CORPORATOCRACIES
Corporatocracy is a system that is indirectly controlled by huge corporations, under the guise of democracy.
Income Inequality is a prime characteristic of a corporatocracy since a relative growth in income had only occurred amongst the elites. There is no actual declared corporatocracies as no one government is going to come forward announcing they’re partially ran by powerful businesses.
In a corporatocracy, businesses can’t decide if which government will come forward as that relies on the public, but they can plan things for the country influenced by corporations. Huge amounts of the GDP are contributed by corporations so elected leaders may feel to bow down to the financial community as they’re upholding the economy & state.
The entire corporation isn’t to be blamed because only a few individuals like the shareholders or directors will have power over the government. The goal of corporations is to establish powerful political + legal connections so that corporations are free to pursue their activities without any fear of the law. This is a mutual relationship for the government + the corporation, but it harms the ‘common man ‘because corporatocracies lead to economic exploitation, unfair lending practices, and dishonest use of national resources. It leads to CEOs becoming excessively paid, corporate taxes planned differently, and free trade agreements becoming signed.
Characteristics of living in a corporatocracy:
- Corporations begin supporting government campaigns, so government reciprocates when the corporations need them.
- Enormous growth in financial & banking sectors of the country
- Corporations having more business; increase in mergers + acquisitions, corporations subject to expansion, leading to increased compensation & global benefit.
- Corporate individuals seem to grow richer & richer whilst smaller businesses remain stagnant which leads to imbalanced economic conditions & inequality. Rich get richer while the ‘common man ‘remains stagnant.
- Mutual sharing of power between gov’t and large corporations: Government exercises influence in financial sector whilst financial community exercises control in government.
ADV:
- Quicker decisions – government relies on order of executive powers, so they don’t take long to arrive at a conclusion about important matters.
- Corporations significantly contribute to the country’s GDP and with gov’t assistance, they can grow rapidly, contributing to increased economic growth
- Corporations can wield their influence on the law, speeding up the process of justice & simplifying complicated legal matters.
DISADV:
- Labour sector suffers the most as the rich & working-class gap widens
- Unethical, and concept of democracy is shattered
- Government don’t have individual freedom to do what it feels is good for the country; the leaders must follow the influential corporate magnates.
EXAMPLES: 1) BRITISH EAST INDIA COMPANY 2) FRENCH EAST INDIA COMPANY 3) DUTCH EAST INDIA COMPANY.
BLACK ROCK is an American Multinational investment management corporation that have $10 Trillion USD under management as of Jan 2022. It’s one of the world’s leading providers of investment, advisory & risk management solutions.
Koch industries owned by Charles Koch who has a net worth of $58 billion, is a privately held multinational conglomerate corporation. They manufacture paper, process minerals, create fertilisers & refine oil. It has a lot of subsidiaries involved in ranching, commodities trading & investing.
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