The Politics of Big Business

Big business and politics have maintained an uneasy relationship since the antitrust laws introduced by the US Government towards the end of the Industrial Revolution of the 19th century. In the modern world the same problems seem to constantly appear for big businesses wishing to improve their profitability with the help of a government desperately in need of their tax dollars and monetary backing for electoral success.

Since the 2008 economic downturn the relationship between big business and the governments of the world has become increasingly strained with escalating rows about the treatment of workers and the small amount of taxes paid by most large corporations. Governments have seen the electorates become annoyed about large companies basing themselves in regions with low tax thresholds and using loopholes to reduce the amount of tax paid on large profits. In the UK the positioning of large companies like Amazon in the low taxation country of Ireland instead of the UK for its UK sales division has caused outrage and forced government regulation to be considered to reduce the available options and force a rise in the taxes paid by these corporations.

The economy of a country and the world as a whole is linked to the success of both large and small businesses prompting anger and calls for small business assistance to protect small companies from being driven out of business by large corporations. This argument dates back to the 19th century when large companies formed monopolies and forced small businesses out of certain markets prompting the antitrust laws designed to protect workers and small business owners.

With unemployment figures not falling at a rate any of the world’s government’s feel is fast enough the problem of just when and where products are produced as company’s search for the cheapest and fastest production techniques. Many consumers search for ethically produced products, but these questions of remaining loyal to the important areas of business growth that require low production costs for higher profits. Big businesses are often searching for the best available tax breaks and incentives from a government to bring production and other parts of a business to a specific area. With the US government blocking the merger of large airlines to avoid the production of large monopolies the battles between profits and consumer satisfaction are certain to rumble on.