Corporation Crisis
In the World Socialist Website On March 7th, 2011, Patrick Martin article The US state crisis: Where should the money come from?, states that Republican and Democratic governors say that because there is no money, governors have no choice but to cut wages, health care, health benefits, pension of public employees, school funds and other vital social services but is it truly necessary to take money from funds that are essential for most American’s to continue normal, healthy lives? In the world socialist website, many ideas were thrown in the air of what could be done to gain money back and pay off America’s deficit. Ideas such as: Using 10% of $1.37 trillion that the richest individuals in the United States dispose of to help pay for off deficit in all 50 states. Combining profits of all American corporations that hit an annual rate of $1.66 trillion in 2010 in the third quarter a tax cut of those profits would eliminate state deficit and a 10% of the $2 trillion in cash that U.S. corporations are currently sitting on would not only eliminate deficits in the U.S. but also all city deficits, local governments and preserve jobs for thousands of Americans (www.wsws.org). Governors of the state are looking to take money from funds where Americans need it most, but they should be looking to corporations that are sitting on billions as means to pay off U.S. deficit. Money Hungry, greedy, self-indulgent corporations is the main reason why the U.S. is facing such a financial crisis, their interest lies only in making more profits for their shareholders by cutting wages and moving jobs overseas to developing countries, where the cost of goods is cheaper.
American corporations need to invest more time into building factories here in the U.S. to ensure more jobs for Americans. In watching greed murder the country, Paul Craig Roberts writes, “The U.S. would do the innovating, design; engineering, financing and marketing, and poor countries such as China would manufacture the goods that Americans invented (195)”. In order to make a bigger investment, American corporations send their factories across sea’s to developing countries where the wages are lower, cost of the product is less to get made, shipped back to the States and sold for a very low cost. This may not seem like a bad idea for some, but when you look at the amount of American’s that are without a job, not being able to pay their rent, for the many others across seas barely making enough to pay for food and rent, it is a big deal.
Our financial crisis in America lies merely on money hungry corporations that do not put into consideration the effect their business may have on American Economy. Ralph E. Gomery, states in Testimony before the committee on science and technology, U.S. House of Representatives that, “In the new era of globalization, the interests of companies and countries have diverged. What is good for the American’s global corporations is no longer necessarily good for the American economy (179).” As U.S. Corporations capital increases by distribution of factory’s and supplies overseas, many Americans loose a chance of have a decent job. What one American can do, 5 workers in china can do for a lower wage, and in return corporations raise money, expand business and bring in the profit while others suffer.
In 1929 the stock market had plunged, by 1932 America was stuck with the greatest financial crisis in history and one which had turned a nation of farmers into a new industrialized America.” United States economy’s collapse into the Great Depression, an unprecedented period of high unemployment, low productivity, bankruptcy, farm foreclosures, bank failures, and homelessness. By 1933 the value of all goods and services produced in the U.S. was only 60 percent of 1929 values, the value of stocks on the New York Stock Exchange was less than a fifth of its 1929 value, and the unemployment rate had risen to almost 25 percent.” The great depression left many people unemployed and homeless. Similar to our crisis today, Corporations sending jobs over seas leaving many Americans with out jobs, the great depression left many farmers without jobs since the U.S. was becoming an industrialized country.
So is the solution to paying off America’s Deficit, taking money out of school funds or Medical Benefits? No, Americans worked hard for those benefits and funds, there is no way that we should have to pay for others financial mistakes. Instead, I think it is a great idea to take money from corporations that are sitting on billions and from the wealthy. It would also be a wise decision to bring our factories back to U.S. ground so more American’s can be employed but only after all our deficits are paid off, too many sudden moves can lead us back into financial crisis,we should be careful as to what decision to make first.