When People Become Commodities

Stay with me on this one. It all comes together in the end.

In 1856, the Chicago Board of Trade enacted a system for grading corn. This was the introduction to the world of Number 2 Field Corn (for a more technical definition of field corn--if you like that sort of thing--please see the bottom of this post). No. 2 field corn is what most Americans (by "American" in this case, I mean citizen of the United States of America, as Canadians have not fully gone corny and can still buy a Coca Cola made with sugar which they shouldn't be drinking either) eat the most of every day. Think of high fructose corn syrup, corn syrup, corn starch, modified corn starch, corn meal, corn chips, corn flakes etc. And that's just the list of ingredients and products where you will recognize that you are drinking or eating corn, there is also the list of things you won't recognize that are derivatives of corn: ethanol (yes, your car consumes No. 2 field corn too), ascorbic acid, baking powder, caramel color, calcium citrate, caramel, cellulose, citric acid, dextrin, maltodextrin, dextrose, lactic acid, malt, magnesium citrate, xylitol, and my personal favorite, xanthan gum, and the list goes on. 

So what's the point? Before 1856, if you wanted corn you would buy a bag of it with a seal or mark on it so you knew what farm it came from. If you didn't like it, you could "vote with your feet" or wallet and buy from another farmer. But you personally would vet the corn yourself. Different growers had different types of corn and growing methods that may yield a better or worse product, but you would get to decide what you liked best. Farmers did their best to produce the best corn at the cheapest prices.

After 1856, all corn that met the standard "No. 2 field corn" was brought to the granary and stored in one large pile to be processed together. Farmers did their best to produce corn that met the minimum standards (No. 2 field corn). As much of it as possible without regard to quality beyond the minimum "No. 2". Corn was officially a commodity. As such it became interchangeable with other corn meeting the minimum standard. Nobody cares where a commodity comes from. If gold comes out of the ground in South America or Africa it is interchangeable as long as it has the same number of carats. If your field corn tastes better than your neighbors, nobody will ever know, because by the time it reaches your table as corn flakes it has been mixed with all the other corn of the same grade and processed beyond recognition. The bottom line with commodities is that increased quality beyond the minimum standard is meaningless.

Earlier this year, I became a commodity. I began working for a healthcare staffing company. When a healthcare professional calls in sick unexpectedly, or has a baby two weeks early, or has a vacation that no one can cover, they call my company. My company sends a "No. 2 field healthcare worker". They send me. Or someone who is interchangeable with me and the person who we are replacing. We are commodities. We have the necessary degree, vaccinations, license and time available. I know of a healthcare professional who could not find a job after graduating (likely because of ageism). After interviewing at several companies with no success after the interviews, she took a job at a staffing company and then filled in for many of the people who were hired in her stead. The kicker--the companies had to pay almost double for her services (commodity prices rise during a shortage). 

The problem with becoming a commodity is that you are treated like one. Just like with corn, the people I work for aren't looking for the best replacement. They are looking for any viable replacement. Also, it doesn't really matter what quality of care they provide as long as it meets the minimum standards (nobody dies and nobody makes a scene). What is the number one question a prospective employer is asking? "What is your productivity percentage?" This is akin to asking a farmer, "what is your yield per acre?" It is assumed that the yield meets the minimum standard and no more thought is given to quality. Quality is no longer the goal, quantity is king.

The sad truth is that you can have the largest yield per acre and still be unprofitable. Likewise, you can have all your employees be highly "productive" as a healthcare facility and still be in the red. Productivity matters only so long as you are profitable. Not to mention that with healthcare we are talking about workers and patients who are people and not products like corn. It's a little scary what may happen in the future of healthcare quality, when productivity is the primary driver.

As a side note, if you are in a field where you are commoditized, you need to either differentiate or "de-commoditize" yourself by making yourself or your product special in some way so you can justify charging more for it. Or you need to out produce your competitors and become one of the biggest purveyors of your good or service so you have some control or ability to bargain over prices or control the supply line. If you are unable to get large enough, some industries have had some success establishing co-ops to gain collective bargaining power. If that term sounds familiar, it is because of the labor movement (commodity workers) establishing unions (co-op) demanding worker rights last century.

What is No. 2 Field Corn?

No. 2 field corn is a grade designation of the U.S. Department of Agriculture Federal Grain Inspection Service. It is corn that has a minimum test weight of 54 pounds per bushel at 15.5% moisture. It has a maximum limit of 3% broken kernels and foreign material and cannot exceed 5% total damaged kernels. 

https://www.extension.org/pages/39109/what-is-no-2-field-corn#.U93EF0DOdP4