Quote:
Originally Posted by PA32R
If an auto company manufactures cars (or does anything else) to enrich anyone other than the shareholders IN THAT COMPANY, they will be sued. So where is the cash flow to GM from the government (ok, I'll give you that one), the oil industry, parts manufacturers, labor, insurance companies, pension funds, .... etc.? The institutional shareholders (representing, no doubt, the retired Texas kindergarten teachers) constrain GM, Ford, and any other U.S. automaker (or automaker that trades its stock in the U.S.) from doing anything other than that which is perceived to maximize next quarter's net income.
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A good question,deserving a good answer.Kinda complicated,kinda convoluted,I'll give it a go: Both the Texas Municipal Retirement System,and the (Texas) Teacher Retirement System (just for example) are invested in all automakers,worldwide,all oil companies,worldwide,all major auto component manufacturers,oilfield service companies,metal companies,chemical companies,tire and rubber companies, insurance companies,virtually everyone associated with auto manufacture.They are also into Parts.They also (as a state) control traffic lights,collect sales tax on new and used car sales,and gasoline and diesel fuel taxes.They profit in the oil patch,they profit at the gas pump,they profit with the drivers license,they profit with vehicle registration,they profit from titles,they profit from annual inspections.When one of their $30,000 Hummers sells for $100,000 they aren't bashfull about charging their taxpayer neighbor full retail,and they are not bashfull about collecting state sales tax for a $100,000 when the vehicle is worth $30,000.--------------------- When the taxpayer's child goes to public school,the teacher never tells the students how much they screw the parents,and how stupid they are to pay what they pay and they never teach their students anything about efficiency,so the US can cuts its umbilical cord to the Middle East,then when little Johnny graduates from Texas' Public High School,he can join the Marines or the Army and go to Iraq,cause he can't afford college without the GI Bill.And because the teachers own Halliburton and other cost-plus military contractors they can be war profiteers fetching any price they like from the taxpayer parent back home.The federal govt,has it's own fuel taxes,and a profitable burgeoning bureaucracy dealing with all aspects of our automotive culture.Since schoolteacher,city,county,state,and federal shareholders make so much money with "business as usual",I suppose it's lost on them,that they could ask their own corporations for change.Since that hasn't happened since 1973,it leaves one to wonder whats important to public servants.And since we're left to learn of such things at obscure websites on the internet,instead of mass media,also owned by the government and industry(commercial broadcasting),it doesn't bode well for the future,regardless of who's in the White House.The real power lies elsewhere.