This is a repost from March 2011 but still interesting...
I take a job for 31 days and the boss offered two choices how I would be paid. First choice is to take a lump sum payment of $10 million dollars. The second choice is to accept 1 penny for the first day of work, but the salary would continuously double each subsequent day and I would get paid the total amount at the end of the work period (2 cents paid on day 2; 4 cents paid on day 3, etc)
Most people would take the $10 million. After all, it averages $333k/day.
But would that be the most financially sound choice?
Here's a day by day breakdown of wages doubled daily starting at a penny:
Day 1 - 0.01 a penny
Day 2 - 0.02 3 cents total
Day 3 - 0.04 7 cents earned in 3 days
Day 4 - 0.08 15 cents total
Day 5 - 0.16 31 cents earned after 5 days
Day 6 - 0.32 63 cents total
Day 7 - 0.64 $1.27 earned after 1 full week
~ Looks pretty bad- $10mill looks good.. Let's continue..
Day 8 - 1.28 $2.55 total
Day 9 - 2.56 $5.11 total
Day 10 - 5.12 $10.23 earned after 10 days
Day 11 - 10.24 $20.47 total
Day 12 - 20.48 $40.95 total
Day 13 - 40.96 $81.91 total
Day 14 - 81.92 $163.83 earned after 2 full weeks
~ That's better than after 1 week but nowhere near $10mill, hmm...
Day 15 - 163.84 $327.67 total (halfway there)
Day 16 - 327.68 $655.35 total
Day 17 - 655.36 $1310.71 earned in 17 days
Day 18 - 1310.72 $2621.43 total
Day 19 - 2621.44 $5242.87 total
Day 20 - 5242.88 $10,485.75 total
Day 21 - 10,485.76 $20,971.51 earned in 21 days
~ This isn't looking too good.. gulp~ 10 days to go
Day 22 - 20,971.52 $41,943.03 total
Day 23 - 41,943.04 $83,886.07 total
Day 24 - 83,886.08 $167,772.15 earned in 24 days
Day 25 - 167,772.16 $335,544.31 total
Day 26 - 335,544.32 $671,088.63 total
Day 27 - 671,088.64 $1,342,177.27 total
Day 28 - 1,342,177.28 $2,684,354.55 earned in 28 days
~ 3 work days left.. looks promising...
Day 29 - 2,684,354.56 $5,368,709.11 total
Day 30 - 5,368,709.12 $10,737,418.23 total (1 day left)
Day 31 - 10,737,418.24 $21,474,836.47
A penny, doubled each day for 31 days = $21,474,836.47
Certainly beats the initial $10mil offering, doesn't it?
Thursday, May 31, 2012
Wednesday, May 30, 2012
Then there's the following Example..
This is from the Entertainment section of the LA Times. Even though we're a finance-economics blog, this example of piss-poor journalism written in a well known newspaper like the Times was too good (or terrible) to pass up...
From The LA Times:
'Hatfields and McCoys' brings out Kevin Costner haters
Kevin Costner rode again in "The Hatfields and the McCoys" on Sunday night, with his haters in hot pursuit.
Taking its first shot at scripted drama, History begin airing its three-part epic miniseries about the notorious late 19th century feud between warring Appalachian clans, with the former "Dances With Wolves" star-director as patriarch Anse Hatfield and Bill Paxton as his rival, Randall McCoy.
Reviews were mixed, but Costner's detractors... were out in full force Sunday.
"I cannot remember if I hate Kevin Costner because he is a Hatfield or McCoy or if it's just because he is Kevin Costner," tweeted @mar*****se.
"This reality show on The History Channel is great. I didn't realize that Bill Paxton and Kevin Costner hated each other," @ste****iri added wryly.
As @jul***ey44 summed up: "Part 1 of "Hatfields & McCoys" was pretty good ... seems like Kevin Costner and Bill Paxton will be locks for Emmy nominations.""
WTF?!! Are you Kidding? Quoting from Twitter comments????
Next, we'll put aside the fact that the topic of the pseudo-article was utterly stupid since we're all Kevin Costner Fans and Admirers here at A&G ..
But really, is this garbage worthy of a major newspaper? This is the LA Times, not some newspaper of a town with the population of 500.
Some lazy Bleep writer searching through Tweeter feeds while in his bedtime jammies to gauge response to a TV show and actor...and got paid for it! Rrrr
Its trivial because its just a TV mini-series but this is the future of newspaper writing folks, and its quite sickening a spectacle.
Yesterday the market finished the day up 125pts or so.. Based on nothing real of course.. Just 'Hope'... Hope that Greece would be OK.. Hope on this.. on that..
Fa La La... La Di Da...
Here's how Yahoo News put it: "On Tuesday, global stocks rallied as investors chose to focus on the 'good news' coming out of Greece and ignore the very bad news coming out of Spain."
Isn't that lovely..
Investors-- the human equivalent of the skin at the bottom of one's foot decided that they would pick and choose what news they would focus on for that trading day.
Negative reality didn't serve their purpose of profit making & taking, so if the news was a collapsing housing market, lower consumer confidence or the potential Nationalization of banks in Spain.. Ignored. Like dandruff off a shoulder.. ~brush..brush..
And the 'good' news seemed to be the orchestrated intense blitzkrieg of extreme, apocalyptic warnings and forecasts upon the Greeks via the corporate controlled media, were working.
Bombardment of fear from every media and financial orifice starting to really scare the shit out of the Greeks to vote for the pro-bank, pro-austerity parties that got Greece into this mess.
You'd think no nation has ever defaulted before??
Of course many, many have.. the following pic shows a chart of nation defaults between 1981-2003 (click on pic to enlarge).. its quite a big list... Full list of nations in default between 1820-2003 found Here
We'll see what happens officially on June 17th.
So what's going on in the market today?
As of 3:55p, the Dow has dropped -161pts.
Why this change in the Dow in the span of only 1 trading day?
"Stocks tumbled as Spanish bond yields rose and the price of credit default swaps on Spanish debt hit record levels. Meanwhile, Italy's auction of 5- and 10-year securities was met with weak demand." - (AP)
Complete nonsensical jibber-jabber
As if American investors really give a Fuck about any nation outside of the US... Most couldn't properly identify Spain or Italy on a map and yet magically today Investors care about these countries as if their problems suddenly sprouted up overnight and their suffering means something ...
Of course tomorrow, expect 'Problems Solved' and another rally..
Sociopathic people simply do not possess the empathy gene.
IMF head Christine LaGarde is as good as example of this as any. All weekend, she's been going to one media outlet after another blaming the Greek people for their predicament, expressing no sympathy because supposedly Greeks don't ever pay their taxes..
Then it was found out that LaGarde's IMF salary is tax free.
"The managing director of the International Monetary Fund is paid a salary of $467,940 automatically increased every year according to inflation. On top of that, she receives an allowance of $83,760-- payable without 'justification' -- and additional expenses for entertainment, making her total package worth more than the amount received by President Obama" -- Telegraph UK
Well, How 'bout that?
It is investors who caused the economic horror the globe is witnessing & experiencing today and it is the same parasites who seek to financially profit from it, every step of the downfall.
And why are they allowed to?
Because All politicians of all nations cater to their wish and want. Governments can't seem to generate revenue to sustain their economies on their own anymore. All nations are Utterly dependent upon Investors to provide the finances to keep their economies afloat.
For loyal readers of A&G this all seems repetitious but we have new readers daily and we're more than happy to educate people on the truth behind markets, banking and finance... as often as need be.
Tuesday, May 29, 2012
Its guided by two forces-- greed and panic, and in spite of the high praise and adulation that people give to the super-wealthy and those in the world of finance for their supposed intellectual acumen, Truly so, Investors are some of the dumbest son-of-a-bitches to walk the earth.
Today's as good as any to prove this..
So.. what are the markets doing as of 2:45p est? Its +77pts for the trading day. OK. now why is that? According to AP, "Wall Street rose on Tuesday on renewed hopes Greece will stay in the euro zone"
There's that word again... 'Hope'. As empty and unfulfilled word in the English language as anything short of the overused word "Love"
And what do these parasites base such 'Hope' on?
Mostly its based on fear-news. If enough corporate news stories are written about how bad it will be for Greece if they leave the Euro, the simple populace will be scared to vote Syriza party into office and thus keep the pro-banker status quo parties in charge.
Of course no one ever really admits that all political parties in Greece want to stay in the Eurozone. Its just Syriza doesn't want the crippling, dehabilitating austerity imposed by Germany and the banks.
And Greece's military.. where does it buy its armaments from; who are its Defense contracts tied with? What do you know... Germany and France. If they let Greece completely collapse, it takes down those nations' economies too. And we're not even focusing on the banking sector.
See how much leverage Greece really has?
And here's the kicker no one really wants to admit-- the Eurozone can not kick any nation out. It is not in their charter and does not have the power to do so. So, if the E-zone can't kick Greece out and Greece doesn't wish to leave, and payments stop to Greece because they aren't accepting their spoonfuls of poison...
Well, that's quite a stalemate isn't it?? Who'll blink first?
So we don't really think 'Hope' matters a damn, though to borrow that tired word a moment, we Hope that Investors suffer a massive bloodletting in the next few weeks if/when Syriza can win. If so, it would be the first real financial pain that Wall St has felt in 45 months.
But don't worry.. The world is ready to pour untold Trillions of dollars into the markets once this happens to save the banks so all is well.. the $2,500 life savings in your bank will be safe ultimately.. it just won't be worth $2,500 when everything's over.
So let's quickly see what news the markets have intentionally glossed over or outright ignored today...
* According to the Conference Board, consumer confidence which was predicted to rise from 62.2 last month to 62.6 currently, actually dropped-- to 61.9. Its the third prediction miss in a row.
* According to CaseSchiller housing data, "The national composite fell by 2.0% in the first quarter of 2012 and was down 1.9% versus the first quarter of 2011... with these latest data, all three composites still posted their lowest levels since the housing crisis began in mid-2006... “The National Composite fell by 2.0% in the first quarter alone, and is down 35.1% from its 2nd quarter 2006 peak"
The stock market is the clearest, simplest example of how 1% of the nation continues to be coddled and teat-fed by the government; allowed to make vast profits based on illusionary hopes, wishes and dreams, while the bottom 99% is left to fend for themselves in the world of reality.
Monday, May 28, 2012
In brief summary, all corporate media is owned by investors i.e. shareholders. That is the corporation's sole fiduciary.. they are the Only ones that ever matter. And who are the shareholders? Banks, hedge funds, investment firms and other power-entities in the world of finance.
We're going to focus on one other media entity then move on to other topics in the future. Today, we're going to look at Gannett Media.
In case you're not familiar with them, they own USA Today and local newspapers & TV stations in 37 US states including the Detroit Free Press, Indianapolis Star and Cincinnati Inquirer
Full list found here: http://www.gannett.com/section/WHOWEARE11
So who are Gannett's biggest investors? If you read the previous two postings, you'll find some recognizable names...
Top Investors Shares Held Shares Value
JP Morgan Asset Management 21,915,328 $330,702,000
** Run by scumbag CEO Jamie Dimon; holds 9.5% of all Gannett stocks; also holds over 108k shares in Washington Post stock
AllianceBernstein L.P. 16,919,720 $255,319,000
Ariel Investments, LLC 14,583,208 $220,061,000
** Also holds 108k shares in Washington Post stock holdings
Vanguard Group, Inc. 12,852,238 $193,940,000
** Holds 281k shares in Wash. Post stock & 5.6M shares in NY Times
Alden Global Capital Ltd. 9,337,262 $140,899,000
BlackRock Institutional 8,187,019 $123,542,000
** World's largest asset manager; also owns 4.7 M shares NY Times and about 204k shares in Wash Post
State Street Global Advisors (US) 7,835,032 $118,231,000
Credit Suisse Securities (USA) LLC 7,664,288 $115,654,000
** Swiss Bank
Goldman Sachs Financial Markets LP 7,500,622 $113,184,000
** King of the Scum; also owns 2.4M shares of NY Times
LSV Asset Management 7,486,120 $112,966,000
Invesco Advisers, Inc. 6,855,227 $103,445,000
Optimum Investment Advisors, LLC 5,893,572 $88,934,000
** Also owns a whopping 10.7 M shares worth $105M of New York Times stock, the newspaper's largest holder
Bank of America Merrill Lynch (US) 5,183,449 $78,218,000
** Another immoral bunch of dirtballs...
Aston/Optimum Mid Cap Fund 4,530,300 $68,362,000
Sorry to belabor a point, but This is why the media does such a piss-poor job of truly informing people as to what's going on in the US economy, why the lie 'recovery' is pushed so hard, and why tens of millions of people are utterly brainwashed daily into believing the financial sector is good, with its success meaning America's success...
You can also see why almost everything in this country is 'too big to fail'.. everything intertwined like cancer and disease in a 'host' i.e. America. Kill the cancer, kill the host... or do nothing and watch the cancer kill the host slowly...
Bad choices all around.
All media have agenda.. ALL. And rather than one wealthy magnate influencing and molding popular opinion like William Randolph Hearst in the early-mid 20th century and to a lesser extent, Rupert Murdoch today, agenda is now molded by the stockholders.
Just like a politician is likely to push laws onto the books that represent his/her biggest campaign donors, newspapers will push ideologies that are the most friendly and agreeable to their shareholders.
If you agree that the financial sector is full of noble, patrotic people, that Wall St needs to keep going up, up, up, that the US is in recovery and that everyone has a god-given right to make as much $$ as humanly possible even if they're in their 80s or 90s, then pick up a newspaper tomorrow, find a comfy-cozy spot to sit, and Enjoy~
If you want truth and reality, you will seek it out on the internet via reputable sources and of course, keep reading here. At 'A&G' we don't want your money-- we just want you awake.
Sunday, May 27, 2012
On Friday, we showed a detailed list of the top Investors for the New York Times which pretty much was comprised of banks, hedge funds, investment firms and other (capital-P) Profit-making scum that infest Wall Street.
It should be clear as day to anyone who reads the NY Times that they like all corporate media are bought and paid for, and to never Ever expect true journalism which villifies Wall Street, the finance profession or any other shareholders' sacred cows.
But is the NY Times alone? Of course not..
So time to look at another newspaper.. The Washington Post
Since All corporations are beholden first and foremost to their shareholders and that's what Investors really are, let's see who truly owns the Post:
** All statistics as of 12/31/2010
Top Investors Shares Held Shares Value
Berkshire Hathaway Inc. 1,727,765 $759,353,000
*** 20.45% of ALL Wash Post shares are owned by Warren Buffett's company; That's $759.3 Million reasons why you will never ever see a truly bad word about super-greedy Buffett uttered in the Post
Manning & Napier Advisors, Inc. 419,155 $184,219,000
Southeastern Asset Management, Inc. 388,301 $170,658,000
** Invests in undervalued Securities
International Value Advisers, LLC 371,451 $163,253,000
Longleaf Partners Small Cap Fund 289,000 $127,016,000
** They also own 5.6 million shares of NY Times stock
State Street Global Advisors (US) 240,225 $105,579,000
** World’s second largest asset manager: $2 trillion in assets
Fidelity Management & Research 237,208 $104,253,000
BlackRock Institutional 203,938 $89,631,000
*** World's largest asset manager; also owns 4.7 M shares NY Times
OppenheimerFunds, Inc. 153,032 $67,258,000
IVA Worldwide Fund 150,041 $65,943,000
Altrinsic Global Advisors, LLC 136,317 $59,911,000
Gardner Russo & Gardner 134,968 $59,318,000
** Financial Planning Consultants
Mellon Capital Management Corp. 114,232 $50,205,000
JPMorgan Private Bank (United States) 108,647 $47,750,000
** Jamie Dimon's company; the scumbag who lost $2B last week
Ariel Investments, LLC 108,384 $47,635,000
There are 25 financial-related corporations that overall own just about 70% of all Washington Post stock. And to repeat: The #1 priority of All publicly traded companies are their shareholders.
So you may ask, why does this matter? Well, when it comes to the Washington Post's coverage of the NFL's Redskins, reporting what the weather will be this coming week, or whether a picture of two kittens hugging each other should appear in pg B1 or B4, it does not matter in the slightest.
But let's say the Post had investigative journalists hungry for the truth; seeking to uncover the rot of the finance world and write a factually scathing expose on the 2008 financial crisis, the current bailouts or other Wall St. deviance. And included in such a muckraking piece of journalism, attacks on Investment firms, Hedge Funds, the criminality of the banks-- all provided in great, painstaking detail...
Do you honestly really think a financial corporation holding hundreds of thousands of shares of stock worth tens of millions of dollars is going to allow the Post to run that; to run Any article that dissuades people from investing?! Really-- Do you? A negative piece may be run on a particular company at a particular moment but the entire industry painted as evil (which they are)...don't hold you're breath.
All mainstream media go by the same ideological mantra: Wall St is good, corporations are good, making money is good and unless you break the law egregiously, all Investors are great. In addition, USA is #1-- 100% of the time. If a policy is bad, blame a person, a President or a party platform, but never look critically inward...
Controlling the media is no different than controlling a politician or a political party...its not complicated.
You simply Invest $$ in them... A Lot of $$.
Saturday, May 26, 2012
Friday, May 25, 2012
|Cozumel Celebrity Golf Tournament|
Los Angeles, CA -- The stunning island of Cozumel will be radiant, not only for the sun, it's startling beauty, the sparkling ocean; also for the litany of celebrities that will be converging on the 31st of May, through June 3rd, 2012 for the 1st Annual, by invitation only, Cozumel Celebrity Golf Tournament produced by Fantatiks, QR Celebrity Golf, Outbox and Oveishon.
Sponsored by the State Government of Quintana Roo; the Government of Isla de Cozumel; Mexico ¡Se Siente!; Fox Sports; Alacrán; Señor Froggs; Avis; Sabor Cozumel Resort and SPA and the Cozumel Country Club; the Cozumel Celebrity Golf Tournament will be the first in a legacy series of Celebrity Golf Tournaments, showcasing a world-class event in one of the most coveted locations in the world: Isla de Cozumel in the Mexican state of Quintana Roo.
At a press conference, held in Los Angeles, Raúl Marrufo, Undersecretary of Tourism for the State of Quintana Roo; Rodrigo Navarro, CEO Fanatiks; Alex Vega-Biestro, Director QR Celebrity Golf were joined by celebrity golfer, former professional athlete, turned television star Ed Marinaro who enthusiastically spoke of his participation in the tournament; his excitement to travel to Mexico and his confidence in the safety and security of his family while in Cozumel for the tournament.
This extraordinary debut event has aligned itself with two incredibly meaningful charities: Childrens International www.children.org and Dr. Sonrisas (Dr. Smiles) www.drsonrisas.org Foundations. James Scott, star of the globally syndicated American soap opera, "Days Of Our Lives" has also joined the tournament, citing that he is one of Mexico's "biggest fans" and that he is honored to be able to show his support for the charities.
Scott, will be joined by legendary athletes Bob Beamon, Terrel Davis, Antonio Freeman, Bruce Smith, Dave Stewart, Daryl Talley, Thurman Thomas at the Rivera Maya's best golf site: Cozumel Country Club which boasts a 6,734-‐yard, par 72 course layout designed by The Nicklaus Design Group with an architectural vision that emphasizes the ecological preservation of the location’s precious natural surroundings, blending as sensitively as possible with the mangrove marshlands and tropical rainforests that surround the resort.
Home base for the weekend will be the stunning, world renowned Hotel Sabor Resort and Spa, which has the largest beachfront property overlooking the Mexican Caribbean.
Media Inquiries, please contact Popular Press Media Group (PPMG) +1-310-860-7774, firstname.lastname@example.org.
# # #
Cozumel Celebrity Golf Press Conference. L-r: Ed Marinaro, Raúl Marrufo, Undersecretary of Tourism for the State of Quintana Roo; Rodrigo Navarro, CEO Fanatiks; Alex Vega-Biestro, Director QR Celebrity Golf
Cozumel Celebrity Golf Press Conference. L-r: Ed Marinaro, Raúl Marrufo, Undersecretary of Tourism for the State of Quintana Roo; Rodrigo Navarro, CEO Fanatiks
Cozumel Celebrity Golf Press Conference. L-r: Raúl Marrufo, Undersecretary of Tourism for the State of Quintana Roo
Cozumel Celebrity Golf Press Conference. L-r: Celebrity Golfer, Ed Marinaro
Cozumel Celebrity Golf Press Conference. L-r: Rodrigo Navarro, CEO Fanatiks; Alex Vega-Biestro, Director QR Celebrity Golf
Cozumel Celebrity Golf Press Conference. L-r: Rodrigo Navarro, CEO Fanatiks
|Atmoshphere, Cozumel Celebrity Golf Tournament, Press Conference.|
And before your mind goes there, No, No, No... Just Don't.. Don't follow the path of the simpleminded by believing a specific religious denomination that tends to get blamed for everything under the sun (you know which one we mean) controls the media...
This is a serious question and too important to be answered by Kooks.
Who Truly owns the media?
Because they are corporations which are usually publicly traded entities, the answer is Investors. All decisions made by corporate media are in the best interests of the stockholders.
Thus, it is They, the Investor who own the newspapers, TV networks and the like... Just like they own governments who bow down and cater to their every money-making need.
But who specifically are these Investors?
We will provide information on all the newspaper corporations in time via future postings, but for today, the focus is on the New York Times.
Top Investors Shares Held Shares Value
Optimum Investment Advisors, LLC 10,715,274 $105,010,000
T. Rowe Price Associates, Inc. 10,572,400 $103,610,000
Slim Domit Helú (Carlos) 10,050,000 $98,490,000
*** Mexican business magnate and philanthropist; ranked as the richest person in the world in 2012
ValueAct Capital Management, L.P. 7,000,000 $68,600,000
Vanguard Group, Inc. 5,673,932 $55,605,000
BlackRock Trust Company, N.A. 4,707,110 $46,130,000
*** American multinational investment management corporation and the world's largest asset manager
Global Thematic Partners, LLC 4,308,465 $42,223,000
Baron Capital Management, Inc. 3,644,030 $35,711,000
Franklin Global Advisers 3,573,665 $35,022,000
State Street Global Advisors (US) 2,912,676 $28,544,000
Goldman Sachs Asset Management 2,402,878 $23,548,000
*** Ahh, Good ole' Goldman Sachs owning the media
BNP Paribas Asset Management 1,627,450 $15,949,000
*** An asset management company headquartered in Seoul, Korea
Statens Pensjonsfond Utland 921,876 $9,034,000
*** The Government Pension Fund of Norway
~ The above companies retain what are called Class A shares. Arthur Sulzberger Jr. controls 90.2% of Class B voting shares through family trusts.
Thursday, May 24, 2012
This is actually a good thing because news-worthy events are often bad, and the human psyche wouldn't be able to take a non-stop barrage of 'bad'.
Yet there's deadlines to file... space between the ads to fill, etc and money to be made.. A&G is not like that-- we write what we wish; Interesting things like this...
There's a popular expression one may make when encountering another who appears to be un utter sucker and easily duped (like most who play the stock market) and it goes like this:
"Well if you believe That, I have a Bridge I'd like to sell you!"
Today's history milestone made us think of it. After 14 years and 27 deaths while being constructed, the Brooklyn Bridge over the East River opened on this day in history, May 24, 1883.
Thousands of residents of Brooklyn and Manhattan Island turned out that day to witness the dedication ceremony. Designed by John A. Roebling, the Brooklyn Bridge was the largest suspension bridge ever built to that date.
Ironically, a week later on May 30th, a rumor that the Bridge was going to collapse caused the needless deaths of twelve people who were trampled amid the irrational chaos.
Just thinking-- not much different really from the constant rumors that financiers and governments put out to stimulate investing and manipulate market 'bull runs'. People get crushed but just not literally-- only their life savings.
It also makes one think-- when's the last time we as a nation have built something so great and more importantly Functional?
Certainly some would argue the new twin towers being erected will be great once construction is completed; as great as the previous towers were. And this may be true from an architectural standpoint. But we speak of Functionality too, not buildings that amounted for decades as nothing more than grandiose office space for Wall St firms.
1883 was such a different time to live. Obviously, over time we experience technological advancements and clothing/hair styles change. But economically, it was such a vibrant time. Factories were bustling-- creating everything from textiles to machinery. The hope of economic prosperity was so great that millions upon millions flocked to US shores, especially from southern and eastern Europe.
Unlike today, you actually had purchasing power back then.
It would take $24.94 today to equal $1 in 1883, so if a person had $2,000 then, that would equal $49,880 today.
A newspaper was four cents and in your local Sears catalog, you could buy a headstone starting at $10 and a build-it-yourself home for $823.
Hola...) Today was amazing and sunny day in our nice boulevard . .Today's look khaki dress..I like dresses..And in summer days my lovely outfits are nice dresses...Dear readers, tonight will be second semi final of Eurovision song contest 2012 Baku..) We look forward...Enjoy..Bye
Wednesday, May 23, 2012
How much do corporate layoffs cost the government via unemployment?
Its hard to give a total sum but we can get a gist by using examples, and what better example to use than from this afternoon:
"Hewlett Packard Co plans to lay off roughly 27,000 employees or about 8 percent of its workforce over the next couple of years to jumpstart growth and save up to $3.5 billion annually, sending its shares 11% higher" - Reuters
So HP will save $3.5 billion annually and stockholders thought that ridding it self of 27,000 employees was such a super idea, that its shares spiked meaning larger dividends.
Everyone's happy. Well, except for those fired but they don't count.. they're not shareholders... Right Hewlett Packard?
Let's say for simplicity sake, every person fired is to receive $300/wk...
That's 27,000 x $300 = $8.1 million spent for one week.
Now let's say as of week 27, 33% of the 27,000 suddenly became gainfully employed, that means the for the first 26 weeks prior, the government covered all those fired...
27,000 former HP employees x $300 x 26 wks = $210.6 million.
OK, with us so far?
Let's suppose by week 53, another 9,000 workers (33%) magically found jobs, that means for weeks 27-52, the government spent...
18,000 former HP employees x $300 x 26 wks = $140.4 million.
9,000 former HP employees x $300 x 26 wks = $70.2 million.
Finally... we add those 3 big numbers together to see how much money in unemployment the government spent to cover 27,000 former HP workers who would still have jobs if not for the need for HP to maximize profits and shareholders to be happy:
$210.6m + $140.4m + $70.2m = $421.2 million dollars.
Because our example is real and HP is going to lay these people off, the government will have to spend $421.2 million dollars in a 79 week period once the mass layoffs begin, which is in essence, to cover human resource losses of an inept, incompetent company that can't seem to generate profit by any creative means outside of firing workers.