A Brief History of
Big Corporations and Job Creation in the U.S.
First some facts about the mission and purpose of corporations according to Milton Friedman economic theory.
Small and Mid Size Corporation CEOs, owners and investors have to face their workers and sometimes work side by side with them. Their workers become like family. Officers often know worker's family members and grow to care what happens to them. They treat workers as fairly as possible depending on competitve conditions.
Milton Friedman economic theory states that corporations have no social or moral responsibilities and only have a responsibility to their investors to maximize profits at any cost .. often by cutting the work force and pressuring remaining employees into higher, more stressful production where mistakes are more likely to happen. Mistakes or low production then are the named cause for firing another employee from the payroll and increasing profit margins.
What happened to profits from innovation, a better product, better marketing and salesmanship, inspired increased production from workers who want to do the best job possible for a caring boss and company?
Corporations and Corporate minded businessmen are not in the business of creating jobs. Jobs and workers are a necessary evil and an expense to be cut to the bone.
Corporations only need as few employees as necessary to meet consumer demand for products and services. Why would they want even one more employee than they have to have on the payroll.
So when a political candidate says they are a businessman and know how to create jobs, that may be partly true, but ttheir heart is focused on profits and cutting employee numbers and jobs to as few as possible.
Big Corporations want the fewest employees as possible to meet consumer demand at the lowest wages and benefits possible, with the most control over their hours and productivity as possible. They find these low wage desperate workers in third world countries and move their factories overseas to acquire the largest profit margin possible for their investors, and largest bonuses for officers.
Share the wealth is not in their vocabulary.
Big corporations support campaigns for political candidates that will put legislation in play for them that will give corporations the best opportunity to increase profit margins.
Bad trade legislation has been written allowing large U.S. Corporations to move their operations overseas and import their products back into America.
This miean moving good jobs overseas so wages are cut which results in less consumer demand in the U.S. Every time a consumer buys a product made overseas, money leaves the country which results in less U.S. consumer demand, therefore more U.S. businesses fail, businesses that cannot compete against third world country costs of making goods,
That results in U.S. business closings and less U.S. jobs.
We have a holel in the bottom of our U.S. economic ship called bad trade legislation causing money to flood out of our country.
Supposedly, our exports were going to match the value of imports to balance this out. We have a trade deficit of about a trillion dollars and our good U.S. workers are out of work and suffering. Our good and loyal small and mid size businesses cannot compete and are also suffereing and closing.
Republican leaders say get rid of regulations, cut taxes on business and investors, create a business friendly work environment and we can compete with imports.
First, cutting regulations will cost jobs created in the industries that provide regulation and equipment. Cutting regulations will also cut the protections government provides to our consumers, workers, communities, and environment. Just because thrid world countries don;t protect their citizens doesn't mean we shouldn't.
Second, cutting regulation costs, tax costs and labor costs will not result in more U.S. jobs. Remember ... no added consiumer demand, no need for extra employees. So all that money saved becomes corporate profits and officer bonuses, not jobs for workers.
And no matter how business friendly we get, meaning cutting wages below minimum wage, cutting benefits, requiring longer hours and more productivity with no union or government interference ... our U.S. workers will never be able to compete with the pennies a day wages paid to third world country labor.
... at least not without fixing trade legislation and that will take a mighty sword, an overwhelming Democratic progressive majority in the House and Senate to ever pass good trade legislation to create an even playing field for our U.S. businesses and workers.
So lets now review the history of big corporations and job creation.
- Slavery
- Indentured Servitude
- Illegal Immigrant labor
- child labor
- low wage female workers
- abusive low wage worker
environments before
unions got the support of
the government creating
the U.S. Department of
Labor and labor laws to
protect workers
- moving manufacturing and asssembly jobs overseas to low wage desperate workers
including child labot
- attempts to end collective bargaining in republican run states
- attempts to end unions by cutting public union work force numbers under guise of balancing the budget
- attempts to further cut union membership by cutting postal service officers and workers, one of the largest unions in the U.S.
One big corporate lobbyist said that his goal was to starve government of taxes so much that it would become small enough to drown it in a bathtub, thereby getting government protections for citizens out of their way to increase profits. A republican strategist was also heard to say that if they could get rid of unions, the largest supporting body for democratic political candidates, then they could also get rid of the democratic party.
Backroom talk and worries are always about citizen uprisings and revolts that must be ignored or downplayed by their corporate owned media or must be crushed by their political influence via police or national guard where necessary.
Are these really the people we would want running our government for we the people?.