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Privatization might get us back on track

I am prompted to write this after reading an article entitled “Crisis of confidence” and subtitled “Bank of America prepares to eliminate 30,000 jobs in bid to win investor’s faith.” This is the problem. They put 30,000 people out of work to woo “investors” and don’t realize that unemployed people can’t buy things or put money in their bank or take out loans.

Here’s a real life example. A services company, I’ll call them Company A, is a public company. Their customer, a financial company, I’ll refer to them as Company B, is privately held. Each quarter Company A tries to balance their books and “improve” the bottom line to attract investors by laying off employees, cutting salaries and/or cutting benefits. Needless to say, Company A fuels unemployment and weakens the economy. Company A’s executives don’t care, because they benefit from stock options and will continue to bloat their pockets until they run the company into the ground, putting more workers on the street.

On the other hand, Company B doesn’t worry about “investors” and puts their effort into producing a better product. They pay their employees fairly and even give raises and bonuses. The employees of Company B contribute to the economy because they are able to purchase things and put aside savings in a bank.

The point is that companies should go private and concentrate on production and quality, not stock prices. This is how we will get things back on track and make America strong again. By the way, I will never do business with Bank of America.

Terry Tallian

Wood Dale