This blog is devoted to the expression of my opinions on a variety of subjects, often political.

Sunday, May 30, 2010


Government Versus Corporations



                Corporations

Corporations are headed by boards of directors selected for one major purpose: They know how to make a profit, and nothing -- that is, “nothing” -- is more important. Corporations operate under the economic system called capitalism under which the United States generally operates in a significantly modified form.

Corporations hand pick a president, chief executive officer, vice presidents for every little thing, department heads, managers, supervisors, foremen, group leaders and anyone else they need to insure that the organization makes a profit and continues to keep the profit growing higher every quarter.

They hire workers to do their bidding, and they operate on one common philosophy: It’s my way or the highway! Unlike government, corporations have only “the market” and, to some extent, the stockholders, to keep them on the straight and narrow.

Corporations obtain huge sums of money from citizens (through sales, including government contracts) to operate their enterprise, but it’s called “profits,” not “taxes.” Some of that money is used for production (in corporations that actually produce something) but much of it goes for the large salaries required to keep the money coming in – and for often huge profits pocketed generally by its major stockholders (including the corporation’s leadership) and wealthy investors.

The legal obligation of the corporation is not to serve citizens (or even customers), rather its obligation is to do everything in its power to return a profit – the quicker and the larger the better – to its stockholders.

                                  Government


Government is run by those who are elected by its citizens to represent their interests. The president, the Senate and the House of Representatives all work in concert with the judiciary to provide for the needs of citizens.

In the United States that means that government operates under the restraints of the U.S. Constitution and its preamble…“ in order to form a more perfect Union, establish justice, insure domestic tranquility, provide for the common defense,[1] promote the general welfare, and secure the blessings of liberty to ourselves and our posterity…”

Unlike corporations, government is run not for profit, but for the single purpose of serving its citizens.


Through its elected officials, government raises money through a wide variety of taxes. The money goes only for those expenses approved by the duly elected representatives of the people. Most generally these include such big ticket items as education, highways and the military as well as programs designed to insure the health and welfare of the American people such as Social Security and Medicare.

                                    Commentary


The common call of anti-government critics is for government to be run like a corporation. Aside from being impossible (the purpose of government is diametrically opposed to that of business,) it would be a travesty for any government to ignore the fundamental needs of its citizens.

Government critics always zero in on the issues of high taxes, inefficiency, overspending and so-called “giveaway” programs, such as welfare and social security. Because these same critics are rarely heard criticizing tax favoritism for corporations or the outrageous spending for unwarranted international adventurism it leads one to believe the critics are being circumspect. It appears to be their true objection that the tax money is going to the underprivileged and elderly, not simply that “taxes” are too high.

The bottom line is that business is business, government is government.

Business is not government. Government is not business.

If you sincerely criticize taxes as being too high, then criticize profits and executive salaries as being too high. If you criticize government officials are untrustworthy and corrupt, then criticize corporation titans as untrustworthy and corrupt.

If business is business, then fair is fair.

3 comments:

  1. Hi William, as usual you gave us good food... food for thought :)

    If you have wrote this in Portuguese I can assure you it would make as much sense as it is. I guess every country, one way or another, are living the same and this situation has to change for the better soon enough - at least I hope so!

    Take care my good friend :)

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  2. Social Security is not a giveaway, it is deducted from every wage earners pay so no one is complaining about that. The compliant is that the govt. has taken what is not theirs to pay for programs it was intended to fund.

    The govt. is very inefficient and does not know how to manage anything.

    I personally think it is amoral and disgusting that a CEO of a company can make 300% of the average workers pay.

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  3. It's true, Anonymous, that Social Security is not a giveaway program, but not everyone is aware of that. Many critics of government spending erroneously think otherwise. Social Security and the Veterans Administration medical centers are examples of government programs that are very efficient and well managed. It's simply not true that government doesn't know how to manage anything. I agree that CEOs compensation is often obscene, but that issue gets far less attention than government spending, which goes for services we all need -- not to line anyone's pockets.

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