MGMT 440 Ch 4 Critics of Business: Historical Perspectives in Economics and Society

Criticism of business

Belief that people in business place profit before more worthy values such as honesty, truth, justice, love, piety, aesthetics, tranquility, and respect for nature.

just price

A price giving a moderate profit; one inspired by fairness, not greed.

socialism

The doctrine of a classless society in which property is collectively owned and income from labor is equally divided among members.

neoliberalism

A word denoting both the ideology of using markets to organize society and a set of specific policies to free markets from state intrusion.

liberalism

The philosophy of an open society in which the state does not interfere with rights of individuals.

Poor Richard's Almanack

The first annual publication by Franklin in 1732, containing facts, information, and self-help advice.

Alexander Hamilton

The first secretary of the treasury who believed industrial growth would increase national power.

Hamilton's policies included

taxation, debt financing, tariffs to protect infant industry, and creation of a national bank.

Thomas Jefferson

Secretary of State and a philosophical thinker who advocated for an agrarian society.

Jefferson's Vision

He believed an agrarian economy would prevent subservience to the wealthy and promote equality and justice.

New Harmony

founded in 1825 by Robert Owen in Indiana, the largest model community aimed at promoting equality and cooperation.

Robert Owen

An English industrialist who believed human values were corrupted by factory work and sought to create a better society.

Principles of New Harmony

based on principles of equality, charity, cooperation, and moderation.

Mother Mary

A labor activist known for her speeches that rallied farmers against Wall Street and monopolies.

Government Ownership (Nationalization)

A policy advocated by populists for railroads, telegraph and telephone companies, and banks.

William McKinley

The president of the United States at the time The Wonderful Wizard of Oz was written, representing the moneyed elite.

Populism/People's Party

late 19th century, coalition of farmers, laborers, and other groups opposing big companies.

Interstate Commerce Commission

A regulatory agency created in 1887 to regulate railroads, supported by the populist movement.

Progressivism

A mainstream political doctrine aimed at curing social ills by using government regulation to control perceived abuses of big business.

The Communist Manifesto

A publication by Karl Marx and Friedrich Engels in 1848 that laid the foundation for socialism based on classless society.

Seventeenth Amendment (1913)

allowed direct election of senators, accomplishing part of the Populist agenda.

Theodore Roosevelt (1901-1909)

AKA trust buster who was run by the Progressive Party in 1912.

Industrial Workers of the World (IWW)

A labor organization formed in 1905 to represent all workers in the fight against capitalism.

Economic power

The control of the means of production, which the IWW sought to place in the hands of the working-class.

World War I (1914-1918)

A conflict labeled by socialist unions as an imperialist war, leading to a refusal of labor to support it.

Long's Wealth redistribution plan

A proposal introduced to tax corporate assets and large fortunes, to provide every family with an initial $5k and $2500/yr guaranteed income.

World War II business support

The resurgence of public support for businesses due to their essential contributions to the war effort.

Postwar poll on big business

A survey indicating that only 10 percent of the population believed the negative effects of big business outweighed the positive.

Civil rights movement

A social movement aimed at ending racial discrimination and ensuring equal rights.

Confidence Gap

A gap between public expectations about how corporations should act and public perceptions of how they actually did act.

Public Trust Decline

The percentage of Americans who believed that businesses tried to strike a fair balance between profits and the public interest fell from 70 percent in 1968 to 15 percent in 1976.

Long-term Confidence Trend

The percentage of Americans expressing 'a great deal of confidence' in leaders of major companies fell from 55 percent in 1966 to 16 percent in 1976.

Rise of Republican Conservatism

The election of Ronald Reagan in 1980 marked a shift towards Republican conservatism: deregulation and free markets aka Reagonomics (trickle down economics).

Confidence Recovery

The percentage of public confidence in business leaders recovered to 28 percent in 2000, near the peak of a great bull market.

Conservative Think Tanks

Organizations funded by corporations to promote conservative views on regulation and business practices.

Personhood

The legal recognition of corporations as individuals with individual rights under the law.

Ralph Nader

A prominent activist and diplomat known for his work on consumer rights and corporate accountability.

Unsafe at Any Speed

A book by Ralph Nader that criticized the auto industry for prioritizing style over safety.

Green Party

A political party that emphasizes environmental issues and social justice, which Nader represented in his presidential run.

John Maynard Keynes (Keynesian Economics)

A British economist who argued that markets could be managed (by governments) to dampen business cycles and promote full employment.

Milton Friedman

Leader of free market thinking at the University of Chicago, who advocated for maximizing the market's role and reducing government intervention.

Chicago School of thought

A shorthand term for a doctrine of privatization, free trade, and deregulation associated with Friedman and colleagues.

Stagflation (1970s)

high unemployment, high inflation resulting from a decrease in aggregate supply; crop failures, oil shocks, war costs

Privatization

The process of transferring ownership of state-owned enterprises to private entities.

Keynesian Policies

Economic theories advocating for government intervention (fiscal and monetary policies) to stabilize economic cycles.

Harassment, ridicule, and shaming

Tactics used by activists to disrupt corporate executives' lives and create negative publicity.

Corporate Accountability International

An organization that inducts corporations into its Hall of Shame for irresponsible actions.

Public Eye awards

Awards given to corporations for exceptional irresponsibility, presented at the World Economic Forum.

Progressive Vision

The belief that standards of responsibility, justice, equity, and rights should be imposed on corporations due to their corruption of governments and manipulation of consumers.

Cultural Values Promoted by Capitalism

Imagination, innovation, cooperation, hard work, and interpersonal trust necessary for daily business transactions.