Murtak wrote:Do you seriously suggest Haliburton got their no-bid contracts in Iraq and evaded lawsuits over willfully poisoning US soldiers without bribing left, right and center?
I am saying that there isn't a shred of proof for this and that you are unaware of how sole-source and government contracting in general work, so you are in no position to do anything but wildly speculate. I am calling you on that. As for willfully poisoning US soldiers, I have not seen any concrete evidence of this. Have you?
Murtak wrote:You state "if a company's profit goes down the employees pay the price". What happens if profits go up? Do wages rise accordingly? If not, your argument is moot.
No, not moot. If profits rise then the investors make the money. Want to know why? Because, though it is a hard and sad fact, people are only paid what they are worth. If anyone can do the job, then wages will remain low. And people at the bottom can be readily replaced. However, if said company is overly profiting from their worker's labor, then another company will come in and pay their workers the same wage (because the work value they produce is the same regardless who they work for) and offer a lower price to the end customer. In the long run, this keeps workers wages where they should be and corporate profits where they should be.
Murtak wrote:Why is companies earning their shareholders a profit somehow better than just paying higher wages? Why do companies even have to make a profit at all? Isn't it enough to just stay at +/- zero (with some kind of reserve)?
This is a fair question and has been asked and answered elsewhere here. I will answer it again though. Let's say you have 100,000 DM and want to open a business. You need to work 60 hours a week to run your business and you make no profit. Why are you working? You could simply stay at home and invest that 100,000 DM in the market and make at least some return while doing nothing. So, a business is in effect a gamble. The owner believes he can beat the market's average rate of return on his investment. If he didn't think he could net out 8-10% profit (about the long term gain one expects in the US market over 20 years with relatively low risk), then he
shouldn't open his business at all. Furthermore, for the risk and effort he is putting out, he had better be making more than 10% profit because he is placing his capital at more risk then if he invested in stable long term securities.
But there is another reason. Businesses operate on debt. Yep debt. Basically, if I manufacture something for sale (like an appliance), the way that works is I buy all the raw materials I need, pay my workers and pay for shipping of the finished good to the distributor. I get paid 90 or 180 days after delivery of my goods. That means for 90 or 180 days, I have no money coming in. Banks come to the rescue here, loaning out money based on the financial strengths of the company. A company turning no net profit is a huge risk in that they will not be able to pay their debts. It is seen as a badly managed company because well managed one's make a profit. And if a bank can't make a good return loaning money to a business, they would simply put their money in the market in as well instead of funding the business.
I hope this explains why a company cannot run at no profit.
Murtak wrote:No, I don't own a company. Apparently you do and have experience bribing people.
I have never bribed anyone in my life. I have been offered a number of bribes, however, over my career. Decision makers are occasionally offered these things and they can be wrapped and packaged in such a way to make you feel ok about taking them. And I can absolutely say I never took one - ever. Most people really do not take bribes to the best of my knowledge. If you have any ethics at all, it is a surprisingly difficult thing to do. I wouldn't have been caught, there was no way and that never entered into the decision making process. It boils down to being able to shave in the morning, looking n the mirror every day and knowing I made a bad decision for my employees or company for short term personal gain. I find it reprehensible that corporations and politicians engage in this behavior, knowing how it feels to be in that position and knowing that those asshats accepted or offered the bribe.
Murtak wrote:Please tell me where my analysis is wrong. To me it looks like bribes get you some sort of basic condition - a different law, a permit you get to fill in yourself, a no-bid-contract, something like that. All of these pretty much mean you get more for each dollar you put in than if you had not bribed anyone - an investment multiplier if you will. The size of the bribe on the other hand seems fixed for any given condition. If those conditions are true my point stands. Bribes make more sense the more money you have.
Oh I am not saying you are wrong here. But bribes are far more subtle than
maor munny woot! How about being forced to bribe to not suffer prosecution or litigation for some thing for which you are not guilty of but proving the issue is far too costly? How about being forced to bribe foreign governments or officials to even conduct lawful business in the host country? And surely it occurs to you that the only reason certain bills are started by your governing body of choice is so that the committee chairs overseeing those bills can be bribed to be certain they never see the light of day. Watch the US news sometime when you see everyone jockeying for a committee chairmanship. What is so important about being a committee chair, hmm?
Murtak wrote:I am sure you could run stores like Lowe's or Ikea as franchises with a couple of big warehouses in each country and small stores in the cities.
Agreed. I do not know enough about how these businesses run to comment further on which way is better or why things are the way they are.
Murtak wrote:Heck, I live in small city in Germany and there are literally dozens of small 20-employee-home stores within easy driving distance
Germany has an 8% unemployment rate (and that is good compared to its history), a debt to GDP ratio that exceeds that of the US, and a debt to GDP ratio that has grown at about twice that of the US's since 1980 or so. And this is Europe's strongest economy. This is hardly a ringing endorsement of business and economic management. Now I am not saying the US hasn't any black eyes in this area (we clearly do) but so far, the current US model has its advantages.