The trend toward megamergers has at least four negative characteristics

The trend toward megamergers has at least four negative characteristics

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• The trend toward megamergers has at least four negative characteristics: 1) It increases the centralization of capital, which reduces competition and raises prices for consumers. 2) As corporations become fewer and larger, they have increased power over workers, unions, and governments. 3) It reduces the number of jobs as the merged companies eliminate redundant positions. Companies frequently downsize the workforce even though they are making record profits. 4) It is nonproductive. Mergers do not create new plants, products, or jobs. Rather, they create tremendous profits for chief executive officers, lawyers, accountants, brokers, bankers, and big investors. Who Rules America? Explaining Political Power • The Power Elite Model is associated with C. Wright Mills, who argues that power
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Unformatted text preview: is concentrated in the hands of a small group of people known as the power elite. They are part of the top positions of political, economic, and military positions. These members are interchangeable (e.g., a military leader may easily become a political leader). Members share a common class background and class culture. The Pluralist Model assumes that there are many different competing bases of power, with no single group dominating another. No one group has access to most resources or controls decision making. Pluralists point out that businesses are not monolithicpolicies may help large (core) businesses but not small businesses. Also, various sectors may compete for resources (e.g., military and economic sectors compete for experts)....
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This note was uploaded on 11/08/2011 for the course SCIE SYG2000 taught by Professor Bernhardt during the Fall '10 term at Broward College.

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