Our Corporate-driven Nation
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Our Corporate-driven Nation
We live in a corporate-driven nation. The view of our government is reflected in the French term “laissez faire” which means, “let people do as they choose.” This suggests minimal government interference in the business enterprise system. This notion is referred to as the “free enterprise system”, or capitalism, which implements the right to private ownership of property, competition within the business industry, and restricted government involvement in the corporate sector. Canada as we know strongly practices capitalism. This implies that our government is run by the corporate sector, mainly multinational corporations. The corporate sector yet propagates the need for less government and fewer taxes. The corporate sector plays a prevailing role within the government as our top politicians depend on them. The industry performance of the corporate sector is directly proportional to our country’s economic performance in the world economy, which is an issue on the crest of every politician’s agenda. Also, the corporate sector has the citizens on their side when it comes to their struggle against the government for “fewer taxes”.
All of our politicians, be it the Liberals or the Progressive Conservatives, rely on the massive funding of the corporate sector. The corporate sector plays an important role in elections. Factors such as advertisements, flyers and television commercials are very important to winning an election. These factors however are very expensive. Private companies contribute most of these expenses in terms of donations as they support the party of their choice. This “choice” is directly proportional to the policies of the government to which the politician belongs. For instance the annual fiscal policy is an essential element of a corporation’s performance. The corporation also pays close attention to the government’s monetary policy, which consists of elements such as the interest rate and taxation. Since these elements are crucial to the corporation, the corporation ends up massively funding the government they find profitable. So as much as the politicians are funded during the election process, in turn, the corporations are also favoured once the government is in power.
Economic well-being is every government’s top priority. The performance of the corporate sector is directly proportional to our country’s economic performance in the world economy. Therefore governments at all levels provide both direct and indirect assistance for businesses, in the form of grants, loans and information. In the late 1980s, the government of Canada provided a loan guarantee of $1 billion dollars in an effort to prevent Chrysler Corporation, a leading car manufacturer, from bankruptcy. Similar loans are granted to corporations such as Air Canada and Canada 3000. This shows the degree of importance of these corporations to the government. The collapse of these giant enterprises would mean disaster for the Canadian economy. That is why politicians, citizen-investors and even nations rely on every statement made by top CEOs of such giant, multinational, corporations regarding their corporations’ future plans. It is based on these statements that stock and mutual fund indexes, and even the value of our dollar, fluctuates. Whether we like it or not, the corporate sector indeed is the lawmaker for this economy-savvy nation of ours.
Furthermore, the corporate sector has the citizens on their side when it comes to their fight for fewer taxes; the ultimate alliance. What better alliance than to have the citizens on your side? Canada is known for its high taxation, and the citizens consider a tax cut a “well-deserved treat”. Likewise, the corporate sector feels the same towards lower taxes. On the long run, taxes add up to millions of dollars for a very large corporation. That is mainly the reason why they consider setting foreign branches in developing or underdeveloped countries where such taxes are avoided. Considering the support of a nation behind them, the corporate sector again is dominant, this time in its struggle for fewer taxes.
It is quite obvious that the dominance of the corporate sector in Canadian politics has given our politicians the role of “hand puppets”. Frankly, this nation of ours is run by the corporate-sector as our politicians simply march to the drum of the wealthy corporations. Modern multinational corporations represent dominant power and have the potential to effect great changes in society. We cannot, however, afford having them around as
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Public finance, Tax, Corporate law, Types of business entity, Economic democracy, Corporate governance
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