Trainman News

Public Disapproves Fondly of Big Biz Corporations Fare Middling Well in Survey

ANN ARBOR, Mich.—The public looks at Big Business with a critical, but at the same time appreciative eye, and draws conclusions from this evidence that seem measured and balanced but betray a somewhat dim appreciation of the factors involved.

A survey conducted by University of Michigan Survey Research Center, with $50,000 from General Motors, shows 76 per cent of the people contacted throughout the country felt that the good outweighs the bad. (GM is said to have made no attempt to influence direction the report would take.)

But the good the report designates as part of the "widespread appreciation of the good effects of large corporation enterprise" sounds much like a list of accomplishments of trade unionism! Here are some: "Hires lots of people," provides pensions and security, pays high wages and improves working and living conditions of employees—all, says the report, as part of Big Business' role as employer!

It makes a trade unionist think of the Pullman strike, the Pittsburgh Little Steel riots and slaughters, the tough battles in the auto industry when the CIO Auto Workers were getting started on the road that led to pensions and security.

The public felt that there should be more rather than less control of business by national and state governments and that both Big Business and labor unions now exert too much influence on economic affairs.

This university survey unit has been operating since 1946 and is best known for its annual surveys of consumer finances for the Federal Reserve Board.

A report in the WALL STREET JOURNAL says:

"Big Business was found to have gained public acceptance because of the employment it has created, its effectiveness as a mass producer, its development and improvement of products, and because of the miscellaneous public actions such as payment of big taxes and support of education and community welfare."

That the feeling about tremendous tax payments is on thin ice and ready to fall through is evident from the articles published in TRAINMAN NEWS by the PUBLIC AFFAIRS INSTITUTE in which it was shown that the little guy is hit much harder than Big Business.

Support of education and community welfare bear heavily enough on the individual that it cannot be considered a decisive feeling in the generally favorable attitude of the public toward Big Business.

In the survey, only 10 per cent thought the bad outweighs the good, and rest of those interviewed either had no opinion, considered it a standoff, or declined to state an opinion.

Those who felt Big Business had an adverse effect on society said it has too much power, has not made satisfactory progress in management-labor relations, and has made higher profits than necessary.

Seventy-one per cent believed also that Big Business could sell its products for less and still make adequate profit—only 18 per cent felt that prices couldn't be lower and still give a fair profit.

General expectations from the public indicate a belief that government will take a more powerful rein on influence, while unions and Big Business experience declining power in about 20 years.

Fifty-one per cent feel that the government now holds the most power, but 62 per cent believe the government should hold the dominant role.

Chief criticism leveled at Big Business was toward its octopus effect on competitors and small businesses, resulting in "squeezing out the little man."

Other complaints: too much power on price fixing, keeping consumer costs high; it has failed to consider rights of workers and is therefore responsible for management-labor problems, unrest and strikes.

A summary of the survey was made by the research center, reports the WALL STREET JOURNAL:

"The general picture seems to be one of level-headed recognition of the tremendous advantages accruing to the country as a result of Big Business' accomplishments but this by no means implies satisfaction with all aspects of Big Business activity.

Severe criticism in several areas of business functioning existing side by side with the recognition of the overall worth to the country."