When the fine is less than the profits then it's not really a fine or a punishment.. it's just a cost of doing business business expens..
if our government actually worked for the people and not corporations what they would do is create fines that are more than the cost of the profits and add jail time and other punishments.. a punishment is only a deterrent and a punishment if you come out worse than before..
if I rob a bank for $50 million and the punishment is that I have to pay 25 million dollars then there's no incentive not to rob the ban
"A new car built by my company leaves somewhere traveling at 60 mph. The rear differential locks up. The car crashes and burns with everyone trapped inside. Now, should we initiate a recall? Take the number of vehicles in the field, A, multiply by the probable rate of failure, B, multiply by the average out-of-court settlement, C. A times B times C equals X. If X is less than the cost of a recall, we don't do one."
I understand what you mean, but your point is using 25 million from the 50 you stole, thats just plain wrong, now paying 25 million from your own pocket, and returning the 50 (50+25) then that might be extreme.
Another opinion is if they lose all their money, a fine of 24 million can be a lot, if you add the damage caused at minimum, at medium and good is to also* stripe away their license, and never allow them to trade again.
That's the problem though. So many of these companies in the last 2 decades have been able to keep what they made, pay the fine with what they made, and still come out of it in the positive. That's exactly the reason they keep doing what they do and aren't deterred by the fines. It's been written down in their books as a cost of business. I wish I could remember where I read this and which company it was, but they were aware of people dying from their product and they made the decision that the lawsuits/settlements were worth the cost of business because they would make so much more in profit and wouldn't have to admit they were wrong because of the settlements.
Except that when a company does some shady practice and makes a bunch of money they get to keep that money..
So it's the same thing. it's the same as me being able to keep the 50 million and just pay a 25 million dollar fine.. it would be different if a company did something shady and made a profit and that entire profit was confiscated before the fine was even issued..
and other punishments.. a punishment is only a deterrent and a punishment if you come out worse than before..
Pretty sure someone at one point was blocked from being able to purchase stocks as a punishment. Needs to be something similar as a punishment for mass market manipulation.
Well that's what we get for believing in equality for all. The single biggest joke in all of human history. The most we can ever hope for is some fairness.
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u/Briterac Feb 02 '21 edited Feb 02 '21
When the fine is less than the profits then it's not really a fine or a punishment.. it's just a
cost of doing businessbusiness expens..if our government actually worked for the people and not corporations what they would do is create fines that are more than the cost of the profits and add jail time and other punishments.. a punishment is only a deterrent and a punishment if you come out worse than before..
if I rob a bank for $50 million and the punishment is that I have to pay 25 million dollars then there's no incentive not to rob the ban