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“Death by HR” – High Tech Threatened by Social Justice Activists

Fantasy Gains from Inclusion (Intel Corporation)

Fantasy Gains from Inclusion (Intel Corporation)

But pressure to hire more minorities and women in tech has existed at least since Jesse Jackson’s first run at it in 1999.[1] Why is resistance crumbling almost twenty years later?

First, today’s high tech is more software than hardware, with a new generation of executives more willing to appease the activists. Most people in the industry want to be sure women and minorities are fairly treated and feel welcomed, and the networked activists can quickly trash your public image if you cross them. So appeasing donations and lip service are the most common responses by today’s execs.

Another new factor is the hardcore third-wave feminists and “critical race theory”-trained products of academia that are making activism their life’s work. Many college students are adopting the victim culture and identities as protectors of the weak—women, plus transgender and all the other flavors of other. These newer, mostly upper-class-academic activists are besieging the older engineer-dominated companies as well as the new software giants. The culture wars, where activists infiltrate one cultural area after another then try to demonize and expel any conservatives that remain, have reached the gates of high tech.

“Gamergate” was a skirmish in the culture war; computer gaming companies with corrupt relationships to game-reviewing magazines and sites came under fire from gamers, and a full-scale battle between social justice activists and gamers who wanted their games built for fun and not political correctness began. There were well-publicized nasty trolling tactics on all sides (though the activists had more friends in the media to promote their story), and at one point the gamergaters persuaded many advertisers to cancel ads in the offending publications. Intel cancelled some of their ad support, then was subjected to activist attacks. To defuse the issue, Intel pledged $300 million to activist groups.[2] Shortly thereafter, Intel cancelled its sponsorship of the (merit-based) Science Talent Search and cut budgets in research and administration by… $300 million.[3]

Online swarming now results in censorship of speech disagreeing with these activists. One article was withdrawn by Forbes online after activist swarming because it denied that diversity in high tech was a problem. This was an instance of kafkatrapping, a mechanism for repressing all contrary thought by labelling anyone who speaks it as racist, sexist, or homophobic — your denial of base motives for disagreement with the activist point of view means you are what you deny, and your speech is hate speech to be suppressed.[4] Badthink must be stamped out so that Goodthink will prevail. The article in question was so extreme:

Repeat after me: there is no “diversity crisis” in Silicon Valley. None. In fact, there is no crisis at all in Silicon Valley. Silicon Valley is doing absolutely gangbusters. Apple has $200 billion in cash reserves and equivalents—and a market valuation of about $630 billion. Amazing. Facebook now garners a billion daily users. This is a nearly unfathomable number. Google is worth nearly $450 billion and has $70 billion in cash on hand.

This is not a crisis. Silicon Valley is swimming in money and in success. Uber is valued at around $50 billion. Companies like Airbnb are remaking travel and lodging. Intel is moving forward into the global Internet of Things market. South Korea’s Samsung just opened a giant R&D facility in the heart of Silicon Valley. Google and Facebook are working to connect the entire world. Netflix is re-making how we consume entertainment.

Silicon Valley is home to the next phase of the global auto industry. Fintech and biotech are transforming banking and medicine. The success of Silicon Valley is not due to diversity—or to any bias. Rather, to brilliance, hard work, risk taking, big ideas and money.

Want to be part of this? Great! Follow the example of the millions who came before you. Their parents made school a priority. They took math and science classes, and did their homework every night. They practiced ACT tests over and over. They enrolled in good schools… They took computer programming, engineering, chemistry—hard subjects that demand hard work. They then left their home, their family, their community, and moved to Silicon Valley. They worked hard, staying late night after night. They didn’t blog, they didn’t let their skills go stale, they didn’t blame others when not everything worked out exactly as hoped….

From all over the world, from Brazil and Canada, Nigeria, Pakistan, Russia, Norway, Egypt, fellow humans come to Silicon Valley to work, create, succeed. And they do. Silicon Valley is extremely diverse.

Of course, the iPhone wasn’t created because of diversity. Nor was Google. Nor Facebook, nor the computer chip, nor the touchscreen. They were created because a small band of super-smart people who worked very hard to create something better than existed before….

Silicon Valley doesn’t just create greatness, it’s probably the most open, welcoming, meritocratic-based region on the planet. Anecdotal evidence strongly suggests that disproportionately more Chinese, Indians, and LGBQT succeed in Silicon Valley than just about any place in America. Guess what? Everyone earned their job because of their big brains and ability to contribute.

Is that you? Then come here! It’s an amazingly inclusive place.

But be sure to bring your computer science degree, your engineering degree, your proven set of accomplishments. Be sure you are prepared to sacrifice “fun” for long hours and hard work. Offer proof of how well you did in school, in math, in physics. These matter dearly as they are fundamental to what makes Silicon Valley succeed.

Silicon Valley is not perfect. It’s certainly no utopia. But if you aren’t able to make it here, it’s almost certainly not because of any bias. Rather, on your refusal to put in the hard work in the hard classes, and to accept all the failures that happen before you achieve any amazing success….[5]

The coiner of the term kafkatrapping, Eric S. Raymond, was a pioneer in open-source development, where widely-dispersed programmers working together build a software project which is free to use, change, or incorporate into larger systems. One of the earliest and most famous of such projects was Linux, an open-source version of Unix originated by Linus Torvalds. Open-source projects have been infiltrated by online activists and “codes of conduct” that let them expel less politically-sensitive participants have been added. Linus himself was threatened by the activists.[6]

Another example of the activist entryists’ pressure tactics from Raymond’s blog (emphasis added):

The hacker culture, and STEM in general, are under ideological attack. Recently I blogged a safety warning that according to a source I consider reliable, a “women in tech” pressure group has made multiple efforts to set Linus Torvalds up for a sexual assault accusation. I interpreted this as an attempt to beat the hacker culture into political pliability, and advised anyone in a leadership position to beware of similar attempts.

Now comes Roberto Rosario of the Django Software Foundation. Django is a web development framework that is a flourishing and well-respected part of the ecology around the of the Python language. On October 29th 2015 he reported that someone posting as ‘djangoconcardiff’ opened an issue against pull request #176 on ‘awesome-django’, addressing it to Rosario. This was the first paragraph.

Hi, great project!! I have one observation and a suggestion. I noticed that you have rejected some pull requests to add some good django libraries and that the people submitting thsoe pull requests are POCs (People of Colour). As a suggestion I recommend adopting the Contributor Code of Conduct (http://contributor-covenant.org) to ensure everyone’s contributions are accepted regarless [sic] of their sex, sexual orientation, skin color, religion, height, place of origin, etc. etc. etc. As a white straight male and lead of this trending repository, your adoption of this Code of Conduct will send a loud and clear message that inclusion is a primary objective of the Django community and of the software development community in general. D.

The slippery, Newspeak-like quality of djangoconcardiff’s “suggestion” makes it hard to pin down from the text itself whether he/she is merely stumping for inclusiveness or insinuating that rejection of pull requests by “persons of color” is itself evidence of racism and thoughtcrime.

But, if you think you’re reading that ‘djangoconcardiff’ considers acceptance of pull requests putatively from “persons of color” to be politically mandatory, a look at the Contributor Covenant he/she advocates will do nothing to dissuade you. Paragraph 2 denounces the “pervasive cult of meritocracy”. [Update: The explicit language has since been removed. The intention rather obviously remains]

It is clear that djangoconcardiff and the author of the Covenant (self-described transgender feminist Coraline Ada Ehmke) want to replace the “cult of meritocracy” with something else. And equally clear that what they want to replace it with is racial and sexual identity politics.

Rosario tagged his Twitter report “Social Justice in action!” He knows who these people are: SJWs, “Social Justice Warriors”. And, unless you have been living under a rock, so do you. These are the people – the political and doctrinal tendency, united if in no other way by an elaborate shared jargon and a seething hatred of [the]“white straight male”, who recently hounded Nobel laureate Tim Hunt out of his job with a fraudulent accusation of sexist remarks.

I’m not going to analyze SJW ideology here except to point out, again, why the hacker culture must consider anyone who holds it an enemy. This is because we must be a cult of meritocracy. We must constantly demand merit – performance, intelligence, dedication, and technical excellence – of ourselves and each other.

Now that the Internet—the hacker culture’s creation!—is everywhere, and civilization is increasingly software-dependent, we have a duty, the duty I wrote about in Holding Up The Sky. The invisible gears have to turn. The shared software infrastructure of civilization has to work, or economies will seize up and people will die. And for large sections of that infrastructure, it’s on us—us!—to keep it working. Because nobody else is going to step up.

We dare not give less than our best. If we fall away from meritocracy—if we allow the SJWs to remake us as they wish, into a hell-pit of competitive grievance-mongering and political favoritism for the designated victim group of the week—we will betray not only what is best in our own traditions but the entire civilization that we serve.

This isn’t about women in tech, or minorities in tech, or gays in tech. The hacker culture’s norm about inclusion is clear: anybody who can pull the freight is welcome, and twitching about things like skin color or shape of genitalia or what thing you like to stick into what thing is beyond wrong into silly. This is about whether we will allow “diversity” issues to be used as wedges to fracture our community, degrade the quality of our work, and draw us away from our duty.

When hackers fail our own standards of meritocracy, as we sometimes do, it’s up to us to fix it from within our own tradition: judge by the work alone, you are what you do, shut up and show us the code. A movement whose favored tools include the rage mob, the dox, and faked incidents of bigotry is not morally competent to judge us or instruct us.

I have been participating in and running open-source projects for a quarter-century. In all that time I never had to know or care whether my fellow contributors were white, black, male, female, straight, gay, or from the planet Mars, only whether their code was good. The SJWs want to make me care; they want to make all of us obsess about this, to the point of having quotas and struggle sessions and what amounts to political officers threatening us if we are insufficiently “diverse”.

Think I’m exaggerating? Read the whole djangoconcardiff thread. What’s there is totalitarianism in miniature: ideology is everything, merit counts for nothing against the suppression of thoughtcrime, and politics is conducted by naked intimidation against any who refuse to conform. Near the end of the conversation djangoconcardiff threatens to denounce Rosario to the board of the Django Software Foundation in the confused, illiterate, vicious idiom of an orc or a stormtrooper.

It has been suggested that djangoconcardiff might be a troll emulating an SJW, and we should thus take him less seriously. The problem with this idea is that no SJW disclaimed him–more generally, that “Social Justice” has reached a sort of Poe’s Law singularity at which the behavior of trolls and true believers becomes indistinguishable even to each other, and has the same emergent effects.

In the future, the hacker whose community standing the SJWs threaten could be you. The SJWs talk ‘diversity’ but like all totalitarians they measure success only by total ideological surrender – repeating their duckspeak, denouncing others for insufficient political correctness, loving Big Brother. Not being a straight white male won’t save you either – Roberto Rosario is an Afro-Hispanic Puerto Rican.

We must cast these would-be totalitarians out–refuse to admit them on any level except by evaluating on pure technical merit whatever code patches they submit. We must refuse to let them judge us, and learn to recognize their thought-stopping jargon and kafkatraps as a clue that there is no point in arguing with them and the only sane course is to disengage. We can’t fix what’s broken about the SJWs; we can, and must, refuse to let them break us.[7]

Raymond’s post is the distilled essence of commitment to engineering excellence and equal opportunity. His opponents are the people trying to tear down standards and replace them with identity politics, tribalists who don’t understand how to make the pie but want to get pieces for their friends.

Victim culture identity politics is a US-centric movement promoting narrower and narrower minorities as victims. The earlier Jesse Jackson-style affirmative action movement was supposed to get blacks and women into higher-paying, powerful positions in tech — but most tech companies are worldwide in scope and hiring, and it makes little sense for them to represent local population distributions. Silicon Valley is much more top-heavy with Asians than with white males:

[Most articles on tech diversity say] the biggest tech companies in Silicon Valley are overwhelmingly white and male. While blacks and Latinos comprise 28 percent of the US workforce, they make up just 6 percent of Twitter’s total US workforce and six percent of Facebook employees.

Of course this is just a lie. Very few people would say a workforce that is 50 to 60 percent white, true of both Google and Microsoft, is “overwhelmingly white.” In fact, it’s less non-Hispanic white than the US labor force as a whole. I’ve linked to statistics in this very piece. They take about 10 seconds of browsing search queries to understand this.

But you don’t need to know statistics. Eat at a Google cafeteria. Or walk around the streets of Cupertino. There is no way that one can characterize Silicon Valley as overwhelmingly white with a straight face. Silicon Valley is quite diverse. The diversity just happens to represent the half of the human race with origins in the swath of territory between India and then east and north up to Korea.

The diversity problem isn’t about lack of diversity. It is about the right kind of diversity for a particular socio-political narrative. That’s fine, but I really wish there wasn’t this tendency to lie about the major obstacle here: people of Asian origin are 5% of the American work force, but north of 30% in much of the Valley. If you want more underrepresented minorities hiring fewer of these people would certainly help. In particular the inflow of numerous international talent coming from India and China could be staunched by changes to immigration law.

But these are international companies. Though they genuflect to diversity in the American sense (blacks and Latinos), ultimately they’ll engage in nominal symbolic tokenism while they continue on with business, with an increasingly ethnically Asian workforce and and increasingly Asian economic focus. Meanwhile, the press will continue to present a false caricature of a white workforce because that’s a lot more of a palatable bogeyman than Asian Americans and international tech migrants, and the liberal reading public seems to prefer the false narrative to engaging with reality.[8]

Money and power are being created by disciplined, organized hard work in one of the few US-based growth industries left, the connected computers that make up the Internet and allow cellphone apps to do the world’s business. Political parasites are trying very hard to gain entry and position themselves to feed from the resources others generated. While it may seem harmless to throw activists a bone—and Silicon Valley really does want more excellent minorities and women!—feeding the activists only lets them gather more allies to return to demand more. And when they gain power, all of us lose.


[1] “Jesse’s New Target: Silicon Valley,” by Roger O Crockett, Bloomberg, July 11, 1999. http://www.bloomberg.com/news/articles/1999-07-11/jesses-new-target-silicon-valley
[2] “Intel pledges $300 million to improve diversity in tech,” by Andrew Cunningham, January 6, 2015. http://arstechnica.com/business/2015/01/intel-pledges-300-million-to-improve-diversity-in-tech/
[3] “Intel plans job cuts across the company, internal memo says,” by Mike Rogoway, The Oregonian, June 4, 2015. http://www.oregonlive.com/silicon-forest/index.ssf/2015/06/intel_facing_disappointing_sal.html
[4] “Kafkatrapping,” by Eric Raymond, Armed and Dangerous, July 18, 2010. ““Your refusal to acknowledge that you are guilty of {sin, racism, sexism, homophobia, oppression…} confirms that you are guilty of {sin, racism, sexism, homophobia, oppression…}.” http://esr.ibiblio.org/?p=2122
[5] “There Is No Diversity Crisis in Tech,” by Brian Hall, censored at Forbes online but republished by Techraptor.net, October 7, 2015. https://techraptor.net/content/there-is-no-diversity-crisis-in-tech-by-brian-hall
[6] “From kafkatrap to honeytrap,” by Eric Raymond, Armed and Dangerous, November 3, 2015. http://esr.ibiblio.org/?p=6907
[7] “Why Hackers Must Eject the SJWs,” by Eric S. Raymond, Armed and Dangerous, November 13, 2015. http://esr.ibiblio.org/?p=6918
[8] “Silicon Valley Has an Asian-people Problem,” by Razib Khan, The Unz Review, February 6, 2016. http://www.unz.com/gnxp/silicon-valley-has-an-asian-people-problem/


Death by HR: How Affirmative Action Cripples Organizations

[From Death by HR: How Affirmative Action Cripples Organizations,  available now in Kindle and trade paperback.]

The first review is in: by Elmer T. Jones, author of The Employment Game. 

Corporate HR Scrambles to Halt Publication of “Death by HR”

Nobody gets a job through HR. The purpose of HR is to protect their parent organization against lawsuits for running afoul of the government’s diversity extortion bureaus. HR kills companies by blanketing industry with onerous gender and race labor compliance rules and forcing companies to hire useless HR staff to process the associated paperwork… a tour de force… carefully explains to CEOs how HR poisons their companies and what steps they may take to marginalize this threat… It is time to turn the tide against this madness, and Death by HR is an important research tool… All CEOs should read this book. If you are a mere worker drone but care about your company, you should forward an anonymous copy to him.

 


More reading on other topics:

The Great Progressive Stagnation vs. Dynamism
Death by HR: How Affirmative Action is Crippling America
Death by HR: The End of Merit in Civil Service
Corrupt Feedback Loops: Public Employee Unions
Death by HR: History and Practice of Affirmative Action and the EEOC
Civil Service: Woodrow Wilson’s Progressive Dream
Bootleggers and Baptists
Corrupt Feedback Loops: Justice Dept. Extortion
Corrupt Feedback Loops, Goldman Sachs: More Justice Dept. Extortion
Death by HR: The Birth and Evolution of the HR Department
Death by HR: The Simple Model of Project Labor

On Affirmative Action and Social Policy:

Affirmative Action: Chinese, Indian-Origin Citizens in Malaysia Oppressed
Affirmative Action: Caste Reservation in India
Diversity Hires: Pressure on High Tech<a
Title IX Totalitarianism is Gender-Neutral
Public Schools in Poor Districts: For Control Not Education
Real-Life “Hunger Games”: Soft Oppression Destroys the Poor
The Social Decay of Black Neighborhoods (And Yours!)
Child Welfare Ideas: Every Child Gets a Government Guardian!
“Income Inequality” Propaganda is Just Disguised Materialism

“Death by HR” – IndieReader Review: “Skillfully written… to plant seeds of doubt among HR devotees”

Indie Reader Approved

Indie Reader Approved

The first reviewing service review is in. Indiereader says:

IR Rating 5.0 out of 5.0IR Rating

 IR Verdict: Skillfully written and meticulously edited at an advanced reading level, this politically incorrect study does a great job using facts and figures to reinforce the author’s thesis, or at least to plant seeds of doubt among HR devotees.

Approaching his subject from historical, political, social, and economic perspectives, author Jeb Kinnison makes a strong case against Human Resources and its enforcement of Affirmative Action (AA), an outgrowth of the Civil Rights Movement in the United States in the late 1950s and early 1960s. Convinced the only way to protect America’s future and preserve competitiveness in the marketplace and in the global community is to hire on merit alone, Kennison uses charts, graphs, citations, and historical events to prove his points….

Focusing mostly on labor regulations and how government intrusion damages productivity, he examines specific hiring and employment practices of companies such as Google. According to the author, companies working under AA regulations assume the cog model, which drawing from a deep pool of job candidates can meet the minimum competence requirements and then further select to meet diversity goals. “These will typically not be the best candidates for the particular position and team environment, but team managers are not given a choice.”

Though mainly about U.S. hiring practices, the book explores foreign lands as well, citing studies in India, Malaysia, and Nigeria. Wherever the location, however, the author comes to the same conclusion. “A bright future doesn’t come with thousands of pages of laws and regulations dating back to the last century and designed to hold a tottering status quo in place.” Instead, he writes that the success of a county and its people comes from individual striving, strong growth companies, new technologies, and people free to choose their destinies.

Skillfully written and meticulously edited at an advanced reading level, this politically incorrect study does a great job using facts and figures to reinforce the author’s thesis, or at least to plant seeds of doubt among HR devotees. Up-to-the-minute analysis in the final chapters looks at controversial subjects including universal health care, the science of stereotypes, [and] the culture of victimhood, among many other hot topics. For readers who want to seriously delve into the problems with Human Resources, this is the book for you.

DEATH BY HR: HOW AFFIRMATIVE ACTION CRIPPLES ORGANIZATIONS is a well-researched, thought-provoking, articulately expressed book sure to inspire controversy and evoke strong emotions in readers, whether they agree with the author about the described workplace injustices, or whether they disagree with his right-leaning, conservative conclusions.

~Carol Michaels for IndieReader

“Right-leaning”? Not really, though we’ve reached the late-stage decay where any dissent from the Establishment progressive consensus is labelled “right wing.” I should do a post about how lack of background historical knowledge has led us to this point.

I was wary of a review site that costs a bit less than Kirkus and checked to be sure they weren’t just churning out positive reviews. As you can see from a look through their reviews, they’re not afraid to low-rate books that deserve it.


Death by HR: How Affirmative Action Cripples Organizations

Death by HR: How Affirmative Action Cripples Organizations

[Death by HR: How Affirmative Action Cripples Organizations, available now in Kindle and as a sumptuous trade paperback.]

The first review is in: by Elmer T. Jones, author of The Employment Game. 

Corporate HR Scrambles to Halt Publication of “Death by HR”

Nobody gets a job through HR. The purpose of HR is to protect their parent organization against lawsuits for running afoul of the government’s diversity extortion bureaus. HR kills companies by blanketing industry with onerous gender and race labor compliance rules and forcing companies to hire useless HR staff to process the associated paperwork… a tour de force… carefully explains to CEOs how HR poisons their companies and what steps they may take to marginalize this threat… It is time to turn the tide against this madness and Death by HR is an important research tool… All CEOs should read this book. If you are a mere worker drone but care about your company, you should forward an anonymous copy to him.


More reading:

Death by HR: Progressive Dirigisme Takes Over the US
Death by HR: Affirmative Action and Hiring
Death by HR Introduction: HR Pushes Damaging Regulations Into the Enterprise
Election 2016: Clinton vs Trump vs ?
A Clinton Christmas Carol
John Podesta Nagged to Complete Diversity Training
“Death by HR” – High Tech Under Diversity Pressure
Death by HR – Ban the Box, Credit Scores, Current Salaries: The Road to Hiring Blind

Death by HR: Progressive Dirigisme Takes Over the US

Unhappy college grad working at Starbucks

Unhappy college grad working at Starbucks

Labor lawyers and labor economists have historically been supported by labor unions and their cooperating Democratic legislators, who fund labor-leaning academic institutions. As a result, HR degree programs and faculty begin with a bias toward the labor laws and union-style thinking of academics in the field.

Social scientists generally lean left. Industrial Relations (IR), the field of labor-management studies, also leans sharply left.[1] Social science professors are overwhelmingly Democrats.[2] And the faculty in most HR degree programs are similarly biased, which means the typical new graduate from these programs has been indoctrinated to accept the necessity and essential fairness of the labor laws and regulations they will be expected to help enforce in their postings in private industry or government agencies. While we have seen that these new graduates tend to be tempered by exposure to real workplace life and management influence, they retain their political affiliations and continue to lean toward progressive causes and regulations.

Verdant Labs’ survey of political affiliation by occupation based on FEC campaign contribution reports doesn’t separate out HR staffers, but does cover HR execs and similar functions:

HR Executives 66% D, 34% R
Compliance Officers 72% D, 28% R
Administrative Manager 70% D, 30% R[3]

It’s easy to see why people whose careers involve administering government rules would tend to support the party that maintains that even more regulations are useful and necessary, because no one would want to work at something useless or even counterproductive. People who want to work long hours and enjoy the freedom to run risky but successful enterprises aren’t likely to be found in HR degree programs. This political tendency is valuable in cooperating with government overseers, but can cause HR staff to overlook the need for the organization they work for to improve productivity and compete with overseas firms not so hampered.

What is the leftist tendency? It is the view that people’s economic decisions are to be supervised and regulated by the state for the common good. Communists and Socialists took the simplistic extreme form, taking direct ownership of the means of production—factories, farms, and businesses — to be managed by the workers collectively or the larger state. Every country that tried this failed eventually because it turns out self-interested management by owners is vastly more productive, and no collective can decide as well as an owner with direct access to local and market information.

The leftist fallback position — after millions of deaths and multiple failures of true Communist and Socialist states — has been to leave property and the means of production in private hands, but thoroughly regulate and control what the owners may do with it. This leaves at least some incentive for owners to produce and invest in production facilities, but puts many important investment and employment decisions in the hands of a political body — a legislature, or agencies given power to oversee employers. And while some socially-harmful decisions (like pollution of the common air and water, discrimination against black people in employment and accommodation, and tolerance of dangerous working conditions in mines and factories) are thereby prevented, many other decisions are made poorly by collective bodies with little or no knowledge of local conditions. The freedom of both worker and employer to balance their interests and negotiate the most favorable contract is often limited by rigid labor regulations, as when workers who would like to work more hours to make extra money are not allowed to do so.

Union labor views were an offshoot of the socialist ideal, where the management of a business — the employer — is viewed as the enemy of the workers, constantly trying to cheat and enslave them. Enlightened managers, of course, have a much broader interest in the health and welfare of employees, and know that respect for their needs and independence makes for a happier, more productive, and loyal workforce ideal for long-term competitive advantage. But the cartoonish 1930s views of oppressive, wealthy capitalists still live on in many minds.

The labor laws dating from the progressive New Deal era embody the dirigisme (French for top-down direction of the economy) of that era, and are still with us, though many reforms have taken place. The US is now a patchwork of different labor regimes in different industries, as some unionized manufacturing has become less so, while public employee unions have grown in strength and power. Meanwhile, “right to work” laws in some states limited private sector union power and encouraged more foreign investment like the auto plants now dotting the South.

To see the negative results of heavy regulation of labor, one only has to look at parts of Europe that went all-out to protect and micromanage employment by heavily regulating hiring and firing. As an example, look at France — a highly-developed mature economy with heavy regulation of labor and so much legal job protection that employers are reluctant to hire any long-term employees for fear they can never be let go. Youth unemployment hovers around 25%, and the economy has been stagnant for decades. The BBC reports:

France has a lot going for it. It has “an enviable standard of living”, according to the Organisation for Economic Co-operation and Development (OECD). “Inequality is not excessive and the country has come through the [financial] crisis without suffering too heavily,” it says….

But all is not well. Unemployment is high and the government’s finances are weak. “France’s fundamental economic problem,” the OECD says, “is a lack of growth.” The latest figures for economic activity (gross domestic product or GDP) for the first quarter of the year show growth of 0.5%. That’s better than was expected though it’s probably best described as reasonable rather than strong. The longer term picture is more downbeat.

So what is the French economic problem? The most obvious social and economic evidence that something is amiss is unemployment. About three million people are unemployed—10.2% of the workforce. That compares with a figure of 4.3% across the border in Germany. The rate in France is almost the same as the average for the eurozone. That really is nothing to be proud of when you consider that the average reflects some jobless nightmare stories such as Spain and Greece. The French figure is also the second highest among the G7 leading developed economies. Youth unemployment is a particular problem, as it is in a number of other European countries. Almost one in four of those under 25 who want a job don’t have one.

The government’s finances are also in indifferent shape. France is also in the throes of an EU procedure that tries to impose discipline on governments’ finances. The annual budget deficit and the accumulated government debt are both higher than they are supposed to be under the rules…. Behind the problems lies persistently weak economic growth. Gross domestic product per person—a rough and ready indicator of average living standards—grew more slowly between 1995 and 2007 than in any other OECD country (mainly the rich nations) except Italy [which also overregulates labor.]

By the end of last year, economic activity was only 2.8% up from its peak level at the onset of the financial crisis. Why then is France struggling? Many younger people get work on a short-term basis only…. The view of many, including the OECD and the European Commission, is that the labour market is at the heart of the problem, though it’s not the only factor. That reflects a persistent complaint from business: that it’s too expensive to hire workers and to fire them or lay them off if they need to. France is a prime example of what is known as a “dual labour market”: insiders have higher pay, job security and often promotion prospects, [while] others, especially younger people, get only short-term work or none.

The OECD says in its assessment of the French economy: “To reduce the duality of the labour market, the procedures for laying off employees, particularly those on permanent contracts, need to be simplified and shortened…. France ranks among the countries with the strictest legislation of dismissal for open-ended and temporary contracts.” The cost of labour to employers in France also includes social security contributions that are higher than in most other countries. There is a catalogue of other issues, including welfare, that is alleged to discourage people taking low-paid work, and extensive regulation of business. The result, it is argued, is a persistent unemployment problem….

President Hollande has accepted the case for labour reform, and his Labour Minister, Myriam El Khomri, has introduced legislation intended to address some of the things that business voices say make it too expensive to take on new workers. The reforms would: lower existing high barriers to laying off staff; allow some employees to work more—far more—than the current working week, which is capped at 35 hours; give firms greater powers to cut working hours and reduce pay. That has met protest and the provisions have been amended in response. One supporter of reform said it was turning into a “veritable catastrophe”.[4]

Compared to France, the US has a free and dynamic labor economy,[5] but the signs of the Eurodisease are starting to show — an inflexible labor market with few professional openings for young people. The common joke about children returning to live in their parent’s basements is becoming a way of life for many. Increasingly, new college graduates are forced to take low-paying, unskilled jobs in service industries when they find work at all:

Recent college graduates are ending up in more low-wage and part-time positions as it’s become harder to find education-level appropriate jobs, according to a January study by the Federal Reserve Bank of New York.

Jeanina Jenkins, a 20-year-old high-school graduate from St. Louis, is stuck in a $7.82-an-hour part-time job at McDonald’s Corp. that she calls a “last resort” because nobody would offer her anything better.

Stephen O’Malley, 26, a West Virginia University graduate, wants to put his history degree to use teaching high school. What he’s found instead is a bartender’s job in his home town of Manasquan, New Jersey.

Jenkins and O’Malley are at opposite ends of a dynamic that is pushing those with college degrees down into competition with high-school graduates for low-wage jobs that don’t require college. As this competition has intensified during and after the recession, it’s meant relatively higher unemployment, declining labor market participation and lower wages for those with less education….

“The underemployment of college graduates affects lesser educated parts of the labor force,” said economist Richard Vedder, director of the Center for College Affordability and Productivity, a not-for-profit research organization in Washington.“Those with high-school diplomas that normally would have no problem getting jobs as bartenders or taxi drivers are sometimes kept from getting the jobs by people with college diplomas,” said Vedder…

The share of Americans ages 22 to 27 with at least a bachelor’s degree in jobs that don’t require that level of education was 44 percent in 2012, up from 34 percent in 2001, the study found. The recent rise in underemployment for college graduates represents a return to the levels of the early 1990s, according to the New York Fed study. The rate rose to 46 percent during the 1990-1991 recession, then declined during the economic expansion that followed as employers hired new graduates to keep pace with technological advances….

“College graduates might not be in a job that requires a college degree, but they’re more likely to have a job,” she said. Less-educated young adults are then more likely to drop out of the labor market. The labor participation rate for those ages 25 to 34 with just a high-school diploma fell four percentage points to 77.7 percent in 2013 from 2007. For those with a college degree and above, the rate dropped less than 1 percentage point, to 87.7 percent.

“At the complete bottom, we see people picking up the worst types of jobs or completely dropping out,” Beaudry said. The share of young adults 20 to 24 years old neither in school nor working climbed to 19.4 percent in 2010 from 17.2 percent in 2006. For those ages 25 to 29, it rose to 21.3 percent from 20 percent in that period, according to a Federal Reserve Bank of Boston report in December.

Those with the least education have trouble securing even the lowest-paid jobs. Isabelle Samain looked for work in Washington from April until September of last year. As prospective employers continually passed over her applications, the 40-year-old mother of two from Cameroon realized she was missing out because she lacked a U.S. high-school diploma. “I don’t even remember how many places I applied,” Samain said of the “frustrating and discouraging” search. Samain passed the General Educational Development test in December and recently started working at Au Bon Pain in Washington for $8.50 an hour for 36 hours a week.

A year-long survey ending in July 2012 of 500,000 Americans ages 19 to 29 showed that 63 percent of those fully employed had a bachelor’s degree, and their most common jobs were merchandise displayers, clothing-store and cellular phone sales representatives, according to Seattle-based PayScale Inc., which provides compensation information….

The share of recent college graduates in “good non-college jobs,” those with higher wage-growth potential, such as dental hygienists, has declined since 2000, according to the New York Fed study. Meanwhile, the portion has grown for those in low-wage jobs paying an average wage of below $25,000, including food servers and bartenders.[6]

The Party of Government perpetually campaigns on “doing something” about the problems of the little people. Meanwhile, the agencies of the administrative state, like all bureaucracies, keep busy and justify their growth by proposing additional and extended regulations. When regulations address a real problem—some externality requiring private parties to be restrained from damaging a common good or harming each other through force or fraud—there is an optimal point where the additional costs of more regulation are greater than the likely benefit. In labor regulation, the pols and regulators rarely consider the collateral damage they are doing by narrowing the freedom of contract—labor laws are always behind the curve of technology and custom, impeding creative solutions that both employer and employee would benefit from.

This “it’s always good to do more” mindset results in laws that are simply propaganda exercises, like the Lily Ledbetter Fair Pay Act of 2009, which extended the statute of limitations for equal pay suits to make it a bit easier to file suit against ongoing patterns of pay discrimination against women.[7] Unequal pay for women was actually outlawed in 1963 by the Equal Pay Act, but Democratic politicians in pursuit of women’s votes continue to promote the “pay gap” myth and then offer to “do something” about this imaginary unfairness. Each time they pass a new law or regulation, one might expect improvement in the unfair situation they claim to be addressing, yet the problem remains for the next election, when they will promise to fix it again.

The latest example of harming many by ratcheting up the regulations is the Obama administration’s enlargement of the number of employees covered by the Dept. of Labor’s overtime regulations under the Fair Labor Standards Act (FLSA), increasing the salary limit for exemption from $23,660 to $47,476 per year, which vastly increases the number of workers covered. At first glance, this sounds good for those employees — time-and-a-half for overtime, baby! But that ignores the likely response of managements to the new rules:

If an employer could pay Jim, a frontline manager at a retail store, for a 50-hour workweek—40 hours at his regular hourly rate and 10 hours at time-and-a-half—or, instead, pay Jim and Jane 25 hours each at straight rates, what would the employer do?

Unless the business is a philanthropy, or unless Jim exhibits pure brilliance in directing rank-and-file employees to stock shelves, the employer is going to choose lower labor costs over higher ones.

This is precisely the question raised by, and the likely effect caused by, new overtime rules under the Fair Labor Standards Act (“FLSA”). Given the basic economics of the workplace, the new rule—which raises the salary threshold under which an employee is entitled to overtime—is just as likely to create less work for individual employees as it is to increase the amount of overtime American employees collectively earn.[8]

The required estimate of costs of the new regulation was lowballed, pulled out of thin air by the DoL under orders from the union-friendly administration to further cripple nonunion businesses by increasing their costs. Independent calculations of the cost were more realistic:

How reliable are projections from the Department of Labor about the cost of the President’s ambitious new extension of overtime entitlements to salaried workers ….? The “administration refuses to allow others to check its math. The Florida Department of Economic Opportunity, the state agency that I lead, in August requested the specific data and methodology the Labor Department used to calculate its estimates. Our request was denied.” So the department went ahead with its own analysis. “The rule will supposedly cost $2 billion the first year. Our math shows $1.7 billion for Florida alone.”[9]

Even House Democrats found the new rules damaging:

It’s not clear whether the Obama administration’s forthcoming edict on overtime will apply to legislative staffers, but House Democratic leadership decided it would be prudent for their members to at least gesture toward the spirit of the controversial rule by preparing for compliance. Now “the rule is creating administrative headaches” and more:

“We don’t have a set-hour kind of situation here; some kids work 12, 14, 16 hours a day, weekends, and I feel terrible that I cannot afford to give raises to the staff,” Rep. Alcee Hastings (D-Fla.) told Bloomberg BNA Feb. 11.

With $320,000 slashed from members’ representational allowances (MRAs) over the past four years, “I don’t see how we could pay overtime” for the “17 or 18 people that each of us is allowed to have—that’s problematic for me,” added Hastings, a senior member of the House Rules Committee.

Some members fear that an overtime mandate will result in having to send staffers home at 5 p.m., leaving phones unanswered and impairing constituent service. “Most members are of the sentiment that it’s impractical to be paying overtime,” said former Virginia Democratic Rep. Jim Moran, now a lobbyist, who suggests that members choose to close one of their district offices or reduce constituent correspondence to adjust to a smaller staff number.

If only there were some way for the U.S. Congress to influence federal labor law![10]


[1] “The data suggests that the ratio of Democratic-to-Republican voter registration among participants in IR is roughly 10 to one. I find a similar ratio when looking at those who have made contributions to Democratic and Republican candidates for office. I also show that Democratic lopsidedness at the three mainstream IR journals becomes more extreme at the higher stations (officers and editors, as opposed to ordinary members and authors). Also, I analyze the content of the 539 articles for union support and regulation support; the mainstream IR journals are overwhelmingly pro-union and pro-regulation.” From article “The Left Orientation of Industrial Relations,” by Mitchell Langbert, Econ Journal Watch, Vol 13, No. 1, Jan. 2016. https://econjwatch.org/articles/the-left-orientation-of-industrial-relations
[2] “Daniel Klein, one of the authors [of the study] and a professor of economics at George Mason University, said that it demonstrated ‘solidly’ that most social science professors are ‘leftist and statist, and that they have a narrow tent.’” From “Social Scientists Lean to the Left, Study Says,” by Scott Jaschik, Inside Higher Ed, Dec. 21, 2005. https://www.insidehighered.com/news/2005/12/21/politics. Also see: “Economists’ policy views and voting,” Daniel B. Klein and Charlotta Stern, Public Choice 126:331-342, 6 Dec 2004. http://econfaculty.gmu.edu/klein/PdfPapers/KS_PublCh06.pdf
[3] “Democratic vs. Republican occupations,” Verdant Labs chart, 2016. Data source: FEC campaign contribution data. http://verdantlabs.com/politics_of_professions/
[4] “What is the French economic problem?” by Andrew Walker, BBC World Service, 29 April 2016. http://www.bbc.com/news/business-36152571
[5] French leftists sniff at the US and its Anglospheric cousins because the US economic model (the “Anglo-Saxon model”) is more liberal—less protectionist and dirigiste. The cultural backdrop is the French intellectual distaste for crude money-making and égoïste neglect of collective opinion. See https://en.wikipedia.org/wiki/Anglo-Saxon_model
[6] “Low-Wage Jobs Displace Less Educated,” by Katherine Peralta, Bloomberg, March 12, 2014. http://www.bloomberg.com/news/articles/2014-03-06/college-grads-taking-low-wage-jobs-displace-less-educated
[7] https://en.wikipedia.org/wiki/Lilly_Ledbetter_Fair_Pay_Act_of_2009
[8] “Deep Impact: New Overtime Rules Will Change Work, Not Overtime Pay,” by Mark A. Konkel and Barbara Hoey, Inside Counsel, August 31, 2016. http://www.insidecounsel.com/2016/08/31/deep-impact-new-overtime-rules-will-change-work-no
[9] “Lowballing the cost of junior-manager overtime,” by Walter Olson, Overlawyered, November 19, 2015. http://www.overlawyered.com/2015/11/lowballing-the-cost-of-junior-manager-overtime/
[10] “Overtime Brings House Democrats Woe,” by Walter Olson, Cato at Liberty, April 13, 2016. http://www.cato.org/blog/overtime-brings-house-democrats-woe


Death by HR: How Affirmative Action Cripples OrganizationsDeath by HR: How Affirmative Action Cripples Organizations

[From Death by HR: How Affirmative Action Cripples Organizations,  available now in Kindle and trade paperback.]

The first review is in: by Elmer T. Jones, author of The Employment Game. 

Corporate HR Scrambles to Halt Publication of “Death by HR”

Nobody gets a job through HR. The purpose of HR is to protect their parent organization against lawsuits for running afoul of the government’s diversity extortion bureaus. HR kills companies by blanketing industry with onerous gender and race labor compliance rules and forcing companies to hire useless HR staff to process the associated paperwork… a tour de force… carefully explains to CEOs how HR poisons their companies and what steps they may take to marginalize this threat… It is time to turn the tide against this madness, and Death by HR is an important research tool… All CEOs should read this book. If you are a mere worker drone but care about your company, you should forward an anonymous copy to him.

 


More reading on other topics:

Jane Jacobs’ Monstrous Hybrids: Guardians vs Commerce
The Great Progressive Stagnation vs. Dynamism
Death by HR: How Affirmative Action is Crippling America
Death by HR: The End of Merit in Civil Service
Corrupt Feedback Loops: Public Employee Unions
Death by HR: History and Practice of Affirmative Action and the EEOC
Civil Service: Woodrow Wilson’s Progressive Dream
Bootleggers and Baptists
Corrupt Feedback Loops: Justice Dept. Extortion
Corrupt Feedback Loops, Goldman Sachs: More Justice Dept. Extortion
Death by HR: The Birth and Evolution of the HR Department
Death by HR: The Simple Model of Project Labor
Levellers and Redistributionists: The Feudal Underpinnings of Socialism
Sons of Liberty vs. National Front
Trump World: Looking Backward
Minimum Wage: The Parable of the Ladder
Selective Outrage
Culture Wars: Co-Existence Through Limited Government
Social Justice Warriors, Jihadists, and Neo-Nazis: Constructed Identities
Tuitions Inflated, Product Degraded, Student Debts Unsustainable
The Morality of Glamour

On Affirmative Action and Social Policy:

Affirmative Action: Chinese, Indian-Origin Citizens in Malaysia Oppressed
Affirmative Action: Caste Reservation in India
Diversity Hires: Pressure on High Tech<a
Title IX Totalitarianism is Gender-Neutral
Public Schools in Poor Districts: For Control Not Education
Real-Life “Hunger Games”: Soft Oppression Destroys the Poor
The Social Decay of Black Neighborhoods (And Yours!)
Child Welfare Ideas: Every Child Gets a Government Guardian!
“Income Inequality” Propaganda is Just Disguised Materialism

The greatest hits from SubstrateWars.com (Science Fiction topics):

Fear is the Mindkiller
Mirror Neurons and Irene Gallo
YA Dystopias vs Heinlein et al: Social Justice Warriors Strike Again
Selective Outrage
Sons of Liberty vs. National Front
“Tomorrowland”: Tragic Misfire
The Death of “Wired”: Hugo Awards Edition
Hugos, Sad Puppies 3, and Direct Knowledge
Selective Outrage and Angry Tribes
Men of Honor vs Victim Culture
SFF, Hugos, Curating the Best
“Why Aren’t There More Women Futurists?”
Science Fiction Fandom and SJW warfare

More reading on the military:

US Military: From No Standing Armies to Permanent Global Power
US Military: The Desegration Experience
The VA Scandals: Death by Bureaucracy

Death by HR Introduction: HR Pushes Damaging Regulations Into the Enterprise

Death by HR: How Affirmative Action Cripples Organizations

Death by HR: How Affirmative Action Cripples Organizations

[The Introduction from Death by HR: How Affirmative Action Cripples Organizations, available now for Kindle and in trade paperback.]

Introduction

This book is about the new Age of Incompetence, with brain-dead, unaccountable employees holding sinecures at the heart of our government agencies and regulated institutions like banks and hospitals, protected by affirmative action and union policies. The rot is spreading as pressure from state and federal regulation of companies has increased, empowering an internal compliance bureaucracy — Human Resources (HR) — that has devalued the best job candidates and employees and promoted affirmative action and diversity over team productivity.

The result has been ever-more-costly failures and a steep decline in organizational performance. From the mortgage meltdown that brought down the world’s economy in 2008, to the disastrous launch of the healthcare.gov website for Obamacare, major segments of business and government in the US have grown more expensive and less competent over the past few decades. Billions of dollars of waste in government contracts for IT projects, boondoggle weapons systems, and deadly service failures at the VA are in the news every day. Public schools are widely seen as mediocre, and in the poorest urban districts they are failing to provide a decent education for the students who need good schools the most to make up for bad family backgrounds. Costs for regulated services like schools, colleges, medical insurance, drugs, courts, prisons, and infrastructure like roads and bridges rise far faster than inflation, while time to complete major projects stretches out to decades, and many fail completely and are cancelled after billions have been spent. And the rot is spreading as government pushes businesses to adopt similar employment policies, with HR enforcing government mandates that compromise competitiveness and give overseas companies the advantage.

This book will trace the factors that have hobbled growth and damaged organizational competence. Government regulation has led to HR departments that actively sabotage the hiring of the best candidates for jobs, with by-the-book mediocrities placed in positions of responsibility.

Silicon Valley and the tech industries are the next targets. If you’re a manager at a tech company, I’ll suggest some ways to protect your people from HR and its emphasis on credentials and affirmative action (AA) over the best fit for a position. Corporate leaders need to be sure their HR departments are managed to prevent infiltration by staff more interested in correct politics than winning products. And I’ll show why appeasement of diversity activists is a dangerous strategy that may make your organization a target for further extortionate demands….

Affirmative action policies have placed mediocrities at major decision points in most large companies, government agencies, and highly-regulated institutions like schools and hospitals. A small percentage of deadwood can be routed around, but over time feedback effects from the generalized lack of accountability and lowered standards for performance cripple the institution. This is the cause of the failure and extreme cost overruns of almost all large government projects and a tolerance for incompetence so long as policy manuals are followed to the letter. This effect is largest in government and public education, but also visible in larger companies where HR departments are coming to be staffed by progressives who believe in removing non-progressive thoughts and people from the workplace. In high tech, women and minorities dominate HR in part because companies wanted to balance their male-and-Asian-heavy engineering staff to make their numbers look better, but now are just realizing they’ve created an internal enemy to product quality and excellence in staffing engineering teams. (A corporate manager comments: “How do you know HR is lying? Their lips are moving…”)

This book will focus on the situation in the US, which was until recently more resistant to the bureaucratic disease and thus had a healthier economy and a more dynamic labor market than Europe. The onset of top-down sclerosis by Federal regulation and micromanagement has reduced US growth to the same stagnant levels seen in Europe, for much the same reason: educated by public schools to believe they need permission to do anything, young people stop trying to do anything, and wait for someone to help them. The increasing numbers of untouchable diversity hires in positions of responsibility has inhibited accountability, and the inability to fire employees after even the most egregious malfeasance has spread from civil service and union shops into major corporations —s ince some cannot be held accountable for incompetence, no one is; and the continuing presence of employees who coworkers know are shirkers, incompetents, or even criminals reduces the morale of those who are good at their jobs and work hard. The dysfunction varies by industry and company, with the worst-hit in heavily-regulated sectors like banking, education, and healthcare, where government either controls every element of the business or pays for most of the product. Sectors which until recently were relatively free of deadwood, like high tech, are now under attack by the diversity activists, who want more hiring of less qualified people to make high tech workforces more representative — which would mean discriminating against better candidates who are white, Asian, Indian, male, etc.

This book will also look at a few other countries that have tried various forms of affirmative action policies to demonstrate that while these places are culturally very different, the divisive and socially damaging long-term effects of AA preferences are visible in every country where it has been in place for longer than one generation.

Affirmative action — which substitutes the lower standard of “good enough” for “best” in hiring new employees, setting the bar low enough so that affirmative action hires can meet it instead of seeking out the most qualified candidate — is not the only labor regulation crippling organizational productivity. State and federal regulation and micromanagement of economic activity continues to increase, complicating and delaying every public and many private projects. Whole sectors of the economy are weighed down by regulation; new medical devices and drugs cost $billions to get through corrupt and scientifically-antiquated FDA studies and approvals processes, which results in high prices for new medical technology. Routine services like dental cleanings and hair braiding are illegal in many states unless done under supervision of a cartel of state-certified practitioners; four states even outlaw residential decorating services unless licensed. Hazards of toppling armoires aside, the state is easily captured by motivated business groups to outlaw new competition for their business, and under the pretense of protecting consumers, allowing professional cartels to charge much more for services.

Labor laws are similarly gamed by politically-influential unions and power-seeking bureaucrats. Minimum wage laws outlaw lower wages for unproven or new workers, and restrictions on firing as in Europe make it less likely companies will take a chance on hiring a full-time worker rather than a temp or contractor. The long-term result of Euro-style labor protection is Euro-style high unemployment, especially in young, inexperienced workers, who are thereby kept from ever gaining the experience that would make them valuable enough to hire despite the additional rules and costs imposed by the laws. People accept that education costs money and that students may be paid less for internships or even pay outright for classes, but forget that most occupational skills are acquired in the workplace, in the first years of employment. By outlawing lower wages and at-will employment, labor laws are keeping young people from important learning experiences and ruining their chance to start on a career ladder.

Until the Roosevelt administration and the New Deal, the Supreme Court had held back many attempts to regulate private business, ruling them unconstitutional overreaches. But after Roosevelt threatened to pack the court with new justices who would approve his regulatory agenda, the Supreme Court bowed to his wishes. In a series of cases, the newly Progressive-leaning Court expanded the Commerce Clause to allow federal regulation of almost all economic activity. In Wickard v. Filburn, 317 U.S. 111 (1942), the court ruled that a farmer could be fined for growing wheat on his own land for his own animals’ consumption because he would otherwise have had to purchase wheat in the market, which a 1938 agricultural control law regulated. After this, the court rarely found any Federal regulation of contracts or commerce to be unconstitutional, despite the clear intent of the framers that such Federal power over commerce was intended to prevent states from creating trade barriers and discriminating against the products of other US states.

As a result, laws and regulations on commerce of all kinds — and labor specifically — have expanded, and the staffing levels of Human Resources departments and administrations at colleges and hospitals have ballooned to meet bureaucratic requirements. Federal fingers are now in every pie, wasting resources and deadening initiative, since a lawsuit or negative attention from the NLRB, EEOC, Dept. of Education, HHS, EPA, and other enforcement agencies can destroy or damage a company or institution. HR and administrative staff approve of the progressive control agenda—which gives them power and status—and when free to drift leftward serve as an internal fifth column dedicated to enforcing progressive standards on their own organization and its workforce.

Companies serving an international market find themselves battling foreign companies who don’t have as many burdens, especially in Asia. The US advantage of a productive workforce and innovative technology is gradually worn down by the time and money spent fighting bureaucrats. Mediocre managements take current rewards for themselves but ignore the future, eventually failing. Foreign companies take over markets, one by one, as US companies dragged down by unions and mediocre key employees lose revenues and eventually abandon markets.

Governments have expanded the areas they control while the Civil Service, union, and affirmative action rules imposed on their workforces have reduced their effectiveness in their most critical functions. From deaths caused by bureaucratic malfeasance at the VA to killer cops rarely punished and kept on the payroll by the efforts of police unions, this lack of accountability makes it difficult to remove incompetent or criminal public employees and makes it impossible for even motivated elected officials to reform public services. The rising debt and costs for every public project mean failing services, rampant injustice, and decaying infrastructure are not being addressed. As a result, US competitiveness is declining vs. countries with better-managed public services. And public anger and cynicism as the years pass and each new group of elected officials fails to fix any of the problems they promised to fix is leading to a dangerous disregard for the law and a desire for a dictator who will sweep aside the checks and balances of a Republic.

Because there are so many examples of malfeasance and incompetence in government’s control of commerce and labor regulations, I was forced to leave most of that material for the next book, which will focus on government. Entire books have been written about the costly failures of the Drug War, public schools, affirmative action, and police militarization. This book will focus on the creeping spread of this atmosphere of consequence-free failure. The hubris of central planners and their capture by special interests, acting in concert with well-meaning but naive do-gooders who think they can vote their way to a better world, has brought us the diseases of socialism by taking away authority and accountability that let businesses succeed or fail. The pleasant-sounding ideal of equality of outcome — which killed hundreds of millions of people as the activating principle of Marxism-Communism — is actually the enemy of individual freedom, accountability, and achievement. The decline of excellence as a primary goal leading to profit and growth has not come because people like failure and mediocrity, but because they were sold a fairy tale about how government could make everything fairer and make everyone happy through the workings of laws and regulations. The result has been a lot more unhappiness and civil strife as the unintended consequences have swamped whatever good was intended. And the level of hypocrisy has risen as politicians promote the message that everyone is a victim and that someone else — “the 1%,” corporations, Republicans, foreigners, Muslims, blacks, the Koch Brothers, the Jews, whoever works as a scapegoat—is responsible for keeping them down.

High tech, one sector where the US led the world and generated immense new wealth, has now been targeted as the next area to be regulated. Activists and demagogues are attracted by money, and with more than half of the US private economy now controlled by government regulators, it was inevitable the parasites would look toward the remaining healthy sectors for their next fix. Calls for diversity quotas in tech company workforces, video game characters, and open-source software projects are early warning signs. HR departments in most tech companies serve as the political commissars of regulation, and HR departments in tech are staffed by lower-paid employees who have little understanding of the technology but a lot of interest in screening out even the best prospective employees who don’t fit the narrow diversity mold. Managers who want the best teams and the fastest, coolest products are resisting these HR apparatchiks, and I’ll show what you can do about it if you work in tech.

The next battlefield after high tech is discretion in hiring — which the activists believe must be limited to force employers to hire any candidate “qualified” for a job as soon as they apply. Only a few radicals are proposing this kind of blind hiring now, but continuing successes in getting firms to bow to their diversity demands will result in a list of new demands. Seattle has already passed an ordinance requiring landlords to rent apartments to the first applicant who qualifies — next what counts as qualified will come under their control, and government-sponsored Section 8 and protected class tenants will be deemed qualified no matter what their credit reports and criminal records show. And similar movements in hiring — supposedly to prevent discrimination by eliminating management choice of who to employ — are coming soon.

There are many people working hard in HR to promote the interests of their organization, but their efforts are often blunted by the prevailing HR culture that substitutes buzzwords and feel-good social goals for promotion of productivity and excellence:

…Most HR organizations have ghettoized themselves literally to the brink of obsolescence. They are competent at the administrivia of pay, benefits, and retirement, but companies increasingly are farming those functions out to contractors who can handle such routine tasks at lower expense. What’s left is the more important strategic role of raising the reputational and intellectual capital of the company — but HR is, it turns out, uniquely unsuited for that. Here’s why:

HR people aren’t the sharpest tacks in the box. We’ll be blunt: If you are an ambitious young thing newly graduated from a top college or B-school with your eye on a rewarding career in business, your first instinct is not to join the human-resources dance. (At the University of Michigan’s Ross School of Business, which arguably boasts the nation’s top faculty for organizational issues, just 1.2% of 2004 grads did so.) Says a management professor at one leading school: “The best and the brightest don’t go into HR.”

Who does? Intelligent people, sometimes—but not businesspeople. “HR doesn’t tend to hire a lot of independent thinkers or people who stand up as moral compasses,” says Garold L. Markle, a longtime human-resources executive at Exxon and Shell Offshore who now runs his own consultancy. Some are exiles from the corporate mainstream: They’ve fared poorly in meatier roles—but not poorly enough to be fired. For them, and for their employers, HR represents a relatively low-risk parking spot.

Others enter the field by choice and with the best of intentions, but for the wrong reasons. They like working with people, and they want to be helpful—noble motives that thoroughly tick off some HR thinkers. “When people have come to me and said, ‘I want to work with people,’ I say, ‘Good, go be a social worker,'” says Arnold Kanarick, who has headed human resources at the Limited and, until recently, at Bear Stearns. “HR isn’t about being a do-gooder. It’s about how do you get the best and brightest people and raise the value of the firm.”[1]


[1] “Why We Hate HR: In a knowledge economy, companies with the best talent win. And finding, nurturing, and developing that talent should be one of the most important tasks in a corporation. So why does human resources do such a bad job—and how can we fix it?” Fast Company, August 1, 2005. http://www.fastcompany.com/53319/why-we-hate-hr


Death by HR: How Affirmative Action Cripples Organizations

Death by HR: How Affirmative Action Cripples Organizations

[Death by HR: How Affirmative Action Cripples Organizations, in Kindle and trade paperback.]

The first review is in: by Elmer T. Jones, author of The Employment Game. 

Corporate HR Scrambles to Halt Publication of “Death by HR”

Nobody gets a job through HR. The purpose of HR is to protect their parent organization against lawsuits for running afoul of the government’s diversity extortion bureaus. HR kills companies by blanketing industry with onerous gender and race labor compliance rules and forcing companies to hire useless HR staff to process the associated paperwork… a tour de force… carefully explains to CEOs how HR poisons their companies and what steps they may take to marginalize this threat…. It is time to turn the tide against this madness and Death by HR is an important research tool…  All CEOs should read this book. If you are a mere worker drone but care about your company, you should forward an anonymous copy to him.


More reading:

A Clinton Christmas Carol
“High Tech Under Diversity Pressure
Ban the Box, Credit Scores, Current Salaries: The Road to Hiring Blind
HireVue, Video Interviews, and AI Job Searches
“Death by HR” – Diversity Programs Don’t Work