What were the economic, social, and political consequences of the rise of big business - Essay Example

?What were the economic, social, and political consequences of the rise of big business? Few events in the history of the world have had the impact of the rise of big business. The world has changed dramatically because of this phenomenon and people are immeasurably better off. Although business and capitalism have their critics, they have provided an unalloyed good for humankind. This brief essay will explore the rise of big business and its economic, social, and political consequences. It will be hard to do this in such a short space, but even a brief summary indicates the resounding importance of this topic. The truth is that big business is all around us each and every day. It has shaped our lives in ways we do not even understand. The rise of big business can be traced back to the earliest days of human social organization. Back then various tribes lived in remote areas. There were no roads or train tracks connecting disparate human communities. Everyone had to rely on themselves. Slowly, however, contact was made and the tribes began to work together. The main way they did this was to trade. Trade permitted communities to dramatically increase their resources both by making use of things they had and trading a superabundance of these things for resources that they did not. From these humble beginnings, the first businesses began to grow. A business is usually an organization that makes or distributes an item or a service that people need. It is hard to think of a business that fulfills a goal which an individual could easily do on their own. Businesses are pooled resources and knowledge that make our lives more convenient and successful. However, it was not a direct path from these early tribe-like businesses to the businesses of today. One of the most important steps was urbanization. As people came to live together in large groups, cities developed. These large populations needed to be supported with businesses. These businesses often worked in close vicinity with one another in a marketplace. All cultures have marketplaces—they are sometimes known as bazaars in the Eastern parts of the world. From this accumulation, a number of phenomenon occurred. Businesses wanted to be more and more successful, and so they asked the government to develop policies which would help businesses grow. Politicians liked money, so they were happy to help businesses make more of it. For some critics of businesses this nexus between government and business is a negative one. However, while there have certainly been many corrupt governments over the years, and many politicians do enjoy lining their own pockets, it is not fair to criticize business for this reason. The truth is that politicians tend to listen to business interest for one very important reason: almost everyone works for a business of some sort. Businesses play an extremely important role in employing people and paying tax revenue which governments rely on to provide services for people. They are all around us at all times. Without big business we would not have cars, computers, food, ultrasounds, airplanes, movies, magazines, newspapers, soap, and many other things which use every day. We need to carefully consider the impact of business before complaining about its rise. Business is at the heart of many political disputes. The 20th century saw the rise of Communism and its very anti-business ethos. Communists did not believe in the private sector. They felt that the government should run all businesses and control all private enterprise. Rather than permitting a market, or conglomeration of supply and demand, to decide the price of items, instead Communists believed that a central government would be able to do this much more effectively. Communists took over countries such as Russia and China and tried to destroy all private businesses. In other Communist countries foreign businesses were nationalized and brought under the control of the government. In each of these countries, the economy fell off a cliff. It became clear soon enough that governments are not very good at managing companies. When a central committee tries to control a marketplace, they create chaos. It takes a great deal of trust to believe that markets can take care of themselves; but such trust can be rewarded. In the end, capitalism, big business and the marketplace destroyed communism. Everyone wants to lead a better life and make more money. This was a titanic political struggle, but it was one in which right prevailed and evil was defeated. In recent years, big business has again had a negative connotation. The financial crisis is blamed by some on Wall Street. However, it may make more sense to suggest that the government encouraged too much home ownership and provided too many subsidies. In the end, however, banks and big businesses needed to be bailed out because they were too big to fail. This infuriated many normal citizens. As such, big business has lost much of its reputation. Business people are regarded with distrust and suspicion. Politicians frequently rail against their greed. It does not have to be this way and it may not be in the future. Big business is an important part of our lives which we must recognize and appreciate. Our lives are made much more convenient and pleasant because of the services and products provided to us by business. We need to understand the full context and full history before we begin to complain about big business. Some of our best friends, after all, are employed by these kinds of companies. The truth is that businesses rule our world. This is not a bad thing. Business is everywhere and it makes our lives more and more convenient. It is impossible to suggest that it is perfect and that no business has ever done anything wrong. However, those who criticize business people as greedy are merely playing politics. Many business people are very community-oriented. They want only the best for their employees and their families. We must understand how humanity arrived at the position that it currently enjoys. We got there because of business. It has shaped us and will continue to shape us from cradle to grave. It is the pursuit of something better. Read More