Greed.
Greed and lack of accountability.
And years of unfettered monopoly power.
Over the past five years, Norfolk Southern has spent $18 Billion in stock buy backs and only $2 billion in improving operations.
The natural result is six times the normal amount of train derailments this year (according to dailymail).
In addition to buybacks, the firm cut staff by 40% while increasing train sizes by 20% AND fighting against safety measures.
Some might say that shows clear negligence.
But don’t worry because corporations never get in trouble, and they ALWAYS get bailed out.
The Ohio community impacted by the chemical waste will not be so lucky.
At least they don’t need to worry about the impending recession or housing crisis now, right? Okay, bad joke.
Norfolk Southern, who spent $4 billion in stock buybacks last year, offered up only $1 million in funds to residents in the impacted Ohio town. And this comes only after a week of public outrage.
The question now is, will struggling Transporation Secretary, Pete Buttigieg step up to the plate and force Norfolk Southern to increase safety measures and actually compensate the victims reasonably?
There is hope, but don’t hold your breath. As of Feb 20, 2023, Buttigieg did warn the train firm to make the residents of Ohio whole ‘or else’. However, Buttigieg and his compatriots have a long history of hollow threats, leaving corporations to do whatever they please with minimal consequences. Or ‘slap on the wrist’ fines that are simply the cost of doing business.
Our prediction? We expect that Norfolk Southern will raise the fund to a small $5m and increase their stock buy back program. Let us know what you think in the comments below!
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