The recent scandal involving UnitedHealth care CEO Luigi Mangione, culminating in his arrest at a McDonald’s, has reignited discussions about the role and impact of corporations in American life. While criticism of corporate greed is nothing new, it raises an essential question: Can life in America truly function without corporations?
Just think about it: millions of Americans have pensions and retirement funds tied to these corporations, meaning their financial futures are directly linked to corporate success. This interconnectedness makes the discussion about corporate accountability far more complex.
One example to make things clearer is the fact that during COVID, the best way for the government to keep the economy in motion was through the stimulus check and paychecks protection program (PPP). This was what many called corporate welfare. One happened in 2008 after three bloody housing crises. I was in Ghana then, but the news of this melt down reverberated around the world.
The government knew for a fact that in issuing those credits, people would go straight to corporate America and spend it. You might ask, how? You see, Amazon stock, which was trading at around $700 per share, went to over $1,500 overnight. While brick-and-mortar stores were closed, Amazon was open 24/7. The same is true for Costco, Walmart etc. Small businesses that weren't corporations and hence disappeared. A mom-and-pop store was not a corporation; hence, they couldn't survive either.
As I reflect on this from a newly opened McDonald’s store in town today, I’m struck by the duality of corporations in everyday life. I didn’t come here to eat, as I rarely frequent McDonald’s due to concerns about the nutritional quality of its menu offerings. Instead, I came for something far more basic—a restroom. This reliance on corporate infrastructure, even for the most mundane necessities, highlights how deeply embedded corporations are in our lives. While corporations provide convenience and infrastructure, their profit-driven motives often come at a significant cost. United Healthcare, for instance, has been criticized for prioritizing profit over patient care. The denial or delay of insurance claims has led to countless tragedies, with families losing loved ones due to life-saving treatments being deemed too costly. This relentless pursuit of profit, while beneficial to shareholders, often leaves ordinary people to bear the consequences.
Corporations in America hold immense power, rivaling that of individuals and even governments. They enjoy rights akin to personhood and wield influence that often shapes policy and public discourse. Their symbiotic relationship with the government is undeniable. Take, for example, the flock of CEOs visiting Donald Trump at his Mar-a-Lago estate before he assumed the presidency. These meetings underscore how deeply intertwined corporate interests and political leadership have become.
The word “corporation” itself comes from the Latin word “corpus”, meaning “body.” It’s a reminder that a corporation is not a single entity but a collection of interests, stakeholders, and motives. This “body” sustains America’s economy; last year, the U.S. GDP exceeded $25 trillion, much of which can be attributed to corporate activity.
As president-elect, Donald Trump exemplifies the corporate-political dynamic. A businessman first and a politician second, Trump has rarely, if ever, criticized corporate greed. His understanding of corporate America's role in driving the nation's economy is evident. Corporate America is not only the backbone of the economy but also the largest employer of the American workforce.
Yet, the question remains: How can corporations balance profitability with social responsibility? Young people, in particular, are calling for change. They envision a world where corporations operate ethically, putting people before profit. However, achieving this balance requires systemic shifts in how corporations are regulated and how they view their role in society.
The story of corporate America is far from over, and as a nation, we must navigate its complexities. While corporations are essential to the fabric of American life, their unchecked power and profit-driven motives demand scrutiny and reform.
Yours in observation,
Ronnie
