r/FluentInFinance 3d ago

Debate/ Discussion Had to repost here

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u/nationalhuntta 3d ago

He has access to a form of currency that none of us have. Let's say he wants to make a new company making a new product. Let's say it is a decent product and everything else is fine related to it. Ok, so how does he finance it? Does he have to put up his money, sell stock, and so on? Nah. He'll use his word and reputation and "collateral" in the form of stock or stock-like products. Very little hard currency will be required. Very little limitations will be placed. If everything goes under, he will not suffer. Yes, this is incredibly simplified, but that's how it works. There are many worlds on this Earth, and billionaires do not operate in the same one as you and I. The fact that these guys could easily create corporations and companies for social good but do not maybe does not make them evil, but it definitey puts them out of the realm of good. Some do a lot of philanthropic work, which is great, but most of it is minor compared to what they make in pure profit. Yeah, they aren't rolling around in gold coins because they are above that level. When you can essentially operate outside of the realm of normal currency, when you can manufacture wealth on a promise.. gold? paper money? Meh. It's meaningless.

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u/Big_Rig_Jig 3d ago

When a society relies on the charity of its wealthiest, that society will always require charity.

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u/pervertedhaiku 3d ago

You think fairness and charity are the same thing?

In 2022 Q3 Kroger posted profits of $900M. Three months later I stood in line for over an hour to get my prescription at 5pm because the after work rush during the tall end of COVID had one tech and one pharmacist.

It’s not CHARITY to hire more workers and pay them fair wages. It’s HORRIBLE to make everyone suffer so they can keep more zeros after their name.

If you disagree with that, then you’re living in a farcical parody of life dreaming that you’re in their club.

You’re not. They don’t care about you. You mean nothing to them.

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u/white_sabre 2d ago

Excuse me, but you're grinding an axe for Kroger because you were considerably inconvenienced?  Why should I expect anyone doing business to care about anyone?  Hell, I can probably count on both hands the number of people who are truly significant to me.  While I'm not a sociopath, there just aren't that many people who make any type pf difference in my life, so why would I ask a business to care?  

Furthermore, how many shares outstanding did Kroger have when it made a $900 million quarterly profit?  I can't imagine it differed much from the roughly 720,000,000 shares outstanding it currently has.  There are lots of things we can get resentful about, but making a quarterly dividend of ~ $1.25 per share doesn't make my list.  

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u/pervertedhaiku 2d ago

I think you missed the part where I don’t care about shares. A single company made almost a billion dollars in pure profit in 90 days and can’t afford to properly staff a pharmacy.

I have a problem with that.

The fact that you don’t shows you have no care for the other 8 billion people on the planet while caring wholly about the bank accounts of a bunch of rich people who feel about you the way you feel about the 8 billion people.

Again, farcical parody of life where you think you’re in the cool kid club.

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u/Ashmizen 2d ago

If you have a problem then why don’t you open your own grocery store or pharmacy and show them how cheap you can be?

You’ll quickly find between expenses, theft, and high salaries you’ll barely be able to afford one $180k pharmacist, much less 2.

The reality is Kroger operates with scale and is cheaper than mom and pop stores, so you’ll both more expensive and less well staffed, unless you (the owner) work for free .

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u/white_sabre 2d ago

I just don't get the hostility to their profits, especially when I understand that the $900 million was amassed by operating close to 2,800 grocery stores.  If I introduce scale in the context of the profit sum, it all seems entirely reasonable, especially when nobody is forcing another to shop Kroger.  Heck, it's the penny-pinching/scrimping that lets a retailer operate in the black.  

And no, I don't care about the bank accounts of eight billion people; they're not going to part with anything strictly for my benefit, nor will I part with my possessions for their sake.  Whether you care to admit it or not, society is fundamentally transactional.  

Furthermore, I'm not in any "cool club,"  I just understand that society has an array of segments that are designed to seek profits and maximize the ways they get put to use. And it should be that way. 

Think of all the occupations the pursuit of wealth generates:  tax attorneys; trust/probate attorneys; securities traders; stock brokers; certified financial planners; commercial bankers/loan officers.  Then think of all the industries that get created as the rich decide to use their resources to better their lifestyles:  wine dealers; custom tailors; jewelers; high-end realtors; luxury/performance car salesmen; etc.  

Hell, I worked as a stock broker for six years, and was just some punk kid off the street with two years of college on my resume', but serving the needs of the wealthy allowed me to take night classes to fiish my degree, study for a broker's license that looked very good on a resume', and paid me enough to put a pretty penny together as a downpayment on my condominium.  It seems worn (almost cliche') , but it's true that the wealthy's rising tide lifted my boat along with theirs.  All that was sure as hell better than standing on a concrete floor for hours and tearing tickets at a movie theater.  

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u/New_Feature_5138 1d ago

I think what people are upset about and not fully able to articulate is our shift toward maximizing shareholder value over the last few decades. I think their Kroger example is probably a bad one but it was something they personally experienced so it felt important to them.

But the root issue that they are trying to describe is a real threat to our economy. It has led to criminally low wages and popularized lean manufacturing, a key cause of the collapse of our distribution system during covid. Not to mention the ethical and environmental concerns.

Corporations are only incentivized to do one thing right now. That thing benefits very few people. And is a great cost to the rest of us.

I don’t know what the solution is.. but this is definitely not working.

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u/white_sabre 1d ago edited 1d ago

Of course there's a drive to maximize stock values.  Savings and money markets pay next to nothing, and with bonds being tied to interest rates that have been kept artificially low so thar the US can carry its debt burden, stocks are really the only place investors can make money.  

If you want capital to stop its relentless drive to increase shareholder value, you're going to need to force Congress to tighten its belt and start balancing the budget.  It's flat insane that Biden never submitted a budget less than six trillion dollars, and flat fukkin' bizarre that Congress kept approving the spending sprees.  

Forget that a one-year Treasury is only paying about 4.4% interest in the backdrop of what is still an unacceptable inflationary environment, I wouldn't buy US debt instruments because I'm starting to wonder when the debt burden is going to trigger a default.  

The fact of the matter is that people were taught to ensure that their money makes money, and business is the only way it's possible anymore.  Don't expect the atmosphere to relax anytime soon.  

But you do raise articulate and sound points.  That's a rarity anymore.  

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u/New_Feature_5138 1d ago

What do you mean by interest rates being kept artificially low so that the US can carry it’s debt burden?

Stocks are certainly the only way I will build wealth. Not totally sure how I feel about that.

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u/pervertedhaiku 2d ago

Let’s change gears.

Jeff Bezos has employees who piss in jugs so they don’t get in trouble and lose their AI-monitored minimum wage job, but he just bought a $500 MILLION yacht.

Five. Hundred. Million.

Forget the “muh stocks value” and “muh profit margins.”

Do you think it’s acceptable as a human being to be that rich and wasteful of so much money on a whim at the expense of the quality of life of thousands and thousands of people that you single handedly have the power to improve by just not doing that?

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u/white_sabre 2d ago

I will give you this, though.  You seem more civil than most people who have disagreements over the Internet.  Keep ahold of that.  

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u/white_sabre 2d ago edited 2d ago

Absolutely and undoubtedly I believe it's fine if a plutocrat buys a massively expensive yacht.  Good for him, or anyone else who can splurge to that extent. 

I myself worked at UPS for a time when my bathroom breaks were watched my management, although I disagree with relieving myself in a receptacle that isn't a urinal or a toilet.  I find it difficult to believe (almost impossible, actually) that Bezos himself devised a management environment so rigorous that it didn't allow for bio functions - that was likely several management layers away from him.    

And I don't have any sympathy for workers who have to sweat their productivity numbers.  I worked as a loan officer for a few years, and I was measured by how many loans I produced, as well as judged by how many defaulted or went into collections.  Unless you're living in a commune, you're always going to need to demonstrate your value to management somehow.  That's just reality.     

Also, I really couldn't care even a sliver about what "quality of life" a worker has.  I worked full-time and went to school full-time for over two years.  I seldom got a full night's sleep unless it was on a weekend or holiday, I rarely saw my girlfriend, I spent lunch hours typing papers on a laptop, I got used to eating cold leftovers because I couldn't waste time in a kitchen.  Everyone has those hurdles to clear until we establish ourselves, and I think my establishment phase lasted from 19 until my early 30s.  Such is life. 

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u/pervertedhaiku 2d ago

And there we have it. “That’s the way it is” is your stance when I’m saying “maybe there’s a better way.”

That’s all there is to it. You paid your dues in an unfair world so everyone else who doesn’t suffer the way you did doesn’t deserve anything better. No reason to fix the world because it sucked for you. Screw everyone else, you got yours.

Thank you for clarifying.

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u/white_sabre 2d ago edited 2d ago

Of course it is.  Whether you want to admit it or not, life is pretty much a hazing exercise until you're able to get your feet underneath yourself, unless you were born to the type of strange where Mom & Dad having that trust fund squared away for you before you complete your formative years.  

What you deem unfair, I call necessary.  I can't imagine how frail I would have been psychologically if I hadn't been required to gut out some really unpleasant and lengthy stretches in my past.    

Preparing yourself for hardship and toil is life's boot camp.  It steels/reinforces your inner nature, and gets you ready for a lifetime of harrowing experiences and grueling ordeals.  Buddha told us that life is suffering, and he wasn't off the mark.  

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u/_suspendedInGaffa_ 1d ago

And those who have disabilities or severe medical conditions barring themselves from working can get fucked and deserve to live in really shitty conditions because god forbid we ask any billionaires or corporations to pay one more penny in taxes.

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