No more Twinkies - Hostess out of business

[Cannon Shell]

Originally Posted by jms62

If companies charge 5x what they are charging now someone will come in much lower and eat their lunch. Let the market decide. Maybe the solution is execs should only be making 1000 times
what their lowest paid employee makes instead of 1,000,000 times.

I'm confused now. You touted protectionism and now you want to let the market decide? For example if we were to slap huge tariffs on imported tshirts (or ban) from the far east and American companies were encouraged to start producing tshrts do you really think that they wont cost far more to produce and because of the lack of an open market charge more?

The salaries of executives of these corporations are more or less meaningless to the bottom line of the company.If a company makes a billion dollar profit what difference does it make if the CEO gets a 5 million dollar bonus? Trying to rein in pay in private enterprise will lead to more companies being based in the Isle of Mann or Aruba.

[jms62]

Originally Posted by Cannon Shell

I'm confused now. You touted protectionism and now you want to let the market decide? For example if we were to slap huge tariffs on imported tshirts (or ban) from the far east and American companies were encouraged to start producing tshrts do you really think that they wont cost far more to produce and because of the lack of an open market charge more?

The salaries of executives of these corporations are more or less meaningless to the bottom line of the company.If a company makes a billion dollar profit what difference does it make if the CEO gets a 5 million dollar bonus? Trying to rein in pay in private enterprise will lead to more companies being based in the Isle of Mann or Aruba.

They can only charge what people are willing to pay regardless of the cost to produce. My solution to companies moving out of the country is to levy high tariffs on their products just like India and China do to our products. I would also not allow these foriegn companies to be listed on our stock exchanges. Your strategy amounts to business as usual and we know that no longer is working. Having said that we will continue business as usual and contine to circle the drain.