Maybe Occupy Wall Street is right. Maybe initial fault is with Wall Street for setting a standard. A standard that, if accepted would force business to become so selfish, the entire global economy would suffer.
Who said that standard had to be the acceptable standard? I guess all of business reverts to this standard.
The premise for the standard is, in example, a company profits $10 million, why not $12.5 million? If reached, why not $15 million? The cycle continues over, and over. There is never an end. Being continually profitable at the same level isn’t good enough, and earns mediocre grades.
Every year, the above example is right around $10million profit. The company had taken many years of growth to achieve that profit plateau. You can count on that company every year but, that isn’t good enough.
Each year, Wall Street is looking for growth. No plateau is good enough. Comparative earnings is a key factor in any arithmetic for the stock to fundamentally achieve an upward trend. Coming in at $9 million net profit following a year of 10 is unacceptable, and the company is held in contempt.
To continually earn more, a company has to go somewhere to reach an earnings increase, not only year after year but, it is scrutinized quarter to quarter.
So, what does the successful company do to achieve Wall Street’s expectations? Increase the price of their product or, service. Raid payroll. Raiding payroll begins at the bottom, up. By the time the top is reached, the compensation is still more than liveable.
Those earning the comfort for the top must sacrifice. The rising price spiral is now out of reach for many workers just trying to get by.
Those at the top receive a penalty in that they now pay more for a service or, goods to compensate for those no longer able to purchase as they once did.
Less sold at a bigger profit for each. It becomes harder to make the Wall Street expectations or, at minimum no different than before. Just as difficult but, in the process someone goes down.
Perhaps a plateau of earnings, each quarter, each year shows stability. Strength. There is profit to be had, and plenty of it. So what if one quarter the company profits $4 million, the next 3 followed by, 3.9 then, 3.25, and finally 4.5. What if that’s achieved without the price increases or, the payroll cutbacks?
Maybe Wall Street takes itself way too seriously with a boatload of mathematical indicators, and calculations beyond the necessity of figuring the profitability of a company.
Even then, private business has adapted the same criteria for success. Continually upward or, it’s not good enough.
The most successful businesses are before anything else, innovative. How do we take our product or, service, and stretch it down a new street? The focus is on forward not, on how to raid the existing company, and the employees responsible for the existing profit.
What if, Wall Street frowned on price increases, and payroll raids? What if, only successful innovation scored points? We would be at an unmatched economy motivated by, more successful people buying more products, and services.
We have come to accept these configurations as a way of life, and look where most of us are because of it. This is unacceptable!
The current path, by the numbers, is unsuccessful. Wall Street is on a losing streak.
A ‘Wall-Fall’ is possible for this, and many other reasons.
Related Articles
- Wall Street’s Reduced Profitability Shows Regulations Are Working (huffingtonpost.com)
- Occupy Activists Retake Wall Street while police focus on New Year’s Eve in Times Square | Common Dreams (2012indyinfo.com)
- Wall Street headed for a year in the black, barely (mysanantonio.com)
- NYPD Arrests 68 Occupy Wall Street Protesters (theroot.com)
- Occupy Wall Street Donations Nearly Grinding To A Halt (huffingtonpost.com)
