Monday, February 04, 2008

Galesburg - Are Corporations Most Loyal to Their own Bottom Line? 2/04/08

In Saturday's JS an article contributed by the JS's owner reads, "Galesburg wants Maytag jobs back". "Company closes Mexico facility where work was moved after plant closure". The headers are misleading. The article states that Maytag was sold to Whirlpool some time ago. So it hasn't been "Maytag" for a couple of years. The article doesn't state that Whirlpool's stock is down from a 52 week high of $118 to $81 today. The unions and the politicians are saying that if it wasn't for corporate greed, Maytag would still be in Galesburg and that Mexicans can never compete with the quality of midwestern workers.

That begs the question of why approximately 7 million illegal Mexicans are employed right now in the U.S.?

Further into the article, where most people don't continue reading, it says that production was shifted to an existing Whirpool plant in Mexico and that a former U.S. Maytag plant was shifted to another U.S Whirlpool plant. Sounds like sound business decisions. That why I put in a buy order for WHR today.

Corporate bashing is becoming more popular with the uneducated, poorly educated, lack of common sense leadership; both union and management, and those wrapped up in computer games, watching and listening to Hollywood ultra liberals and types. Recent reports indicate that high school students cheat on tests; most of these students move on to be workers and a many become managers. These days a lot of people cheat and it seems okay. (Which comes first, the chicken or the egg?)Teachers can hardly say that a lot of athletes and corporate types such as World Com, Enron and many UN supported companies cheat when some teachers and most students also do.

Corporations and almost all companies are in business to make a profit. So, without profit, no company anywhere. But that answer does not satisy the unions or the more populist politicians. Probably why they aren't business people or if they were, some of them didn't do too well. Corporations and many companies offer jobs and benefits to their employees, who would not have a job but would probaly live on one type of welfare or another. When competition causes companies to make changes to stay in business, they make changes. Sometimes if they find that communities no longer offer original advantges, they lay off, change products and marketing procedures, look for lower costs of production, or relocate. So they are going to disappoint some and delight others. If stockholders see the value of their stock go down, they demand changes. Corporations must have stockholders who demand a return on their investment if they are to stay in business and provide jobs for somebody someplace.

Here in Peoria, you hear both private business types and competent union leaders decrying the lack of trained and trainable people to fill the jobs locally and many of these jobs are being taken by "outsiders". Many are coming from Knox County.

I just put a buy order in for depressed Whirlpool stock. It's my money, I buy their stock and I expect them to help me make a living off my stock investments. Management either does that or the company is sold, merged or goes out of business.

Or I sell my stock at a loss. Do you know of anybody who is "happy" when their stock goes down and doesn't recover?

Too many people are expecing someone besides themselves to look after their lives. Corporations and companies that look after their employees expect the employees to look after them. With polls showing that 75% of the people living in the U.S. are disatisfied so there must be a lot of disappointed people; mangagers, politicians, workers, union and non-union, kids and coporate types.

If so many people are disatified why are people from every country in the world trying to get into the U.S. while so few U.S. citizens are moving out?

It is obvious that Galesburg is one of those communities in between other larger cities that offer more attractions.(See my recent blog) Galesburg,like Peoria, must make their communities more attractive to businesses and newcomers who would find "middle cities" affordable places to live with good schools and reasonable safety. Otherwise, position themselves to afford what they currently have and get their priorities in order. Come out of denial as to who they are, cut spending and reduce taxes. Stop buying what they can't afford.

Listen carefully what ALL politicans are saying because some are promising to "put a chicken in every pot" including those who could work but find in our growing socialist state, why work or get educated? The rich can afford to share, so as Hillary says in her article in tody's WSJ "My Plan for Shared Prosperity," "We don't need more government burueacracies to raise everyone from poverty to middle class." But almost every program she would put in place costs more money from taxes. If the first year of a Democrat Congress is any indication of cost cutting, look out in 2009-12. They can blame Bush for another couple of years. Then even the dumbest among us should be able to figure it out, that it is not Republicans or Democrats but the people we elect. Even those uneducated should be able to figure it out.

I always remember my Dad's saying, "IF frogs had wings they wouldn't be bouncing around on their buts".


Merle Widmer said...

Whirlpool stock went up $8 today making all stockfholders happy. Probably most employees also.

Merle Widmer said...

yes, I did buy at $81.25. Sold today at $93. Yes bottom line is what investors are looking for or they would not invest and there would be no public companies.
There are times in life when no one wins but ususally their are winners and losers. Most all of us have a choice unless we elect Obama where he shows he may be a divider. Meaning he divides what the winners win among the losers.

I'ts called socialism.

Anonymous said...

Hey, what a good trade, good due dil. Congrats