레이블이 USA Debt Crisis인 게시물을 표시합니다. 모든 게시물 표시
레이블이 USA Debt Crisis인 게시물을 표시합니다. 모든 게시물 표시

2013년 11월 30일 토요일

About 'is usa in debt'|USA debt threat… X, AKS are still strong







About 'is usa in debt'|USA debt threat… X, AKS are still strong








When               it               comes               to               pinning               blame               on               what               actually               caused               the               present               financial               catastrophe               at               General               Motors               almost               everyone               engaged               in               the               argument               on               all               sides               lacks               any               longer               term               historic               perspective.

Yes               clearly               Management               and               the               Unions               were               ultimately               responsible               for               destroying               the               company               in               the               short               term               and               under               conditions               that               were               imposed               by               a               higher               power.

What               was               once               the               biggest               most               profitable               industrial               corporation               on               earth               fell               victim               to               government               intervention               and               greed.

Here               is               the               longer               term               perspective               on               what               caused               General               Motors               to               become               an               unsustainable               business:               Government               imposed               labor               laws               on               the               company.

Without               government               rules               that               favored               union               politics               over               many               years               the               company               might               have               had               a               lot               more               control               over               some               of               their               basic               long               term               business               relationships               with               labor.

General               motors               suffered               more               than               other               companies               because               of               it's               profitability               and               apparent               success.

Government               including               the               State               of               Michigan,               The               Cities               where               its               factories               were               based               and               the               Federal               Government               saw               the               major               success               of               General               Motors               as               a               major               cash               cow               for               the               milking.

In               due               time               over               more               than               50               years,               the               Milking               became               bleeding.

That               was               abusive               to               the               company's               viability               over               many               years.
               General               Motors               was               not               a               company               victimized               by               it's               own               success.

It               was               victimized               by               Government               because               it               was               successful.

The               funny               thing               about               a               theory               like               this               is               that               it               can               lead               to               the               conclusion               that               maybe               the               government               owes               the               company               a               lot               more               than               many               people               think.

General               Motors               was               a               major               factor               in               the               success               of               America               in               World               War               2               and               all               subsequent               wars               that               can't               be               forgotten.

On               an               economic               basis               the               company               was               harmed               over               time               because               of               its               success               and               profitability.

The               United               States               is               one               of               the               largest               industrial               countries               with               both               a               corporate               income               tax               and               high               corporate               capital               gains               taxes.

For               years               and               years               General               motors               as               the               most               profitable               largest               American               Company               was               taxed               at               the               highest               rate.

These               taxes               were               imposed               on               the               company               by               a               government               that               said               it               was               doing               it               for               re-distribution               purposes.

High               taxes               hurt               general               motor's               shareholders               who               as               it               happened               were               also               subject               to               secondary               taxes               on               their               gains               beyond               the               company               taxes               paid.

The               company's               capital               was               being               spent               on               Government               services               for               everything               and               anything               that               congress               wanted               to               spend               it               on               so               the               company               had               a               lot               less               money               invest               in               its               own               future               capital               expenditures.

When               General               Motors               was               most               profitable               it               was               forced               by               coercive               taxation               to               provide               for               "the               public               good"               what               ever               that               was               leaving               it               in               need               of               going               out               and               borrowing               funds               in               the               private               market               to               compensate               for               what               they               were               giving               away               in               taxes               thanks               to               government               coercion.
               Foreign               automobile               manufacturers               have               had               a               long               term               advantage               because               these               taxes               were               not               imposed               on               them.

Only               in               America               is               the               idea               that               double               taxation               where               first               the               company               is               forced               to               pay               out               taxes               and               then               the               shareholders               considered               to               be               a               good               tax               system!

Some               of               their               major               foreign               competitors               were               not               bleed               to               death               in               the               same               manner               and               are               not               now               suffering               the               way               general               motors               is.

Just               on               the               basis               of               redistribution               taxation               one               can               look               back               over               more               than               50               years               and               say               that               maybe               the               government               having               become               such               a               major               sucking               parasite               on               this               company               ought               to               give               a               lot               of               that               benefit               they               had               back               when               the               company               is               in               trouble!

It               sounds               kind               of               novel               as               an               idea               until               one               considers               the               re-distribution               theory               of               taxation.

If               redistribution               was               supposed               to               take               capital               out               of               the               hands               of               a               successful               business               to               give               it               to               the               failures               of               society               than               it               would               seem               the               socialist               government               owes               the               company               a               lot               in               its               time               of               need.

Well,               the               hell               with               the               shareholders!

How               can               that               be               fair?

These               rich               shareholders               of               the               past               generously               gave               their               taxes               voluntarily               for               redistribution               purposes.

Each               according               to               his               need.

Now               it               seems               that               government               sees               its               opportunity               to               take               over               control               of               the               company               as               if               sucking               its               capital               dry               from               it               over               so               many               years               was               not               enough               damage               to               do.
               The               government               also               played               a               more               recent               role               in               General               Motors               inability               to               compete               by               creating               rules               where               the               company,               unlike               Walmart,               could               not               import               into               the               USA               vehicles               and               parts               that               they               manufactured               or               outsourced               overseas.

The               foreign               automobile               companies               could               do               that               but               General               Motors               and               the               other               nationals               were               forbidden               to               do               so.

Management               can't               be               blamed               for               this.

Labor               can               be               because               Labor               long               ago               lost               its               international               brotherhood               of               world               workers               mentality               and               became               highly               nationalized.

No               one               is               as               much               against               free               trade               and               against               NAFTA               as               some               of               the               big               unions               that               helped               destroy               General               Motors.

Government               tilted               the               playing               field               to               the               union               side.
               Government               also               assisted               management               in               allowing               attorneys               who               work               for               major               public               corporations               to               favor               management               over               share               owners.

Someone               could               go               out               and               buy               a               controlling               interest               in               a               company               like               GM               and               not               be               able               to               fire               management               nor               get               seats               on               the               board               of               directors.

This               has               the               tendency               to               give               corporations               self               serving               managements               with               rubber               stamp               boards               of               directors.

The               SEC               has               never               made               it               their               policy               with               all               the               rest               of               their               regulatory               overkill               to               say               that               management               should               only               take               bonuses               in               company               shares               that               they               cannot               sell               so               that               management               comes               to               understand               that               they               have               the               same               interests               as               shareholders.

No               one               is               considering               drafting               shareholder               protection               laws               because               the               lawyers               don't               feel               they               will               benefit?
               Over               the               many               years               General               Motors               success               they               paid               enormous               corporate               taxes               to               various               governments               ,               they               created               the               worker's               paradise               that               the               government               wanted               them               to               and               also               they               were               subject               to               double               taxation               of               their               share               owners.

The               company               abides               by               a               multitude               of               costly               regulations               from               environmental               ones               to               work               place               safety               rules.

GM               also               went               to               the               trouble               to               go               along               with               social               attitude               that               "they               should               give               back               to               the               community"               donating               to               non               profit               organizations               of               various               sorts               in               the               millions               or               billions               of               dollars               over               many               years.

The               company               happily               abides               by               all               rules               and               regulations               most               of               the               time               that               were               imposed               and               they               were               forced               to               give               up               their               international               free               market               advantages               for               the               sake               of               national               feelings               that               their               US               employees               should               not               be               forced               to               compete               against               their               foreign               workers               with               is               absurd.
               If               one               were               to               take               the               time               and               calculate               how               much               General               Motors               paid               in               taxes               over               the               years               and               how               many               costly               rules               and               regulations               they               complied               with               and               what               sacrifices               they               made               to               help               win               a               few               major               wars               in               a               big               way               and               then               adjust               all               those               figures               for               inflation               then               the               government               may               owe               them               more               than               a               trillion               dollars.
               Unfortunately               this               thesis               and               argument               is               complete               heresy.

What               government               owe               a               big               mean               ugly               corporation               like               General               Motors               something?

In               point               of               fact               they               do.

A               lot               of               general               revenue               came               directly               and               indirectly               from               GM.

1               in               6               jobs               in               the               country               were               once               related               to               the               automobile.

It               is               positively               amazing               how               much               the               country               does               owe               General               Motors.

GM               Shareholders               tended               to               be               losers               over               many               years               but               still               government               profited.

Now               the               workers               and               the               Share               owners               at               GM               are               on               the               verge               of               having               nothing               to               show               for               many               years               of               what               should               have               remained               success.
               The               costs               imposed               by               government               clearly               did               more               to               hobble               the               company               than               errors               of               management               or               greedy               share               owners               as               they               could               sell               out               and               a               new               owner               would               buy               the               shares.

Some               years               the               dividends               paid               out               to               share               owners               were               not               as               high               as               the               taxes               paid               to               the               government!
               So               how               come               GM               is               getting               all               the               blame?

The               government               put               the               company               in               debt               when               it               did               not               have               to               be.

A               lot               of               US               companies               pay               high               tax               rates               and               then               have               to               go               back               to               borrow               money               from               private               sources.

Someone               should               figure               out               what               GM               was               forced               to               give               over               the               years               for               the               good               cause               of               government               just               to               let               government               know               what               we               think               we               might               owe               the               company.
               My               attitude               now               is               like               most               others               who               thing               GM               needs               to               go               bankrupt               at               this               point               but               Oh               it               it               were               possible               to               sue               the               government---and               a               court               made               the               government               pay               up               then               maybe               an               argument               can               be               made               that               we               all               owe               this               company.
               GM               is               not               an               unsustainable               business               if               it               can               just               start               importing               its               products               from               overseas               to               the               US               immediately.

The               company               was               viable               just               two               years               ago.

There               is               a               lot               of               fiction               and               story               telling               about               how               we               should               think               about               this               company               having               failed               and               most               of               it               is               only               part               true               or               a               short               term               perspective               or               entirely               political               and               anti               scientific.
               The               strange               thing               about               this               argument               is               If               it               were               made               about               say               something               like               a               dam               on               a               river               the               environmental               kooks               would               all               be               nodding               their               head               and               saying               ,               "Yes,               the               government               owes               the               wild               and               scenic               river--its               freedom               from               the               dam               and               all               of               the               costs               of               regulating               the               river               with               the               dam               over               many               years.

yes               yes               yes..."               But               the               same               people               have               just               the               opposite               view               of               government's               responsibility               to               harming               once               free               enterprises               like               general               motors               over               a               long               period               of               time.

General               Motors               was               was               more               damned               by               government               than               any               river               with               a               dam.
               The               republicans               voted               down               the               death               tax               that               was               doing               harm               to               small               private               family               enterprises               in               the               same               manner               as               what               they               did               to               general               motors               and               the               government               destroyed               these               small               enterprises               by               forcing               the               owners               to               have               to               sell               them               off               to               pay               the               taxes               due.

Government               believes               its               responsibility               is               to               be               the               king               of               the               parasite               beasts               and               take               the               biggest               cut               of               anything               they               want               for               any               reason               without               having               any               obligations               to               the               consequences.

General               Motors               may               be               the               poster               child               for               this               royal               attitude.

Behind               the               scenes               people               in               government               are               plotting               a               demise               of               General               Motors               this               very               minute               because               they               intend               to               get               instant               gratification               in               getting               their               piece               of               it               or               to               be               sure               their               friends               get               what               they               want               out               of               the               carcass.

Government               is               convinced               that               it               owes               General               Motors               to               the               people               and               the               bankruptcy               lawyer               vultures               who               will               charge               $2000               an               hour               fees               because               of               how               much               they               love               the               management,               share               owners               and               union               that               loose               most               everything.

This               is               why               it               is               absolutely               impossible               to               believe               that               what               is               happening               to               general               motors               is               not               fully               intentional.

If               it               was               the               goodness               of               government               that               destroyed               the               company               in               the               long               term               it               is               the               goodness               of               government               self               interest               that               will               soon               be               serving               the               dead               body               of               the               company               as               a               hot               dish               at               their               party               to               celebrate               the               killing               of               their               parasitic               host.
               Hey               if               all               those               taxes               and               costly               regulations               were               all               for               the               public               good               than               GM               complied               with               all               that               for               the               public               good.

That               really               naturally               means               that               the               government               should               owe               it               a               hell               of               a               lot.

This               is               just               an               unpopular               alternative               theory.

Had               General               Motors               been               the               parasite               off               the               US               government               for               as               many               years               as               it               was               the               other               way               around               GM               would               be               universally               condemned               for               not               giving               back.

So               what               gives               the               government               a               pass?






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