Small Businesses An Essential Part of a Proper Democracy Essay Example

the 21st century has been greatly facilitated by various technological advancements, including the internet. This has transformed the world into a global community with fast information flow. However, this progress also presents a daunting aspect as the growth of corporations can pose a threat to society and its well-being due to their net income and power. As a result, small business owners are currently facing challenging situations because corporate taxes, limitations, and established powers prove burdensome for their healthy existence.

Recent government policies and laws in the United States are endangering the country's economic freedoms. These measures have created an unsettling environment for small and mid-sized businesses, thereby scrutinizing the free market economy. Large corporations possess advantages in terms of profit growth, as they enjoy lower rates due to ordering in bulk. Nonetheless, intense competition may hinder individuals from realistically operating small businesses and establishing their own customer base. This situation could potentially result in a majority of the population being engaged in low-level service occupations.

In the US business environment, there are numerous competitive rivalries that can be likened to AT vs Verizon, Pepsi vs Coca-Cola, Microsoft vs Apple, Chevron vs Exxon Mobil, and Nike vs Adidas. Furthermore, Wal-Mart faces substantial competition from nearly all other food market shops across the country. Nevertheless, this competitive atmosphere goes against the fundamental principles of democracy. The legal system and constitution greatly influence the US business environment as laws are crucially adhered to and enforced.

Breaking laws can have serious consequences, such as fines, business closures, or imprisonment. In the United States, the US Constitution has provisions that significantly impact the business world and relationships between businesses and the government.

One example of this is Section 8, Clause 1.

The Congress has the authority to impose taxes, duties, tariffs, and excises in order to repay debts and ensure the security of the United States. It is important that these taxes are consistent nationwide. Recently, there has been an increase in sales tax for tobacco and alcohol manufacturers (Cornell 1). Amendment V protects individuals by allowing them to refrain from self-incrimination in criminal cases. It also guarantees due process of law and prevents deprivation of life, liberty, or property without fair compensation. This applies not only to individuals but also to businesses. For instance, if a business building needs to be demolished for a public project, the government must provide compensation by purchasing another building of equal value at the same location and compensating workers for lost work time (Cornell 1). There are other relevant amendments that should be considered within this context.

The Fourth Amendment safeguards individuals, their homes, documents, and belongings from unjust searches and seizures. A warrant can only be granted if there is probable cause supported by an oath or affirmation that specifies the location to be searched and the items or persons to be seized (Cornell 1). However, this amendment can create a significant loophole whereby businesses engaged in unlawful activities may evade punishment due to the challenges associated with obtaining a warrant for further investigation and substantial evidence of wrongdoing. The Commerce Clause, as outlined in Article 1, Section 8, Clause 3 of the U.S. Constitution, grants Congress the authority to regulate commerce involving foreign nations, interstate trade, and dealings with Native American tribes" (Cornell 1). Moreover, decisions made by the Supreme

Court hold considerable influence over businesses operating within the United States.

McCulloch v. Maryland, a landmark Supreme Court ruling, bolstered the authority of the national government in the United States. It emphasized the use of national dominance to achieve this objective and prohibited states from imposing taxes on federal establishments as a direct response to Maryland's endeavor to tax the US Bank (Landmark 1). Another notable case is Kelo v.

The City of New London is a highly controversial case that introduced the concept of corporations seizing private land for the public good (Rutkow 3). However, there is ongoing debate about what truly constitutes "public good." Imagine a scenario where a large store offering affordable goods enters a small town. This store can acquire someone's private land and home as long as they can demonstrate public benefit, typically through increased tax revenues and job creation. Unfortunately, this often leads to the demise of local businesses in the area, causing job losses and forcing individuals to work for the chain. Consequently, people no longer feel secure about their real estate properties. Labor laws have significant implications on businesses, influencing their operations, daily productivity, and expenses.

Federal labor laws establish strict standards to safeguard workers, covering areas such as breaks, benefits, workplace safety, and unemployment insurance. However, the 40-hour workweek is currently being exploited by businesses seeking to bypass these regulations. Many companies, particularly large corporations, create roles based on commission where managers at all levels are subject to this practice. The objective of this approach is to motivate employees by compensating them based on a percentage of sales, thereby compelling them to work whatever hours necessary to meet profit

targets and fulfill company requirements. For instance, an average car salesperson at a dealership often works over 60 hours per week – sometimes even up to 80 hours – without earning any income during those additional hours.

Can corporations realistically limit their employees' work hours to just 40 per week? And how does overtime play into this equation? Corporations distinguish themselves from average business owners by hiring top-tier lawyers, sociologists, and accountants. This enables them not only to stand out but also to exploit laws for their own advantage. The United States Constitution and federal regulations significantly impact various aspects of corporate operations. For instance, immigration laws prohibit the employment of undocumented workers and impose penalties on businesses that engage in such practices. To lower costs, corporations often implement these measures as it is extremely challenging to monitor numerous franchises like McDonald's. Over the past few decades, there has been a noticeable shift in fast food establishments where predominantly Latino crews are now common compared to earlier times when American school children typically filled those positions. Ultimately, corporations prioritize profit above all else and will stop at nothing to increase earnings while reducing expenses.

The Torahs encompass regulations regarding working conditions, work hours, and minimum wage requirements set by the federal government. They also include provisions to ensure the well-being of future generations by imposing age restrictions that safeguard children's development. The objective of these federal laws is to maintain fairness and equilibrium in protecting both businesses and employees (Myers 1). Nevertheless, effectively enforcing these laws presents a formidable challenge.

The United States is confronted with various challenges that need to be addressed. To aid small businesses, the

government is implementing measures such as providing loans at low interest rates and reducing taxes for specific time periods. Nevertheless, small businesses have been greatly affected by the 2008 financial crisis and continue to struggle in their recovery efforts. Despite government initiatives, the establishment of new businesses often encounters obstacles due to consumer distrust.

Due to their poor credit history, the majority population of the state is facing challenges in obtaining loans. Since 2008, both small business owners and individuals aspiring to start their own businesses have been struggling due to the unfavorable economic situation. Small businesses, defined as those with fewer than 20 employees, experience significantly higher annual costs of Federal regulations compared to larger businesses with over 500 employees. Specifically, small businesses spend four and a half times more per employee on environmental regulations and three times more per employee on tax compliance than larger businesses (SBA 1). These statistics demonstrate how Federal regulations impose a disadvantage on small businesses, despite these enterprises often having higher profits and expenses compared to larger corporations.

In 2005, there were a total of 644,122 concerns created and 565,745 closed; this included 39,201 bankruptcies. However, in 2009, the number of concerns created decreased to 552,600 while closures increased to 660,900. Additionally, there were 60,837 cases of insolvency that year. Comparing the two years shows that in 2009 there were over 100,000 fewer concerns created compared to 2005 and over 100,000 more concerns closed. As a result, approximately 250,000 fewer concerns existed in 2009 due to the higher number of closures than new creations. These figures indicate a significant trend.

The government has been ineffective in enhancing the economic environment lately.

To foster a favorable milieu for small business owners in the United States, it is essential to implement positive changes and eliminate certain policies and laws. Federalism holds significant importance in the nation as it was conceived by the Founding Fathers to govern a diverse country with different cultures and beliefs efficiently. Nevertheless, federalism has been waning over the past century due to globalization's influence. The internet and television have bridged gaps among people, resulting in a society that exhibits more resemblances than the 19th century.

This matter is highly ambiguous. While common thoughts and beliefs are important, it is also crucial to maintain the individuality that each location in the United States offers. The sameness in aspects such as housing construction and popular music is becoming more prevalent in modern times. Small businesses exemplify this federalism in today's world with their distinct customer service, products, employees, and policies. Such businesses hold a unique geographical (local) significance.

Local businesses, such as a San Francisco restaurant known for its seafood or a Texas establishment famous for its local beef, embody the values of their communities. They not only benefit owners, employees, and customers but also contribute to American tradition and support the middle class while preserving important values for future generations. In contrast, corporations disregard these principles by relocating factories abroad where workers suffer from inhumane conditions.

The long-term results of this plan were not favorable. From the mid-1940s to the 1990s, manufacturing and exports greatly contributed to the United States' economy. However, at present, imports are high and exports are low. Importantly, in the 1950s, the US provided significant aid for Japan's reconstruction, which led to a highly

industrialized Japanese economy during that time.

The National Debt has reached unprecedented levels today due to the outsourcing of US industrial power by profit-driven companies. This outsourcing has resulted in significantly lower costs for producing goods and has led to a limited number of domestic industries remaining, such as passenger plane production. While the United States values a free market economy, this system has given significant power to the central government and created a misleading perception of limited intervention. As manufacturing shifted to other countries, America's independence was greatly reduced, posing a serious threat not only to future economic prosperity but also national security. Additionally, China benefits from US consumption as a major supplier, leaving the US at a disadvantage in the long run.

Monitoring and commanding activities like this one are more important than enforcing new revenue. Since self-sufficiency is a part of the term freedom, and the government's primary task is to ensure just that, it is baffling how American citizens allowed such a significant element to slip away. The environmental movement, perhaps, but with control and technologies, pollution from factories can be significantly reduced. Consider this: our planet is a unit, its environment is interconnected. Allowing 'others' to pollute the atmosphere and oceans with minimal environmental control and awareness only amplifies environmental pollution.

Additionally, the United States has undergone a transition to an economic system that resembles a collection of services, resulting in the middle class shrinking. This shift has contributed to various concerning statistics: 83% of all U.S. stocks are owned by 1% of the population; 61% of Americans live paycheck to paycheck, a rise from 49% in 2008 and 43% in 2007; the

top 1% of Americans received 66% of income growth between 2001 and 2007; a surprising 43% of Americans have less than $10,000 saved for retirement; only the top 5% of U.S. households have earned enough additional income to match the increase in housing costs since 1975; banks now own a greater share of residential housing value in the United States than all individual Americans combined; the bottom 50% of income earners in the United States collectively own less than 1% of the nation's wealth; federal workers now earn an average of 60% more than private sector employees; and the top 1% of Americans... (the rest of the text is missing)

The ownership of corporate wealth by families in America has doubled in the past 15 years. Currently, over 40% of employed Americans work in low-paying service occupations. Additionally, for the first time in U.S. history, the number of Americans relying on food assistance exceeds 40 million, with projections showing it could reach 43 million by 2011 according to the U.S. Department of Agriculture. American workers now face competition from garment workers in China, who make approximately 86 cents per hour, and those in Cambodia, who make around 22 cents per hour.

(Syder 1) The government and corporate actions have taken a dangerous turn, threatening the middle class, an essential part of any democratic society. This situation poses a significant threat to a genuine and powerful democracy. The gap between the wealthy and the poor is widening rapidly, potentially creating a situation that Americans ancestors fled from centuries ago. As corporations impose numerous disadvantages, people all over the world are impacted, often without realizing the truth.

Most corporations prioritize

increasing net incomes and reducing costs, often disregarding health, safety, environmental, and humane concerns. For example, a yoghurt maker may choose to add artificial color and flavor instead of using real strawberries in order to extend the shelf life of the yoghurt and reduce costs. Although this decision may have negative effects on consumer health, the average consumer may still buy the yoghurt due to its appealing taste and previous reputation. Additionally, genetically modified organisms (GMOs) in food are another significant concern introduced by corporations.

Genetically modified organisms (GMOs) are inexperienced and poorly regulated, yet they make up a majority of the food supply in the United States. There is no evidence to prove the safety of these products, and since companies are not obligated to label them, consumers cannot determine their health effects. As a result, the number of farmers across the states has significantly decreased in recent decades, not by their own choice. Let us recall the "old" Tucker—an automobile designed by Preston Tucker, a prominent entrepreneur from Michigan.

During the 1940s, a male innovator created a car that exceeded all others of its time. While the car itself was not mechanically flawless, this could have been resolved with sufficient funding. However, what truly stood out were Tucker's inventions. Some notable features of the car include a stronger frame for enhanced safety, disc brakes, fuel injection, independent suspension, and seat belts! Tucker's car was by far the safest option during that era, and it took decades for other automakers to adopt the same level of safety. Considering that a seat belt alone can double the chances of survival in a collision, one can only imagine

how many lives could have been saved had seat belts been embraced by the industry at that time.

In order for Tucker to achieve his dream, he required funding. The Securities and Exchange Commission (SEC) was the government agency that could provide him with that necessary funding. Unfortunately, this collaboration ended up having negative consequences and contributed to Tucker's decline. The combination of politicians, corrupt journalists, and influential car companies such as Ford, Chrysler, and General Motors played a part in diminishing Tucker's dream.

The history of America is marked by numerous instances of congresswomen and federal regulatory agencies safeguarding established companies against new competitors. A truly free market embodies fair competition, resulting in lower prices, improved services, and innovation. Had Tucker not been hindered, we might be driving a variety of cars today. Government agencies employ various forms of 'strategic' intervention to control the market, although the interpretation of this term can vary (Rehmke 1). Unfortunately, in many cases, government involvement guided by 'strategic' interests neglects progress, safety, and freedom.

Where did the railway lines go? Efficient, safe, and reliable ways to transport passengers and goods no longer mattered once corporations realized the potential to make billions and gain even greater control. Trains became "old-fashioned" in the United States, while most of the world still relies on railways as a primary form of transportation for goods. Developed countries such as France, Japan, England, Germany, Argentina, and Australia all utilize rail transit. The railway industry in the United States reached its peak in the early 20th century but is now only half its former size. Despite being an important part of transportation, the potential of the railway system

in the United States is yet to be fully realized.

Work Cited

1. "U.S. Constitution | LII / Legal Information Institute." LII | LII / Legal Information Institute. Web. 13 Apr. 2011. hypertext transfer protocol: //topics.law.cornell.edu/constitution/overview
2. "The Role of the United States Constitution in Business, Page 3 of 3." Associated Content from Yahoo! - Associatedcontent.com. Web. 13 Apr. 2011. hypertext transfer protocol: //www.associatedcontent.com/article/937897/the_role_of_the_united_states_constitution_pg3.html? cat=17
3. "Business and the U.S.

Fundamental law. American Business, U.S. Business, United States Business. Web. 13 Apr. 2011.

The website 'american-business.org' has an article called '101 Business and the US Constitution' about the hypertext transfer protocol.
Digital History also has a webpage about the Supreme Court, available at 'www.digitalhistory.uh.edu/supreme_court/supreme_court2.cfm'.
There is a book called KELO V. written by Erik Rutkow.

CITY OF NEW LONDON.
Harvard Law.
Web. 13 Apr. 2011 hypertext transfer protocol: //www.law.harvard.edu/students/orgs/elr/vol30_1/rutkow.pdf

Citizens file a lawsuit after being detained in the workplace by immigration officials. The article can be retrieved from Constitution Center at hypertext transfer protocol: //www.constitutioncenter.org/education/TeachingwithCurrentEvents/ConstitutionNewswire/19198.shtml. Another source for analysis and interpretation of the US Constitution is Justia (2005) in their publication titled "US Constitution Annotated-Analysis and Interpretation of the Constitution."

Retrieved July 3, 2008, from US Supreme Court Center: hypertext transfer protocol: //supreme.justia.com/constitution/

Economy? | SBA.gov. The U.S. Small Business Administration | SBA.gov. Web. 13 Apr. 2011.

hypertext transfer protocol: //www.sba.gov/advocacy/7495/8420.

Shrinking. FinanceYahoo.com. Web. 13 Apr.

2011. hypertext transfer protocol: //finance.yahoo.com/tech-ticker/the-u.s.-middle-class-is-being-wiped-out-here % 27s-the-stats-to-prove-it-520657.html? tickers=^DJI, ^GSPC, SPY, MCD, WMT, XRT, DIA

Web

13 Apr. 2011

hypertext transfer protocol: //www.economicthinking.org/Americanhistory/tucker-greg.html