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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?


To: Maurice Winn who wrote (76887)7/27/2011 4:40:12 AM
From: TobagoJack  Read Replies (1) | Respond to of 218645
 
<<the companies don't need loans>>

and satellites do not need wings :0)



To: Maurice Winn who wrote (76887)7/27/2011 7:03:23 AM
From: elmatador1 Recommendation  Respond to of 218645
 
The US grew out of winner takes it all. Late 19th century provided big opportunities to take wealth since it was being created in a scale never seen before in the history of mankind. Hence the large American corporations.

"the large American corporations used trusts to conceal the nature of their business arrangements. Big trusts became synonymous with big monopolies. The perceived threat to democracy and the free market these trusts represented led to the Sherman and Clayton Acts."

Source: Trust busting wikipedia

The large American corporations had stockholders:
"Stockholders toil not, neither do they spin, to earn [dividends and share price increases]. They are beneficiaries by position only. Justification for their inheritance... can be founded only upon social grounds... that justification turns on the distribution as well as the existence of wealth. Its force exists only in direct ratio to the number of individuals who hold such wealth. Justification for the stockholder's existence thus depends on increasing distribution within the American population. Ideally the stockholder's position will be impregnable only when every American family has its fragment of that position and of the wealth by which the opportunity to develop individuality becomes fully actualized."

Source:Gardiner C. Means, The Modern Corporation and Private Proterty (1932)


As the US developed into the Depression Era, to restart it became necessary to re-distribute that wealth. The New Deal addressed that.



To: Maurice Winn who wrote (76887)7/27/2011 7:48:31 AM
From: elmatador1 Recommendation  Respond to of 218645
 
As New Deal policies re-distributed that wealth, collateral effect was: population started becoming dependent of the government and on big institutions.

Starting the 80's, wealth-production capacity diminished, (Big companies sent the jobs abroad)
but population still dependent on government and on big institutions. Debt was the result.

Government had to take a lot of burden to keep people employed as big corporations sent the jobs abroad. Thus cheap capital that created bubble.

As economy hollowed out, tax money started slowing down. But the population was still used to a given level of service. And more debt was created to keep services running.

Today big corporations are happy with the profits they make abroad on skyrocketing emerging markets and a -relatively- emerging markets' educated population can (still) do cheaper than at home.