About Me

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Los Angeles, California, United States
The blog 'Breaking Bread' is for a civil general discussion, like you might have at the dinner table with guests. The posts 'Economics Without the B.S.' are intended for a general audience that wouldn't have to know the difference between a Phillips Curve, a Laffer Curve, or a Cole Hamels Curve. Vic Volpe was formally educated at Penn State and the University of Scranton, with major studies in History, Economics and Finance, and Business; and, is self-educated since by way of books and on-line university courses. His practical education came from sixty years of work experience in the blue-collar trades as well as a white-collar professional career -- a white-collar professional career in production and R&D. In his professional career and as a long-haul trucker, he has traveled throughout the lower forty-eight. From his professional career alone he has visited many manufacturing plants in the United States, Europe and China. He has lived in major metropolitan areas and very small towns in various parts of the United States. He served three years with the U.S. Army as an enlisted man, much of that time in Germany.

Saturday, January 19, 2013

Public Interest and Corporate Responsibility?

Economics Without The B.S.**:

[**  Double entendre intended.]


Shareholder Value vs. Stakeholder Value


I have an MBA from a long time ago.  And, what I was taught by the Jesuits a long time ago has been completely revamped in 'modern' learning.

When a company relocates a U.S. manufacturing facility to a foreign country for costs considerations, that adds to shareholder value.  When a second company does the same thing for the same reason, that adds to their shareholder value.  But after a decade or two of this by one corporation after another, it becomes a foreign policy -- one conducted by private enterprise and not by our government.  AND, there are defense implications when we loose our industrial base of operations and become dependent on foreign sources of supply.  And, when we off-shore our industrial capability we also off-shore the technical skills and know-how that go with it -- a knowledge base that our military depends on for their own capabilities.

There was a time, not in the too distant past, when this was a concern for us.  A time when we judged success by our productivity and not by the price of a stock or the direction of the stock market.







John F. Kennedy visit to Philadelphia 1960


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