danbaron
04-11-2011, 00:25
I think, over time, I've learned some things about business.
I have absolutely zero interest in business, but, from experience, I think I've learned some things anyway.
I never used to understand why corporations would buy companies.
Now, I think I do.
If the company has a good reputation, here is what a corporation will do.
Say for instance, the company makes washing machines.
And, people buy them because, they are good dependable washing machines, that last a very long time.
As soon as the corporation buys the washing machine company, it immediately begins making them cheaper and cheaper, worse and worse (similarly, the corporation begins firing all of the company's employees).
But, the customers don't realize this for a period of years.
So, they keep buying what they think are good washing machines, which are actually junk.
In that way, the corporation extracts great profit from the company during the time before the public realizes the fraud.
Then, the brand name is ruined, and the corporation either closes the company or tries to sell it to someone else.
Why else do corporations buy companies?
One reason, is to eliminate competition.
The less competition there is, the higher the corporation can raise the price, and the worse (cheaper) the corporation can make the product.
Today, you see this everywhere, for instance, Coca Cola owns lots and lots of soft drink brands that were originally independent.
Here in the US, AT&T is trying to buy T-Mobile.
According to AT&T, the reason is to make all of its customers ecstatically happy.
Does anyone believe it?
In the US, corporations bury the politicians in money, in order to get them to do what they want.
Once a politician becomes dependent on a corporation's income stream, it effectively owns him.
So, as an example, the government doesn't enforce the anti-monopoly laws.
Actually, today, with respect to almost any product, you can notice that the quality keeps decreasing.
Even when there are multiple corporations selling the same product, for instance, cars, the corporations realize that if they all make junk, people will have no option but to buy, junk.
And, if they are all making junk, then, they can all raise the prices for the junk.
It's obvious, for similar pieces of junk, Brand X will sell for approximately what Brand Y sells for.
If one raises the price, the other will immediately, too.
And, junk doesn't last long, so the corporations benefit doubly, the product is very profitable, and it must be replaced again and again.
I'm convinced, it would be very easy to make a car which lasted a million miles without major repairs.
But, that's the last thing the auto makers want to do.
If they could get away with making cars that lasted for 3 months, they would.
So, to me, business is very simple (remember, Bush Jr. has an MBA from Harvard).
It consists of eliminating competition, colluding with the competition that remains, perpetrating fraud upon the public, and bribing public officials.
Actually, I'm convinced that if it was shielded from prosecution, any corporation would sell parachutes made from toilet paper, and baby food made from lead paint.
What corporations tell the public is, "We want to help you.".
But, if they told the truth, they would say, "We want to screw you.".
And, that truth applies to even its own employees.
Every corporation does all it can to eliminate and offshore the jobs of its own workers.
I have absolutely zero interest in business, but, from experience, I think I've learned some things anyway.
I never used to understand why corporations would buy companies.
Now, I think I do.
If the company has a good reputation, here is what a corporation will do.
Say for instance, the company makes washing machines.
And, people buy them because, they are good dependable washing machines, that last a very long time.
As soon as the corporation buys the washing machine company, it immediately begins making them cheaper and cheaper, worse and worse (similarly, the corporation begins firing all of the company's employees).
But, the customers don't realize this for a period of years.
So, they keep buying what they think are good washing machines, which are actually junk.
In that way, the corporation extracts great profit from the company during the time before the public realizes the fraud.
Then, the brand name is ruined, and the corporation either closes the company or tries to sell it to someone else.
Why else do corporations buy companies?
One reason, is to eliminate competition.
The less competition there is, the higher the corporation can raise the price, and the worse (cheaper) the corporation can make the product.
Today, you see this everywhere, for instance, Coca Cola owns lots and lots of soft drink brands that were originally independent.
Here in the US, AT&T is trying to buy T-Mobile.
According to AT&T, the reason is to make all of its customers ecstatically happy.
Does anyone believe it?
In the US, corporations bury the politicians in money, in order to get them to do what they want.
Once a politician becomes dependent on a corporation's income stream, it effectively owns him.
So, as an example, the government doesn't enforce the anti-monopoly laws.
Actually, today, with respect to almost any product, you can notice that the quality keeps decreasing.
Even when there are multiple corporations selling the same product, for instance, cars, the corporations realize that if they all make junk, people will have no option but to buy, junk.
And, if they are all making junk, then, they can all raise the prices for the junk.
It's obvious, for similar pieces of junk, Brand X will sell for approximately what Brand Y sells for.
If one raises the price, the other will immediately, too.
And, junk doesn't last long, so the corporations benefit doubly, the product is very profitable, and it must be replaced again and again.
I'm convinced, it would be very easy to make a car which lasted a million miles without major repairs.
But, that's the last thing the auto makers want to do.
If they could get away with making cars that lasted for 3 months, they would.
So, to me, business is very simple (remember, Bush Jr. has an MBA from Harvard).
It consists of eliminating competition, colluding with the competition that remains, perpetrating fraud upon the public, and bribing public officials.
Actually, I'm convinced that if it was shielded from prosecution, any corporation would sell parachutes made from toilet paper, and baby food made from lead paint.
What corporations tell the public is, "We want to help you.".
But, if they told the truth, they would say, "We want to screw you.".
And, that truth applies to even its own employees.
Every corporation does all it can to eliminate and offshore the jobs of its own workers.