DIVIDENDS WITHOUT PROSPERITY IN THE AGE OF TRUMP!

WE HAVE OPENED A NEW DOOR TO GREAT CORPORATE WEALTH IN THE FORM OF CORPORATE CASH DIVIDENDS. THE PERIOD FROM 2003 TO 2012 HAS BEEN THE GOLDEN AGE OF BUYBACKS AND CASH  DIVIDENDS. WE ARE NOW ENTERING THE AGE OF THE GOLDEN BUDDHA OF CASH  DIVIDENDS. 

 DURING THIS PERIOD, THE LARGE CORPORATION HAVE SPENT 91% OF THEIR NET INCOME ON BUYBACKS AND DIVIVIDENTS. ONLY 9% WAS SPENT ON PRODUCTIVE INVESTMENTS,  EMPLOYEES,  AND RESEARCH FOR NEW OPPORTUNITIES.

THE 9% WAS A VERY SMALL NUMBER TO SPEND ON THE FUTURE OF AMERICA. THE CORPORATIONS WANTED TO MAKE UP THE DIFFERENCE BY SPENDING PUBLIC TAXPAYER MONEY.  IN 2008, CORPORATION RECEIVED THE LOWEST INTEREST RATES IN AMERICAN HISTORY. THE FEDERAL RESERVE MOVED TO LOWER INTEREST RATES THAT ALLOWED FOR RE-INFLATING THE ECONOMY. THE CORPORATIONS SAVED OVER TRILLION DOLLARS.

IN 2017, FISCAL REFORMS WILL CREATE A NEW TAX SCHEDULE FOR THE CORPORATION AT PUBLIC EXPENSE. THE LOWER TAX RATES AND PUBLIC INVESTMENT INTO PUBLIC PROJECTS WILL SAVE THE CORPORATIONS BILLIONS OF DOLLARS. THIS MONEY WILL BE USED FOR BUYBACKS AND CASH DIVIDENDS.  THE TRUMP ADMINISTRATION HAS A PRO-BUSINESS ADMINISTRATION THAT WILL DE-REGULATE PUBLIC CONTROL OF CORPORATIONS. 

THE CORPORATION REFUSED TO INVEST IN THEIR EMPLOYEES AND THEIR EDUCATION. THE AMERICAN SCHOOL SYSTEM IS THE CORPORATE STRAWMAN FOR A LACK OF CORPORATE INVESTMENT IN EDUCATION. THE AMERICAN EDUCATION SYSTEM IS STARVED OF VITAL RESOURCES AND HAS CREATED A SUB-STANDARD  AMERICAN EDUCATIONAL SYSTEM.

THE CORPORATIONS ARE NOW PUSHING FOR THE TRUMP ADMINISTRATION TO REDUCE THE TAX RATES ON OVERSEAS FUNDS. THESE U.S. FUNDS WILL BE ABLE TO COMEBACK AT A LOWER TAX RATE. THE ONE TRILLION DOLLAR OVERSEAS FUND WILL NOT BE  USED ON AMERICAN INFRASTRUCTURE BUT WILL BE USED FOR BUYBACKS AND CASH DIVIDENDS.  THE AMERICAN CONGRESS WILL INCLUDE THIS IN THEIR TAX REFORM AGENDA.

THE CORPORATE REALITY IS THAT LESS THAN 8% OF THE TRILLION DOLLARS WILL BE USED IN ANY TYPE OF  AMERICAN INFRASTRUCTURE. THE NEW CODE WORD IS PUBLIC AND PRIVATE PARTNERSHIP.  THERE WILL BE NO REAL PARTNERSHIP AND THE MONEY WILL RETURN TO A NEW BONANZA: CASH  DIVIDENDS!. 

MILTON FRIEDMAN CLEARLY STATED THAT THE PURPOSE OF THE CORPORATE NET INCOME  IS TO REWARD AMERICAN STOCKHOLDERS. IT IS THE DUTY OF THE CORPORATION TO RETURN THIS MONEY TO THE STOCKHOLDERS NOT THE AMERICAN PUBLIC. 

THE INCENTIVE TO INVEST SHOULD REWARD THE RISK TAKER NOT THE AMERICAN PUBLIC. CONSEQUENTLY, THE OVERSEAS FUNDS IS STOCKHOLDERS MONEY AND SHOULD BE RETURNED TO STOCKHOLDERS IN THE FORM OF CASH  DIVIDENDS.

THE CASH  DIVIDEND GOLD RUSH IS GOING TO CONTINUE AND CREATE AN EXPLOSION OF DIVIDEND WEALTH. THIS NEW HAVEN OF WEALTH WILL TAKE AWAY FROM ALL OF THE PRIVATE DONATIONS TO AMERICAN INFRASTRUCTURE. THE GOLDEN BUDDHA WILL APPEAR IN THE FORM OF CASH  DIVIDEND CHECK TO THE AVERAGE STOCKHOLDER!

WILLIAM LAZONICK BRILLIANT ARTICLE "PROFITS WITHOUT PROSPERITY" OUTLINES THE INHERENT CONTRADICTIONS OF THE DIVIDEND ARGUMENT. THE ECONOMIC LESSON HERE IS THAT: POLITICAL REALITY TRUMPS PLATO'S REPUBLIC.