Thursday, May 9, 2013

Investing Problems

I intended to wait until next week to post a new observation, but I have decided to end my hiatus a little early. This might mean that my posts may now go up on Thursdays instead of Tuesdays, but my plan is to just have a new post sometime between the start and end of a week. Now without further adieu, here is my latest observation.

               America is a Capitalist society. As many people know, there are quite a few complaints against capitalism. One that is probably the source for all the others is Investing/Stocks. I will admit that there are benefits to the system, but first I shall address what I hate about it.
                One day, a few friends and I walked to a little bread shop that a woman operated inside her home. The bread there is delicious and at a good price, so it may sound like a fantastic idea when one of my friends says, “I hope she opens a chain.” However, I hate that idea, because that will destroy some of the things that made that place so great.
                When opening a business, you have to worry about costs. If you start a chain, then that means you have to hire people. This means you have to make sure you sell at least a certain amount of goods to pay these people reasonably, or at least what society says is reasonable. However, you also have to pay for another building and the costs for operating it. That alone is quite an expensive feat. From there, owners have a few options. They could get a loan, invest what they have, or have stocks. The last is the trap that causes so many problems.
                Having investors allows a company to kickstart itself or ideas that need funding. However, having investors and good customer service is almost impossible. The reason is that your company loyalty is split at least three ways; yourself, your customers, and your investors. And unless you are able to buy back the stocks (also expensive), you can’t get rid of the investors.
                The big problem with investors is the need to not only having to pay them, but having to pay them more continuously. This comes about due to the greed of people, but also because of the constant change of investors with the stock market.
                 These investors help forge the hatred for banks. It’s enough that companies have to make money for its employees and executives, but then they have to make more than just a profit for their investors. When I read Bank of America’s statement on why they wanted to charge fees for their card usages, I was pissed. The guy said that they had a duty to make more money for their investors. The company makes a huge profit as it is. There should be no real need to milk its customers more than necessary.
Now I have to admit that not all investors have a lot of money and are greedy fools. Some are just trying to make an extra $100 in this legal gambling arena. And as I hinted before, there are benefits. The biggest benefit is the kickstarting. Business owners, especially small ones, can’t afford to fund everything that is needed. This is one reason why I am a fan of the Kickstarter website idea. It provides an alternative and basically a one-time payment for an investment. No need to worry about stocks to affect how you run a business.
Stocks also provide an alternative income that becomes more and more necessary when job security and/or pay are not the highest or at an acceptable rate. This becomes even more so when retirement comes along. When people are no longer capable of working, but can’t afford everything they need, then they need some alternative.
The last chief benefit that I will cover is the possible distribution of wealth. Since the investors are normally the people with money, it provides a reason for them to help small businesses or new ideas get funding.
I wish there was a true good alternative to this system, but anything change will cause victims. There’s nothing around that. The Kickstarter website may be best we have.

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