Corporate America is eating its seed corn — and our future
https://www.theblaze.com/columns/opinion/corporate-america-is-eating-its-seed-corn-and-our-future
Has a paywall.
Excerpt:
Private equity firms are devouring healthy businesses, stripping assets, firing staff, hiking prices, and leaving nothing but debt and broken customer service behind.
“Don’t eat your seed corn.” Every farmer gets it. Every American with common sense gets it. The only people who don’t? The people who run corporate America.
A farmer keeps part of this year’s crop for planting next year. He could sell it now and pocket more cash — but then there’s nothing to plant, nothing to harvest, nothing to live on later. That’s obvious to anyone who works the land.
Capitalism creates wealth. But when wealth is extracted at the expense of the product, the people, and the future — that’s not capitalism. That’s predatory ransacking.
But in today’s boardrooms, the rule is reversed. Short-term profit is all that matters. Strip the future bare, cash out, and leave the mess for someone else to clean up.
The rewards for this corporate vandalism are massive: fat bonuses, stock windfalls, golden parachutes. The damage — lost jobs, gutted industries, shoddy products — is someone else’s problem.
And the fastest way to pull it off? Slash costs to the bone. Ship jobs overseas. Push out the people who know the business best. Kill innovation. Downgrade quality until the product barely passes as the same thing you used to make.
*****************************
Wall Street has been doing this since the late ‘90’s which coincides to when Glass Steagal was gutted. Private equity, hedge funds et al are thieves that have destroyed American business, spending their money on stock buybacks, golden parachutes instead of product development. There needs to be a reckoning for what these ‘vampires’ have done to America. They are as crooked as the DC swamp. Bringing manufacturing back to the US is a good start but more needs to be done to destroy, yes destroy, the current Wall Street and its thieves. It’ll take more than the CB collapsing to do it IMO.
World Economic Forum Appoints BlackRock’s Larry Fink As Co-Chair In Move That ‘Marks A Pivotal Transition’
https://www.weforum.org/press/2025/08/news-release/
Speaking of Wall Street ‘vampires’ Larry Fink now Cochair of WEF.
Corporate greed is killing America... we need more moguls like Lindell and Musk.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
The main problem here is what is sometimes referred to as "Financialism."
It's a side effect of the growth of distributed, ubiquitous Information Technology, which allows the suppliers of Capital (shareholders and lenders) to micromanage the business, taking control away from the operational personnel who actually know how the business operates (aside from financing activities).
A perfect example of this is all the Boeing planes crashing due to changes in the company initiated by the financialist managers who now run it.
Personally, I do not see how the clock can be turned back on this. Capital has always had the right to call the shots, but now they have been greatly empowered by the IT.
Capitalism is BY FAR the most productive system yet devised, creating far more of everything to go around; however, Capitalism has Winners and Losers. That's the essence of competition. In some cases, like processed foods and Boeing planes, one "Loser" is society as a whole in the form of receiving inferior products. The built-in cure is for competition to demonstrate greater value to Capital by providing better value to the consumers of the products.
Also, of course, there are safety nets such as Social Security to mitigate the worst of the downside effects of competition.
If you have a quality product or service the key for the immediate time being is if exchange traded, hold more than 50% shares, go private subscription or finance expansion/capital needs through ongoing operations.