The rise of the corporate colossus is a giant problem
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Re: The rise of the corporate colossus is a giant problem
#2* The share of GDP generated by America’s 100 biggest companies rose from about 33% in 1994 to 46% in 2013.
* The five largest banks account for 45% of banking assets, up from 25% in 2000.
* About 30% of global foreign direct investment (FDI) flows through tax havens; big companies routinely use “transfer pricing” to pretend that profits generated in one part of the world are in fact made in another.
Re: The rise of the corporate colossus is a giant problem
#3Maybe it doesn't confuse others, but the removal of the word 'the' before "corporate colossus" (as it appears in the subtitle of the linked article) makes this title hard for me to parse.
EDIT: It's since been restored; thanks!
Re: The rise of the corporate colossus is a giant problem
#4> But better the grind of multilateral negotiation than moves such as the European Commission’s recent attempt to impose retrospective taxes on Apple in Ireland.
Uh, isn't that "move" enforcement of the results of multilateral negotiation (the EU and its rules)? What exactly will or should happen when parties of these multilateral negotiations and agreements the column champions violate the rules? I'm guessing it'll resemble a "retrospective tax" so closely that it'd be hard to tell the two apart.
Re: The rise of the corporate colossus is a giant problem
#5The issue is that the corporations are allowed to spread virtually unchecked out of the borders of their 'home' country. This allows them to grow virtually unchecked, and use the information friction between country's governments to obfuscate what's happening.
Re: The rise of the corporate colossus is a giant problem
#6F4 cc yourffrrcc4f rf
Re: The rise of the corporate colossus is a giant problem
#7Growth is globalized. Global companies get a disproportionate share of growth. Therefore giants will become increasingly large relative to non-global entities.
I'm not sure what the specific problems are. Which makes prescribing a fix impossible.
Re: The rise of the corporate colossus is a giant problem
#8In 1990 the top three carmakers in Detroit had a market capitalisation of $36 billion and 1.2m employees.
In 2014 the top three firms in Silicon Valley, with a market capitalisation of over $1 trillion, had only 137,000 employees.
Re: The rise of the corporate colossus is a giant problem
#9> But better the grind of multilateral negotiation than moves such as the European Commission’s recent attempt to impose retrospective taxes on Apple in Ireland. Uh, isn't that "move" enforcement of the results of multilateral negotiation (the EU and its rules)? What exactly will or should happen when parties of these multilateral negotiations and agreements the column champions violate the rules? I'm guessing it'll…
The EU isn't multilateral. Multilateral would be the EU + the US + Japan + China + other smaller economies, or at least the majority of those players.
Re: The rise of the corporate colossus is a giant problem
#10IMO, this problem is mostly a factor of the consolidation of finance.
The roll up of banking makes it impossible for smaller enterprises to get traditional capital. We moved away from the old, boom/bust distributed banking model towards a weird form of command economy with a cartel of mega-banks, which are really just proxies for the government.
People blame technology for the post-recession economy, but I think the billions/trillions of capital the flooded the market never made it into the economy. No wonder little is happening outside of businesses that work with a venture model.