We are all very aware of the problem of short term planning in our society. Though it seems the issue is never discussed or addressed by our government.
But that may start to change with President Trump taking the lead, as he usually does with these types of things.
Why Quarterly Earnings Reporting Is An Issue
Recently, President Trump made his opinions known through a recent tweet:
In speaking with some of the world’s top business leaders I asked what it is that would make business (jobs) even better in the U.S. “Stop quarterly reporting & go to a six month system,” said one. That would allow greater flexibility & save money. I have asked the SEC to study!
— Donald J. Trump (@realDonaldTrump) August 17, 2018
First off, let’s define the term:
A quarterly earnings report is a quarterly filing made by public companies to report their performance. Earnings reports include items such as net income, earnings per share, earnings from continuing operations and net sales. By analyzing quarterly earnings reports, investors can begin to gauge the financial health of the company and determine whether it deserves their investment.
Sounds good so far. It helps investors make more informed decisions on the health of a company.
The issue is that forcing a company to report every 3 months to investors skews any incentive to plan for the long term health of a company, and instead points the focus towards making the numbers ‘look good’ every 3 months.
This gives the largest investors of a company tremendous influence and power over the company, and leads to things such as:
- Stock buybacks: the company spends its money buying its own stock shares in order to increase the value and price of the stocks (which the largest shareholders own the most of)
- Firing employees: This may have nothing to do with the overall health of the company or performance of the employees, but firing a lot of employees makes the numbers ‘look good’ by reducing expenses for the company in the short term
- Ignoring research and development and expansion of the business: If you are only focused on getting the numbers better in 3 months, you may not spend resources into getting better computers or equipment, or hiring more employees who would help the company long term, because they may be a net drain on the next quarterly report
We Need To Bring Up And Discuss Long Term Planning For Our Nation
Long vs short term planning is a discussion we all need to be engaging in.
Politically speaking, we need to flip the script and think long term about everything.
Some examples we can think about are:
Long term, Silicon Valley giants will simply silence and shut down anyone who is not on the Left. We need to think long term on how to respect and guarantee free speech for all, not just those who support Open Borders and Globalism.
Long term, we have to address the fact that feminism has been a huge negative on Western Civilization, especially in regards to our fertility rates. With birth rates way down across the West, we need long term solutions to address and solve this massive crisis.
Long term, continued 3rd World migration into the United States and the West will only lead to the demographic displacement of all White European peoples, and the literal destruction of Western Civilization. It’s just a numerical fact.
We also need to think long term in our own lives, and always ask ourselves ‘Will this be good or bad for me in the long run?’
If it good for me long term if I waste all of my money getting drunk and high every weekend?
If it good for me long term if I constantly like, comment on, and follow attention seeking THOTs online, which only encourages them to keep posting slutty pictures of themselves?
If it good for me long term if I never speak the truth about what is going on in our nations?
But, replace ‘good for me’ with good for my children, grandchildren, and people, NOW you are really thinking long term.
Our ancestors were able to have children through plagues, occupations and invasions, and more in order to ensure that their civilization and future generations would survive.
We just have to remember that, and keep thinking about the long term.