Question:
Do we need to start chopping away at large corporations to make room for small business?
2009-03-14 12:15:13 UTC
There is definitely a problem in the USA... Our mega-conglomerate corporations are becoming terribly slow, terribly expensive and resorting to constant begging in congress for "bail-outs" and "tax breaks" in spite of record sales (in some cases).

Here in my city, there are no personal courier services left and business people must stand in long lines at FedEx-Kinko's.
There are no genuine farmer's markets and everyone buys rancid food at Wal-Mart superstores (or pays 3 times the price to shop at Whole Foods).
There are no independently owned bookstores (except the very biased selections in some mega-churches) and everyone is slapped in the face at Border's and Barnes & Noble by the latest tripe from Ann Coulter or Al Franken.
The Pizza Chains have barred their delivery drivers from going to neighborhoods "in economically depressed areas for insurance reasons".
Every time a family-owned restaurant closes its doors, an unhealthy fast food joint pops up in its place.
Furthermore, you must depend on Home Depot to remodel your house (so it ends up looking the same crappy way that everyone elses looks) And I've heard that you can't even find a good independent contractor to install a kitchen sink because there's so much red tape and fines involved.

What should be done about these corporate giants that are slowly degrading our quality of life?
Seventeen answers:
correrafan
2009-03-14 12:47:52 UTC
There is a concept in economics called "socializing the risk", which describes how really big businesses can lose money in some areas of the country and make it up in more affluent areas. Mom & Pop stores can't do that. They have all their eggs in one basket.



That's why corporations hate "socialization" in this manner. It tends to even out the field, like fast food businesses. They would all be for it, if they were the only ones doing it. It's all about capturing market share, and maximizing profits, and executives don't see the connection to a long-range debasement in the quality of life in America. The more near-sighted they are, the higher their bonuses get, even at the cost of their own health and the health of their families



Businesses wouldn't need so much regulation if they weren't out to cheat everyone who walks through their doors every day.
volleyballchick (cowards block)
2009-03-14 12:29:21 UTC
I look at this economic challenge that we are currently in the economy's "natural population control". In nature, when an animal becomes overpopulated, there becomes the issue of disease and starvation, that thins out the population, thus allowing those that survive to thrive and prosper again. That is what is happening in business right now. Some giants are going to fall, and some small businesses are also going to go. But in the end, the strong will survive, and they will thrive, and some small businesses will actually grow and become stronger because of this, and in a few years, they will be the "giants" that everyone thinks of right now.



As for the "big box" taking over and the "mom and pop" going by the wayside: We have no one to blame for that but ourselves. Customers wanted the bigger and better, but didn't want to pay the price. Too many want granite counter tops, but don't want to pay the price of them. And the only way to be able to offer a better price for something is to be able to purchase in bulk. That is something that the large retailers can do - the small independent contractors can't do that in order to compete.



Customers are learning that price is not everything, and that quality is worth the price in the end. But we brought on all of that - the Wal Marts that are around are here because people wanted stuff for less. Wal Mart can do that because it buys in such bulk, and the savings gets passed onto the customer. It is the nature of the beast.
Me, Too
2009-03-14 15:11:35 UTC
The pity of it is that most of this merchandise isn't even made in this country, but is brought in on a nine-storey ship that docks three times a week in New York, unloads its Walmart/K-Mart/Every Store crap and sails away to reload.



The food served in the restaurants hails from South American countries and other lands where low-paid workers have no toilet facilities or health standards. When we do have a factory packaging this food, it is like the peanut factory where it is said that roaches were ground up with the peanuts to sell to the public. Then, too, our meat and eggs come from huge conglomerates that empty their waste into pools that are lined with cracked cement and that spill over into the nearby water supply.



Small business or large, there has simply got to be more inspections of the conditions where our food is produced. As it is, several people have to die or be sickened before an investigation begins. As for Chinese products, if they send us one more poison-laced product, we should scuttle that boat for good.
Smooch The Pooch
2009-03-14 12:26:30 UTC
Take some of the red tape off of the small business owners who have a chance at survival...just like you said. And I also no longer shop at Wal-Mart. Many reasons....worked at the home office for some time and was an electronics vendor after that. I know how it works on the inside, store and office, so I don't have any reason to want to support them. (I was a Buyers Asst. when at the home office....brutal) The larger businesses they claim "can't fail" need to fail. Look at the credit card companies and banks...Bank of America's answer to the problem? Get taxpayer money and then raise the interest to almost 30%. They are ripping us. Having a Bank of America card, and currently paying on a balance, it irritates me. I don't put that much on the card and only when another source is not available for something necessary. (medical, etc. not shoes!) So, not only do these bastards get tax money from you and I, if you have an account, you now have to pick up the slack for their horrible decisions. Double dipping in the worst way!!
2009-03-14 12:46:56 UTC
What is one of the major causes of our recession is starting from the Clinton administration, Banks were allowed to merge to the size of "we can't let it fail". The choices we have with the bank is to nationalize ir break it up. I say we break them up. I look back in history, adn got a feeling that there were far mroe rich African Americans in the 50's then now. I asked around, and found that the African Americans were better off because there were a lot more black own businesses. Before the civil rights movement, African Americans can only buy certain goods from Black businesses , so an African American middle class was formed. When they were forced to compete with white business, they fell to the larger business. Then in the 80's big box stores killed the rest. Back in teh old days, minorites could not suceed because of racism. They had to worry about the glass ceiling. One of the ways around it, was for them to start there own business. Granted, times are better, I still see that glass ceiling, and destroying the small business, reduces the opportunites for minorities. When I look at how businesses are run, big businesses want huge regulations, so small businesses can't form and grow. Businesses don't want competition, and definetely one that might replace them. Big businesses ask politicians to put in regs, because the small businesses lack the resources to follow them. To horrible thing is that Big business often don't follow these rules, but get lawyers to skirt around them. What is causing this problem is that "liberal" politicians are in league with these businesses. They make lawas that sound good to the public, but is in reality good for big businesses. When I work for the Government, I seen so much waste. Politicians would make laws that people would back, like free vaccines for the poor, but the majority is dumped in the trash. This is becaues the vaccine is not for the poor, but to give money to the pharmaceuticals that backs them. Liberal politicans, want the most for the poor, so what they do is put pressure on industries to be more efficient to provide cheap product to the masses. Small businesses can't be efficient, so large companies start growing and absorbing others. The problem is that being more efficient means cutting jobs and that means the public gets paid less. Also Money ends up concentrated to the few. Instead of having 100 millionaires because there are 100 small businesses, there are 5 billionaires because there are two large corporations. The irony, is that during the Presidency, of Clinton, there was a greater consolidation of corporation that leads to a greater consolidation of wealth. The seperation between the rich and poor accelerated during theCLinton administration.



Edit: TO NSA, I live in Los Angeles, we can't just put in a sink. We need permits, and I've been in the lines to get them. Contractors don't even like going through the red tapes, and When I talk to them, some contractors won't do L.A., unless we get the permits for them. They rather just work in the suburbs to avoid the hassle. L.A. is messed up and even minor stuff sometimes require a contractor to do.



edit: Boss H. Look at history. We are returning to the problems from the turn of the century. Read Jungle book, by Lewis Sinclair and learn how oligopolies abused the people. We are talking about long term health. Go to a deep recession and come back stronger, not put life support on a dieing man.



to Volleyball: I agree. The term survival of the fittist, is not coined by Darwin, but Spencer, and English economist. The term originally was used for businesses. Our government is feeding dinosaurs with this bailout.
NSA
2009-03-14 12:22:48 UTC
No.



There is no need to do anything to the mega corps.



Simply do not bail them out when they fail under their own weight.



"Furthermore, you must depend on Home Depot to remodel your house (so it ends up looking the same crappy way that everyone elses looks) And I've heard that you can't even find a good independent contractor to install a kitchen sink because there's so much red tape and fines involved" No you don't. Use your own imagination. And as for the sink, do it yourself.
razor
2009-03-14 12:37:31 UTC
Unfortunately, America is a country of bargain hunters which has caused many to shop only at discount mega stores.

I like to shop at the independent store but find their prices may stir me away too, but I don't shop at the employee abusive Walmart either. Mostly I like to spread my dollars around to a variety of stores.
2009-03-14 12:23:05 UTC
Those who can afford it must let their dollars speak. As the first respondent said, don't shop at those places. There are choices, though they are getting more difficult to find.

Buy locally. Eat locally grown, seasonal food. Live with less so you can afford what you want from places you want to support.
Boss H
2009-03-14 12:36:06 UTC
Not according to Republicans, we just need to let them collapse and drag our economy down with them.

That sure doesn't sound like a very efficient way of allowing a country to operate, especially since it would only lead to monopolization instead of competition.
Adam
2009-03-14 12:21:31 UTC
Do not blame the corporations for the death of small business, blame high taxes that are being put on business owners. Before you become anti-capitalist and see democracy as the devil look into the statistical facts regarding business ownership and taxation/regulation within the United States. It's almost baffling people are able to start business' here anymore.
Pelosi & Lefts Ruined California
2009-03-14 12:21:36 UTC
The only ones getting the bailouts are the UNIONS govt wants to save.

At least those book stores create jobs .

WOW , Im guessing you live in that really messed up state of California.
2009-03-14 12:20:15 UTC
The problem is, the powers-that-be won't allow mis-managed corporate giants fail.
2009-03-14 15:46:01 UTC
The current economic meltdown is indisputable proof that Big Business has gotten too big.



When a business is "too big to fail" that's too big. Duh squared.



Now, whether we have LEARNED anything, and whether or not we do anything about it is another issue.
robot_hooker5
2009-03-14 12:23:05 UTC
All of those corporate giants were once Ma and Pa businesses, so really, you're just against the concept of success.
2009-03-14 12:20:03 UTC
Boycott Wal-mart.. Cook your own meals.... grow a garden....shop local stores
2009-03-14 12:23:16 UTC
Yes.
jkherberger
2009-03-14 12:20:30 UTC
Isn't capitalism great, I'll bet if you had just ONE good idea and it made money you would think differently. Businesses are not welfare, it is there to make money.


This content was originally posted on Y! Answers, a Q&A website that shut down in 2021.
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