-Caveat Lector- >From SalonMagazine.CoM [ T H E_.R E L U C T A N T_.C A P I T A L I S T ]________ Exxon-Mobil: Bigger than Monica? <Picture: Money image> WHILE THE MEDIA AND CONGRESS BLATHER ABOUT THE CLINTON SEX SCANDAL, THESE FORMER COMPETITORS JUST CREATED THE BIGGEST CORPORATION IN THE WORLD. - - - - - - - - - - - - - - - - BY HEATHER CHAPLIN For anyone still wondering why the American public wishes Congress and the media would stop obsessing about the Clinton sex scandal, the answer lies in the $80 billion Exxon-Mobil merger story. While newspapers, network anchors, talk shows and Congress endlessly blather about Monica Lewinsky, they are underplaying one of the biggest stories of the century: An incredible year of merger mania, culminating in this week's Exxon-Mobil deal, creating the largest corporation in the world. Something similar happened 100 years ago, when the country was poised on the brink of industrialization and a select few were becoming richer than God. The titans prowled the land like great dinosaurs, devouring everything in their path, molding the country into its 20th century form and becoming so powerful that the government had to rein them in. On the verge of the 21st century, the big boys are once again getting bigger, but so far there's little response from government or the media. With combined revenues last year of $203 billion, Exxon and Mobil will become the world's biggest corporation, booting General Motors -- with its paltry $166.4 billion annually -- into a forlorn second place. It's the biggest merger in history and it comes at the end of a year of big mergers. There was Traveler's Group and Citicorp's $70 billion deal, BankAmerica and NationsBank's $60 billion arrangement, Daimler-Benz and Chrysler's $40 billion plan and Worldcom and MCI Communications' $34 billion engagement, not to mention the AOL-Netscape deal, which is shaking up the Web. And those are only a few of the more prominent corporate marriages. The Federal Trade Commission, which must grant approval for all mergers above a certain size, says there were 4,575 merger proposals to be reviewed this year, valued at a total of $1.44 trillion. Fifteen years ago, those numbers were 903 and $80.6 billion respectively. Even if you go back to the last merger peak in 1987, the numbers are 2,170 and $577.9 billion, about half of what they were this year. (It's worth noting that the FTC's budget for handling merger reviews has remained essentially flat since 1991.) When a corporation becomes as big and as rich as these new Goliaths, it garners an extraordinary amount of influence in terms of determining consumer prices in its industry, squashing smaller competition, setting a political agenda and even influencing the direction in which the culture moves. But while that chain of influence is common knowledge, it's not sufficiently part of the common discourse. Most reporting on merger mania focuses on business culture (if I read one more story speculating on how two CEOs' personal management styles will gel, I may vomit) not the public interest. I would think, as a nation, we'd resist big, faceless entities having such enormous power. Isn't that why socialist countries, with their centralized systems and lifetime leaders, have such a bad rap? Isn't that why our politicians keep declaring war on big government? But mega-corporations don't seem to inspire the same distaste. I guess all those cute logos and catchy tunes really work. Or maybe it's the fact that many Americans have hooked their fortunes to these corporations through individual stocks, 401K plans and retirement funds. Flush with virtual wealth, we're willing to see a friendly face instead of a ruthless business venture, forgetting the good times may not always last. Or maybe it's the millions corporations are pumping into the political arena. It's a crude measurement, but according to the Federal Election Commission, businesses gave a total of $84 million in soft money to politicians last year. The New York Times has put that number at $115 million in the last 18 months. For comparison's sake, individuals gave $29.5 million and labor unions gave $3.5 million, according to the FEC. Then there's lobbying. Mobil and Exxon together spent $10.5 million on lobbying efforts last year. But that's a drop in the ocean considering the total amount spent influencing legislation last year was estimated at $1.2 billion, according to the Times. Fourteen of the 25 most influential lobbying groups on Capitol Hill represent business interests, according to Fortune magazine. (Some others are the Christian Coalition, the NRA, the National Right to Life Coalition, the AFL-CIO, the Association of Trial Lawyers and, sitting on top of the heap, the American Association of Retired Persons.) Add to the picture that voter turnout has essentially been on the decline since the 1960s -- turnout for the last presidential election was the lowest since 1924 -- and you can almost feel the scales tipping. The bottom line is that private, citizen power is diminishing while corporate power grows. SALON | Dec. 4, 1998 Heather Chaplin's Reluctant Capitalist column appears every other Friday in Salon. ~~~~~~~~~~~~ A<>E<>R The only real voyage of discovery consists not in seeking new landscapes but in having new eyes. -Marcel Proust DECLARATION & DISCLAIMER ========== CTRL is a discussion and informational exchange list. Proselyzting propagandic screeds are not allowed. Substance�not soapboxing! These are sordid matters and 'conspiracy theory', with its many half-truths, misdirections and outright frauds is used politically by different groups with major and minor effects spread throughout the spectrum of time and thought. That being said, CTRL gives no endorsement to the validity of posts, and always suggests to readers; be wary of what you read. CTRL gives no credeence to Holocaust denial and nazi's need not apply. Let us please be civil and as always, Caveat Lector. ======================================================================== To subscribe to Conspiracy Theory Research List[CTRL] send email: SUBSCRIBE CTRL [to:] [EMAIL PROTECTED] To UNsubscribe to Conspiracy Theory Research List[CTRL] send email: SIGNOFF CTRL [to:] [EMAIL PROTECTED] Om
