McKinsey: The Company that Poisoned America

so you're Mackenzie in the early 2000s you're a ruthless consulting firm who puts sales and capital above all else and you've just found the perfect client Purdue Pharma Purdue sells one of the world's most addictive and profitable products opioid drugs like Oxycontin imagine getting to sell basically the equivalent of heroin legally that is the business Purdue was in and McKenzie had just been hired to boost their sales it was a match made in heaven both you and Purdue will do anything to make an extra buck so you set out only this information and sales campaign unlike any other you sell people drugs you know will kill them eventually McKinsey advised Purdue how to avoid FDA and Pharmacy restrictions because McKenzie knew that people were overdosing and dying and getting sick from oxycon you sell them so well that over the next two decades hundreds of thousands of people die from opioid overdoses and because of lats produced sales go up and you get your Consulting fees your client sells drugs and profits off of people getting addicted to them just like a drug dealer except drug dealers go to prison but because you're a well-connected corporation you just need to issue an apology and get away with just a 600 million dollar fine when you make over 10 billion dollars a year a National Health crisis billions in taxpayer dollars to set up rehabs the alleged indirect killing of thousands of people and the worst you get is a glorified place they'll do this again this is Mackenzie the most evil consulting firm in the world and this is how they pull it off foreign [Music] Mckenzie was founded in 1926 by a University of Chicago Professor named James o McKenzie today is the oldest of the big three consulting firms a management consultancy like McKinsey is filled with business and economic grads from Ivy League schools like Harvard and Yale and they're hired to give advice to big businesses on how to improve their performance and efficiency they go into big businesses and governments to find them ways to make more money save more money and streamline their organization this could mean rearranging the way a business is organized creating new strategies to become more profitable or just helping the leaders of a business or country run a tighter ship if that sounds boring you are right but think about it they're getting paid huge dollars by the biggest companies in the world to give advice they don't have to manufacture anything and that's why they make over 10 billion dollars a year Mackenzie is one of the best in the business but they're also ruthlessly committed to profitability which is always good for the businesses they're Consulting for but it's not always great for the customers or the general public and McKinsey has had his fair share of scandals adirond the infamous bankruptcy that took 74 billion dollars of shareholder money with it was created by an ex-mackenzie employee Jeff Skilling Mackenzie earned Millions from Enron for promoting his business model and offering consulting services for over 20 Enron projects Mackenzie also advised president Trump's team on anti-immigrant and migrant detention policies they suggested cutting spending on medical supplies and migrant detention centers restricting the caloric intake of detained migrants and streamlining the deportation process and that's not all remember the 2008 financial crisis yeah well Mckenzie was involved in that too MacKenzie's 10-year CEO rajat Gupta was convicted of insider trading from it and even after all these scandals MacKenzie still advises some of the biggest companies and governments in the world their clients include Best Buy the US Department of energy the Department of Defense and even the U.S Postal Service even though they've been involved in some seriously questionable schemes their methods obviously work and they've stayed in business today they have over 130 offices all over the world and serve 80 percent of the Fortune 100 companies if there is a true Puppet Master behind all these giant corporations it is McKenzie and after nearly 80 years in business you were stronger than ever so when the chance came for you to team up with a pharmaceutical company that shared your hunger for profits and sales well it was time to go all out if you want to make a lot of money in business one important aspect you might Overlook is your health after all health is wealth it doesn't matter how much money you have if your health isn't there and you can't make as good a business decisions when you're unhealthy either that is where Noom comes in Noom is a digital Health platform that uses a combination of Science and support to help people form healthier habits because healthier habits are a lot more effortless to follow once you have the tools to learn them and Noom doesn't tell you how to live your life instead noon creates a personalized plan that teaches you how to meet your health goals without depriving yourself here's how it works first you tell new about your gender age eating habits and how much activity you do daily then based on your responses noon creates a personalized plan to fit your lifestyle and a timeline for reaching your health goals from there you're ready to start developing healthier behaviors at home NuMe uses real psychology and therapy techniques that lead to long-lasting changes in your habits part of the reason why Noom is so effective is that their plans focus on educating numerous instead of restricting them one feature that's really healthy full in this learning process is the daily new lessons on top of the lessons Noom has a food and exercise tracker so you can stay organized and know precisely how many calories you're munching on every day and Noom also comes with an awesome support system you're paired with a goal specialist training psychology Fitness and Nutrition who acts as your one-on-one coach you can message your goal specialist about anything related to your health Journey like when you're having trouble sticking to your workout schedule or you need advice about making meals with leafy greens that actually taste good if you've been frustrated with how to take control of your health start by creating a fast simple and free new evaluation that will help you create your own custom Health Plan by going to noom.com with the link below that's newton.com Jay tram with the link below thanks to noon for sponsoring this video less than one percent of people get addicted to Oxycontin that's not possible but it is [Music] companies like Facebook Instagram have to put in a lot of work to build on addictive products but what if you could shortcut all that nonsense by just selling a thing that will always be extremely addictive at a molecular level well that's what Purdue farmer came across in the 90s Oxycontin oxycon is a doctor prescribed painkiller that was originally made to help cancer patients deal with pain it belongs to the same class of drugs like heroin and Fentanyl called opioids think of this business kind of like big Tobacco on steroids for years Purdue Pharma made Millions from selling the drug and telling doctors there was no way it was addictive so doctors would prescribe it for everything from tooth aches to sprained ankles yes an addictive painkiller made as a last resort for cancer patients was being used for toothaches but then in the early 2000s they ran into a problem people were starting to realize oxycon wasn't as great as Purdue advertised suddenly sales nosedived doctors stopped prescribing it so liberally and everyone got a lot more careful with the medication they were taking something had to be done Purdue farmer was sitting on a multi-billion dollar product they couldn't sell because people thought it was addictive they needed help and that's why Purdue farmer called McKenzie and asked how do we keep drugging America not sure if that's how the call actually went and you Mackenzie couldn't wait to take over the operation in 2004 Mackenzie was brought on board as the Management Consultant and the race that turbocharged profits began of all doctors in the country will be sent pseudoaddiction pamphlets give one to any doctor if their patients show signs of addiction sorry pseudo addiction your first order of business was to find ways to boost produce Oxycontin sales to do that you would allegedly have to do exactly what big tobacco did convince people that all the news about opioids being addictive and bad for America was really just speculation it wasn't the opioids fault people got addicted they were just using it wrong so you went on a full-blown allegian disinformation campaign Perdue reps would tell doctors oxycon was way less addictive than other opioids they would encourage them to prescribe higher doses of oxyto their patients and even after Purdue was found guilty of lying to doctors about the risk of the drug they just kept selling and allegedly Mackenzie was at the heart of all these tactics McKenzie Consultants actually rode along with went with Purdue sales reps to doctors offices here in Massachusetts to critique them on how effective they were at selling Oxycontin was sales back on the rise you had another problem to deal with the FDA Mackenzie was already advising the FDA on drug regulation policies while you also conveniently forgot to tell them you were Consulting for Purdue while at the same time Mackenzie went to opioid manufacturers and suggested you could help them avoid quote strict treatment from the FDA and it works with fewer restrictions and doctors being told oxy was the best opioid out there drug money went on the rise and so did the addiction rates [Music] opioid sales were Rising faster than ever which meant you and Purdue had a new problem people dying people would get addicted to opioids like Oxycontin accidentally take too much of it to get high and then overdose you knew the opioids produced sold were dangerous but who cares you and Purdue were swimming in drug money and you weren't gonna let a few people die and stop you again allegedly so you got a brilliant idea you needed pharmacies to keep selling oxy but they probably wouldn't want to if the overdoses affected their business so what if Purdue offered pharmacies a rebate for every person that died or became addicted to Oxycontin pharmacies would have no reason not to work with Purdue anymore think about it if Purdue paid let's say 14 810 per event an event being a person getting addicted or dying and let's say 2000 484 customers at a CVS Pharmacy chain overdose or became addicted Purdue would only have to pay CVS 36.8 million dollars for the trouble a pretty good deal and just simple math and this is a real presentation McKinsey made by the way at the same time you were pushing opioid sales higher you even had the audacity to post articles what titles like why we need both our action to combat the opioid epidemic but then Purdue got exposed and things turned ugly please [Music] around 2018 Purdue was already under investigation and McKenzie's top Executives started realizing the amount of trouble they could be in if they're worth to push opioid sales were uncovered it was only a matter of time before investigators got to you so the only logical Choice was to destroy evidence according to one McKinsey executive they were deleting all of their quote documents and emails anything that could get you in trouble for your methods but clicking the lead on a multi-million dollar deal with hundreds of people involved didn't really help much and investigators eventually found all the documents Mackenzie was trying to hide and the spotlight was on you [Music] thank you as with every company that has ties to us politicians the punishment for McKenzie's involvement and produce opioid free-for-all was pretty much a slap on the wrist Purdue farmer got destroyed they were forced to shut down and to pay billions of dollars to help rehabilitate people but Mackenzie you got a tiny 600 million dollar fine and basically a request to stay out of the opioid industry forever considering you make over 10 billion dollars in Revenue a year 600 million dollars is a setback but it's definitely not a harsh punishment only six percent of Revenue the closest thing to an apology anyone could get out of McKenzie a three paragraph blog post titled McKenzie's statement on his past work with Purdue farmer about how you never expected this will happen an in-true business consultant style you even found a way to make your fun and produce downfall a little bit sweeter foreign [Music] most of the money you and Purdue May will go to funny state-run addiction treatment centers in rehabs which is great for McKenzie because one of your wholly owned hedge fund Affiliates Mio Partners has indirect States in not just drug rehabs but the manufacturers of medication used to treat overdoses you profited from opioid addiction and now you'll likely allegedly profit from people getting rehabilitated from it too Mackenzie sent out a spokesman to call this allegation false and absurd for decades you have been playing the system and you definitely aren't going to stop now but if you thought that was the most atrocious thing Mackenzie advised on that is not even close see McKenzie was allegedly one of the main firms that sold out America to China by telling U.S companies just how much money they would make if they ship their operations across the world to China but you would just have to subscribe for that future video [Music] thank you [Music]

Channel: Jake Tran

Views: 1,598,247

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Id: ehT35-671IM

Length: 13min 37sec (817 seconds)

Published: Sun Jan 30 2022