Business and Commerce

It’s Just the Way We Roll

As an instructor of business and management that left unregulated, the corporate community will not so easily regulate themselves (the invisible hand) as so stated and believed in The Wealth of Nations by Adam Smith.  While greed is important for economic growth, excessive greed is more destructive than absolute power because of the consequences because of the surrounding communities inside the whole of society; whereas, the latter is only destructive to the one or to the few associated with the one.  Enron, WorldCom, the banks and real estate and Wall Street bear this out otherwise we would not have had the economic collapse of 2008.

And, to blame this type of business practice on the current or any Presidential administration is ludicrous to say the least.  All Presidents bear the responsibility of spending more than they take in, creating a budget deficit which then falls on the shoulders of the tax payer to pay off.  It is ethically wrong for any President (Republican or Democrat) to treat the American public like that, especially since they are directly responsible for the welfare of the American people.  This includes fighting other people’s wars just so we can push USA branding of Democracy.  We should be like patient parents and simply wait for some of these people in other parts of the world, who are now children, to grow up and mature.

One issue is for sure and that is that businesses will hire people when there is a need to hire people and not before regardless of whether or not the economy is growing and regardless of which political party controls the Congress, the Senate, and the White House.  America’s businesses have not been created or established to provide jobs, but to make a profit, pure and simple.  It really has little to do with the tax rate or the interest rate but whatever their Strategic Plan has laid out for them to do. 

Public companies report to their stockholders who have invested monies with the company in the hopes of a good financial return; and, those that are private need to generate retained earnings so that they can grow and expand and with that in mind, both need to be mindful of their expenses of which labor and benefits represents a huge chunk of money.

So, why do we blame the Political Party in power?  Ya know, that's a really good question.

Answers to that question and more, when this continues tomorrow.