Stop blaming the 'world economy' for our plight

FRIDAY, NOV. 16: I could yell out in frustration — picture Edvard Munch’s The Scream —  but it would probably fall on deaf ears. If I hear the phrase “world economy” one more time I think I’ll spit. Enough already.

Bermuda is about to teeter over on its own fiscal cliff and many out there want to blame the world economy. You are wrong, wrong, wrong.

Here’s the truth. International business has been quietly leaving for the last few years. You were sleeping, they were packing.

CEOs don’t like to get too much into local politics and so whenever they were asked about doing business in Bermuda you probably read something along the lines of “we love Bermuda, and as long as conditions remain the same, we’ll continue to do business here. There’s so much local talent, what an amazing island, blah, blah, blah...” 

This is “the small print”. Government — and by the way, they weren’t alone on this one as some members of the former Opposition (UBP) didn’t read the small print either — didn’t understand code for “…you people screw this up, and we’re out of here.”

It’s pretty simple. Finance folks like to make money and they don’t care if it’s sunny or raining Think Osama bin Laden.  Before the dump in Pakistan he was operating out of a cave. After you get past the faux bois finish in a Wall Street lobby, the rest of the offices can look an awful lot like Afghanistan; utter squalor. Forget the nice climate; many CEOs and their executives have gone to Dublin (rain and clouds) and Zurich (the snow but at least there’s chocolate) and of course our old nemesis, the Cayman Islands (the number one cause of heartburn in Bermuda).

Drop the debate on term limits and play possum for the next couple of years. Let what’s left of international business flourish and see if their success might induce others to form businesses in Bermuda.

Right now the only businesses that might be flourishing in Bermuda are the Good Riddance Girl and EMoo, both of whom sell the stuff that expats leave behind.

Pretty soon Bermudians will be selling the clothes right off their backs to the great unwashed (cruise ship passengers) in order to survive. This is not how dignified people make their living.

While you’re at it, don’t fall for my other favourite phrases, “restructuring, consolidating, reorganizing and outsourcing,” from international companies as this too is polite code for, “you screwed up and we’re not staying around for another second.”

Listen up; CEOs don’t move to Mumbai. But your “bye” won’t have a job if everyone in international business leaves.  Also, leave out the sob stories that Bermudians aren’t part of an “old boy” network and their careers are stalled. Very few people in this world have “rabbis” to protect and guide them in the corporate world. 

Remember the payroll tax increase of two years ago to 16%? That was fun.  Goodbye Citi Hedge Fund (105 jobs), good-bye Evan Greenberg and senior finance executives of Ace Group, goodbye XL executives. Hello empty offices.

Payroll mistake

These executives weren’t eliminated; they re-located themselves right out of expensive and hard-to-do business-with Bermuda!  That mistake opened the floodgates and it didn’t matter that the payroll increase was rolled back to 14%. They had already made other arrangements.

Somewhere in Philadelphia and elsewhere in the world, Ace executives and their colleagues from other international companies have been eating in restaurants, buying clothes, using dry-cleaners and spending their money on a myriad of “must haves.” They bought or have rented nice homes and have left yours empty.  Your son or daughter or possibly you are missing out on the opportunity to work with the best in the industry. Is that due to a global economy? 

Self preservation is an important element for survival. But having a “we showed them who’s boss” mentality towards international business only proves that you’re not looking down the road far enough.

If you don’t want austerity, don’t create the conditions that will result in hardship. If you eat what you kill then I hope Bermudians remember how to fish.