e the labor rights were essentially ignored. Another easy solution to minimize the firms operating costs is by eliminating valuable jobs. These sometimes massive downsizing satisfied the wealthy stockholders because the firm had lower production costs and higher profitability. “Investors often applaud the news of a layoff as a sign of corporate turn-around. The payroll is a large, ongoing liability to the balance sheet, and investors are titillated by anything that reduces it”, (Downs 14). History repeats itself as we see that wealthy investors and managers again behave in manners regardless of people’s needs. The forces unleashed by corporate executions and globalization have brought into the labor market thousands of unskilled job seekers with little or no income. A new underclass has of previously employed individuals has become a nationwide trend in our social and economic condition. These people are forced to take jobs within the service sector and these jobs typical pay wages that are lower then those of manufacturing jobs. These trends have formed a synergetic effect on the growing wealth gap between the rich and the poor. Conclusion In today’s modern economy companies do not have to worry about the United States government regulating the labor industries in other countries because of jurisdiction. The use of soft money in the United States government has proven that even at home corporations can freely advocate legislation that is favorable to their terms. This has had a profound effect on the income gap in American society. The wealthy possess financial resources that provide enormous opportunities to create more wealth. This need for excessive wealth is deeply rooted into the personalities of these individuals. In America, society considers the pursuit of wealth has a fundamental right of capitalism. The ethical boundary was crossed by the use of financial resources to victimize portions of society for ...
