Friday, December 15, 2017

Prices go up, payrolls down in mergers wasting billions

Remember when you read that CVS is spending billions to buy a health insurance company, and Disney is forking over a fortune to acquire some Fox properties, that there are tons of borrowed money in those deals which are often paid down through post-merger, higher consumer prices and reduced payrolls.

So don't be surprised if it costs more to see a Disney film, or buy marked-up items at your local CVS 
CVS N Tarrant Davis.jpg
where cashiers will be replaced with self-serve checkout machines.

Final thought: Mega-mergers like these often set other takeovers in motion, and the GOP tax giveaway bill which is all about maximizing corporate profits means we're in for a wave of consolidations which do noting for middle and working class Americans who are about to get shafted by the bill, its increases in health insurance costs and through wages that remain depressed.

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