Saturday, November 28, 2020

Big Business and Big Government - Bad for Mainstreet

 There are about 3,000 companies headquartered in the US with 5,000 employees or more; but just 100 of them control about half the US $22 Trillion Gross Domestic Product. (GDP) So if each of these global companies has 10 Board members, it means that 1,000 people control half our economy.  The next 40% of GDP is controlled by local, state and federal governments.  Together, these Big Companies and government controls 90% of all economic activity in our country.  It is very scary related to the impact on our democracy.   It is just too much power in too few hands.  We think our votes matter whether real or fraudulently cast, but the reality is that none of it really matters because this "Club" really controls our country for their mutual benefit.  These 100 global companies impose the politically correct ideology mandated by government as a trade off for their ability to make money without limit.  Given their collusion with government, it should be no surprise that some of the wealthiest areas in the country surround Washington DC.  

These Big Global Companies actively supported Joe Biden in the last election because they know they can buy him off and control him.  They have already done so.  They hated Trump because he has never been a member of their Club even though he is a billionaire.  Since he was already rich, they could not bribe him, or his family with Pay to Play schemes the way they did with Crooked Hillary, the Biden Crime family and many others in the Deep State Swamp feeding at the trough.  

The banks that were too big to fail are even bigger today because the federal government forced the stronger banks to merge with the weaker Banks during the 2008 - 09 Financial Collapse making credit harder to get for small businesses.  The 100 largest companies in the country keep getting bigger by mergers and acquisitions that the federal government continues to approve as a pay off to them, which benefits Wall Street earning billion of dollars in various fees.  And, while these huge companies have access to unlimited amounts of capital, small and mid sized companies have limited or no such access.  The best thing that has happened to benefit these huge companies has been Covid as many small and mid sized businesses are now gone eliminating what little competition there was in the marketplace.  

Wal Mart destroyed main street.  Amazon is killing bricks and mortar retail of all types that just can't compete.  The best thing that ever happened to Amazon was Covid.  As a result of government ordered closures, 25,000 stores have already closed.   325,000 restaurants have closed permanently with even more to come.  Since there is still no additional Stimulus Plan enacted by Congress, many more businesses will close by the end of the year benefiting Big Business.  And, these large companies want unfettered free trade to give them access to China in particular.  They don't care about the 70,000 factories that they have closed in the US, or the 5 million jobs they shipped to China, Mexico and other countries because their only motivation is profit and senior management bonuses. 

While this Blogger supports Free Market Capitalism, it is clear to me that all of this is causing both personal and business inequality.  The richest 50 people in the United States have more wealth than the bottom 165 million Americans.  This is a recipe for revolution; like we see happening on our streets in many cities.  It is starting to feel like Russia before the Communist Revolution in 1917, when the Czar and a small number of people controlled all the wealth in the country and 99% of the population had nothing.  There was not a good ending to that story.  We can't let that happen in America.  

We don't need higher taxes and more regulations because they would kill jobs; but we do need more opportunity for Americans to open up and succeed with small businesses especially in our inner cities.  The Opportunity Zone legislation approved by Trump is a good start.  These 100 huge global companies should be broken up to create more competition to achieve lower prices.  Socialism is not the answer.  We need more Free Market Capitalism and smaller government to push more wealth out to the people.  Small businesses need more access to credit to fund growth.   We have work to do.  

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