What Ayn Rand did was illustration of the world without all innovative companies, competition among them and driving force to the economy. As a result, we see that the economic system can not survive without capitalistic relations and government interventions destroys the market economy and creates chaos. The philosophy of the author dictates that self-interest is good and rational selfishness should be practiced in order to survive in the market. In the book she supports this view by showing the effectiveness and prosperity of companies when they thrive to earn more money, create new technologies, for example the company Twentieth Century Motor Company which create engines made the brand new engine but because of the death of CEO and implementing the policy of payment and benefits program company went to
Wal-Mart has faced numerous lawsuits for inequitable labor. The huge market enterprise values its employees with little respect. For example, it demands for long hours and overtime shifts to meet holiday sales. This is one of the reasons why the company has earned an outstanding profit over the decade. Yet, with all the affluence the company has, it still does not compensate for workers' healthcare benefits nor their low wages.
The possible abuses in capitalist market may include business firms and manufacturers using unethical business practices during the production or manufacturing of products. As businesses firms and manufacturers in capitalism are profit-oriented, they tend to ignore the consideration of the potentially consequences of their products to their consumers. Hence, they are more likely to produce products that are in demand, as long as the profit motive is achieved. For instance, the car manufacturers might ignore the importance of installing seat-belts, air-bags and other safety features as these safety devices lowered their revenues. As a result, consumers in capitalist market or the society as a whole would be exposed to products that are unsafe and harmful such as defective goods.
Consumer Protection: Is it ethical for corporations not to perform corporate social responsibility and provide consumers’ with harmful products in order to maximize their profits? Nowadays, the consumer’s world is facing always more greedy companies whose aim is to maximize their profits as much as possible regardless of the tragic consequences their behavior often leads to. Diverse industries, like that of food, clothing, and technology tend to overcome their social and ethical duties in order to satisfy their costumers’ needs and wants with products whose ingredients and components at large, are cheap, but addictive or irreplaceable, so that the buyer is constrained either by neurological stimuli or by necessity to purchase the good again.
Rockefeller’s impact on the United States cause the U.S. government to create new laws and acts to prevent unfair business tactics and promote the idea of capitalism. During Rockefeller’s time in the oil industry he at one point controlled about 90% of U.S. pipelines and refineries. Statistics show that Rockefeller was very successful, however, he was not the most ethical businessman. He created the first monopoly by unethical practices such as colluding with railroads and using predatory pricing to rid himself of competition and take the idea of capitalism away from other aspiring oil businessmen. In Rockefeller’s mind, however, he was not being unfair he; was rather just using effective business techniques.
Counterfeiting is crime so certain actions are needed to control these kinds of activities because if steps are not taken to stop people from doing this crime people may lose the fear of authorities. Counterfeiting is also considered an economic problem because it puts a company at the risk of future investment in research and development due to unfair competition with these counterfeiting products and losses in profits. The problems faced by the brand owners are that they put a lot of effort, time and money in producing a particular product and people easily pick their design and enjoy the benefits. All this decreases the interest of brand owners in producing new
For Stiglitz, “the executives got away with this because of poor corporate governance (pg. 77)”. His solution for this is to reform the system by boosting accountability and limiting incentives to long-term performance rather than the immediate amount of loans created by executives. As stated by Stiglitz, “If firms use “incentive pay” it has to be really incentive pay” (pg. 78).
STATE POWER AND THE STRUCTURE OF INTERNATIONAL TRADE: STEPHEN D KRASNER. Stephen was able to identify that states behaviours are constructed by their interest, this implies that major states should not be praised for the openness of the international trading system they create because it was only a function of their goals and interest (a means to an end), after all they are involved in major productions and these products have to be sold out to the world for economic gains and this is the reason behind the pressure from the individual entrepreneurs in Europe. Looking closely, we will discover that major powers only maintain a structure of free trade only when it works in their favour because they tend to drift towards protectionism when their
By the time, people will getting richer, would have more money to care for their families, and then the term homeless will be avoided. It is known that the largest corporations are leaded by some people who also are part of the government, people who play a significant role in the government decision-making, and my recommendation on this would do not allow the same people who work for government to be bosses of the corporations. Also the State should stop them some privileges that they have with other countries, because those are leading to different disagreements between countries. Trying to stop all these points I mentioned would automatically reduce kills that are happening in order to get the position or the mandate of these powerful
A firm is given the advantage and is allowed to sell possibly inferior goods and services at the expense of both customers and competitors. Bureaucratic delays are another possible outcome. Once the company gets business through illegal means it gets harder to break this habit. Speed money given to officials is likely to create a situation in which they are going to expect bribes from other companies as well and delay actions until they receive it. Bribery can lead to decrease in the productivity at national level which incurs a cost to society as a whole.