And this is why businesses in America will fail unless we change our way of thinking.
From Karl Denninger writing at Market Ticker:
This Is EXACTLY Why America Deserves To Fail
You'd think this company would be having a boom year, and many to come.
When the history of the coronavirus epoch is written, The Watchdog hopes historians don’t neglect to mention Prestige Ameritech and its owner, Mike Bowen. The North Richland Hills company is America’s No. 1 maker of hospital surgical masks.
During this crisis, you’d think the company would be pushing forward on all cylinders, working 24/7 to manufacture the one commodity that Americans and the rest of the world want so badly.
Nope.
When there's an outbreak -- like last time, with Swine Flu -- he gets orders. He ramps up to fill them.
Then the outbreak passes, and guess where the hospitals go? Back to China.
This leaves him with capital equipment leases and people. If he doesn't lay them off he goes out of business. If he does lay them off he get's hammered with much higher unemployment insurance premiums, the leases on the equipment he has no use for, and he goes out of business.
The last time he nearly did.
This time, he's demanding long-term contracts. Good for him.
Guess how many he's gotten?
I'll bet you can figure that out.
We deserve what's coming folks. Oh sure, there's much bluster now about moving production back to the US and the risk China -- and non-US supply chains -- pose to us. How many minutes do you think after this is over will pass before everyone goes back to the turd-world nations that incubate and expel these viruses for all their supplies because they use effective slave labor and poison the land, air and water?
Maybe five.
Minutes, that is.
That's why I won't bother standing up another company. Good luck competing with a bunch of slaves for a labor base.
This virus isn't really all that bad, when you go down the list of nasty bugs.
The next one might be.
But you don't really care, other than being a scolding Karen, do you?
I am posting this rant in full as it deserves the widest possible audience. This sort of short-sighted thinking is why business in America is so fscked. Focusing on the short-term gains - eyesight on the next quarter and not the overall growth of the corporation. Looking at the stock prices and not the net worth.
Hell of a way to run a business...
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