Options Trading Tutorial - Can We Afford Obamanomics Part 2?

Can We Afford Obamanomics Part 2?

Corportaion ABA makes food products. It is based out of Dallas Texas where it uses only local beef. It's supports 800 local cattlemen and dairymen. It's processing plant employs 1200 workers. And it's product goes out to every McDonalds restuant in the nation. Given America's fasination with bad food. It is doing well and it's stocks are selling high. Then Obama is elected president. His first budget raises their taxes 20% and requires them to pay 5k per employee for health care. The Corporate execs assemble and say We will be "patriots" and pay our taxes without adjusting our costs. (As If) But the share holders meeting takes place and the share holders are asked to be "patriotic" and take the 20 percent loss. To which they vote a resounding NO. (We know the execs would never let it get that far, but that was for dramtizatrion) So the execs get together and try and figure how to offlay this cost. And they have two options. 1. Raise the price of the food products. Prices at all McDonalds go up 20%. Suddenly the Dollar menu disappears and food gets more expensive for Betty the single Mom who is struggling to feed her kids. Betty and everyone else has peanut butter sandwiches twice a week and skips McDonalds, which reduces McDonalds business by 20% and so they let go 20% of their work force. (That's not taking into account the federal minum wage which will affect things even more). McDonalds orders 20% less products from ABA Corp and tax revenues are exactly what they were before they were raised. End Results of Option 1 No new tax income, 20% lost minum wage jobs, life harder for Betty Option 2 ABA Corp sees green pastures on the other side of the Rio Grande and moves to Mexico, laying off all 1200 employees, and stranding all 800 ranchers and dairy men. End result option 2 No taxes whatsoever from ABA Corp, many lost jobs, depressed economy. The company chose option 2, why do business in a country that thinks you are there to pay their bills? Can we afford Obamanomics? You can't get something for nothing.

Public Comments

You want to know what I think about “wealth redistribution”. It is about time the rich and the supper rich cough back some of the profit they make to the population. They receive so much money from the tax payers trough government programs, tax deduction and tax evasion. It is only fair that they give back SOME of it (only 3% in average). The money the rich receive from the tax payers should be an investment; NOT A GIFT. Liberalism is a two way street. It should not only work for the rich.
No, We are headed for a Great Demorcrat Depression if Barack Hussein Obama is elected, God forbid, and implenents his Socialist TAX TAX TAX. The United Socialist States of America aka USSA. Karl Marx believed that socialism represents the transition between capitalism and communism.
You try to explain economics to kool aid drinking liberals. Good luck, Sir.
Stop the cut and paste. Rant elsewhere.
Do you have any idea what the CEO of that company takes home in pay every year????He isn't trickling down enough, greed.
Sure if we could afford to "bail out" Wall St., why not?
The only thing I take away from what you wrote is that a 20% increase on McDonalds food is more than offset by the lower taxes I'll have once the wealthy start paying their fair share of the tax burden. So, everyone wins. Thanks. I'm definitely voting Obama now.
Those are very depressing situations. I say we just dont vote for Obama.....
Let's put one fact on the table here. During an election politicians all twist the truth to get elected. The only use for voting president is their core ideals. What will they veto, what will they approve, what will they do with the military? That's all that matters. You really think Obama will or even could put through those economic plans? The president can't just say, "here's my plan" and it goes through. It has to be voted on, can be turned down, can be changed, and might not even make it to a vote.
No, he has already dropped from $250,000 to $200,000. And also in 2010 when he lets the Bush tax cuts expire, we will have to pay more taxes, that's a tax increase. What else is he lying about????
I'm willing to give him a chance after the UTTER COLLAPSE of Reaganomics. Who buys the cars that Ford makes? who buys clothes at Macy's and JC Penney? who eats at McDonald's? who shops at Wal-Mart? Who hires lawyers? visit doctors? buys medication? travels? So, small business owners and big business owners and self-made professionals, you try selling something to people who have no money (or credit) and see how far your business go See how far your business goes when you have under-educated, over-worked underpaid and unhealthy workers
We'd be doing Betty a favor if we weaned her off of that poison that McDonald's sells. If ABA does move to Mexico it just means that all of the illegal workforce that they employ here so they can pay substandard wages with no benefits will have to go back home and your ilk will be happy to be rid of all the illegal aliens.
Obama claims he wants to share the wealth. If anybody is gullable enough to believe that then I have some good ocean front property in Montana that I would like to sell them. When it comes to Obama saying he wants to share the wealth, I'm sure it won't be his wealth that he's sharing. Mischell will definately have something to say about that.
Have we, or any other nation prospered under our present system? And the idea that somehow they don't raise their prices is preposterous, or indicative of the fact that they already had factored in a huge profit margin. If you want people to buy your product, you have to make it affordable for them. Or it will have a built in limited audience. So if Option 2 is chosen he loses his US customer because they have no job, and he never had his Mexican customer because the pay scale wasn't high enough to afford his product. Now Mexico has an empty factory, and so does the US, and all the workers are out of work and they guy who owns the factory is in bankruptcy, because he got greedy and saw his workers as replaceable cogs instead of human beings. Even Henry Ford knew a low paid worker is not a purchaser. ANyone who would decide to close a business instead of taking three percent less shouldn't be in business.
I for one don't honestly believe that if elected Obama will be able to actually deliver on much more than 20% of the things that he is promising /threatening to do So I think that a lot of your fears are unfounded.I mean we ain't talking about a giant like LBJ here Obama is what he is which is a total rookie and the US Congress traditionally dictates terms to total rookie presidents and not the other way around
Pessimism is the best way to describe your argument. The security I enjoy in America could not be parallel to any other place so i will rather remain in America if i happen to be the owner of such ABA whatever. Why do America give aids or support to other countries if donating such to your neighbor gives u sleepless night? And people with this kind of reasoning will still go out and say Obama isn't a christian. I'm tired of people's hypocrisy.
I don''t care what McDonald's charges for their poison. Your facts are wrong so you supposed conclusion is wrong. If you want to talk about the truth check out his positions. He proposes $1000 for every new job in America. The raise in corporate taxes will only be 3%. McCain gives corporate welfare allowing the wealthy to live the same kind of eccentric lifestyle that he lives. He is all about appearances, like the expensive wardrobe he forced on Sarah.
NO!! They didn't offer to help any of us with our bills if something bad happened. Not that I would really want them to get that involved with our lives. That could be even worse.
We can not let this happen so it is Mc Cain for President Obama sucks he will screw things up big time for Americans . So we can not afford Obamanomics to happen thanks for writing this hang in there like the rest of us for the great win Mc Cain thanks have a great day today tomorrow and vote Mc Cain Nov 4 th