Capitalism vs Corporatism

Discussion in 'Politics' started by Wiseacre, Feb 21, 2012.

  1. Wiseacre
    Offline

    Wiseacre Retired USAF Chief Supporting Member

    Joined:
    Apr 8, 2011
    Messages:
    6,025
    Thanks Received:
    1,192
    Trophy Points:
    48
    Location:
    San Antonio, TX
    Ratings:
    +1,194
    I see threads around here all the time bashing capitalism, when in fact we do not have a capitalistic system in place any more, we've bastardized it too much. There's no doubt that unchecked capitalism leads to abuses of customers and employees and competitors, but we've gone too far IMHO. We've got too damn many effin' politicians trying to make a name for themselves as crusaders for the public, proposing heavy handed new rules and laws that are costly and ineffective.


    snippet:
    Capitalism became a world-beater in the 1800’s, when it developed capabilities for endemic innovation. Societies that adopted the capitalist system gained unrivaled prosperity, enjoyed widespread job satisfaction, obtained productivity growth that was the marvel of the world and ended mass privation.

    Now the capitalist system has been corrupted. The managerial state has assumed responsibility for looking after everything from the incomes of the middle class to the profitability of large corporations to industrial advancement. This system, however, is not capitalism, but rather an economic order that harks back to Bismarck in the late nineteenth century and Mussolini in the twentieth: corporatism.

    In various ways, corporatism chokes off the dynamism that makes for engaging work, faster economic growth, and greater opportunity and inclusiveness. It maintains lethargic, wasteful, unproductive, and well-connected firms at the expense of dynamic newcomers and outsiders, and favors declared goals such as industrialization, economic development, and national greatness over individuals’ economic freedom and responsibility. Today, airlines, auto manufacturers, agricultural companies, media, investment banks, hedge funds, and much more has at some point been deemed too important to weather the free market on its own, receiving a helping hand from government in the name of the “public good.”
    .
    .
    .
    snippet:
    It seems unlikely that so disastrous a system is sustainable. The corporatist model makes no sense to younger generations who grew up using the Internet, the world’s freest market for goods and ideas. The success and failure of firms on the Internet is the best advertisement for the free market: social networking Web sites, for example, rise and fall almost instantaneously, depending on how well they serve their customers.

    Sites such as Friendster and MySpace sought extra profit by compromising the privacy of their users, and were instantly punished as users deserted them to relatively safer competitors like Facebook and Twitter. There was no need for government regulation to bring about this transition; in fact, had modern corporatist states attempted to do so, today they would be propping up MySpace with taxpayer dollars and campaigning on a promise to “reform” its privacy features.

    The Internet, as a largely free marketplace for ideas, has not been kind to corporatism. People who grew up with its decentralization and free competition of ideas must find alien the idea of state support for large firms and industries. Many in the traditional media repeat the old line “What's good for Firm X is good for America,” but it is not likely to be seen trending on Twitter.

    The legitimacy of corporatism is eroding along with the fiscal health of governments that have relied on it. If politicians cannot repeal corporatism, it will bury itself in debt and default, and a capitalist system could re-emerge from the discredited corporatist rubble. Then “capitalism” would again carry its true meaning, rather than the one attributed to it by corporatists seeking to hide behind it and socialists wanting to vilify it.

    Blaming Capitalism for Corporatism - Edmund S. Phelps and Saifedean Ammous - Project Syndicate
     
    • Thank You! Thank You! x 1
  2. Mr. H.
    Offline

    Mr. H. Diamond Member

    Joined:
    Aug 19, 2009
    Messages:
    44,127
    Thanks Received:
    9,267
    Trophy Points:
    2,030
    Location:
    A warm place with no memory.
    Ratings:
    +15,407
    Corporatism is the efficient accounting mechanism of capitalism.
     
  3. editec
    Offline

    editec Mr. Forgot-it-All

    Joined:
    Jun 5, 2008
    Messages:
    41,427
    Thanks Received:
    5,598
    Trophy Points:
    48
    Location:
    Maine
    Ratings:
    +5,618
    The hallmark of corporatist capitalism is that those in power seek to mitigate normal cpaitlism and replace normal market forces with government controlled market forces.

    Both parties are party to this system, folks.

    BOTH parties.
     
  4. Mac1958
    Offline

    Mac1958 Platinum Member

    Joined:
    Dec 8, 2011
    Messages:
    30,236
    Thanks Received:
    6,503
    Trophy Points:
    1,160
    Location:
    Independent Ave.
    Ratings:
    +20,487
    .

    Yeah, this is a problem, and an underestimated problem at that. Corporatism has so badly bastardized capitalism that it has opened the door nice and wide for anti-capitalists to scream "See? Capitalism doesn't work!", as if this were capitalism. Corporatism has made capitalism terribly vulnerable, and we're at a tipping point.

    And as far as editec's comment above about how both parties are involved, I couldn't agree more. I'd think the GOP has more to worry about here, since they're the party that (1) is more identified with corporations and (2) is more likely to be viewed as their apologists.

    Those who are against REAL capitalism are licking their chops right now, guaranteed.

    Yet another self-inflicted wound.

    .
     
    • Thank You! Thank You! x 1
  5. TakeAStepBack
    Offline

    TakeAStepBack Gold Member

    Joined:
    Mar 29, 2011
    Messages:
    13,935
    Thanks Received:
    1,723
    Trophy Points:
    245
    Ratings:
    +2,012
    Some of us have been saying it since OWS chums came along drooling and droning on about capitalism is the problem. Good article.
     
  6. dblack
    Offline

    dblack Gold Member

    Joined:
    May 21, 2011
    Messages:
    20,140
    Thanks Received:
    2,011
    Trophy Points:
    245
    Ratings:
    +3,789
    Yup... definitely not news, but always worth discussion.

    In my view the tacit support of corporatism, from both major parties, is the most distressing feature of the current political landscape. Corporatism is fundamentally anti-democratic. It replaces the rule of law with what the OP article refers to as the "managerial state". We're turning away from egalitarian rule-making, to government that acts primarily as a power broker - deciding who will be "more equal" and who less so.
     
    Last edited: Feb 22, 2012
  7. Decepticon
    Offline

    Decepticon BANNED

    Joined:
    Jan 11, 2012
    Messages:
    1,138
    Thanks Received:
    189
    Trophy Points:
    0
    Ratings:
    +189
    [​IMG]
     
  8. Truthmatters
    Offline

    Truthmatters BANNED

    Joined:
    May 10, 2007
    Messages:
    80,182
    Thanks Received:
    2,223
    Trophy Points:
    0
    Ratings:
    +2,233
    there is nothing wrong with caplitalism as long as it is correctly regulated by the people
     
  9. Truthmatters
    Offline

    Truthmatters BANNED

    Joined:
    May 10, 2007
    Messages:
    80,182
    Thanks Received:
    2,223
    Trophy Points:
    0
    Ratings:
    +2,233
    Dear OP please retrieve all the threads about capitalism being evil?
     
  10. TakeAStepBack
    Offline

    TakeAStepBack Gold Member

    Joined:
    Mar 29, 2011
    Messages:
    13,935
    Thanks Received:
    1,723
    Trophy Points:
    245
    Ratings:
    +2,012
    Go check the economics forum. There is one title "is capitalism in crisis". As right off the top of my head. In it, you will find people arguing that we have capitalism and an assortment of other fallacies.
     

Share This Page