The Arrogance Of The 1%

As America approach­es anoth­er Presidential elec­tion, one of the cen­tral tenets of this cycle is the widen­ing gap between the haves and the have-nots.Today there is data which sug­gest that 99% of the world’s wealth and resources are actu­al­ly owned and con­trolled by less than 5% of the world’s peo­ple. What that means in the reverse is that up to 95% of the world’s now 7 bil­lion and climb­ing inhab­i­tants are actu­al­ly left to fight over the 1 % that falls off the table of the rich and powerful.

The Republican can­di­date for President Mitt Romney, his par­ty and sur­ro­gates, argue that those who seek to talk about these dis­par­i­ties are envi­ous and resent­ful of suc­cess. Romney him­self is report­ed­ly worth a quar­ter of a bil­lion dol­lars and count­ing. I doubt that there are many peo­ple who would not glad­ly trade finan­cial posi­tions with Mitt Romney. How then are Republicans able to make the envy argument?

They do so by con­vinc­ing low infor­ma­tion peo­ple to believe in ideas and ulti­mate­ly vote against their own best inter­est. My focus today is not to talk about repub­li­can deceit , but to frame what is actu­al­ly hap­pen­ing not just in America but all over the world. The defeat of French President Sarkozy of France may actu­al­ly shed some light into that feel­ing of hope­less­ness the world’s peo­ple are feel­ing at the unmit­i­gat­ed greed of those who have every­thing yet have an insa­tiable rapa­cious desire for more.

In oth­er parts of the globe move­ments are spring­ing up, peo­ple are demand­ing their share of the world’s resources , whilst at the same time decry­ing the immense glut­tony of major cor­po­ra­tions, and what some per­ceive to be their wan­ton dis­re­gard for the lit­tle man. 

Several years ago as a small busi­ness own­er I was approached by a rep­re­sen­ta­tives of a large cor­po­ra­tion called Sprint, Sprint had just launched their pre-paid line called Boost, This new pre­paid line was to oper­ate on the IDN net­work, IDN uses a sim card and allowed Sprint to offer users walkie-talkie ser­vice, a move which was rev­o­lu­tion­ary then.

At the time they would have been hap­py to have a home­less per­son sell­ing the prod­uct. Fast for­ward to today, Boost has rev­o­lu­tion­ized the pre-pay indus­try with their $50 per month plan with no con­tract, this plan offers inter­net , unlim­it­ed domes­tic talk and text, and the abil­i­ty with on time pay­ment to shed up to $15 from the $50 plan over an 18 month period.

What’s not to like?

The idea took off beyond the wildest dreams of Sprint and the plan­ners, in addi­tion Sprint offered cheap phones to the con­sumers which they argued they sub­si­dized . Sprint then start­ed argu­ing that small retail­ers should not pur­chase too many phones all at once because they placed much fin­in­cial resources into mass pur­chas­ing of the devices and it was bad busi­ness to have them sit­ting on store shelves. So they cut off sup­plies, some­times for weeks on end , in an effort they argue would dry up mer­chan­dize being held by retail­ers. Never mind that small retail­ers like myself had to deal with cus­tomers who came to my estab­lish­ment and could not find the devices , some­times for weeks on end.

As the pop­u­lar­i­ty of the plan grew so did the desire for more sophis­ti­cat­ed devices com­men­su­rate with the times. In effect con­sumers want­ed all of the trap­pings of the inter­net, talk and text, up to date devices, low month­ly pay­ments and no con­straints of a con­tract. So the big­wigs decid­ed that the prod­uct was now strong enough to sup­port direct stores . So they embarked on entic­ing poten­tial small busi­ness peo­ple to invest in stores car­ry­ing noth­ing but Boost and vir­gin mobile phones and acces­sories, yet Sprint bears none of the cost and over-heads of the oper­a­tional costs asso­ci­at­ed with those stores.

Of course yours tru­ly said thanks but no thanks. One of their reps told me recent­ly quote“Mike we have count­less deal­ers and you are the only one with a Barber shop in the same facil­i­ty as your store.” I told him my Barber shop stays you may go.

What Sprint is seek­ing to do is to dic­tate to small busi­ness peo­ple how they should con­duct their busi­ness, they want to add cer­tifi­cates to busi­ness peo­ple’s com­put­er on the premise they want to dis­cour­age unau­tho­rized retail­ers from sell­ing pre-paid pins, they frame it as a means of dri­ving busi­ness to the door of busi­ness peo­ple like myself, in essence it is a track­ing device. A track­ing device which is sim­i­lar to their attempts to tell retail­ers how many phones they must sell per month , how their prod­ucts must be dis­placed in the retail­ers own store and how much space and mer­chan­dize retail­ers must devote and stock respectively.

The threat?

Do not do as I say, we de-autho­rize you”. Never mind that Sprint’s name is so bad in cer­tain cir­cles many peo­ple dis­card their Sprint con­tracts to get Boost and Virgin Mobile ser­vices, unaware they are both owned by Sprint. The arro­gance of Sprint in assum­ing that small busi­ness­es will take on over-heads to mar­ket their prod­ucts is stag­ger­ing , yet some small busi­ness peo­ple unaware that I am myself an authroized retail­er, have con­fid­ed in me that it is extreme­ly dif­fi­cult to oper­ate the direct stores with all of the cost and risks sell­ing only the afore­men­tioned products.

None of the oth­er providers of cel­lu­lar ser­vices I mar­ket in my store have ever approached me with any of the demands Sprint has the audac­i­ty to demand.

I men­tion this sto­ry to high­light the bla­tant dis­re­spect and dis­dain large cor­po­ra­tions have for small busi­ness peo­ple and the ordi­nary man. At the same time they chose this auda­cious path ‚they give away American jobs to poor­ly trained peo­ple in the Philippines and oth­er Countries who are extreme­ly rude and incom­pe­tent , frus­trat­ing cus­tomers who then return to stores like mine to sort through Sprint’s cus­tomer ser­vice problems.

Many large cor­po­ra­tions have come and gone, America needs to con­stant­ly seek to encour­age and facil­i­tate small busi­ness­es in the Towns cities and ham­lets all across the nation, our peo­ple are bet­ter served when we offer inti­mate friend­ly service.

We wait to see how Sprint will even­tu­al­ly evolve.