Thursday, December 27, 2012

Corporations Leading the Way?

    Corporations have an invested interest in doing everything they can to protect the middle class. The middle class is the foundation of many corporations in the United States. Granted, there will always be corporations that will rape the middle class (big oil and banking come to mind). However, there is massive section of our economy that thrives and dies based on how much money the middle class has in its pocket.

    The industries that thrive on the middle class are in all sections of the economy. Right now Olive Garden and their mother company Darden Restaurants are feeling the pinch (as well as other companies like them). People do not want to spend money they do not have. People are working harder and harder for their money and they do not want to blow 50 or 60 dollars on one meal. This is only the beginning! People are not going to buy gym memberships, high end electronics, etc if they cannot even buy food. No one will pay 150 dollars for sneakers or 40 dollars for a bra from Victoria's Secret if they cannot afford basics.

    Corporations have all the muscle in the new Oligarchy that is the United States. Corporations have an incentive to keep the middle class healthy against the big banks, big oil, and anyone that wants to rape the class that feeds them. Corporations that have the muscle to fight this destruction of the middle class have to start stepping up or there is a big possibility that they might just watch their customers stop spending on new goods and services! The foundation of goods and services based corporations is tied directly to how much money the American middle class has to spend on those goods and services.

    Corporations not only need to keep the current middle class healthy, but can expand their profits by fighting for programs that raise the lower classes into the middle class. The middle class is the customer base of most of these goods and service based companies. So, how do companies expand this customer base? Companies that sell goods and services could double their customer base right here at home by using their muscle to fight for programs that expand the middle class and raising up the people in the lower classes, rural communities, and poverty areas into the spending middle class.

    The solution has to begin with education. It is basic economics that as a demand increases, then so will the supply. Our televisions are loaded with reality stars becoming wealthy overnight by being idiots. Therefore, the supply of idiots is increasing faster than the supply of intellectuals, scientists, and engineers. This presents a big problem for companies looking to recruit top talent. Companies are always looking for top talent to lead and reinvent the company for higher profits. Top talents are not around every corner and it takes time and effort (both from the student and college) to turn a student into a top talent. If companies want top talent to further their companies, then they have to be willing to invest in education to create the supply of top talent that companies demand.

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