Capitalism is the Only Free System. Governments are the Only Real Problem

Capitalism is nothing but trading goods and services.
Crony Capitalism is when the government has been co-opted by powerful interests to create a rigged capitalist system.
Governments are now the tools of these powerful interests whose goals are to farm our wealth and control us, like a revenue stream.
Government has no right to take people’s stuff or own their labor and socialism is a step in the wrong direction, towards more control by the powerful interests that control government. 

Socialism is like the DMV controlling your existence

Name the State

Jeffrey A. Tucker
THURSDAY, APRIL 4, 2019

The tendency toward loss of political control has inspired new, more extreme, and more obscurantist forms of selling state control to us. As the dynamics of public vs. private continue to shift, we can look forward to ever more obfuscation about the reality of displacing market forces. But once you see what’s going on, you can’t unsee it. The most effective path toward helping others to see is simple: name the state.

The bitter truth about most public policies being sold by the political class is that they give them more power to control our lives.

Read More: https://www.aier.org/article/name-state

Capitalism (aka Self-Ownership) Is the Only Moral Economic System


04/05/2019

In capitalism (which is actually inconsistent with the government- created or enabled crony capitalism we see all around us), even those who would be tyrants, if given the opportunity, must focus their efforts on providing willing service to others to induce their voluntary cooperation. In contrast, the drive for power that animates these politicians who condemn a capitalism they plainly don’t comprehend would increasingly turn others into their unwilling servants.

Read More: https://mises.org/wire/capitalism-aka-self-ownership-only-moral-economic-system

The Truth About America’s Crony-Capitalism: It’s Controlled by Less Than a Dozen Companies

People act like massive inequalities are the fault of capitalism, a system of buying and trading goods and services that goes back to the beginning of human history.

In fact, none of us would be alive today if our ancestors did not partake in trading, buying and selling.

It has been evident through the centuries, that humans flourish the most when allowed to partake in trade, and they flourish even more depending on how free the trade is from central authorities’ taxation and arbitrary regulation.

The problem with blaming our current inequalities on today’s system of capitalism is that it’s not really a free system, but tightly controlled by corporate and government-created cartels. It’s crony capitalism. It’s corporatism. It’s not allowing people to freely trade with one another.

It would be a mistake to claim that we need to replace today’s system of centrally controlled trade with another system of central control, like socialism. You can’t cure an ill by doubling up on the poison that caused the illness in the first place.

No system that allows for human freedom and happiness can ever create perfect equality of outcomes for everyone.

Humans are messy creatures, we don’t appreciate any centrally-forced solution that reduces our freedoms.

The best we can hope from a system is to provide an equal playing field for freedom of trade… which is exactly the opposite of what we have going on today in the United States, where eleven companies control every consumer good, while five companies control all mainstream media, and a central bank, owned privately by global conglomerates controls our money policy.

11 companies control everything you buy

11 companies control everything you buy – wikibuy.com

The Myth Of American Capitalism Exposed: Competition Is Dying As The Biggest Corporations Gobble Up Everything

Vibrant competition is absolutely essential in order for a capitalist economic system to function effectively.  Unfortunately, in the United States today we are witnessing the death of competition in industry after industry as the biggest corporations increasingly gobble up all of their competitors.  John D. Rockefeller famously once said that “competition is a sin”, and he was one of America’s very first oligopolists.  According to Google, an oligopoly is “a state of limited competition, in which a market is shared by a small number of producers or sellers”, and that is a perfect description of the current state of affairs in many major industries.  In early America, corporations were greatly limited in scope, and in most instances they were only supposed to exist temporarily.  But today the largest corporations have become so huge that they literally dominate our entire society, and that is not good for any of us.

Just look at what is happening in the airline industry.  When I was growing up, there were literally dozens of airlines, but now four major corporations control everything and they have been making gigantic profits

AMERICA’S airlines used to be famous for two things: terrible service and worse finances. Today flyers still endure hidden fees, late flights, bruised knees, clapped-out fittings and sub-par food. Yet airlines now make juicy profits. Scheduled passenger airlines reported an after-tax net profit of $15.5bn in 2017, up from $14bn in 2016.

What is true of the airline industry is increasingly true of America’s economy. Profits have risen in most rich countries over the past ten years but the increase has been biggest for American firms. Coupled with an increasing concentration of ownership, this means the fruits of economic growth are being monopolised.

If you don’t like how an airline is treating you, in some cases you can choose to fly with someone else next time.

But as a recent Bloomberg article pointed out, that is becoming increasingly difficult to do…

United, for example, dominates many of the country’s largest airports. In Houston, United has around a 60 percent market share, in Newark 51 percent, in Washington Dulles 43 percent, in San Francisco 38 percent and in Chicago 31 percent. This situation is even more skewed for other airlines. For example, Delta has an 80 percent market share in Atlanta. For many routes, you simply have no choice.

And of course the airline industry is far from alone.  In sector after sector, economic power is becoming concentrated in just a few hands.

For a moment, I would like you to consider these numbers

  • Two corporations control 90 percent of the beer Americans drink.
  • Five banks control about half of the nation’s banking assets.
  • Many states have health insurance markets where the top two insurers have an 80 percent to 90 percent market share. For example, in Alabama one company, Blue Cross Blue Shield, has an 84 percent market share and in Hawaii it has 65 percent market share.
  • When it comes to high-speed Internet access, almost all markets are local monopolies; over 75 percent of households have no choice with only one provider.
  • Four players control the entire U.S. beef market and have carved up the country.
  • After two mergers this year, three companies will control 70 percent of the world’s pesticide market and 80 percent of the U.S. corn-seed market.

I knew that things were bad, but I didn’t know that they were that bad.

Capitalism works best when competition is maximized.  In socialist systems, the government itself becomes a major player in the game, and that is never a desirable outcome.  Instead, what we want is for the government to serve as a “referee” that enforces rules that encourage free and fair competition.  Jonathan Tepper, the author of “The Myth of Capitalism: Monopolies and the Death of Competition”, made this point very well in an excerpt from his new book

Capitalism is a game where competitors play by rules on which everyone agrees. The government is the referee, and just as you need a referee and a set of agreed rules for a good basketball game, you need rules to promote competition in the economy.

Left to their own devices, firms will use any available means to crush their rivals. Today, the state, as referee, has not enforced rules that would increase competition, and through regulatory capture has created rules that limit competition.

Our founders were very suspicious of large concentrations of power.  That is why they wanted a very limited federal government, and that is also why they put substantial restrictions on corporate entities.

When power is greatly concentrated, most of the rewards tend to flow to the very top of the pyramid, and that is precisely what we have been witnessing.  The following comes from the New York Times

Even when economic growth has been decent, as it is now, most of the bounty has flowed to the top. Median weekly earnings have grown a miserly 0.1 percent a year since 1979. The typical American family today has a lower net worththan the typical family did 20 years ago. Life expectancy, shockingly, has fallen this decade.

So what is the solution?

Read More: http://endoftheamericandream.com/archives/the-myth-of-american-capitalism-exposed-competition-is-dying-as-the-biggest-corporations-gobble-up-everything

These 11 Companies Control Everything You Buy

wikibuy.com

Is freedom of choice an illusion?

The rapid rise of variation in everyday goods and services, from which cereal we eat in the morning to which toothpaste we brush our teeth with at night, gives the perception of unlimited choice. For example, if you’re deciding which bottled water to buy, the possibilities range from budget brands, like Deer Park or Ozarka, to higher-end options, like Perrier or S. Pellegrino. But this appearance of choice is actually manufactured. All of the aforementioned brands are owned by one company: Nestle.

Despite the amount of choices in the consumer market, several big companies own a large majority of major brands, effectively controlling everything you buy.

So, how much of “choice” is really controlled by big business, and how well do Americans understand which corporations have a stake in the goods and services they rely on every day? To find out, we took an in-depth look at the major companies that own a majority of America’s food and consumer goods. Then, we surveyed 3,000 Americans about their understanding of which big businesses own which major brands. Check out our full visual below, or skip ahead to see our survey findings.

Read More: https://wikibuy.com/blog/b8b9

 

Witnessing the End of Financialization and Globalization

america the corporatocracy

We Are All Hostages of Corporate Profits

Charles Hugh Smith July 06, 2018

We’re in the endgame of financialization and globalization, and it won’t be pretty for all the hostages of corporate profits.

Though you won’t read about it in the mainstream corporate media, the nation is now hostage to outsized corporate profits.

The economy and society at large are now totally dependent on soaring corporate profits and the speculative bubbles they fuel, and this renders us all hostages: “Make a move to limit corporate profits or speculative bubbles, and your pension fund gets a bullet in the head.”

Not just pension funds, of course; tax revenues will also be taken out and shotas most of the state and federal income taxes are paid by high-earners and those skimming capital gains from stock options and stock-based compensation packages.

Political and financial authorities have caved in to the implicit threat, lest their share of the corporate swag be tossed in the ditch. To appease public anger, various bureaucratic thickets have been created, but as you can easily see, corporate profits have not been affected.

The global downturn resulting from China’s tightening of credit in 2016 caused a remarkably under-reported panic in central banks, which pulled out all the stops to keep corporate profits high.

Subsidies, tax breaks and exclusions keep the profits flowing not just to corporate managers and owners but politicos, lobbyists and the entire food chain that serves the top of the wealth-power pyramid in America….

Read More: http://charleshughsmith.blogspot.com/2018/07/we-are-all-hostages-of-corporate-profits.html