Share Holders - A Rant

It has occurred to me that a shift has taken place over the course of decades. Although the pace of this shift has been slow and steady, the impact has only recently begun to be recognized in significant ways. I don't think that many have identified it's source in a coherent way. People have blamed scarcity of resources, global warming, terrorists, any number of things other than the real culprits.

Even if you own your own business, you have been victimized by this shift. For you have to buy into insurance, credit and other schemes that feed the source of the shift.

Oddly enough, there are many who benefit from this shift who have not taken the time to consider the impact of their actions. All this, in spite of the growing recognition that something has gone awry.

What I am speaking of is "Stock Holders". People who own "shares" of the industries that drive our economy, and for which many of us toil on a daily basis.

It seems funny to me that we would use the word "share" in this context. While I believe in the honesty, integrity and generosity of most people I meet, I do not feel this way about "Share Holders". It may be true that many investors have unwittingly participated in the shift. Ignorance is no excuse in my book. It is just too easy to look the other way, when you can profit without lifting a finger.

Here in the US, people have begun to whine about gas prices. And yet, it should be no surprise that this has taken place. The shareholders are demanding an increase in profits over the previous year or quarter. No recognition for the steady return based on a reasonable profit will suffice. No, there must be a steady increase in returns over time.

We have come to expect cost of living adjustments in our wages in order to cover the cost increases of everyday goods that then feed back to the profits expected by these share holders. We can no longer count on this as the demands to cut costs have begun to cancel not only cost of living adjustments, but pensions, benefits and bonuses. Again, a steady return, even if it is a reasonable profit on goods and services is not sufficient. It mus show a trend of increasing value over time.

The force of this pressure on industry has finally reached a crescendo. Businesses are continually asked to cut costs in order to increase profits. Cost cutting has resulted in a search for cheaper labor, less expensive resources, less regulation, and lower taxes. Any relief they can find, in the costs associated with doing business in order to shift from the liability column to the profit column. The voracious appetite of the "Share Holders" will never be satisfied.

Mergers of Corporations have also shifted the profits of many industries to a smaller group of "Share Holders". Consolidations of wealth and power on an unprecedented scale. "Share Holders" of these mega corporations are also flexing their muscle in political arenas to eliminate roadblocks to profits.

I recently saw a Frontline documentary on the troubles at the LA Times newspaper. Acquired by the Tribune Company, the demand for increased profit margins, in spite of margins that are more attractive than if you were to pick the average of the S&P 500 companies, they demanded more and more cuts. These cuts resulted in less investment in reporting and more aggregation of content from newswire services.

Again, we see a trend towards reduction in focus on delivering product and services. The goal is to simply repackage what already exists with a new label and pass it off as the product of value to unwitting customers. It is hard not to notice the reduced value of products these days. While costs increase we see less and less for our money.

We desperately need a movement for Equitable "Sharing". Labor should be valued at least as much as financial return on investment. Those who make product and deliver services are the engine that drives industry. Those who contribute only money have done nothing to increase the value of the products or services that are the real assets of a business. Without quality products and services there is no reason we, as customers, should continue to support the "Share Holders" of these Corporations. We have no obligation to fill their pockets.

Don't fall for the argument that the reduced cost of "overhead" results in cheaper prices for customers. We have already seen that this is not the case. Perhaps an "introductory offer" that evaporates once they have your signature on a two year contract. Or perhaps you get the product home and realize it will only last a few months under normal wear and tear. Regardless, you are not reaping the benefits of the reduced costs. The "Share Holders" are pocketing the difference.

As customers, laborers, and citizens, we do not "Share" in the wealth generated by this business model. The funnel for wealth leads to the "Share Holders". The sooner we open our eyes to this fact, the sooner we can do something about it.