Capitalism bully ascertains finds the Organization for Economic
Cooperation and Development (OECD), which primarily deals with
the most robust economies in the world. Wilder and widens the
inequality between rich and poor. According to OECD in the period
2007-2010, the gap between rich and poor widened longer than the
12 years that have been preceded.
In 33 countries covering by OECD, 10% of the wealthiest residents
acquire in 2010 incomes 9.5 times more than the poorest, compared
with 9 times in 2007.
The biggest differences between wealthy and poor citizens appeared
in U.S., Turkey, Mexico and Chile.
Countries with the smaller comparatively deviations are Iceland,
Norway, Denmark and Slovenia.
Of course OECD analysts point out that after taxes and social
transfers, levels of income inequality and relative poverty in OECD
countries was only slightly higher in 2010 compared to 2007.
However, many countries now focus on lowering deficit and debt, so
OECD warns that "increased risk" of inequality and poverty to be
increased. "These alarming findings underscore the need of the
protection of the most vulnerable in society protection, especially as governments seek the necessary control of public spending," said
OECD Secretary-General, Angel Curria (http://www.oeced.org).
In the last 13 years have been noticed the fastest reduction of poverty
in the history of humanity, however half a billion people still live
below the absolute poverty, on less than 1.25 $ per day.
The accumulation of wealth in a "handful" of people also attest
investigation carried out by Boston Consulting Group, according to
which 39% of the world's wealth is in the "hands" of the richest 1%
of the people (http://www.bcg.com) .
As has been revealed by the survey, the richest 1% possesses 52.8%
wealth in trillion Euros. In the meantime the total wealth of the world is recording an increase of 7,8% in 2012, supported in 135 trillion
dollars.
Also, the number of millionaires is growing rapidly and only in 2012
was raised in 10%.
However as is pointed out by the investigation the accumulation of
wealth in the hands of the "few" is expected to swell as the wealth
growth of the rich is greater than the growth rate of global wealth [(The Economist (Europe), June 1, 2013].
Income inequalities have increased internationally in space 1980 -
2008 regardless of the economic growth experienced in some
countries, according to the OECD study «Divided we Stand: Why
Inequality Keeps Rising».
The conclusions of this study refute the view that the economic
growth benefits spread automatically and to non-preferential. More
specifically reveals that the richest 10% of the population wins 9
times more than the poorest 10%. Inequalities remain higher in
development economies outside of OECD, with typical case of
Brazil where the income disparity between rich and poor is 50 to 1.
OECD considers as main causes of inequality the big differences in
salaries, the increased part-time work, the reducing social benefits,
but also reduce tax rates on high incomes.
"The social contract has been reversed in many countries. Without a
comprehensive development policy inequalities will still magnified,
"noted the Secretary-General of the OECD at the presentation of the
study and called governments to take immediate action
(http://www.oecd.org/els/soc/dividedwestandwhyinequalitykeepsrisin
g.htm).
Capitalism as the dominant system of economic organization is in
crisis. The capitalist system through the process of creative
destruction (Schumpeter J., 1975) assumed that rewards efficient and
innovative, punishing non-productive, leading to progress and
development.
The question after it’s completely prevalence is how many are lost
and how many winners. Vulnerabilities in the current capitalist
system [(Hall PA and Soskice D., 2001), (Crouch C., 2005), (Gilpin
R., 2002)] are experiencing on a daily basis. Economic inequality,
poverty, strengthening of multinational corporations, exclusion of the working classes, wealth concentration, financial crises are some
crises symptoms.
The unchecked action of financial institutions and investment
vehicles leaves the system defenceless in speculations which
consumers are called to pay everywhere. Alan Greenspan statement
(for decade’s USA central banker) that "hedge funds are essentially
unchecked and hope to remain so. The imposition of a very expensive
coating arrangements will only be able to drown the excitement of
profit pursuit in areas that otherwise would have been remained
unexploited" creates questioning (Greenspan, A., 2007: 547-8).
Greenspan and the American FED are not blameless for many small or large financial crises (Fleckenstein W. and Sheehan F., 2008).
More specifically, the U.S. central bank seems according to its policy to be used in creating or in maintaining financial bubbles which have resulted in losses of billions of dollars (Citigroup, 2008).
More than anything else capitalism is being criticized for income
inequality and the concentration of wealth in few. According to the
data of the US Congress Budget Committee between 2003-2005 the
incomes increased of affluent Americans who correspond to 1% of
the inhabitant population, exceeded the total income of the poorest
population represents 20% of residents. Also was posted that in 2005
the wealthiest 10% of Americans saw its income growing at the
greater rate than 928 (The New York Times, December 15, 2007).
With the development of industries concerning services and high
technical expertise and with the spread of internet economy,
corporations providing services and technology play an increasingly
important role in the international market. Large corporations still
hold the largest share of international investment and there is a
tendency for high-scale international mergers.
At the same time, have been increased the international investment of
small and medium corporations which play an important role on the
international scene. Multinational corporations, like their national
counterparts, now include many different types of business
arrangements and organizational structures. Strategic alliances and
closer relations with suppliers and contractors tend to make less
distinct corporations limits.
The rapid evolution in the structure of multinational corporations is
also reflected in their activities in the developing world, where
foreign direct investment has grown rapidly. In the developing
countries, multinational corporations have diversified their activities
and have been expanded beyond primary production and extractive
industries, in manufacturing, assembling, development of the internal
market and services. Another important fact is the emergence of
multinational corporations in developing countries as major
international investors.
Google, Facebook, Nestle, Coca-Cola, General Motors etc. are
dominating economies and life on the planet earth. Globalisation has
created - as also was the purpose-new superpowers, multinational
corporations that impose their legislation against naive or complicity
governments.
"What's good for General Motors is good for America," said in 1953
Charles Wilson, CEO of the automaker.
During this period and in 1970s, "the multinational had been
designed as a power instrument in the country of origin", said
economist Frederique Sachwald. Nobody has yet been invented a
more modern term to describe these finance giants, industry and
services which in the years 1980 and 1990, became the spearhead of
the global economy.
Since then, the things have been changed dramatically.
These firms have become major powers. Since 2000, from the 100
largest economies, 55 were multinational corporations, according to
the United Nations Conference on Trade and Development
(UNCTAD). Today, the stock value of the number one, of Exxon
Mobil, is in the class between the GDP of Austria and Belgium.
These giants with international economic presence have gained
inordinate power on our daily lives. They are the ones that dictate the movements and the corresponding values of capital and labour. Those who influence what we eat and breathe. With the advent of digital technology, they manage all our personal data, our information and our access to social networks and cultural projects.
Amid political, economic and social protests which extend from the
Arab world and Europe up to Wall Street and amid economic crisis
that has centred Euro zone and is extended to the rest of the planet,
Switzerland Federal Institute of Technology published an analysis of
the relationships between 43.000 transnational corporations.
In this study is identified a small group consisting mostly of banks,
which seems to have the "hands" of the global economy power.
The team of Zurich isolated from 37 million corporations 43.060
multinational corporations and their shareholders between them.
Then constructed a model which shows how some companies control
others through their shares hold in them as also and the operating
income of each, in order to map the structure of economic power.
The study combined known mathematical models with spherical
corporate data in order to map who owns the big multinational
corporations, something which until now was almost impossible.
So, according to the study, there are 1.318 corporations with
interlocking ownerships. Each of these 1.318 companies has links
with two or three other companies, and on average is linked to 20
more. Moreover, even they represent 20% of global operating
revenues, these 1.318 appear to possess a whole through their shares
the majority of top-kind corporations and industries, representing
additional 60% of global revenues. So, with further analysis is
showing that at the top of the "pyramid" are only 147 corporations
which are even more connected between each other.