31 Dec General Motors Recent Move about “Profit”
Lou Dobbs on his eponymous news magazine castigated General Motors for its recent financial move regarding operations in North America.
What do the three bankruptcies of Donald, his ties being made in Bangladesh, Ivanka’s products being imported from China, Leveon Bell sitting out the season from the Pittsburgh Steelers, a “bankable star” in Hollywood getting all the good roles, a Broadway producer looking for a play that is going to be a hit, unions trying to squeeze as many benefits as they can out of reluctant corporations and GM abandoning a plant in Lordstown, Ohio, all have in common?
Money–the making and retaining of it–is the primary driving force behind any business enterprise.
Nobody enters any business negotiation with the overarching motive being the good of the community. They create charitable foundations out of their” profits” to address these concerns and optics.
Businesses venture into depressed neighborhoods, because of cheap rent, low income workers, government subsidies and tax breaks.
When these factors are threatened with a deluge of red ink, they abandon these communities in droves.
Think about the former ghost town of Detroit or the uproar of Carrier leaving Indianapolis, Indiana.
Nobody in those automakers boardrooms, or the CEO office of that air-conditioned company were wringing their hands worrying about how John Q Public was going to make his next mortgage payment on his new house.
All companies would or should make financial decisions based on prevailing conditions in the economic climate in effect at the time of execution.
This was part of an article in Popular Mechanics in May of 2018,
Susan Cropper, 57, worked as a: Pace line assembler, electronic controls at the Carrier Plant.
“I was loyal to that company. Seventeen years of perfect attendance, never called off work. That was unheard of. I helped build that business. I participated in all the little committees, all the little games they played.
I have two master’s degrees now. How many more degrees do I need? When you’ve done the same job for 31 years, your body’s toned to only do, and lift, so much weight. I physically can’t go do what these 20-year-olds do. I’m not even gonna try.”
People, let’s get real, if you can make more money or lose less money by making a prudent financial decision, any good, practical businessman will do so.
Despite their protestations, Donald Trump or Lou Dobbs will do the same, and so should you or I.
No matter how you feel, no matter how compelling the altriustic impulse, the bottom line is this, a broke owner or a bankrupt investor cannot help anybody, anywhere at any time.
Your first obligation is to turn a profit for you and your hesitant investor or shareholder.
The fringe benefit of well-compensated employees, or satisfied city council members will always come in at a distant second.
Pay keen attention to Hyman Roth’s ominous rejoinder to Michael Corleone in the Godfather movie, “it had nothing to do with business.”