From an extensive review of SEC filings, I found 40 Corps
headquartered in Arizona with Ongoing, Core Pretax Income or Pretax Loss of
at least $10 mil in any of the most recent three fiscal years.
These 40 Largest Arizona Corps filing with the SEC had Audited under US
Generally
Accepted Accounting Principles (US GAAP) Total After-tax Net Income from
Continuing Operations of $11,068 mil
in the most recent fiscal year 2011, which was a profit improvement of
a massive $24,329 mil as compared with the Total
After-tax Net Loss of $13,261 mil generated by these same 40 companies
just
three years earlier in 2008, the last year of the Bush/Cheney
Administration.
So if the
question to be answered is whether, in the aggregate, these 40 Largest
Arizona Corps are better off now than they were in the last
year of the Bush/Cheney Administration, the answer is clearly yes, and
by $24.3 bil better, as earnings
performance is measured by the
prestigious US Accounting Profession.
But a second salient story here relates to these 40 Arizona companies total earnings growth by year.
These 40 Arizona Corps generated Total After-tax Net Income of $8.8
bil
in 2007. Then the Great Recession hit all throughout the US, and in
Arizona's case, with the widespread devastating housing crisis, I think
it was probably close to a Depression there. These 40
Arizona
companies had their Total Profits of $8.8 bil in 2007 more than
completely wiped out in 2008, with a Total After-tax Net Loss of these 40 Arizona Corps of $13.3 bil in 2008. Yeah, that's a total profit
decline of $22.1 bil in just one year.....2008. And 19 of these 40 Arizona Corps experienced After-tax Net Losses in 2008.
Enter President Obama, and the US House under Democratic Control in both 2009 and 2010.
With much help from the Obama
Economic Stimulus, which started kicking in the latter part of 2009,
these 40 Arizona Corps saw their Total After-tax Net Income jump by a massive $19.5
bil in just 2009. Further, these 40 Arizona Corps experienced a Total After-tax Net Income increase of
another $5.0 bil in 2010 over 2009.
Thus, for 2009 and 2010 combined, these 40 Arizona Corps saw their Total After-tax Net Income jump by $24.5 bil, more than wiping out the $22.1 bil profit reduction in 2008, the year of the financial meltdown. Whew!
And yes, this Total After-tax Net Income of $11.2 bil in 2010 even
exceeded by 27% the previous high pre-Great Recession/Near Depression Pretax
Profits of these same 40 Arizona Companies of $8.8 bil generated in
2007. Now that is what I call a quick and massive profit recovery.
Enter the Tea Party election in November 2010, with Uncompromising, Very
Conservative Republicans, led by people like Eric Cantor and Tea Party favorite Arizona's Jeff Flake, taking control of the US House. The end
result was that these 40 Arizona Corps experienced an After-tax Net Income decline of 1% in 2011 as compared with
2010. And this earnings decline was even much more pronounced in the
first half of 2012.
This is why it is so critical to anyone who views the US economy as the
key issue in this US election, to not only reelect Democratic Moderate
Barack Obama as President, but to also vote to make sure that Democratic
Moderates
regain control of the US House, and that Democratic Moderates maintain their control of the US Senate. Then much needed wisely-designed,
directly-targeted, sustainable job-creating Economic Stimulus will
quickly pass, including desperately needed Business Income Tax Reform,
and this time the economic benefits
will be more fairly shared among all of the country, not just the very
wealthy and the Largest and somewhat Large Corporations.
So, why is it that there was a total earnings decline
in both 2011 and in the first half of 2012 in Arizona, and in many other US States all over the
country, when the US House
was under Very Conservative Republican control, while there was a very robust total earnings growth in many of these same US States in both
2009 and in 2010, when the US House was under Democratic control?
Well, this Very Conservative Republican US House is only interested in
two economic issues period.....extreme austerity and a
no-job-creation-strings-attached top income tax rate cut for the very
wealthy.....and they have absolutely
no interest in
compromise. Thus, nearly every wisely-designed, much-needed Obama
Administration economic
initiative in 2011 and 2012 has been stopped by this US House, and also
stopped by
filibustering by US Senate Republicans.
And the losers here were not just the unemployed, the underemployed,
the dwindling middle class, and the people trying to get into the
middle class. US Businesses were also big losers, by having
their
strong earnings growth in both 2009 and 2010 substantially decelerate in both 2011 and in the first half of 2012.
Arizona has been blessed to have two excellent Republican US Senators.....John McCain and Jon Kyl. Kyl is retiring, and Tea Party favorite Jeff Flake is running for his spot. I think there is a huge gap in competence between Kyl and Flake. Flake's opponent is a very accomplished, extremely bright Democratic Moderate, former US Surgeon General Richard Carmona. I think it would be in Arizona's best interests to elect Carmona. And that would give them two extremely talented, very influential Senators and on both sides of the aisle. Now that is something all Arizona citizens could be proud of and really benefit from.
Below here is the Audited under US
GAAP After-tax Net Income or Net Loss for each of these 40 Largest
Arizona Corps for each of the most recent five fiscal years. The overwhelming majority of these Arizona Corporations have a December
Fiscal Year
End (FYE).
