Scam Nation

Not very long ago, an American company was founded upon its quality products and reliable service. A business that lost the consumer trust would not last long. Government regulations on business practices were strictly enforced. We understood the threat a private corporation posed to the public if it was allowed to become too large.

Perhaps, the most well known example of this was when the american government ordered the Bell Telephone Company to break up into several smaller companies. The reasoning for strict government regulation was to protect free enterprise and the growth of a competitive market.

Today, the size and power of some American companies dwarf that of the Bell Telephone Company. Some have even argued the pyramid scam has become the new corporate financial model in America. Gross misuse of investor funds by financial institutions would have once landed guilty parties in federal prison. Today, they get government bailouts. What will be the result if our laws governing corporate business practice continue to be ignored?

Unfortunately, the current state of our economy suggests the issue of bloated corporations and rampant greed is a self correcting problem. One could argue corporations have fallen victim to their own advertising. There is a ceiling on how much a product or service is worth to the consumer. The consumer pushes back once this point is exceeded.

The most famous example of this regarding over taxation was the Boston Tea Party when the people dumped all the tea arriving from England into the Boston harbor. Today, millions of Americans regard working 40 hours a week only to have nothing left over after taxes and living expenses no different than being unemployed.

Those with valuable skills have opted to work for themselves in their community rather than work for an employer’s low wage . Others have simply dropped out of the work force to live off government assistance. These are examples of public backlash and why we have laws governing corporate business practices. When taxes on a people exceed the cost of living the economy suffers as a result.

Price gouging in times of crisis is a punishable by law. We are typically, reminded of this after natural disasters. Cable companies are charging as much as $200 a month for television. Even those who can afford it question the logic of spending that much for entertainment in a distressed economy.

Being overcharged for bad television and after-midnight infomercials may not be a crime. But cable companies also provide our Internet services. Most employers now only offer online applications for employment. Government agencies typically offer online assistance as an option to sit on hold for as long as 2 hours waiting for an operator.

Many resources we need for college course require access to the Internet. People are literally ashamed to admit how much they pay monthly for their phone plans. We are beginning to see more people sitting in coffee shops and even fast food locations logging in to the Internet rather than being overcharged by their current Internet service providers.

In this time of economic distress, perhaps it is time for our government leaders to dust off those old laws governing business practices. As mentioned earlier, this is a self-correcting problem. On sinking ships it does not matter how wealthy you are. The dead weight is tossed over the side first.