Originally Posted by Atras
Google was made for a reason.
So use it. If we're talking about what corporations do in a free market you should demonstrate that the conditions corporations now operate under emulate a free market.
By destroying the environment I mean doing things that are easy and more profitable that destroy the enviornment. For example dumping waste in rivers because its cheaper than disposing of it properly, or pollution because its much cheaper than going green, or like you said lumber companies deforesting, fisheries, oil companies, etc etc. Destroying the environment doesn't affect them directly so they do it. Its called externalities, we have to pay the cost not them. About harming potential customers, like I said before, most people don't know that companies do this, let alone could even trace it if they tried considering that no one knows where the true origin of anything is anymore or even cares. And it benefits corporations that do this because whatever they are doing that is harmful is cheaper which helps their bottom line.
I wonder how much of this is due to pollution regulations as well as the tragedy of the commons, not to mention limited liability. Again, up to you to show how much government involvement exists within a current industry/corporation.
Your misunderstanding what goes on. Companies go to these third world countries and offer an oppurtunity for jobs. People go to take this oppurtunity excecpt they find out that they are working in terrible conditions getting 5 cents an hour. Buying their products does not help them because no matter what 5 cents an hour will never be a living wage.
One question I want to ask is: why are these people taking the opportunity to accept the job? In many of these countries, the alternative would be to live in destitute poverty for a long period of their life, so the answer should come naturally and obviously.
I addressed the wage issue, albeit insufficiently. Buying their products does indeed help them mainly because it allows wages to rise because the marginal productivity of labor increases. The companies are able to invest in capital goods, meaning worker productivity rises accordingly. I don't even think I need to mention the benefits of what competition does here.
What this does is it makes third world countries dependent on these corporations for everything, but you have to realize why the corps are there in the first place. They are there because the people are willing to work for nothing. Once they find another country or area that is willing to work cheaper, they leave. Once they leave, they leave the area in complete desolation because they made them dependent on them, and then left them with nothing.
Why do you think they "depend" on corporations? I alluded to the answer in the first part of this post. It's because their typical alternative is returning to the agrarian society when subsistence is everything. It's either that or prostitution and crime. That's why investment is so important in these cases. If all a company gets is the stagnating the wages of their workers because people refuse to buy from sweatshops and instead "buy local," or because there's some protectionism going on, it's no wonder why they close up shop and move on to greener pastures.
The corporations do not cause growth in these countries, they build a system that is already bad and then let it collapse making everything worse than it was before they came. You are comparing this to the industrial period of america but the reason conditions got better here was because of gov regs; unions, demands for higher wages, better working conditions, etc. But in the third world countries there is no one to enforce that. The corporations do not belong to that country therefore the government cant force laws upon them, and if they try they will simply leave and go somewhere else where they can get cheap, unchallenged labor.
I'm comparing the growth of third-world economies into developed economies with the industrial revolution as a whole, not just the United States. However, it was capital investment that lead to higher wages and better working conditions. Most of the typical wage-raising, condition-improving solutions people have actually risk hurting the workers, usually by raising wages above their productivity (meaning, if continued long term, the company is setting itself up for bankruptcy), as well as having workers laid off to comply with regulations (mentioned below).
Environmental regulations don't mean pay 50 million dollars. They mean cut down on a certain thing that is hazardous that they are doing, for example cutting down on emissions. Always depends but small businesses would not be affected by this because they are small, whatever they are doing shouldn't need to be as regulated because its not making as much of an impact. Obviously regulations would need to be designed to not crush small businesses and regulations themselves should be designed to not allow large businesses to become too large.
Using $50,000,000 was an obvious exaggeration, but complying with regulations doesn't simply mean "cutting down a certain thing that is hazardous." It costs money as well. Sometimes, and especially in cases of lobbying, the larger corporations are able to comply, and the smaller ones can't. Hence, competition decreases. Even if smaller companies can comply, it usually comes at the cost of higher prices or decreased wages, or even laying people off. Also note that we are discussing the effects of regulations now, not what they ought to be.
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