History of the World----Part 1

[Army_of_One]

Originally Posted by Outofdodge

As to being good or bad, frankly it depends if you're someone who lost their job or had equity. In this business case model, the company may now be dropping the line because instead of a highly sought US made hand crafted piece of equipment in a high margin, low volume business is now being compared to the equipment coming from Asia which typically costs as low as 25% of this product when relabeled and sold through Cabela's or outdoor world.

Obviously if I had lost my job I couldn't be objective. If the company drops the line so be it but there are other factors that should be looked at. For example how profitable WAS that line of product. Perhaps it would have been dropped eventually anyway. I understand what you are saying but I just think that in general terms a globalized economy is a good thing although there are many things that need to be worked out because all countries don't offer a level playing field and open their markets up tariff free.

[Bubba]

Originally Posted by Army_of_One

If the market will let them sell their premium product for a higher price and they can still move that product then I guess the market forces have an impact on that. As far as moving the company to China and paying the workers 2.50 instead of 13.00 and more than likely less taxes and benefits paid also...increases their profit, minus what it takes to ship the stuff back to the U.S. to be sold. Lets see...a business increasing their profits...Sounds like they are using globalization to increase their profits. Is that a bad thing?

So, the way I read it in your response....It's a very bad thing that the liberal workers unions want their share of the big profits, in the form of higher wages. But it is perfectly fine for the CEO's and Board of Director's to be even more greedy as to do away with the unions completely and take their factories overseas.

My question to you is, why is it such a bad thing to share the wealth throughout the whole company instead of just the CEO and Board of Directors? If the workers build a product that consumers like and make the company very popular in the way of high sales of their products, shouldn't they be included in the rewards of making the company very profitable?

With your way of thinking, all of the NFL and NBA team owners should fire all their overpaid American talent and move their teams overseas and fill their team rosters with foreigners from their new "home" countries. The team owners would then make all the profit while crapping on the players who made their sports popular in the first place. Would you still watch the games?

[Army_of_One]

Originally Posted by Bubba

With your way of thinking, all of the NFL and NBA team owners should fire all their overpaid American talent and move their teams overseas and fill their team rosters with foreigners from their new "home" countries. The team owners would then make all the profit while crapping on the players who made their sports popular in the first place. Would you still watch the games?

Um...Have you checked pro basketball lately? 2 of the top 10 draftee's in 2006 to include the #1 guy was from overseas. 6 of the top 30 projected in 2007 are from abroad. 15 years ago this was unheard of. Globalization. The USA teams are filling spots on rosters with "foreigners"....AND because of it the competition has gotten better because instead of just drawing from US players we now draw from a global pool of players....Better teams...better games...guess who wins...? THE FAN which is the consumer.

[Army_of_One]

Originally Posted by Bubba

My question to you is, why is it such a bad thing to share the wealth throughout the whole company instead of just the CEO and Board of Directors? If the workers build a product that consumers like and make the company very popular in the way of high sales of their products, shouldn't they be included in the rewards of making the company very profitable?

When a company does well everyone profits. Some more than others...true. There are many ways people profit when a company does well. For example..if Walmart does really well and the stock goes up 25% the employee shares in the same profit as the CEO. Given the CEO owns more stock than the average employee but the profit percentage is the same. If a CEO make's $500,000 a year to make tough decisions, take risks, etc etc that helps that company BE successful so everyone can keep their job and not be laid off and the stock goes up making money for EVERYONE..isn't that guy WORTH a half a million...or a million...or ???

Some argue that pro-players are overpaid. First of all the market dictates what a player makes. Secondly, just like a CEO he returns what he's paid many times over in the team revenues. Say you pay player X 5 million dollars a year but because he is on the field/court the venue is sold out night after night by people paying for parking, buying tshirts, hot dogs and beer and that team perhaps wins a championship...is that guy worth 5 million dollars. HELL YES. Say someone takes over airline X and pulls it from bankruptcy and makes it a money making deal would that guy be worth a few million...YES.
How much do you think GM or FORD would pay for a CEO that could come in and make their auto company a solid #1 company world wide? They lose BILLIONS in a quarter so if someone came to them with innovative leadership, ideas and took risks and moved them back into the black...how much would that guy work? 250,000,000? SURE...why not?

[JayhawkMom]

Originally Posted by Bubba

So, the way I read it in your response....It's a very bad thing that the liberal workers unions want their share of the big profits, in the form of higher wages. But it is perfectly fine for the CEO's and Board of Director's to be even more greedy as to do away with the unions completely and take their factories overseas.

My question to you is, why is it such a bad thing to share the wealth throughout the whole company instead of just the CEO and Board of Directors? If the workers build a product that consumers like and make the company very popular in the way of high sales of their products, shouldn't they be included in the rewards of making the company very profitable?

With your way of thinking, all of the NFL and NBA team owners should fire all their overpaid American talent and move their teams overseas and fill their team rosters with foreigners from their new "home" countries. The team owners would then make all the profit while crapping on the players who made their sports popular in the first place. Would you still watch the games?

Bubba.......you rock!

[JayhawkMom]

Originally Posted by Highwayman

Hello! Do we see a problem here?

Our business just wasn't big enough to qualify for the tax breaks, lower insurance premiums, etc.

And YEA we saw a huge problem.........

[Army_of_One]

Originally Posted by JayhawkMom

Our business just wasn't big enough to qualify for the tax breaks, lower insurance premiums, etc.

And YEA we saw a huge problem.........

and knowing that did you plan for it in your business plan?

[JayhawkMom]

Originally Posted by Army_of_One

and knowing that did you plan for it in your business plan?

Are you kidding???? My husband never has a PLAN for anything. By year 7, we'd had it.........

[Bubba]

Originally Posted by Army_of_One

When a company does well everyone profits. Some more than others...true. There are many ways people profit when a company does well. For example..if Walmart does really well and the stock goes up 25% the employee shares in the same profit as the CEO. Given the CEO owns more stock than the average employee but the profit percentage is the same. If a CEO make's $500,000 a year to make tough decisions, take risks, etc etc that helps that company BE successful so everyone can keep their job and not be laid off and the stock goes up making money for EVERYONE..isn't that guy WORTH a half a million...or a million...or ???......

Very few companies give stock or stock options to every employee, so, most of those employees can't afford to buy company stock, because the company doesn't pay them enough to pay their bills, buy their clothes, and have money left over for investing.

Or, if you work for a company like the one I work for. The company match portion of the 401k plan is given in company stock, until recently. I was able to start work with my company and enroll in the 401k plan and watch my 6% company match in company stock. I watched my company stock go from $30 per share down to almost $1 per share. All the while my company paid it's CEO a million dollars, watched the CEO sell off most of the company assets, and receive multi-million dollar bonuses for doing such a good job at selling the assets. All was not lost though as the stock price has bounce back to a whopping $4.50!

I don't have a college degree, and I bet that I could have run the company into the ground for a lot less than a million dollars a year and multi-million dollar bonuses. I would have done it for 60% less money.

[Bubba]

Originally Posted by JayhawkMom

Bubba.......you rock!

I try!