Analysis of Issue - Please provide feedback!

[sbiswas]

Hi,

 

Any feedback on this would be very helpful and greatly appreciated. Also, if anyone can estimate a score out of 6, that'd be great too.

 

Thanks!

 

Prompt:

"The desire of corporations to maximize profits creates conflict with the general welfare of the nation at large."

 

 

Discuss the extent to which you agree or disagree with the opinion stated above. Support your views with reasons and/or examples from your own experience, observations or reading.

 

 

My Response:

 

 

In recent history, the role of corporations in the economy has come under scrutiny. Many believe that the desire of corporations to maximize profits creates conflict with the general welfare of the nation at large. Although accurate, there is also an opposing view that needs to be considered. The benefits of the profit maximizing nature of corporations, as well as the disadvantages, should both be understood in order to strike a balance for general welfare.

 

 

First, let us look at the disadvantages of corporations' desire to maximize profits. The clearest problem arises as a conflict of interest. A profit maximizing corporations main interest is to generate the largest sums of money possible. If the way to do that is not aligned with societal good, the corporation will choose the profit maximizing route. For example, a weapons manufacturer would benefit from the country going to war, which might not be good for the general welfare of the nation. Similarly, banks would benefit from credit card holders not being able to make payments, as they would be able to collect additional interest, even though this could lead to more debt for the average person. Furthermore, a possible negative outcome could be greater inequality, as rich executives of corporations get handsomely compensated for maximizing profits, while the average person does not see their wages rise much. So, a corporation's behavior can be detrimental to society, and it can be understood that any benefit it provides to society would be as a "side effect" of the corporations profit maximizing plan.

 

 

However, the opposing argument is that corporations are the epitome of capitalism. If we suppose corporations did not behave in a profit maximizing manner, we would have to reject our capitalistic ideals as a nation. In a capitalistic society, money is seen as the ultimate measure of value, and all those in this society are seeking to maximize their value. When a corporation maximizes its profits without regard for the general welfare of a society, it sets itself as the "bar" for other corporations and individuals to reach. This creates competition and incentives in the society, which push each individual and corporation to achieve to their highest ability. Eventually, this leads to a productive society where everyone is highly motivated. For example, the automotive industry's adoption of technology has resulted in loss of jobs for many people. However, it has also provided a benefit to society where American cars are now manufactured faster, have improved safety, are closer in quality to imported cars, and are easier for the average household to purchase due to lower costs. A corporation that is maximizing profits versus one that is not will be able to make a better product and more money that can be beneficial to society. Consider a large corporation and a small non-profit charity. It is very conceivable that a large corporations single donation could be more effective than the charity's years of work. The corporation's profit maximizing nature allows them to make a large donation.

 

 

In conclusion, corporations' profit maximizing behavior can be detrimental to our society, but they display the ideals of capitalism and can provide significant benefits as well. Both the pros and cons need to be considered together as they are linked: society cannot reap the benefits that only corporations can provide due to their large profits, without withstanding the harm they cause as well. If balanced properly, corporations can be hugely beneficial to society, and thus should not be unilaterally dismissed as conflicting with the general welfare of the nation.