Monday, April 15, 2013
Why Major Corporations Prosper And Small Businesses Suffer
Corporate profits and stock prices of the largest US corporations have grown substantially in our current economic environment. They have been able to grow their revenues and profits in international markets while cutting jobs in the US. Their stock prices also benefit from government policies which keep interest rates low and encourage investors to put their money in the stock market. Government policies work fine for them. Their primary concern is to lower their taxes even further and to encourage cuts in social welfare programs. Small businesses are more dependent upon consumer demand in the US. They don't benefit from rising stock prices and they can't cut costs by using lower cost labor overseas. Both of our political parties are pro-business when it comes to our largest corporations. Neither of them care much about small businesses. Moreover, most of the public does not make a distinction between large multinational corporations and small businesses. They believe that what is good for large corporations is also good for small businesses.
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