Funny thing about corporate America, once their seemed an implied contract existed, you work hard for us and if we make money youÂ’ll will get a share. If you work hard and stay with the company, when your older you will have a pension and health benefits. Well it doesnÂ’t work that way anymore.
15 years ago, I started my own business, left a nice six-figure salary, expense account, pension, dollar for dollar 401k match, and a company car. My spouse at the time decided I was crazy, as did my co-workers, and friends. I make about a third of what I did with no benefits, but my former company was sold, has defaulted on their pension obligations, laid off the majority of my co-workers and ended retiree health care.
As I am solely responsible for my retirement, I invest. Recently I was holding stock in a company (Ford) that announced it was closing several factories, and laying off 20 or 30 thousand workers, my stock increased by over $2 a share, and I sold it. I had never before made money from an investment, in this manner. I used to think you found companies with growth potential and then, with luck you rode along with their success. However now I am finding that investing in troubled smoke stake industries, before they announce plant closings and massive lay offs is much easier and has been more profitable, then trying to predict the future success of a company.
GM has the potential to be a real money maker, they will probably close at least 10 more plants and lay off over 40,000 in the next few years, that should be good for 2 or 3 dollars a share, and if we are real lucky, Toyota may buy them and that should be good for close to $15 more a share.
If you look at the boards of directors and major stockholders, of major US corporations, you will find that many are interlocked, both individuals and institutional investors, they could care less about the worker, as their only concern is the return on investment from the means of production, not the welfare of the producer.
Viewed globally the US is a mature market, so why bother; invest in China, India, and South America with growing populations and markets. So what if US consumers donÂ’t have jobs or the ability to purchase your products, the plants you built in the emerging markets will higher workers and they will by your product, and your return on investment will not diminish, the only thing that will change is the source of revenue. Just look at Wal-Marts announcement concerning China or Dells regarding India. One day we will find that we live in a de-industrialized first world country, and hopefully like Britain, there is some economic super power, that for whatever reason, values you, and will insure our continued survival by providing for our defense and safe guarding our national interests in the world.
But donÂ’t worry it wonÂ’t happen for awhile, so keeping supporting policies that make it easier, buying bargains produced by people earning near slave wages, because the 5% of the population that controls over 90% of the wealth in this country appreciate it. Take a look at your government, of the people by the people, not unless most of us are millionaires. In the house of 435 members over 100 earn more than a million a year, in the senate of 100 members over 40 earn more than a million a year, yeah they share your values. Think about it the median income for a US household is a little over $44,000 and we pay a legislator at least $165,200.
Life is no joke but funny things happen
jon
