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To: Lancey Howard
What you say would be true if companies could always pass on all of their costs to their customers and/or employees. That is hardly ever the case. We are constantly being told, for example, how just now companies like McDonald's are having to pass on the inflated costs of food to their customers. That means that for some time they were not.

We also know of cases where companies lower dividends which is a way of passing on increased costs to the shareholders.

So it is entirely possible that a company can be fined for misbehaving and NOT pass those costs onto its employees (by firing them or lowering their wages) or onto its customers through price hikes.

It might actually end up being a hit to their bottom line which causes them to rethink their poor behavior.

Imagine that!

Lawyers may by and large be human scum, but plenty of scum rises to the top of corporate hierarchies, and plenty of scum are ready and waiting to be their useful idiotic apologists.

52 posted on 04/28/2011 3:45:48 PM PDT by who_would_fardels_bear
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To: who_would_fardels_bear
So it is entirely possible that a company can be fined for misbehaving and NOT pass those costs onto its employees (by firing them or lowering their wages) or onto its customers through price hikes.

It might actually end up being a hit to their bottom line which causes them to rethink their poor behavior

... results in lower profits and therefore lower returns for Sally Secretary's IRA, Margie Manager's 401K, Stanley Sophmore's college fund, and Tommy Truckdriver's pension, as well as for the regular Mom and Pop investors who have maybe $5k or $35k invested in some mutual fund that includes the company's stock.

63 posted on 04/28/2011 6:03:59 PM PDT by Lancey Howard
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