JG:
Joe Omar Gonzales
English 101, Section 3226
Professor, O’Connell
LACC, Essay 2 ½ due
America’s Broken, Corporate Greed and Corruption
The United States of America’s government once had a system to ensure
the best interests of the people. Interestingly, every single
government regulatory department is now run by the corporations it is
supposed to be regulating. Take a look at the FDA (Food and Drug
Administration), USDA (United States Department of Agriculture), the
FTC, FCC, and the SEC to name a few. And, all other government
entities, you will find Board rooms and other rooms full of
politicians, bureaucrats and lobbyist who unreservedly abandon the
“People” while prioritizing the financial needs of influential and by
the end of our last President George W. Bush and his corrupt and
greedy Administration, the U.S. became “top heavy”.
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As Andrew J.
Bacevich argues in his book “The Limits of Power”; “The
Jeffersonian
trinity summarizes our common inheritance, defines our
aspirations and
provides the touchstone for our influenced
abroad.” (p15). “From
expansion came abundance”, “Documents drafted
in Philadelphia promised
liberty. Making well on these promises
refused a political economy
that facilitated the creation of wealth
on an enormous scale”.
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Every
American I have talked too, basically in a nutshell are fearful
of our
government.
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Because of the overwhelmingly slant towards enriching the
corporations, our policies on national defense, health care, finances
and agricultural come to the expense of the people. Corporations
gained power, greed and influence over our government and the people,
because of “Campaign Finances”. It is extravagant the amount of
lobbyists who work for fortune 500 companies. Lobbyists spend their
time in and out of Washington, leaving Congressmen/women with money,
luxurious gifts and vacations fit for a Queen. Unfortunately it is
Wall Street (fortune 500 co.) who controls Congress today.
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In the
Senate of the United States, 110th Congress (2nd session)
November
19th 2008 introduced by Mr. Sanders, Mrs. Lincoln and Mrs.
Boxer,
which was read twice and referred to the Committee on Banking,
Housing
and Urban Affairs. A bill, to limit the amount of
compensation for
employees and executives of financial institutions
assisted and the
Troubled Asset Relief Program and for other
purposes. Also, known as
the “Stop Greed on Wall Street Act”. This
is an amendment to the TARP
bill and will put limits on
Compensation. There is also the House of
Representatives, 111th
Congress (1st session) March 17, 2009,
introduced by Mr. Conyers and
7 co-authors; which was referred to the
Committee on the Judiciary.
This bill would authorize the U.S.
Attorney General after discussion
with the Secretary of the Treasury
to limit or recover excessive
compensation paid or payable by entities
that have received Federal
financial assistance on or after September
1, 2008. Also, known as
“End Government Reimbursement of Excessive
Executive Disbursements
(end GREED) act”. This bill is extreme as it
will establish a
uniform law on bankruptcy; authorize U.S. Attorney
General after
consultation with Secretary of the Treasury. Recovery
of Excessive
Compensation, Review of Contracts, Payments and Civil
action for
Fraudulent Transfer. It will also give U.S. Attorney
General
Authorization to issue subpoena.
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Within these two bills will
be more checks and balances. But the
bigger question is will they
work?
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There are so many ways for fortune 500 companies to do creative
accounting, moving money around, and finding ways of playing the
game. According to AFSCME “We Make America Happen” 38th
International
Convention, July 28 – August 1, 2008, the Chief
Executive Officer
(CEO) of a Standard & Poor’s 500 company received
on average $14.2
million in total compensation, which is nearly 400
times the pay of
the average U.S. worker according to “The Corporate
Library”, a
corporate governance research firm. Average family
incomes are only
15 percent higher today than they were three decades
ago. Countrywide
CEO Angelo Mozila, Citigroup Chuck Prince and
Merrill Lynch’s Ken
Lewis were rewarded with hundreds of millions of
dollars in payoffs
and golden parachutes. A “Golden Parachute Plan”
is a term that
Corporate Human Resources uses for its top Executive
Officers, Board
of Directors, CEO, CFO etc., it is another form of
“Benefits”, long
story short, it will pay for everything (medical,
dental, vision) that
the normal benefit plan will not cover (it picks
up the tab), it
usually includes cosmetic surgery, 100 pairs of
prescription glasses
(bi-focal, tri-focal contact lenses, over the
counter medications
etc., including but not limited to car insurance,
life insurance and
this includes spouses and their children,
including children in
college no matter what age. It will give them
stock options, bonuses,
stocks/shares, Employee Stock Ownership Plans
(ESOP), may include 100%
match of 401(k) no matter the amount and
whatever else they throw into
Golden Parachute Plan. In an article
by Warren Buffet (2009)
published in his New York Times article “The
Green Back Effect”, “the
United States economy is now out of the
emergency room and seems to be
on a slow path to recovery”, “after
actions taken by both the bush and
Obama administrations kept the
financial system from a complete
collapse into a severe depression.”
Buffet believes that the bills
passed to help the financial crisis
may be temporary, but have long
term effects that we have to deal
with now or America will collapse.
As Basevich states “the foreign
policy implications of our present day
penchant for consumption and
self indulgence are almost entirely
negative”. (p16).
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It is imperative that America live within its means
and if we can
come up with some alternative energy solutions. Also,
make health
care affordable for all Americans, and putting caps on
CEO’s and
Executive salaries will also help. I believe what Basevich
says
about “Educating America”, this will be key to any and all
children;
they should all get the same education. Public School
students
deserve a private school education. It may be hard to change
America
the Greedy and help the Needy, but I believe in America, can
and will
do better, all good things in life take time.
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revising the structure
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sorry for the confusion and delay
References:
Andrew Bacevich 2008. Limits of Power: The End of
American
Exceptionalsim. New York: Hold Paperback. October 2009.
http://www.afscme.org/members/24430.cfm
NewsTarget.com/Truth Publishing, June 22, 2007. Straight to The
Source
http://www.thomas.gov/cgi-bin/query/D?c111:2:/temp/~mdbsrdLEyf::
http://thomas.loc.gov/cgi/gin/query/C?c110:/temp/~c110CWXXIs
Buffet, W. 2009, August 31. The Green Back Effect. New York Times.