How do corporations become so powerful?

How do giant corporations gain so much power?

  • Total voters
    19
lifegoesonbrah

lifegoesonbrah

Well-Known Member
Corporations are monsters created by government. They grow so powerful because they have influence over politicians through lobbying. If this wasn't the case, corporations wouldn't be able to seize control of entire markets. Its government favoritism that allows them to grow powerful and limit competition. Under free market principle, wherever there is a profit niche, firms will enter until zero economic profit exists. If corporations can limit competition they can maintain profits above economic equilibrium. I'm not sure what the counter arguments to this are, please enlighten me.
 
Pipe Dream

Pipe Dream

Well-Known Member
IMO, corporations are so big because they are so profitable. The more money they make, the more they can invest in expanding and making even more money. Once they have money, they donate to causes that benefit them.
 
lifegoesonbrah

lifegoesonbrah

Well-Known Member
Pipe Dream said:
IMO, corporations are so big because they are so profitable. The more money they make, the more they can invest in expanding and making even more money. Once they have money, they donate to causes that benefit them.
Click to expand...

Yes but my point is that competition drives down profit in free market conditions. Hindering free market competition through government allows for excessive profit.
 
B

beenthere

New Member
lifegoesonbrah said:
Corporations are monsters created by government. They grow so powerful because they have influence over politicians through lobbying. If this wasn't the case, corporations wouldn't be able to seize control of entire markets. Its government favoritism that allows them to grow powerful and limit competition. Under free market principle, wherever there is a profit niche, firms will enter until zero economic profit exists. If corporations can limit competition they can maintain profits above economic equilibrium. I'm not sure what the counter arguments to this are, please enlighten me.
Click to expand...
Not much to add except the fact that very few people understand that's it's through the cooperation of the federal government and conglomerate corporations we are blessed with small business destroying regulations.
 
UncleBuck

UncleBuck

Well-Known Member
lifegoesonbrah said:
Corporations are monsters created by government. They grow so powerful because they have influence over politicians through lobbying. If this wasn't the case, corporations wouldn't be able to seize control of entire markets. Its government favoritism that allows them to grow powerful and limit competition. Under free market principle, wherever there is a profit niche, firms will enter until zero economic profit exists. If corporations can limit competition they can maintain profits above economic equilibrium. I'm not sure what the counter arguments to this are, please enlighten me.
Click to expand...
how awesome did that free market work before anti-trust laws? i'm sure the free market prevented monopolies without anti-trust laws, right? amirite?
 
B

beenthere

New Member
UncleBuck said:
how awesome did that free market work before anti-trust laws? i'm sure the free market prevented monopolies without anti-trust laws, right? amirite?
Click to expand...
How's that free market treating you in the treadmill business bro, how much does Uncle Sam get out of your investments, 15%, 20%, more? How many families on food stamps you helping?
 
UncleBuck

UncleBuck

Well-Known Member
beenthere said:
How's that free market treating you in the treadmill business bro, how much does Uncle Sam get out of your investments, 15%, 20%, more? How many families on food stamps you helping?
Click to expand...
uncle sam can get as much as he asks for, but he has some hard on about treadmills injuring people and black people getting all worked up on treadmills then playing jazz music and raping our white women while mexicans get on treadmills and become super-laborers that take all our jobs. but we the people have a ballot initiative to treat treadmills like any other commodity, and i will be hoping it passes.

i'm helping a few families on food stamps, one of them a chef. his kid now refuses to eat any eggs that are not from the butts of our chickens and who raves about the carrots, peas, potatoes and onions we give them for free.

i suppose uncle sam thinks that anyone who gets on a treadmill is bound to do something like this:

[video=youtube;0ivX8kjlCfc]http://www.youtube.com/watch?v=0ivX8kjlCfc[/video]
 
B

beenthere

New Member
UncleBuck said:
uncle sam can get as much as he asks for, but he has some hard on about treadmills injuring people and black people getting all worked up on treadmills then playing jazz music and raping our white women while mexicans get on treadmills and become super-laborers that take all our jobs. but we the people have a ballot initiative to treat treadmills like any other commodity, and i will be hoping it passes.

i'm helping a few families on food stamps, one of them a chef. his kid now refuses to eat any eggs that are not from the butts of our chickens and who raves about the carrots, peas, potatoes and onions we give them for free.

i suppose uncle sam thinks that anyone who gets on a treadmill is bound to do something like this:
Click to expand...
I take it this story holds about as much water as your Romney getting a $77K tax reduction story.
 
UncleBuck

UncleBuck

Well-Known Member
beenthere said:
I take it this story holds about as much water as your Romney getting a $77K tax reduction story.
Click to expand...
you have introduced some doubt that willard got to deduct the whole $77k for his badass dancing horse, but good luck on introducing doubt about why treadmills became prohibited for recreational use or who i share the (literal) fruits (and veggies) of my labor with.
 
B

beenthere

New Member
UncleBuck said:
you have introduced some doubt that willard got to deduct the whole $77k for his badass dancing horse, but good luck on introducing doubt about why treadmills became prohibited for recreational use or who i share the (literal) fruits (and veggies) of my labor with.
Click to expand...
I don't need luck Bucky, I have you and your track record to count on.
 
UncleBuck

UncleBuck

Well-Known Member
beenthere said:

When are you going to admit you were wrong Bucky?
Click to expand...
did you read the article? he's going to make all of that $77k back later on.

no multi millionaire would take the time to keep track of exactly $77,731.00 worth of dancing horse expenses to save $50. use your noggin.
 
deprave

deprave

New Member
I voted for Government Favortism and Other

but really its a combination, should of voted for all three..

Corporations become super awesome and then they buy government favortism, even if the government realizes it or not.

To answer UncleBucks "question", a real monopoly is impossible under a truly free market because only by being super awesome can one have a monopoly, if they are meeting consumers demands exceptionally well then they will be super awesome untill someone else is awesomer. Everyone will have equal oppurtunity to become awesomer. Very simple.
 
Nitegazer

Nitegazer

Well-Known Member
I'm all for 'other.' Corporations achieve what they have because they are efficient at producing what they are designed to produce: short term profits-- that includes tweaking the regulatory framework as needed. However, I don't think that makes them 'awesome.'

Bottom line is that everything that is decided within a corporation is decided by people. The corporation is a system that isolates the decision makers from the impacts of their decisions, with the exception of short term profit. If people choose to recognize the consequences of their corporate actions, and risk getting fired for making decisions against short-term profit, then the damaging effects of corporate power are greatly reduced. The trouble is, people don't like to accept responsibility (risking the paycheck), and instead want to blame the corporation.

Corporations don't hurt people, people hurt people
 
ink the world

ink the world

Well-Known Member
Everything thats decided in a corporation is decided by 1 thing:

Profit


There was a time when corporations had at least a small sense of community and responsibility. Those days are for the most part gone.
 
deprave

deprave

New Member
Nitegazer said:
I'm all for 'other.' Corporations achieve what they have because they are efficient at producing what they are designed to produce: short term profits-- that includes tweaking the regulatory framework as needed. However, I don't think that makes them 'awesome.'

Bottom line is that everything that is decided within a corporation is decided by people. The corporation is a system that isolates the decision makers from the impacts of their decisions, with the exception of short term profit. If people choose to recognize the consequences of their corporate actions, and risk getting fired for making decisions against short-term profit, then the damaging effects of corporate power are greatly reduced. The trouble is, people don't like to accept responsibility (risking the paycheck), and instead want to blame the corporation.

Corporations don't hurt people, people hurt people
Click to expand...
 
You must log in or register to reply here.
Top