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Not paying suppliers for 300 days sounds extremely exploitative, especially since most of the suppliers are from 3rd world countries. Supporting companies that have such draconian payment contacts is immoral, there should be a push for more fair payment terms.
What I love about these stories is the demonstration of how absurdly rich (as a civilization) we have become. Things that in no way, shape or form are needed for bare survival account for, i don't know, 95% of our expenses? We've always been pretty profligate, but I'd say that for many centuries we did not break 50%. Does anyone have hard data?
Yet somehow a large fraction of our population still has to spend a large fraction of their time struggling to secure food and shelter for themselves.
TL;DR After nestle they are the largest buyers of coffee beans so they act like Walmart. But they pay interest, at European rates (very low.) $58 BILLION...in six years. It might not end well. A small hiccup at those numbers can kill you.
Not paying suppliers for 300 days sounds extremely exploitative, especially since most of the suppliers are from 3rd world countries. Supporting companies that have such draconian payment contacts is immoral, there should be a push for more fair payment terms.
It's just a different way of financing. The interest is built into the higher prices JAB pays.
Earlier quoted context omitted.
Yet somehow a large fraction of our population still has to spend a large fraction of their time struggling to secure food and shelter for themselves.
Struggling for food was always the default world wide. Compare any time in human history to now, nothing comes close. I understand flipping the sanctimonious "bird" may make you feel like some kind of intellectual gangster. Humanity made progress in the right direction in spite of its many mistakes and especially Post WWII world had made mind numbing progress that is undeniable across the board.
> I understand flipping the sanctimonious "bird" may make you feel like some kind of intellectual gangster.
Really? You think I primarily care about the single most severe caveat to the success of our industrial economy in order to look cool?
Any idea where they get their coffee beans? While working in that industry for traders in UK it was common to lend money to African farmers for them to buy crops and tools (from the same firm) and then agree on a market price per pound produced. The trading firm would then pay the farmer months or years after. It really opened me on the work culture and conditions over there. By conditions I don't mean work hours or…
Not paying suppliers for 300 days sounds extremely exploitative, especially since most of the suppliers are from 3rd world countries. Supporting companies that have such draconian payment contacts is immoral, there should be a push for more fair payment terms.
> “Our extended payment terms have been in place for many years,” said Becht, JDE’s chairman. “JDE as buyers have paid for the extra costs that go along with the extended pay periods, so this cannot be used as an argument for the alleged extra pressure some trading houses might now be experiencing.” It's just a different way of financing. The interest is built into the higher prices JAB pays.
A lot of developed countries are also introducing caps on interest deductions (e.g. at most 30% of EBITDA per tax year). Since you're paying more to your supplier, which tends to be an at arms length market rate transaction, the entire acquisition cost can just be tax deducted and thus falls outside of the application of said laws.
Earlier quoted context omitted.
Yet somehow a large fraction of our population still has to spend a large fraction of their time struggling to secure food and shelter for themselves.
Struggling for food was always the default world wide. Compare any time in human history to now, nothing comes close. I understand flipping the sanctimonious "bird" may make you feel like some kind of intellectual gangster. Humanity made progress in the right direction in spite of its many mistakes and especially Post WWII world had made mind numbing progress that is undeniable across the board.
(note that at the time I made this comment, the parent had positive karma)
Earlier quoted context omitted.
Yet somehow a large fraction of our population still has to spend a large fraction of their time struggling to secure food and shelter for themselves.
Struggling for food was always the default world wide. Compare any time in human history to now, nothing comes close. I understand flipping the sanctimonious "bird" may make you feel like some kind of intellectual gangster. Humanity made progress in the right direction in spite of its many mistakes and especially Post WWII world had made mind numbing progress that is undeniable across the board.
Your argument makes things sound even worse today.
We're far more capable, but still playing the same game.