These diagrams of MEGA corperations illustrate how large
conglomerates have increased the size of their companies to put
more money into fewer hands and increase the wealth of a few, thus ,
increasing the margin of earnings unequally. General Electric
appears to have their investments in enough diverse “baskets” that
even if during a time of depression, where the entertainment market
goes down and people are not spending their money frivolously,
they will continue to profit because some of their investments are
basic needs. Disney , on the other hand, seems to have alot of
investments in entertainment, what would be the fate of them if there
were another depression and Americans weren’t spending as much
pleasure money? Time Warner also has many vertical investments.
All four conglomerates have a good portion of the media.
It seems that this is the way they increase their money, through
advertising. Almost a form a brainwashing , if you will. They can
control what is show to the public to suit their individual financial
needs. An example of this would be to advertise on their networks ,
products that are they have investments in. Therefore, their news
portion would target people that would buy their products. An
example would be for NBC, which is owned by General Electric, to
have a special on The Today Show that would interest, say, 30-50
year old females, such as a special on women’s health issues. Then
advertise GE products that would target this population.
It is interesting how Westinghouse has investments in
Nuclear Power Plants Design and maintenance but also controls the
hazardous and radioactive waste. Therefore monitoring their own
waste.
Disney has a considerable investment in entertainment.
This is profitable as long as economy is good. But what happens if we
have another depression or war, where will Disney be then? America
will not want to spend their earnings on entertainment when things
are tough. It just seems Disney could do really well or go down quick.
This diagram also illustrates how big mega-companies
keep growing and can eventually take over the world. Healthy
capitalism turned into communism and corruption, without thought to
the effects on society. People climbing over one another to get to
the top. What will happen to all the “mom-and-pop” businesses,
how can they compete in this growing world of conglomerates?
It has become a runaway market, with people’s lives
being destroyed on the way up. More money into fewer pockets
which make for alot of financial control. The American dream out of
control. It should be the task of the government to control
capitalism, on behalf of the citizens they are suppose to represent.
What about the waste these companies have? Do they
consider the environment And the possibility of using up the natural
resources, or are they stepping on society to climb to the top? And
what is it they are trying to achieve, more money, more power, or
both.
“Free Enterprise” Capitalism was apparent years ago. It
was a time small private businesses sometimes organized around the
extended family. Each company provided goods and services to b
marketed locally. After the Civil War big changes in economy
became apparent and continued to this day. The most successful
companies survived, forcing the smaller companies out of business.
Free enterprise capitalism lead to corporate capitalism. This is where
a few large companies came to dominate most product and service
areas. In K. Neubeck’s book “Social Problems”, he quotes M. Parenti
as he underscores the degree to which our economy has become
concentrated. ”Less than 1 percent of all corporations account for
over 80 percent of the total output of the private sector. In 19992 the
combined sales of goods and services of the corporate giants
totaled 4 trillion dollars.”
Competition is a good thing because it encourages
growth and prosperity. In the 1980’s, after deregulation, this is when
competition got out of hand., and the rich became richer and the
poor became poorer and the money gap widneed. There was more
money at the top. Allowing this type of formation of large
conglomerates will just put more money into the hands of a few and
increase poverty disparity and hunger in our own country. What will
they do with all the money? You can only spend it so many ways.
Government should step in--maybe tax the richest and give to the
poorest and equal thing s out a bit. This type of corrupt capitalism will
disintegrate societies into small, elite winners, a mass of losers and
some law-breaking rebels. Social morality will erode and even family
bonds, people trying hard to get to the