Large corporations are the problem, but they are also the solution. Corporations, though, do what the stockholders want them to do. Because the current system today involves so many complex securities rather than direct stock investment, often the stockholders have no idea what they are actually investing in and they have no idea what is going on beyond the stock price and, at most, the current quarter's earning's report.
This is not a recipe for a well-run business, this is a recipe for a corporation devoted entirely to short-term profits at the expense of actually growing the business.
Until shareholders are actually able to see where their money is going and have some interest in the corporations themselves, until they are able to come to annual meetings and point out that shutting down plants and moving production overseas is not good for long-term profits and that when corporate officers vote themselves enormous severance packages that it encourages them to leave, this will not change.
--scott