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Income Gap in the U.S. Workers rights vs. Corporate Rights - Research Paper Example


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Income Gap in the U.S. Workers rights vs. Corporate Rights

While the supply of the Dollar is regulated by the Federal Reserve, the national banks create money by loaning them out to other borrowers who end up paying with interest. However, the national banks do not lend out all money as some of the money is reserved with the total reserved being kept by the Federal Reserve. As noted by Winkler’s notes on money creation (5), “DOLLARS ARE CREATED PRIVATELY AS LOANS BY BANKERS WHO ARE PART OF THE FEDERAL RESERVE”. Question 2: Workers’ rights vs. Corporate Rights Employees are some of the best resources that an organization could be endowed with because they determine the performance of the firm to a large extent as compared to any other inputs. The rights of employees are many and they are embedded in company policies. For effective performance, employees must be given their rights, which leave them motivated. McIntyre argues that there are many rights of employees (102). To begin with, employees are entitled to the best working environment. The working environment entails the conditions at work. For instance, the place of work should not hinder any employee form performing their duties. In addition, the environment should be encouraging to the kind of work done by the employee. A bad working environment could be illustrated by intimidation by the management. The federal government has always stood for the rights of the employees. This can be clearly indicated by the establishment of the ILO noted by McIntyre who said, “PRESIDENT CLINTON FAILED TO

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PERSUADE THE SEATTLE WORLD TRADE ORGANIZATION (WTO) MEETING TO APPROVE A PANEL ON WORKER RIGHTS AND LABOR STANDARDS, HE SIGNED INTERNATIONAL LABOR ORGANIZATION (ILO) CONVENTION NO. 182 ON THE WORST FORMS OF CHILD LABOR” (103). Therefore, the interests of many employers in the U.S. that are represented by the Council for International Business were curtailed by the ratification of the ILO convention. Concerning corporate rights, employers have a right to sue and the rights of employers are just like those of an individual. In addition to the rights to sue, corporations have some reserved corporate rights granted to them under the common law and the constitution of the U.S. However, the constitution does not grant firms to have similar rights as citizens and the two are not equal in terms of rights. For instance, the case of Dartmouth College v. Woodward that arose when the board of trustees ousted the president of the college is a good example. In the case, the state of New Hampshire tried publicizing the college and the governor being awarded powers to appoint the board of trustees due to the new powers. However, it was held that the college was independent to govern itself and acquire its own property (Winkler, “Glossary of Terms” 8). Question 3: Income Gap in the U.S. The gap in the income as defined by Winkler in the Glossary of Terms is the differences exhibited in the incomes earned by the different participants in an economy (8). This means that not all participants get equal income since there are some that get high incomes while others low. The income gap is often presented in as a percentage of the total population in a country. According to Winkler (6), the inequality of income as measured by the Gini coefficient in the U.S. has been on the increase over time and it is higher than any other developed country across the globe. He further argues that though simple to express the level of inequality in the U.S., its causes could be attributed to various factors. To begin with, globalization and advance in technology can simultaneously be used to explain the
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Money in the U.S. is used as a medium of exchange among many other uses that enable transactions in the U.S. concerning exchange of goods and services. The creation and supply of the U.S. Dollar is controlled by the Federal Reserve…
Income Gap in the U.S. Workers rights vs. Corporate Rights
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