A little education on the economy

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America's form of capitalism kills free enterprise and democracy

Rss@dailykos.com (egberto Willies)

Sunday, September 01, 2013, 10:13 pm

Many believe that capitalism is synonymous with free enterprise and democracy. Capitalism is neither free enterprise nor democracy. After all, China is now a capitalist country. No one believes that China is a democratic country. This conflation has allowed all attempts to attenuate the deficiencies of capitalism to be construed as that grand evil, "socialism" or communism. Americans would do well to understand the differences and how they affect their everyday lives.

Under a poor unfettered capitalist structure the only thing that matters is growth, the real appreciation of capital. The shareholders of companies want the highest return on their investment. The managers of their monies effect whatever necessary actions to achieve this. If the American worker becomes too expensive, they present a false narrative stating that free trade lifts all workers. They then "invest" in politicians forcing them to pass free trade agreements like NAFTA and TPP. If a profitable patent is about to expire, they get it extended by all means necessary. If an allowable level of pollution affects the bottom line, they get the law changed. If a pipeline or transmission line needs to be built, use eminent domain to usurp the rights of the property owner. You get the picture.

Free enterprise would have all play under the same market rules of supply and demand. Corporations would have no advantages over the small businesses they have today. In a real free enterprise system a corporation could not have exclusivity in a cable, or some utility market. In a real free enterprise system a corporation could not prevent a city or private entity from building out free Wi-Fi.

While the tea party has been running around preaching about Americans losing their freedom, their bogeyman was purposefully ill-chosen. The ones that are hurt the most by the policies they support are those they purport to defend. Support of policies that removes the power of the elected government to regulate in effect relegates that power to an unelected few whose sole concern is the maximization of their wealth and well-being.