Sunday, March 19, 2006

Corporate Activity

This Author opens the NYTimes, and finds Congress prepared to grant leniency to Corporate contributions to the Pension Fund. I turn to the AP, and find that Corporations are not paying their assessed Federal fines to the tune of $45 bn. Every article on all the Business News services are ready to pity the poor Corporations, who have such liabilities despite Years of the highest Profits in history. Is there something wrong with this Picture?

Why is it that Corporations can commit to billions of Dollars of liability under Buyout arrangements, and can pay their own Corporate Executives higher than ever before in history, but cannot meet made or quarranteed commitments to their own Labor force and the Consumers. One must remember that Stockholders also miss out on the largesse a portion of the time, considered part of the lumpen proleteriat. No News service mentions that the bills by Congress excuse all past default of Pensions to Labor unless specified, and mildly grant a freebee to Corporate Pension contributions for twenty years. The free one hides in the amount of Pension contributions (real) which will be some thirty percent less than the negotiated quarrantees to Labor, in terms of total amounts of future defaults. The Corporations at least have a friend in Congress, even if no one else does.

This Author still awaits an economic assessment of the total estimated amount of unpaid Stockholder dividends go to political contributions to Congressional and Presidential campaigns in percentage amounts. Your great-grandchildren, if they become economics historians, could possibly have an answer in their later years. lgl

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