Holloween Story: Hollow Corporation Christmas

Between the conception
And the creation
Between the emotion
And the response
Falls the Shadow

Donald Rumsfeld did not invent the concept of the Hollow Military out of thin air. It came, as Naomi Klein claims, from the Hollow Corporation of 1990s America. Companies that had previously manufactured their own products and "maintained large, stable workforces" in America went beyond moving factories to the South (the 1970s) or to Mexico and Asia (1980s). They stopped owning and maintaining factories at all. This became known as the "Nike model: "produce your products through an intricate web of contractors and subcontractors, and pour your resources into design and marketing." The other Hollow model was based on Microsoft: a small, tight workforce concentrating on "core competencies," while everything else ("from running the mailroom to writing code") is outsourced to temp workers. [Klein, 284-5.)

Rumsfeld came from this business background, and came to the Pentagon (Klein quoting Fortune magazine) "to oversee the same sort of restructuring that he orchestrated so well in the corporate world." [Klein, 285.]

By now--by 2007--the Hollow Corporation is a global fact. Another large factor in spreading it in the consumer goods area has been the spectacular rise of Wal-Mart, which as several books show (for instance, The Wal-Mart Effect by Charles Fishman ) has transformed the companies that supply the products it sells. Because Wal-Mart insists on huge quantities at low cost, companies have been forced to find the very cheapest materials and labor. In the vast majority of cases, they can't find labor cheap enough anywhere in America. They must subcontract to China.

As Wal-Mart grew to become "both the largest company in the world, and the largest company in the history of the world" (Fishman), so did the number of products supplied from China, so that as one scholar told Frontline, "China and Wal-Mart are a joint venture." And most big U.S. corporations that sell products must sell a lot of them through Wal-Mart, so they restructure to please Wal-Mart, and so they become part of that joint venture.

But just as a scandal involving Blackwater alerted many to the Hollow Military, the current scandal over the safety of products manufactured in China is alerting the public to just how much of what we buy is made (in whole or in part) in China, and how little is made by the American company whose name is on the label--including traditional and trusted names such as Fisher-Price, Mattel and General Foods.

The news came fast and furious, in a bewildering array of products, from deadly pet food and tainted toothpaste to leaded toys. Close to 20% of China's products, it turned out, did not meet its own health and safety standards. At first, Americans became extremely wary of Chinese products, especially food products. But then it became clearer that avoiding processed foods, vitamins and health products that don't have some ingredients made in China (including ascorbic acid in Vitamin C) is virtually impossible.

Then such trusted American companies as General Mills announced they would be doing more testing (while quietly admitting they hadn't been doing much before, or testing additives at all.) Whether the public was reassured, or simply in despair and denial, this storm passed. But it was a teachable moment in the extent of the Hollow Corporation.

For there are no Colgate Toothpaste factories in Anytown USA, not Anymore. (When U.S. Customs seized a supply of toxic Colgate, it was marked "Made in China" and "Made in India.) There are no Mattel or Fisher-Price toy factories with happy American elves. There is just a board of directors and a flotilla of managers coordinating subcontractors, including the well-paid ones (advertising and marketing agencies) and the very poorly paid ones (the workers who actually make the products.) That's American Know-How in 2007. Welcome to Hollow-een.

Long-term, doesn't it concern anyone that the skills and infrastructure to actually make things are disappearing from America, and that if anything happens to short-circuit the supply line from Asia, this nation may become a pitiful helpless giant?

But in the short-term, Christmas approaches, and problems with toys made in China continue. Just last week, Mattel recalled another 38,000 toys imported from China by Fisher-Price, as part of a larger recall of 665,000 toys.

China has rightly pointed out that checking for the health and safety of products is the responsibility of the importing country. But our Hollow Government doesn't have the expert personnel to do it anymore. Our Hollow Corporations would rather not spend the money on it, preferring to concentrate on marketing and advertising. They import from China because the products are made there as cheaply as possible--and they are shocked, shocked that corners are cut affecting health and safety.

And even if the U.S. government had the capability to protect the consumer, just how far they could afford to push China is a real question, since China owns so much U.S. government debt--in effect, owns so much of the Hollow United States and its future.

This leaves a real conundrum for many Americans this Christmas, especially for the millions whose hold on the middle class is tenuous: without the good wages for actually making things that these corporations used to pay, they work several lower-paying jobs to make ends meet. Paying for more expensive toys and gifts for Christmas from smaller exclusive U.S. firms is not a good option, assuming such toys and gifts can be found.

For those with sufficient discretionary income, there are continuing ethical problems of buying from companies dependent on sweatshop labor. Recently another trusted brand--The Gap-- has been tarnished by evidence of child labor sweatshop abuse exposed by journalists, forcing them to drop a subcontractor in India: they are shocked, shocked that 10 year olds were virtually enslaved by a lowest-bid contractor. The Gap reassures American consumers that the clothes they sell for Christmas will not include any tainted by this company. There are many roads from the Hollow Corporation and the Hollow Government to a hollow Christmas.

So as Americans cross their fingers and shop for Christmas, they may know that in the companies they once trusted for quality, and in the government they depend on to protect them, there is no there there. They are all hollow.

The eyes are not here
There are no eyes here
In this valley of dying stars
In this hollow valley
This broken jaw of our lost kingdoms

This is the way the world ends
This is the way the world ends
This is the way the world ends
Not with a bang but a whimper.