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Mine, Mine, All Mine


SHAREHOLDER VALUE ABOVE ALL ELSE

THE DIFFICULTY OF MANAGING A BUSINESS is in direct proportion to its profitibiity. A heafty gross margin means that, if the management wishes to, it can provide benefits and other considerations to its employees. But only certain companies have this luxery and of those on a portion want to share.

The single most deadly force in business, and yet that which makes business possible is the shareholder, the person who has invested and purchased stock in the company.

THIS INDIVIDUAL OR INSTITUTION is insulated from virtually everything other than stock price and dividends. In turn the management is only interested in the equivalent which is shareholder equity.

This simplifies managment responsibiity and decision making since such issues as do we move the factory do not cme into play. Do what maxizes shareholder value and if that means layoffs, robots, strip mining, polluting, pumping CO2 into the atmoposphere and killing the earth, so be it.

So there is a built in conflict. Spending money on doing good also affects the survivabioity of the business and its abiity to compete with similar business. So the business is in a tie that binds. What are possible solutions? One would be the good will of the business. There is no other except regulation by the government which is generally resented especialy if it is not done properly and fairly. To do it well the relevant department of government must have good management (often appointed by the president) and intelligent laws that are fair, just and effective. And application must be effective and fair.

HOWEVER, IN TODAY'S AMERICA laws are such as to permit unlimited lobbying and this sqews laws in favor of those who have the fund to pay labbiets, or whose state has laws and districts (often gerrymandered) to favor the business. So is there a solution? Yes, but difficult, which is to create fair, just competent regulations, and in an era of globalization, applied internationally. Or some other method not yet thought of.

In the United States, control and wealth has shifted prfoundly to those already wealthy be it business or indeividual and so the wealth of the country is in in the hands of only a few and to get them to put the Earth first is nye impossible. Hense the tragic difficulities we face. The only real solution if a competent government of the people, by the people and for the people. The difference from Abe Lincon's days if a requirement for scientific competence for all of Congress and freedom from religious or other irrelevant influences. Or conditions so dier that there are no other choices. We are approaching that situation.

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