Posted by admin on Feb 2, 2009 in
Corporate Welfare,
Financial Rants Recent news reports are filled with corporations on welfare still spending money hand-over-fist. These companies begged the Congress and the American people for money to just stay in business. They blame the current economy for their problems and refuse to take any responsibility for their problems.
American families have always been advised by financial experts to save money and invest wisely during good times in order to survive the bad. Apparently, corporate America didn’t think that advice applied to them. They squandered their profits during good times and then beg for money during the bad times. Not only that, but they still continue their self-destructive habits, some citing tradition.
According to Good Morning America, Bank of America may have spent upwards of $10 million on Superbowl ads and related activities, citing tradition. How many American families had a tradition of taking a vacation every year and can now no longer keep that tradition alive? B of A allegedly refused to disclose any information related to their spending habits.
Well, I say enough is enough. They are on welfare. No matter how you look at it, they are no different than any family on welfare. Full disclosure should be required in order for them to receive any taxpayer funds. If they refuse full disclosure at any time, then the ‘loan’ becomes immediately due and payable and they are no longer eligible for any further assistance.
If American Families are being asked, nay, required to downsize their spending to only the essentials, so must corporate welfare recipients. American families are forfieting their summer vacations, dinners out, movies and other entertainment to the failing economy. Corporate welfare recipients and their management must be required to do the same – no more golf junkets, no more retreats to exotic destinations, and definitely no Superbowl.
It is time for Congress to wake up and require accountability from those we are bailing out. It’s time to require them to be responsible and run their businesses responsibly. It is time for corporate greed to end.
Tags: accountability, Corporate Greed, Corporate Welfare, disclosure
Posted by admin on Nov 20, 2008 in
Corporate Welfare The Big 3 execs showed the nation over the past couple of days their arrogance and disregard for the American people, specifically those employed in the auto industry. They show up with their hands out after arriving in private jets and are dismayed at the lack of congressional support. As one lawmaker put it, it is like showing up at a soup kitchen in top hat and tails. I’ll add to that and say they also arrived in a chauffer-driven limousine. That is a slap in the face to the American people.
I say No, No, NO to bailing them out. By them I mean the CEOs and other top executives. Unfortunately, any failure of GM, Ford or Chrysler will NOT have much effect on the company execs making millions of dollars a year, but will devastate the men and women who actually do the work. I think I would be OK if I ost my job went this year If I brought in 28 million dollars last year.
In fact, they will probably lay off thousands of workers and garner a bonus for themselves. Even if they get ‘fired’, they still leave with huge severence packages. That’s the gig to have. Be a CEO for a major company and screw up. You still walk away with more than most people make in a lifetime.
So, in order for about 3 million people to remain employed, my bailout plan would stipulate the companies adhere to strict policies before getting any help:
1. Reducing the salaries of the CEO and Executives to no more than twice the highest salary of any non-executive employee. Including stock options and any other benefits.
2. Require the liquidation of any assets not directly used in the manufacturing and shipping of the product. This means selling off the fleet of airplanes and any other extra perk. Even flying first class would have saved about $19,000 on the round trip to Washington.
3. Require a top-level restructuring plan be approved by Congress. Cut redundant executive positions first.
4. Require a detailed accounting of how any bailout money would be spent.
5. Require a payback term of no more than 10 years.
There are a lot of sanctions we could and should put upon any company requesting public funds to save their ass. It was mis-management that got them into this in the first place. I don’t hear American-based foreign automakers whining.
Post your ideas to comments.
Tags: Automaker, Bailout, Big 3, Corporate Greed, Corruption, Waste
Posted by admin on Nov 19, 2008 in
Corporate Welfare With AIG already swimming in billions of taxpayer dollars, the big 3 American automakers showed up with their hands out to Congress wanting a mere $25B. When I say showed up, I really mean that they flew in in private jets from a fleet of several. According to Good Morning America, the cost for them to fly in from Detroit to DC in $36 million planes was an estimated $20,000 roundtrip as opposed to Northwest Airlines $288 for coach and $837 first-class.
Middle-class Americans are having financial problems, too, but there is no bailout for us. We are being told to tighten our purse strings, eliminate extras, review our budgets, etc. If a family has 4 cars, well sell two. If we have satellite or cable TV, well maybe we should cancel those for a while. Cut back on cell phone plans. If you want government assistance, you must first liquidate any extras you have.
We need to hold the corporations who are coming to Congress with their hands out to the same standards. Companies should be forced to liquidate all non-essential perks, like a fleet of jet airplanes, cut administrative salaries and do all they can to trim up the top fat before coming with their hands out. Start cutting at the top. Ford CEO’s salary of $28 million can be cut drastically and he would still live better than most of us. Sell off the fleet of airplanes. That will recoup a couple hundred million dollars, as well as losing the insurance, maintenance, etc. that goes along with owning airplanes.
The foreign automakers in America are not asking for money. If they can do it, then why can’t we Americans do it better?
The time for corporate greed and waste is over. If your corporation is going to come begging for money, you better damn well have used up what you have and trimmed where you can.
Tags: Automakers, Bailout, Corporate Greed, Corruption, Waste