Think About This
Ted Folkert – October 16, 2019
Just so you know, the owners of the gold in the business world are alive and well.
The Middle-Market Merger and Acquisition market lists 140 deals, each with purchase values of between $100 million and $1 billion in July 2019. These are companies buying each other. Don’t bother totaling up that equation, the total number is enormous. If we take the average of $500 million times 140, we get $70 billion. And if we project that number to 15 months, it exceeds $1 trillion. Which means that those who own the wealth are healthy and prosperous, they are doing just fine.
These figures are not meant to be verifiable for accuracy. But they are only a real-time example of the fact that a lot of companies have accumulated enormous excess capital which they don’t need. This may be due to their cutting-edge technology or an unwavering demand for their products and services, or it could be due to exemplary expertise in marketing, however, one could question the validity of their profit motives and the integrity of their manipulation of the general public by demanding unconscionable margins of profit just because they can.
We could have a discussion of book-length about the methods which have enabled the facilitation of such profits, such as barriers of entry, monopolization, patents, copyrights, and unlimited extensions of patents, but we know about all that. The discussion we need to have is, how do we change this potential demise of the free-enterprise system to bring the market for goods and services back in line with reasonable profit margins which keep money in the pockets of those who make these markets possible.
I am sure that all the companies in the country can justify their profit margins and declare with fervor that their pricing is fair and equitable. But one thing is apparent even for the non-economic thinkers, excess profit doesn’t just fall out of the air, it doesn’t just suddenly show up on the financial statements, it isn’t fictitious. No, it is real profits earned in excess of what should be considered reasonable, otherwise the amount wouldn’t be exploding their bank accounts to the point of constantly seeking acquisitions of other companies.
We have stretched the working-class of our society about as far as can be feasibly possible by changing society from one wage-earner per household to two or more. We have forced the working class to extend their credit to the point of no return and no way out. We have increased the cost of everything in relation to previous valuations, not only for non-essentials such as recreation but to include educating our children.
The working-class wage-earners are now stretched so thin financially that with the slightest recession we could be facing economic disaster. This has been discussed at length by many of our great economic authors such as Thomas Piketty, Robert Reich, Emmanuel Saez, Gabriel Zucman, Tom Metcalf, Simon Kennedy, Peter Coy, George Monbiot, Thomas Sowell and many others. But it seems their writings fall on deaf ears when it comes to those who we have chosen to make the rules that we live by. Those who either don’t read, don’t listen, or are owned lock, stock, and barrel by the rich and powerful who finance their campaigns for elective office.
If the dreaded demise of economic disaster becomes a reality, those who have enabled the profiteers to operate without restraint will run and hide while pointing fingers at everyone else.
Election time is just around corner.
Think About This!