Another example would be financial companies. Their primary focus is not the financial well-being of their clients, but rather the financial well-being of the shareholders. This is why Goldman-Sachs and others had no qualms about causing the economic catastrophe that has nearly destroyed this and other countries. By offering investments they knew to be toxic, they earned a return for their shareholders while simultaneously stealing wealth from those whose investments they had contracted to protect.
So who are these mysterious shareholders? Why, it's you and I! At least, that's the party line from Wall Street. "If you have a 401(k) that invests in mutual funds," they say, "your money is likely invested in many of these firms. We do this for you! We do this so you can profit!" This, however, is pure Wall Street BULL!
According to Professor G. William Domhoff from the Sociology Department at the University of California in Santa Cruz, the true numbers tell a much different tale. When it comes to financial securities, the top 10% own whopping 98% of the investment wealth in America! They also own 93% of the business equity and 81% of total stocks and mutual funds! All this while the bottom 90% holds 73% of the total debt in the country! (These figures, by the way, are from 2007 - BEFORE the financial crisis! They are no doubt much worse now!)
Board members and top executives are routinely paid "stock options" in addition to salaries. This is often used to hide the true wealth of the ruling class. Frequently we will hear a CEO brag that he has lowered his salary when in fact he is still being paid in stock. Securities and Exchange Commission regulations require that any large trade by an officer of a company be disclosed publicly. This is designed to prevent insider trading. Corporate executives often own millions of shares of stock in their companies.
When corporations say "We did it for the shareholder!" who are they talking about? It sure isn't you and I! When companies cheat, swindle, pollute and wreck communities and the environment, we the people do not profit - we lose! It is only the directors, chief officers and major shareholders who profit. When Exxon or BP dumps oil in our waters and refuses to spend the money to clean it up, the top executives profit. When insurance companies refuse to pay on claims they are contractually obligated to pay on and the patient dies, the top executives profit. When the banks take your home and throw you out on the street, the top executives profit.
Capitalism can only continue if the many are convinced that the system is working for them. The perpetuation of corporate myth and propaganda is vital to its continuation. Slowly, however, the populace is awakening to the cold, stark reality of capitalism and plutocracy. As citizens around the country take to the streets, it becomes more and more obvious that this system is no longer working, that capitalism is simply not sustainable. The scales have been tipped so far in the favor of the 1% that the privileged few can no longer conceal the lie. We the people are awakening.
It is time to sacrifice the sacred bull.
