web analytics
August 29, 2015 / 14 Elul, 5775
At a Glance
InDepth
Sponsored Post


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/ These opinions do not necessarily reflect the opinion 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.

Current Top Story
Swiss Amb. to Iran Giulo Haas presents his credentials to Iranian Pres. Rouhani
‘US and Iranian Cartoon Doves’ Shown Defecating on Bibi by Swiss Amb to Iran
Latest Indepth Stories
Ben Cohen

Corbyn leading the Britain’s Labour Party polls, describes Hamas & Hizbullah as England’s “friends.”

PA Chairman Abbas proudly celebrating with released terrorists.

The convicted murderer was released from Israeli prison with more than two dozen other sociopaths

New Israel Fund

JCF is a donor/supporter of The New Israel Fund which supports BDS & wants IDF soldiers prosecuted

Moshe Feiglin

The ‘Peace Industry’ promotes its adherents; weak leaders, both military & political, is the result

The conundrum for US Labor Zionists: Lobbying for Iran deal while Israel’s Left lobby’s against it.

What does the Torah want from our small nation described as “they who struggle with God & with men”?

Mr. Nadler’s support for the deal is a naked political gift to a president who has defied logic in his quest to reinvent international affairs according to his ideological inclinations.

In practical terms, the proclamation surely makes a compelling argument:

BDS activists are not shy about discriminating against Israelis simply because they are Israelis –

A Federal Ct Judge ordered the PA to post JUST $10 million due to interfering letter from State Dept

Osakwe, like many other students at the CAMERA conference, described an extremely hostile campus environment when it comes to the issue of Israel.

Many people view a letter or manuscript by a chassidic rebbe or the Chofetz Chaim as intrinsically holy.

Key Iran Lobby figures had been major donors to both Biden and Kerry when they were in the Senate,

Abbas’ resignation has now sparked speculation about who will fill his place if and ‎when he leaves

More Articles from Daniel Greenfield
U.S. Senate

Key Iran Lobby figures had been major donors to both Biden and Kerry when they were in the Senate,

Obama on Iran Deal

If the Iran deal passes, Obama’s WH becomes world’s leading financier of terrorism against Americans

We have met the enemy; He is in the White House.

After obsequious claims of devotion to Israel, Obama took to criticizing Israel on peace process

The gap isn’t between Israeli and American Jews-it’s between American Jews and the rest of the world

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

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.

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: