Mr. Farwell’s Other Voices column of Aug. 6 is highly illogical. Wealthy individuals and corporate leaders (frequently one and the same) are interested in one thing only — increasing their profit and wealth.
Corporations do not benefit from “more budget deficits, more debt, more unfunded entitlement liabilities and more government dependency.” If anything, these things cut back or eliminate profitability since they directly and indirectly reduce the buying power of the government, their customers and their potential customers. Corporate profits (capitalism) are based on supply and demand.
There are three ways to increase profits — increase demand; reduce supply; and reduce the costs of making, distributing and selling products and services. Unfunded entitlement liabilities (despite what some would have you believe, Social Security and Medicare are not entitlements and are not government expenditures) and more government dependency does not create more demand for goods and services because these programs do not provide the individuals who receive funding with enough money to have much, if any, disposable income. People who live on what they receive from these types of programs can barely manage to pay for necessities, never mind discretionary purchases.
Mr. Farwell has tried and failed to use Sharon Delgado’s enlightening column on Agenda 21 and the Trans-Pacific Partnership to attack government programs that help people in need. Corporations never benefit from governments that put the welfare of the people at the top of the list. Corporations benefit from governments that fail to regulate their policies and practices and allow them to gain wealth at the expense of the middle class. Unregulated, unrestrained capitalism results in shoddy, dangerous products and services, a smaller middle class and more people needing government assistance.
The massive transfer of wealth from the middle class to the corporate elite that we’ve experienced over the last 50 years has resulted in massive short-term profits for large corporations. However, in the long term it can only result in economic collapse and widespread misery.