Hi, Welcome to BIG, a newsletter about the politics of monopoly. If you’d like to sign up, you can do so here. Or just read on… Today I’m going to write about the giant corporate bailouts that are coming and how to structure them so they aren’t totally crooked.
I just joined as a subscriber thanks to hearing you on "Le Show" Your premise about the lack of capacity to make our own medicine or masks is something I've mused about for years. I am reminded of the call-in show years ago when I heard a Wind Turbine manufacturer lament how he could not get bearings because the Chinese company that was the sole source was prioritizing their domestic production. Coincidentally I was driving past the former New Departure Hyatt plant which among other bearing manufacturers had long ago been shuttered.
Great precis of how business got screwed up in and since the Reagan administration. Thanks.
I agree in general with this article and especially with comments re: Boeing Below is an extract from a recent article I'll link below. Boeing's sheer corporate irresponsibility is appalling, especially now that they will come pleading for help......"This mad scramble for cash and the existential urge to “preserve cash in challenging periods” comes after this master of financial engineering – instead of aircraft engineering – blew, wasted, and incinerated $43.4 billion on buying back its own shares, from June 2013 until the financial consequences of the two 737 MAX crashes finally forced the company to end the practice. That $43.3 billion would come in really handy right now"
Link to full article: https://wolfstreet.com/2020/03/11/boeing-crashes-as-43-billion-in-past-share-buybacks-turn-into-existential-threat/ Thank you Matt for bringing these practices (and solutions) to light. Am about half through with "Goliath".
My biggest fear here is that Boeing is going to come looking for a handout.
We've got a golden opportunity to have a better flying experience if Boeing decides not to reopen the 737 line and immediately develop a better aircraft with a crash program. If we don't, the Chinese Comac C919 and the Airbus A320 will squeeze it and the U.S. aerospace industry will be doomed.
Boeing used to be a great aircraft maker: I remember when the 777 came out and thought that one day we'd be getting a replacement narrowbody, but we know now that Boeing's business plan is to still sell the 737 in 2060 even if they're making a starship for NASA. Boeing's core competency is playing the government: despite getting slapped for corruption, they have still managed to get a contract for making tankers for the USAF -- and they've screwed that up with a tanker that wrecks the aircraft it is supposed to refuel. The pointless Space Launch System is a boondoggle that evaporates billions while putting our space program in reverse gear.
Stop what you are doing and call your congresspeople NOW to make sure Boeing gets tough love that will keep the aviation industry alive in the US for the long term.
Great ideas! While we’re at it, how about we eliminate the liability limits corporations enjoy; or just eliminate the corporate form altogether. If they no longer exist, they will no longer be “natural persons”, so will loss their “right” to freely “speak” with their money in our elections. Now is the time for radical action!