Geopolitics since World War II has increasingly been defined by global trade and by extension, multinational corporations. As they have escaped national boundaries, governments have become acquiescent to their desires with “Free” trade agreements, favorable regulations and protective laws. More recently, the arrogance of these institutions has been to take on the role of government itself. Corporations make their own laws, hire their own armies, declare war, prosecute criminals, and generally do whatever they want in pursuit of their never ending goal of more.
There is however one power that has remained uniquely a function of government — the creation and management of currencies. It is the government’s most safeguarded and powerful tool, even more so than military power, because it affects all transactions within an economy. Granted, companies already try to influence monetary policy by promoting a cheap dollar, but they lack direct control over the issuance of currency. It is naive to think that companies will allow governments to keep control over the currency without attempting to privatize this power. We are already seeing corporations attempt to gain control over the money in circulation by encouraging consumers to use their alternatives.
The benefits of printing your own money is obvious to everyone. If corporations can implement a system where employees are paid in an alternative currency they control, they could create “value” out of nothing, a benefit currently enjoyed only by the government. Of course, as we all know, the corporate power structure wants all power for itself. What better way to increase power than to privatize money?
Right now, the dollar is still king. Companies want you to invest in their Amazon Coins and Microsoft Points because once they have your dollar, it can be immediately invested to yield higher returns. In exchange, you get a promise for a product that will (on average) be delivered at a later date. There will come a time however when alternative currencies become more competitive and offer more than ease of use and small discounts.
Corporations are already experimenting with non-dollar compensation. Examples include payouts from electronic debit cards, stock options and other forms of non-cash compensation. Stock can be created out of nothing, as can other cheaply produced company products. Imagine what they could do with their own currency unhindered by government rules.
True, that may still be a while off, but corporate power is wasting no time finding acceptable substitutes that allow them to skip a little off the top.
The July issue of Time Magazine has an article titled Nickeled, Dimed, and Dollared to Death: Fee-Laden Payroll Cards Forced On Low-Wage Workers. In it, they describe employer attempts to digitize as much of the currency as possible, using fees to skim more off employee earnings. They write:
So-called payroll cards, a kind of prepaid debit card… are increasingly [used] to pay low-wage workers rather than cutting checks or direct deposit. In this market, combination of minimal competition and employers who are unwilling or unable to demand fewer fees for their workers, has created a product ripe for exploitation. Employees are often automatically enrolled in payroll card programs and forced to jump through bureaucratic hoops to opt out, as the New York Times recently reported…
In June, Natalie Gunshannon, a former McDonald’s employee in Pennsylvania who had been earning just over the minimum wage of $7.25 an hour, filed a class-action suit against the franchise owner, claiming she was required to take her pay via a JP Morgan Chase prepaid debit card that was loaded with fees, according to Philly.com. According to the complaint, the fees included a $1.50 charge for ATM withdrawals, $5 for over-the-counter cash withdrawals, $1 per balance inquiry, 75 cents per online bill payment, and $15 for lost/stolen card.
As competition becomes less intense (as is always the case with multinational corporations), alternative methods of payment such as these will become more common. Some companies have even gone as far as trying to pay employees with store gift cards. The intent is to create a closed loop of consumer spending, whereby wages are spent on the employer’s products.
Wal-Mart has already attempted to offer employee pay in the form of Wal-Mart Gift Cards. While the program was entirely voluntary, it did result in a lawsuit. From Reddit:
The Mexican Supreme Court of Justice on Thursday ruled that Wal-Mart de Mexico may not pay employees in part with vouchers redeemable only at its stores. The court nullified the employment contract of a worker who challenged the voucher payments, finding that they violated Article 123 of the Mexican Constitution, which guarantees the right to “dignified and socially useful work.”
Getting other companies to accept Wal-Mart gift cards as payment would be difficult, but not impossible, especially in areas economically isolated and dependent on the chain store for its local economy.
Regardless, it’s clear corporations want the ability to control money in its digital form so they can move it around and invest it for easy returns, but they won’t stop there; ultimately they want to control the volume of their fake currencies, allowing them to transmute it into forms of real wealth more easily.
Much has been said on the ability to control the volume of money in an economy. President James Garfield said, “Whoever controls the volume of money in our country is absolute master of all industry and commerce.” Supposedly, historian and writer Hugh Thomas once said, “Money supply is labor supply… To control money is to control life.” I could go on, but clearly, money power is the ultimate power and those who seek it will inevitably demand a share of that pie.
