web analytics
November 22, 2014 / 29 Heshvan, 5775
At a Glance
InDepth
Sponsored Post
IDC Herzliya Campus A Day on Campus

To mark IDC Herzliya’s 20th anniversary, we spent a day following Prof. Uriel Reichman, IDC’s founder and president, and Jonathan Davis, VP for External Relations, around its delightful campus.



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).

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.

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.

If you promote any foreign religions, gods or messiahs, lies about Israel, anti-Semitism, or advocate violence (except against terrorists), your permission to comment may be revoked.

No Responses to “The Road to Oligarchy”

Comments are closed.

SocialTwist Tell-a-Friend

Current Top Story
Yeshiva Beit Orot
2 Yeshiva Students Injured in Friday Night Terrorist Attack
Latest Indepth Stories
Dalia Lemkos, HY"D Is this the image you think of when you hear the word "settler?"

The “Media” didn’t want us to know what a kind, giving, loving young woman Dalia was.

A “Palestine” could become another Lebanon, with many different factions battling for control.

Temple_Mount_aerial_from_south_tb_q010703bsr-300x225

Maimonides himself walked and prayed in the permissible areas when he visited Eretz Yisrael in 1165

voting

Having a strong community presence at the polls shows our elected officials we care about the issues

Israel’s Temple Mount policy prefers to blames the Jews-not the attackers-for the crisis.

When Islam conquered the Holy Land, it made its capital in Ramle of all places, not in Jerusalem.

I joined the large crowd but this time it was more personal; my cousin Aryeh was one of the victims.

Terrorists aren’t driven by social, economic, or other grievances, rather by a fanatical worldview.

The phrase that the “Arabs are resorting to violence” is disgraceful and blames the victim.

Tuesday, Yom Shlishi, a doubly good day in the Torah, Esav’s hands tried to silence Yaakov’s voice.

Because of the disparate nature of the perpetrators, who are also relatively young, and given the lack of more traditional targets and the reverence Palestinians have for their homes, one now hears talk of Israel returning to a policy of destroying the houses of terrorists’ families.

In any event, the Constitution gives Congress what is popularly described as the “power of the purse” – that is, the power to raise revenues through taxation and to decide how the money should be sent.

It is difficult to write about such a holy person, for I fear I will not accurately portray his greatness…

There was much to learn from Judge Kramer and the examples he set remains a source of inspiration and a resource from which to learn. He was and remains a great role model.

More Articles from Daniel Greenfield
Queen_Carolyn_of_Ladonia-317x350

It’s Time for Israel to Recognize the Royal Republic of Ladonia!

467976-b437d904-1dd3-11e4-96c6-79c9953f9ece

Dead Yazidi children won’t inspire any protests or much in the way of outrage.

It’s because in Gaza, Hamas and the UNRWA are the same thing.

Obama went to begin the Arab Spring in Egypt which is still his target; Israel is just the lever.

It is not Cain’s fault that he kills. It is Abel’s fault that he builds.

No matter what the PLO did, you blamed Israel. Like you blamed America, no matter what the Viet Cong did.

Passover is a road that we still travel, a long journey from slavery to freedom.

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: