The Following Story is from Associated Content and brought to you by financial advisors
The world of finance is in a mess and everybody is accusing everybody else. It is the “rich stockholders”, the CEO's, the workers demanding extra benefits, the consumers not buying enough, or to many regulators. Everyone is blaming somebody else. I went to those sources of infinite wisdom and financial advice, the Sunday Funnies.
In the early 1990's, there was a Calvin and Hobbes that addresses the situation almost perfectly. Calvin is trying to sell lemonade at $15/glass, a bit expensive even by today's standards, and Suzie Derkins ask how he can charge so much. Calvin's reply is the classic “it is supply and demand”. He then starts his tirade.
“As the sole stockholder in this enterprise I demand a monstrous profit on my investment! And as President and CEO of the company I demand an exorbitant annual salary! And as my one employee, I demand a high hourly wage and all sorts of company benefits!”
Suzie then asks about the quality of the product, it appears to be a whole lemon in sludge water, and Calvin replies “'Caveat Emptor' is the motto we stand behind. I'd have to charge more if we followed the health and environmental regulations.” Suzie goes elsewhere for a drink, Calvin screams”Sure! Put me out of a job! It is you Anti-Business types who ruin the economy”.
Who is responsible for businesses collapsing? Stockholders who “demand a monstrous profit” and CEOs demanding 'Exorbitant annual salary” certainly both share in the responsibility. Pirate captains only got a half share more than the crew in the old days, and it the ship was caught they were beheaded while the crew was fined or served prison terms! In business, like piracy, one takes chances but the pirates knew that demanding too much more wasn't a good idea!
And then there are the employees who “demand a high hourly wage and all sorts of company benefits” then either slack off at work or steal from the company. Most employees don't, but those that do share in the responsibility for the current collapse of businesses. People need to realize that a decent amount of work is needed by everybody to keep things going. A coffee room is nice, but requiring plush sofas with large screen HDTV and two hour lunches is a bit excessive; the business owner will set up some where else!
Screaming at the consumer for going elsewhere, and with the internet there are a lot of “elsewheres” to go, does no good. Lower the price and supply a better quality product. Otherwise business will be doing as Calvin does in the last frame; he goes to his Mom (Government) and says “I need to be subsidized!”
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