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Fascism and the Fusion of Business and State

By: Steve Johnson

3/23/2012 - 0 Comments

This is what is happening today, entrepreneurs and business-owners are being forced into politics because the government has expanded into their industry.

When the government expands into your industry, you have no choice but to gain political influence or be run out of business by those that do.

With each economic intervention, by way of bailouts, handouts, price controls, etc. the government destroys the real economy, and increases the value of political influence, shifting the effort from production to political lobbying. 

So the political lobbying system is feeding itself on the economy like a vampire, draining the life out of the economy as it continues to grow.

Each time the economy begins to collapse, the government steps in to take over more of the economy which draws in more business owners into political lobbying, all the while the economy is not getting better – but much worse as each collapse is worse than the previous.

But because there is no incentive for those in control of the state to avoid the approaching disaster, they continue to add to their lobbying power.

The only cure to the state controlled economy is for the state to stop controlling the economy and return the power to the entrepreneurs, but the cure threatens the livelihood of the state bureaucrats and lobbyists of the ruling regime.  And neither party can walk away without the other taking complete control of the economy and running the businesses of the party that walked away into the ground.

The idea of economic freedom and liberty are rooted in Christianity, so the underlining reason that the economy is collapsing is because the nation has turned away from believing in God and his Son. To make matters worse, God told us this would happen a long time ago as it is written in scripture, so we have no excuse.  

For a longer version of this, here is a great article on mises.org and here are a few quotes that summaries it.

Fascism and the Fusion of Business and State

"He is therefore motivated to consume more of his property than he otherwise would, and to use his savings to buy political influence, rather than engaging in productive endeavors. He is motivated, in short, to engage in political rather than economic entrepreneurialism."

"This leads to a concentration of economic power in a few large firms, who are able to rely on government contracts to boost their income, while at the same time using captured regulatory bodies as a means to block smaller competitors from their market."

"Over a period of time, this process means that productive firms and economic entrepreneurs are destroyed, while unproductive (parasitic) enterprises run by political entrepreneurs take their place."

"The fascist economic system causes a convergence of economic and political power, both through the politicization of existing private capitalists, and the enrichment of political figures. The attempt to form a partnership between business and state eventually leads to a situation where business is the state, and the state is business."

"Since they have no method to objectively value competing projects, their interventions will involve a misallocation of resources compared with the free-market case, and will frequently involve an aggregated loss of resources even ignoring opportunity costs. Thus, despite any pretensions to the contrary, the state is unable to increase total economic output through its central planning; instead, it destroys the price system and causes loss.[20] This gradually leads to economic decline."

"The result is obvious: under an authoritarian system, political entrepreneurialism increases, and production decreases. This further politicizes the economy and leads to ever-greater distortions of prices, making rational calculation impossible."

"The problems with the fascist economic system become more and more clear, but there is no incentive for those in control of the state apparatus to avoid the approaching disaster. Since the only antidote to the problem is liberalization of the economy from state control, the cure for the economic decline threatens the personal livelihoods of the state bureaucrats and the ideological program of the higher-level members of the ruling regime."

 

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