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Q.

When America is run by Corporates what made Amrica led to finantial breakdown and rise of poverty line??

Tags: money, america, corporates
Asked by Sharmila Bose, 28 Jun '12 03:17 pm
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Answers (6)

1.

AMERICANS are unaccustomed to recessions, particularly ones that involve shopping less. During the past quarter-century, the world's most powerful economy has suffered only two official downturns, in 1990-91 and 2001. Both were short and shallow. In 2001 consumer spending barely skipped a beat; a decade earlier it fell, but only briefly. Buoyed by rising asset prices and financial innovations that allowed ever more people to tap ever more debt, the collective American wallet has not snapped shut in almost two decades.

That may be about to change. Evidence is mounting that the economy has slipped into recessionand this time consumer weakness is to the fore (see article). The doughty American shopper is being pummelled by four things: the housing bust, the credit crunch, higher fuel and food costs and, most recently, a weakening labour market. The unemployment rate rose to 5.1% in March, while the private sector lost jobs for the fourth month in a row. Feeling poorer and with fewer pe ...more
Answered by saranathan Narasimhan, 28 Jun '12 03:23 pm

 
  
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2.

Coz americans are not used to save money

they make expense more then they earn coz they get easy debt there ..its main reason
Answered by Robin Hood, 28 Jun '12 03:21 pm

 
  
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3.

Consolidation of capital in corporate hands and loot of money of masses , these coroporates do not want to return the loot but masses are taxed heavily
Answered by mythsbusted, 28 Jun '12 03:20 pm

 
  
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4.

Too much interdependence
Answered by anil garg, 01 Jul '12 01:03 am

 
  
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5.

The fact that the interests of corporations and people of wealth are closely intertwined tends to obscure the significance of the corporation as an institution in its own right. The corporate charter is a social invention created to aggregate private financial resources in the service of a public purpose. It also allows one or more individuals to leverage massive economic and political resources behind clearly focused private agendas and to protect themselves from legal liability for the public consequences.
Less widely recognized is the tendency of corporations, as they grow in size and power, to develop their own institutional agendas aligned with imperatives inherent in their nature and structure that are not wholly under the control even of the people who own and manage them. These agendas center on increasing their own profits and protecting themselves from the uncertainty of the market. They arise from a combination of market competition, the demands of financial markets, and ef ...more
Source: http://www.thirdworldtraveler.com/Korten/RiseCorpPower_WCRW.html
Answered by commonsense, 30 Jun '12 05:04 pm

 
  
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6.

In the first place America is not run by corporate. Like any other nation it is run by its duly elected government. The law of universe is that everything that goes up has to come down and what ever is down has a potential to go up again. This applies to economics as well. A nation that grows economically will have a limitation for its growth. After reaching a peak it will start sliding down and depending on how efficient the society and government are in handling the situation, downturn will get checked and the recovery will take place. Normally in the past every nation used to pass through an economic cycle lasting about 7 years between each cycle. At the time of economic downturn, corporates and government take steps to check the slide. So just like, if there is high tide in the sea there will be ebb, or if the sun rises it will set only to rise again, so is the case with economy.... it will have its ups and down. When the down turn takes place people have the option to sit back an ...more
Answered by Shyam, 29 Jun '12 11:24 am

 
  
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