Friday, February 7, 2014

Demand by consumers creates nothing

“The mature corporation,” wrote Galbraith, has “readily at hand the means for controlling the prices at which it sells as well as those at which it buys.... Since General Motors produces some half of all the automobiles, its designs do not reflect the current mode, but are the current mode. The proper shape of an automobile, for most people, will be what the automobile makers decree the current shape to be”

Extend that to fast food. Wages. Benefits. Quality of housing. Interest rates on auto loans. Revolving credit. Mortgage terms. Foreclosure practices. Political agenda in Washington or Atlanta. We need jobs. We get gun rights. We need jobs. We get corporate tax cuts for outsourced jobs. We want income and employment security. We get temporary employment agencies hiring people inside manufacturing plants like Kubota, Gainesville.

The world is not what people want.

For more reading on how the mature corporation has acted in our lifetimes, read about Enron.

Or Domino's Pizza in New York.

That's corporate citizenship at its very, very best.

No comments: