Category: wealth

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Our Lady of Perpetual Profit

Corporations that take investors make an impossible promise to increase profits forever. Accordingly, they hire MBAs whose role is to juggle numbers to create ongoing, short-term profit. This juggling is frequently labeled “leadership.”

The juggling methods—abusing data, diminishing the primacy of the customer relationship, repeating what worked last year as if the demand for it will never end, and perpetually cutting costs—invariably remove value from the company. This, of course, results in more staff and cost cutting.

People who understand the customer and the product are ignored in favor of the number jugglers; research is disparaged in favor of a dogmatic relationship to data. 

The people who wreck the company get the big paychecks. Eventually a bigger company buys the first company, further destroying its value. The wreckers exit with more money, 1980s-corporate-raider-style. Skilled workers are laid off, quality plummets, and the cycle begins again. 

This picture of a business world with deeply misguided priorities—exemplified by horror stories from the worlds of tech, gaming, and entertainment—is brought to you by Doc Burford, whose discursive post, “the biggest threat facing your team, whether you’re a game developer or a tech founder or a CEO, is not what you think,” takes a while to get through, but is nonetheless worth reading.

It is not a picture of every company, to be sure. But it applies to many, and accounts for much of the worker unhappiness plus customer frustration that characterize this time and contribute to our political unrest.

I wrote this post so you’d know to check that one. Do it.

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cities family glamorous homeownership wealth

No heat at $5,000/month

Libertarians blame rent stabilization for the problems of tenants in cities like New York, but there are few rent stabilized apartments left in this town or this building. Most people in this building pay $4000 to $5000 a month for a “luxury rental” the size of a working-class Hoosier’s garage. Certainly the fee the landlord collects is luxurious. Nothing else about the place is. Particularly not luxurious is the lack of heat, now in its second day. Snow falls, arctic winds blow, but the $5000/month luxury building is as cold as a dead seal.

The building once employed a certified plumber capable of fixing the constant leaks and other woes that plague this building and are common to poorly maintained high-rise apartments thrown up in the go-go 1970s. But the managing agent was always six months late paying the plumber’s bill, and often argued about the charges months after they were incurred.

“I’ll pay for one guy,” the managing agent would tell the plumber six months after the plumber used three guys to fix an emergency in the building.

In cheating the licensed plumber, the managing agent did not act on the tenants’ behalf or with their knowledge or consent.

Eventually the competent licensed plumber grew tired of losing money every time he saved the building from disaster, and stopped accepting jobs here. The competent licensed plumber’s competent licensed colleagues did likewise. Thus the building placed its tenants at the mercies of the incompetent.

In the past 24 hours, four different low-cost plumbing companies have come to this luxury high-rise to fix its unconscionable heating problem. As a result of their efforts, the doctor’s office in the lobby has been flooded, and a pipe broke on the third floor, filling a tenant’s apartment with steam and pouring boiling water on her floor. Into this boiling water the tenant stepped when the steam she mistook for the smoke of a fire awoke her. I am grateful to hear that she is not seriously injured. Meanwhile, there is still no heat, and our daughter is sick with a hacking cough.

N.B. As a long-time tenant, I do not pay anything like $4,000 or $5,000 a month, but most people in the building do.

[tags]NYC, landlords, tenants, tenant rights, competence[/tags]

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Don’t sleep here

Makeshift bed at construction site.

The area above Madison Square Park in Manhattan is in a condo- building frenzy. Of course all of Manhattan (and Brooklyn and Queens) is in a condo-building frenzy. But above Madison Square Park there is a particularly feverish keenness to the activity, as the glamor of the Flatiron District moves north to a zone that was formerly best known for its gaudy wig and cheap lingerie wholesalers.

The richie rich are buying, and who can blame them? Proximity to Madison Square Park and the chic shops south of 23rd Street makes for an elegance that is almost Parisian—or at least suggests the possibility of such a way of life.

Huge signs affixed to newly rising high-rises and condo converted prewar office buildings trumpet the glory of living here. But there are other signs, as well.

Barely noticed in the builders’ gold rush, the poorest poor, pushed off the benches of Madison Square Park, take shelter in the very construction sites that signify their doom. When this building is finished, the rich will sleep here. ‘Til then, it’s the poor who do so. And what do they dream?

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[tags]americandream, housing, homeless, homelessness, shelter, cities, urbanism, newyork, newyorkcity, NYC, boom, highrises, condos, condosandcoops, nest, citythatneversleeps[/tags]