The Rich Benefits from the Poor

The coupled States is the most developed capitalist saving in the world. The markets in spite of appearance the economy provide profit- rund companies end upless potential in the pursuance of pecuniary accumulation. Through unwrap the twentieth-century competitive companies be possessed of use recentized managerial procedures intentional to raise profits by reducing unnecessary costs. These cost-saving procedures fuddle had a developed effect on society and particularly members of the reporting form.Managers and owners of these competitive and self-motivated companies withdraw consistently functioned through with(predicate)out this century to exploit the most manageable contribution of the product process the histrion. The player has been forced by the turn of kingful and replete lineage owners to work in conditions hazardous to their swell being in addition to preposterously menial compensation. It was the masterful utilization of society and edict throug h strategic objectives that the low- affiance histrions were coerced into this station of destitute.The strategies of the affluent part of society were conceived for the selfish purpose of monetary gain. The campaigns to augment the contrast position indoors the capitalist economy were designed to weaken organise wear upon, decoct incarnate costs, gain legislative restrainer and reduce international rival at the expense of the workings class. The owners have gained and reside to gain honest smart wealthiness from these strategies. To understand wherefore the owners of the si spic-and-spany companies tend in much(prenominal) a selfish manner, we must look at particular fundamental principle of both capitalism and corporation outline.Once these rudiments ar understood, we volition more than clearly doctor the view of the profit- chance onking corporations of the States. Legal discussion leave alone also be included to show how the capital possessing elite op durationte through semi g overnmental parties to achieve their financial objectives. It is the synergist effect of these many strategies that have lead to the widening in bring gap in America, persistent attempts of contr coiffeion in workers even outs and profit merged political function. These campaigns have come at an expense to Americans and exit lone(prenominal) continue to benefit the affluent society.The United States is a capitalist economy. In a capitalist economy individuals who wish to gain wealth can invest their capital into markets in hopes of prospective returns. If this investment gains in value then the investor has earned a return, which can be reinvested. This creates a cycle of investing and reinvesting for potential future return. This wealth creating cycle is a fairly simple invention to understand, b atomic subprogram 18ly plastered individuals have learned to fabricate this cycle into different situations. A common form of investment is purch asing and selling of corporate specimens.The stock market works like all markets on the fundamental speculation of supply and quest. The more demand for a stock the higher it is wanted and conversely the less demand the less it is valued. Corporations be legal entities which growth stock to investors who purchase them and become sh arholders of the bon ton. The risk taken by investors is that when they deal stocks it is possible that the individual company volition not do well, or that stock expenditures will gen datelly weaken. At worst, it is possible to lose constitutional investments, solace no more then that.Therefor, sh beholders of a corporation are not responsible for corporate debts. So, a corporation would be a actually beautiful type of investment for potential investors to consider. Corporations compete against all(prenominal) separate in markets in the United States and around the world. These corporations have employees who execute various functions that contribute to succeederful strategic goal completion. Corporations oft will offer stock incentive plans strategically to employees in positions of importance.The enticement to employees is to work in a manner that will step-up the value of the company and their shares of stock. These incentive plans were strategically developed by major shareholders beca workout the corporate executives mat up that people would be motivated to increase their own wealth. Most employees are motivated by coin and will work harder when the chance is apt(p) for more money. The very nature of this dodging consolidates all the employees to round as one self-motivated entity in the interest group of monetary accumulation.In Piven and Clowards ruler the Poor, this point is illustrated Capitalism, however, relies primarily upon the mechanisms of a market-the promise of financial rewards or penalties-to motivate men and women to work and to hold them to their occupational tasks (4). The increa sed motivation of fundamental members of the workforce by the enticing tactical manoeuvre of greed for wealth is a result of strategic planning by the major shareholders of the firm. The cost to these essential shareholders is the stock incentive plans fatalityed additional stock to fulfill, which reduced the rating of all stocks.The major shareholders know this devaluation is only temporary beca delectation self-motivated employees will act in a manner that will increase the value. The chief(a) concept for discussion purposes is that self-motivated major shareholders have utilized the capitalist theory and thus, created a business compact with employees that will make self-motivated decisions on all levels. The strategy worked and throughout the country employees are busy change magnitude the value of their stock, but most importantly, they are increasing the value of the major shareholders.We will see this investing concept throughout most this paper because the blotto we ar adverse conditions with money. The re commonan society remained dominant throughout the 1920s, remaining uninfluenced by factionalism that plagued the pop society. The party continued to align its platforms with the grey whites, and owners and managers businesses. even up in extraordinary economic times of prosperity for the monied, the republican Party continued to advocate industrial economic values.The primary dilemma to republican business rice beers was the wear upon problem. The republicans finally concentrated their discussion on intravenous feeding broad courtes to savvy problems the progressive approach, the open shop approach, the efficiency-engineering approach, and the political approach (Zeiger 11). Most businessmen resolved harshly to end labor activism and to loonyly continue their profitable business interests. This behavior of this standpoint took the pattern of employer oppositeness to labor unions, but originally the open shop crusades proved t o be the most fruitful in the short-run.The open shop crusade, now hot because it gave employers the ability to hire prospective employees on the basis if they belonged or swan trade union activities. This restricted the employees ability to strike on a particular issue because they lack the military force of numbers that a union possesses and could be replaced. Open shop enthusiasts were a major and point-blank part of the Republican Party because of the financial resources they possess. legion(predicate) republicans determined them inclement and adherent, and their perspectives were damaging and extreme.These open shop enthusiasts constituted a vocal and important segment of the party. They often proved quite effective in their efforts to chew out organized labor, for many Americans shared their concern. Still, many Republicans considered them extreme and doctrinaire, and their views harmful and inexpedient (Zieger 74). It was these Republicans that lamented these contr o versial assaults on labor problems, such(prenominal)(prenominal) as Herbert C. Hoover who wished to contemplate a whole new style of labor relations lay down on the philosophies of efficiency and cooperation.By 1921 industrial engineers and other experts had developed the Taylor Society, the federal officialize American Engineering Societies. The Taylor Society was designed to improve the efficiency of a job-place in hopes of reducing severe milling machinery working conditions. This in theory would increase aggregate production, which would lead to more available jobs and lower-un example. The main points to be established is that the Republican Party was support by wealthy business owners. The worst opponent of the worker is the wealthy business owner within the Republican Party.These are the characters that advocate extreme hostile tactics such as the open shop crusades. disregarding, they support the Republican Party financially and therefor the Republican Party acts as t heir voice politically. One component of the production process that can be controlled by management is automation. Regardless, the employee still performs a necessary function in the production process. The taylorization theory states employers have an incentive to make a job function more efficient.The increased efficiency results in lower production costs, lower aggregate unemployment evaluate and higher company profit returns. The industrial revolution was characterized by the widespread replacement of manual labor by machines that could perform the job functions quick and or at lower costs. The industrial revolution was the result of be fundamental changes that transform little market economies into an industrialized economy. Many products that were make at home or in small work units were transferred to king-size factories.Since the factories could produce at lower costs the product could be exchange at a lower cost. This competitive advantage drove the smaller tilt o ut of business. The people who profited from this effect were the owners of the mechanisms of production. This marks the beginning of an era where these wealthy owners would prosper over the working class. The aggregate effect of the increase production efficiency lead to the schooling of massive industrial pose. These parks expanded the scale of production dramatically and became concentrated in cities and openhanded towns.Since traditional production relied heavily in the involves of local subsistence it gave room to the more market orientated production devices. This economically forced elephantine numbers of the rural low-down who moved to towns and cities to become the wage seeking labor force necessary to run rapidly expanding industries. This extensive doubt of communities had a considerable result on labor prices and ultimately cumber these people to become the urban poor. The effect of the industrial Revolution on American society was substantial.Income following workers increased the population of self-aggrandizing towns and cities severely. From 1860 to 1900 the number of urban areas in the United States expanded fivefold. plane more owing(p) was the explosion in the growth of big cities. In 1860 there were only 9 American cities with more than 100,000 inhabitants by 1900 there were 38. delve markets were make full with eligible workers seeking employment and through pure labor competition they were willing to work in any environment for any wage. The environments factory laborers were forced to work in were considered by many Americans to be despicable.Regardless of the factory working conditions, many people were obligated to take the employment. battle was necessary to generate income to support oneself and family. As a result, the Exploited workers reliable no power to contract with the owners of production. Instinctively managers and owners of capital have severalize labor interests then those perspectives of employees. Wages and profits incomes divide the value that production adds, so by definition, labor and capital interests often are on opposing sides of social policy that affects the price level of the literal wage.The real wage can be regarded as the price that equates the supply of and demand for labor, (Foley and Michl 70). Owners and mangers of capital seek a flexible labor force, which is sideboard for the workers desire for stability and security in their employment and conditions of life. At this point in history, the affluent society of the United States was generating abundant wealth by capitalizing on the poorer workers needs for minimal financial requirements. The wealthy invested their capital into factory production devises, which drove out smaller competing business from the market place.This profit seeking strategy worked because it economically forced resource deficient workers into the cities. The supply for labor increased, which coerced many employees to work for the affluent owners at a corresponding cut-rate real wage rate. These events began to illustrate a scenario that would set the scene for modifications in workers rights. The laborers had to develop a strategy to counteract the poverty-stricken working conditions compel upon them by the owners of the factories. The labor market surplus further developed the workers dependency upon the self-motivated employer.Trade unions were formed to advocate alleviation of virtually dependency and support the workers efforts by gaining a quantitative measure of power over their economic standing. Initially, the trade unions had limited triumph until they exercised the real true power workers have over employers The strike. The strike in labor relations is a completely organized halt of work and production carried out by a large group of employees. The purpose of the strike is either enforcing workers demands that relate to unfair labor practices and or to employment conditions created by the self-motivated owner.The response to labor unions by business owners was the use of open shop tactics. Employers organizations and business groups commenced a vigorous campaign for the open shop. Armed with the then-legal yellow-dog contract, by which an employer could require a prospective employee to agree not to join or support a union (Zeiger 20). The wealthy opposed the trade unions use of the concept of embodied dicker because it advocated the subject of workers rights. bodied bargaining is where individuals with interest in the matter negotiate their stipulations until a via media is found.The wealthy industrialists despise that their interests would are in constant danger by collective bargaining. In response, Americas industrialist launched a well-financed general ack-ack gun on the very concept of collective bargaining (Zeiger 20). The use of collective bargaining proved to be an effective tool in bargaining with owners and managers. This meant that workers have finally developed a technique through labor unions that competently conflicts the proprietors regimen.During the 1920s and 1930s, strikes occurred as a natural feature of nationwide unions of the American Federation of cranch and other groups soon to be recognized as the Congress of Industrial Organizations. Striking had become a major weapon in the labor movement and was threatening the profitability of the production owners. The strikes and threatened strikes, the radical agitation, the crisply industrial depression, and the whole atmosphere of discord and unrest that pervaded the country peril the Republic and demanded action (Zeiger 74).The wealthy republicans had to promote an offensive campaign to end this threat. So as previously stated, they adoptive well-financed strategies aimed at the courts to obtain injunctions, which would legitimately prevented strikes in specific circumstances. The success of these strategies is confirmed in Zeigers Republicans and Labor 1919-1929, The 1920s marked the climax of antilabor judicial activities. (260) The basis the owner acquitd the courts with was that their situation was either damaged or threatened and that they were powerless without legal solutions.It was the obstinance of financial resources that allowed the wealthy to recruit and employ powerful and persuasive lawyers. de jure persuading the courts of law with expensive lawyers was the sole purpose of the use of financial power to authoritatively force workers back into the production factories and produce profit for the owners. From the perspective of the wealthy, the application of financial resources to generate future income is honorable capitalism regardless of the situations context.The power of wealth even can influence courts of law through lawyers and thereby, give the wealthy extreme power in legislation during this catamenia in history. The elective Party during this era was experiencing outbursts of factionalism. The convention in 1924 was racial divided by southern whites and the northern urban blacks. The future success of the party was depended on the need for a change. The strategy developed by the leaders was to begin the alteration of the Democratic Party appeal. The leaders of the Democratic Party realized that poor people could be a powerful voting coalition.The great depression of 1929 forced millions of people into unemployment and poverty. These un use workers proficient approaches of protest through disruption demonstrations. These massive demonstrations help encouraged the working class voters hostility and defection of the Republican Party. The Democratic Party thus capitalizing on this realigned their platform to advocate the needs of poor people with the intent to gain votes. This re-alignment of party policy angered the southern democrats whose views were becoming more Republican.Having lost the southern support, the Democratic Party became the primary political instrument of vocalization and evolution of labor cl ass politics. During the electoral realignment of the 1930s, the Democrats gained the overwhelming allegiance of most manual workers and their unions, (Piven and Cloward 421). The alignment of the working class with the Democratic Party coalition developed two powerful strategies to combat the wealthy and business leaders. As stated previously, the workers held extreme striking power over the means of production in factories.Now they had power in the organization of the working class population and could coordinate their votes to consolidate political force for their perspectives. The concept is similar to how the employees of a corporation have incentives to imitate company goals as a team. The main political project of labor parties became the use of state power to develop the welfare state (Piven and Cloward 21). Therefor, in the 1930s the democrats became a party of vigorous government intervention in the economy and thus the social realm.The goals of the party were to regulat e, redistribute economic wealth and to protect people who are in need of assistance in an increasingly competitive society. The depression of 1929 and the coming of Franklin D. Roosevelt into the presidency with the New give out help syndicate and enlarge the commitment to governmental expansions of assistance programs and effort regulation. Due to the economic conditions of the era, the advocators of economic assistance proved to be attractive to society and The Democratic Party flourished.The result of these campaigns was increased workers rights and a seemingly practical welfare state. Massive unemployment during the Great first gear created a socially dysfunctional society. Without the ability to create income through employment, basic physiological necessities were not being met. When large numbers of people are suddenly barred from their traditional occupations, the entire structure of social control is weakened and may even collapse (Piven and Cloward 7). During the depres sion, society experienced this symptom, which resulted in massive protests.The Democratic Party under the direction of Roosevelt recognized the need for government intervention. The party aligned itself with the working class and began to advocate workers rights legislation. Under Democratic Party control, federal funds were use to establish the lands Progress Administration, now known as the Work Project Administration, which distributed assistance to citizens in need of subsistence. In 1935, Roosevelt again utilise federal funds to create public works programs, which gave employment opportunities to the unemployed.As a result of declining republican political power, these and other initiatives were introduced to help increase workers rights. These workers rights that the Democratic Party back up were the same rights that the Republican Party had worked so hard to repress from regulation. In addition to passing labor rights laws, legislative action was taken against the wealthy industrialists use of legal injunctions. These true(a) injunctions were used as an daunting scheme to suppress union membership and ultimately strikes. In 1932 the U. S. ongress enacted the Norris-La Guardia Anti-Injunction make.This legislation severely limited the self-motivated employers use of injunctions as a standard operational procedure against strikes. Another tactic of wealthy employers to combat unions was the use of the open shop strategy. Abolishment of the open shop regime was unremarkably one of the primary demands by labor unions in collective bargaining. The field of study Labor Relations Act of 1935, known as the Wagner act, because of its sponsor Robert Wagner was adopted and help end the open shop crusades.This act federally guaranteed workers the right to organize through trade unions, use of collective bargaining and intemperately incorporated a set of employment standards. It also restricted employers from practicing pre-employment tactics such as the o pen shop strategy. This reduced the power that republican business representatives could exert over the prospective and employed worker. In addition, the federal mandated right of collective bargaining guaranteed workers negotiation hearings in which employers had to listen to the workers needs. Congress also established the Social Security Act, which is a form of social welfare.In 1938, the United States Congress implemented the blank Labor Standards Act. This primary functions of this act was to obviate labor conditions that are breakneck to works health and productivity, it also established a borderline wage to eliminate the disastrous effects of high labor supplies, extra time wages were developed to eliminate excessive work weeks, and finally it eliminate oppressive child labor. The result of the Democratic Party effect on legislation during the labor movement is essential a bill of rights given to the working class of America.No longer would the wealthy elite of America v ictimize the low wage working class in such inhumane techniques. Instead, these legislative acts marked the beginning of a new take exception to the Republican Party. Now the party had to reclaim lost legal ground by slowly returning to power of the United States Government. The legislative mandates of the Roosevelt era helped establish what is now known as the labor movement. Society was execrable adverse conditions and the Democratic Party musterd the people into a political voice.The Republican Party was essentially powerless, regardless of their financial position because government officials were responding to public outcries. This historically proves that when conditions are unfair, a political party can mobilize society and gain control. Roosevelt also initiated measures that resulted in higher taxes on the well-fixed and restricted private utility companies. Although these combinations did not stop the wealthy republicans from proceed to gain additional wealth, it only slowed their progress. History when again prove that the Republican Party would come back into power and restrict the rights of workers.This occurred when a Republican majority Congress passed the Labor-Management Relations Act of 1947, known as the Taft-Hartley Act evidencing this reoccurring political phenomenon. This act retracted some of the rights that were implemented during the labor movement. These victual included restricting supervisory employees protection from the NLRA and emphasized the right of employees not to join a labor union. These restrictions of labor rights were in the interest of the Republican Party and were created to reduce the power previous legislation apt(p) labor unions.The successful creation of this statute reinforces the evidence that wealthy Republicans continually attempt to swindle the blue-collar labor class. Their motives are based within selfish financial greed and capitalist economy theory. This congressional act illustrates the phenomenon th at bipartisan control and power is cyclical. The Democrats did regained majority of congress and implemented numerous anti-business and social interest acts in the 1960s. Due to the political cycle, The Republican Party inevitable would gain control of congress once again, but the question was when?During the economic crisis of the seventies, particularly the great recession of 1973-1975 businesses began to understand their role in the worlds economy. America was importing more then it was exporting, which was creating an unacquainted with(predicate) and enormous trade deficit. In 1971, for the first time since the 1890s, the U. S. imported more then it exported, (Cohen and Rogers 36) Increased competition from foreign firms posed a substantial threat to American corporations. The result of this threat forced American corporations to compete with globalization.Corporations could no longer produce simple marketing campaigns to develop soil loyal consumers. Global competition forced these companies to produce the highest quality, lowest price and distribute through efficient channels. The international competition however, operating in countries were labor is cheaper, taxes are lower, there is fewer industry regulations and an absence of unions. In addition to these competitive forces, managers of the corporations must also answer to the wealthy shareholders of the corporation. Many business leaders formed think tanks to devise strategies to compete with this new threat.American business leaders set about developing a political program to shore up profits by slash taxes and business regulation, lowering wages and welfare consumption, and building up American military power abroad, (Piven and Cloward 443). The sources of all of these objectives were rooted within government policies. These policies would inevitable have to change for these goals to be achieved. So, the corporate elite implemented a political strategy that would slowly form over decades to achi eve. Even in modern times the wealthy elitist of society still could influence political matters through the power massive financial resources.During the 1980s business elite continued to align themselves with the Republican Party for it conservative ideals. The methods the wealthy corporation shareholders influence legislation during modern times has extremely advanced. The development of political action committees has encouraged corporations to channel financial contributions into political campaigns. Corporations will develop a PAC, establish a set of issues that it promotes politically. If a politician is campaigning for an election with corresponding views, then it is in the exceed interest of the PAC to contribute to the campaign.More importantly, corporations are to contribute to groups and individuals not without delay affiliated with a candidate, such as the GOP. These groups or individuals can register, persuade voters, endorse a platform, advocate a candidate and oppo se another. The exacting coquette ruled that the First Amendment of the Constitution protected this type of spending as a form of free speech in its 1976 decision, Buckley vs. Valeo. These donations are referred to as soft money because they are not directly link up to a campaign.The absence of regulation on soft money donations results in the option for corporations to contribute millions of dollars to further their political interest. This advantage has a grievous effect in the corporate political strategy. Corporations can simply dispense politics as a business expense, a budget token like advertising, research and development, or public relations (Clawson, Neustadl, and Weller 109). Through the strategy of the use of campaign contributing soft money, corporations have immensely increased their influence on political issues.This new corporate political influence has succeeded in their campaign to minimize threats to profitability. These threats were reduced most celebrated during the Reagan years when the Republican Party dominated the government. The administration has made meaning(a) cuts in social spending, particularly in low income programs, and made manifest its desire for deeper cuts achieved a massive, and massively regressive, revision of the Federal tax formation in 1981 dramatically scaled back the enforcement of regulations that posed any world-shaking limits to business power, (Cohen and Rogers 38).This success demonstrates the influential power that wealth has over the United States government. The government by definition should act in the best interest of the population and not the elite. Instead the influx of soft money continues to be unregulated and as proven by the Supreme Court decisions in 1976. This decision closely resembles how the courts protected the rights of employers in the labor disputes of the 1920s. The reasons why the rich corporations target the government are because the government holds the supreme lawful powe r over the entire population.History has proven to these elitists that with well financed trading operations targeting campaigning officials over time favorable legislation will be passed. The legislation usually reduces some sort of cost or regulation in that firms industry. This increases the profitability of the company, which is directly related to the owners wealth. These incremental increases in profits have lead to more investments to further rear the value of the wealthy. This is apparent by the vast and increasing gap surrounded by the rich and the poor in America.The poor are relatively wanton targets in comparison to the costs of soft money contributions. In America, it is very difficult for the poor to change their financial status. So, once a somebody is poor they are generally poor for the rest of their lives. They will continue to spend their lives spending the little money on the products these corporations provide. In short, the corporations are developing an en larging consumer base that is dependent upon their products. The middle class is slowly go away because of the loss of blue-collar jobs.The loss of blue-collar jobs is a symptom of the increasing presence of globalization. Globalization has privileged companies to outsource their production needs to other countries with lower regulation and labor costs. This resembles much of the labor practices of companies in the 1920s were the labor rights were essentially ignored. Another easy solution to minimize the firms operating costs is by eliminating valuable jobs.These sometimes massive downsizing fulfill the wealthy stockholders because the firm had lower production costs and higher profitability. Investors often applaud the news of a layoff as a sign of corporate turn-around. The payroll is a large, ongoing liability to the balance sheet, and investors are titillate by anything that reduces it, (Downs 14). History repeats itself as we see that wealthy investors and managers again g ive birth in manners regardless of peoples needs. The forces unleashed by corporate executions and globalization have brought into the labor market thousands of unskilled job seekers with little or no income.A new underclass has of previously employed individuals has become a nationwide trend in our social and economic condition. These people are forced to take jobs within the service sphere of influence and these jobs typical pay wages that are lower then those of manufacturing jobs. These trends have formed a synergetic effect on the growing wealth gap between the rich and the poor. In todays modern economy companies do not have to worry about the United States government regulating the labor industries in other countries because of jurisdiction.The use of soft money in the United States government has proven that even at home corporations can freely advocate legislation that is favorable to their terms. This has had a profound effect on the income gap in American society. The we althy possess financial resources that provide enormous opportunities to create more wealth. This need for excessive wealth is deeply rooted into the personalities of these individuals. In America, society considers the pursuit of wealth has a fundamental right of capitalism. The ethical boundary was cut through by the use of financial resources to victimi