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If the poor are entitled to assistance under numerous
government programs, then what are the successful entitled to?
Do $ 6,000 toilets, $ 14,000 rugs, $ 50,000,000 airplanes all fall within
the range of entitlements in publicly held companies? The answer is, for the
most part, yes. The CEOs of the big three – a euphemism – automakers in the
US flew to Washington recently, each in his own jet plane. So what? They fly
everywhere they like and to anywhere they like in their company owned and
operated jet planes all the time and no one says a word about it. Billions
in bonuses are distributed within single companies each year without a peep
from shareholders or from Congress. So what’s the big deal?
Blips cause noise. Are we experiencing a blip? How long does downturn have
to last; how many people must lose their livelihoods; and how many companies
and banks must fail before a blip becomes a recession/depression?
Supposedly, if President Obama can get his “stimulus” package through
Congress, we will be turned around in about three years. That means that we
will have bottomed out somewhat before that and be experiencing highly
touted positive numbers in about two years. If we just stop handing Iraq $
10,000,000,000 a month, that will free up more then enough money to cover
the continuation of executive entitlements during this blip – right? Why are
not Congress and the press as annoyed at the Iraq waste as they are about
much less expensive executive entitlements? What am I missing? The money
going to Iraq certainly isn’t producing anything of value for us. It is just
a charade, in which we pay and they pretend to be interested in living
together harmoniously. Stop the payments and their true personae will emerge
overnight. At least our pampered executives can be expected not to car bomb
anyone. Doesn’t that count for something?
Am I just being sarcastic? Only partly. There is a lesson here. The lesson
is that abrupt changes of substantial magnitude cause misperceptions about
many things that are just ordinary course issues in “normal” times. In
normal times, profitable times, companies in America generate so much wealth
that executive “entitlements” aren’t noticed. After the current carnage,
companies will again generate great wealth in America.
How we manage the interim and whether in that interim the “little people’s”
suffering is modulated is seen by many as meaningless. We willy nilly
provide many billions for large enterprises that don’t use the money to
retain employees. After all, one retains employees to produce goods and
services that people will buy. If people aren’t buying – so the theory goes
– why retain employees? And – if you are of a true executive mindset –why
relieve little people who aren’t now producing wealth? But…then…why in the
same interim allow continued executive entitlements for executives that are
now not producing wealth? Why not claw back some of the excess?
Silly question, right? Hmmmm…..
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