $1.4 million last year, the company’s proxy statement shows.

The Education Department also required ITT to develop “teach-out” plans for current students, allowing them to finish their programs at other colleges if ITT shuts down.

ITT, based in Carmel, Ind., must also inform its students that its accreditor, the Accrediting Council for Independent Colleges and Schools, has determined that the institution is not in compliance with its criteria. That determination was made this month. Earlier this year, ITT said it believed its schools were in compliance, but it also acknowledged that if the schools lost the accreditation, they would no longer have access to government loan programs.

Those programs are the lifeblood of ITT and other for-profit education companies. Federal aid accounted for almost 70 percent of ITT’s $850 million in revenues last year, the Education Department said.

It would be nice if it happened when predatory for profit schools were not already in a death spiral.

24 August 2016, 8:12 PM

Those Old Family Ties

Bummer of a Birth Mark, Jim

One of the stories floating around right now is that Mylan Pharmaceuticals jacked up the price of EpiPens by over 400% over the past few years.

Given the state of the American pharmaceutical industry, we’ve seen something similar from the 3 manufacturers of insulin colluding on price hikes, it’s not a particularly surprising or unique state of affairs.

What is news however is that Heather Bresch, the company’s CEO, is the daughter of Senator Joe Manchin (D-WV), and Mylan is one of the most generous donors to him.

In fact, a former Mylan lobbyists, Michael Garrison, appointed president of the University of West Virginia by Manchin when he was governor had to resign in disgrace when he bent the rules to give Heather Bresch an unearned MBA.

So now this linkup is hitting the mainstream news:

The growing congressional scrutiny of pharmaceutical giant Mylan over the high cost of EpiPens could prove awkward for Sen. Joe Manchin.

The West Virginia Democrat’s daughter, Heather Bresch, is chief executive of the company, which appears to have hiked the price of the epinephrine auto-injector by 400 percent since 2007. The device, which is used to treat severe allergic reactions, now costs more than $600 per dose.

This price increase has become a public relations disaster for Mylan and at least four of Manchin’s Senate colleagues are either pressing the company to reduce the cost of EpiPens, asking it to explain the price increase or requesting federal regulators to investigate the matter. Manchin is not a member of the Senate Judiciary Committee, which has shown the most interest in probing Mylan’s pricing practices, and so far the senator is not discussing the issue.

Manchin has spent his time in the Senate being a Joe Lieberman Democrat, so I have absolutely no sympathy for the fact that he is getting jammed up by this.

22 August 2016, 6:25 PM

And the Infection Spreads

The Wheels bus system in northern California has decided to start subsidizing Lyft and Uber:

In a first for California, a public transit agency next month plans to begin subsidizing fares of people who take private Uber and Lyft cars to local destinations rather than riding the bus.

Passengers ordering Uber or Lyft car trips within two test areas of Dublin will be eligible to get door-to-destination service at a big discount under a partnership between the ride-hailing companies and the Wheels public bus system in Dublin, Alameda and Pleasanton.

The Livermore Amador Valley Transit Authority, which operates Wheels, said the one-year pilot project could help pave the way for changes in how public transit agencies in the United States serve suburban areas hampered by far-flung bus routes, few riders and little money from fares.

This is going to end in a morass of corruption and incompetence.

See my post on the city of Arlington, VA considering the same here.

22 August 2016, 6:01 PM

Charter School Fail

In a bit of news that should surprise no one, it turns out that charter school students do slightly worse later in life than public school students:

Charter school boosters have many arguments in favor of fostering a publicly-financed, privately run parallel education system. But at the end of the day, their model should help kids learn more, perform better, get good jobs and earn a higher salary than they might have otherwise, right?

By that metric, it appears that Texas’ charter schools have failed, according to a large-scale study of kids from the K-12 system through early adulthood.

The analysis was conducted by Will Dobbie, an assistant professor at Princeton, and Roland Fryer, the Harvard economist who in recent years helped Houston ISD adopt charter school methods (you might also remember his name from research on Houston’s police-involved shootings). It uses data from Texas state agencies that tracks student achievement and demographics from primary school, through college, and on to the labor market.

Texas is the ideal laboratory for this kind of study. It introduced charter schools way back in 1995, and they now enroll 3.5 percent of the public school population. The schools have thus had time to refine their methods and work out some kinks, while their students have had time to test their mettle in the labor market.

< The findings: On average, charter schools have no meaningful effect on test scores or employment, and actually have a slight negative impact on earnings. The results are slightly better for so-called “no excuses” charters, which feature stricter discipline and extended instructional hours — they increased test scores and four-year college enrollment and had no effect on earnings. Regular charter schools boosted two-year college enrollment, but depressed test scores, four-year college enrollment, and earnings.

The idea behind charter schools has always been that unleashing the market on education will create amazing result.

It has been about as effective as the idea of “Unleashing Chiang” (Kai Shek) on the communists in mainland China was.

You can read the full study here.

21 August 2016, 7:56 PM

Am I the Only Who Sees Fail Written All Over This?

NASA is looking at handing operations of its space station to private business in the next decade:

NASA is giving us some more insight into its plans to get humans to Mars, under the blanket mission called ‘Journey to Mars,’ and during the press conference, NASA Deputy Associate Administrator for Exploration Systems Development Bill Hill revealed that the current hope is to hand off control of the International Space Station to a commercial owner by sometime around the mid 2020s.

“NASA’s trying to develop economic development in low-earth orbit,” Hill said, speaking on a panel of NASA staff assembled to discuss the upcoming Mars mission. “Ultimately, our desire is to hand the space station over to either a commercial entity or some other commercial capability so that research can continue in low-earth orbit, so that research can continue in low-earth orbit.”

The timing fits with the end of The U.S. Government’s current funding of the ISS program, which was extended by President Obama’s administration from its original deorbiting date of 2016 through 2020. Operations were prolonged through 2024 to help give NASA a platform from which to run its near-Earth preparatory missions leading up to the ultimate manned mission to Mars.

If this works as well as the privatization of British rail, I would be very surprised.

20 August 2016, 9:15 PM

Wait ……… Who is Calling the EpiPen Manufacturer Vultures?

The manufacturer of the EpiPen, Mylan pharmaceuticals, has been raising the price of the pens by 15% every 6 months for years.

It’s gotten so bad that pharmaBro Martin Shrelki has just called the company vultures:

A growing chorus is calling on the Mylan pharmaceutical company to justify its price hikes on EpiPens, a potentially life-saving medication for children and others facing fatal allergies that has little real competition.

In 2007, a two-pack of the epinephrine-filled devices went for $56.64 wholesale, according to data gathered by Connecture, a health insurance data specialist. Now it’s jumped to $365.16, an increase of 544.77 percent. Since the end of 2013, the price has gone up by 15 percent every other quarter.

Doctors, parents, patients, and a former presidential candidate are speaking out on social media — and negative comments are filling up Mylan’s Facebook page following an NBCNews.com story Wednesday.

………

Even Martin Shkreli, the disgraced former chief executive of Turing Pharmaceuticals, has weighed in.

“These guys are really vultures. What drives this company’s moral compass?” he told NBC News in a phone interview.

In 2015, Shkreli famously jacked up the price of Turing’s malaria and HIV medicine Darapim overnight, from $13.50 to $750, a move that earned him a grilling by the House Committee on Oversight and Government Reform in February — and the nickname “Pharma Bro” for his seemingly carefree attitude toward affordable medication.

Our model of pharmaceutical production and research and development is fundamentally broken.

We have expanded IP protections on drugs over the past 40 years, and what we have seen is that drugs have become less affordable, and efforts of the drug companies have moved from cures to finding ways to evergreen those IP protections.

18 August 2016, 7:49 PM

A Good Start

The Department of Justice has announced that it will be ending its use of private prisons:

The Justice Department plans to end its use of private prisons after officials concluded the facilities are both less safe and less effective at providing correctional services than those run by the government.

Deputy Attorney General Sally Yates announced the decision on Thursday in a memo that instructs officials to either decline to renew the contracts for private prison operators when they expire or “substantially reduce” the contracts’ scope. The goal, Yates wrote, is “reducing — and ultimately ending — our use of privately operated prisons.”

“They simply do not provide the same level of correctional services, programs, and resources; they do not save substantially on costs; and as noted in a recent report by the Department’s Office of Inspector General, they do not maintain the same level of safety and security,” Yates wrote.

Note that this only applies to federal prisons run by the DoJ, not state and local prisons or immigrant detention facilities maintained by the Department of Homeland Security.

As to whether this policy will move quickly enough, my guess is that we’ll have to wait for the next President.
Memo after the break.

18 August 2016, 6:33 PM

WalMart Doesn’t Just F%$# the Taxpayer Over Welfare, Medicaid, and Foodstamps

It also deliberately avoids engaging in actions that might reduce drime so as to put the load on the local police as well:

………

Police chiefs and their officers on the ground say that’s just not so. Ross likes to joke that the concentration of crime at Walmart makes his job easier. “I’ve got all my bad guys in one place,” he says, flashing a bright smile. His squad’s sergeant, Robert Rohloff, a 34-year police veteran who has to worry about staffing, budgets, and patrolling the busiest commercial district in Tulsa, says there’s nothing funny about Walmart’s impact on public safety. He can’t believe, he says, that a multibillion-dollar corporation isn’t doing more to stop crime. Instead, he says, it offloads the job to the police at taxpayers’ expense. “It’s ridiculous—we are talking about the biggest retailer in the world,” says Rohloff. “I may have half my squad there for hours.”

Walmart knows police departments are frustrated. “We absolutely understand how important this is. It is important for our associates, it is important for our customers and across the communities we serve,” says Judith McKenna, Walmart’s chief operating officer for the U.S. “We can do better.”

But when? That’s what law enforcement around the country wants to know. “The constant calls from Walmart are just draining,” says Bill Ferguson, a police captain in Port Richey, Fla. “They recognize the problem and refuse to do anything about it.”

There’s nothing inevitable about the level of crime at Walmart. It’s the direct, if unintended, result of corporate policy. Beginning as far back as 2000, when former CEO Lee Scott took over, an aggressive cost-cutting crusade led many stores to deteriorate. The famed greeters were removed, taking away a deterrent to theft at the porous entrances and exits. Self-checkout scanners replaced many cashiers. Walmart added stores faster than it hired employees. The company has one worker for every 524 square feet of retail space, a 19 percent increase in space per employee from a decade ago.

………

Police departments inevitably compare their local Walmarts with Target stores. Target, Walmart’s largest competitor, is a different kind of retail business, with mostly smaller stores that tend to be located in somewhat more affluent neighborhoods. But there are other reasons Targets have less crime. Unlike most Walmarts, they’re not open 24 hours a day. Nor do they allow people to camp overnight in their parking lots, as Walmarts do. Like Walmart, Target relies heavily on video surveillance, but it employs sophisticated software that can alert the store security office when shoppers spend too much time in front of merchandise or linger for long periods outside after closing time. The biggest difference, police say, is simply that Targets have more staff visible in stores.

“Target doesn’t have these problems,” says Ferguson. “Part of it may be the lower prices at Walmart or where Walmart is located, but when I walk into Target I see uniformed security or someone walking around up front. You see no one at Walmart. It just seems like an easy target.” A Target spokeswoman declined to comment on the two companies’ security policies.

………

Dennis Buckley found a way to get Walmart moving faster on crime: shaming and threats. A blunt former fire chief, Buckley is the mayor of Beech Grove, Ind., an Indianapolis suburb with a population of 14,000. He’d been swamped with complaints from his police chief about the daily calls to Walmart. He demanded action from Walmart’s local lawyer, as did the City Council. Nothing happened. Then, in June of last year, Buckley reached his limit. He received news that a local woman had been killed and her grandson seriously injured in a car crash caused by a Walmart shoplifter fleeing police. Later that day, he learned his town had become a laughingstock. A YouTube video of a fight at the Beech Grove Walmart was going viral. It showed two women, one riding a motorized scooter, the other accompanied by a 6-year-old boy, in a furious fistfight that turned into a profane wrestling match in the shampoo aisle. The video also contained glimpses of jeering bystanders recording the action on their phones. By the time Buckley saw the video, it had been viewed millions of times.

Enraged by the circus atmosphere around the video, he denounced Walmart on Facebook and in the local media. “The Beech Grove Walmart is NOT a good corporate partner,” he posted. The YouTube video “was embarrassing to the City of Beech Grove and the people who live in our beautiful city. Walmart should be ashamed of itself once again for failing to control the people who enter their store.”

Regional Walmart executives asked for a meeting with Buckley and Craig Wiley, the city attorney. “You could tell by their body language that they came to the meeting with a very conciliatory tone, and they were going to get their arms around the problem,” Wiley says. Walmart promised to hire security and extend a fence on the rear of its property, which barred an easy exit for shoplifters into a retirement community. It said it would skip calling the cops for first-time offenders shoplifting merchandise valued below $50 if the shoplifter completes the company’s theft-prevention program.

Buckley was pleased. But in the weeks following the meeting, Walmart dragged its heels. Buckley went public again, this time appearing on national cable news. “Walmart Beech Grove is draining our police resources,” he told Fox Business Network. “It’s the string of terrible events that have been occurring down there over the past two months that have led me to instruct our police chief to declare the Walmart a public nuisance.”

That meant the threat of a $2,500 fine for every call to the police. Walmart now pays for off-duty police to man the store, and the pressure on the local police has eased. A year later, Buckley is pleased, but it still irks him that he had to go to such measures to get Walmart to act. “Cities really need to put their thumb down and get them to the table,” he says. “It’s taken a long time, but they can really be good partners if they want to be.”

(emphasis mine)

Yet another reason to avoid the stores.

For many years their business model has been to suck the marrow out of society for profit, and I do not see this changing.

H/t Naked Capitalism.

16 August 2016, 9:47 PM

From Libertarian Ubermensch to Sucking at the Taxpayer’s Tit

The city of Arlington Virginia is looking at paying Uber to take people to metro stops:

Arlington County is looking to partner with transportation providers such as Uber and Lyft to offer residents rides from more remote residential areas of the county where bus service to Metro stations is limited.

The on-demand option would replace some fixed bus service in north Arlington.

“What we would be supporting is picking up residents in their neighborhood and taking them to one or two designated stops, most likely a transit station,” said Marti Reinfeld, the county’s interim transit bureau chief. “The county will subsidize that at some level.”

It could take a couple of years before such a program launches, but county transportation officials say they want to do so as soon as possible. Arlington joins a growing number of U.S. transit agencies that are exploring partnerships with the popular app-based companies to leverage their success and improve service to residents.

I guess that Uber is changing its business plan: Instead of just abusing and endangering drivers and passengers, they will now also suck up taxpayer money that would otherwise go to providing decent mass transit.

This has “fail” written all over it.

15 August 2016, 8:04 PM

My Next Computer is not Going to Be Windows 10

The latest Microsoft operating system is a privacy horror show:

By default, Microsoft gets to see your location, keystrokes and browser history — and listen to your microphone, and some of that stuff is shared with “trusted [by Microsoft, not by you] partners.”

You can turn this all off, of course, by digging through screen after screen of “privacy” dashboards, navigating the welter of tickboxes that serve the same purposes as all those clean, ration-seeming lines on the craps table: to complexify the proposition so you can’t figure out if the odds are in your favor.

Oh, and if you’ve already chosen to use Firefox as your default browser, Microsoft overrides your decision when you “upgrade” and switches you to the latest incarnation of the immortal undead monster formerly known as Internet Explorer.

See also here, where they note that you cannot shut the service off except by getting deep into dodgy operating system functions, and it listens to everything that you say.

A ain’t gonna go Mac though: I hate walled gardens, so it’s probably some flavor of Linux for me next time around.

15 August 2016, 7:48 PM

Once Again, We See Cooperation Working Better than Capitalism

A rural cooperative in Mexico has gotten a permanent license, andit has delivered a service an order of magnitude cheaper than the private politically connected crony capitalists running most of Mexico’s cell phone services:

Until this month, Celia Pérez could only afford a brief weekly call to her husband, Rubén Martínez, who left left their remote rural community in Mexico two years ago to find a job in the United States.

Pérez, 25, was pregnant with their third child when Martínez headed north; he made it to New Jersey and regularly wires home money from his construction job, but the long separation and infrequent calls have been tough on everyone.

Now, a legal triumph by indigenous activists has cracked the monopoly enjoyed by Mexico’s powerful telephone magnates – including the world’s richest man, Carlos Slim – and opened the door to new services which will slash the cost of communication.

Indigenous Communities Telecommunications (TIC) last month won a long battle with the government to become the world’s first not-for-profit group to be granted a mobile phone concession.

………

A handful of public phone booths are hosted in the village’s few shops. Until recently, Pérez paid 15 pesos ($0.80) a minute to call her husband. Once a month, she would travel two hours to Tlaxiaco – the nearest town with mobile phone signal and 3G internet – to send him photos of their young children.

………

An experimental concession was awarded in May 2014, allowing affordable, community-owned telephone services to be installed in 16 communities in Oaxaca over the next two years.

In July 2016, TIC – which works alongside Rhizomatica – was granted the first-ever permanent licence.

………

Nuyoó is the first community to benefit from the July victory.

In all, it cost 180,000 pesos ($10,000) for the equipment and installation – a third of what one multinational provider wanted to charge.

Subscription is free, but each registered user must pay 40 pesos a month – 15 goes to TIC to cover overheads and serious repairs – and the rest stays in the community to cover the upfront running costs.

Calls within the network – which includes 17 communities so far – are free. International and national calls are cheap: one peso will buy five minutes to US.

My bad. It’s not an order of magnitude. It’s a factor of 75, so it’s 7½ times more than an order of magnitude.

Carlos Slim is the richest man in the world because he can charge 75 times the actual cost, and he has the concession because he is politically connected.

When people talk about the virtues of capitalism, they ignore this sort of corrupt reality .

11 August 2016, 9:00 PM

The Reality of Private Internet Service Providers

The DC Court of appeals just overturned the FCC ruling invalidating state bans on municipally owned internet service providers:

Federal regulators just suffered a major setback in their efforts to help cities build Internet services that compete with large providers such as Comcast and Time Warner Cable.

In a federal-court decision Wednesday, the Federal Communications Commission was told that it doesn’t have the power to block state laws that critics say hinder the spread of cheap, publicly run broadband service.

Rather ironically, the feel good story of the day is how a cooperative of rural communities in Minnesota jsut put together their own high speed internet services.

These services are both better and cheaper than the commercial alternatives:

Seven years ago, Winthrop, Minnesota, population 1,400, decided it needed an internet upgrade.

Most local residents were served by companies like Mediacom, which Consumer Reports consistently ranked among the country’s worst internet providers. Slow connection speeds made work difficult in local schools and businesses, but farmers outside of town, who increasingly rely on connectivity to do business, experienced the worst of it.

Fourteen miles from Winthrop, in Moltke Township, population 330, one soybean- and wheat-farming family reported its sluggish DSL connection often made it impossible to upload reports to business partners.

Organizers in Winthrop knew they were too small to fund a major internet infrastructure-building project on their own, so they reached out to other neighbors, the town of Gaylord, population 2,305.

And the towns attracted 25 more municipal allies.

Today, in this sparsely populated swath of Minnesota, a grassroots, member-owned cooperative spanning more than 700 square miles and four counties is poised to expand high-speed broadband access — without relying on federal funding. After seven years of development led by local leaders and volunteers, RS Fiber, now in its first phase of construction, is expected to deliver high-speed broadband internet to more than 6,000 rural households by 2021. And unlike companies like Mediacom, the co-op is owned by local customers who have a say in rates and how it’s operated.

………

Once complete, the RS Fiber network is expected to match the 1 gigabit top speeds of cities like Cedar Falls, a milestone that would make southern Minnesota the envy of rural America. According to recent data, only 55 percent of rural residents have access to broadband internet faster than even 25 Mbps (compared to 94 percent of urbanites). Moreover, the investment already holds promise for boosting the local economy. In May 2015, the Minnesota College of Osteopathic Medicine announced plans to set up services in an old school building in Gaylord — a decision officials said was because of RS Fiber’s infrastructure investment.

US internet performance has been lagging since the 1990s because the mantra of unleashing the market has led to monopoly providers and monopoly rents, which in turn leads to higher prices and lack of investment in infrastructure.

From a business perspective, it makes sense for the ISPs to suck wet farts from dead pigeons.

From a societal perspective it is a disaster.

9 August 2016, 6:22 PM

This Says Something Interesting About American Management

Though I haven’t quite figured out what.

The CIA has released a WWII manual on sabotage, and it appears to describe life in modern American businesses frighteningly accurately:

In 1944, the CIA’s precursor, the Office of Strategic Services (OSS), distributed a secret pamphlet that was intended as a guidebook to citizens living in Axis nations who were sympathetic to the Allies.

The “Simple Sabotage Field Manual,” declassified in 2008 and available on the CIA’s website, provided instructions for how everyday people could help the Allies weaken their country by reducing production in factories, offices, and transportation lines.

………

See if any of those listed below — quoted but abridged — remind you of your boss, colleagues, or even yourself.

Organizations and Conferences

Insist on doing everything through “channels.” Never permit short-cuts to be taken in order to expedite decisions.

Make “speeches.” Talk as frequently as possible and at great length. Illustrate your “points” by long anecdotes and accounts of personal experiences.

When possible, refer all matters to committees, for “further study and consideration.” Attempt to make the committee as large as possible — never less than five.

Bring up irrelevant issues as frequently as possible.

Haggle over precise wordings of communications, minutes, resolutions.

Refer back to matters decided upon at the last meeting and attempt to re-open the question of the advisability of that decision.

Advocate “caution.” Be “reasonable” and urge your fellow-conferees to be “reasonable”and avoid haste which might result in embarrassments or difficulties later on.

Managers

In making work assignments, always sign out the unimportant jobs first. See that important jobs are assigned to inefficient workers.

Insist on perfect work in relatively unimportant products; send back for refinishing those which have the least flaw.

To lower morale and with it, production, be pleasant to inefficient workers; give them undeserved promotions.

Hold conferences when there is more critical work to be done.

Multiply the procedures and clearances involved in issuing instructions, pay checks, and so on. See that three people have to approve everything where one would do.

Employees

Work slowly.

Contrive as many interruptions to your work as you can.

Do your work poorly and blame it on bad tools, machinery, or equipment. Complain that these things are preventing you from doing your job right.

Never pass on your skill and experience to a new or less skillful worker.

I’m sure that my dad, who spent much of his professional life as a consultant in management and organization, is familiar with these hallmarks of a dysfunctional organization.

I’m also wondering just how surprised he is that these behaviors are indistinguishable from deliberate sabotage.