Corporations

The Defenseless American Corporation

You are not at the mercy of corporations. Corporations are at the mercy of you

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According to their critics on the left and the populist right, American corporations are soulless psychopaths that grind up the environment, defenseless consumers, their own employees and even flop-eared puppies in their relentless pursuit of ever-greater profits for the greedy 1 percent.

There is some truth to this—as anyone who has been following, say, the Wells Fargo scandal can tell you. Corporations can lie and steal and cheat with the best of them.

But this is a different claim than the broader indictment—which holds that corporations are our dark overlords, driving the public to do their evil bidding despite the best interests and plain desires of The People. Anyone laboring under that misapprehension should take a look at the recent Wall Street Journal article "PepsiCo Wants to Sell Health Food, Consumers Want Chips."

For several years now PepsiCo has been trying to push "good for you" foods on the American public. Its CEO, Indra Nooyi, considers doing so (The Journal's words) an "ethical imperative." So the company has rolled out healthy product after healthy product: Init, a fruit and nut bar. Sproutzels, pretzels made from sprouted grains. Veggie chips. Probiotic drinks. And so on.

But the public just isn't that into them.

And there's no great mystery as to why: They don't taste as good as traditional potato chips, cheese puffs, and soda. "Taste is the biggest factor in a snack purchase, according to 66 percent of Baby Boomers and 53 percent of millennials in a March survey by consultancy Aleix Partners."

Pepsi has failed to meet budget targets for its healthy-snack foods, the story adds. "But buoyed by less-healthy snack brands such as Doritos chips and Cheetos puffs, PepsiCo's sales and volumes are on the rise and its profit margins have expanded in 15 quarters straight."

The healthy snacks are not a total flop: Some—Naked juice, for instance—have succeeded. But they succeed on a comparatively small scale. Healthy snacks make up less than one-tenth of all snack sales in the country. "The world's biggest food companies have been trying to ramp up healthier offerings for years, but consumers haven't give up their love for all things sweet and salty," The Journal says.

Imagine that.

If corporations truly were the malignant oppressors they are made out to be in nine out of 10 Hollywood movies, then your break-room vending machine would be filled with tofu sticks and carrot juice. But it isn't, for the simple reason that the brief against corporate America has it largely backward: You are not at the mercy of corporations. Corporations are at the mercy of you.

The New York Times Magazine conceded as much—albeit very unintentionally—three years ago in a lengths to which the food industry goes to try to please the public: "In the process of product optimization, food engineers alter a litany of variables with the sole intent of finding the most perfect version (or versions) of a product. Ordinary consumers are paid to spend hours sitting in rooms where they touch, feel, sip, smell, swirl and taste whatever product is in question. Their opinions are dumped into a computer, and the data are sifted and sorted through a statistical method called conjoint analysis, which determines what features will be most attractive to consumers."

If we're all at the mercy of Acme Conglomerate, then why does it go to such lengths? Why doesn't Acme just stock the shelves with dried beets at $12.99 a pound and tell the consumer to like it or lump it? The answer is obvious: It can't, or it would go out of business by nightfall. Acme is stuck trying to make you happy.

Granted, corporations do have one tool—one very powerful tool—at their disposal, to make you buy things you don't want to buy: government. Ford Motor Co. can't put a gun to your head and make you drive a Ford instead of a Nissan. (Not without painful consequences, anyway—see Wells Fargo.) But the government can impose tariffs that raise the price of a Nissan so high you will go with a Ford instead. (A certain U.S. politician who recently won election to high office thinks this is a swell way to conduct American commerce.) Government can force you to buy health insurance, as Obamacare does through the individual mandate. And the government can outright ban the purchase of certain consumer goods, much as the FDA banned the diet supplement ephedra in 2004.

Of course, corporations can't meet every single consumer preference. For example: I have been nursing a resentment against Nabisco and its parent company, Mondelez International, over the disappearance from area grocery shelves of Mint Oreo Fudge Cremes, which are to die for. Why doesn't Nabisco cater to my whim?

Because my resentment is misplaced; my real beef is with my fellow consumers in central Virginia, who apparently have not been buying Mint Oreo Fudge Cremes in sufficient quantity to make it worth Nabisco's while. This could easily be fixed with suitably punitive legislation. How about it, Congress?

This article originally appeared in the Richmond Times Dispatch.

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  1. It’s perfectly simple: the government and its agents can legally rob me of my life, liberty and property for any reason. They have a monopoly on the legitimate use of violence.

    A corporation has none of those powers unless it gets state sanction.

    1. ^^^This, this, THIS! I am so tired of idiots who think that corps are evil but government is benevolent. When was the last time Wal-Mart or McDonald’s forcibly prevented you from going to one of their many competitors?

      1. It’s because the government is all about the needy, the children, the elderly and the environment don’t you know.

        How much is that defense budget again we expend to snuff out anyone around a drone attack without prejudice – gender, race, physical conditions – and spread hazardous materials far and wide?

        1. Not enough, or we wouldn’t have any socialists.

  2. Init, a fruit and nut bar. Sproutzels, pretzels made from sprouted grains. Veggie chips. Probiotic drinks

    Is there any good evidence these are actually healthy?

    1. The feel healthy!

      i.e. They taste bad.

      1. Pretty much this. There’s been so much new info on how we’ve been deceived (often by government) about nutrition, that “healthy food” is a hard target to zero in on.

        The lipid hypothesis has been debunked, salt as the prime cause of hypertension is only true for certain susceptible people, the unhealthy-ness of carbohydrates (despite making up the majority of the USDA pyramid above) have really changed thinking on nutrition.

      2. If they have enough fat and salt, veggie chips can be pretty good.

        1. Chili cheese corn chips. Corn is a vegetable, innit?

          1. No, it’s a grain.

            1. My people call it maize!

              /Cultural Appropreeashun

            2. vegetable
              noun
              1.
              any plant whose fruit, seeds, roots, tubers, bulbs, stems, leaves, or flower parts are used as food, as the tomato, bean, beet, potato, onion, asparagus, spinach, or cauliflower.
              2.
              the edible part of such a plant, as the tuber of the potato.
              3.
              any member of the vegetable kingdom; plant.
              4.
              Informal. a person who is so severely impaired mentally or physically as to be largely incapable of conscious responses or activity.
              5.
              a dull, spiritless, and uninteresting person.

              We eat the fruit of the maize plant, therefore its a vegetable.

              People who say otherwise fall into the 5th definition.

              1. Also, fuck those people who constantly have to tell you that a tomato is a fruit.

                1. Ok. But only if they are a) hot or b) pay me lots of money. (I’m preparing for my career in politics)

                2. Knowledge is knowing a tomato is a fruit. Wisdom is knowing not to put it in a fruit salad.

                  1. And Real Wisdom is knowing to order fries instead.

        2. We sometimes buy these because they taste good, but I’m under no illusion that they have any particular healthy benefits.

          1. I have to go to the specialty isle to find chips that aren’t fried in seed oil. There’s some good ones in avocado oil and coconut oil. Still pretty starchy but a nice treat.

            1. I go to the specialty fjord instead.

        3. Fritos are pretty much veggie chips? they’re just corn, salt, and oil.

        4. Yes. I love reading the nutritional analysis on the labels of so called “healthier” foods.

          My wife is obsessed with fat content. She wants a good steak. But, she wants no fat.

          No matter how many times I try to explain marbling, tenderness & USDA choice vs prime grade, she finds the look of fat offensive. However, she doesn’t complain about the taste or mouth feel…………unless it doesn’t have any fat.

      3. People typically buy things because they a) taste good, b) are cheap, or c) are good for you. These taste like crap and are expensive, yet people still buy them. So they must be healthy.

    2. When did PepsiCo move its headquarters to Portland?

    3. I think there is some evidence that some probiotics are good. Sprouted grains probably just have less starch and more sugar than unsprouted grains. But they are pretty good in certain things.

    4. I think a lot of that “healthy snack food” is worse than actual junk food, because it is essentially junk food, but with a veneer of healthfulness that leads people to eat it without a sense of consequence. Like low-calorie ice cream.

      Fruits and nuts are good for you, unambiguously. Douse them with chocolate and a sugar glaze and they get less so.

      Veggie chips might as well be potato chips for all the actual vegetable matter they have in them.

      I raise my daughter on lots of fruits, veggies, and whole grains. But when it comes time for an enjoyable snack, have some damn Fritos, with a small side of self control!

      1. We had friends that only ate organic, local, whole foods. They ate tons of them and then got surprised that they were gaining weight. /facepalm

        Get a decent balance of macros from mostly veggies, meats, dairy, fruit, and minimally processed grains. Nuts are also great. Do some physically active recreational activity a couple times a week. Don’t get fat. Get enough sleep. Try to minimize stress. Foster healthy interpersonal relationships. Take care of injuries. All the other stuff will only matter at the margins, if at all.

        1. I’m often reminded of the old show John & Kate Plus 8. She would let the kids eat organic lollipops all day long. Because organic!

          1. I caught a couple minutes of that show when my wife was watching it the other day. Even her kids make fun of her for being an overdramatic ditz.

      2. “Fruits and nuts are good for you, unambiguously”

        Agree and disagree. Quantity matters. Nuts especially. A great deal of calories in those, eaten by the handful as they usually are. I mean, look at the serving sizes used for the nutritional analysis. Who the hell eats only ten peanuts at a sitting?

  3. Jesus, I remember when Pepsi was trying to push those excreble “sun chips” by dumping them on convention caterers.

    -jcr

    1. I quite like them myself. It is pretty absurd that they are marketed as somehow healthier than a potato chip or something, though.

    2. Ah yes, Sun Chips. Their green-friendly bags were deafeningly loud when crinkled (greater than 85 decibels).

    3. I like sun chips…

  4. Its CEO, Indra Nooyi, considers doing so (The Journal’s words) an “ethical imperative.”

    Does the term “fiduciary duty” mean anything to this twit? Your ethical imperative is to not waste corporate resources on your little moral crusade. You want to be a sanctimonious scold, go join a ministry and preach on your own dime.

    1. While I agree with you in principle, Nooyi could equally argue that it is in the shareholders’ financial interest to kowtow to the culinary aesthetic preferences of the rulers to prevent their interference with Pepsi’s core business. In a free market she’d be full of shit. As things stand, she probably would have a point.

    2. Very often, in corporate-speak, “ethical imperative” is a polite way of saying, “We are doing this on our own in order to prevent the government from ramming something far worse down our throats.” So in this way, he is meeting his fiduciary duty to shareholders.

      1. Bill made the same point just before I did

      2. And I did not realize that she is a she.

    3. Have the shareholders removed her from office? No? Then I guess they support her ethical imperative.

      1. Ethical imperative meaning corporate positioning with a market segment

    4. Let’s remember PepsiCo’s “Branding Makeover” on soda that curiously coincided with some other kind of news about 8 and a half years ago.

      Shareholder activism is a wonderful thing, and it would be interesting to see what might have happened to PepsiCo’s bottom line if they’d had another rebranding exercise 6 months ago with arrows and femicunt ‘H’ signalling on their packaging.

      The problem is that while it’s a *wonderful thing*, it’s rather a blunt weapon. As long as the company hits its targets (by hook or by crook), most of the institutional investors will stick with the status quo, even if some of the individual initiatives adopted by the board are idiotic.

      1. Is Pepsi pro or, like so many of us, anti toilet?

  5. I’m not sure about this. It is widely known in SF that no one willingly walks into a Wally-World or Target. They only go in there because of the thug out front with a gun in his hand.
    Otherwise, all right-thinking people would patronize that over-priced shop down the street run by some old shit who got tired of dealing with the public 20 years ago.
    It is widely known!

  6. Mint Oreo Fudge Cremes? I hate peppermint and mint chocolate anything is a disgusting waste of good chocolate. But while you’re at it, make Archway bring back their long-discontinued sour cream drop cookies. Like a little pillowy sour cream pound cake, so good.

    1. Why do you hate America, Jerry?

    2. mint chocolate anything is a disgusting waste of good chocolate

      *faints*

  7. OK, I’m going to play devil’s advocate here. When most people think of abusive big business, they aren’t thinking of snack food companies unilaterally changing their product lines. They are thinking of things like financial companies making mistakes that hurt the broader economy, accidents that cause environmental damage, trying to circumvent regulations like VW did with their emissions tests, or insurance companies looking for ways to get out of paying benefits.

    Most of those complaints are overblown to some degree but there is still truth there — when you have the money to pay a top-notch legal or investigative team, you can often work the system in ways that individual consumers cannot. Libertarians know that government and regulators enables a lot of these behaviors but it does no good to ignore them entirely.

    1. Yep, utopia is not an option. We just get to choose the best available, not the ideal.
      No one is ignoring that stuff; it get’s plenty of ink. Maybe too much by comparison; remember the outrage when the EPA poisoned the stream?
      Me neither.

      1. Fair enough. But headlines like “The Defenseless American Corporation” makes Barty seem tone deaf. Russ Roberts does a good job of differentiating between being pro free market and pro big business. The latter label is one we should be trying to rid ourselves of.

        1. I suspect the headline is deliberately provocative.

          1. Maybe he wrote the article and let Chapman write the title?

    2. Most of the commentariat here would argue that many of the examples you give are a result of government policy *protecting* those businesses from meaningful punishment. In the case of financial companies, this is indisputable. The US Governments’ policies were a direct CAUSE of the damage to the broader economy.

      The possible exception is VW, whose shareholders – if you note – really took it in the pants when the news of their emissions test fraud became public. It would have been worse, I suspect, except that a lot of people expect that the other car companies are doing exactly the same thing.

    3. In every one of those cases it was a government regulation that was circumvented. Government is no better at regulating than it is at anything else, because of perverse incentives. Oops, we didn’t enforce a regulation? Gimme more money.

      The answer to ensuring product quality is for consumers to be able to freely critique products and corporations without fear of lawsuits, and to ensure that there are no barriers to the creation of private certification agencies that can rate products and businesses. They will get their ratings right, or they will go out of business.

      I trust TripAdvisor when I’m choosing a motel far more than I trust any government hospitality bureau. I trust UL labs more than I trust the FDA (though UL labs isn’t a perfect example).

    4. In the case of VW, there is a case to be made that they were attempting to satisfy customers desires in doing what they did. That is, TDI customers wanted a fun torquey engine that gets great fuel economy.

      I have a TDI, for a couple more weeks anyway. The get up and go in the Sportwagen is one of the highlights of driving it.
      The Subaru Outback I’m replacing it with is not at all impressive with its ability to Go, though its other capabilities (towing capacity) make up for it.

      If it weren’t for the engine throwing multiple, very expensive to fix codes at 70,000 miles I’d have done the wait and fix VW is offering (if that model actually can get an approved fix that doesn’t totally screw up the torque and fuel economy).

  8. I’ve tried to explain this to my prog friends countless times. They simply cannot comprehend that the only power a corporation has is to offer you a good or a service and it is your choice to do business with them or not.

    When I say if you don’t like Wallmart, don’t shop there, it’s “well poor people are FORCED to shop at Wallmart”, when I say “if you don’t like it that businesses are open on Thanksgiving, don’t shop on Thanksgiving” —- “Well People will show up no matter what, it’s the *corporation’s* moral responsibility to close on Thanksgiving for their workers”

    These people simply do not understand freedom, and are angry others choose differently than they do.

    1. These people simply do not understand freedom, and are angry others choose differently than they do.

      This.

      What’s the quote from Heinlein or whomever? Paraphrased, it’s “Fuck all the -isms, there are two types of people in the world, those who must control others, and those who aren’t afflicted with that compulsion.”

      1. “Political tags ? such as royalist, communist, democrat, populist, fascist, liberal, conservative, and so forth ? are never basic criteria. The human race divides politically into those who want people to be controlled and those who have no such desire. The former are idealists acting from highest motives for the greatest good of the greatest number. The latter are surly curmudgeons, suspicious and lacking in altruism. But they are more comfortable neighbors than the other sort.”

        R.A. Heinlein

    2. “Well People will show up no matter what, it’s the *corporation’s* moral responsibility to close on Thanksgiving for their workers”

      What about the workers who are getting holiday pay (double time at many workplaces) so that they can celebrate Thanksgiving a day or two later and buy a nice dinner without disrupting the budget?

      “Progressives” always think they know what’s best for poor people when in reality, they have no fucking clue.

  9. Jeez, I have worked for about 25 years in a couple of the largest corporate entities out there. Whenever I see Hollywood pushing that “evil corporate genius” character I try not to laugh out loud. In my experience most of those who rise to the top of global corporate management have world class interpersonal/political skills, passable business acumen, a sketchy moral compass, and too often a room-temperature IQ.

  10. much as the FDA banned the diet supplement ephedra in 2004.

    I discovered ephedrine not long ago, and started mixing it with caffeine. Luckily, you can buy it in pill form over the counter. It’s a fucking wonderful stimulant and the health risks are only really a worry for people with heart issues. Apparently, the synthesized/isolated stuff is okay but the plant extract isn’t? As usual, fuck the FDA.

  11. Prediction: Trumps corporate income tax cut will be implemented, Trumps tariffs will not be….

    1. fap fap fap fap ….

    2. From your keyboard to God’s eyes…..but I ain’t betting on it.

  12. Yet the government and Hollywood relentlessly hammer the “evil, powerful corporations/capitalists” mantra. I’d love to avoid all shows that do this, but it’s pretty much every show that needs an ubiquitous enemy these days — completely ignoring that fact that it is governments that are responsible for pretty much all the suffering and death on the planet (I think non-state actors barely rate a rounding error on the 20th century death toll). The exception seems to be crime dramas, where we are taught that virtually all crime is committed by white people.

    Sci-fi series are particularly relentless and brainless about this — the hip thing seems to be to imagine dystopian futures where “the corporations have taken over!”

    1. A lot of short sci-fi fiction makes “corps” the enemies. There are even cases where it’s not essential to the plot but they get dropped in. I guess it’s the new trend.

      1. Eh. It’s been a trend since the 80s, at least. SF creators can’t seem to wrap the heads around the idea that corporations that act like a government are a government. They think how you are ruled is somehow mediated by who rules you.

        1. True.

          I was thinking back to the s-f I used to read when I was a kid. Even statists like Asimov critiqued uniformity and power. But they often saw it as coming from a faceless bureaucracy functioning as part of a government.

        2. Luckily, there’s some good stuff from beforehand. I’m working my way through Poul Anderson’s Polesotechnic Universe, and fuck if the merchants and traders aren’t…well, not good guys or heroes, but definitely in the right compared to governments.

    2. “I think non-state actors barely rate a rounding error on the 20th century death toll”

      Hollywood actors give them a run for their money.

      “The exception seems to be crime dramas, where we are taught that virtually all crime is committed by white people.”

      I blame Jews.

  13. Want a healthy snack its called fruit and nuts no need for a corporation to get between me and a healthy snack thats why their healthy snacks are not considered healthy by those who want healthy foods. simple solution but i’m sure Pepsico can figure a way to make it a requirement to serve their crap at schools

    1. Unless you own a farm that grows them, I’m pretty sure you’re going to find a few corporations involved in the process of getting fruits and nuts from a farm to your table.

  14. Taste is the biggest factor in a snack purchase, according to 66 percent of Baby Boomers and 53 percent of millennials in a March survey by consultancy Aleix Partners.”

    … Healthy snacks make up less than one-tenth of all snack sales in the country.

    I’m guessing at least some of the people who claimed taste wasn’t the biggest factor in a snack purchase were lying.

    1. I can see it. The poor ones probably care about cost.

  15. Remember when they tried to make it that cigarets were made “addictive” by tampering with them surreptitiously, rather than just engineered to give smokers of them exactly what they wanted for the money?

  16. The ignorance of most Libertarians is astounding, which is why your movement never gains any ground with the public despite its noble and largely-sound issues platform. To say that it’s government that is ‘causing’ the problems in this country is like blaming Luca Brasi for Don Vito Corleone’s retribution against the Five Families. Don’t you people realize that today’s government is simply bought and paid for by the moneyed elites, exactly as Bernie Sanders has pointed out? Look deep into the freedom-abridging laws and regulations that sap the vitality from our economy and have been responsible for the massive underclass we have today, and you’ll find sponsoring checks cut by corporate lobbyists. The government is not the catalyst here, but simply the prostitute…the thug that does the bidding of Wall Street.

    No, government is not blameless. It’s hugely immoral for these irresponsible hacks to accept the corporate bribes. Yet, corporations spend literally hundreds of millions of dollars procuring government favors. Haven’t you people ever asked yourselves why?

    Quit blaming government for the ills in this country and get your heads out of the sand. The Trump-Sanders tidal wave this election year is solid proof that the American people have finally got it right.

    1. “Quit blaming government for the ills in this country and get your heads out of the sand.”

      One more self-important ass here to tell us we’ve been seeing it wrong forever!

  17. I have been nursing a resentment against Nabisco and its parent company, Mondelez International, over the disappearance from area grocery shelves of Mint Oreo Fudge Cremes, which are to die for. Why doesn’t Nabisco cater to my whim?

    My personal grudge is against Arizona Tea for discontinuing the green tea with apple.

  18. “How about it, Congress?”

    You want more laws and regulations? Ask the corporations. They have the ear of congress.

    1. Stupid man arrives with stupid comments!

  19. the kind of folks who put a buck into a machine to get a miniscule portion of “snack food” will always buy the junk options. Taht’s what they/ve had all their lives and Pepsico nor Nabisco will change that. In most cases the packaging and handling costs are higher that the 2.73 ounces of “product” which in most cases contains little real nutritional value.

    When I want a quick bite to eat I’ll go for a piece of fresh fruit, some quality whole milk real cheese, a hard cooked egg or three, and havesomething substantial and lasting that won’t spike my blood sugar or end up crashing my energy level in two hours. doing this for the past couple decades has kept me healthy and strong. I don’t need kinyunkare cause I just don’t get sick. Proper diet and exercise does that.

    Of course, some will then step up and say “government must MANDATE people eat healthy”. the Mooch mandates what schools feed kids. Friend works in a school cafeteria the kids are forced to take foods they don’t want, lunches from home are inspected, kids toss whole apples, pears, carrots, untouched… and the helpers can’t take anything, even if snaffled out of the trash can after all the kids are back in class. When HER kids are short on fruit and they’re too poor to buy much….. husband out of work in his nice union job and can’t work for any non-union shop or himself or he’ll risk losing his retirement later on. Ain’t gubmit fine an dandy?

    1. “Friend works in a school cafeteria the kids are forced to take foods they don’t want, lunches from home are inspected, kids toss whole apples, pears, carrots, untouched… and the helpers can’t take anything, even if snaffled out of the trash can after all the kids are back in class.”

      Happens every day at the airport. They even throw away shampoo.

  20. If you could put dog shit on a stick and sell it to people, and they liked it and asked for more with money in their hands, you’d make dog shit sticks all day long until you: a) had no more sticks or dog shit, or b) customers stopped asking for dog shit sticks.

    That’s consumer demand for ya’!

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  22. All for-profit corporations are soulless psychopaths even when obeying the strict letter of the law. They have only one purpose and goal, to make as much profit as possible for the owners and management in as short a time as possible. Any other considerations just do not exist. This, of course, is not normal, healthy behavior for biological “persons” and citizens. If corporations are “persons,” then they are not the type of “persons” we would want making any meaningful decisions for us. They need to be watched and their conduct regulated because they will stretch and bend the law to its maximum and beyond in their soulless, bloodless quest for profit. They will engage in any and all abuses to attain this singular goal.

    1. That and corporate person-hood is just a legal fiction to start with. The individuals involved have the same rights as anyone else but why should some fake entity have any rights at all?

      1. Curt2004|12.15.16 @ 3:07PM|#
        “That and corporate person-hood is just a legal fiction to start with. The individuals involved have the same rights as anyone else but why should some fake entity have any rights at all?”

        The “fake entity” has no rights at all.

    2. ejs|12.15.16 @ 12:44PM|#
      “All for-profit corporations are soulless psychopaths even when obeying the strict letter of the law.”

      Says a brainless piece of shit.

      1. What a thoughtful response. Would you say that if you had to put your name to it?

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