Thursday, April 11, 2019

Fortune 500 Analysis


I wanted to publish a list of the Fortune 500 for several reasons. Our retirement funds are likely in these stocks. I wanted to see how many US manufacturing companies still existed and how many were absorbed. That would give me some idea of how many manufacturing operations we will need to add to restore the US economy.  The Fortune 500 doesn’t list private companies and does not list foreign companies who have plants in the US, but they add a lot of jobs.  The Fortune 500 list gives us a reflection of our economy. I counted 257 companies that produce wealth and 199 companies that consume wealth. I sorted the 456 of the Fortune 500 list by industry.

Producing Industries
26% Manufacturing 119
9.4% Food 43
6.4% Mining 29
5.9% Energy 27
3.9% Property 18 
3.2% Transport 15 
1.3% Conglomerate 6
257

Consumption Industries
18% Financial Services 82 
10% Healthcare 45
9.0% Media 41
6.8% Retail 31
199

Producing industries extract resources, design, produce and manufacture, I include support industries that allow these processes to function. Most of these industries function in the free market economy where consumers control the prices through supply and demand.

Consumption industries rely on debt, government subsidies and overspending.

Manufacturing ranks first. Many companies have been consolidated. I was surprised to see a lot of companies still around as subsidiaries of holding companies with strange names. The US needs 7 million more manufacturing and mining oil gas jobs to reduce the US trade deficit and restore the middle class in the US economy.

The US will also need to reduce debt across the board.  Individuals, households, corporations and especially government need to pay off their debts. This will result in lower GDP as people pay off debts and buy less “stuff”.  Education, Healthcare and Government costs ignore supply and demand and need to be cut in half.  Debt growth needs to stop.

Financial Services revenue comes from interest on loans and premiums on insurance and these need to be reduced. Excessive government subsidies for healthcare and education have ruined these industries and they need to return to free market control.

Media revenue comes from advertising. Consumers need to wise up and rethink their priorities. The most advertised products are the least necessary.
Norb Leahy, Dunwoody GA Tea Party Leader

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