tag:blogger.com,1999:blog-6498413430541424627.post7911451788351707115..comments2023-11-29T01:47:52.439-07:00Comments on clarity2010: Is economic hard times teaching us anything?Relax Maxhttp://www.blogger.com/profile/01051381168322495999noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-6498413430541424627.post-86423586164778818062010-09-13T12:18:21.247-06:002010-09-13T12:18:21.247-06:00Ooh this is getting complex!
I'm right with yo...Ooh this is getting complex!<br />I'm right with you on "Companies too big to fail", however, I'm all in favour of those who led them to the brink being held accountable. No more big bonuses, no golden handshake goodbyes. Just a swift kick up the backside, much as experienced by the hard-working employees.<br />Penalties on the exporters of jobs too. <br />Here in Britain, in the aftermath of the fall of the iron curtain, it occurred to our captains of industry that eastern europeans would work hard and be very grateful for a fraction of a british worker's wage, and furthermore, there'd be hardly any safety or welfare legislation to bother about. Household names closed their factories here, opened new ones in Poland, Slovakia, Estonia...<br />Seems good. Costs down, profits up, sell the factory sites for fancy apartments, bonus to shareholders, new yacht for chairman.... <br />But the bigger picture? A town suddenly has a thousand or so unemployed. A thousand fewer wages to buy goods and services from local businesses, A thousand families paying less or no tax, claiming unemployment, crime up, as unemployed kids get into trouble, I suppose the silver linings' that a Polish town becomes newly prosperous on the cash we're exporting.soubriquethttps://www.blogger.com/profile/01151288534629885195noreply@blogger.comtag:blogger.com,1999:blog-6498413430541424627.post-17226311691487709872010-09-13T05:34:53.480-06:002010-09-13T05:34:53.480-06:00This statement: "The cure for an economic rec...This statement: "The cure for an economic recession is not to “create” jobs but to recreate demand for goods and services; jobs follow." shows you, at least, do not appear to be.<br /><br />Yet much of your rant seems in opposition to this statement (as well it should be). Japan overcame a recession much like ours twenty years ago (slowly and more painfully than they had to, largely because they followed the same kind of logic you keep using and were cautious).<br /><br />Look at the factors that really turned the depression around - the much maligned make-work /infrastructure projects that built much of the infrastructure crumbling now, the temporary job boom in war industry (we don't have because we had such a war materials glut and because our current wars affect our bottom line and only a small fraction of this country - which is living hell on that particular fraction).<br /><br />I DO agree with you on corporations too big to fail (but I don't think Warren Buffett is going to live long enough to serve on every major board indefinitely). As for exporting jobs, I tend to agree, but note that our slavish devotion and respect for profit at any cost (including the rabid defense of same regarding taxes) is, in my opinion, enabling it.<br /><br />How about costs incurred in another country not being counted in the allowable corporate expenses in THIS country for tax purposes? If half your wages are being paid in Taiwan (via contract or directly), our government doesn't see that as part of the net expenses.<br /><br />Of course, that would limit the extent of the multination global giants. On the other hand, is that a bad thing?Stephanie Barrhttps://www.blogger.com/profile/17772217449161603561noreply@blogger.com