No more Twinkies - Hostess out of business

[GenuineRisk]

Originally Posted by Rupert Pupkin

I don't know what the answer is. Maybe the politicians need to give these companies some type of big incentive to stay here. Maybe companies that don't outsource should get big tax breaks. I don't know what else can be done.

I don't know, either. One of the tough things is that in the mid-20th century, we were the only first-world nation that hadn't had the ever-loving sh*t blown out of it by WW2, so we had an edge on the rest of the world. Businesses had to hire workers here because it was the only option, and so workers could demand a middle-class salary because employers didn't have any other option. And union workers drove up everyone else's wages to the middle class.

I assume businesses get to claim employee salaries as business expenses- maybe not permit salaries paid to overseas employees to be counted as expenses. Though there's nothing to stop corporations from just incorporating outside of the country.

I've had so many friends lose jobs to overseas firms. It's really frustrating. And it's not like the jobs were even that good to start with. One hadn't had health insurance in years, and it wasn't until his family got poor enough to qualify for Medicaid that he was able to see a doctor, and found out he was suffering from glaucoma. Lovely.

That said, here's a piece saying the failure of Hostess is the free market at work:

http://www.outsidethebeltway.com/the...-a-good-thing/

[GenuineRisk]

And a timeline of the Hostess failure:

[Danzig]

Money not reinvested.....that tells the tale. A few got rich, everyone else gets the shaft

[Alabama Stakes]

Originally Posted by Danzig

Money not reinvested.....that tells the tale. A few got rich, everyone else gets the shaft

i thought it was too many guys on the lines were eating more twinkies than packing ?

[Cannon Shell]

Originally Posted by Danzig

Money not reinvested.....that tells the tale. A few got rich, everyone else gets the shaft

Money "saved" is often not "reinvested" because it isnt a tangible asset. If the company was losing money than "saving" money is simply lowering expenses though that doesnt mean the company isnt still losing money.