Notes of Note from John F. Ince

Corporate accountants’ dogmatic focus on profitability drives out humanity. There is no room for entrepreneurial creativity, much less the wellbeing of the larger community or the “common good.”

This parasitic perspective caused commercial lenders to issue sub-prime mortgages beginning in the late nineties and continuing until the housing credit bubble burst in 2007. In 2005 the majority of housing loans made by lenders such as Countrywide Financial and Washington Mutual were “interest only” back by little or no documentation — so called NINJA loans. Accountants advised financial-industry executives they could improve profitability by selling sub-prime (adjustable rate) mortgages and bundling them into mortgage-backed securities. Later the same parasites told executives they could further improve profitability by decreasing the loan documentation requirements.

In one industry after another we find examples where nearsighted pursuit of profits has trumped common sense and devastated the common good. Most California private timberland is owned by Sierra Pacific Industries that advocates clearcutting where all trees in a given area are cut down, the valuable timber hauled away, the residue burned, and the ground scraped bare and sprayed with herbicides. This process makes more money for SIERRA PACIFIC but it passes on environmental damage to the public and drastically diminishes the amount and quality of the watershed.

Most public utilities have a similar narrow focus on profits at the expense of the common good. For example, TECO Energy operates the massively polluting Big Bend power plant in Apollo Beach, Florida, because it has low operating costs due to its construction before modern standards for pollution control.

The advent of accounting parasites is the ultimate triumph of the nerd: hundreds of thousands of corporate finance people who care more about numbers than they do humanity. A culture of parasites who think nothing of firing workers, or stripping them of their benefits, in the name of profitability,

Accounting parasites have neutered our entrepreneurs, sucked the humanity out of corporate culture and ruined the economy. They don’t understand that the U.S. consumer economy will not function properly unless there is full employment.

Fixing the U.S. economy doesn’t mean replacing capitalism with socialism — that would bring another set of equally dire problems. The solution first requires taking parasitic accountants out of the corporate driver seat and replacing them with entrepreneurs — like the late Steve Jobs. And second, replacing the current corporate ethics and the relentless emphasis on profitability, with values that consider both workers and the environment; an ethical system that recognizes the American economy won’t function unless we all have a stake in it.

via Bob Burnett: Who Killed the Economy? Accounting Parasites.

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