ENGİN CİVAN

ENGİN CİVAN

International Finance Advisor / engincivan.tr@gmail.com

McKinsey: The Pinnacle of American Capitalism

22 Şubat 2021 - 09:01

Does the name McKinsey ring a bell?
During the period when Berat Albayrak was Treasury and Finance Minister he signed an agreement with a consulting firm named McKinsey.
Firstly...
 It will be useful to remember that senior partners of a world class consulting firm such as McKinsey receive a minimum annual compensation of 1 million dollars.
McKinsey was taking a MR of Turkey’s economy and providing appropriate prescriptions.  However, they precipitated heated debates in the court of public opinion.
 In the end...
President Erdogan unilaterally cancelled the agreement severely disappointing Mr. Albayrak.
Our subject today is the same firm: McKinsey.
Yes, in the starring role is the firm that I’ve described as the “Wise  Men’s Club”.
But the topic extends further than the blotch on the face of American progressive capitalism's symbol.
 Let’s rewind the tape to the beginning...
 The topic was quickly forgotten in Turkey where the agenda changes by the hour.
 But in America there is a serious societal injury that continues to bleed...

OPIOID EPIDEMIC
We can say “substance or drug addiction” but that would be a little simplistic...
 The middle ground is somewhere between prescription painkillers and “addictive substances” ...
 The numbers are scary: 130 daily deaths...
In 2018 47 thousand people died.
 There is no vaccine because the deaths were not a disease related as with Covid.
 Amongst the substances causing addiction and death are such drugs as heroin and fentanyl.
The OxyContin brand pain killer is responsible for the highest number of deaths!
A Family-Owned Firm and McKinsey
 The numerical data I’ve shared to this point is background material...
 Now let’s look at the details!
 A family firm produces a pain killer, markets it, and incentivizes doctors to prescribe it.
 The same firm convinces regulators that the pain killer is not addictive.
 Result: On one hand record sales, on the other a large contingent of otherwise “youthful” victims dying of overdoses.
The firm's greed is so great, they are able to afford to afford the services of the world-famous consulting firm McKinsey.
How can sales be increased?
What can be done to incentivize doctors and pharmacies as distributors?
How can the health regulators be convinced?
McKinsey carries out detailed studies for years to answer these questions for their pharmaceutical company client.
(Sidenote! In some countries a free “all-inclusive” vacation in America is offered as a reward!!)
 Thousands of pages in analysis, tens of thousands of email messages are written in pursuit of the goal.
 You’ll see that the document trail is huge!
 But despite the deaths of thousands of youths there is no slowdown in sight.

 THE JUSTICE SYSTEM IS WORKING!
 The issue is eventually brought before the federal bench and a few state courts ending in an 8.3-billion-dollar fine being assessed against the family firm.
In addition, a 225 million dollar fine is assessed against individual owners of the family firm.
The wretched firm comes close to bankruptcy.
 Until this moment there is nothing out of the ordinary!
The cogs of capitalism are turning as expected.
 But I’d like to focus on the coordinated legal treatment by the states of the consulting firm McKinsey.
 My regular readers are aware.
United in name: The United States of America. Every state is a separate entity. Every state has a chief prosecutor or attorney general. In other words, we might call them a “State Justice Minister”.
 The attorney generals of 47 states unite and file a suit against McKinsey.
The suits primary charge: How could you provide consulting services to increase the sales of OxyContin after it became classified as a narcotic?
McKinsey, with its’ a huge retinue of brain power, decides to not fight the charges in court but instead pay a 600 million fine.
It settles with two other states separately and is still in litigation with one!
McKinsey being composed of smart cookies does not accept responsibility and therefore is not seen as guilty in the eyes of the law.
 Another interesting point; they are permitted to keep the 10 thousand emails under lock and key for 5 years.
 You’ll remember the energy company ENRON which went bankrupt to the tune of billions of dollars and/or the Swiss International Airlines which shuddered its’ doors! McKinsey provided consulting services to both mega firms but did not suffer injury from either bankruptcy.
It did not even suffer a blemish once.

EVERY APPLE CARRIES ITS OWN WORM
 It’s generally common knowledge that those who look negatively upon America are in the majority in Turkey.
 With the emergence of Covid and related events the question ‘Will Pax-Americana End” became more widespread.
 Covid is an external problem and one way or another is being resolved.
It’s unforgivable that the profit motive causes a society to turn a blind eye toward such life impacting structural imperatives as public health, social interest, and protection of the family unit.
 I’ve written multiple times of how “Big Money” cares not a whit about anyone including its’ own countries citizens.
 “Big Pharma” is a component of “Big Money” and is an unbelievably powerful lobby. It has billions of dollars of political capital at its’ disposal.
 Just as an apple contains a worm, the advanced capitalist systems’ money blindness and lack of consideration for its’ own people’s welfare is its’ worm.

Engin Civan / ABD / 15. 02. 2021