Thursday, 23 October 2014

Corporate power and the new economy

Corporate power , as we have seen in recent years , unbridled and all powerful  with the freedom to do as they wish will have to stop.

 As we see Tesco falling from the giddy heights a few months ago and now falling headlong into an abyss which may kill it off altogether. This capitalist method of rise and fall , does only a few real favours  but but enhances mans greed for ever more power and supposed wealth.

As with the Banks are they to big to fail, what about petrol supplies, food distribution and pharmacies that so many now have become reliant on. Will the remaining retailers cope if they were to foreclose tomorrow? With something like a 20% market share , and in some localities it could be as high as 50%. what is the real fallout, Higher prices,higher taxes to pay for more redundancies and higher welfare payments , high stress levels for everyone from suppliers ,employees and customers alike, making even more work for the NHS and services that help in these situations.

All corporations should have a maximum size that they are able to become with only few exemptions when the State can become a share holder as could be the case for Energy, Utilities, Pharma and Food production and allied industries that are strategic to the national well being of the nation. This size should be determined by how much of the national market they take in their sphere of activity. This lies around the 10-20% share as has been discussed by various economists, but once struck should be strictly adhered too.
This would then enable smaller and more nimble businesses to be able to enter the field and move technology and ideas forward at a faster and more economic rate than in the past.

Large corporate entities are in themselves slow and not very nimble as we are seeing in the race to a vaccine for EBOLA, Will it be GSK or a smaller company that makes the real breakthrough, It will hover be the big boys muscle that will be the winners in the end as they will swallow any small players in one bite , and become even more bigger and powerful.

Lets hope that Ebola does not infect GSK in the process and put us all back decades in lost hopes for the future long term health of the planet!

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