happythoughts 0 #1 December 11, 2007 Do you care ? Everyone always quotes the stock market. That is the health of the company, not the US economy. Recent example - Hershey QuoteThe strategy, announced last week by Hershey president and chief executive Richard Lenny, will involve the loss of 1,500 jobs. Hershey will also move 80 per cent of its production volume to Canada and the US. The affected parties - The general public - It will not affect the price that consumers pay. No one should believe that the price of goods will come down and it will help the general public. The company - Will make bunches more. The economy - 1,500 people will lose their jobs. They won't be making house payments, or buying other products. People who sell those products will lose their jobs... The US economy is market driven, people buying stuff. As industries move, the number of people with buying capacity is reduced, but company stock value rises. Stock value will be short term. As the buying capacity reduces, who will the company sell to ? Then, the stock value will decline. Quote Share this post Link to post Share on other sites
kelpdiver 2 #2 December 11, 2007 QuoteThe general public - It will not affect the price that consumers pay. No one should believe that the price of goods will come down and it will help the general public. The company - Will make bunches more. Walmart has driven a lot of this offshoring (or as my company tried to call it before giving up, far shoring). It is established that the Walmart effect has lowered inflation over the past decade plus. OTOH, the costs of migration are often very high, and not always successful. The break even point can take much longer than when initially pitched. And then there is the buying side. Hershey's is probably safer from this than other companies- the whole world can buy chocolate. But ipods and GPS units? If 100% of your portfolio is domestic stocks, time to start (slowly) branching out in the world. Quote Share this post Link to post Share on other sites
nathaniel 0 #3 December 11, 2007 http://en.wikipedia.org/wiki/Keynesian_economics#Criticism The stock market historically has been a pretty good leading indicator of the economy. Individual stocks, not so much.My advice is to do what your parents did; get a job, sir. The bums will always lose. Do you hear me, Lebowski? Quote Share this post Link to post Share on other sites
happythoughts 0 #4 December 12, 2007 Quotehttp://en.wikipedia.org/wiki/Keynesian_economics#Criticism The stock market historically has been a pretty good leading indicator of the economy. Individual stocks, not so much. By "economy", I mean a lot of people. How many people are employed in the tv or radio industry in the US? Textiles ? Sure, people can leave a well-paying job in manufacturing to serve coffee at Starbucks. That is a slow decline in the economy though. The average person can't live in their stock portfolio. They live on their working wage. Quote Share this post Link to post Share on other sites
ExAFO 0 #5 December 12, 2007 http://www.weebls-stuff.com/toons/mango/Illinois needs a CCW Law. NOW. Quote Share this post Link to post Share on other sites
kallend 1,671 #6 December 12, 2007 The value the rest of the world puts on our economy is reflected in the value of our currency.... The only sure way to survive a canopy collision is not to have one. Quote Share this post Link to post Share on other sites
Hausse 0 #7 December 12, 2007 Quote The value the rest of the world puts on our economy is reflected in the value of our currency. Yeah but as soon as Bush will be gone it's gonna go up unless another complete moron becomes president. But I actually think all candidates (even the republicans) are better than Bush. To the thread poster: You are basically complaining that the companys do what's best for them and their shareholders and not for the public. Have you ever thought that what's best for the company is also best for their workers and their community? Do you seriously think that if Hershey wouldn't lay off those workers and just pay them for goodness sake they would stay in business very long? And guess what happens if they go out of business... Right everybody loses their job and you won't have any chocolate anymore. All this complaining about layoffs just makes me think how financially ignorant some people are. Have you ever thought about investing in Hershey and profiting from their good decisions instead of complaining and losing money or possibly your job? Quote Share this post Link to post Share on other sites
masterblaster72 0 #8 December 12, 2007 QuoteDo you seriously think that if Hershey wouldn't lay off those workers and just pay them for goodness sake they would stay in business very long? And guess what happens if they go out of business... I'll bet you they would stay in business. Only difference is that their CEO's bonus/salary would not be quite as high. A lot of big business decisions are made to benefit the guys at the top. Especially manufacturing abroad: pay *way* less for labor, sell the same goods for a price that's only slightly cheaper than the price would be if the goods were manufactured here at home, more profit margin and more money for the CEOs and VP's. Oftentimes, it's that simple. Be humble, ask questions, listen, learn, follow the golden rule, talk when necessary, and know when to shut the fuck up. Quote Share this post Link to post Share on other sites
Hausse 0 #9 December 12, 2007 Okey I doubt that just the managers benefit but let's assume it is like that. If they wouldn't, they would change to a different company where they make more money. And then some other managers would be needed and chances that you get the top managers without paying top wages is slim. So that would just decrease the quality of management and how good that is for the company along with not being able to fire people should be obvious. Quote Share this post Link to post Share on other sites
Remster 24 #10 December 12, 2007 QuoteEspecially manufacturing abroad: [snip] more profit margin and more money for the CEOs and VP's. Oftentimes, it's that simple. And more for the shareholders (who include fund managers, investors, pension plan recipients) who demand double didgit returns. Its really not that simple.Remster Quote Share this post Link to post Share on other sites