On Capitalism and Corporatics
Has anyone around you ever said ‘those Government guys get paid too damned much?’ I know a lot of people in my family say it. What about ‘those corporate guys get paid too much?’ I have heard that one too. Lastly, some of my intertwined favorites, ‘The government really needs to crack down on those corporations’ and ‘The corporations have a grip on the government and it needs to be stopped!’
Crony capitalism is a phrase that is sometimes heard in the mainstream media, and is used in only one direction and without regard to the reason it happens in the first place. The ‘left’ uses it to decry how heavy the hand of politics is within the government sphere, most commonly, and they are right! Big Business has a lot to gain by lobbying for special tax perks written into the 20,000 page tax code, and for exceptions tucked away in hundereds of pages of unread legislation brought up 45 minutes before its voted on.
The problem with those who stick with this view is that it is generally they (or those otherwise convinced similarly,) believe our government should do so much (and more) regarding business. If business had little to no regulatory burden or other political gain, what would be the point of paying to send people to lobby?
Well intentioned groups demand subsidies, so why not get subsidies for yourself, or demand subsidies from a competitor be cut? Still other well intentioned groups, such as labor unions, demand to be treated ‘more fairly’ and to have signficantly more power in regards to ‘bargaining’ with their employer, so why not get those bargains altered in a more beneficial way, or to force your hand on your employee or get tax breaks or perks through the same regulatory channels Unions use?
Regardless of intent, the force demanded by government entanglement results in a continuous battle for political control. The person left in the middle, and generally stuck with the bill for both enforcement (via Unions) and bailouts (via Cronies,) is always the remaining middle class; those who work and pay taxes, but receive little if any in terms of government handouts or perks. Meanwhile, the poor grow from increased welfare payments and heavier taxes on their previously middle-class checks, and the rich grow from increased profit based on tax exemptions that only they can find out about, and reduced competition from those who cannot afford to pay the cost of implementing even the most well-intended regulations.