Monday, February 15, 2010

Marx in the news

On february 1, 2010 there was an article in the Chicago Tribune with the title "Owners skeptical of Obama plan." The article presented the issue that president Obama brought up a plan that would help small businesses develop more in order to stimulate the economy.
The small business owners are in fact a little skeptical about this because the money that they should receive from the federal government is not going directly to them, but rather to big business. Small businesses express their hope to receive the aid necassary in the near future just as the president has in mind.
In my opinion, this article ties in perfectly with Marx's theory of a never-ending gap between the worker and the owner of a business. But could this be the case where small businesses can't catch up with big business in this poor economy? As the article says, Obama's plan includes $30 billion for community banks to lend money. But the problem still persists in that banks need to loosen up their lending policies.
Another point in the article is that the plan tries to stimulate small businesses to hire new workers. In return, the business will receive tax breaks and other benefits. But the problem is that a business owner will hire people if he/she needs employees. But if there is no need for extra labor, then the small business will not make new hires.
If they start to hire people only to receive a tax break, then the new employees will be paid for nothing. Their production isnt required at the moment, nor is their labor or time. As Marx puts it, in a capital society businesses pay people for the time they work, and not for the production. But I think the new Obama plan will make businesses hire people and not pay them for time or for labor. They will pay the new employees just to get the tax break. What do you guys think?

Here's the article:
http://www.chicagotribune.com/business/la-fi-smallbiz1-2010feb01,0,6538633.story

1 comment:

  1. In order for a small business to compete with a big business they probably need to take out a huge loan. The government isn't responsible for giving money to every business in America, that would be too expensive. Those big businesses that were failing, such as Ford, were vital to some city and state economies. The fact that the US gave money to businesses is stupid anyways.

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