Your Contribution To Corporate Welfare; or... (Full Version)

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Mercnbeth -> Your Contribution To Corporate Welfare; or... (4/11/2008 10:25:23 AM)

...What I did with my 'economic stimulus check'.

The catalyst of this post was that in reviewing my corporation's deposits yesterday I noted 5 government issued checks derived from this source. A bit surprising at first until I realized that although my clients are corporations and/or businesses; they are mostly small businesses. Thus, as is the case in the majority of businesses, their owners/proprietors qualifies for a check derived under this program.

Personally, I didn't qualify; however I'd hazard to guess I benefited far beyond any check anyone received.

For review:

Back in February Congress and the White House, in order to insure incumbent reelection passed a $100 Billion economic stimulus package. $28 Billion in the form of checks going to individuals, $50 Billion in business incentives and tax cuts.Those who were "left behind" as a result of public education and are deficient in math skills should note; although the emphasis was placed on the big check the people will be getting, there was $50 Billion allocated in the Bill for "business tax cuts". $50 Billion is $22 Billion MORE than the estimated $28 Billion going to individuals.

At the time, I thought the remaining $22 Billion of the $100 Billion 'package' fell under the standard governmental bureaucratic 'miscellaneous'.  However I didn't account for the precedent setting move by the Fed to discount the Fed Fund Rate for the Federal Reserve Banks. That accounted for the other $22 Billion.

That's where my 'payoff' comes in. My interest charge, at Prime Rate went from 7.25% in January to a current 5.25% in April. Here is the resulting impact. My average daily balance borrowed is around $15 Million. In January that was costing me an average. Per day in February that cost me an average of around $3,000/day. Currently the same amount costs me $2,200/day. In other words, the company I own gets a daily benefit exceeding the average $600 'economic stimulus' check being distributed to individuals.

And yesterday, 5 people came in a paid me with these checks. When I asked my reception clerk if they made any comment, they said that a couple did. She remembered one in particular who said; "Thank god I got this check, I was struggling trying to figure out how to pay this bill and the fuel bill for my delivery trucks." Immediately my mind remembered the initiation scene from 'Animal House' and translated the comment into Kevin Bacon's famous line; "Thank you sir! May I have another!" while being whacked on the ass with a fraternity paddle.

I am a VERY VERY VERY VERY minor player in the 'game'. Most corporations add at least 3 more zeros to numbers I cited. My lender was bragging how his name brand Fed Bank was getting money at a net cost close to 1.00%! Sure the mortgage/housing market has stabilized a bit and you can get a 5% 1st mortgage. However you better have at least 15-20% DP. Do anything less, or have a 'hiccup' in your credit and you'll be closer to 10% than 5%.

So who did you contribute your corporate welfare check to? Your local heating fuel company? Gas station? Mortgage holder? Maybe some went on a weekend vacation, paying it to a struggling entertainment corporation like Disney, or one of the Casinos. I bet some even just gave it back in the form of paying for your income tax shortage.

On behalf of myself and the other corporate beneficiaries, the devout pragmatist in me smiles and says thank you. Much of our little vacation trip to New Orleans next week will be funded through this situation. I'll participating by doing my best to economically stimulate the French Quarter and enjoying its many offered forms of luxury, drinks, and debauchery.

However there is a big part of me that shakes his head and wonders how the majority of citizens in this country got so stupid.

I'm not saying you should have burned your checks, although there would be some satisfaction in that. Instead don't use it for doing things you would have had to budget without it. Instead buy some hard currency, gold, silver; and not in the form of jewelry. Take possession of it, because the last time this occurred, some of these precious metal dealers held the commodity telling you would be better served storing your goods under their security. Meanwhile, they were selling and showing the same gold bar ten times and leaving town when they thought they couldn't con anyone else - or collected enough funds to meet their goal.

The message, which I'm sure will be lost on many -

Don't be used by the government to distribute corporate welfare.

And when you go into the polling booth and pull the lever for ANY incumbent candidate regardless of party, make sure you say out loud:
"THANK YOU SIR! - MAY I HAVE ANOTHER!"




Emperor1956 -> RE: Your Contribution To Corporate Welfare; or... (4/11/2008 10:45:37 AM)

Merc, I'm still contemplating this post.  I suspect you and I fall on very different sides of the political spectrum, but I see a lot of truth in your note.  I had a "corporate revelation" yesterday, too.  Where does it mesh with yours?

I was putting together a spread sheet for my partner.  In doing so I noted that our payroll just exceeded $4.2 million, $5 MM if I figure in benefits.  Wow.  We are a little bitty player in a niche medical market.  Yet we generate and pay out over 5 MM bucks to about 40 people who go out and spend that money to live.  And my people (very few of whom qualify for the "stimulus" because they are highly trained and highly compensated professionals) do as much to inject $$$ into the economy as anyone...but they didn't get the largesse.  Their college age kids didn't get it (because the "fair plan" cuts out full time students.  And many of the people THEY employ (baby sitters, domestics, lawn care people, laundry people) don't get the "stimulus" because it is set up to only go to those who have filed with the IRS.   So who is being bought off by this $600?  And how cheaply did they sell themselves?

E.

Edited to add:  OOOPS I forgot...have a GREAT trip.  Salute Beth with a sazerac from me!




pahunkboy -> RE: Your Contribution To Corporate Welfare; or... (4/11/2008 10:46:52 AM)

there is profit in the spread.

if $300 comes now - and bernaacki doesnt know if we are in a "recession"   ild get thousands should the ponzi scheme falls apart.

the local paper was complaining they could not get a cook to work 20 hrs a week, $6.80 an hour.  claiming the jail could IF they offerred $7.80 an hour. meanwhile they hire out for the meals.  the numbers are very scewed.  i doubt i would cook for $10 an hour.  that is nowhere in their range.





Real_Trouble -> RE: Your Contribution To Corporate Welfare; or... (4/11/2008 10:54:19 AM)

Keep in mind the largest expense for the vast majority of companies is... wages.

As in, money given to the people who work for them.  Corporations don't exist in some wacky vaccuum where they suck in money and never pay it out; virtually everything ends up in the hands of employees, vendors / other expenses, or investors in the end.  Most corporations don't sit on huge cash stockpiles just to hoard it without ever putting it to work and laugh at people (and even if they did, they are lowering prices for everyone else by taking the money out of circulation).  It's a foolish business practice.

Having said that, what I'm definitely for is lower taxes, so this "stimulus" annoys me.  Why not just fucking cut taxes, and instead insist on doing things the hard and inefficient way?

Nice.




Mercnbeth -> RE: Your Contribution To Corporate Welfare; or... (4/11/2008 11:45:41 AM)

Emperor,
I can't tell you if we fall on different sides of the political spectrum because I have no idea where I fall. I think pragmatism best describes it with a maniacal aversion to hypocrisy in all its forms. Politics brings out the most insidious. They manipulate and use the public education system to indoctrinate and dumb down the average citizen insuring every succeeding generation is less likely to challenge. I don't think it a coincidence that the majority of the top 20% of income earners in the US use private education for their children. 

For example, here in my adopted home town of LA. Our esteemed mayor supported a city wide 40 hour moratorium on shooting to commemorate the 40th anniversary of Martin Luther King's assassination. The result:
quote:

LOS ANGELES—Authorities say at least two people were shot to death Saturday, breaking a symbolic "murder moratorium" to mark the 40th anniversary of the assassination of the Rev. Martin Luther King Jr.
Civil rights activists had called for the 40-hour moratorium to promote peace. The moratorium began on Friday and is to run through Sunday morning. Police say one man was shot as he sat on his front porch and another was shot as he stood in an alley. Authorities say both shootings may be gang-related.  http://www.mercurynews.com/news/ci_8829448 


Meanwhile, he call for law comes out of a different side of his mouth than this call for breaking the law regarding immigration:
quote:

Los Angeles Mayor Antonio Villaraigosa has asked the federal government to review its immigration enforcement priorities, warning that work-site raids on "non-exploitative" businesses could have "severe and lasting effects" on the local economy.

"I am concerned that ICE enforcement actions are creating an impression that this region is somehow less hospitable to these critical businesses than other regions," Villaraigosa wrote in a March 27 letter to Michael Chertoff, secretary of the Department of Homeland Security. Source:  http://www.latimes.com/news/local/la-me-raids10apr10,1,298889.story 


The link coincidently happened to be in the current news story concerning Jamiel Shaw; an innocent victim of a gang killing alleged to have been committed by a gang member illegally in the country. Ironically the accused was arrested and released days prior to the murder. (Story: http://www.dailynews.com/opinions/ci_8820814 )

The cause of the failure to check the immigration status of this alleged murderer, but admitted gang member is the 'Special Order 40' issued to LA police prohibiting them from checking the immigration status of anyone arrested.

The LA Times had this hypocritical rationalization to add:
quote:

The emotional heat of the immigration debate finally grew so intense that it opened up several alternate dimensions, where fact evaporates and folklore guides what passes for policy discussion. In one parallel Los Angeles, police officers see violent gang members whom they know to be illegal immigrants but can do nothing to stop them because of a politically correct edict known as Special Order 40. It has become common knowledge in this world that the order doomed young Jamiel Shaw II, the high school student gunned down by an illegal immigrant gang member who roamed the streets with impunity after being released from jail because local law protected him from deportation. Source: http://www.latimes.com/news/opinion/la-ed-gangs9apr09,0,7691871.story 


One example, of many. People support amnesty for illegal aliens yet wonder why there are lower wages, and corporations have the ability to manipulate union workers. Hey - I'm not in favor of enforcing this at the individual end of the problem. I point to jail time for any individual or corporation employing someone without a legal work status. But that is seen as racist and/or paranoid by the same people wondering why there are decreasing public services and funds available for social programs for US citizens. 

Isn't it hypocritical to support amnesty for illegal workers yet at the same time claim to support unions? How about supporting a moratorium on murder, yet encumbering the hands of police with a 'Special Order 40' which could result in the deportation of criminal gang members?

I see the same hypocrisy in the fanatical following of politicians and/or a political party who would put through and con their constituency with this economic stimulus package that ultimately will put $100 million in the hands of the very people who caused the problem in the first place, either directly or from the hands of fools who got the checks and expressed gratitude.

Don't know if that helped or hurt in determining my 'politics' however I digressed and that's not what you asked.

quote:

I was putting together a spread sheet for my partner.  In doing so I noted that our payroll just exceeded $4.2 million, $5 MM if I figure in benefits.  Wow.  We are a little bitty player in a niche medical market.  Yet we generate and pay out over 5 MM bucks to about 40 people who go out and spend that money to live.  And my people (very few of whom qualify for the "stimulus" because they are highly trained and highly compensated professionals) do as much to inject $$$ into the economy as anyone...but they didn't get the largess.  Their college age kids didn't get it (because the "fair plan" cuts out full time students.  And many of the people THEY employ (baby sitters, domestics, lawn care people, laundry people) don't get the "stimulus" because it is set up to only go to those who have filed with the IRS.   So who is being bought off by this $600?  And how cheaply did they sell themselves?


The simple answer is no one person was bought off by $600. The country as a whole was bought off by the propaganda associated with this stimulus package. Proof? How many of the current incumbents will be reelected? Go to any of their campaign speeches or their websites and you'll see their vote for the passing of the Bill sited as a positive. They bought into the 'infomercial' and believed this is what was necessary for the Country to help the 'majority'. They sold themselves to a fraud and the mistaken belief that their suffering would, in the long term, help their own family or situation...someday.

The people in the economic situation you described are the target for every increase in taxes being supported by the current batch of Presidential candidates. They are also the target for corporations if they are unfortunate to be employed by one. Mid-management is a dying breed. Direct sales will someday disappear similar to the check-out clerks at Home Depot. The internet and other technology will kill them all eventually; with end users cheering on the fact that their price didn't go up; when in reality it should have gone down. Without that mid management, direct sales expense, or when service is replaced by self-service price should go down. When it doesn't the Corporation's profits are the beneficiary.

Meanwhile, they are the ones who will be paying the bill. They have nobody speaking for them, and shouldn't expect to. They aren't of the 'entitlement' class, yet they aren't in the corporate class. Their problem is their numbers, which are reducing by the day; mostly downward but for some with a pragmatic eye into the new 'class' of citizens - the 'corporate class'. These are people who have a small company to use to manipulate the impact of political agenda.

Thanks for the regards concerning New Orleans! There are plans to experience at least one sazerac, hopefully with the unique flavor of the local Peychaud's bitters. When we do we'll toast you.




Stephann -> RE: Your Contribution To Corporate Welfare; or... (4/11/2008 11:50:09 AM)

Merc,

We're really quite jealous of the vacation trip to New Orleans; but char & I are glad to have contributed to the cause [;)]

Seriously, this is an example of how democracy can be manipulated by the skilled and the brilliant, to help the rich get richer and poor get poorer.  It's an example of democracy, at it's worst, because it shows how people benefit whey they do their worst.

Warm Regards,

Stephan




Gemini1766 -> RE: Your Contribution To Corporate Welfare; or... (4/11/2008 11:54:30 AM)

Mine will go towards paying down my credit card.




KatyLied -> RE: Your Contribution To Corporate Welfare; or... (4/11/2008 12:15:26 PM)

The government will totally hate me, but mine is going directly into my savings account.  That is the thing that most requires stimulation.  




Emperor1956 -> RE: Your Contribution To Corporate Welfare; or... (4/11/2008 1:36:13 PM)

FR to two:   Merc (nbeth):  Has to be Peychaud's.  And PLEASE make it real rye whiskey.  Even though I'm partial to bourbon, a sazerac is always rye.

Stephann:  I figure I've made my boodle, and my peace with the worst of democracy.  We leave it to you young guys to fix it.   (there, that will keep him worrying for a bit *GRIN*)

E.




pahunkboy -> RE: Your Contribution To Corporate Welfare; or... (4/11/2008 2:00:18 PM)

LA has been brutally violent this year. alot of murders.

the $300 isnt much- at first i did not want it- but i will take it.

big money-  harvests out [much public property] adds little rakes in $...worse of all  it insists on all the profit while the peons absorb the risk. 

these companies fight with eachother.  no one can ever get big to threaten market share.

but now with enuff people lving the outsource thing- the reduce down is coming back at us/them/it

obama chides corp CEO pay,

http://www.reuters.com/article/politicsNews/idUSN1131749320080411?feedType=RSS&feedName=politicsNews&rpc=22&sp=true

in the 80s many ppl thought that one day with hard work they too can join the elite.  now- that same crowd has a lesser outlook.  shocked by bubbles that keep on comming.

the scary thing is the biggest bubble that WILL hit.   when boomers geriatirc-ize.   we are so screwed.




Level -> RE: Your Contribution To Corporate Welfare; or... (4/11/2008 3:28:14 PM)

quote:

ORIGINAL: KatyLied

That is the thing that most requires stimulation.  


Hmmmmmm. [8|]




camille65 -> RE: Your Contribution To Corporate Welfare; or... (4/11/2008 3:29:27 PM)

I guess I'm safe... I don't get that check!




Mercnbeth -> RE: Your Contribution To Corporate Welfare; or... (4/11/2008 3:36:55 PM)

quote:

ORIGINAL: KatyLied

The government will totally hate me, but mine is going directly into my savings account.  That is the thing that most requires stimulation.  

[sm=applause.gif] Good for you Katy! [sm=yourock.gif]
 
The Banks make an average of 3.00% on your deposit. I hope they're paying your something. I only suggest gold/silver because its purchase power stays relatively consistent in the long term and is almost as liquid as a bank deposit.




subfever -> RE: Your Contribution To Corporate Welfare; or... (4/11/2008 3:45:08 PM)

I'm going to buy more pre-1965 90% silver US "junk" coins in different denominations.
(Junk = no numismatic value)

(Numismatic = value over and above the metal value)

But I'm only doing this because I have zero debt. If I had debt, I'd probably use most of it to pay down the debt.




subfever -> RE: Your Contribution To Corporate Welfare; or... (4/11/2008 3:48:28 PM)

quote:

ORIGINAL: Mercnbeth

The Banks make an average of 3.00% on your deposit. I hope they're paying your something. I only suggest gold/silver because its purchase power stays relatively consistent in the long term and is almost as liquid as a bank deposit.


The bank will be able to lend that deposit up to 10 times over, at whatever interest rate  they are able to lend at (interest rates subject to various state limitations). 




Owner59 -> RE: Your Contribution To Corporate Welfare; or... (4/11/2008 7:54:03 PM)

Great post Merc.

How many here realize that all this money is being borrowed and we`ll have to pay it back,w/ interest?

Sorry to be a Debby Downer.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

I`m putting the $ towards taxes I owe.




DomMeinCT -> RE: Your Contribution To Corporate Welfare; or... (4/11/2008 8:03:43 PM)

I struggled with this and decided that no corporation here is going to benefit from my $1200.
I'm going to blow it out of the country on vacation in June.




Leatherist -> RE: Your Contribution To Corporate Welfare; or... (4/11/2008 8:05:12 PM)

I'm investing mine into my small business.




hisannabelle -> RE: Your Contribution To Corporate Welfare; or... (4/11/2008 8:31:59 PM)

i'll be paying medical bills and hopefully paying off one of my credit cards (and closing the account), as well as buying food for a few weeks while i continue to look for another job.

merc, i really thought your initial post was incredibly telling and i appreciate knowing this and it gives me a different perspective on this whole issue.

but honestly? i'm just glad that i have something to carry me between now and summer financial aid so that i can eat and buy my medicine while i try to find a job that i can do with my health the way it is. unfortunately those concerns take precedence over any anger due to what a serious fuck over this whole thing is.




pahunkboy -> RE: Your Contribution To Corporate Welfare; or... (4/12/2008 5:11:52 AM)

quote:

ORIGINAL: subfever

I'm going to buy more pre-1965 90% silver US "junk" coins in different denominations.
(Junk = no numismatic value)

(Numismatic = value over and above the metal value)

But I'm only doing this because I have zero debt. If I had debt, I'd probably use most of it to pay down the debt.



I have a simmiliar strategy. tho- im wondering if 40% silver coins are more practical.  suppose you barter- you know all hell breaks loose. no electricity. no atms.  you would have to be VERY hungry to trade a silver dollar for a sandwhich. sorta like a service call where the bill is $14 and the only thing you have is a $20.  you may or may not get the $6 balance.  bartering is not a far fetched scenario. look at katrina. look at how helpless stores are when the electric is out.  aday or 2 no problem,but for weeks or months,  who knows. it isnt like the infastructure  is in top rate shape. 

so in crises or worse-  junk silver isnt very  liquid.  [IMO]




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