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 e

The current economic model requires corporations to maximize profits in order to survive. However necessary for their survival, maximizing profits creates conflict with the general welfare of the nation. When companies are sufficiently relevant, they can increase prices to the desired level and cause an impact on the living standards of the population. In addition, the levels of production practiced nowadays cause environmental pollution that decreases the quality of life.

Firstly, in the absence of competition, firms can easily maximize profits by increasing prices. Despite the competition laws that forbid cartels in most countries, this type of agreement is still present in many sectors of the economy. By forming cartels, firms can control the prices of goods sold and increase revenues. The costs of living of the general population may be substantially augmented by this type of organization, thus reducing the general welfare.

Secondly, large corporations usually make great damage to the environment, and are often noxious to the quality of life in nearby areas. New environmental laws that require pollution control have been passed in recent years, however the harm caused to the nature is still high. Implementing the measures required is expensive and firms try to avoid doing it.

Finally, the increase in profits in large corporations leads to the enlargement of wealth of a minority of the population, that keep leading positions in such companies. The moves usually made by a firm to maximize its profit are in conflict with the interests of the majority of people, that will see an increase in prices and a decrease in the quality of life.