Quetesh
Well Known GateFan
Society will fall if we don't allow the corporations to continue to succeed. This all goes back to the fact that there really is no way to have a macro (country size econ) without the micro ( business size econ). You can scream that the big companies are all monsters, but we the customers are the ones that put the little ones out of business. I ran a small one that was put out of business by a "monster", bigger companies can use economies of scale to keep their prices lower, that is just a sad fact. We live in a world with corps that help put food on all our tables, even if we don't work for them.
Corps make money, pay their employees wages, pay the govt taxes...
Employees pay taxes, spend a portion of their money into the economy, save a portion into the banks, which the banks need to use them lend to others to stay in business...
...and many other cascade effects that will upturn the natural flow of money into the economical system.
What happens when too many large companies fail? Aside from all the people that lose their jobs initially....supply declines, then demand is greater than supply and prices rise... and we get inflation. Inflation means our money is not worth as much and our exports will drop and imports will rise. When the govt reacts to inflation to try to control it, they use fiscal policies that create a retraction in the economy which creates a recession. Our society as we know it, need these businesses to succeed to remain as close to the equilibrium that it can.
Look at what happened when the auto business crashed, the banks, or healthcare companies. It got ugly fast.
Why do corps need to take these measures not to fail is the bigger question, and the answer to this would be the moral decline of today's society. In general more people are less truthful when it comes matters of importance and willing to step over lines that a few decades ago would not have been the norm.
We simply are not bringing our kids up the same way, ie with the same morals we were brought up with or for that matter, our parents were brought up with...and so on...again.
Corps make money, pay their employees wages, pay the govt taxes...
Employees pay taxes, spend a portion of their money into the economy, save a portion into the banks, which the banks need to use them lend to others to stay in business...
...and many other cascade effects that will upturn the natural flow of money into the economical system.
What happens when too many large companies fail? Aside from all the people that lose their jobs initially....supply declines, then demand is greater than supply and prices rise... and we get inflation. Inflation means our money is not worth as much and our exports will drop and imports will rise. When the govt reacts to inflation to try to control it, they use fiscal policies that create a retraction in the economy which creates a recession. Our society as we know it, need these businesses to succeed to remain as close to the equilibrium that it can.
Look at what happened when the auto business crashed, the banks, or healthcare companies. It got ugly fast.
Why do corps need to take these measures not to fail is the bigger question, and the answer to this would be the moral decline of today's society. In general more people are less truthful when it comes matters of importance and willing to step over lines that a few decades ago would not have been the norm.
We simply are not bringing our kids up the same way, ie with the same morals we were brought up with or for that matter, our parents were brought up with...and so on...again.
Last edited: