Capitalism Gone Bad in the Rogue Valley

27 09 2010

Yesterday’s Opinion Piece in the Meford Mail Tribune was right on target, if not sad, in its take on the situation of one of the area’s largest employers, Harry and David.

Purchased a few years ago in a private-equity leveraged buyout, the company was saddled with a $20 million-per-year interest payment. Ever since, it has been in the red.

A new chairman and CEO, appointed by the syndicate, lives in Atlanta and is hell bent on laying off folks, and apparently, turning much of the H&D orchards into tract homes.

We in this county have unwittingly become poster children of capitalism gone bad. The practices of Heyer and the Wasserstein syndicate are extractive, predatory and anti-democratic pure and simple, made possible by an era of cheap and free-to-roam money credit. They are lining their pockets while extracting and destroying value here in Jackson County. The situation is unfair and should be stopped. The fact that it is technically legal burns me to no end, and only underscores how upside down are the current laws regarding capital and ownership. The employees of H&D as well as all the residents of Jackson County are the victims of financial sleight-of-hand that, at present, is draining our county of assets and denying us of self determination regarding land, livelihood and lifestyle here in the Rogue Valley.

There are alternatives. We can create cooperatively owned ventures like the Grange Coop, the Medford Food Coop and the Rogue Valley Credit Union. We can use and encourage local banks to be more proactive in investing in their local community. We can use local investment mechanisms such as the Jefferson Grapevine, Community Resiliency Fund and micro-finance to back local entrepreneurs. We can create local and regional mutual funds, like Leslie Christian of Upstart 21 of Portland, where locals buy shares, and the fund buys local, privately held companies, thus keeping them locally owned. We can structure the ownership of a company, like is done in China and other countries, with two categories of shares: one for locals only and have controlling votes, and another for non local “foreigners” with no voting privileges. We can convert local companies into employee-share owner plans (ESOPS). As local business owners, we can band together in associations and marketing non-profits such as THRIVE to promote the local commercial class. Instead of playing victim and patsy to global predatory capitalists like Heyer, Wasserstein and company, we can take our own steps to local ownership, which is the right move to economic self-determination and democracy.

Advertisements

Actions

Information

2 responses

16 10 2010
Meri Walker

Couldn’t agree more, Torrey! Just came from an energizing convening meeting with about 20 folks who met with Susan Davis Moora (of The Tipping Point network fame) and her husband, Walter. Looks like there will soon be a strong “Ken” around local funding for these kinds of initiatives. Want to be included in the next session?

17 10 2010
torreybyles

Sounds good Meri. Let’s talk!

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s




%d bloggers like this: