We are regulating our economy to death. One of the main reasons why there is an increasing disparity in wealth in this country is that the crony class is wrapping the middle class and the merchant class – the entrepreneurial class – in red tape. Pay a tax here. Pay a fee there. Do you have a license to do that? It is harder and harder to build a business – something which is plenty hard to do without the crushing weight of the state.
Every time we post a story on crop subsidies there are at least a few people out there who jump up and down and swear that taxpayers paying to subsidize farmers (really agribusiness) isn’t welfare.
Our state employee pension systems are chock full of crony capitalism. They are often overly generous, but they are also big fat pools of money from which the politically connected can siphon enormous fees. The whole racket is paid for by the taxpayer of course.
If it does, and eventually it will, watch out. We will enter completely new economic territory. You think things have been wild since 2008? If people truly call out the emperor as naked, if that becomes the consensus, holy moly, are things going to get interesting.
I was recently talking with senior wonk in Washington DC about this very issue. Why was it for all the think tanks, all the white papers, all the fits and crying in the media about this issue and that, that policy on the big issues hardly ever changes to reflect the will of the American people?
My friend thought basically the same as the author interviewed in the attached article. There is a surface level government and then there is the “deep state,” a place where massive power is housed, and wielded by largely faceless and mostly unaccountable managers who have agendas which are often very different from what you and I might want.
This is a great video. Peter Thiel of Paypal fame (he was also the first investor in Facebook, among other things) speaks of the “slow impoverishment” of the United States through inflation and regulation.
He is dead on.
You sure can, and lots else besides.
With mobile computing markets for practically everything are much more dynamic and useful for the average person.
And then the obvious question is – “Where do the central bankers get all this money?”
Only a few people think about that, and half of the people thinking about it don’t care that this “money” comes from nowhere. All they care about is the next quarter, the next day, the next tick, whatever helps them through their withdrawal.
Rest assured that none of the $7 billion dollars went directly to war lords and other avowed enemies of the United States. I am sure the money didn’t go to fund new “deep wells” which enable poppy cultivation in previously inhospitable places, or to finance the transport of heroin into Europe, China, and North America.
Nope. That money, that taxpayer money, was money well spent.
Crony capitalism is deep in the DNA of both major parties. Republicans do it. Democrats do it. This is a case in point.
GM is a cronyism vortex. The closer one gets to the company the stronger the crony force is. Taxpayer dollars disappear into it and are gone forever. Common sense too. The free market and genuine innovation? They long ago passed over the event horizon.