Monday, December 28, 2009

Who's talking about Sheeps' clothing?

I don’t agree with John Kozy specifically, but he presents this Post which should be read. The proximate cause of American decline can be stated as the Corporate concentration on the bonus programs for top Executives. Long-term R&D went the way of the Dodo bird, lifetime pension plans went to the paper shredder, health care for workers found itself a starving child which could not help anyone, and corporate executives refuse to reveal internal Corporate operation to either Government or Stockholder. Lawyers representing the Corporate structure have been instructed to block any attempt of Information Conquest from everyone, including auditors. The scamming of Corporate resources became complete, when executives designated themselves as the sole real voters in the Corporate election structure of officers. It became a real Ride to the bottom at that point, where the sole Corporate goal was the aggregation of immediate Profits to be split into huge bonuses.

A better view of the American decline can be obtained from this Post. The structural failure of the transfer of specialized skills in Outsourcing has been a long-term qualification on the practice. The fundamental hazard of Outsourcing, though, must be Transportation. Too much Product has to be transferred too often, as too high a Price, and with a massive environmental Cost. America will eventually have to bring manufacturing back home, but will probably be after vital Skills will have been lost by the American labor force. The Piece does not mention the Pricing of the Dollar in the discussion, but the pressure of Wholesale outlets for cutting Costs mean nothing in the face of a less valuable Dollar. The real causation must be a mixture of the two above paragraphs, where the Corporations have turned to production of the quick Buck–at the Cost of everything else. They have betrayed the Employees, they have betrayed the Stockholders, they will betray their Customers, and eventually, all of America.

Here is a great part of the reason why the American business structure has failed–consider Buffett. Stockholders at Berkshire think of him as a friend, and do not do the Math; something of which Buffett himself could never be accused. He is the studied prototype of a hard-working grandfather, spending hour upon hour studying Investment decisions. Nothing of his life is released to the Public, outside of that which he has authorized. He talks to everyone as an old family friend; sometimes, even as he is planning to exterminate them. Is he a bad person? Not so that anyone can mention. His decisions at Berkshire is always what is best for himself, not Berkshire. His family will always come out well, no matter what happens; and he has planned for everything imaginable Buffett is the classic Corporate symbol–talking a Populist program, while promoting a straight line Corporate aristocracy. lgl

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