Tuesday, June 21, 2016

Excessive Greed & Narcissism, Are Today's Economic Realities

For several years, the entire world, including the United States, underwent a severe economic recession, with record bankruptcies, bank closures, corporate failures, and extreme rates of unemployment. However, as in all things economic and political, all entities did not suffered equally. While many people struggle, and demand for many items, including gasoline have fallen, certain companies have prospered. For example, Exxon Mobil had fourth quarter of 2010 earnings climb 53% to $9.3 billion. In light of the "spin" that has blamed oil producing nations for the run up in oil prices, it is important to understand that if prices were merely rising because of increased costs, companies such as Exxon Mobil would should revenue growth, but they would simultaneously have greater expenses, so their earning would not grown nearly that substantially. When earnings grow by 53%, I believe that this is indicative of corporate greed, where large multinational corporations benefit at the expense of the public. Certainly, corporations are entitled to profits, as long as they are fair. When there is such substantial profit being made, it is simply a form of corporate greed and the public is being dramatically impacted. Just take a look at the two populist candidates, one Democratic, and one Republican. While Mr.Sanders has emphasized the unfairness of economic inequality, Mr. Trump has used the age - old technique of blaming and complaining, and getting those who feel most impacted or left out by the recovery period, to funnel that anger, by supporting him. While large corporations, or even perhaps the so - called 1%, may have benefited, many did not fare, as well, and resent it! So, our economic reality, today, is that the combination of greed by some, and lots of narcissism (What about me?) by others, has had a major impact!

It would be impossible for anyone not to have noticed what went on, both at the gas pump, filling up one's car, or at one's home or business, with the run up in energy costs being precipitated by this dramatic price increase. This has even defied the economic law of supply and demand, because consumer demand for oil has actually decreased during that period. The large oil companies profited by this said that they are entitled to a profit, which they most certainly are, yet now, that oil prices are half of what they were, we hear newspeople actually say, lower energy prices might not be good for the overall economy!! However, when oil and gas rises as quickly and dramatically as they did, it is important to recognize the ancillary impact that has on many aspects of our lives. We all, of course, saw the obvious increase at the gas pump and when heating oil is delivered. However, since most products are delivered, at least partly by truck, and trucks use diesel fuel (which in most areas of the country is even more expensive than gasoline), the increased costs got passed along to the end user, the consumers (also known as the American public), in the form of higher prices. Anyone who goes to a supermarket saw their average grocery bill go up, as either prices have risen to cover these increased costs, or sizes have been reduced (at the same cost as the original larger size- obviously, also a price increase). Isn't it strange that although energy prices have significantly dropped, in the last 1-2 years, we have not observed the same proportion of lowered prices, as we saw raised ones. FedEx still charges fuel surcharges, and prices at the pump, seem to always go up faster, than they go down.
 
My cleaner complained about how his cost of packaging, hangers, plastic, etc., had dramatically increased. Obviously that caused him to raise his prices, which translated either into fewer people using his services because of costs, or higher prices to those who have continued using his service.And, his supplies have not significantly gone down in cost, nor have his prices, now that energy costs have dropped!

How foolish must our government think the average American is when they are showing almost no increase in the cost of living. About the only thing that went down is the price a homeowner must accept if he wants to sell his home. Then, the government assesses homes at a lower price, making some individuals think that their real estate taxes will also decrease. However, all that actually happens is that the taxing authorities raise the rate taxed per assessed dollar, so again the individual takes the brunt of the pain.

Corporate greed, combined with governmental "spin" and inability to create a system to protect the average American during these times, has made these economic times trying, at best, for most Americans. We have laws known as usury laws, that protect consumers against unfair loan practices, where greedy loaners charge excessive interest for loaning money. Isn't corporate greed simply another form of usury, with even worse ramifications to the country and its economic health and well-being? And, why is it reasonable for anyone to believe, on the contrary, that people who are less skilled, educated, etc, should be paid on parity with those who perhaps work harder or are more skilled?

Proponents of rapidly raising the minimum wage are well - intentioned, but seem to overlook the possible ramifications. If labor becomes too expensive, and significantly impacts profits, businesses will address this, by hiring fewer workers, for less hours, or automating to reduce their burden! If only we could all work together, in a sane fashion?

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