Originally Posted by Heyitsgary

Thanks all for the comments.

Bill- I agree in principle to almost everything there. I absolutely agree that people making their choices is as big a driver into some of the issues we face. I'm often confused when I see people I know out for dinner who told me last week they had to struggle to pay the electricity, then pull out a new iPhone X to check something online. Absolutely befuddled by it. I might even agree that those choices would continue to be bad, even with new opportunities in front of them.

Again, was just something swimming in my head recently.

Originally Posted by Lainey

^
This is true. Everyone has different priorities. Some feel it's hard to set aside any money for the future, or to pay current expenses promptly, yet they do have the toys, and don't hesitate to dine out. Living more in the moment, I guess.

Originally Posted by Heyitsgary

I don't expect this to stay non-political, but let's see....

So, I was thinking about this a little bit, and last night's speech triggered my thoughts a little more. I'll try to stay on topic here, but my thoughts are kind of all over.

In the past, I've commented that, often, (this group being representative of a pretty well off part of the population), that we're paying slightly more for X and Y at the store, to reap the benefits of similar sales for the entire population that increases value in our 401Ks, portfolios, and other investments. Well, let's continue on that thought. Some of us may not shop at Walmart, but sure get the benefit of the 1000s of people a day at each store buying everything they need when their stock price increases and our retirement funds have some in there.

I think every public company has some mission/goal/etc that states "provide shareholder value". Either dividends, stock price increase, or something. Well, who benefits from that? People who can afford to put money into those investments.

The tax breaks are announced. Companies say (very generally here)- We're giving out a $1000 bonus to XXX number of employees. That's a one time, short term windfall that will no doubt help many of them.

So, back to the 401K side-- what about the minimum wager earner? What about the working poor? Those who struggle check to check? Most likely, they aren't the ones that can afford to put away $25 a check or a month to fund any kind of retirement or investment tool to get the benefits. Those of us who can afford it reap the benefit, those who can't, still can't.

At what point, in a capitalistic country do companies decide that using that tax break to cut prices by 5% is a better choice for the population than a one time bonus or continued shareholder value? That giving up 1% gross margin is the better choice for the population than increasing shareholder value for those who are shareholders? Oddly, I'd also think the positive spin on a statement like "We're cutting prices 5% across the board" would drive up demand that volume would make up the difference.

Just seems odd to me. Is this just another case of the rich get richer?

Originally Posted by Legal Bill

Again, trying to keep this non political, in a capitalist country the market place dictates success. Competition is based on many things, and price is often at the top of the list. Walmart became a success by driving prices down. You can all vilify them for driving mom and pop stores out of business and importing a bunch of foreign made products, but the consumer did, in fact, enjoy the "5%" reduction you are discussing. In fact, the consumer often enjoys a 10% or greater price break over what the same thing costs at a local store.

Originally Posted by s2000Junky

I'm sorry but, they aren't "enjoying it" its become a necessity. The Walmart's of the world became not only the driver of lower wages in this country, but the solution as well. They found a way to help create and fill the void of a despaired low wage population. If after 30 some years the national average wage stay flat, you simple cant afford to buy anything at a normal inflated price. Well why have wages stayed flat!? Who cares right?. Bring in Walmart to answer the cries. Its currently been a race to the bottom in this country. Eventually this current near sited greedy version of Capitalism will erode so much of the bottom 80% of the population that the top 20% will start to feel it. So much denial these days. The stock market will hit another major crash once the beer goggles come off and we will see what shakes out from that next episode. We are due for another wake up call.

Originally Posted by Heyitsgary

The tax breaks are announced. Companies say (very generally here)- We're giving out a $1000 bonus to XXX number of employees. That's a one time, short term windfall that will no doubt help many of them.

Originally Posted by Lainey

Wages may be up, tax cuts may add more to the weekly check, but we still have an issue with jobs being created being mostly/often, 30 hours or less, so no health insurance is available. Temp work, contract work, part time work, I bet that's out there.

So will these tax cuts prompt employers/companies to expand their work force, and create more GOOD jobs? Isn't that what was being touted by the party in favor of these tax cuts? What will the companies who are receiving these tax cuts do with their windfall?

Originally Posted by Lainey

Good to hear this!

Now is that PREVIOUS employer or PRECIOUS?