Good discussion on the economic benefits of sharing wealth between workers and business owners.
“…a new religion of shareholder value has come to be defined only by “today’s stock price” and not by many other less-visible attributes that build long-term economic value.” Here is a direct link.
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Looking at another perspective there is a tug of war between the needs of companies, shareholders, workers and society.
Take CP as an example a push was made to take replace the board by Pershing Square Capital that indicated it owned 12.2%. or the battle at Agrium where a certain investor is pushing to breakup Agrium.
With the win they put in a retired Hunter Harrison in as CEO.
Next the layoff of 1500 workers by year end and 4500 by 2016.
Ponder these thoughts
1. Why is it necessary to bring someone who is retired and does not need the job when there are many capable younger people available to fill the role?
2. Why should a special interests such as Investment Companies, Pension Plans have so much power that they can dictate the rates of returns for investors verses the jobs of hard working people and a companies direction? Is society better served by getting an extra percent or two for the select few investors than keeping people working?
3. A commentator on a radio program that Danielle occasionally appears on, many time goes into talking about taxes on corporations and investors should be lowered and that creates jobs is that really true? Ask workers at Hostess or CP. Tax rates for corporations have lowered over time, yet unemployment increases especially for the young.
4. What is the middle income wage earner’s livable average salary? The commentator whom I will say I have a lot of respect for believes it is $150,000 a year. When he talks about increased taxes for the rich he often says those making $250,000 a year would be hit hard it would not bring in much for tax revenue. I really question the numbers floated around so often that $150,000 a year is middle class and $250,000 a year is for the rich.
5. Is anyone one individual person really worth being paid millions or multiple millions a year especially when there are many hardworking people that at the poverty level or below? Will that person with more disposable income spend more than say 10 people each paid $100,000 a year?
6. How can a person who sits on the board of directors of more than one company really benefit that company? If they are on more than one company board then aren’t they preoccupied with the business of each company instead of being focused on the one?
I’m all for free enterprise but when the benefits only go to the elite few. Or the numbers banted about are not in line with reality it leaves me pondering a lot of unanswered questions. Who really benefits from our current economic model?
For those who say more Government is needed that opens many of the same questions as well as new ones.
Going back to the begining there is a tug of war between the needs of companies, shareholders, workers and society. Is the pendulum to far to the elite right now?
Unions have forced up wages in some industries to unsustainable and uncompetitive levels. I am all for sharing revenues as well but the UAW and CAW were largely responsible for the bankruptcy of GM and Chrysler. Recognize that we have to compete globally now and pushing up wages and benefits only hurts that competitive position. We can’t afford to make anything here as it is because it’s cheaper to do business elsewhere