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Corporations and How They Have Changed From the Beginning of the Twentieth Century Until Now - Research Paper Example

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Author Tutor Course Date Corporations & how they have changed from the beginning of the twentieth century until now. This study focuses on the changes that corporations have undergone since the twentieth century until now. The paper will examine the vitality of corporations on the economy and encouragement that they should be given…
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Corporations and How They Have Changed From the Beginning of the Twentieth Century Until Now
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"Corporations and How They Have Changed From the Beginning of the Twentieth Century Until Now"

Download file to see previous pages Lastly, the paper will explore when people should demand the government aid to rebuke or persuade activities of corporations. Introduction The American economy underwent significant maturity during the twentieth century. The changes in the economy were accompanied with the emergence of numerous corporations. Technocrats emerged and replaced business barons; high salaried managers became the executives in these corporations. As a result of the rising number of corporations, organized labor movement emerged. Moreover, the technological developments witnessed during the 1980s and 1990s brought with it a new culture of entrepreneurship that gave rise to tycoons (Drehle 48). With globalization, corporations had the opportunity to expand their operations to international borders. As such, companies opened foreign branches that helped to increase profitability and gain a large customer base. Discussion Through subsidies, special taxes, and special protocols, the federal government significantly contributes to the protection of corporations. Tax subsidies emanate from selective tax legislation aimed at benefiting some industries in the economy. The industries that reap maximum benefits from tax subsidies include corporations. Subsidies enhance the corporations to increase their returns in the market where they operate. Tax subsidies may be applied in a number of variables in a Corporation. For example, the federal government can decide to offer subsidies in terms of labor or land (Drehle 50). Special taxes and subsidies may take the form of general investment tax credits that may be made available to corporations. For example, the federal government can decide to favor productive methods that are capital-based. In its view, the federal government argues that tax subsidies play an essential role in promoting economic growth and economic stability. The federal government should make concerted efforts to develop, promote, and foster international and domestic trade by offering subsidies to corporations (Drehle 51). As a result, trade barriers will be removed and this promotes free trade in the American economy. The reduction of trade restrictions benefits the entire economy since some trade rules hinder economic development. Tax reductions and offering of subsidies to corporations can be justified; therefore, the federal government has an obligation to subsidize corporations. Subsidies and reduction in taxes mean that the corporations will have an opportunity to manufacture goods in large quantities. Therefore, corporations will sell goods to consumers at reduced prices. As such, consumer exploitation by middlemen and businesses will be minimized. Thus, it can be concluded that distinct taxes on corporations serves to protect consumers from buying goods at extremely high prices (Drehle 51). Through the use of subsidies and tax reduction, the government guards the corporations against quiting the industries in which they operate. Some economic activities would not take place in the absence of subsidies and special taxes. Therefore, subsidies protect the business and normally lead to low imports and high exports (Drehle 52). The benefits of subsidies on businesses extend to employees working in these corporations. As a result of subsidies, corporations can pay their employees high wages. Consequently, the government will get high revenue from taxation of individual income. The federal gove ...Download file to see next pagesRead More
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