Sunday, April 02, 2006

The Ecology Spirit

Chavez forces Oil companies into a described 'modest' Contract, and the World is agog with fluxfuel in Brazil, whle a NYTimes articles describes how foreign investment provides domestic Labor losses. It is all part of the modern World, or is it?

Venezula presents a Scenario where a strong domestic leadership forces the Corporate structure to abide by a 'just' distribution of Profits between Leasse and Leassor. Unions in the International World reel under the Corporate threat to offshore their Jobs, and then Companies do it anyway. Most Economists see this and claim 'survival of the fittest' brings proper allocation of economic funding and distribution of Resources. The only Problem generated is that while Labor Wages center around some common median around the World, Labor standard of living may be falling as more-advanced Wages stagnate while low Wage Earners do also seem to stagnate.

The NYTimes quoted a statistican estimate that Corporate Profits rose from 7% to over 11% of GDP. This Author thinks the increase has been 12% to approxmately 20% of GDP since 2000. Corporate Executive and Economist use the old shell game of splitting Profits up into artificial Earnings divisions, where Everyone is supposed to treat such Structures as separate entities. These Entities absorb about 60% of the Profits generated and reinvest called Recapitalization. The Profits sent to the Canopy Corporation are much less than received, and both Canopy and Subdivision claim much lower Profits because of Operating Costs.

The Trouble arises when most of the Investment gets directed to lower Wage areas, where compatiable Technological skills can be found--mostly foreign with a lower Standard of Living. The trouble is extended when Corporations claim they cannot meet their Health Insurance and Pension benefits already guaranteed to Labor, after Stock Options have been exercised, after Stock Dividends have been granted, and after double-dip Investment schedules have been paid for. Corporations think Corporate management needs a Pay raise for such astute Planning. One Management team of about 600 received about three-quarters of a billion dollars, because they could somehow list losses of over $600 billion (I lost the Cite which was a good article). I will leave to the Reader to guess which Corporation this was (hint: It has been widely in the News as a failing Entity, and bitterly needs Pension relief) A second hint may be in order (It has invested approx. $340 billion in the same Period considered.) A third Hint? (their actual Pension bill runs no more than $10 billion, and their yearly Health Insurance bill runs about $3 billion per year.) lgl

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