Wednesday, October 31, 2007

Taking from the Rich, giving to the poor and feeling good about it

Is taking money away from the Rich to give to the poor immoral, undemocratic or anti-capitalism?

Actually, it could be the right thing to do… If "we the people" are the ones taking it away, and NOT the government.

In our actual Capitalist system, it is perfectly normal for a Corporation to offer goods for a profit. After all, they owe it to their shareholder to produce revenues resulting on gains for everyone willing to take a risk by purchasing the company stock.

We wold agree that it’s only fair for a company that goes through the trouble of setting up complex operations such as research & development, product design, testing, trials, marketing, and everything involved on delivering a product to the public in a safe and cost-effective manner, should harvest profits for a job well done.
The level of profit will probably be relative to the risk and the markets need for the goods offered.

The problem is (and there is always a problem), we are not contemplating some factors. Mainly, the government intervention or participation on the profit generation by some big private corporation.

Lots of research and development sponsored by taxpayers money has been used and is currently used now to develop products and services that are produced and then, sold to us for a profit.

What is wrong with this picture? To start, the government is giving a helping hand to a corporation through offering funding, creating policy or just providing patents on products developed specifically for national consumption (NASA, DOD, to name a few).

To top it all, some of these companies obtain greater government handouts in the form of tax brakes, federal bailouts and exemptions, all guided towards protecting corporate gains.

Government’s intervention on private corporations obtaining record profits can’t be called FREE MARKET CAPITALISM. Now days it’s almost impossible to separate Governments and Politics from Corporations and the Market.

So, who is looking up for us? We can't expect the government to take away the excess profits accrued by so-called private corporations through questionable alliances with unscrupulous politicians, willing to hand out our hard earned money to them in exchange for votes or other favors.

Will the Judicial System help us with this problem? This is the question today.

I believe there is a chance for some type of class action litigation against companies that demonstrably have abuse the system to fatten their corporate wallet and then criticize us when we complain about price hikes.

Unfortunately, money talks. In our current system, the news media is sponsored by commercials from the same corporations that hare taking advantage of this situation.
It’s not surprising to hear the constant drumbeat in the news saying; "That is how the Fee Market works", every time there is a ridiculous raise in the price gasoline, prescription drugs, milk, or other vital products or services (among others).

It is obvious that there is no free marked for Government sponsored record profits.

We must educate ourselves about the way the Government conducts its business. We must request change were change is due. We must act now.

It isn’t socialism to take money away from supper rich corporations to give to the people it belongs to. It is JUSTICE!

They are lying to us; intimidating us and making us feel guilty or unpatriotic for having these thoughts.

What would you like to do about it?

Saturday, October 20, 2007

IS NOT THE ECONOMY, STUPID!

Why do we sit idle wile our financial wealth is disappearing? Why don’t we do something to protect our investment? Why do we feel completely helpless when told that we must pay an extra $1.00 for a gallon of milk, over $0.90 more for a gallon of gasoline, plus increases in electric, gas, water and other utilities bills?

To compounding our predicament I must add the increase in the cost of medicine and medical services, reduced coverage for us lucky enough to have a medical insurance, drastic increase in premium and de replacement of a $600.00 deductible for the $3,000.00 one. This is done while having to give a complete invasive personal profile called “Complete Confidential Wellness Assessment”, to a third party company that will grade and assign you a risk number that “can and will be used against you”, at the moment that your reduced medical coverage will have to kick in.

We must also accept quietly the increased power given to banks, credit card companies and other financial institution to arbitrarily change the rules by increasing penalties and fees to take away more of your hard earned money. This is done by designing very hard to avoid triggers that will reduce your grace period, increase you penalty fees, rise you annual interest rate; all this wile negatively affecting your credit score creating a virtual catch 22. Is this part of inflation?

I could go on-and-on about how much in the hole we really are. But, we all know it. The problem is that we are been constantly told by the government and The Media “we are doing great!” The economy is humming and we should just count our blessings.

The truth is that government reports won’t tabulate how many people are taking home less income that the previous year. No, because they are still employed, and it won’t benefit the government for us to know that. We only told the news of how low the 4.9% unemployment rate is. “HURRAY FOR THE GOVERNMENT!”

This situation is creating a slowly, but steady erosion of Americans savings, wealth, standard of living and buying power. Just like the proverbial “crab been slowly cooked alive”, we are witnessing the demise of America as we used to know it

The question remains: Why are we allowing this to happen?

One of the reasons is that we are all make participants of the dynamics that are causing this problem through the direct and indirect participation in the Stock Market. There is no doubt that government policies favor Big Corporations. Evidence of this is the amount of money and resources (over and under the table) spent by this corporations to persuade law-makes to promote laws and policies that will allow Big Corporation increase their profits.

None the less, this is not the only thing they do. While there is nothing wrong with a corporation making a profit, it’s completely outrageous that for them to obtain greater margins, the consumer is undermined and reduced to a mere source of resources for their means. New laws are created to protect corporations and the way they do business at the same time, policy changes make it easier for this same corporation to reduce benefits, reclassify, fire at will and covertly discriminate against individual or entire groups of employees. Take for example the lack of enforcement of illegal immigration laws that have created an over-abundant bank of resources threatening the legal and qualified US working force by promoting dishonest competition for available jobs (some lower skills, and some mid to highly skilled worker), lowering the pay rate and covered benefits.

Another indirect consequence is the increase load of resource consuming individuals that lack the benefits that Big Corporations do not have to pay them for been NON-DOCUMENTED workers. These savings are turned into profits, and this is just one example.

Policies that will allow companies to create the ideal conditions to force hard working, law following people to pawn gold, or go to a Pay-Day Loan agency for money to survive have also been passed further reducing us all to a lower class of individual compared to some corporations.

So, how do we participate in all this? Each one of us collaborates with this Big Corporations that are hell bent in screwing us in one way or another. This participation could be voluntary and with our full knowledge such as our direct investment in a company stock, or by the subtle participation on a diversified fund through the company 401k, IRA or any other similar Money Market type of investment. The fact is that once we participate on any of this investment we are aiding and approving or condoning these Big Corporations actions, including the ones that negatively affect us.

The indirect way of collaborating with our own economic and social demise is by consuming products and service offered by companies that due us wrong. This is the toughest habit to break. How can we say no to lower prices provided by some of the Super-Mega Chains, or pass by a lower gasoline price offered by a company, or stop banking with some Ultra-Big Bank? How are we going to say no to infinite growing credit lines or 0% closing points refinance deals? After all, our take home money is shrinking, bills and consumable prices increasing and we need to survive.

You will never se a fan at the Yankee’s Stadium dress up in white with blue stripes, face painted blue with the team’s logo, cheering for the visitor team while his own local team is wining 10 to 0.

That is the spirit created in corporate America. This is all like a game. We all participate in one way or anther, even when we thing we are not.

The problem is that “This ain’t no GAME”, or if it is, we are not the cheering fan… We re the LOOSING TEAM!

Some will argue that voting is the way we can change policy, but who are we kidding. Like it was so eloquently presented by a Comedy Central “South Park” adult cartoon, we are given the option to chose between a “Turd Sandwich and a Douche Bag” .

People, there is no easy answer, but I’m sure there is one. Do your research; don’t get your information from corporate sponsored cable news channels. The internet is free for now. So, lets us it wisely.

We can’t be afraid to read the constitution, learn a little bit about the law and history.

Let’s try to avoid some of our must egregious mistakes as a Nation!