Rich People and Poor People
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 family 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 on 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 through 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.
The 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 returns. 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 than that. Therefore, 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 pans 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.
The increased motivation of important members of the workforce 1,y the enticing tactics of greed for wealth is a result of strategic ‘planning by the major shareholders of the firm. The cost too, for these primary shareholders is the stock incentive plans needed additional stock to fulfill, which reduced the valuation of all stocks.
The major shareholders know this devaluation is only temporary because self-motivated employees will act in a manner that will increase the value.
The primary concept for discussion purposes is that self-motivated major shareholders have utilized the capitalist theory and thus, created a business compact with employees that will make self-motivated decisions on all levels.
The strategy worked and throughout the country employees are busy increasing the value of their stock, but most importantly, they are increasing the value of the major shareholders. We will see this investing concept throughout most of this paper because the wealthy resist adverse conditions with money.
The Grand Old Party The Republican Party remained dominant throughout the 1920s, remaining unaffected by factionalism that plagued the Democratic Party.
The party continued to align its platforms with the southern whites, and owners and managers of businesses. Even in extraordinary economic times of prosperity for the wealthy, the Republican Party continued to advocate industrial-economic values. The primary dilemma for republican business interests was the labor problem.
“The Republicans finally concentrated their discussion on four broad approaches to labor problems: the progressive approach, the open shop approach, the efficiency-engineering approach, and the political approach”. Most businessmen resolved harshly to end labor activism and to quietly continue their profitable business interests.
This behavior of this standpoint took the pattern of employer resistance to labor unions, but originally the open shop crusades proved to be the most fruitful in the short run.
The open shop crusade, now illegal because it gave employers the ability to hire prospective employees on the basis if they belonged or support trade union activities. This restricted the employee’s ability to strike on a particular issue because they lack the power of numbers that a union possesses and could be replaced.
Open shop enthusiasts were a major and vocal part of the Republican Party because of the financial resources they possess. Many republicans determined them intemperate and adherent, and their perspectives were damaging and extreme.
“These open shop enthusiasts constituted a vocal and influential segment of the party. They often proved quite effective in their efforts to chastise organized labor, for many Americans shared their concern. Still, many Republicans considered them extreme and doctrinaire, and their views harmful and inexpedient”.