F. George McDuffee wrote:

On 13 Mar 2006 08:40:08 -0800, "
wrote:

Bad idea! The owners of the company ought to be able to choose what to
do with earnings. Whether to keep the money in the company or take
money out. And they kind of do now, in that they can decide to buy
stock in a company or not.

With your idea, half the money is distributed regardless of whether the
company is in a growth industry or not. Keep the government out of
company financial decisions.


Dan


F. George McDuffee wrote:

This is why I think there should be a law requiring at least 50%
of all claimed earnings to be distributed as dividends every
year, with the option of a "dividend reinvestment program" [DRIP]
for the people that think the corporation knows how to spend
their money better than they do. [Government does not offer this
option....] This also forces the money back into circulation in
the economy.


Unka George
(George McDuffee)
================
Whose financial house is in better order -- yours or General
Motors? As a percentage of gross income, who had a higher
percentage of "retained earnings" -- you or Ford? Who would you
rather have managing your 401k -- you or the "blue ribbon" board
of directors at Enron?

The stockholders are the owners of the company [at least in
theory] If you read what I said about the Dividend Reinvestment
Program [DRIP] you would see that this allows the individual
owners [stock holders] to decide what to do with *THEIR* money.

The record shows that corporations are becoming increasingly
reckless in their fiduciary duties, with "management"
increasingly regarding any profit generated as theirs, skimming
increasing amounts off the top for grossly excessive salary and
bonuses for [dubious] performance and failing to invest in the
core business.

(1) if you don't like the fiscal policies of the company, don't buy the
stock. Nobody is forcing you to invest in stocks.

(2) if the majority of stockholders don't like the policies of the board of
directors, all they have to do is vote their shares.

Having the government force all companies to pay dividends whether the
shareholders want them to or not removes choice from the market.

Why do you so favor government micromanagement of the internal affairs of
businesses?

--
--John
to email, dial "usenet" and validate
(was jclarke at eye bee em dot net)