Okay, I may not be the smartest kid on the block, the sharpest knife in the drawer or the greyest of the grey squirrels but I am a graduate of LSE (no, not London School of Economics but the Lone grey Squirrel Elementary). In my simple world, you buy and sell; you make a profit and that’s good; you make a loss and that’s bad. Or…..if you have one nut, that’s okay cause at least you get to eat. Have two nuts and you eat one and you bury the other – that’s called “saving”. Have no nuts and you are a dead squirrel. See, simple. In my simple world, 1 + 1 =2 (I’m fairly sure that is right).
So what is this rant about? It’s about how the world is greedy and is run by GREED economics.
My tiny brain first began to rattle in my skull when I read the news headlines last week which said, “Apple Posts Disappointing Profits”. Now please paws, I mean pause to think what a disappointing profit might mean to you. For me, my salary is pretty disappointing cause I seem to be able to buy less and less nuts with that amount.
Now to be fair, it wasn’t Apple who said that their profits were disappointing but it was analysts and shareholders. So just how bad was the disappointing Apple profits? Was it a mere million? Was it down 50% from the same period before? Well, apparently, Apple reported its third quarter earnings last week and it showed profits up 21% year-on-year to USD 8.8 billion and revenues up 23% to USD 35 billion.
In Haiti, people are fortunate if they can get USD 2 per day to live on. Do we really live in the same world?
And then, there is the report earlier this year of Verizon. It is alleged that the company made record profits in 2011, raking in more than $2 billion, while using tax loopholes to get out of paying any corporate income tax. To celebrate, they apparently then laid off 330 workers citing declining use of one of their products!
And this is not an isolated case. For example, there is Merck – a pharmaceutical giant! It was reported that Merck’s second quarter report for 2011 showed that profit rose to $2.02 billion, or 65 cents a share, up from $752.4 million, or 24 cents a share, a year earlier, helped by a $1.34 billion tax benefit. In the same breath, the company announced the axing of an additional 13,000 jobs.
And there was another recent case of an Australian Mining Company that posted record profits but is also downsizing to maintain their profit margin ( I could not re-trace the story but I did read it somewhere).
So, okay. I just don’t understand this sort of economics; nor do I think I want to. Something is amiss with the GREED economy.