CAPITALISM IS NOT CORPORATISM....GET YOUR FACTS STRAIGHT! I REALLY WISH PEOPLE WOULD TAKE THE TIME TO UNDERSTAND THIS....INSTEAD OF EATING UP ALL THE BULLSHIT THE MAINSTREAM MEDIA AND IGNORANT PEOPLE DISH OUT! Corporatism, one of the most misunderstood ideologies that so many people confuse with Capitalism. To help you understand why there is such a confusion, you must first understand that Corporatism is the economic side of Fascism, the social aspect of Fascism is where racism comes into it. In terms of economic Fascism it has several different names and this is perhaps the first reason for people confusing economic Fascism with Capitalism. There are three other names given to economic Fascism which are; Corporatism, Crony Capitalism and Monopoly Capitalism. In the United States of America, it was Alexander Hamilton, a Scottish American who had founded Crony Capitalism in the states. He was the one who created the first National Bank in the United States of America. The enemy of Alexander Hamilton was Thomas Jefferson, Jefferson was a Capitalist. Everything that Thomas Jefferson stood for would be considered what Libertarian’s in the United States support today, that is economic freedom and liberty from government. Alexander Hamilton as I explain was the opposite of Thomas Jefferson, he supported a big authoritarian centralized government, he wanted the centrally planned economy, the partnership between the government and the corporations. The big subsidies as well as high tariffs, all things of which Jefferson opposed. The term ‘Crony Capitalism’ is no doubt one of the biggest reasons for the confusion between Capitalism and Corporatism. It is very difficult to break down the popular conscious, to get through to people the differences and why Corporatism is not Capitalism. Corporations lobby government for more regulations and restrictions, these regulations and restrictions that are laid on all the smaller businesses hurts the growth of these smaller businesses. It restricts them in many ways, from how many workers they can employ, how much they can produce, how much they can own in quantity, even what gets produced. So they limit the smaller businesses making life difficult for them. By hurting the smaller businesses and limiting their growth, the big corporations that lobby the government can put themselves above their competition, giving them this competitive advantage. So you understand there is this partnership between government and corporations, working together in this partnership, you scratch my back, I scratch yours. It’s very important to understand where Corporatism derives from, but first I will explain the difference between the privatisation used under Fascism (Corporatism) and under Capitalism. Under Corporatism it is a government managed system. You have no doubt heard of the saying, “Privatising into the hands of the few” the reason things are privatised into the hands of the few, is because it is government management that privatises into the hands of the few. However, the most important note and the reason why this is not true private ownership, is because the so-called ‘private businesses’ are still controlled by government, because they are hit with high taxation and high government regulation. What people fail to understand is what power regulation gives government. The more regulation there is in the economy, the more power and control government has, the more power government has to dictate how you run your business. An example of these regulations could be ‘Price Controls’, ‘Quantity Controls’, or even ‘Quality Controls’. As explained, this gives government the power to dictate what you produce, how much you produce, the quality of your goods. The problem people have understanding is that government dictating what gets produced, what does the government know about what the people want? This should be left down to the free market, by what we call consumer demand. It is consumer demand that tells businesses what their most popular sold products are, this tells companies what to produce more of. The main problem however is the fact, when you give government the power to regulate what gets produced, you are limiting businesses options, therefore they become less creative and innovative. Regulation not only gives government the power to dictate, it is what puts production into the hands of government. People may like to think they are the ownership of production. The same thing applies to Socialism, you hear it all the time, ‘Public Ownership’ yet with high regulation, the government is the one dictating how much and what gets produced, these people are working for the government. The end goal of Socialism is a classless society, it’s goal is Communism. Corporatism, (economic Fascism) is complete state control over the means of production, because the government largely controls production through high regulation. So what about Capitalism? Well here is what pulls Capitalism apart. Capitalism is non government managed, there is no government managing or controlling your economy. The free market is about the separation of the economy from government. Sure, we have never had a truly free market economy, but what you will find is throughout recorded history, which the best example we could look at is the United States of America. Between 1870 and 1896, the free market was let be and government took the more stand off approach. The presidents of this time were more Capitalist minded, more like your Jeffersonian and Jacksonian type of presidents. It is also important to note that under Capitalism you would have a less to non regulated and restricted economy, more economic freedom to produce as much as you like, whatever you like, more freedom to trade. Not to forget, you wouldn’t have high taxation, under a free market the money you would earn, is your money. Therefore the business you own is your business, the only power government has under a free market Capitalist economy is to protect individual’s property rights, referring to the entrepreneurs. There is more freedom under Capitalism for business owners to employ as many employers as they like, produce whatever they like and however much they like. ..... There is another term for ‘socializing all the losses and privatizing the gains’ which is ‘Capitalism for the poor and Socialism for the rich’. What this basically means is, when the corporations make losses, the government is there to protect them. So what the government does, it steps in, forces the people of society collectively to pay tax. This money is then redistributed to fund the losses of these corporations. In other words, when the corporations make gains, they keep the gains, whenever they make losses, the tax payer is the one forced to pay for it. This is Socialism for the rich, because they are living for free off of what the tax payer is paying for. It is Capitalism for the poor, because the poor (tax payers) are forced to pay for their losses. This is a monopoly, because whilst they are making gains, they are becoming richer and because they don’t have to worry about the losses as the tax payer pays for it, they are becoming richer. Meanwhile the people of society, (tax payers) are becoming poorer. This is what we call the rich becoming richer and poor becoming poorer. Whose fault is that? Well it is the governments fault, because the government is protecting their losses forcing you to pay for it. This partnership between the government and corporations is creating that monopoly. So what splits this from Capitalism? Well, there is no such thing as government bailouts under Capitalism, no such thing as bailouts exist under Capitalism. Government protectionism does not exist under Capitalism. You see, when Margaret Thatcher limited government intervention in the economy in Great Britain and privatised, she done so to open up competition. Most importantly, this was to allow room for failure in the economy, to allow room for newer more efficient industry to come through. Failure is important in the economy because business owners need to learn from their mistakes. Taking government protectionism away like Thatcher did, creates more incentive for business owners to be more cautious over how they plan their finances. This would be their expenditure and income, ensuring that the business will not run at a loss. Whereas when you have government protectionism, it creates poor economic practice and this was the result of the Banking Crisis. Too many people do not understand the Banking Crisis, which is why they blame Margaret Thatcher for it, due to her deregulation. This is the reason why there is no government protectionism under Capitalism, so people have more incentive to plan, to be more cautious with their money, rather than being careless. Also, the failure teaches people a lesson they can learn from. We learn from our mistakes, it’s often how we progress. So the point is, under Capitalism if people are careless as business owners, they do not have the government there to subsidize them. They face liquidation whether they like it or not. So there is no such thing as Socializing losses under Capitalism. So that monopoly created through Corporatism is a result of government management again, controlling where the money goes, which is into the hands of the few. thescotandscotland.wordpress/2013/12/15/capitalism-vs-corporatism/ #capitalism #corporatism #socialism #government #freemarket
Posted on: Fri, 23 May 2014 15:50:25 +0000
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