How the Rich Benefit from the poor





How the Rich Benefit From the Poor The United States is the most developed capitalist economy in the world. The markets within the economy provide profit-motivated companies endless potential in the pursuance of pecuniary accumulation. Throughout the twentieth-century competitive companies have implemented modernized managerial procedures designed to raise profits by reducing unnecessary costs. These cost-saving procedures have had a substantial effect on society and particularly members of the working class. Managers and owners of these competitive and self-motivated companies have consistently worked throughout this century to exploit the most controllable component of the production process: the worker. The worker has been forced by the influence of powerful and affluent business owners to work in conditions hazardous to their well being in addition to preposterously menial compensation. It was the masterful manipulation of society and legislation through strategic objectives that the low-wage workers were coerced into this position of destitute. The strategies of the affluent fragment of society were conceived for the selfish purpose of monetary gain. The campaigns to augment the business position within the capitalist economy were designed to weaken organized labor, reduce corporate costs, gain legislative control and reduce international competition at the expense of the working class. The owners have gained and continue to gain considerable wealth from these strategies. To understand why the owners of the powerful companies operate in such a selfish manner, we must look at particular fundamentals of both capitalism and corporation strategy. Once these rudiments are understood, we will more clearly relate the perspective of the profit-seeking corporations of America. Legal discussion will also be included to show how the capital possessing elite operate through political parties to achieve their financial objectives. It is the synergist effect of these numerous strategies that have lead to the widening income gap in America, persistent attempts of contraction in worker’s rights and increased corporate political influence. These campaigns have come at an expense to Americans and will only continue to benefit the affluent society. Creating Corporate Value The United States is a capitalist economy. In a capitalist economy individuals who wish to gain wealth can invest their capital into markets in hopes of future returns. If this investment gains in value then the investor has earned a return, which can be reinvested. This creates a cycle of investing and reinvesting for potential future return. This wealth creating cycle is a fairly simple concept to understand, but wealthy individuals have learned to fabricate this cycle into different situations. A common form of investment is purchasing and selling of corporate stocks. The stock market works like all markets on the fundamental theory of supply and demand. The more demand for a stock the higher it is valued and conversely the less demand the less it is valued. Corporations are legal entities which issue stock to investors who purchase them and become shareholders of the company. The risk taken by investors is that when they buy stocks it is possible that the individual company will not do well, or that stock prices will generally weaken. At worst, it is possible to lose entire investments, but no more then that. Therefor, shareholders of a corporation are not responsible for corporate debts. So, a corporation would be a very attractive type of investment for potential investors to consider. Corporations compete against each other in markets in the United States and around the world. These corporations have employees who perform various functions that contribute to successful strategic goal completion. Corporations often will offer stock incentive plans strategically to employees in positions of importance. The enticement to employees is to work in a manner that will increase the value of the company and their shares of stock. These incentive plans were strategically developed by major shareholders because the corporate executives felt that people would be motivated to increase their own wealth. Most employees are motivated by money and will work harder when the chance is given for more money. The very nature of this strategy consolidates all the employees to act as one self-motivated entity in the pursuit of monetary accumulation. In Piven and Cloward’s Regulating the Poor, this point is illustrated: “Capitalism, however, relies primarily upon the mechanisms of a market-the promise of financial rewards or