Investors creating money are destroying jobs.

Investors creating money are destroying jobs.

In the 1980s, the stock market seemed unstoppable until black Monday, Oct 19, 1987 when the Dow plummeted 22%. Corporate raiders doing megabuck deals with megadebt epitomized the collapse. Big investors carved up companies, sold assets to pay for the purchase, dumped employees on the streets, and sold the shell of a once viable business at pure profit. “Creative capitalism” small investors applauded, while they turned around and paid more taxes as employees ended up on public welfare. Then the market crashed, taxes trickled, government programs were cut, and thousands of workers were thrown on public welfare. “Sure people lose their jobs,” investors continued to argue, but that is creative capitalism. That is the problem. Creative capitalism generates dividends for investors, but throws the responsibility for keeping workers part of the economy on the back of taxpayers. Unregulated Capitalism doesn’t give a crap about workers losing their jobs. Big Money is only interested in eliminating regulations and business as usual means deal-making takes over investment. Citizen taxpayers are being outvoted investment shareholders. Personal prerogatives of big investors are creating a permanent underclass at the expense of the public. Once again the stock market is booming while employment stagnates. 4 trillion dollars in sits idle on corporate balance sheets while the Republicans who caused the economic catastrophe complain that the unemployed are costing the government money. Why invest in a new factory if there is no demand? Instead of research and development, corporations are waiting for taxes to be lowered by Republican terrorist shutdown tactics. Investors are only interested in making money, not improving the economy. Great nations are not built by investors, but by good wages. A balance sheet is dead money. It serves no one but itself. History tells us that good dividends alone only bring out the investment barbarians.  Richard Dorsey, Hacienda Heights, CA.

 

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