When most leftists and liberals decry the current American system, they talk about income inequality, corporate welfare, big business lobbying, and the like. They tend to call these things “the evils of capitalism” or something similar.
Well, I have good news and bad news. The good news is that leftists and liberals are wrong to call these things capitalism. The bad news is that leftists and liberals are right to call these things wrong. America has become corporatist rather than capitalist. In a fantastic interview with Larry King, Ron Paul distinguished between these two systems, as only Ron Paul can.
Here is a tidbit from that interview:
Michael Moore: I think capitalism as it is defined now has completely failed. Yeah, it hasn’t really failed the rich. It has actually helped them, the wealthiest one percent now have more financial wealth than the bottom 95 percent combined, so it’s a really good system for a few people.
Larry King: Hi, Ron, do you disagree with that statistic that Michael Moore just pointed out?
Ron Paul: No, and I’m not complaining about it as much as he does, but I think I understand it differently because when a country embarks on deficit financing and inflationism, you wipe out the middle class and wealth is transferred from the middle class and the poor to the rich and when we get into trouble, then the corporations come for their bailout and they get the benefits and the little people don’t.
So yes, there is some truth to that, but it’s the failure of the free market to exist, that is our problem. It isn’t the fact that we don’t have enough government, we have way too much government. The government created this monster. If he doesn’t like what we have, he has to look at what we’ve been doing for 30 or 40 years, it’s called interventionism. It’s called Keynesism. It’s called inflationism. It’s called Big Government. That’s the problem.
Boom. It doesn’t take a rocket scientist to figure it out. After the Supreme Court Citizens United ruling in 2010, corporations could spend an unlimited amount on their preferred candidates. If you think this hasn’t resulted in corporate lobbyists securing even more big government promises for their special interests, you are a too-trusting soul (and I have some ocean front property in Kansas I want to sell you). Since that ruling, spending has absolutely sky-rocketed for elections. And that does not bode well for the average American.
Need more evidence that big banks and big business are constraining our civil government? Just look at what happened with the absolutely-not-free-market big bank bailouts. The civil government said there were banks that were too big to fail. So they gave them billions (trillions?) of our dollars so they wouldn’t collapse. What did these banks spend all that money on (aside from lavish executive bonuses and exotic getaways)? Take Chase, for instance. They used bailout money to purchase Washington Mutual (a bank that did not require a bailout, by the way). I banked with Washington Mutual before Chase purchased it. I loved that bank. There is a reason it didn’t need a bailout—it was a good bank. After Chase bought it, it became just like Chase—terrible. So the civil government stole our money to keep a failing business alive, redistributing money from average and middle class Americans to corporate elitists. How is that capitalism again?
True capitalism would have let the big banks die. We don’t have true capitalism though. We have crony capitalism, corporate welfare, and big government corruption. On both sides of the aisle. So next time liberals complain about capitalism, tell them they can complain about it if and when we ever get it.