I don't understand this recent anti-corporation benge here on our beloved ATS. Corporations or any big company incorporated or not are just like
people, there are good ones and there are bad ones.
It is nonsensical
to say that every big, successful company is evil or corrupt. There are thousands of huge companies that are VERY GOOD global
citizens. These companies take excellent care of their employees, they provide good returns on the investment of the shareholders and they advance
man's capabilities and knowledge daily.
Additionally, there are many companies that are more concerned with improving Humanity's plight than they are about the Bottom Line. They are known
as the recently Bankrupt. Funny? not really true? you bet.
Economics is pretty straight forward stuff. Investing in the stock and bond markets is a zero sum game. If you make a dollar someone lost that dollar
Your 401K, IRA or whatever market tied retirement/savings account you have is doing exactly that, investing your money in the stock and bond markets.
Unless you inherit a lot of money, you are counting on that money to grow so that when you retire you can have a home, food and maybe go on a trip or
two every year right?
How hypocritical is it to decry these corporations as evil beasts for being successful then turn around and GLEEFULLY deposit the gains of your
Certainly there are corrupt companies out there, but it's NOT the company, it's the greedy HUMANS that run it that cause the corruption. These cats
CHEAT the system, cheat their fellow man, and are basically pond scum. The obvious example of this type of filth is Enron.
Enron was a classic example of more than corruption at the top. The employees that cried about losing all of their retirement money when the scandal
was exposed were hypocrites IMHO to the extent they left WAY too much of their retirement account in Enron stock. No diversification. This is STUPID
investing for the obvious reason that if you have all of your eggs in one basket and that basket breaks, you lose your eggs.
Let's look at why
these employees had all of their money in Enron stock... Hmmmm could it be because it was outperforming the market by a HUGE
it certainly could be. If these employees would've diversified they would have taken a huge reduction in return or profit on their
investment. That's called GREED overpowering common sense. It bit them in booty in the end like it usually does.
Truly the free enterprise, capitalist, open market competitive system is the BEST system man has devised for production, invention, progress, quality
of life improvement, etc... Is it perfect? NO! Is ANY
Human perfect? NO!
Communism is an utter failure as a political/economical system. WORSE yet is "Socialism" as far as economics goes.
Socialism has enjoyed some limited success as a means to provide essential services to a population. Canada and the UK's health system are examples.
Unfortunately it's horribly expensive for those who work hard and make a large income because they pay a far greater amount in taxes. It's very
unfair mathematically but if the population of "go getters" are altruistic enough to pay for the less productive it's a viable system for SOCIAL
The reason the UK and the other developed nations do NOT employ socialism economically
across the whole market is they would be bankrupt inside
of a year. What I mean by employing "economically" is everything being provided by the state. A TRUE socialist government would provide every
citizen a car, a house, all the things in the house, clothing, etc...
Nobody would "buy" anything in a genuine socialist government. There isn't a nation on this planet that uses this system for obvious reasons...
To use such a broad brush casting all corporations as corrupt slave masters simply won't stand up to logical argument.
Without the collective that most corporations are made up of Humanity would be hard put to get anything done. The typical manufacturing corporation
for example, employs and coordinates the talents of many diverse skill sets. It is a means to organize and manage several complex operations and
market the produce of those operations in order to get the money needed to create and produce the next set of complex operations.
The people who invest in that company are RISKING their money and rightly expect a PROFIT from that investment.
Who among us would go work hard for 40 hours somewhere, excluding volunteer work obviously, and not expect to get paid for our work? NOBODY.
then is it held in such disdain that a company who innovates, produces and beats the competition makes a pile of money? What,
exactly is wrong with that? The employees and investors/share holders of that corporation deserve
the fruits of their risk/efforts.
Would we hold a farmer who worked twice as hard as his neighbor and produced a bumper crop out as a crook because he made much more money than his
neighbor? I would hope not.
Generally speaking the market polices itself rather well too, Enron collapsed because they were cheating, cooking the books. You simply can't
"kite"(1) forever, it catches up when the loop is closed and the payments are due. Post Enron there is much better standards of accounting and
accountability. Now a days the CEO, CFO and Board of Directors take personal liability for the "numbers" that are being published on public
companies. If they try to "cook the books" they will probably go to jail, it simply isn't worth it to cheat anymore. Outright stealing is the best
method for the incorrigible crook who finds himself in a CEO position of a big company.
I really would like to understand why it has become so "dirty" to be successful.
(1) Kiting is rolling false profits from one entity into another entity. Placing unrealized gains on the books from subsidiary companies. Before the
massive accounting reforms Enron caused to happen a company could indicate income from myriad subsidiaries, joint ventures, multi level "deals",
etc... without any scrutiny. Using these false profits as an increase in shareholder's equity the company could get huge lines of credit which they
used to pay off the shareholders' dividends, pay themselves huge bonuses, etc... The end result always hits when the "loans come due" on those
lines of credit, if you really weren't making all that extra money you can't pay the lines off. This is VERY over simplified explanation but it
serves this discussion.
[edit on 10-25-2005 by Springer]
[edit on 10-25-2005 by Springer]