Boeing has agreed to plead guilty to criminal conspiracy to commit fraud. The company's descent reveals everything wrong with American capitalism today.
Maybe we shouldn't have raised generations of children on the belief that if you earn enough money you'll be happy. All it did was make generations of sociopathic kids willing to do anything to earn money to make themselves happy.
Yep, Boeing used to be an engineering-centered 'local' company that was once the pride of the PNW... but that all changed when they merged with McDonnell-Douglas, a much more military-focused 'good old boy' corporate culture, and then they moved the Boeing hdqtrs from Seattle to Chicago, which removed any 'local' oversight (and local pride).
You are correct, but we do need to have both accountants and engineers. I'm an engineer and I could design most things, but the accountants (sometimes) are needed to keep me real. Mercedes was doing badly in the late 80s (very high quality, high price, too few customers) and went to the accountant-driven way. That's why now they are piss-poor quality, and have been since the mid 90s. (30 years now!). The trick is getting the correct balance. Obviously safety should be of the highest priority, and should never be a part of cost-reduction.
@@peanut0brain I can see why you said that and yes there's plenty places to Hind,But telling on some Large Corporations is a whole different espionage and just by some chance they are still alive avoiding the testimony they will soon will disappear on a trusting nature of those people who have lied to them.
@cellevangiel5973 just like here in canada they keep saying we are a free country but we are not. Not even close. Need a permit to do anything in this commonwealth shithole
I was in management at Boeing during the transition. I left in 2012 when there were still a few of the old guard trying to hold the fort. We had gone from asking "How can we do the best job possible?" to "How can we maximize earned income?".
Exactly. You've, and the whole USA has, been sold the myth that the purpose of a company is to make profit. That's a lie, sold by the robbers. The purpose of the company is to offer a need in society and profits help maintain that task. But the lie makes it okay to keep robbing and enriching the elites. Stop the lie. Limit incomes and profits!
"Wallstreet types who looked down on the engineers" implies that there exists some kind of person that Wallstreet types *don't* look down on. I assure you, there are none.
@@craiganderson7986hahahahahahaha, oh the irony. They think of themselves as masters of the universe when they think money, a human-made concept, is everything. They are such small people.
The moment consumers behave this way is the end for Boeing. If an operator of Boeing aircraft has empty seats measurably on account of the equipment used on routes they will have no business choice other than factoring that into their fleet planning.
I worked as a consultant to Boeing and was stunned and shocked at how they "ran" their business. I was removed from the account when I complained to my boss. Don't get me started.
@@rustomkanishka I will just share that being a consultant you have no power and that in Washington state it is a right to work state so you can be removed or fired from any job "at will". Say what you want about California but workers have some protections.
@@davidpowell3469 i understand. Being fired out of the blue must have been a shock to say the least. No one needs that kind of misery in their life. I thought you meant something about the work culture, or if you noticed anything that made these recent catastrophes inevitable. If you did, please do share, but if you wish to stay silent that is completely understandable.
Stock buybacks NEVER should have been decriminalized. The ONLY way trickle down theory would have worked is if they had remained criminal like they were prior to Reagan.
When you are a company heavily reliant on engineering expertise, it is generally not a good idea to have its senior management comprised mainly of accountants and MBA's.
My father was a lifelong Boeing employee and rose to become a senior tech fellow before retiring. He said Boeing didn’t buy McDonald Douglas, but McDonald Douglas bought Boeing. Everything changed with the buyout. He said it just wasn’t the same company anymore.
@@dakotarobert7975thanks for bringing that up. They took on the MD philosophy and killed the company. But then, this is American business in this century. Think short term for profits while competing against companies and countries that think decades down the road. Great way to kill innovation.
I remember when the CEO of Boeing (Condit I believe) bragged in the company newsletter that he and Stonecipher sat down sketched the merger out on a NAPKIN in the course of an hour and shook hands on it... like that was a good thing!
I had a friend who was a famously gifted mechanical engineer at Boeing. His colleagues knew him as the guy who could see problems brewing long before they became safety issues. He would be heartbroken to see what has become of the firm he loved.
MD ruined Hughes Helicopters also. It’s now just finally coming back, in which they’re focusing more on the civilian market, instead of grovelling and begging for military contracts, especially when half their gunships are sitting in Afghanistan.
Just about EVERY US based company in the past 40 years has been doing this. Washington basically let it happen too. This is why living wages have disappeared in that time. Just so the wrong people can make way too much money.🤨
Retired aerospace engineer here. I started working in 1977 as a stress engineer, then a design engineer, flight test engineer and manager. Don’t underestimate the deleterious effect that a merger can have on a company’s core values of engineering excellence. Soon the untalented bean-counters insist that you check the company’s stock price daily. As if that somehow leads to better product. When you start treating creative talented people as warm bodies, replaceable in a heartbeat, you’ve only succeeded in diminishing the value of craftsmanship. As Jacob Bronowski stated in “The Ascent of Man”: “The personal commitment of a man to his skill (craft), the intellectual commitment and the emotional commitment working together as one, has made the ascent on man”. What is currently lacking in the executive suite at Boeing, as well as at many other once fine companies, is the commitment to craft. Keep up your good works with these postings. I respect and enjoy your thoughts and commentary always.
Well said. I too, worked at Boeing before and after the merger as an industrial statistician. The 777 was a great plane built before the merger and its roll out nearly flawless. The 787 came after the merger and the bean counters saved a few bucks by off loading engineering only to ultimately spend 25 $billion more due to three year delays brought on by their greed and incompetence.
I'm an ex lowly Navy aviation ordnanceman. I'm concerned substandard product will get out to the fleet. FYI...I now work for BAE systems. We laugh at Boeing. And it's sad.
Oh, guess who is some of the shareholders? All of Congress! Anti-trust has been ignored over the past 15-25 years, and insider trader is legal for Congress, so connect the dots. Boeing has no competition to speak of, so they do what they want, where will we go for planes (and military equipment by the way)?
most shareholders will have made money and sold their stock long ago, some are left holding the bag by joining at the wrong time sure but others still can now short the stock instead.
It was probably on one of my first flights Vancouver to Frankfurt around 1979. I ask my seat neighbor why he is traveling from Seattle to Vancouver to fly to FRA. His response: "I am working for Boeing, but I do not fly with Boeing out of Seattle" He has seen already at this time safety issues with Boeing.
I'm a professional communicator who has worked with the C-Suite of top corporations, including Boeing. I can tell you that this all is not news to me, especially the executives' behaviors. I quit there because I went from being a public relations person to a cover-up artist for senior management, the 787 program and defense programs. And as someone from the inside of major corporations, I can tell you that nothing has changed in their selfish job-preservation behavior. If you want more details, Mr. Reich, please contact me.
They're chasing for profits for the next quarter, not profits for the next 5-10 years. I mean, if you cut out QA and R&D, it will generate a profit boost for a while, but that's like cutting organs out of your torso to lose weight.
That's because McDonald Douglass had already lost it's way. As just Douglass, they brought us the DC3, 4, 6, 7, and 8, superb planes. Sad what they became.
I worked at Boeing from 2012 to 2016. I complained on a company message board about the leadership team choosing to spend capital on stock buybacks instead of on training and development for employees and on capital equipment. Even Lockheed and Raytheon paid employees better and offered more professional development. Six months later I left the company because I was being emotionally abused by management. I was able to take disability for mental health until I found a new job. They still send me contractor positions for entry level employment because they can't retain people for that position. Eff Boeing.
@@piotrd.4850 To be fair, I worked on the military side of the business in F-18, F-15, and C-17 supply chain. For this reason, my benchmarks are in the MIC. But these specific problems, spending money on boosting CEO pay, affected everyone.
My career, before retiring, was as a programmer for a company providing computer services for airlines. I saw what Prof. Reich is talking about even then.
For the life of me, I’ll never understand how people argue against worker protections, decent wages, the importance of skilled workers, knee caping agencies whose main goal is to make sure safety and maintenance and rules are enforced, etc… But when deregulation gets out of control & someone gets a limb cut off because a machine wasn’t properly maintained? Then they wonder about why it wasn’t done & blame the federal agency for not enforcing what they can no longer enforce. Totally frustrating.
The masses have been indoctrinated by the republikkkans into believing that money is God, corporations are holy, the New York Stock Exchange is a church, a desire for a comfortable life is "Communism", unions are a sin, and working people are skum who deserve NOTHING.
When you see a situation you do not understand, look for the senseless cruelty.. (In a more rational era people said “look for the financial interest.” That era is over.)
two types of voter enable this situation: 1: the uneducated. If someone doesn't understand something, they can very easily be convinced to be against it. This is why Conservatives fight so hard to tear down public education. 2: the cruel. Many people would rather tear someone else down than lift themselves up. Conservative policies are designed to appeal to this type of person.
@@ShuRugal I'm educated, and I'm against public education as it exists in the US. In fact, much of the US education system is broken. Astronomical fees for attending University, only to get brainwashed and indoctrinated with Far Left ideology. The fact you think wanting to fix the broken system is a problem says a lot about you.
I actually did a case study of Boeing back in 2012 in business school... concluded that they had identified their problem of focusing entirely on stock price at the expense of their product and production process, and that they were on their way back up. Boy was I wrong!
No, your assessment was correct. However, what you neglected in your summary was that while executives recognised the problems, they were not prepared to take unpalatable steps to rectify issues. So the die was set, causing a once noble legacy to become soiled by corrupt, incompetent, greedy finance moguls. Further study might be warranted in whether MD deliberately ran down Boeing in order to improve its own stocks?
it's all part of their plan to restore feudalism and monarchy and literally go back to the middle ages; it isn't just about undoing America but the whole project of the European enlightenment
It's interesting that citizens united essentially tells us that corporations are 'people' but if a person killed 300+ people (and lets be honest, killed a whistle blower) they would be thrown in jail.
Remember during the 90's and 00's how corporate mergers were always touted as beneficial because of "synergies". What a huge bag of Kentucky #7 that was. Corporate mergers were/are all about nothing but eliminating competition
I built the first 600 or so GE90s for the Boeing 777, for almost 20 years. I remember when Boeing bought McDonnell Douglas, and the chaos that ensued. McD/D was in trouble due to its penny-pinching and it carried over to Boeing. Glad I'm out of the business, now. We, too were a non-union shop, but in our plant, everyone was an FAA certificated technician, so we didn't suffer the quality issues Boeing was and is dealing with. These days, I only fly planes I maintain, and no, none of those are Boeings. Terrible downfall for a once-great company.
@@dougmackenzie5976 I am relieved that my late Boeing engineer friend…the guy the other engineers called a genius…cannot watch this tragedy of mismanagement.
I remember SPEA (Seattle Professional Engineering Association) from my days at the DC in Seattle. At the time, I was not a member, but maybe should have been.
Never thought I would see the day.I flew a range of great Military fighters, General Aviation twins and then 20 odd years on the great Boeing 747SP/200/300/400/400ER.The 747 was a fabulous machine . Boeing has ruined its once great reputation.
It happens in every industry. I worked in telecommunications for 40 years. When I started,the union was strong, the company was the talk of the world for their work at Expo '86, and employees were loyal and took pride in their work. Nowadays, they have a CEO who only cares about the share price. He attacked the union, hired fly by night contractors, and sent as many jobs as possible, overseas. At the same time they rolled out some corporate "Team" BS, trying to force employees to sell their souls for the right to work there. I was lucky, I was able to retire. No wonder governments are in shambles when you vote in business people to run the country.
I worked at Boeing before and after the McDonald Douglas merger as an industrial statistician. I can attest everything Mr. Reich is saying is true. If you want a company to take the gas pipe, have Wall Street Assholes (WSA's for short) tun it. They have no passion or pride in the products and services they provide, but merely see these companies as a way to enrich themselves. Profits are a happy consequence of providing world class products and services in an efficient manner that people flock to buy. But if you put the cart before the horse and obsess about money and not your customers' and employees' needs, your greed will inevitably cause you to cut corners which inevitably leads to inferior products people ultimately then choose not to buy. Boeing is a case study in Wall Street Assholes' greed destroying everything.
I only tolerated 2% raises while the leadership team was spending all the profits on stock buybacks for a few years. After that I had enough and went to a company with better priorities: its employees.
And ban them and all management from owning shares in the company (or any derivative thereof, such as options). That way they can't benefit from changes in the share price. When the company goes IPO, you get a choice to make: Do you keep owning or running the company? If the former, you step down from any management position. If the latter, your shares get sold on launch day at market value.
fundamental issue is how they are paid. CEOs very rarely have large cash salaries but rather receive massive stock payments to intentionally bypass taxation as stocks are only taxed on sale. they've intentionally normalized this to skirt taxation as much as possible, and typically try to sell some (usually unrelated) stocks at a loss to pay as little capital gains taxes as possible when they need cash.
I was born in 1969 and remember having actual repairmen that would fix televisions, refrigerators and other major appliances. They were made to last for decades, not being replaced every 5 years
My new TV failed in 5 years. I refused to toss it out so I sent the main board to a repair shop I found through eBay and now it works fine again. I hate our throw-away culture.
@@parkerbrown-nesbit1747 Heh. Dad bought Mom a portable dishwasher for Christmas. Quite apart from the classic Christmas faux pas, it did get converted to a built-in in the new house. Been working since 1975. Freezer from the early 70s, Fridge from 1980. I win!
I work in Aerospace a fastners company. We make parts for Boeing, Airbus, Lockhead and others.The management people they hire are a joke. Some employees are lazy as hell and the quality is crap. We constantly do rework to fix other departments parts, managers are useless.
Boeing is a horrible place to work. When Covid-19 hit, they told those of us that are contractors that we couldn't work "remote" but they insisted that their regular full-time employees do so. When I asked my LIFE was worth less than a full-time employee's, they told me "Boeing Policy" is that contract employees can't work remote. In response I asked, "When has Boeing ever had to deal with a global pandemic?". Less than week later the let me go. My Grandpa was 94 at the time and I lived with him. I was not willing to risk his life!
When *profit* is your highest priority, *everything* else is secondary. Capitalism places profit making over all other human needs and endeavors. *By Design* Capitalism *must* be muzzled and leashed. The Market is a piss poor regulator
Capitalism is an excellent tool... And a terrible master... It must be regulated and harnessed... THAT happens in the voting booth... We've had over 40 years of Greed is good, worship the rich, trickle down nonsense to prove how destructive it is... Time to change course.
Unfortunately, it's the marketing class in American Schools that is teaching them the wrong priorities. They teach marketing skills instead. How to fool people into paying more for less instead of buying what they need.
Imagine what a football game would be like with no referees or with referees bought and paid for by the home team. That is capitalism in 2024 America...
You are absolutely right, here's some more detail. A good friend of mine when growing up was the son of the president of the commercial airplane division of Boeing through about the mid 1990's. When they bought McDonnel Douglas they didn't just eliminate the domestic competition, they brought many of the McDonnel top brass over to Boeing. McDonnel had been run with a different mind set than Boeing. McDonnel was run with a focus on accounting and stock price while Boeing was run with a laser focus on engineering. My friends dad had an accounting background and didn't always see eye to eye with the engineers but he respected them, that all changed with arrival of the McDonnel brass. The most egregious thing the new execs did was to move the corporate HQ away from where the planes were actually made. HQ was moved from Seattle to Chicago in 2001 in order to be closer to the center of the country and the customers. They may have been closer to the customers but they lost all daily contact with the engineers and the people building the planes. Once that was done it became much easier to think the planes could be made anywhere, by anyone. Another major effect splitting off the Corporate HQ had was a reduction in creative thinking. From 1960 to 1995 Boeing designed and built the 707, 727, 737, 747, 757, 767 and 777. Since 1995 Boeing has released just one new plane, the 787, which has been beset with problems since day one. I order to save money and keep the stock price high many of their other planes have simply been updated like the 737max, we know how that turned out.
When I was in school. I learned that stock buybacks were the worst use of cash/profits a management team could possibly do. It showed a complete lack of creative thought on the entirety of the executive board. Dividends aren’t much better. Neither creates real added value to the company.
Finance people, who only creates spreadsheets, are in charge of creating hightech airplanes... Good thing they got rid of those pesky engineers in management!
In the old days, when actual engineers founded an ran tech companies (Jack Northrop - Northrop, Leroy Grumman, Bill Boeing, Simon Ramo & Dean Wooldridge - RW, STL, TRW, Andrew Viterbi - Qualcomm, Henry Sameuli - Broadcom), things were done the right way (in fact, the old TRW motto WAS "The Right Way!). But sadly, when the MBAs infect the boards of these companies (eg, Wesley Bush, who destroyed everything Kent Kresa built at NGC) things always go South in the long term, after the short term profits are extracted.
Professor Reich -- Your diligent work in producing these informative videos reaches many folks who would not otherwise be routinely informed on the important issues of the day. Your fact-based and reasonably objective TH-cam presentations hit home for many. With this video clip, you have clearly highlighted the consequences of free market fanaticism and the financialization of America --- the legacy of Milton Friedman and his cult of followers. Your sincere efforts to inform the general public are to be applauded and will hopefully encourage people to push back and regularly go to the polls. Perhaps you might also consider adding automatic universal voter registration and mail-in and/or online voting to your list of concerns. This could offer Democrats their most powerful tool. Please keep up your fine work to better inform this nation. Warm regards, Dr. A.
Recently, a friend informed me that she was terrified of flying! So, I reassured her, by insisting that the doors aren't falling off of ALL the airplanes......just SOME of them!
@@TraderRobin I flew a great deal in my college and early career years. I remember a night flight across country when I was a college student., had about $2 cash on me, and a cousin was being dispatched to pick me up. I was hungry, but dinner was hours earlier, so I knew there was no solution. I went back to reading. Stewardess interrupted me with a tray, covered with a large napkin. Would I like TWO meat and potatoes dinners?.. I was the youngest passenger, and one of the few awake this late…and she explained that the crew tried not to discard food… I ate both, slept the rest of the way to Boston…and have not flown in years…
This is EXACTLY what's happening at Intel. Intel was the runaway # 1 chip maker in the world for decades - when Engineers were made CEO's... Then they put an "accountant" at the helm....during the MOST critical time of the company's life. TODAY, Intel doesn't have ONE. SINGLE. PRODUCT. That's leading the industry NOT. ONE. Not mobile, not desktop, not ultra mobile, NOT servers, not GPU, and certainly not A.I. NOT. ONE.
100 %. Intel will just get eaten by NVIDIA, AMD, and any company producing RISC-V cores. ARM couldn't really make inroads into the server or desktop markets. RISC-V might eventually develop the momentum to break into those markets. When that happens, Intel is toast. That will happen when Microsoft starts using custom RISC-V CPUs for its servers, so you now have Windows kernel for them.
Perfect example of "American Capitalism." Capitalism isn't the big issue here. It's how we've deregulated it so badly that it's become Kapitalizm Muhrika-Style.
@@TB-zf7we and capitalism only reinforces this behavior. Liberalism tries to combat it with a political economy made of up of rational thought and discussion. Political Scientists have revealed we actually live in a economic elite dominated democracy. The woes of capitalism infect our political processes. We cannot be a limited socialist or a reluctant capitalist
Yeah this is capitalism done right. Which is why it's actually terrible. Can't trust corporations to make the moral decision when there's no regulations.
Capitalism is getting the most profit for the least resources. Anything added to regulate capitalism is anti-capitalist. This is just unrestricted capitalism
Robert this is my problem with the health insurance industry. I told my doctor, I’m tired of having a person with a business degree making medical decisions for me. It’s my doctors expertise I want. My doctors knows what I my condition calls for, not a business person.
Food, housing, ... (I found out the latter when Warren Buffet started buying up residential property and the former when Bill Gates started buying up farmland for factory farms).
Don’t be silly. Capitalism means that companies are owned by private investors. Not much more. It does not preclude governmental oversight. Here in Europe we have far more strictly regulated markets… but they are still capitalist in nature.
Sounds like you are throwing capitalism out with the bath water. Properly regulated, capitalism works because it encourages innovation, hard work, and competition.
Innovation is key… and really if they kick out that ceo and replace him with a cyborg they’ll save millions. Put those millions into teams of extra quality inspectors and Boeing is back in business!
Well, we have these things in Europe AND we have capitalism. We just don't have the neocapitalism that US is doing at the moment. I also find it really funny, when people praise "capitalism" for being superior and "having won the cold war". But they forget that there was a peak tax rate of 90%!!!! in the US. THAT is the capitalism that won against communism. Not the feudal capitalism that is being pushed at the moment.
What a child. Mao lived like Royalty during a Chinese famine that claimed 30 million lives (1959). Pooh Bear Xi, Putin, Kim Jong, all live like billionaires. Whatever you call your Magic Fairy Dust system, some people will game that system. Capitalism is just proven better at feeding, and providing opportunity for people.
EVERYTHING has its limits. Communism WILL NEVER SUCCEED because SOMEONE has to pay the bills, but when capitalists forgo the methods which made them initially successful for the pursuit ONLY OF MONETARY WEALTH TO THE DETRIMENT OF THEIR ORIGINAL ROUTE TO SUCCESS THEY WILL FAIL.
I worked for Boeing in the 80's and 90's... all of us down in the trenches warned Execs that they were headed in the wrong direction after the MCD merger when they put Stonecipher from MCD in charge and declared that they weren't going to be an engineering company anymore but rather an "integrator" that would have parts manufactured in cheaper labor markets around the world, ship them back, and just put the parts together here. And then they went on a tear to raise the stock price as if that was the most important goal...
@@coonhound_pharoah We joked about it too... but it really wasn't so funny. There were a bunch of projects that Boeing had going on that MCD had parallel projects in the works. When the merger happened, obviously one of those projects would be redundant and had to go. Stonecipher seemed to almost always side with the MCD folks. I was on one of those projects that got canceled - even though IMHO we had a superior approach and implementation.
It's at the root of all of American commerce today. Pure capitalism will fail; regulated capitalism can lift all boats. Conservatives, Republicans, narcissists, power-mongers, and pure evil want pure capitalism.
@@phil20_20 Not all evil. Money can be a beautiful thing, not to mention how efficient it makes commerce. The true root of all evil is in human DNA because evolution has selected for this capability over the eons. It's unfortunate, but evolution does select for selfishness, violence, domineering, narcissism, greed, and deceit.
Yep... replace Engineers with Accountants (or who are the new executives?)... and look what happens... If you don't deliver a safe aircraft... people won't fly... and your business collapses...
I would just like to remind people that McDonald Douglas went bankrupt in part, because the cargo doors and later an engine where ripping off the DC-10's . Boeing today really mirrors MD of the 70's/80's in the worst possible ways.
Remember the DC-10 door problem very well. It was undoubtedly a key reason that plane was never a competitor. How ironic the same problems have ocurred at Boeing.
This unfortunately isn’t a new problem. Many greedy psychopaths skirted the rules and ruined life’s for centuries.What’s especially sad is how greed continues to go unchecked and unpunished. How haven’t we learned from unregulated monopolies like Rockefeller’s oil company? Why aren’t companies punished after their negligence results in loss of life? We must learn from history if we want to avoid future mistakes. It’s almost as of our policy makers and politicians have a willful ignorance to the history of man’s worst qualities. Wars, corruption, environmental disasters… when will these horrors stop?
The Constitution guarantees the citizens the right to "address" the government, i.e. to lobby. That is not the same as saying that money is speech and cannot be limited.
@@1ring2rule3pigsLobbying is super un-democratic. Unfortunately, money from lobbying is the bulk of income politicians get so it will never be illegal... but it should...
It's gotten too big, too many mergers, too close to monochrome. Positive vibes from New Hampshire, remember to be kind to each other and yourself during these trying times.
Boeing would just tell the media that the astronauts are on "long term, long distance assignment" and then they would sue NASA for not returning their spacecraft.
In my experience, every employer cares far more about their shareholders than they do about employees. When my father died, my boss at the time said, "how long is this bullshit gonna take?" I couldn't participate in the planning of my dad's funeral. Later when I tried to take maternity leave, the same boss refused to let me take it because I did not ask for permission to get pregnant. He has 6 kids. My state did say that I was owed for maternity leave, but I was told that the next time I had better get permission in writing before getting pregnant again, because I should consider the shareholders before making a life change.
@@flyrobin2544 That used to be one of the reasons that they would give for not hiring women - they would get pregnant, then later come back, costing the company more money that a male employee.
@@tammyjantzen9004 They put you on salary to make you work more hours for free. I always turned down management positions because of that. Assistant Manager usually make $4 and hour. You just have to say no, to the job promotion.
Any time a company declares a bonus to the "top people" and within days declares bankruptcy "seeks court protection" someone should go to jail after forfeiture of the bonus and just maybe the previous year's pay.
My wife and I recently booked a vacation and purposely went out of our way to avoid flying on a Boeing plane. Thank God Expedia lets you see the type of aircraft on the flight you pick.
Here’s a few more for the list: - Media markets (dominated by Sinclair) - Bookstores (B&N seems to be the last big chain with brick & mortar stores) I’m sure there’s plenty more!
@@michmash7888 Thanks! Yeah News Corp is close if not there yet (Fox, WS Journal, Aussie mkts). I will add it, and defense contractors, and railroads to my list. Others?
@@ejt3708 Off the top of my head: Coca Cola and PepsiCo (who also owns Frito-Lay and Quaker Oats, so they monopolize the chip and oatmeal markets). Anheiser-Busch. Proctor & Gamble. And the list of brands that belong to Kraft-Heinz is staggering! Let’s also not forget that most of the baby formula in the US is made by four suppliers. I bet there’s tons more examples!
60+ hours/week with mandatory overtime is standard in 737 production in Renton facility. You literally have to spend your sick leave/vacation to have your weekend off.
My university-educated health care professional parents LAUGHED at the business majors in college in the 50's. They were the flunkies who couldn't hack the hard courses. STEM was NOT an option for them. This was when professional, well-educated trained folks ran important industries. MBA's in shiny suits now lecture doctors on how to "deliver health care efficiently" in YOUR physician's exam rooms. Well we've turned this on its head. We now have the money-grubbers running critical industry like medicine, airlines, pharmaceuticals, transportation, utilities and so much else. PG&E incinerated 85 people in Paradise, CA, thanks to "running a utility like a business!" Profits over people WILL KILL YOU. Insane.
Still crazy that the shareholders, who pushed this new policy in 1997, got away with it and fired their stooge CEO with a buttload of cash. Shareholders should be accountable.
I definitely do not agree with some of the solutions you suggest Mister Reich but your analysis of why Boeing has gone down the tubes in perfectly on point. Well done!
Firstly, Boeing needs a CEO who is an engineer, not a bean counter. Second, these parts, as you say, falling off Boeng aircraft, are not all because of Boeing errors or quality control, most of them are due to operator maintenance issues.
The CEO of Boeing is an accountant. The CEO of AirBus is an aeronautical engineer. Their priorities are clear.
Never put an accountant in the corner office, because they'll focus on nailing down the floor a bit tighter.
Well, how do you put "good rep" into a bonce sheet?
good one !!! sounds familiar though ...from about 7 or 8 months ago ,,by none other than yours truly 😀
Hedge fund mentality and financier control takes all the quality out of products and services created under capitalism or whatever passes for it.
Hiring an accountant to lead a company was the downfall of GM in the 1980s (Roger Smith).
Humanity is under attack from Sociopathic Narcissists, in business and in government.
#metwo
It's called "crapitallism."
Also known as government of the moron, by the moron, and for the dollar.
Maybe we shouldn't have raised generations of children on the belief that if you earn enough money you'll be happy.
All it did was make generations of sociopathic kids willing to do anything to earn money to make themselves happy.
The scariest of the dark triad, if you ask me. All the social charm and completely amoral.
Capitalism is a bully!
An engineer will build up to a specification. An accountant will build down to a price.
Any engineer with experience will design with a safety factor usually 1.25 to 1.5 times the specifications.
Good way to get right to the point 👍.
Yep, Boeing used to be an engineering-centered 'local' company that was once the pride of the PNW... but that all changed when they merged with McDonnell-Douglas, a much more military-focused 'good old boy' corporate culture, and then they moved the Boeing hdqtrs from Seattle to Chicago, which removed any 'local' oversight (and local pride).
You are correct, but we do need to have both accountants and engineers. I'm an engineer and I could design most things, but the accountants (sometimes) are needed to keep me real.
Mercedes was doing badly in the late 80s (very high quality, high price, too few customers) and went to the accountant-driven way. That's why now they are piss-poor quality, and have been since the mid 90s. (30 years now!).
The trick is getting the correct balance.
Obviously safety should be of the highest priority, and should never be a part of cost-reduction.
Dennis Muilenburg who was an aerospace engineer thought the 737 max was a great idea though
They keep killing the engineers whistleblowers.
Like how epstein "hanged himself"
@@peanut0brain I can see why you said that and yes there's plenty places to Hind,But telling on some Large Corporations is a whole different espionage and just by some chance they are still alive avoiding the testimony they will soon will disappear on a trusting nature of those people who have lied to them.
And the Americans have the temerity to make fun of Russia as a country where people die mysteriously.
Airbus killed them. It was obvious, follow the money
Exactly 💯 you're so right man
The amount of corruption that exists within critical points of our countrys infrastructure is flat out disgusting.
They come close to Russia, but keep shouting : we are the greatest, the best.
@cellevangiel5973 just like here in canada they keep saying we are a free country but we are not. Not even close. Need a permit to do anything in this commonwealth shithole
It’s the very thing that keeps the Chinese and Russians from ever be anything more than a paper threat . It’s where we’re heading to
I was in management at Boeing during the transition. I left in 2012 when there were still a few of the old guard trying to hold the fort. We had gone from asking "How can we do the best job possible?" to "How can we maximize earned income?".
Exactly. You've, and the whole USA has, been sold the myth that the purpose of a company is to make profit. That's a lie, sold by the robbers. The purpose of the company is to offer a need in society and profits help maintain that task. But the lie makes it okay to keep robbing and enriching the elites. Stop the lie. Limit incomes and profits!
"Wallstreet types who looked down on the engineers" implies that there exists some kind of person that Wallstreet types *don't* look down on. I assure you, there are none.
The feeling is mutual.
They will happily tell you that they are”The Masters of the Universe!” That is if they think it’s worth their time to even acknowledge your existence.
@@craiganderson7986 They won't even allow you to exist. They won't even allow the planet to exist. Eat the rich. Fuck the 1%
😆
@@craiganderson7986hahahahahahaha, oh the irony. They think of themselves as masters of the universe when they think money, a human-made concept, is everything. They are such small people.
If it's Boeing, I'M NOT GOING!!!!!
@MrGriff305 Do you pay attention to anything?
@MrGriff305The fact Boeing took a calculated risk with a malfunctioning mcas system and gambled with peoples lives🤷♂️
The moment consumers behave this way is the end for Boeing. If an operator of Boeing aircraft has empty seats measurably on account of the equipment used on routes they will have no business choice other than factoring that into their fleet planning.
@MrGriff305Ah, the good ole Whatabout-ism - favorite movie of manipulators and propagandists. Do you have anything to contribute on AIRLINE safety?
@MrGriff305 how does it feel to kissing up to a corporation? You enjoy sucking them dry?
I worked as a consultant to Boeing and was stunned and shocked at how they "ran" their business. I was removed from the account when I complained to my boss. Don't get me started.
No no no, please do tell. I would like to get you started on this lol
Please do share.
@@rustomkanishka I will just share that being a consultant you have no power and that in Washington state it is a right to work state so you can be removed or fired from any job "at will". Say what you want about California but workers have some protections.
@@davidpowell3469 i understand. Being fired out of the blue must have been a shock to say the least. No one needs that kind of misery in their life.
I thought you meant something about the work culture, or if you noticed anything that made these recent catastrophes inevitable.
If you did, please do share, but if you wish to stay silent that is completely understandable.
There’s no truth tolerated in the corporate government world. Unbelievable.
Stock buybacks NEVER should have been decriminalized. The ONLY way trickle down theory would have worked is if they had remained criminal like they were prior to Reagan.
This is a wonderful comment.
When you are a company heavily reliant on engineering expertise, it is generally not a good idea to have its senior management comprised mainly of accountants and MBA's.
Imagine how bad Boeing would be if Airbus didn't compete with them.
Nor should you elect a businessman as president
@@karlabritfeld7104 Especially one who insists on making all his business decisions himself and has 6 bankruptcies to prove it.
An MBA isn’t even a valuable skill. It’s just memorizing shortcuts and ways to elude standards.
Top comment. Very astute!
Yes, Robert, you are correct. It's rotten greed.
Free market capitalism is destroying the US economy and the moral integrity of the American people.🗽
My father was a lifelong Boeing employee and rose to become a senior tech fellow before retiring. He said Boeing didn’t buy McDonald Douglas, but McDonald Douglas bought Boeing. Everything changed with the buyout. He said it just wasn’t the same company anymore.
@@dakotarobert7975 thank you! I remember that now. It’s been so long I forgot many of the sleazy details.
@@dakotarobert7975thanks for bringing that up. They took on the MD philosophy and killed the company. But then, this is American business in this century. Think short term for profits while competing against companies and countries that think decades down the road. Great way to kill innovation.
I remember when the CEO of Boeing (Condit I believe) bragged in the company newsletter that he and Stonecipher sat down sketched the merger out on a NAPKIN in the course of an hour and shook hands on it... like that was a good thing!
I had a friend who was a famously gifted mechanical engineer at Boeing. His colleagues knew him as the guy who could see problems brewing long before they became safety issues. He would be heartbroken to see what has become of the firm he loved.
@@liannebedard5521 As am I. At this point I'm just hoping my pension holds up...
McDonnell ruined Douglas Aircraft. Now McDonnell-Douglas has ruined Boeing.
Boeing ruined Boeing
😂😂😂😂😂
MD ruined Hughes Helicopters also. It’s now just finally coming back, in which they’re focusing more on the civilian market, instead of grovelling and begging for military contracts, especially when half their gunships are sitting in Afghanistan.
They don't care anymore about craftsmanship now it's about money for the CEO and executives . In other words corporate greed.
Beware the military industrial complex
Just about EVERY US based company in the past 40 years has been doing this. Washington basically let it happen too. This is why living wages have disappeared in that time. Just so the wrong people can make way too much money.🤨
Retired aerospace engineer here. I started working in 1977 as a stress engineer, then a design engineer, flight test engineer and manager. Don’t underestimate the deleterious effect that a merger can have on a company’s core values of engineering excellence. Soon the untalented bean-counters insist that you check the company’s stock price daily. As if that somehow leads to better product. When you start treating creative talented people as warm bodies, replaceable in a heartbeat, you’ve only succeeded in diminishing the value of craftsmanship. As Jacob Bronowski stated in “The Ascent of Man”: “The personal commitment of a man to his skill (craft), the intellectual commitment and the emotional commitment working together as one, has made the ascent on man”. What is currently lacking in the executive suite at Boeing, as well as at many other once fine companies, is the commitment to craft.
Keep up your good works with these postings. I respect and enjoy your thoughts and commentary always.
Well said. I too, worked at Boeing before and after the merger as an industrial statistician. The 777 was a great plane built before the merger and its roll out nearly flawless. The 787 came after the merger and the bean counters saved a few bucks by off loading engineering only to ultimately spend 25 $billion more due to three year delays brought on by their greed and incompetence.
@@ianbell8701 My father used to tell me, "Anything worth doing, is worth doing well ".
@@EricForney-uz4izMy father said the same to me. He was in Avionics (aviation electronics).
I'm an ex lowly Navy aviation ordnanceman. I'm concerned substandard product will get out to the fleet. FYI...I now work for BAE systems. We laugh at Boeing. And it's sad.
@@kevinking5406 Valid concerns.
The irony is that it will cost the shareholders of Boeing.... a lot.
I will cry no tears for them
Oh, guess who is some of the shareholders? All of Congress! Anti-trust has been ignored over the past 15-25 years, and insider trader is legal for Congress, so connect the dots. Boeing has no competition to speak of, so they do what they want, where will we go for planes (and military equipment by the way)?
Boohoo
most shareholders will have made money and sold their stock long ago, some are left holding the bag by joining at the wrong time sure but others still can now short the stock instead.
I bought a share because I thought it couldn't go any lower 💀
It was probably on one of my first flights Vancouver to Frankfurt around 1979. I ask my seat neighbor why he is traveling from Seattle to Vancouver to fly to FRA. His response: "I am working for Boeing, but I do not fly with Boeing out of Seattle" He has seen already at this time safety issues with Boeing.
I'm a professional communicator who has worked with the C-Suite of top corporations, including Boeing. I can tell you that this all is not news to me, especially the executives' behaviors. I quit there because I went from being a public relations person to a cover-up artist for senior management, the 787 program and defense programs. And as someone from the inside of major corporations, I can tell you that nothing has changed in their selfish job-preservation behavior. If you want more details, Mr. Reich, please contact me.
Thank you Professor Reich
Yes!!
A company being "penny wise" and pound foolish" hits the top of the list.
They're chasing for profits for the next quarter, not profits for the next 5-10 years. I mean, if you cut out QA and R&D, it will generate a profit boost for a while, but that's like cutting organs out of your torso to lose weight.
I worked at Boeing when McDonald Douglas bought Boeing and used Boeing money to pay for it. The difference was immediate. It was never the same since.
That's because McDonald Douglass had already lost it's way. As just Douglass, they brought us the DC3, 4, 6, 7, and 8, superb planes. Sad what they became.
Fun Fact: Philip M. Condit, the CEO of Boeing who approved the Boeing/Douglas merger, married his 1st cousin. 👍
@@williamyoung9401 Disgusting. Just like what happens in trailer parks.
I worked at Boeing from 2012 to 2016. I complained on a company message board about the leadership team choosing to spend capital on stock buybacks instead of on training and development for employees and on capital equipment. Even Lockheed and Raytheon paid employees better and offered more professional development.
Six months later I left the company because I was being emotionally abused by management. I was able to take disability for mental health until I found a new job.
They still send me contractor positions for entry level employment because they can't retain people for that position.
Eff Boeing.
When M.I.C is given as example of 'you can do better' that speaks volumes to how deep Boeing has fallen xD
@@piotrd.4850 To be fair, I worked on the military side of the business in F-18, F-15, and C-17 supply chain. For this reason, my benchmarks are in the MIC. But these specific problems, spending money on boosting CEO pay, affected everyone.
Between Boeing, Microsoft, and Amazon, it isn't hard to guess why Seattle is so screwed up.
My career, before retiring, was as a programmer for a company providing computer services for airlines. I saw what Prof. Reich is talking about even then.
For the life of me, I’ll never understand how people argue against worker protections, decent wages, the importance of skilled workers, knee caping agencies whose main goal is to make sure safety and maintenance and rules are enforced, etc… But when deregulation gets out of control & someone gets a limb cut off because a machine wasn’t properly maintained? Then they wonder about why it wasn’t done & blame the federal agency for not enforcing what they can no longer enforce. Totally frustrating.
The masses have been indoctrinated by the republikkkans into believing that money is God, corporations are holy, the New York Stock Exchange is a church, a desire for a comfortable life is "Communism", unions are a sin, and working people are skum who deserve NOTHING.
Executives are far less intelligent, and far more lazy minded than people realize
When you see a situation you do not understand, look for the senseless cruelty..
(In a more rational era people said “look for the financial interest.” That era is over.)
two types of voter enable this situation:
1: the uneducated. If someone doesn't understand something, they can very easily be convinced to be against it. This is why Conservatives fight so hard to tear down public education.
2: the cruel. Many people would rather tear someone else down than lift themselves up. Conservative policies are designed to appeal to this type of person.
@@ShuRugal I'm educated, and I'm against public education as it exists in the US. In fact, much of the US education system is broken. Astronomical fees for attending University, only to get brainwashed and indoctrinated with Far Left ideology. The fact you think wanting to fix the broken system is a problem says a lot about you.
I actually did a case study of Boeing back in 2012 in business school... concluded that they had identified their problem of focusing entirely on stock price at the expense of their product and production process, and that they were on their way back up. Boy was I wrong!
No, your assessment was correct. However, what you neglected in your summary was that while executives recognised the problems, they were not prepared to take unpalatable steps to rectify issues. So the die was set, causing a once noble legacy to become soiled by corrupt, incompetent, greedy finance moguls.
Further study might be warranted in whether MD deliberately ran down Boeing in order to improve its own stocks?
My company is sending me around the country for meetings. I told my boss there's no way I'm flying in a Boeing. Airbus only
I have been an FAA aircraft Airworthiness/Certification Engineer for over 20 years.... and to this video, I say bravo & Amen!
Since Citizens United, how many corporations’ CEOs have gone to jail for the criminal actions of said corporations? Zero.
Are you surprised? I am not. Goldman Sachs moved to Jersey City. What does that tell you?
it's all part of their plan to restore feudalism and monarchy and literally go back to the middle ages; it isn't just about undoing America but the whole project of the European enlightenment
It's interesting that citizens united essentially tells us that corporations are 'people' but if a person killed 300+ people (and lets be honest, killed a whistle blower) they would be thrown in jail.
Remember during the 90's and 00's how corporate mergers were always touted as beneficial because of "synergies". What a huge bag of Kentucky #7 that was. Corporate mergers were/are all about nothing but eliminating competition
That was a piece of crock.
These synergies mostly failed.
I built the first 600 or so GE90s for the Boeing 777, for almost 20 years. I remember when Boeing bought McDonnell Douglas, and the chaos that ensued. McD/D was in trouble due to its penny-pinching and it carried over to Boeing. Glad I'm out of the business, now. We, too were a non-union shop, but in our plant, everyone was an FAA certificated technician, so we didn't suffer the quality issues Boeing was and is dealing with. These days, I only fly planes I maintain, and no, none of those are Boeings. Terrible downfall for a once-great company.
I've heard from Douglas people that their company went south when the McDonnell merger happened so perhaps that was the root cause?
@@solracer66, that would make sense.
@@dougmackenzie5976 I am relieved that my late Boeing engineer friend…the guy the other engineers called a genius…cannot watch this tragedy of mismanagement.
I remember SPEA (Seattle Professional Engineering Association) from my days at the DC in Seattle. At the time, I was not a member, but maybe should have been.
Never thought I would see the day.I flew a range of great Military fighters, General Aviation twins and then 20 odd years on the great Boeing 747SP/200/300/400/400ER.The 747 was a fabulous machine . Boeing has ruined its once great reputation.
I spent 20+ years as a Test Engineer at a company that supplied space-qualified components whose failure would be catastrophic. This is inexcusable.
It happens in every industry. I worked in telecommunications for 40 years. When I started,the union was strong, the company was the talk of the world for their work at Expo '86, and employees were loyal and took pride in their work.
Nowadays, they have a CEO who only cares about the share price. He attacked the union, hired fly by night contractors, and sent as many jobs as possible, overseas. At the same time they rolled out some corporate "Team" BS, trying to force employees to sell their souls for the right to work there.
I was lucky, I was able to retire.
No wonder governments are in shambles when you vote in business people to run the country.
I worked at Boeing before and after the McDonald Douglas merger as an industrial statistician. I can attest everything Mr. Reich is saying is true. If you want a company to take the gas pipe, have Wall Street Assholes (WSA's for short) tun it. They have no passion or pride in the products and services they provide, but merely see these companies as a way to enrich themselves. Profits are a happy consequence of providing world class products and services in an efficient manner that people flock to buy. But if you put the cart before the horse and obsess about money and not your customers' and employees' needs, your greed will inevitably cause you to cut corners which inevitably leads to inferior products people ultimately then choose not to buy. Boeing is a case study in Wall Street Assholes' greed destroying everything.
I only tolerated 2% raises while the leadership team was spending all the profits on stock buybacks for a few years. After that I had enough and went to a company with better priorities: its employees.
Boeing used to build planes. Now it builds equity...
@@elegharinicely said . Equity , sales and stock price
And tax the ridiculously overpaid CEOs at about 99%
And ban them and all management from owning shares in the company (or any derivative thereof, such as options). That way they can't benefit from changes in the share price. When the company goes IPO, you get a choice to make: Do you keep owning or running the company? If the former, you step down from any management position. If the latter, your shares get sold on launch day at market value.
Yes the only part of the fifties I agree with is the effective highest taxed rate was above 80 percent.
fundamental issue is how they are paid.
CEOs very rarely have large cash salaries but rather receive massive stock payments to intentionally bypass taxation as stocks are only taxed on sale.
they've intentionally normalized this to skirt taxation as much as possible, and typically try to sell some (usually unrelated) stocks at a loss to pay as little capital gains taxes as possible when they need cash.
What an absurd notion
@Pan_Galactic_Gargle_Blaster And this is why we ban them from owning stocks in their own company.
I was born in 1969 and remember having actual repairmen that would fix televisions, refrigerators and other major appliances. They were made to last for decades, not being replaced every 5 years
My new TV failed in 5 years. I refused to toss it out so I sent the main board to a repair shop I found through eBay and now it works fine again. I hate our throw-away culture.
I was born in 1960 and remember when "built-in obsolescence" came into play. This, to *guarantee* future sales/business.🤬🖕🏽
I have a dryer that I bought in 2000, and a refrigerator that I bought in 2003. Both are still going strong.
@@parkerbrown-nesbit1747 Heh. Dad bought Mom a portable dishwasher for Christmas. Quite apart from the classic Christmas faux pas, it did get converted to a built-in in the new house. Been working since 1975. Freezer from the early 70s, Fridge from 1980. I win!
i repaired tube tv’s and radios as my first real job.
I work in Aerospace a fastners company. We make parts for Boeing, Airbus, Lockhead and others.The management people they hire are a joke. Some employees are lazy as hell and the quality is crap. We constantly do rework to fix other departments parts, managers are useless.
Memba when two Boeing whistle blower die mysteriously right after exposing the company....and for some reason their deaths were never investigated
Boeing is a horrible place to work. When Covid-19 hit, they told those of us that are contractors that we couldn't work "remote" but they insisted that their regular full-time employees do so. When I asked my LIFE was worth less than a full-time employee's, they told me "Boeing Policy" is that contract employees can't work remote.
In response I asked, "When has Boeing ever had to deal with a global pandemic?". Less than week later the let me go.
My Grandpa was 94 at the time and I lived with him. I was not willing to risk his life!
But contractors get paid more than regular employees.
Wow, disgusting.
right call!!!!! i did the same. best advice join a union!!!!!!!!
@@karlabritfeld7104 no we don't more. When a contractor gets hired as a permanent full time, they just pay the same rate.
@@johnbecker5213 electrical engineers don't have a union. I wish we did.
When *profit* is your highest priority, *everything* else is secondary. Capitalism places profit making over all other human needs and endeavors. *By Design* Capitalism *must* be muzzled and leashed. The Market is a piss poor regulator
You're a fool
Capitalism is an excellent tool... And a terrible master... It must be regulated and harnessed... THAT happens in the voting booth...
We've had over 40 years of Greed is good, worship the rich, trickle down nonsense to prove how destructive it is... Time to change course.
Unfortunately, it's the marketing class in American Schools that is teaching them the wrong priorities. They teach marketing skills instead. How to fool people into paying more for less instead of buying what they need.
Succinctly put.
Imagine what a football game would be like with no referees or with referees bought and paid for by the home team. That is capitalism in 2024 America...
Greed Over Safety😡🤬😡
You are absolutely right, here's some more detail. A good friend of mine when growing up was the son of the president of the commercial airplane division of Boeing through about the mid 1990's. When they bought McDonnel Douglas they didn't just eliminate the domestic competition, they brought many of the McDonnel top brass over to Boeing. McDonnel had been run with a different mind set than Boeing. McDonnel was run with a focus on accounting and stock price while Boeing was run with a laser focus on engineering. My friends dad had an accounting background and didn't always see eye to eye with the engineers but he respected them, that all changed with arrival of the McDonnel brass. The most egregious thing the new execs did was to move the corporate HQ away from where the planes were actually made. HQ was moved from Seattle to Chicago in 2001 in order to be closer to the center of the country and the customers. They may have been closer to the customers but they lost all daily contact with the engineers and the people building the planes. Once that was done it became much easier to think the planes could be made anywhere, by anyone.
Another major effect splitting off the Corporate HQ had was a reduction in creative thinking. From 1960 to 1995 Boeing designed and built the 707, 727, 737, 747, 757, 767 and 777. Since 1995 Boeing has released just one new plane, the 787, which has been beset with problems since day one. I order to save money and keep the stock price high many of their other planes have simply been updated like the 737max, we know how that turned out.
When I was in school. I learned that stock buybacks were the worst use of cash/profits a management team could possibly do. It showed a complete lack of creative thought on the entirety of the executive board. Dividends aren’t much better. Neither creates real added value to the company.
Finance people, who only creates spreadsheets, are in charge of creating hightech airplanes... Good thing they got rid of those pesky engineers in management!
In the old days, when actual engineers founded an ran tech companies (Jack Northrop - Northrop, Leroy Grumman, Bill Boeing, Simon Ramo & Dean Wooldridge - RW, STL, TRW, Andrew Viterbi - Qualcomm, Henry Sameuli - Broadcom), things were done the right way (in fact, the old TRW motto WAS "The Right Way!). But sadly, when the MBAs infect the boards of these companies (eg, Wesley Bush, who destroyed everything Kent Kresa built at NGC) things always go South in the long term, after the short term profits are extracted.
Some finance bros imagine that they are also engineers.
Boeing just took a Plea Deal to avoid further criminal charges.. How Convenient
And cronyism, when you put ex-Boeing execs in charge of the FAA like a certain someone did in 2016 this is what happens.
Only stocks should be allowed to crash, not planes.
Professor Reich -- Your diligent work in producing these informative videos reaches many folks who would not otherwise be routinely informed on the important issues of the day. Your fact-based and reasonably objective TH-cam presentations hit home for many. With this video clip, you have clearly highlighted the consequences of free market fanaticism and the financialization of America --- the legacy of Milton Friedman and his cult of followers.
Your sincere efforts to inform the general public are to be applauded and will hopefully encourage people to push back and regularly go to the polls. Perhaps you might also consider adding automatic universal voter registration and mail-in and/or online voting to your list of concerns. This could offer Democrats their most powerful tool. Please keep up your fine work to better inform this nation. Warm regards, Dr. A.
Recently, a friend informed me that she was terrified of flying!
So, I reassured her, by insisting that the doors aren't falling off of ALL the airplanes......just SOME of them!
@@TraderRobin I flew a great deal in my college and early career years. I remember a night flight across country when I was a college student., had about $2 cash on me, and a cousin was being dispatched to pick me up. I was hungry, but dinner was hours earlier, so I knew there was no solution. I went back to reading.
Stewardess interrupted me with a tray, covered with a large napkin. Would I like TWO meat and potatoes dinners?..
I was the youngest passenger, and one of the few awake this late…and she explained that the crew tried not to discard food…
I ate both, slept the rest of the way to Boston…and have not flown in years…
And that MCAS mostly, probably works now and probably won't push the yoke forward and plunge the plane into the ocean.
This is EXACTLY what's happening at Intel.
Intel was the runaway # 1 chip maker in the world for decades - when Engineers were made CEO's...
Then they put an "accountant" at the helm....during the MOST critical time of the company's life.
TODAY, Intel doesn't have ONE. SINGLE. PRODUCT. That's leading the industry NOT. ONE. Not mobile, not desktop, not ultra mobile, NOT servers, not GPU, and certainly not A.I. NOT. ONE.
100 %. Intel will just get eaten by NVIDIA, AMD, and any company producing RISC-V cores. ARM couldn't really make inroads into the server or desktop markets. RISC-V might eventually develop the momentum to break into those markets. When that happens, Intel is toast. That will happen when Microsoft starts using custom RISC-V CPUs for its servers, so you now have Windows kernel for them.
Perfect example of "American Capitalism." Capitalism isn't the big issue here. It's how we've deregulated it so badly that it's become Kapitalizm Muhrika-Style.
The true crux of the problem. No social conscience for corporations only greed.
@@TB-zf7we and capitalism only reinforces this behavior. Liberalism tries to combat it with a political economy made of up of rational thought and discussion. Political Scientists have revealed we actually live in a economic elite dominated democracy. The woes of capitalism infect our political processes. We cannot be a limited socialist or a reluctant capitalist
Yeah this is capitalism done right.
Which is why it's actually terrible.
Can't trust corporations to make the moral decision when there's no regulations.
Thank you, Ronald Reagan.
(And thanks to his many enablers, from cynically aggressive neoconservatives to glibly deferential neoliberals!)
Capitalism is getting the most profit for the least resources. Anything added to regulate capitalism is anti-capitalist. This is just unrestricted capitalism
Robert this is my problem with the health insurance industry. I told my doctor, I’m tired of having a person with a business degree making medical decisions for me. It’s my doctors expertise I want. My doctors knows what I my condition calls for, not a business person.
If there is profit in the medical industry. Then your doctor is in buisness.
Prescription addiction padamic anyone?
Man your video was really concise, I’ll watch a bunch of your stuff now. Hello from Western Australia!
There are some things that aren’t compatible with capitalism . Safety, unions , medicine, justice …. The list goes on
Food, housing, ... (I found out the latter when Warren Buffet started buying up residential property and the former when Bill Gates started buying up farmland for factory farms).
Don’t be silly. Capitalism means that companies are owned by private investors. Not much more. It does not preclude governmental oversight. Here in Europe we have far more strictly regulated markets… but they are still capitalist in nature.
Sounds like you are throwing capitalism out with the bath water. Properly regulated, capitalism works because it encourages innovation, hard work, and competition.
Innovation is key… and really if they kick out that ceo and replace him with a cyborg they’ll save millions. Put those millions into teams of extra quality inspectors and Boeing is back in business!
Well, we have these things in Europe AND we have capitalism. We just don't have the neocapitalism that US is doing at the moment.
I also find it really funny, when people praise "capitalism" for being superior and "having won the cold war".
But they forget that there was a peak tax rate of 90%!!!! in the US. THAT is the capitalism that won against communism. Not the feudal capitalism that is being pushed at the moment.
The capitalists broke capitalism with their greed. Soon their cash cow will run dry!!
capitalism just reinforced this behavior in already greedy people. How else would this play out?
What a child. Mao lived like Royalty during a Chinese famine that claimed 30 million lives (1959). Pooh Bear Xi, Putin, Kim Jong, all live like billionaires. Whatever you call your Magic Fairy Dust system, some people will game that system. Capitalism is just proven better at feeding, and providing opportunity for people.
IOW, the American People!
EVERYTHING has its limits.
Communism WILL NEVER SUCCEED because SOMEONE has to pay the bills, but when capitalists forgo the methods which made them initially successful for the pursuit ONLY OF MONETARY WEALTH TO THE DETRIMENT OF THEIR ORIGINAL ROUTE TO SUCCESS THEY WILL FAIL.
Capitalism is an excellent tool, used with care, and as a part of lifestyle. It has been severely damaged by greed. It's fixable.
Just wait till Clarence Thomas and other MAGA judges start deciding which regulations should govern Boeing.
*start deciding that industry doesn't need any regulations at all
The constitution can be invented by judges and presidents at will. It's A okay.
I'm waiting for them to fly the uncertain skies.
The market will take care of itself because the customers the Boeing kills will reduce their market share...
🇨🇦👍💯
CEO culture is getting out of hand
"Take off your engineer hat and put on your management hat" and BOOM went the Space Shuttle Challenger.
I worked for Boeing in the 80's and 90's... all of us down in the trenches warned Execs that they were headed in the wrong direction after the MCD merger when they put Stonecipher from MCD in charge and declared that they weren't going to be an engineering company anymore but rather an "integrator" that would have parts manufactured in cheaper labor markets around the world, ship them back, and just put the parts together here. And then they went on a tear to raise the stock price as if that was the most important goal...
I worked for Boeing in the 2010's in the military side, aka old MCD. We joked about how we bought Boeing with Boeing's money in the 1990's.
Well, the stock price indeed *was* the most important goal. For those guys and their bonuses.
@@coonhound_pharoah We joked about it too... but it really wasn't so funny. There were a bunch of projects that Boeing had going on that MCD had parallel projects in the works. When the merger happened, obviously one of those projects would be redundant and had to go. Stonecipher seemed to almost always side with the MCD folks. I was on one of those projects that got canceled - even though IMHO we had a superior approach and implementation.
Boeing started downhill when they moved headquarters from Seattle to Chicago. The company repudiated it’s heritage.
And then they moved headquarters to Arlington VA, adjacent to DC to be closer to their lobbyists. ☹
Evil greed is at the root of all Boeing's problems!
It's at the root of all of American commerce today. Pure capitalism will fail; regulated capitalism can lift all boats. Conservatives, Republicans, narcissists, power-mongers, and pure evil want pure capitalism.
Money is the root of all evil!
@@phil20_20 Not all evil. Money can be a beautiful thing, not to mention how efficient it makes commerce. The true root of all evil is in human DNA because evolution has selected for this capability over the eons. It's unfortunate, but evolution does select for selfishness, violence, domineering, narcissism, greed, and deceit.
Yall need to understand that people making millions don’t care if we live or die
Yep... replace Engineers with Accountants (or who are the new executives?)... and look what happens...
If you don't deliver a safe aircraft... people won't fly... and your business collapses...
I would just like to remind people that McDonald Douglas went bankrupt in part, because the cargo doors and later an engine where ripping off the DC-10's . Boeing today really mirrors MD of the 70's/80's in the worst possible ways.
Remember the DC-10 door problem very well. It was undoubtedly a key reason that plane was never a competitor. How ironic the same problems have ocurred at Boeing.
We have a worldwide narcissist and sociopath psychopath problem.
And it's getting worse.
But it does seem oh, so much worse in the US.
This unfortunately isn’t a new problem. Many greedy psychopaths skirted the rules and ruined life’s for centuries.What’s especially sad is how greed continues to go unchecked and unpunished. How haven’t we learned from unregulated monopolies like Rockefeller’s oil company? Why aren’t companies punished after their negligence results in loss of life? We must learn from history if we want to avoid future mistakes. It’s almost as of our policy makers and politicians have a willful ignorance to the history of man’s worst qualities. Wars, corruption, environmental disasters… when will these horrors stop?
Big money out of politics? With THIS Supreme Court? That's genuinely funny!
Dr. Reich, our nation needs you more than ever!
Like usual, a great contribution. Thank you so much.❤
And yet, no one will go to jail…
Of course not. They are wealthy yt republikans.
Can we all agree that LOBBYING should be illegal?!
That'll keep politicians honest if they have nothing to gain.
Bribery is already illegal, it still happens, good luck trying to get legislation written to prevent it from those receiving the bribes.
The Constitution guarantees the citizens the right to "address" the government, i.e. to lobby. That is not the same as saying that money is speech and cannot be limited.
@@1ring2rule3pigsLobbying is super un-democratic. Unfortunately, money from lobbying is the bulk of income politicians get so it will never be illegal... but it should...
Awww, so naive it’s almost cute…almost
@@avsystem3142 A corporation is not a citizen.
This is almost all corporate America
It's gotten too big, too many mergers, too close to monochrome. Positive vibes from New Hampshire, remember to be kind to each other and yourself during these trying times.
So deregulation doesn't lead to companies regulating themselves
Yes, what a surprise.
When you replace CEO Engineers with bean counters you forget safety for profit.
And due to Boeing two astronauts are stranded at the space station. When will you bring them home Boeing.
Boeing might not. They could end up coming back on a Crew Dragon... or a Soyuz.
They are "collecting data." There is no emergency situation. Be patient. No one is stranded.
Boeing would just tell the media that the astronauts are on "long term, long distance assignment" and then they would sue NASA for not returning their spacecraft.
@@cynthiaswingle5134 when you have poor quality control with your planes, what else would you expect from Boeing?
When NASA charters a Space Dragon. They're going to deorbit the thing.
Yes, Secretary Reich! Corporations and the 1% spent the entirety of my life working to undo all regulation and all regulatory agencies!
Wall Streeters still blame engineers for the problems though. It's always someone else's fault.
Blaming someone else is what narcissists do best.
@@GenerationX1984,
Truer words were never spoken.
I worked for Boeing in the late 60s, and none of this BS was going on.
From Lowell in El Cerrito, CA:
The landing gear hydraulics failed, and everybody died
and insurance paid out millions in the claims
which company directors found some cheaper to provide
than to schedule regular maintenance on their planes.
It was a policy decision by the CPAs and the Board
upon whose karma falls the fate of those who died
it’s just a calculated cost of doing business
and it’s a fairly common practice so it slides
Small fire at the refinery a couple months ago
price of gas went through the roof and never came down
Exxron said “production stopped”, to explain away the rise
but their own records show they never really shut it down.
So of the fabricated story of the shortness of supply
It’s clearly our own fault we bought the lie
It’s an opportunist ripoff of consumers
and it’s a fairly common practice so it flies
An old guy at the pharmacy stands mumbling to himself
about obscene percentage markup on his pills
thinks he’s fortunate the tax payers are pickin’ up the tab
While Medicare Part D gets double billed
There’s no price cap on the product, no transparency of deals
between Congress and the makers of the drugs
because the lobbies and the lawmakers are comfortably in bed
in the tradition and the style of common thugs
The government is counting on the fact that we’re asleep
and we’re mostly all too happy to comply
while the fat cats line their pockets and the homeless walk the streets
and the rest of us are barely getting by
While the powers meant to serve us, at least ostensibly,
Create distracting talking points for our contention
the truth of how we’re getting hosed is not that hard to see
so if you’re not pissed off you’re prob’ly not payin’ attention.
If you’re not pissed off you’re just not payin’ attention.
© 2012 Lowell-James Hicks
Go Airbus.
In my experience, every employer cares far more about their shareholders than they do about employees. When my father died, my boss at the time said, "how long is this bullshit gonna take?"
I couldn't participate in the planning of my dad's funeral.
Later when I tried to take maternity leave, the same boss refused to let me take it because I did not ask for permission to get pregnant. He has 6 kids.
My state did say that I was owed for maternity leave, but I was told that the next time I had better get permission in writing before getting pregnant again, because I should consider the shareholders before making a life change.
You should have brought him up on charges with you union. What he did is illegal.
They will stop hiring women soon, the accountants will see us as financial risks. Roevember 💙
@@flyrobin2544 That used to be one of the reasons that they would give for not hiring women - they would get pregnant, then later come back, costing the company more money that a male employee.
Yet they expected me to work more hours (I was salaried) because I was single with no kids. As if being single meant I didn't deserve to have a life.
@@tammyjantzen9004 They put you on salary to make you work more hours for free. I always turned down management positions because of that. Assistant Manager usually make $4 and hour. You just have to say no, to the job promotion.
Any company who is under investigation, should not be able to allocate bonuses to management until it is resolved
Any time a company declares a bonus to the "top people" and within days declares bankruptcy "seeks court protection" someone should go to jail after forfeiture of the bonus and just maybe the previous year's pay.
We already live in an Oligarchy. This is soviet level incompetence on Boing's behalf.
My wife and I recently booked a vacation and purposely went out of our way to avoid flying on a Boeing plane. Thank God Expedia lets you see the type of aircraft on the flight you pick.
Kayak has the same invaluable feature.
Now, imagine the plane is swapped the day of.
Can we get a list of sectors with effective monopolies in the US?
- commericial airplanes
- oil
- grocery retailers
- meat
- housing (some markets)
- hospitals
- concert tickets
- full-sized ($) pickups
- news media (Sinclair etc) (thx michmash!)
- bookstores
- entertainment media
- digital info (Google)
- railroads
- defense contractors
- propane (only 2 companies in my area)
- electricity/natural gas (barely regulated)
- cable TV
- internet
- cell providers
- online retail (Amazon)
- appliances
- fertilizer
- baby formula
- drinks/snacks (AB InBev, CocaCola, PepsiCo)
- food (P&G, Quaker Oats...)
- credit cards (Visa mostly)
- ?
Here’s a few more for the list:
- Media markets (dominated by Sinclair)
- Bookstores (B&N seems to be the last big chain with brick & mortar stores)
I’m sure there’s plenty more!
@@michmash7888 Thanks! Yeah News Corp is close if not there yet (Fox, WS Journal, Aussie mkts). I will add it, and defense contractors, and railroads to my list.
Others?
@@ejt3708 Off the top of my head: Coca Cola and PepsiCo (who also owns Frito-Lay and Quaker Oats, so they monopolize the chip and oatmeal markets). Anheiser-Busch. Proctor & Gamble. And the list of brands that belong to Kraft-Heinz is staggering! Let’s also not forget that most of the baby formula in the US is made by four suppliers. I bet there’s tons more examples!
BUST THE TRUSTS like Teddy Roosevelt used to say. We should not be lloking down our noses at Russians with their Oligarch problem.
Don't forget the mysterious whistle blower "suicides"
60+ hours/week with mandatory overtime is standard in 737 production in Renton facility. You literally have to spend your sick leave/vacation to have your weekend off.
My university-educated health care professional parents LAUGHED at the business majors in college in the 50's. They were the flunkies who couldn't hack the hard courses. STEM was NOT an option for them. This was when professional, well-educated trained folks ran important industries.
MBA's in shiny suits now lecture doctors on how to "deliver health care efficiently" in YOUR physician's exam rooms.
Well we've turned this on its head. We now have the money-grubbers running critical industry like medicine, airlines, pharmaceuticals, transportation, utilities and so much else. PG&E incinerated 85 people in Paradise, CA, thanks to "running a utility like a business!" Profits over people WILL KILL YOU.
Insane.
Still crazy that the shareholders, who pushed this new policy in 1997, got away with it and fired their stooge CEO with a buttload of cash. Shareholders should be accountable.
Thank you
Protégé of Jack Welch took over the company and caused this calamity
Just look at how many train derailments we have. They seem to happen all the time but no one talks about them. We need MORE regulations, not fewer.
You’re a national treasure, thanks for fighting the good fight.
Nothing can stop Wall Street now. It sucks.
And now the people they put in space are stuck there due to a malfunction with their rocket 🚀 Go figure. I'll never fly in any of their planes!!!!!
“Fuck engineering capability and know-how, safety, and innovation. We’re here to make profits, profits, profits!” -Boeing
Sad, but true.
I’m afraid it is too late to chart a new course. This plane, our country, is going down. 😢
It is never too late to change course. At least you MUST try on the assumption, that it MIGHT be possible and MAYBE you succeed against the odds.
Seeing how the kids today are "wired", growing up with tablets stuck in their faces from months old, I think you are right.
I definitely do not agree with some of the solutions you suggest Mister Reich but your analysis of why Boeing has gone down the tubes in perfectly on point. Well done!
It's not only Boeng; It's the whole U🐍A going down the pipes!
Firstly, Boeing needs a CEO who is an engineer, not a bean counter. Second, these parts, as you say, falling off Boeng aircraft, are not all because of Boeing errors or quality control, most of them are due to operator maintenance issues.
When the government doesn't hold them accountable, greed prevails!