This Week in Washington…

Posted on May 28, 2015. Filed under: Uncategorized |

TOP STORIES

Workers in scaffolding continue the restoration of the Capitol dome.

Workers in scaffolding continue the restoration of the Capitol dome.

  • Most polls show the undeclared former first brother and governor of Florida, Jeb Bush, leading the race for the GOP presidential election by between 2 and 5 points. The field is growing with former Pennsylvania Sen. Rick Santorum and former New York Gov. George Pataki joining this week. Looking Ahead: South Carolina Sen. Lindsey Graham is expected to declare his candidacy on Monday. And Maryland Governor Martin O’Malley is expected to announce his candidacy for the Democratic nomination on Saturday.
  • Speaker John Boehner (R-Ohio) has so far refused to yield to demands from members of both parties that he allow a vote on President Obama’s war powers act aimed at fighting ISIS. Walter Jones (R-N.C.) and James McGovern (D-Mass.) were the latest to join the chorus in a letter to the speaker. Looking Ahead: Boehner is hoping the president will start over with a new resolution.
  • The Veterans Affairs Department, which is the target of a billion cyber attacks per month, is developing a doomsday plan to implement if the attacks were to succeed. Looking Ahead: The agency is holding an internal cybersecurity summit in June.
  • German Chancellor Angela Merkel is the most powerful woman in the world, according to Forbes latest list. Hillary Clinton is number two and Michelle Obama also makes the top 10. Taylor Swift is number 64.
  • A recent GAO audit found that millions of dollars was charged on government issued credit cards at casinos and strip clubs. But banning the use of government cards in casinos overlooks the “many legitimate business-related expenses incurred at gaming facilities,” Geoff Freeman, president and chief executive of the American Gaming Association, wrote in a letter to the Pentagon.

Your Opinion Counts

 Are American “Investors” killing their Golden Geese?

By W D Budinger

American business corporations are a lot like that goose that laid golden eggs.  Like the fabled goose, they create and distribute wealth.  They are our nation’s crown jewels, the envy of other countries, the engines that made America the most prosperous nation in the world.  But in America today they are under attack and their very existence at risk.

In that old fable, greedy villagers killed their goose and destroyed its ability to create future wealth.  Our geese—our companies — hold considerable wealth inside as necessary to fund R&D, growth, and weather a rainy day.  That wealth represents an irresistible temptation for some “investors.”  The result has been a surge in activist investors and hedge funds that attack companies and demand that the wealth be distributed to shareholders.  They harvest the internal wealth and in so doing, cripple or kill the golden goose.

This harvesting is supported by a number of beliefs—myths, actually—that make the dismemberment of companies more publicly acceptable.  These wrong beliefs have taken hold over the last four decades and are generally accepted as truths in both boardrooms and classrooms.  They serve to rationalize harvesting over building.

Here are three of the most pernicious myths:

Myth One – A corporation’s sole legal purpose is to “maximize” profits for its shareholders—even at the expense of employees, customers, the community, or the environment.

The facts:  Not so.  There is no legal requirement.  There is no law in Delaware or any other state requiring a corporation to maximize profits.  Corporations are free to pursue long-term objectives even at the expense of short-term profits.

Myth Two – click here. ____

Bill Budinger, inventor, entrepreneur, founded and served for 33 years as CEO and Chairman of Rodel, Inc., a private company that built plants around the world to manufacture products for the electronics industry.

The Law: Proposed Rulemakings

  • The Department of Defense, General Services Administration, and National Aeronautics and Space Administration are proposing to change the federal acquisition regulations for contractors performing private security functions.
  • The Federal Housing Finance Agency is establishing a method for assessing the national average single-family house price for use in adjusting the conforming loan limits of Fannie Mae and Freddie Mac.

Resources: A quick and easy way to get info fast:

  1. For more on federal government rulemaking, visit the Federal Register
  2. Want to follow the 2016 presidential sweepstakes? All the polling data you’ll need is a click away.
  3. Get the latest from the declared presidential candidates: Democrat Hillary Clintonand Bernie Sanders and Republicans Ted CruzRand PaulMarco Rubio, Mike HuckabeeCarly Fiorina, and Ben Carson

Follow Caren Z. Turner @ https://twitter.com/CarenZTurner

Advertisements

Make a Comment

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Liked it here?
Why not try sites on the blogroll...

%d bloggers like this: