I am writing this letter to express my daunting concern regarding the employment issues in this great country and propose a solution on how we may resolve the current instability. I urge you to read, make your suggestions, and then sign on, in doing so, that we can send this petition to those who have the power to make changes; as a result of our voices being heard.
The Business Roundtable consists of 146 CEOs, of the largest of corporations that combine equals one-third of the total stock market value. These mammoth corporations create over $6 trillion in annual sales and employ 14 million people. They also pay a combined $163 billion per year in dividends to shareholders and give $9 billion to various charitable causes.
The Business Roundtable interviews the CEOs of these 146 companies, who are the decision makers and the ones who greatly influence the direction of our economy. Moreover, their decisions not only affect their own individual companies, but also small and medium sized companies that also create thousands of jobs.
In June 2012, the results from a survey of these 146 CEOs, which include the CEOs from companies such as IBM, Procter & Gamble, General Electric, and Boeing, painted a very gloomy economic picture. According to this survey only 36% of the CEOs plan to hire in the next 6 months (down from 43% in the three months prior), and only 43% plan to increase spending on large goods; such as machinery and computers which also aid in the growth of the economy.
How will this affect you? It will actually affect all of us! If fewer CEOs plan to hire in the next six months, unemployment will either maintain a level of over 8% or more probable, it will even rise. We aren’t sure if the 64% of the CEOs who are planning on not hiring will maintain current employment levels, or if they plan to layoff or fire employees. Meanwhile, the income for these companies, remain high, the amount of cash on company balance sheets are at all-time highs, and executive compensation and bonuses continue to rise.
What can you do to fix the problem? The combined dividend payments of the 164 companies represented on the Business Roundtable exceed $163 billion per year. If you divide the amount paid in dividends by $60,000 it would exceed 2.7 million, which is the number of people these 164 companies could hire (at $60,000 per year) if companies were forced to match dividend payments with new hire spending. If these companies employ a combined 14 million people, then this requirement would increase the workforce by 20%!
Just imagine how much faster our economy would grow with nearly 3 million new hires, and the degree to which it would slow the U.S. deficit, if all companies would do their part toward helping the economy grow and simply weren't so consumed with increasing dividends every year to keep shareholders happy.
In the end it would break us from a flat market and allow the market to increase in value, therefore, creating even more shareholder value, all the while growing the economy and giving more Americans a fair shot at achieving the American dream.
Thankfully, there are several steps that can be taken to further regulate corporate businesses. With this topic being a big discussion, thanks to Jamie Dimon and JPMorgan, I feel that now is the time to act, we need to apply pressure on our politicians and corporate America, demanding of them to make the changes that are so desperately needed. In getting America back to the prosperous nation it used to be, I propose one of three solutions:
1) All public companies paying dividends must match the dollar amount on hiring new employees.
2) The money spent to increase dividend payments per year should be matched in compensation for new hires.
3) Cut dividends in half and use the money left over to hire new employees.
Any one of these solutions would require very little per company in extra spending, but would create millions of new hires. Corporations would be able to build faster, and because of the larger workforce, the economy would grow more rapidly whereas those currently without work would no longer take money from tax payers and could use earned money to travel, pay off debt, build houses, & purchase large goods.
As individuals we are but one word, one plea, all sharing the same problem, but together, we can accomplish great things and possibly succeed where Washington and the largest of American corporations have failed. Sign this petition, and force Washington to fix this problem, and regulate large corporations who benefit from public ownership, by making very small minimal changes that will grow the economy. In doing so, Washington, along with all the large corporations, will have no choice but to acknowledge our indignation. Together, we can help America to flourish once again. And with your support, we will force Washington to hear our voice and regulate corporations that we as tax payers bailed out.
Feel free to share with your friends & family. The more people we reach the more signatures we collect. Thank you for your help.