César Fernández-Stoll

César Fernández-Stoll
Versión hispana

Sunday, October 30, 2011

To serve and not be served

One law for the rich | Columnists | Opinion | Toronto Sun

A bank, business or any corporation for what is worth; hires a CEO, and a bunch of other executives, because shareholders feel these are the right people for the job. The job?
The job is to make their enterprise successful, which entails bring more profit, through increased penetration in the market, innovation, creating new and better products and/or services, you name it. For all of this, the shareholders throuhg the board of directors offers very handsome compensations through bonuses and so... for doing what they have in their mandate or job description.

The market in a free society has many issues to occupy the daily aspects of running a business of any size or nature among which competition, appeal for goods and services by the public and so on and so forth are at the front and so great skills are required for such endeavours.
But things do not go as expected. The government has imposed several regulations and rules that make the laws of the market toxic to the business. The people hired to do all of the above has extra duties that the government has put in the way and which require of strong principles to deal with. If the corporation is big and almost impossible to fail and has on payroll several thousands of people, the decision becomes much difficult because of the consequences it brings with it.
Hence, in one way, politicians can be advised that should such an imposition proceeds, the corporation will be forced to abandon its mission and many thousands of people directly or indirectly involved with the business will be left unemployed. In the other of course is silently abiding to what the government dictates and while presumably saving the jobs, severally impacting the markets because the rules have become toxic and its purity therefore intoxicated.
Then the bubble comes and explodes and the politicians blame businesses for being so unskilled or is it, greedy?! But the crisis for them is about the political side which is the thousands of jobs that need to be saved, so the decision is to bail out the business in the names of preserving the jobs while the market keeps intoxicated by government intervention dictating what works for politicians.
The government has money that only can come from taxpayers and therefore any bailout will severely impact the funds the taxpayers have trusted to politicians to look after guaranteeing the rule of law. But the government insists on "for just one time" going ahead with bailing out the businesses so that they can keep operating. What keep operating means?
Because the business keeps operating, as if never ever anything had happened, every obligation needs to be maintained and fulfilled, included that one of the bonuses offered to the skilled professionals that where supposed to take the corporation through the paths of prosperity and growth. But these leaders, made a deal with the government and the corporation was put at high risk... but the corporation is still running and therefore, it needs to continue as if nothing happened.
The business then, keeps running under the same exact rules and bonuses are paid which promptly consume the amounts given by the bails while the intoxication keeps growing and so... a new bail out is needed, because so many people is at risk of ending up in the streets and this for sure will be the "last time".
While that circle, or rather spiral grows, and accelerates, the market has completely lost confidence in businesses and politicians, because the rules are being changed as required and the government on top of everything, finds necessary now to grow in size, because jobs are starting to be lost in the private sector and the government for sure is something that is "too big" to fail and so it needs to create jobs even if they are internal and as unproductive and futile as they might be, a new job is a new job.
But politicians have other agendas that are in priority and need to be imposed, sorry, regulated and these have to do with protecting anything except life or the freedom for the people, because the government after all is "saving" the people against themselves and the corporations that will become too greedy should they be allowed.
So the government maintains its plan and keeps with increasing the amount of regulations that keep intoxicating the market and of course, if big businesses are "too big to fail", small businesses are never and so, they can go down as flies as long as the priorities set by the government are kept.
The people of course gets fed up with the situation and ask the politicians for answers and the politician comes and says that it is the corporation, Wall Street, businesses, the market, all of the above; what the problem is and that they need yet another bail out and this time is truly and for sure the last one and that the people shoudl turn against businesses because it is their greed what has caused the situation.
The reality is that principles and with that faith, hoe and love, what have failed because the lack of principles is what made the corporation to drift away from its mandate while letting the government dictate what CEO and company should have decided and the government because with its lack of principles has put politics in front of the true mandate it has from God; to serve and not be served and to protect life and freedom, and only that.
The people and only the people will be able to restore the one entity which cannot never be too small to save or bail out, the family, because it is only families what can guarantee the future and whcih can maintain the purity of the market.
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