Thursday, July 21, 2016

Face The Facts: Excessive Greed is Often The Economic Reality!

In the run - up to the upcoming elections, we have witnessed a couple of years (or more), where there has been lots of discussion about who (if anyone) is serving constituents' needs! On the political right, we've witnessed the Tea Party, who espouses less government involvement, etc, and on the left, The 99%ers, who bemoan the fact that the vast majority of wealth and advantage, falls with the upper 1% economically. Whenever politics gets involved, of course, the issues get clouded, but to simplify the matter, to a large degree, it comes down to greed or excessive greed: Whether by the 1%, the government, or those feeling they are entitled to more (also known as shared wealth).

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 struggled, 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. While the economy has improved, especially in the United States, since the extreme depths, it stills has a long way to go, and many challenges to be faced, in the upcoming years. How much will greed play into this picture?

It would be impossible for anyone not to notice 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 even defied the economic law of supply and demand, because consumer demand for oil  actually decreased during that period. The large oil companies that profited by this said that they are entitled to a profit, which they most certainly are. However, when oil and gas rose as quickly and dramatically as it had, 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 was 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 get 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 rose to cover these increased costs, or sizes were reduced (at the same cost as the original larger size- obviously, also a price increase). Isn't it interesting, for example, that while FedEx implemented fuel surcharges when that occurred, they have not eliminated them, even though the price of gas has dropped dramatically?

My cleaner has been complaining about how his cost of packaging, hangers, plastic, etc., have been dramatically increasing. Obviously that has cost him to raise his prices, which has translated either into fewer people using his services because of costs, or higher prices to those who have continued using his service.

How foolish must our government think the average American is when showed almost no increase in the cost of living? About the only thing that has gone down was the price a homeowner had to accept if he wanted to sell his home (a situation, which has reversed itself, in the last year or so. Then, the government assesses homes at a lower price, making some individual 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.

Recently, NJ politicians have been bickering about substantially raising their gas tax. It is a political football, and a result of many, in politics, replacing reason with rhetoric and threats!

Are the 99%ers any less greedy? While there should be more opportunities, and there should be income equality regardless of gender, etc, should someone with lesser skills, education or training, automatically be entitled to earning the same amount as someone who became well educated, works hard, and uses his training effectively? The reality is, that generalities are often little more than a form of greed! The Tea Party often complains about government intervention and involvement, yet, complain, when one of their cherished concepts, etc, does not get supported by the Government. Aren't all these behaviors a form of greed and selfishness?

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.

We all have choices - complain about the greed, or seek solutions that are not merely idealistic and empty rhetoric, but viable and pragmatic?!

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