I’m not sure I’m going to be able to talk about this on the podcast, but it’s definitely something I’ve noticed over the years.
I can’t say that things were always better, because of course they’re not. But it is interesting to have that memory that maybe 20 years ago things WERE definitely different. And there is a very specific reason for the decline.
I wouldn’t blame it entirely on capitalism, and to be honest, I’m not sure it’s just that. But it is a pattern of downward spiral trying to make or justify money that is causing lots of problems in outside areas. I’m not advocating communism either, but I’m sure we can come up with a better solution as a species to make our lives better, and not just for the money.
The recent issue of Sonic in Ohio has shed some light on a bigger issue for me. The company was reducing worker pay to 4 bucks an hour, with the minimum wage to be made up by “tips”. Who tips at sonic? That’s like one of the few places you’re not supposed to tip.
But the sinister part that was unnoticed was that it’s really being done because it was bought by a new investment company. Investment companies are interesting because they suck the profit out of everything they try to touch. It’s not longer about the craft, the people, the process. It’s all about money. And in business, of course things are about money, but we’re at the point where we’re ruining everything to get a dollar.
I remarked to my wife a while back, that it seemed like middle class restaurants like Applebee’s were sucking a lot more than they used to. We used to go to those restaurants a little bit more often, and the food just seemed better 10-15 years ago. It wasn’t top quality, but it was acceptable. Today, it’s microwaved crap. It’s about as good as a low budget cafeteria.
I just chalked it up to changing food sources. I never realized that those same investment firms were expanding into the restaurant business, and squeezing down the profits and margins to make workers hate their jobs.
Take Tim Hortons, for instance. The pride of Canada, in some sense, for the coffee, baked goods and other delicious treats. They used to be in the top 10 recognizable and supported brands. They have since dropped out of the top 50 in one year. It COULD be the fact that they stopped support workers and cutting benefits because they were bought by the same firm that owns Burger King and is a Brazilian based investment firm. Or it could simply be that they’re not cool anymore. Either way, following the money leads to a slippery path.
Sears is another example of this. The CEO is a famous corporate raider, known for pocketing and siphoning off assets and then moving on to new bounties to plunder. Except he made a mistake with Sears and when the recession hit in 2008, the land he was trying to exploit became worthless. So he dipped into his own pockets to try and float the company enough to survive and made mistakes trying to run the company into profitability. I’m pretty sure that experiment is failing, but small pockets of Sears are still kicking, I guess. It’s a shame because at one point in time, they could have been the Amazon. But now it’s Amazon. I’m curious to see when they begin the asset phase…