Corporations that bestride the world

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Some giant corporations are larger than small countries, but that is not the source of their power.

The source of their power lies in the fact that if a large corporation doesn’t like a government’s policies, it can take its money to a nation more to its liking.

International treaties, as well as organizations such as the World Trade Organization and International Monetary Fund, insist in the right of money to migrate wherever and however its owners wish.

Individual human beings do not enjoy the same right.  Large and sudden shifts of money and population both can be disruptive, but the migration of money is considered a right and the migration of people is considered a problem.

International treaties and agreements such as the World Trade Treaty, North American Free Trade Agreement and the proposed Trans Pacific Partnership Agreement give international corporations a legal status equal to sovereign governments.  If corporate executives think a government’s laws or policies are unjust, they can appeal to a business-friendly tribunal to overturn the law or penalize the government.

The important thing to remember about all this is that none of this is the result of impersonal workings of the laws of economics.

It is the result of decisions made by governments, which could have decided otherwise.

Corporations are created by law.  Any powers they have come from charters by a state or local government which define what the corporate body can and cannot do.

Without legislation allowing such charters, corporations would simply be collections of individuals.  There would be no corporate structure to stand between them and their liability for debts and criminal penalties.

The power of international corporations to shift capital from one country to another exists only because there are laws that allow this to happen.  The power of international corporations to override national sovereignty exists only because nations give up their sovereignty.

It’s possible to imagine a world in which things are different—in which international treaties set standards to require corporations to treat workers decently, sell non-toxic products and refrain from damaging the local environment.

That’s not the world we live in right now.  But it is a world that we the people have the  power to create.

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2 Responses to “Corporations that bestride the world”

  1. Gunny G Says:

    Reblogged this on GUNNY G: NOTHING BY ACCIDENT IN POLITICS…!.

    Like

  2. prayerwarriorpsychicnot Says:

    Reblogged this on Citizens, not serfs.

    Like

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