Privileged Position of Business Essay Example

financial support. This financial support allows businesses to have access to politicians, which is known as corporate welfare and can result in benefits that are against the interests of American taxpayers.

In terms of benefits for businesses, there are various forms of compensation including favorable rates on goods and commodities, tariff protections, emergency funding such as bank bailouts and automotive industry crisis assistance, tax breaks and incentives, guaranteed investments, and relaxed safety standards. Additionally, businesses that provide financial contributions can anticipate their concerns being addressed by the elected officials they have supported. According to Hudson, business entities constitute a larger portion of lobby groups and contribute the majority of campaign contributions.

The high cost of a political campaign necessitates significant donations from politicians to enhance their likelihood of success, and businesses reciprocally provide financial support to further their own objectives. Large corporations exert control over the information accessible to ordinary citizens by virtue of owning media outlets. For example, NBC is owned by General Electric, and Fox News by Rupert Murdoch. Any news article contradicting the owners' agendas is manipulated with a biased perspective. Hudson refers to this phenomenon as the second face: the power that we inadvertently grant businesses in shaping policies.

Business decisions can have a flexible impact on the economy, which includes disinvestment, downsizing, relocation, or reducing production, which often leads to negative consequences. Lindblom suggests that politicians are concerned about a weak economy because it can have a negative influence on voters, and they must act promptly. He argues that entrusting important societal decisions solely to the market results in dividing authority for significant social matters between two

groups of rulers. He further contends that in any capitalist market system, government officials and businessmen hold power.

Lindblom argues that the government's relationships with businesses are fair, implying that corporations receive preferential treatment in decision-making. Although it is typical for the government to make choices that favor large corporations, politicians claim these decisions are meant to stimulate economic growth. Nevertheless, I remain skeptical. In this chapter, Hudson explores the risks of business privilege to democracy and lists four ways in which it jeopardizes it.

The text emphasizes several issues. Firstly, it suggests that there is unequal representation of the full range of political interests in society. Secondly, it argues that business power significantly limits the discussion and consideration of policy alternatives during public policy formation. Thirdly, it posits that business power obstructs the development of an effective citizenry. Lastly, it asserts that business privilege results in the implementation of policies that disregard the needs and interests of most Americans. When revisiting this chapter, Hudson effectively presents a compelling argument for how big businesses are favored within society, similar to a favorite child in a large family.

The financial crisis experienced by Wall Street bankers and investment companies is a prime demonstration of privilege. They requested government aid to rescue them and then proceeded to reward themselves with bonuses. Only those who are privileged would believe they were entitled to bonuses during such a crisis. According to the NY Times, the government granted a $700 billion bailout to financial institutions and the auto industry as part of the TARP bill.

The NY Times reported that Goldman Sachs and Morgan Stanley both

gave substantial bonuses to their traders, bankers, and associates. Despite suffering significant losses, nine major bailout recipients still awarded billions of dollars in bonuses. Mark Leibovich of the NY Times also uncovered preferential treatment given to four members of the House during the investigation into Countrywide Financial's financial crisis and collapse.

The housing market has caused significant losses for homeowners due to banks granting mortgages to individuals who couldn't afford them. Despite the market being at a peak, it lacks a solid foundation capable of withstanding financial crises, resembling a fragile house of cards. Consequently, many people lost their jobs and experienced foreclosure on their homes. In 2010, it was uncovered that banks were unlawfully evicting individuals through the use of inaccurate or incomplete paperwork. This investigation conducted by all 50 state attorneys general regarding mortgage servicing has resulted in an agreement. According to Schwartz and Dewan from the NY Times, this housing market collapse is the largest since the Great Depression.

Since the beginning of 2007, foreclosure has led to the loss of homes for four million Americans. Every city in the country now has abandoned homes. The validity of Hudson's assertion that big business should distance itself from government is evident in this situation. According to the Constitution, "We the People of the United States" refers to individuals and not businesses. Politicians must cease granting excessive privileges to businesses and instead prioritize meeting the needs of American citizens. Decisions should be guided by what would benefit the entire nation of the United States.