The upper class has always built pillows of deceit, by taking advantage of the blue-collar workforce, for something to fall on when their corporation flops. They even go so far as describing themselves as businesses, as if they were some poor start-ups with no power at all. Well, poor them, because clearly 600 Billion dollars a year is not enough to make ends meet.
In business, precedent is everything. It’s not always about historic ideologies, but a generic model helps corporate officials function sustainably. A study found that 5% of businesses never lost their profits, other than basic cuts, in the pandemic, not because of their persistence to the law, but because their IRS records were completely clear, and those very businesses were able to retain more employees, on the same pay through 2020.
Read more: How Businesses Have Shifted Focus to Survive the Global Pandemic
For Democrats, Corporations are an antagonist in a movie where conservative funding outlives people-centric grass-roots fundraising. Even though 80% of this funding goes to community building and social welfare, such as in Police training, special curriculum needs, and other such programs, it fades into “woke supremacy” and other such terms undermining present-minded people.
President Biden has no doubt been very vocal about his aim to bring down the poverty line even further and make sure the working-class has as good a chance at life as rich Americans who pay fewer taxes than their fair share.
Biden’s economic plan proposes to bring the top “individual federal income” tax rate from 37%(under Trump) to the pre-Trump rate of 39.6%. It proposes nothing new than forming an equitable profit contributing to any American Infrastructure Plan, the white house and congress were to decide upon. Now, Biden’s plan is in stark contrast to economics, but this defiance is not necessarily dire.
Read more: What does a President Joe Biden mean for the world?
Biden’s policy benefitting America?
The Trickledown effect in economics refers to the practice of Tax breaks and compensations for the wealthy, especially corporations, to benefit the lower classes. And as ridiculous as that may seem, it’s true. Economics argues that investors, businesses, and corporations are the real operators of the economy, and their power, above all, shows monetary stabilization.
However, like all effects, it too bases the theory on stable and ideal environments, and I can tell you, with a Pandemic, and racial inequities in almost every part of society, no theory applies ideally.
Read more: America faces not one but two pandemics
Over the past 10 years with varying administrations, America has seen its tax returns fluctuate greatly. The policy also expects the rich to take responsibility after their tax reductions and help their workers, no matter their pay grade. And let’s be honest, corporations have very little experience in being helpful.
While many might not see him as a very progressive leader, but Biden’s proposed economic plans are no less than a fortune for the Treasury. A treasury, which under the leadership of Secretary Yellen sees itself at crossroads with a former Fed chair and an enforcing economist whose statements really do change market structures.
Yellen, earlier this month suggested the hike in interest rates to curtail monetary debt is already overburdened by the hazardous and haphazard policies of the previous administration.
Read more: Op-ed: Trump’s dark era, will Biden’s be any different?
Stabilizing American economy
Corporate responsibility has been essential in autocracies around the world. Some argue that it is because of the fear of strict government action, while others suggest their goodwill. And although the latter may seem outrageously ridiculous, it’s not. The benefits, in their case, outweigh the risks. They have supply chains that are mostly untraceable, so no IRS, no audit, and most certainly no quality reviews.
It is beyond dangerous the damage done to law and order, by companies and corporations who feel their reckless actions have no consequences. That does not work here because we have a constitution that fairly treats companies as well as human beings, which is fine and all, except for the part where loopholes are dug out, only to take advantage of those very laws, setting a very dangerous precedent.
Read more: Can Biden repair American power?
Biden’s economic plan would help stabilize the economy by helping the rich pay for the American agenda because having it both ways is unattainable. It would not abolish Corporate personhood”(the term used to describe the authority and rights given to corporations by the 14th Amendment), as many polarizing economists might add. Rather, it would help restore confidence in consumer and employee value, and not auto-generate the revenue for these upper-class people.
The load on the Securities and Exchange Commission (Securities and Exchange Act of 1934) would also dramatically decrease, which is definitely needed after crises after crises of market manipulation by these very “poor corporations”, who strive to make a living while paying $7.25 an hour to people who should earn twice as much in half that time. What a country!
The author is the Head of the Department for Social Sciences at TMUC, Pakistan, and an economist specializing in Newtonian Gravity Model Economics. She can be reached at sarinashirazi5@gmail.com. The views expressed in the article are the author’s own and do not necessarily reflect the editorial policy of Global Village Space.