Atlas’ Jeff Allen Describes Namaste Solar
Posted Under: Federal Government, Stimulus 2009
On Tuesday, when Barack Obama signed the economic simulation package into law, he visited with a local company that installs solar panels in Colorado. He was introduced at the signing ceremony in Denver by the CEO of the company, Namaste Solar Electric. On the company’s website, they claim that they were chosen for the event because of their “excellent reputation and company story.”
So, what’s the story, you ask?
According to Namaste’s website and a report by CNN, the story is one taken directly from the library of Ayn Rand.
Namaste has several policies that, to some, would appear to be noble and progressive. Each employee gets the same pay, regardless of their position. Every major company decision is decided by the entire staff. All employees get six paid weeks of vacation every year. Environmental issues are the key factor in business decisions, not the market.
These policies reflect some of the same philosophies that applied to the Twentieth Century Motor Company in the early half of the 1900’s. In that company, all of the workers voted to enact policies that were based not on performance, but on how the workplace could be fair and cater to the needs of everyone equally. The object of the business was not to provide a product in demand and generate a profit, but to provide each worker with their “needs” – and the workers voted on how that was to be accomplished.
In the end, the Twentieth Century Motor Company failed and closed its doors because the workers with the best abilities realized that as they worked harder, more was expected from them and more people became dependent on them – and it was all done through the voting process. Eventually, they had to hide their abilities so as not to become slaves to the others. When everyone stopped working to the best of their abilities, the company fell apart.
The values of Namaste Solar sound eerily analogous to the Twentieth Century Motor Company as described by former employee, Jeff Allen. Of Course, Allen and the motor company do not exist because they are references to fictional creations from the novel Atlas Shrugged.
The similarity between these two companies lies within the basic philosophy of each. The decisions of the companies were/are left to the democratic process of the entire work force. With Namaste, the employees have a say – a vote – in every business decision. At Twentieth Century, it was this kind of vote that led to its downfall. The reason it destroyed itself was because each individual was able to vote to take the earnings of others, and reduce their own workload. Perhaps by paying everyone the same wages, Namaste has eliminated such problems. But the underlying philosophy is still the ultimate error.
What makes this company’s story amazing is the simple fact that it is not run like a business and despite the vast amount of taxpayer funded aid to help it (federal, state, and local), the CEO was ready to lay off employees before the signing of the “stimulus” bill. What makes Obama’s choice of using this company as a prop for his so-called economic recovery package amazing is the fact that it is a failing business even with taxpayer subsidies, it’s run by people who apparently follow Marxist philosophies, and the Obama administration either knew it or they were completely uninformed.
Putting side any notions that they were uninformed, since the information about the company was readily available, the decision would appear to be consistent with the administration’s own ideas of government. It’s not the face that they’d like the public to see and they try to do everything they can to hide it from plain sight, but it only takes a basic knowledge of government and politics to see right through their facade. Aside from the dupes who have not figured out the agenda of the statists in this country, it would seem that the decision to use Namaste Solar as the company of choice would have been understood by the administration to raise the eyebrows of their opposition.
If indeed that is the case, why would the administration use a failing, eco-Marxist company that survives off of confiscated tax dollars to help highlight the signing event and the intent of the bill? That is the question that may be most unsettling – unless you already know the answer and have known it for quite some time, just as Ayn Rand did when she told the story of the Twentieth Century Motor Company over fifty years ago.
What was once only thought to be fictional or rhetorical as it applied to our economy and government is now happening with the support of the highest powers in our country. And very few have even noticed.
Reader Comments
Actually, Namaste Solar has been profitable every quarter for the last 2.5 years, not a failing business. And they decided to keep people employed and make other business decisions (reducing costs in other ways) rather than layoffs because of their commitment to people for the long term. Namaste is a business, but not publicly owned, so there is no fiduciary responsiblity to maximize profits at all costs (people, the environment and one’s integrity are often first to go if the stockholders return is your guiding force). Namaste uses a concept known as “multiple bottom lines” which means that profit is not the sole guiding force. Environmental decisions, which affect each and every one of us, should and do play large role in company decisionmaking. And most of that way of thinking actually saves money, cuts costs, and raises the profit level instead of depleting it.
And while it is true that the solar industry (at this time) does rely on subsidies, the oil/gas/coal and traditional energy industries do as well. Every time their subsidies are up for review, despite the record profits that they claim, they will not let go of the money and they spend BILLIONS in marketing and lobbyists making sure that their taxpayer dollars are secure. My suggestion would be, if we really desired a level playing field, would be to remove ALL subsidies for energy projects and see who shakes out. The solar industry, from manufacturers to installers are constantly working to cut costs so that the taxpayer will not have to subsidize them forever. Oil/gas/coal etc. are certainly NOT doing this.
Like most bloggers, you seem to have fallen victim to the “Logic of the Playground” which often gets a few of the raw facts right, but most often gets the full truth wrong, because you are making assumptions based on little real information. Did you actually speak to anyone from Namaste, take a tour of their facility or gather any info that did not support your own viewpoint?
They do not get to take others pay or reduce their own workloads, and you seem to think that empowerment of the workforce is somehow bad, that traditional top-down structures are the only way to organize things. My suggestion to you is to first question your own motives before making unfounded accusations about others.
Singing Wolf:
You missed the point of the comparison to the Twentieth Century Motor Company. Have you read Atlas Shrugged? If not, then I would suggest you do so before replying to content which was in the context of that novel.
As far as Namaste being a “failing” company - I stand by my statement, and here’s why:
Any business that relies on subsidies, grants, or rebates from the government (which is actually confiscated wealth from the People) in order to remain profitable and operational cannot be considered successful. When such a company seeks to lay off employees because they need to cut costs - despite the money taken from taxpayers to support it - it is further proof of failure in its most basic sense. As a business operating in what is supposed to be a capitalist system, if it cannot remain open and profitable on its own merits, then it is a failed venture. That ought to be self-evident.
As far as me not getting my “facts” straight…I think I’ve made my point quite well. Your failure to recognize the essential philosophies behind liberty and capitalism does not make my analysis erroneous. I would recommend that you study the multitude of works form the Age of Reason - and get yourself a copy of Atlas Shrugged while you’re at it. It’s an excellent novel and is extremely relevant to our times.
Thanks for the comment.
Ok, let start by saying I have not read Atlas Shrugged and probably never will so, I will debate the parallels.
This I will say and throw out to you - there are aspects of this sytle of managing that I like and I believe have worked in at least one instance.
Harley Davidson was a failing company and on the verge of collapse during the tenure of AMF. The US was on the brink of losing it last motorcycle manufacturer. Dealers were having to put cardboard under the bikes in the show room to catch the oil from the poorly made engines.
As everyone knows, Harley turned its self around to the point of a global brand on the level of Coke and Pepsi (their CEO likes to tout that their logo is one of the few people are willing to have tattoed on their bodies - that’s loyalty.) One of the ways that they said the turned the company around was by a democratic vote (of course there where other ways as well).
The line employees voted on who to hire to work with them (whether they still do this I do not know). This made for a cohesive workforce, a team so to speak and they began to focus on quality rather than quanity.
So, certain aspects, ideas can bring around change - its all in how you use it. TQM that an American brought to Japan and turned around the Japanese industry and gave them the status they have now; had some of these team ideals with it as well.
I agree that the business model they are using now does not seem viable long term but we’ll see how they grow and adapt to their changing enviroment. In the end it is a company’s ability to change that determines their long term success.
Oh, and I think there is something also to be said of a company using all revenue streams available to them. Is there a company out there that would not subsidies if it was beneficial to them?
Namaste!
1. I have read Atlas Shrugged, a long time ago. I went through a phase where I read everything that Rand ever wrote. Then I realized that her philosophy, while interesting, could not fully envelop the reality of the world.
A business that is “socialist”, or at least anti-Randian as you seem to be implying, which has the largest market share in the state, is the most profitable and successful (in a “capitalist” marketplace) seems tome to be a success story and not a failure. High employee morale, commitment to community and people and long term relationships with everyone they come into contact with and looking beyond simple profit motive are, to me, signs of positive change in the marketplace, and Namaste Solar is helping to lead the way.
2. No company in the world (or at least in the so called First World) operates without some type of gov’t subsidies. Tax credits for manufacturers or large employers to draw them to a particular town, employment credits for each employee on the rolls, and the examples go on and on. By your logic then, no firm is successful since everyone gets, as you put it, confiscated wealth. Your ISP probably has some tax credits/rebates or other breaks that help keep it in business and you on the web. What tax breaks do you take come April 15th, personally or professionally?
Once again, traditional energy concerns, pharmaceutical companies, high finance, main street mom and pop shops, and yes Namaste Solar, ALL get some type of break from various gov’t entities. So, are they ALL failures? And if so, can you name me one business that is not “on the take” and thus successful by your definition?
3. Namaste Solar does not get ANY taxpayer monies. Federal tax credits etc. go to the customer, state incentives go to the customer, local sales tax rebates go to the customer, all of these helping to defray the cost of the systemm, FOR THE CUSTOMER. So those homes and businesses that choose to go solar bear the cost, and reap the various financial incentives, while we all reap the environmental and public health and energy security and energy independence benefits. And, the solar and alternative energy industries are all working to come to the point where these incentives will not be necessary. Again, what other industry is doing this?
4. What specific definitions of liberty and capitalism are you referring to? Libertarianism as a political ethos immediately fails upon even a cursory examination of its tenets. Their idea seems to be that we can each be an island unto ourselves, and this is simply impossible. Humans are social creatures, and no society on earth that I have ever heard of has ever had a Libertarian structure that worked. Capitalism, as practiced over the last 150 years (and particularly the last 20 or so) has proven itself overly exploitative, often driven by small-mindedness and short-term profit seeking while fighting tooth and nail to externalize as much (read: pollution, environmental degradation, and social injustice) as possible rather than long term sustainability, social responsibility and internalizing costs. This latter way of doing business is more efficient, more profitable and more responsible. To some in this day and age, true liberty is to be free of others effluents and negative influence, thus providing the greatest opportunity for anyone or any group to express their full potential. The realization that we are all connected and what I do affects you in the same way as what you do affects me is the guiding truth here. The idea that anyone can operate in a vacuum is an illusion (not to mention dangerous, and the state of the world today shows us this.) Once again, name me any entity that currently operates under your notions of liberty and capitalism… there are none.
5. Once again, you retort with incomplete information, as I am still sure that you have not asked Namaste Solar for information, rather basing your analysis on what I judge you want to see, rather than what may be the truth. Namaste Solar does things differently, and is looking forward to the day, not too far in the future, where no incentives on any level will be necessary. How many firms in how many fields are working hard to move away from external support such as tax credits etc? I would wager not many, but Namaste is one.
So, you’ve read Atlas Shrugged. That’s a good start. It’s too bad that you didn’t take much away from it. Now you need to read Namaste’s website.
“In November of 2004, Colorado voters passed Amendment 37 (A37), mandating that a certain percentage of Colorado’s electricity come from renewable sources such as wind and solar power. The rules were finalized and Xcel began paying out rebates in the Spring of 2006. House Bill 1281 (HB1281) was signed into law by Governor Bill Ritter in early 2007 and effectively doubles the original goals of A37 to 20% by 2020.”
“Namaste Solar has been actively involved in the rule-making process for A37 and HB1281 by testifying three times in front of the PUC and submitting four sets of written comments and testimony.”
What does this mean? Well, it means Namaste’s product would not be in demand if not for all of the government money thrown into the marketing of their product. The government is propping up a false market that would otherwise not exist, or would be far smaller and less profitable. And to top it off, Namaste had to lobby the government to get the tax “rebates” - which come at a cost to all taxpayers whether they buy the product or not.
And here’s another little gem just for fun:
One of Namaste’s business practices is to “contribute to social justice and positive social change.”
Social justice…where have I heard that before? Oh, that’s right…from socialists. Please tell me you’re not this naive.
Do you work for Namaste Solar?
Really, there’s no excuse for excusing the abuse of the government’s authority and public funds. My definitions of capitalism and liberty are the same ones used by the founding generation which laid the framework that made this country what it is today. You seem to think this country became great through collectivism and government interference into our daily lives. I find that to be very sad.
And for the record - I don’t believe any business should be receiving money from the government (the taxpayers) and no government should be making laws that promote one industry or business over another. That is not capitalism by any definition.
From the looks of it, you apparently accept socialist doctrine. So, I don’t believe continuing this discussion will be useful for either one of us. Thanks for the comments anyway and enjoy the last word if you choose.
is there a school or something that teaches how to work the government for fun and profit?i am continually amazed and puzzled by the left’s success at selling this line to so many in this country.i am just an old retired hippie mom,i have been busy last couple of years,but i don’t recognize anything anymore.when did this happen and who is this man in the whitehouse?
This blog post is the epitome of the right’s ignorance. Post whatever you want, don’t back it up with any information, and hope that all the ignorant people out there believe it.
I love it!