Corporatism Is Not Capitalism
Posted by freedomforall 1 week, 6 days ago to Economics
Excerpt:
"Offering things that people want is the very essence of capitalism. But capitalism is being undermined by corporatism. The latter is to capitalism what the government “asking” you for money is to being free to say no.
Corporatism is often confused with capitalism. More finely, it is used to confuse people about capitalism – and thereby cause them to despise capitalism when they ought to despise corporatism.
For instance, in a capitalist system, a capitalist is free to invest his money (or the money of investors he’s persuaded to invest their money) in his venture. He must then persuade buyers to spend their money on the thing he’s put on offer – such as a battery powered vehicle, for instance.
...
Now let’s consider the corporatist alternative. Instead of investing his own money in the development of a battery powered vehicle, the corporatist relies upon the government to coerce malinvestment in his alternative.
...
This is as far from “capitalism” as LA is from New York City. Wealth has not been created. It has been shifted – from those who had it and did not wish to part with it – into the coffers of the corporatist who had the pull (Ayn Rand’s word) to coerce the transaction. It is an example of the I win/you lose false paradigm that is often used to smear capitalism when in fact it is corporatism that leaves one person holding the bag and another a full bag.
Corporatism does more than just create winners – and losers – in terms of wealth transferred. It creates absurdities instead of efficiencies."
"Offering things that people want is the very essence of capitalism. But capitalism is being undermined by corporatism. The latter is to capitalism what the government “asking” you for money is to being free to say no.
Corporatism is often confused with capitalism. More finely, it is used to confuse people about capitalism – and thereby cause them to despise capitalism when they ought to despise corporatism.
For instance, in a capitalist system, a capitalist is free to invest his money (or the money of investors he’s persuaded to invest their money) in his venture. He must then persuade buyers to spend their money on the thing he’s put on offer – such as a battery powered vehicle, for instance.
...
Now let’s consider the corporatist alternative. Instead of investing his own money in the development of a battery powered vehicle, the corporatist relies upon the government to coerce malinvestment in his alternative.
...
This is as far from “capitalism” as LA is from New York City. Wealth has not been created. It has been shifted – from those who had it and did not wish to part with it – into the coffers of the corporatist who had the pull (Ayn Rand’s word) to coerce the transaction. It is an example of the I win/you lose false paradigm that is often used to smear capitalism when in fact it is corporatism that leaves one person holding the bag and another a full bag.
Corporatism does more than just create winners – and losers – in terms of wealth transferred. It creates absurdities instead of efficiencies."
