Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: shrinkermd
You're wrong.

Companies big and small, have vast amounts of unspent money. It's unfair that wealthy corporate tycoons should be able to keep the obscene profits. Government needs to step in and insist that companies treat their employees fairly. You're wrong to assume that any costs a business incurs will be incorporated into the price of their product, or by resisting wage increases, or by reducing dividends. The pot of unspent money will pay for it all.

SS from Fantasyland, over and out.

9 posted on 03/06/2008 8:00:59 AM PST by Sgt_Schultze
[ Post Reply | Private Reply | To 1 | View Replies ]


To: Sgt_Schultze
Companies big and small, have vast amounts of unspent money. It's unfair that wealthy corporate tycoons should be able to keep the obscene profits.

I know that you were aiming at parody with your comment but there was a time not too long ago when that was true (except for the "corporate tycoons" keeping the profits).

Back in the mid 1970's many mid to large corporations hired "money managers" to oversee the cash reserves that the Federal Government required they hold to fund their pension plans. In a time of rising markets it didn't take long for most in-house pension funds to generate more cash then the required employer contribution from the corporation. Before too long, the pension fund became the largest (and least known) asset of many corporations.

That started the "merger mania" and the "leveraged buyout" era when companies were bought strictly to acquire the cash assets (sometimes it was done "with their own money" as the raiders issued "junk bonds" and then underwrote them w/ the former pension cash). The rest of the physical assets were broken up and sold off. The former pension fund was seized by the corporate raider and the former employees were handed an annuity from some third tier insurance company.

That "gold mine" has long been played out though.

Regards,
GtG

16 posted on 03/06/2008 12:33:26 PM PST by Gandalf_The_Gray (I live in my own little world, I like it 'cuz they know me here.)
[ Post Reply | Private Reply | To 9 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson