Few people are well educated in economics and it shows in the policies and politicians they support. They eat up the anti-capitalist propaganda spewed out by the left without a second thought. They think that it’s capitalism’s fault for the Housing Bubble and the recession that followed, even though that couldn’t be farther from the truth. They think it’s capitalism’s fault that wealth inequality is so bad in this country. They even think that capitalism has caused healthcare prices and education costs to soar. Worst of all, those people want the government to pass laws and regulations to try and stop those things from happening, which in reality only makes it all much worse.
The real problem is that most people don’t know what capitalism really is. That starts with their belief that we have capitalism in the United States, we don’t. Capitalism would mean a deregulated economy with near perfect competition, which is clearly not what exists today. We have corporatism in America, and have had it for some time now. Corporatism is whats to blame for all of those problems listed above, not capitalism.
Corporatism is the merger of state and corporate power, with each side helping the other out to grow larger. Governments own, invest in, or heavily regulate ever single company in this country and have enormous influence in business. They’ve also got their own friends and cronies in those firms as well. It’s the same for corporations as they have lobbyists to make sure that all those investments and regulations benefit them.
That marriage has grown big government and big corporations at the expense of individuals, and small businesses. The corporatists’ dual manipulation of the economy is what caused the Housing Bubble and subsequent recession, as well as the ever growing Student Loan Debt Bubble. Here’s another whole article on just those two bubbles. Corporatism has also created a class of rich cronies who live off of corporate welfare and government contracts. Those super rich contribute greatly to the wealth inequality in this country. In capitalism those regulations that caused the Housing Bubble never would have existed, and neither would the policies that hand out taxpayer dollars to corporations.
Corporatism is even to blame for healthcare costs rising after Obamacare was passed. The insurance agencies lobbyists are the ones who wrote the bill, and they did so to benefit themselves. Under Obamacare everyone is forced to buy insurance, and regulations ensure it will be more expensive than before. Of course, the law never even addressed any of the underlying problems with why healthcare is so expensive in the first place: government intervention. In capitalism the healthcare market would be free from those burdensome regulations, and government subsidy, that make it overpriced.
The worst part is, even after knowing all of this, some people still think that it’s the government’s job to fix these problems by adding more regulation. They don’t see that it was the government that started it all to begin with. It’s like asking an arsonist to put out a fire with more gasoline. It’s only going to get worse every time.
It falls to us to support libertarians that want to dismantle corporatism by ending the corporate welfare and regulations. Only a deregulated free economy will see bubbles become a thing of the past, wealth inequality lessen, and healthcare and education prices fall. That can only happen if we go back to capitalism, and away from more big government.