Cross Post from IfLizWereQueen
The Death of Anytown
Once upon a time things were prosperous in Anytown USA. There were many thriving businesses. Most of them provided goods and services for the people in the community and the surrounding region. The largest employer in the community was Widget Deluxe Factory. Widget Deluxe employed 1,500 employees—all of whom lived in Anytown. Widget Deluxe was a Wall Street corporation and its stock was traded on the NYSE. The widgets that the people made were shipped to other communities where they were then assembled with other widgets.
Mary, who worked at Widget Deluxe, had her nails done every week at Sally’s Nail Salon on Main Street. In fact, nearly all of Sally’s customers worked at Widget Deluxe. There were other Wall street-owned businesses in Anytown. For example there was a McDonalds with 30 employees. Many of the Widget Deluxe employees ate lunch there. Anytown was a bustling thriving community. And of course there were locally owned businesses as well such as Joe’s Gardening and Nursery Supplies, and Belle’s Cafe.
Then one day, over a thousand miles away in New York City, Floyd Blankhead had a brain fart. The stench of it was still lingering as he pulled out his laptop and began to powerpoint his foul inspiration. Floyd did not know anyone in who lived in Anytown. In fact, it had been years since Floyd had set foot outside of Manhattan.
Later that week, following his powerpoint presentation, a board member asked: ”But what about the people? What about the jobs that will be lost if we shut down Widget Deluxe? After all Widget Deluxe is still operating at a profit.”
Floyd airily waved the questions aside. ”Profits! Pah! What I’m talking about here is the bottom line and eliminating thousands of dollars in labor costs. Think about the benefits that our stockholders will realize if we cut the labor force by 1,500, not to mention selling off all the fixtures and the deductions that we will receive as the property deteriorates. The slack can be picked up by our Minneapolis and Buffalo operations. In this economy no one is going to complain about longer hours.”
And so began the demise of Anytown USA. Of course Sally’s Nail Salon was one of the first businesses to go after Widget Deluxe folded. Last I heard Sally had a part-time job at the local McDonalds. A lot of folks have moved away. The few that remain don’t know what they will do when their unemployment runs out.
The millionaires and multimillionaires who got their Widget Deluxe dividend statements never had a clue at what cost. In fact the irony of it all was that many of them didn’t even notice that the dividend was slightly more than the payment from the last quarter.
Anytown is just one example of many scams that Wall Street financial carnies have pulled and continue to pull on the American people. They don’t give a damn about Main Street. They live on and for the corporate bottom line.
Here is another Wall Street Scam that has destroyed thousands of USA Neighborhoods: The Scam of Making a Profit from your Losses
Indeed, the financial world of Wall Street is a true twisted Orwellian newspeak jungle where loss means profit. Buyout guys like Henry Kravis decide to buy a company. They find a company they want to buy. It may be in your community. Their goal is to make money from the company—but not by growing the company, or by hiring more people, or by making better more competitive products. Their goal is a destructive, evil and self-serving goal—to make money for themselves and their wealthy investors. To heck with the people in the community. Wall Street with the anonymity that it provides investors makes the perfect tool.
The buyout/private equity people like Kravis get some investors to put some cash down. Then they borrow the rest from banks When ordinary Americans buy a house or car, you have to pay back the loan and at interest rates much higher than the rich pay. But thanks to loopholes, created with the help of millionaire members of the US Congress, the buyout guys don’t have to pay back their loans. The company they just bought is responsible for the debt—not them.
So private equity investors like Mr. Kravis and his pals have layoffs and sell offs. [That means jobs of ordinary Americans.] The debt of the company brings other bonuses—lower taxes. That’s right. Same company same product. Just less taxes. Because of all the new debt, the company gets to pay a lot less taxes which of course means less money for schools and roads and hospitals in your community.
Then there is capital gains. When a private equity company sells the company, after they have completely gutted it, the buyout guys take 20%. That’s called carried interest. AND the carried interest that buyout guys like Kravitz collects gets taxed at only 15%. While people like Kravis make more than a million dollars a day, they get taxed at a lower rate than most ordinary Americans pay.
What happens to the roads and the schools in your community? As far as the rich Wall Street investors are concerned they don’t give a damn. After all, they don’t live in your community. They live in places like New York City and Washington D.C. They don’t give a damn.
Now do you see why I say that if you own Wall Street stock that you are part of the problem? It’s because you are.
ADDENDUM AFTER POST PUBLISHED:
And every single member of Congress who owns Wall Street stock should be voted out of office in 2012 as they are all destroyers and profiteers from the destruction of Main Street America. They don’t deserve to be paid even more money by us the taxpayers whose communities they have destroyed.
These people have not been touched by the recession not one bit. As I’ve said before, all you need to do is study the steady increases in their net worths from 2008 to 2009 on Open Secrets. There you will learn that Nancy Pelosoi increased her net worth by $24 million, Rep. James Sesenbrenner increased his wealth by $5 million. John Kerry increased his wealth by $36 million. And how about the people who live on USA Main Street? How about the people who Pelosi, Sensenbrenner, Kerry and other Congressional Wall Street players are supposed to represent? What has happened to us? Instead of increasing our net worth by even a dime, millions of us have lost our jobs and have no prospect of another. Of those of us who still have a job, 77% of us are living paycheck to paycheck.
this these Congressional millionaires have the balls to talk to us about cutting social security and medicare–about the people on Main Street whose economy they have destroyed that WE should be making sacrifices.
F THEM ALL. KICK THE ENTIRE HOUSE OF REPRESENTATIVES OUT OF OFFICE IN 2012 WE CAN DO IT. RUN FOR OFFICE AS AN INDEPENDENT IN YOUR CONGRESSIONAL DISTRICT!