November 14, 2012

Crony Capitalism Or Socialism

If we want to stop our drift towards socialism, protect free markets from crony capitalism.

There is a struggle going on between crony capitalism and socialism. Crony capitalism is a colloquial word for oligopoly. Control over industries in our economy is becoming more centralized everyday. As this happens power, both monetary and political, is becoming more centralized. Our markets are becoming less free and the economic playing field is skewed in favor of the oligarch.

As this centralization of power and wealth is occurring, government can step in and try to "equalize" the playing field by either creating more social programs for the needy or better regulate industries so they are not dominated by crony capitalist. Since the depression of the 1930's the government's tendency has been to create more social programs.

This country was founded on the principle that everyone is born with the right to life, liberty and the pursuit of happiness. Our forefathers decided the best economic model to reach these pursuits was capitalism. Free markets were chosen to best attain the nations economic objectives. Capitalism is here to serve society. Society is not here to serve capitalism.

Early settlers were less concerned about government over-regulating markets then about devious suppliers trying to control markets. When a conservative today complains about the destruction of free markets he is condemning the government saying it is over-regulating the markets and not allowing them to operate effectively. The damage caused by regulations pales to the damage caused by markets taken over by oligopolies and oligarchs. This trend of blaming governments over regulating is increasing as the oligarchs gain political power through the Supreme Court's decisions on Citizens United.

If we want to slow down our drift towards socialism, we must protect free markets and capitalism by enforcing anti-trust laws. Oligopolies are prevalent in our economy today including, banking, financing, cell phones and others. This decision is not contrary to the ideal of cutting regulations where it makes sense. Below are the results of a study done in 2011 by Pew Research showing a trend indicating a slow shift in positive feelings towards socialism versus capitalism in our society.

12-28-11 #2

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