By Letter to the Editor on April 15, 2019.
There are two business worlds out there. One is capitalistic. The other is monopolistic. Most people think the big companies are really important in our economy. Nothing could be further from the truth.
The whole focus of big investors and big multi-national companies is on short-term profits, avoiding paying taxes, reducing employee numbers and wage levels in any way they can, outsourcing jobs to poor countries, and controlling the business sector they are in by creating a monopoly such that smaller companies cannot compete with them, and finally buying smaller companies, thus eliminating competition. They are often involved in preventing new ideas and products from being sold if they compete with their existing business.
Â This also allows these businesses to charge more for the products and services they sell or lease or finance. Big business wants governments to give them lots of money in the form of forgivable loans like the $6.5 billion our federal government wrote off from General Motors. And being international, they can readily avoid paying taxes using the tax havens around the world. On the other hand, small and medium companies are more efficient, their stock prices grow faster, and dollar for dollar invested they earn more money.
In Canada, large companies employ only 9.7 per cent of the workforce. Medium companies employ 19.8 per cent of the workforce, but small companies employ 70.5 per cent of the work force. The people who work at small companies have to work harder and smarter and be much more efficient than big companies. So small and medium companies are the engine that grows our economy, not the big companies. Finally, small and medium companies invest heavily in research and development as well as investing for the growth they need.
Unfortunately, it is the big companies that have the most influence with our governments, as they can invest large amounts of money lobbying for laws beneficial to their monopolies. They are also very good at marketing their products in a way that convinces people to borrow more money to buy their products. For example, the big auto companies are convincing people to take out eight-year loans or leases for their cars and trucks. This results in much higher growth in personal debt. It is the billionaires who own most of the stocks in big companies. Their wealth gives them huge political influence. There is a media company in Canada that owns more than 200 newspapers. The owners have eliminated most of their real objective journalism and replaced it with editorial writers who are paid to promote the best interests of the dominant billionaire class of people, especially in the area of politics.
Specifically, the billionaires want to eliminate all social support and health care programs partly funded by what little corporate taxes they pay. There is no limit to their greed. The new premier of Ontario wants to ad a new slogan to their licence plates. All the while he attacks their social support programs. I think this slogan should be: “Ontario, Open For Greed.” Is Alberta next?
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