Quote:
Originally Posted by John21
What they were doing post WWII wasn't much different than what we were doing during the war, i.e., running a command economy. Aside from the loss of liberty, I don't think they're any more or less effective than a free market economy so long as the talent to run them and burearacratic efficiency remain the same.
It's not like they have their wealth buried in the backyard. Their wealth mostly resides in our country's means of production, in one form or another. So whether Walmart is owned by a few Waltons or all of its employees doesn't really matter, since that goose isn't getting eaten anyway. What's actually short sighted is eating the goose by spending (potential) profits on consumption rather than reinvesting them in more efficient means of production.
Disagree.
Increasingly companies are cash hording...
- Walmart cash on hand for 2021 was $17.741B, a 87.44% increase from 2020.
- Walmart cash on hand for 2020 was $9.465B, a 22.57% increase from 2019.
- Walmart cash on hand for 2019 was $7.722B, a 14.3% increase from 2018.
Cite
Paying out an
increasing amount in Dividends
Or increasing
Stock BuyBacks
... which means they do not see the benefit or a path of Superior Returns by instead investing in the Means of Production, hiring more people and expanding their operations.
Back in the early Buffet Days a company focusing on any of those 3 was considered a bad warning sign that they did not believe in the future and that growth was achievable. It would hurt the stock value as it would be seen as a short term gain at long term expense (just as gutting R&D used to be considered bad) and since stocks were not actively traded you wanted the long term strategy in place.
But as the market became more short term focused and people became more active traders of their accounts the view switched to more short term gains, because if the long term view of a company was hurt, who cares as I will be on to the next stock.
So the result is, that when you funnel more money to the uber rich or corporations they horde it or have to redeploy it outside the country. It causes contraction in society.
If that wealth is given directly to the Walmart employees instead (they get a tax break instead of the Waltons and Walmart getting a tax break) it immediately goes back in to the economy and spurs actual growth and expansion.