web analytics
April 16, 2014 / 16 Nisan, 5774
At a Glance
InDepth
Sponsored Post
Spa 1.2 Combining Modern Living in Traditional Jerusalem

A unique and prestigious residential project in now being built in Mekor Haim Street in Jerusalem.



The Road to Oligarchy

Obamerica will be known as a party country, a good place to buy the good things if you are one of the sons of the rich or are a tourist from a rich country.

Two former Bush family presidents with the future Bush president (Jeb, Left).

Two former Bush family presidents with the future Bush president (Jeb, Left).

Share Button

Regardless of how many wars on poverty are declared and how often calls are issued to make the rich pay their fair share, neither the rich nor the poor will be going anywhere anytime soon. The question is what forces will keep the poor impoverished and where the rich will derive their wealth from.

The founder of Subway recently said that he could not have started up his company today. Similar messages have come from the founders and heads of other major companies. That isn’t to say that companies will cease to exist. What we think of as business has been changing for some time.

In most countries, starting a business does not begin with a great idea. It begins with connections. Knowing the right people is still important, but in most places it’s the most important thing.

Under the current American model, a company becomes successful and then begins to lobby Washington to gain a competitive advantage or to avert hostile lobbying directed at negating its existing competitive advantage. That is a perversion of free enterprise, but in much of the world companies begin lobbying first and then become successful. This is the model that has evolved under Obama. And it’s a familiar model to anyone doing business in Russia or China. Political connections come first and then the business becomes feasible.

Oligarchy is the inevitable outcome of an economic climate where the governments acts as a gatekeeper to the country’s customers. Measures that began as limited safety and fraud regulations have become a comprehensive political economic system that controls every aspect of every economic transaction.

The government creates markets. It creates companies and customers. It sets prices and taxes industries that it does not favor out of business.

Corporate lobbying isn’t just about the proverbial 200 dollar screwdriver. It’s about making it more expensive for some companies to make screwdrivers than others. It’s also about forcing independent screwdriver manufacturers out of business. It’s about government grants to make environmentally friendly screwdrivers and heavy taxes on companies that don’t make environmentally friendly screwdrivers.

Tactics like these aren’t new. The Esch Act eliminated white phosphorus matches through a punitive tax back in 1910. But a century later, the government wiped out the incandescent bulb industry, not for health reasons, but to comply with a trendy ideology. Microsoft, which had hardly bothered to lobby before, was dragged to Washington on monopoly charges that Google, the ultimate dot com insider, today laughs off. And Microsoft learned its lesson, investing in sizable amounts of lobbying capital.

The government is a bigger factor in business models for both large and small businesses than any other. Whether it’s struggling against the mountains of paperwork or looking for ways to profit from the latest regulations, business has come to be defined by government. The tier of governments at every level have accumulated huge amounts of wealth and power. Government power is used to control how business is done while government spending makes political officials into the country’s biggest consumers.

The fusion of business with government leads to oligarchy. The rich are not going anywhere, but wealth becomes a factor of their government connections, rather than skill or even inheritance. Government control over business began under the banner of combating monopolies only to end by creating government monopolies. The war against income inequality will end the same way and with the same results as the oligarchies in Russia, China, Mexico and everywhere else.

The future of Obamerica is a country full of corrupt government officials and tycoons. The future is an aristocracy of union bosses running their own guilds, corporate monopolies that change with each election and government officials with mansions and armed bodyguards.

Income inequality will be huge with oceans of poverty and small islands of wealth locked away behind gated communities. Populists will promise power for the people, only to make the system even more corrupt. One company or one boss will be brought down, only to be replaced with the favorites of another party.

Everyone will despise the tycoons and the government. The government will promise to protect the people from the tycoons, even as it works closely with them, and the tycoons will lavish money on certain areas in exchange for loyalty. Both the government and the tycoons will be closely tied up with organized crime which will launder its drug profits through the tycoons and use its political connections to gain protection and sanctions against rival organizations.

Share Button

About the Author: Daniel Greenfield is an Israeli born blogger and columnist, and a Shillman Fellow at the David Horowitz Freedom Center. His work covers American, European and Israeli politics as well as the War on Terror. His writing can be found at http://sultanknish.blogspot.com/. The views expressed in this blog are solely those of the author and do not represent the views of The Jewish Press.


If you don't see your comment after publishing it, refresh the page.

Our comments section is intended for meaningful responses and debates in a civilized manner. We ask that you respect the fact that we are a religious Jewish website and avoid inappropriate language at all cost.

No Responses to “The Road to Oligarchy”

Comments are closed.

SocialTwist Tell-a-Friend

Current Top Story
The interior of the El Ghriba synagogue on the island of Djerba, Tunisia, in 2009.
Tunisian Jew Stabbed in Djerba
Latest Indepth Stories
Chief IDF Rabbi Rafi Peretz

We, soldiers of the IDF, who stand guard over the people and the land, fulfill the hopes of the millions of Jewish people across the generations who sought freedom.

Lebovic-041814

How much is the human mind able to grasp of the Divine?

Benveniste-041814

Jews have brought the baggage of the galut (exile) mentality to the modern state of Israel.

Dann-041814

The Haggadah is an instruction manual on how to survive as strangers in strange lands.

It’s finally happened. New York Times public editor Margaret Sullivan reported on her blog that “many readers…wrote to object to an [April 2] article…on the breakdown in peace talks between Israel and the Palestinians,” claiming “[they] found the headline misleading and the article itself lacking in context.” Ms. Sullivan provided one such letter, quoted the […]

Nor did it seem relevant that according to widely circulated media reports, Rev. Sharpton was caught on an FBI surveillance video discussing possible drug sales with an FBI agent.

Jewish soldiers in the Polish forces often encountered anti-Semitic prejudice.

When the state was established, gedolim went to Ben-Gurion and asked him not to draft women and, later, yeshiva bachrim.

Perhaps worse than all the above is the acute lack of unity among Jews

At our seder we emulate the way it was celebrated in Temple times, as if the Temple still stood.

Not one world leader holds Abbas accountable for his part in the breakdown of negotiations.

The 1948 re-establishment of Jewish sovereignty was a modern day Exodus and Parting of the Sea.

Spies who caused American deaths and worked for enemy states received lighter sentences than Pollard.

Christie’s “good friend” is an Imam who supports murderers of Jews and defames Israel and Christians.

More Articles from Daniel Greenfield
policeman

We’ve become very good at symptom management and at not thinking about the underlying problem.

consumerism-1

Their grandparents had already loosened their grip on religion and as the family disintegrated, materialism took its place.

Mohammed beheaded Mahuddin Mahmud making it a case of Mohammed on Mohammed violence.

At the Benghazi hearings, Hillary famously demanded to know what difference it made. The same can be said of her life.

With Hillary Clinton, the Democratic Party already has an Anti-Obama in waiting.

The constant expansion and destructive acquisition of small innovative companies maintains the illusion that the latest digital horse is something special.

The JFK assassination became a liberal martyrdom in search of a conservative inquisitioner.

The God of Global Warming is the embodiment of liberalism and holds all the politically correct beliefs while carrying out brutal atrocities in the name of the left’s favorite political causes.

    Latest Poll

    Now that Kerry's "Peace Talks" are apparently over, are you...?







    View Results

    Loading ... Loading ...

Printed from: http://www.jewishpress.com/indepth/columns/daniel-greenfield/the-road-to-oligarchy/2013/03/08/

Scan this QR code to visit this page online: