Most people in politics, business, the media, and elsewhere give lip-service to “capitalism” but they really mean crony-capitalism or corporatism and not real capitalism. The idea of laissez-faire capitalism without any government interference is abhorrent to most people. Few people really like capitalism even if they mistakenly call themselves capitalists. If all the people who love laissez-faire capitalism were to hold a conference they could do it in a Holiday Inn conference room in Manardville, Tn. Real capitalism is too chancy, unpredictable, and too uncontrollable. It is hard work getting to the top of the heap and damn near impossible to stay there.
Capitalism offers is no royal road to success. You can be smart, work hard, be from the “best family” and go to the best schools and there is still no guarantee that you will succeed. Oh my god, there is luck involved! Even worse, if you do succeed there are no guarantees that you can keep your wealth or position. Wealth is fickle in a laissez-faire economy.
A real big secret that the masses don’t understand is that the rich tend to be the biggest anti-capitalists around. Surprised? They want to stop the game now that they are on top and have the government protect the position they have now. They don’t want young turks to come along and knock them off the top rung of the ladder. They want crony-capitalism.
The rich, powerful, connected, and their servants also use the power of the police state to enforce their position. This involves rules, regulations, laws, edits, corporate-welfare, and other underhanded government interventions into the market. Licensing requirements, tariffs, and regulations make it hard to enter a profitable industry and hence protects those already in the industry.
The rich also write the tax codes. Surprised? The tax code is set up to make it hard to become wealthy but much easier to stay wealthy. Obviously that helps those already with wealth. The government taxes income, not wealth.
In America the rich complain about the poor and the poor complain about the rich while everyone complains about the government and almost everybody hates laissez-faire capitalism. Over time the giveaways, bribes, regulations, interventions, meddling, graft, and greed on the part of the government has had a disastrous effect on the economy.
The government interventions of the warfare-welfare state is strangling the economy. These practices create huge amounts of misallocation of funds and the unproductive busy work involved in meeting the millions of government regulations is time and money tossed out the window. As wealth is transfered from those that earn it to those those that don’t there is less and less wealth earned for a mountain of reasons. We are killing the goose that laid the golden egg of wealth.
We practice crony-capitalism (or fascism) and call it “capitalism”. Worse we are often told we have a system of free-market capitalism! Lies, damn lies, and government propaganda. Watch, when the system falls apart in a great financial meltdown people will be yelling that “free markets don’t work”. We don’t have free markets.
Repeat after me children: “we do not have a capitalist system”. We do not have a free market economy. Why? The elites hate capitalism.