The Power of Big Business
3 min read
This article looks at the characteristics of big business and the impact of the Great Depression on the power of corporations. It also considers government intervention and corporate scandals. There are many reasons for the power of big business, including profit maximization. However, there are also some reasons against it. For instance, big businesses can be seen as exploitative, and some of them can also be described as corrupt. However, despite their reputations for sleazy behavior, big businesses still have enormous power, and we have to understand them to know whether they are beneficial to society.
Impact of the Great Depression on the power of big business
The 1930s was an era of widespread economic failure that had a profound effect on many people. It forced people to learn the value of economic security and the importance of not wasting money or life on bad investments. It also taught people to appreciate democracy and the decency of ordinary citizens.
The Great Depression was a culmination of several factors. During the 1920s, the world was undergoing unprecedented economic growth. However, the Republican “business presidents” had promoted policies that increased income inequality and fostered a standoff over international trade. The policies of these politicians, while popular at the time, had unforeseen consequences. The result was a devastating effect on the economy. As a result, many banks collapsed and many people went out of work. The government had to cut spending to keep the economy going.
Characteristics of large businesses
Large businesses are organisations with a large number of employees and a high amount of revenue. They are able to handle risk better than small businesses and are more likely to be diversified. However, large businesses are also subject to internal bureaucracy, stock market dynamics, and other stresses. These stressors can lead to profit-bludging, a practice in which companies seek to pay suppliers less than they actually should for the same products.
Large businesses are often international and have many offices around the world. These companies often have a more bureaucratic structure than smaller companies, resulting in teams working in silos. Large companies also have more specialized departments, which are led by departmental heads. These departments consist of a team of experts.
Impact of government intervention on the power of big business
During the nineteenth century, the rise of big business created much controversy. With new sources of power driving machines in larger factories, production was organized under one roof. The result was that large companies employed thousands of workers. Companies also incorporated as public companies, selling stock to shareholders. Ownership of these companies became increasingly detached from management. Big business eventually created “trusts” that pooled the stocks of several leading firms.
In the early twentieth century, government intervention centered on two laws: the Sherman Antitrust Act and the Interstate Commerce Act. These two laws were enacted in the early twentieth century to curb the power of large businesses and protect consumers. While these laws didn’t solve all the problems faced by big business, they did create a precedent. The Sherman Antitrust Act of 1890 helped restore competition and break up monopolies. Other regulations were implemented in the early twentieth century, including a federal banking system and regulations of the railroads.
Impact of corporate scandals on the power of big business
Scandals have traditionally been viewed as harmful. However, they can have a beneficial impact. They can affect a firm’s financial performance, morale, and reputation, and can even result in bankruptcy. A recent example is the Volkswagen scandal, which has led to more than EUR30 billion in fines. Scandals can also spill over into other organizations, bringing with them the risk of reputational damage.
While the consequences of a corporate scandal are negative in the short term, they can actually improve a company’s performance in the long run. While investors may react negatively to a scandal, stock prices typically rise after the scandal is announced. After the scandal is over, a company’s stock price reflects its improved performance, matching or even exceeding its matched counterparts’ operating performance.
