Wednesday, January 25, 2006

Why American companies are in trouble.

I wonder if the head of GM will read my thoughts.

GM. Their motto should be "It's the least we could do". I wouldn't buy a GM car on a bet. Why would anyone buy from a seller who is out to do the "worst possible job" for them? Upon entering a GM dealership, you will be confronted by a salesman who is instructed to control the environment and to charge you the "maximum" price possible. Is this in my best interest? They are definitely looking for victims - the weak and helpless. When did the customer get relegated to low man on the totem pole? I wonder what the attitude is of the service department is - let me guess. This is what happens when non-customer focused lawyers and accountants take over. Maximize profit at any cost to the customer - instead of - How can we do a better job for the customer? They can restructure from now till doomsday- if they don't change the Corporate culture to one that puts the customer first - they will continue to slowly disappear.

United/Delta et al. They obviously want to charge you the maximum possible - looking for victims again. What sense does it make to have travelers on a plane paying 20 different prices for their seat? Why a complex pricing structure except to confuse the potential victims so that some are paying 3 times - 5 times the price for a ticket. Recent Delta trip was extremely uncomfortable - absolutely no room - even for your feet. No thought given to the needs of the customer. Will they ever wake up?

Corporate taxes are stupid.

After hearing an analyst on radio suggest that the number one thing this country could do to help the economy would be to reduce Corpoprate Income taxes, I was reminded that Corporate Taxes are just plain stupid.

First:

Corporations don't have any printing presses to generate money - they only have money they collect from customers. So the customers of corporations pay all of these taxes.

Second:
The Corporate taxes are hidden from the customer, buried in the cost of the Corporations' products or services. I hate hidden taxes - politicians love hidden taxes. In my judgment taxes should be visible.

Third:
The Corporate taxes (The US has some of the highest in the industrialized world- the Cato Institute reports - "KPMG found that the United States has the fourth highest corporate income tax rate in the 30-nation Organisation for Economic Co-operation and Development (OECD). The combined U.S. federal and average state rate of 40 percent is almost 9 percentage points higher than the average OECD top corporate rate of 31.4 percent.") only add to the cost of US goods and reduce the competitiveness of US goods on world markets.

Why is this so hard to understand? Why do politicians get away with the demogoguery about making Corporations pay their fair share - with our money! We really do need to reform our educational system so that people aren't so easily duped.