Corporations Should Pay a Living Wage or Face the Death Penalty…


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From THOM HARTMANN
Alternet

Doing business is a privilege, not a right. Let’s take our power back.

If businesses can’t pay a living wage, they should get the corporate death penalty.

Doing business in America – and pretty much every other developed country in the world – is a privilege, not a right.

In order to do business, you, or you and a group of participants, must petition a Secretary of State for a business license.

If your petition is granted, you will be given to set of privileges ranging from the ability to deduct from your income taxes the costs of your meals (if you discuss business), to a whole variety of special tax breaks, incentives, and immunities from prosecution for things that, had you done them as an individual, you might otherwise go to prison for.

When we set up this country more than 200 years ago, we established some of these privileges, and associated with them some pretty heavy responsibilities.

Up until the 1890s, a corporation couldn’t last more than 40 years in any state – which prevented them from being used as a tool to accumulate massive and multigenerational wealth. A corporation had to behave in the public interest, and when they weren’t, thousands of them every year were given the corporate death penalty, their assets dissolved and their stockholders losing everything (but nothing more than) they had invested.

Over the years, as the Supreme Court has given more and more power to wealthy individuals and corporations, these responsibilities receded so far into the background that in one state, Delaware, your articles of incorporation can be a single sentence stating that you intend to “Do whatever is legal in the state of Delaware.” Which is probably why more than half of all the companies listed on the New York Stock Exchange are Delaware corporations.

The reason we originally allowed businesses to do business in this country was that some benefit would come to society from it. But since the era of New Deal economics was replaced by Reaganomics, the principal rationalization we use to give limitations of liability and privileges to corporations and their masters has changed from, “What is best for society?” to, “How can somebody best get rich quick?”

This is a perversion of the entire concept of why nations allowed people and corporations to do business, and why we facilitate that activity by providing at public expense: stable currencies and a stable banking system; predictable and fair court systems; transportation, electrical, water, septic, and communications infrastructure; a criminal justice system to enforce the rules of the game of business; and a workforce educated at the public expense and protected with a public pension called Social Security. We do all these things so the business will provide some good to the public while, in the meantime, enriching its owners.

But a new business model has emerged in the United States. Companies still get the privileges, but they no longer have to conduct themselves in ways that inure a net positive to the public.

Companies are now free to demand not just huge welfare payments, tax breaks, and subsidies, but can actually play one state off against another in a competition for which state this most willing to transfer the most dollars from the taxpaying individual people to the corporations and their billionaire CEOs. Similarly, corporations routinely use “Right To Work For Less” laws empowered by the Taft-Hartley Act to pit workers in high-wage states against workers in low-wage states, producing a national race to the bottom.

Boeing, for example, is participating in both of these practices right now, having just taken billions from Washington State and now playing their workers against desperate workers in old Confederate states. Senator Bernie Sanders has recommended that when States participate in letting corporations play states off against each other, both states should lose federal highway funds.

That, or any other remedy, is pretty unlikely as America continues to race from being one of the world’s wealthiest nations pre-Reagan, to a post-Reagan dystopia; the first modern, fully developed, industrialized nation to actually de-industrialize and move in the direction from First World status toward Third World status as a result of 32 years of Reaganomics.

Finally, a particularly pernicious form of this new business model has emerged, in part out of the radical restructuring of welfare systems in the 1990s led by Newt Gingrich and Bill Clinton.

Because welfare reform in the 1990s tide the ability to receive welfare to having to work,  low-wage employers discovered that as long as they kept their employees’ pay below the poverty level, you and I, through our tax dollars, would pick up the rest of their employees cost-of-living through food stamps, Medicare, etc. The result is higher taxes for us, and billions in additional money for the CEOs and stockholders of America’s largest companies.

This is not how business should be done in America. If a company refuses to pay – or, their business model is so bad, that they can’t pay – at least a living wage, they should not receive the privilege of doing business in this country.
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6 Comments

It is hard, but I try to not conflate legitimate business activities with criminal activity. All the usual methods of criminal activity, extortion, blackmail, theft, murder, etc. have been normalized as “business.” Sorry Thom, I can not discuss business and organized criminal activity in the same breath. To a first approximation, all sufficiently large business enterprises in the US are just a face of organized criminal activity. In a failed state this is the situation. No law, just priviledge enforced by violence. We have no basis in fact to discuss US financial and business activity as anything other than institutionalized crime. Let’s try to change the discussion to how to confront the criminals who rule us in this pirate kingdom. I can readily understand people’s reluctance to confront people whose ultimate “business model” is to murder anyone in their way. What I can not understand is the make believe discussions about “reforming” a criminal class that has never been more powerful and threatening. Makes no sense to me at all.

ybera

Yada, yada, yada. Hartman makes a few worthy observations, but all the “if only”s and “should”s flying around these days are destined to stay in the theoretical realm, as a severely aggravated Mother Nature winds up to wack us all in the head with a 2×4. If anyone is left standing when the dust settles, I doubt reconstituting the corporate model will be a high priority.

    Words can be such a trap. As we focus on words like “corporate” and “democracy” we risk missing the main point. We live in a slave based society as much as any Roman or Greek did thousands of years ago. Now we have altered the slave economy away from chattel slavery to the more lucrative approach of renting slaves for below subsistence “wages.” When your rights disappear in the workplace, you are a slave. When the bulk of the value of your work is retained by the “employer,” leaving a subsistence (or less) wage, AND there is no practical alternative but to work for a different master at even less attractive compensation, that is slavery. In the classical age it was common for folks to sell themselves into slavery in a pinch. In this technologically sophisticated slave market, one is forced to borrow at usurious rates to meet basic needs. This is also a classic method of controlling slaves. “One more ton and what do I get? Another day older and deeper in debt, St. Peter don’t you call, I owe my soul to the company store.” With the current degree of domination by only a few large corporations there is no alternative but to tow the line as a free person in name only, since everywhere one goes the same system of wage slavery and debt peonage exists and excludes honest business and legitimate commerce. Without our debt burden, without the monopolistic control of media and markets, we might dream of being a free people, but we dare not give voice to our dreams lest we be identified as a “terrorist” and a potential target for corrupt police activity.

    Those who make peaceful revolution impossible, make violent revolution inevitable.” John F. Kennedy 35th (and last legitimate) president of the US.

    ybera

Hartmann does not detail what Corporate Death Penalty would entail but I can imagine:

How about a flock of recently Law School Graduates with beaks like Ravens slowly and methodically picking apart the corporate sinews of the corporation, as it dies from paying its own legal fees?

mendolocal the realist December 4, 2013 at 10:04 am

Huh, So suppose McDonalds boosts all their employees wages up to 30K.year. What do you think would happen to the pricing structure of their menu?

Avg. McDonalds has 50 employees taked 50 x lets say 15k in elevated wages that is $75k in additional wages to be paid and that does NOT include employer contributions.Do lets say $90K in additional wages

Now say this Mcd’s is a 2M dollar store annualy that is a 5% increase in expenses. Where do you think that 5% is going to come from? That’s right, mostly low income wage earners such as those from McDonalds. So, in essence, these employees will be paying for their own wage increase thru increased prices at every entry level business they shop at.

McDonalds is and never will be intended to be a career. They are a stepping stone and can teach good work ethics and values that would enhance their value at their next job.
Trying to make them a career is small minded and not sustainable thinking

    I agree, the muck of institutional insanity is so deep, so perversely incentivized, that it is like quicksand slowly consuming society who’s every move to improve causes it to sink yet deeper into immobility. And thus has it always been so. Vitality in society is directly related to equality. Competitive forces result in a relentless concentration of wealth which becomes immobilized in treasure troves and conspicuous consumption causing a drying up of the body of society, blood ceases to flow and death ensues. Can’t wait.

    y

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