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Tuesday, November 26, 2013

Crony Socialism is destroying our society

(from Wikipedia) Crony capitalism is a term describing an economy in which success in business depends on close relationships between business people and government officials. It may be exhibited by favoritism in the distribution of legal permits, government grants, special tax breaks, or other forms of dirigisme.[1] Crony capitalism is believed to arise when political cronyism spills over into the business world; self-serving friendships and family ties between businessmen and the government influence the economy and society to the extent that it corrupts public-serving economic and political ideals...       In many cases, the term is used interchangeably with corporate welfare.   

You who support "'friendship' capitalism" are giving critics of capitalism, including socialists and other anti-capitalists, the ammunition that they need to help destroy the free market. You cannot sustain manipulating supply and demand economics. Everything will eventually come back to equilibrium. It will happen outside of existing market dynamics and past history shows that this is what happens. It happened in the Soviet Union with black markets, when people didn't want to wait in lines to get rationed essentials. It happened during the Nixon administration when they tried to institute price and wage controls and inflation started spinning out of control. It is happening now with the gyrations of the housing market and most commodities as the "Too Big to Fail" Banks have been given trillions for virtually free to invest and manipulate markets and are causing our economy to fail.

There are these people in our American society that sit on the fringe of the Republican party who are very intolerant of others. They want to fight everyone and everything. They don't want to personally fight. They seek to have vulnerable people do their fighting. They aren't going to negotiate and build a consensus about anything. They seem to believe that they are 100% in the right and somehow moderating their position to try to move issues forward is always deemed to be a taboo "Compromising of Principles".

At the same time these self described "Patriots" complain about the cultural division in society, they go right along with creating these labels. Real Patriots don't beat their chest. They act. These simplistic labels play right along with those who want to divide and conquer our society. These people are the ones who want to label any Democrat as a socialist. Of course that kind of rhetoric is non-constructive and keeps anything political from moving forward. They are so blinded by their prejudice that they fail to recognize that there is socialism on both sides of the political spectrum.

The leftist socialist paradigm is communism. The rightist socialist paradigm is fascism.  The Communist ideal focuses socialism upon the worker, while the Fascist ideal focuses a social agenda upon  Consolidated Corporate structures being controlled by and through the governmental structure. In a Fascist system, those who control the corporations control the government. A government of, by, and for the corporations.

Communism doesn't work for the same reason that Pure Democracy doesn't work. There has to be some form of representation of the people (workers) and that leads to power structures, so then the reality becomes about those in the power structure and not the workers. Those on the extreme right dismiss any of the marriage between the State and Corporations as just good business and they allow it to run a muck through their perverted ideal of laissez faire economics, which is not, never has been and never will be the reality.

I believe in the free market (free enterprise), but there cannot be a free market without rules. The rules have to be instituted and obeyed by everyone. This might seem to be conflicting, because any rule making/enforcing organization is governmental by nature and the ideal free market system has as few rules as possible.  Rules need to be as simple as possible and wholly enforced. We need to be as Libertarian as possible, while understanding that rules and justice ensure trust.

What we see now is a completely convoluted system of rules that are arbitrarily enforced. There is a lack of trust in our economic structure. We have become a nation where "the elite" take precedence over the law. Those in power have created barriers to entry through this complexity of regulations that keep start-up entrepreneurs from entering the system. This is the reason we have seen a stifling of creativity, innovation and entrepreneurship. These Corporate socialists want to limit competition and filter everything through their system of control. This is what keeps them in power and the rest of us under their thumbs.

If we are to move forward there has to be a leveling of the playing field. We are operating in a culture of corruption. If we don't immediately institute rules to bring back a system based upon merit, then we are going to see a complete economic collapse. Look! the signs of this implosion are all around you.

1 comment:

Harry Hipps said...

I agree that socialism is equal misery for everyone. But I have to grind my axe here. Top down central planning doesn't give us prosperity it just mitigates some of the worries we have. The influential still get preferential treatment, they just use the gubmint and the rules to get their way. The poorest people have little incentive to strive harder, because they get a subsistence lifestyle guaranteed. And the middle class is hampered from upward mobility due to the onerous regulations and obstacles put in their way by the governing elites.

In a mostly capitalistic system (which we don't have anymore and haven't had for a long time), monopolies tend to crop up by the financial and market muscle that corporations and wealthy individuals can exert on the market. It is brought into balance over time by competition, technological advances, and structural change, but this can take time and sometimes a lot of rancor before the monopolies are broken up. In the mean time, you have to live with poorer products and services at too high prices until the market forces work.

So what is the bottom line and what is the best case scenario? Capitalism, and the progress and freedom it gives is the best way to go to allow the incentives we have to work for our own betterment. BUT, we have to have free people that will forgo the impulse to manipulate, cheat and monopolize their way into unfair advantage over others. And there is the rub.

There is no perfect system and no matter what system you have, if you don't have moral individuals to look out for the good of all, sometimes at their personal expense, we have injustices that lead to cries for "something to be done". Without the moral component our energies go into strife and unproductive activities and we all lose. This used to be called good character but how many really care about this now?