Crony Capitalism is not Capitalism

From the Stoa tonight I wish to discuss the difference between Capitalism and Crony Capitalism. As the warmth of spring continues to sink into the cold lands of Western Michigan, I hear the overlapping drone of one term and phrase after another, constantly misused and intentionally misunderstood.

First, capitalism is not a political theory. It is an economic theory that is the close cousin of the Free Market system. Socialism IS both an economic theory and a political theory. Ditto Marxism. Islamic Sharia is an economic theory, political theory, and cultural belief system all rolled into one. As you can see, we are building up a lexicon of meaning here.

The United States was founded as a Republic that utilized a system of free markets with low taxes and tariffs. The new nation had a handful of millions of souls, squeezed between an unfriendly Europe, an angry Canada, and a host of mixed native American tribes. A hundred years later, the United States was vastly expanded and rapidly eclipsing the Old World in terms of economics and military power. By the end of Theodore Roosevelt's presidency, the United States already had the (arguably) largest and most capable navy in the world. By the end of WWII, the United States was the world's mightiest nation in terms of population, economics, and military power. Technologically, we were innovating and inventing nearly every major item in the world.

That has been the power of the American Republic, the American spirit of risk-taking, and the potential of the Free Market. In that time, the Federal Governments involvement has grown in direct proportion to the decline of the Republics' potential.

In a free market republic, the government does not interfere with the Free Market. Now, can anyone in the class identify a model where the government interferes with the market place? If you said Marxism and Communism then you would be correct. What do you call it when the government allows the company to run its own affairs as long as it produces what the government requests? If you said, "Fascist" then you would be correct. In this case, you have many of the established blue chip international conglomerates sucking up to the Federal Government in general and Obama specifically.

You will find parallels in Germany from 1933 to 1945. Just ask Siemens, Krupp, and many, many other German companies how they aided Herr Hitler.

In Germany's case, as in the ongoing American disaster, you have a company willing to sell its freedoms for guaranteed slice of the REGULATED economy.GE, GM, AMA, and AARP are just a few of the companies that are sucking up, just as Siemens did in 1933.

Is GE going to make medical products that are needed in the market (i.e. compete) or are they going to create junk that the Feds will regulate less than a Philips product? Is GM going to demand taxpayer subsidies to push the Chevy Volt onto the American public? Oh, wait, they already HAVE.

Crony Capitalism has nothing to do with Capitalism. In reality it is a type of willing Fascism on the part of a willing corporate body currying favor with a Marxist that will crush those that do not do as they are told. Little do they know that this willingness will not save them from scorn and attack if it suits the Obama Administration. Just ask Goldman Sachs.

This was not as detailed as I intended, though I may expand on this if the mood strikes me. I feel that I have provided enough material for a spirited debate and thoughtful discussion.

It is time for me to depart to my humble abode, as it is late upon the Stoa this night.

Live well.

--Zavost