reply to post by spaceman84
You're correct. All you need is common sense, and a good deal of honesty and fair play to see what has happened.
This entire mess comes down to a five letter word, GREED.
Corporations have gotten to the point where it is not enough to make a reasonable profit, the corporate executes want as much profit as possible, so
that they can reward themselves with huge bonuses. Bonuses come in 2 major forms-cash and stock options. The stock options is where it all comes
together.
Here is a simple formula anyone can understand:
PROFIT = SALES - EXPENSES
Now, there are two ways to increase profit:
1.) Raise SALES
2.) Lower EXPENSES
By far, the easier route is to lower expenses. For most corporations, wages are the primary expense, so by reducing wages, profits increase. Of
course, we all know what that meant- outsourcing jobs, services and manufacturing, preferably to countries with low wages, low energy costs, and very
weak labor laws.
The result is of course, increased profits, which then drives the stock price up, and, of course, these executives then execute the stock options
which they had rewarded themselves with.
Within a short time, this becomes a sickness, the overriding desire to continue to increase profits. This then involves bribing government officials,
and lobbying Congress to pass laws favorable to their businesses, such as tax breaks, and easing of laws related to the environmental damage done by
their manufacturing.
Well, this of course, is a simplified explanation, but none the less, an accurate assessment of the current situation.