"Corporate corruption is out of control for two main reasons. First, big companies are now multinational, while governments remain national. Big companies are so financially powerful that governments are afraid to take them on.
"Second, companies are the major funders of political campaigns in places like the US, while politicians themselves are often part owners, or at least the silent beneficiaries of corporate profits. Roughly one-half of US Congressmen are millionaires, and many have close ties to companies even before they arrive in Congress."
Read the whole thing, The Global Economy’s Corporate Crime Wave.
Nothing here we didn't already know from Bill Black, Frank Partnoy, Janet Tavakoli, Yves Smith, Elliot Spitzer and others. But it is nice to see a major economist saying it so forcefully. The question is whether anyone is listening?
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When you drive into New York or Michigan from Canada, the contrast is as startling as driving from San Diego to Mexico. Prosperity vs poverty and corruption. Canada has the same corrupt companies as the United States but they have maintained roads and bridges, occupied houses, active manufacturing plants, healthy agriculture, vibrant commerce and city centers. Then you come to USA where the houses are boarded, the factories shuttered, the high rises abandoned, the bridges rusted and roads with steel showing through the crumbling concrete. So it is hard to imagine how corporate corruption could be held to blame for the plight of the majority of America. Under-performing government and political corruption combined with stupid belief systems have to drown out any discernible effect of corporate corruption.
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