The big fish swallow the smaller fish / by kevin murray

There are plenty of things that the governance of America could or should do, to help as well as to encourage smaller business enterprises in their activities, sales, and development; of which, the very first thing would simply be the conscious recognition that a smaller size as well as a more diverse base of business enterprises would be beneficial for the country, and its people at large.  That is to say, mega-corporations, that have sales of billions upon billions of dollars, don't really need any further assistance or aid by this government; yet, it is these same behemoth corporations that consistently get favorable treatment by the United States government, in just about every pertinent area of interest, all for the expressed benefit of these mega-corporations; so done, often at the expense of other smaller and innovative corporations, that do not themselves have comparable valuable connections, political capital, or favoritism, to draw upon.

 

In truth, just about any business enterprise, of any notable size, desires to or has a need to increase their sales and profits, each and every year.  The pressure, then, especially for public corporations, to conform to what is so expected of them, is absolutely immense; and because of that, these corporations are going to be prone in taking those actions that will, in a lot of cases, help them to “game” the system, so that they can continue to be successful.  This thus signifies, that many big corporations are going to try to get passed all the legislation that they can get passed, that favors them, and to a lesser extent, that hinders their rivals.  Additionally, for those corporations, that are susceptible to losing their market share, via competition and other fair means, they are going to be inclined to try to negate their competitors, through whatever means that they feel is most appropriate, including but not limited to, buying out the competitor, or by influencing legislatures to change the rules of the road to hinder their competitor, or lawsuits, or by undercutting their competitors for a period of time that will thereby serve to hurt or damage that competitor's business model.

 

What we so find, in a meaningful amount of cases, is that the bigger corporations are the corporations that will also typically have the better profit and gross margins, overall; so accomplished, by virtue of those corporate entities being relentless in their pursuit of profit, by all such means available to them; of which, they typically have considerably more options that they can avail themselves of, which smaller companies are usually precluded from.  This basically signifies that without a strong labor union component within the biggest corporations of America, then it thus follows that an ever-bigger percentage of corporate profits will go to those that are its executives, its stockholders, as well as its well-placed employees within those mega-corporation, and hence an ever-greater increase of inequality in income and wealth, will occur, between those few that benefit, to the detriment of the many.

 

It needs to be taken into consideration, that the primary reason for corporate entities to exist in the first place, is to make money for those that are its owners or its actuators.  This so means that corporations are forever looking for the best value for their investment, and when they so see innovative companies, or new business enterprises which are successful or well setup for future success, the very big fish are going to want to swallow the smaller fish, of which, this government, seems to consistently favor those same big fish.