Economic Ills Dugger Analysis

Good Essays
Over time we have become so comfortable with blaming others for our own down fall. In economics the government is being blamed for the way the economy according to William m Dugger we as democratic people are blaming the wrong people (the government) for “economic ills”. In his article Dugger argues that we are only shooting our self in the foot because by attacking the government we are hurting our self because the government has been nothing but efficient and very effective to us in terms of the economy. He argues that the people that are to blame are the people dominating the economy and the people dominating the economy isn’t the government but rather huge corporations. Dugger states that he believes that corporations are to blame for …show more content…
This trouble was caused because they decided to incorporate both ABC and XYZ. Their main reason for this was because they were receiving a surplus valuation of $3,000. with this they could acquire more which in return help increase their surplus. in 1960 investors had lost faith in conglomerates which resulted in conglomerate to end for a while. But by the time that they ended their ideas had spread causing it to survive. According to Dugger the famous Boston Consulting Group had helped in making Conglomerate more stable which in the end they ended up in using one of conglomerate characterizes of working in different market. What this means is that they could punish their competitors and control the market. Dugger states “An enterprise that operates in several markets can cut its price in one market to discipline a competitor and then easily recoup its losses in its other markets” (Dugger, 1985) this meant that these corporations operate in different market which in a way gives them power to control not just their markets but also their competitors. They had created a long-term planning called Product portfolio management where their main goal was “the objective is to maximize the conglomerates long run growth, without using outside financing, by appropriately managing the conglomerate's subsidiaries, each of which sell a different product or set of …show more content…
We the people had slowly handed over the economic power to corporations without even knowing. Through these changes we had missed the fact that in 1965 50 percent of these U.S corporation had assets that were about $250 million and by 1980 it had gone up to 70 percent. This is something very alarming which people or even the government should have been able to dictate. William Dugger argues that we as American have allowed our self to fall into a new era that do not want to be in without even noting it which I agree with. In a way I could agree with William Dugger that we should blame the government but blame the corruptions for our bad economy but after analyzing Duggers article I would say that the government in a way is to blame but its not their fault that the economy is bad today but I would say that they are at fault for letting these conglomerate corporations to have so much power that they were able to create their own culture and were able to create their own capital market. According to William Dugger we must be able to point out these issues before they get out of hand because now the powers that these corporations have are not even seen as power but rather we see this new power that they have used to usher us into a new era and now we and especially they youth are seeing this new era as something good, Dugger states “We have allowed a Frankenstein monster to be put together and made

Related Documents

  • Decent Essays

    Federal taxes or also known as the sixteenth amendment should be repealed because it interferes with people 's money and financial income to much. The 16th amendment has stirred up a lot of controversy in the country and taxes is one of the hot topics both destabilizing and developing the American economy; Taxes ties into politics in and of itself, taxes is a destructive and or developing moral within the people today and is sometimes not even used for its original purpose or intent, which is to support America 's economy and build its reputation. Some actions reveal the abuses of government. The 16th amendment is used to suck dry the American people of their financial state so that the governing system can benefit. The American people in and of itself is a system of different subjects focused on the same goal.…

    • 1100 Words
    • 5 Pages
    Decent Essays
  • Decent Essays

    Corruption And Poverty

    • 807 Words
    • 4 Pages

    The last article discussed in this paper, Dr. Johann Graf Lambsdorff discusses how corruption affects public welfare saying, “industrialists and businessmen are tempted to go in for shady deals instead of steady regular business” (Lambsdorff 4). This unethical acquisition of wealth reduces the businessmen’s incentive to be productive or if they are in a power position at a company, reduces the likelihood they will devote a large interest in the improvement of the workforce, promoting low, stagnant…

    • 807 Words
    • 4 Pages
    Decent Essays
  • Decent Essays

    He wanted less government involved in businesses, so he decided to bring back competition and have an antitrust to separate the big businesses into smaller less powerful ones. Wilson thought that the tariff was too high and that it was corrupting Americans of their pay and their working conditions so he wanted to lower the tariff and bring competition back to fix low wages and working conditions. Wilson also felt like America was stuck in a cycle when it came to government. He wanted people to vote for who they wanted not for a political party. To…

    • 1770 Words
    • 8 Pages
    Decent Essays
  • Decent Essays

    I feel like this movie is showing us as a human being that how injustice our system is. All these people in the third world countries don 't deserve a life like this, and it’s not their fault that they live in poverty. If I were to blame anyone, I would probably the system and the United Nations since they still haven’t erased poverty yet. With all the wealth that rich people have, we can get rid of poverty instant, but we don’t decide to do that because of our greed which drives our hunger for money. The big large corporation is the mastermind behind poverty in the 21st century and I believe if you can find a way to persuade this large corporation maybe we can easily get rid of poverty.…

    • 1078 Words
    • 4 Pages
    Decent Essays
  • Decent Essays

    Why Nations Fail Analysis

    • 843 Words
    • 4 Pages

    It was “one of the countries that made the switch from economic policies that caused poverty and starvation of millions to those encouraging economic growth” (Acemoglu & Robinson 67). These institutional setbacks lead detrimental for China, but the nation could rebound with a political revolution and economic reforms. These ultimately created incentives for laborers to work under and formed the first steps in eliminating communism. As the authors stress it was “politics” that determined this change, “not better advice or better understanding of how the economy worked” (Acemoglu & Robinson 68). It is important to understand that many of these institutional failures result from politics, which has much greater significance in explaining world inequality than geographical and cultural disparities, or even the ignorance of rulers.…

    • 843 Words
    • 4 Pages
    Decent Essays
  • Decent Essays

    Foner Labour Movement

    • 1074 Words
    • 5 Pages

    The sources argues that a more left government will tax producers for the benefit of their possibly unemployed citizens. Benefiting citizens comes from “subsidizing” or funding in the form of government welfare programs. The source also heavily criticizes this system as they describe that members of this ideology believe that production occurs by “magic”. Capitalists would agree with this source’s perspective, specifically because it aligns with their beliefs in government economic involvement being detrimental to the overall economic health. To defend their beliefs, an individual could point to the downfall of the welfare state during the 1970s.…

    • 1074 Words
    • 5 Pages
    Decent Essays
  • Decent Essays

    By engaging in misleading CSR practices, companies can obviate the need for government regulation. Several corporations tend to engage in unethical behavior such as child labor, polluting the environment, or exploiting third world countries. Because of the increasing amount of socially aware consumers, companies can no longer partake in such nefarious activity. A variety of corporations would rather continue the dirty work they are doing because it is cheaper and more beneficial for their self-interest. In order to keep doing whatever they already do, companies use corporate social responsibility as a marketing strategy to fool the government.…

    • 1503 Words
    • 7 Pages
    Decent Essays
  • Decent Essays

    What Is AIG Ethical?

    • 816 Words
    • 4 Pages

    AIG abused the trust of its investors, stakeholders, and employees making it the biggest scandal ever because it had to be saved by the government or it would have caused an economic depression. The website says, “At the heart of everything we do is an unshakable commitment to honesty, fairness, and respect (AIG, 2014).” The action of the company has spoken louder than these empty…

    • 816 Words
    • 4 Pages
    Decent Essays
  • Decent Essays

    They abused the system to the point where the government had to step in; creating the FDA, Unions, and other countless restrictions. Restrictions that are still upheld today, but there is a fine line, and corporations are pushing the barriers. As a Capitalist state the populous are not seen as people; to the corporations, we are seen as dollar signs. Karl Marx, a visionary, a man who lived in a…

    • 773 Words
    • 4 Pages
    Decent Essays
  • Decent Essays

    Friedman and Social Responsibility of Business Introduction Milton Friedman believed and argued that business people take care of the responsibilities that affect them in their day to day life. However, they don't care the impact their businesses have on the society so long as their market is growing and increasing their profits. The main reason why he argued this is because believing in a reduced impact that the government has and a free-market. He found that government solutions to problems are no better because its solutions are even worse than the problem itself. As a result of his belief, he believed that the government should keep off the businesses activities because of its greed and the quest of people to have access to power.…

    • 1164 Words
    • 5 Pages
    Decent Essays