web analytics
August 21, 2014 / 25 Av, 5774
Israel at War: Operation Protective Edge
 
 
At a Glance
InDepth
Sponsored Post
Jerusalem Mayor Nir Barkat (L) visits the JewishPress.com booth at The Event. And the Winners of the JewishPress.com Raffle Are…

Congratulations to all the winners of the JewishPress.com raffle at The Event



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
Prime Minister Binyamin Netanyahu.
Netanyahu Praises ‘Meticulous Intelligence, Precise IDF Operational Abilities’
Latest Indepth Stories
ZIM Piraeus in happier days. (Image: ShipSpotting.com user b47b56)

ZIM Piraeus isn’t Israeli-owned or flagged, incidentally, it is Greek operated.

Prime Minister Binyamin Netanyahu.

Foolish me, thinking the goals were the destruction of Hamas thereby giving peace a real chance.

Sgt. Sean Carmeli, ZT"L

The free-spirted lifestyle didn’t hold your interest; the needs of your people did.

And why would the U.S. align itself on these issues with Turkey and Qatar, longtime advocates of Hamas’s interests?

Several years ago the city concluded that the metzitzah b’peh procedure created unacceptable risks for newborns in terms of the transmission of neo-natal herpes through contact with a mohel carrying the herpes virus.

The world wars caused unimaginable anguish for the Jews but God also scripted a great glory for our people.

Judging by history, every time Hamas rebuilds their infrastructure, they are stronger than before.

His father asked him to read Psalms from the Book of Tehilim every day.

(Reposted with permission from author’s website) Moderate truth-teller Daniel Pipes (Dream) has further moderated his stance on Islam by actually entertaining the idea of “Moderate Islamism”, with Andrew C. McCarthy- whom I’ve debated about this- giving it some credence. We’ve gone from Naming the Enemy -Nazism, Communism- to Renaming the Enemy – “Islamic Totalitarianism”, “Radical Islam”, “Islamism”, […]

Maimonides: “Your 1 mitzva may tip the scales and bring redemption to the entire world and creation”

Jerusalem has been aware of the importance of China to its growth and security.

In other words, how by any rational playbook can one even begin to explain anti-Semitism?

Israel has nine Iron Domes, but you Mr. Hannity are the tenth.

Entire movements within “orthodoxy” propagate a Judaism of outlandish folklore and Jewish mysticism

The Rebbetzin began campaigning to increase public awareness of the importance of saying Amen.

More Articles from Daniel Greenfield
467976-b437d904-1dd3-11e4-96c6-79c9953f9ece

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

UNRWA Rocket Logo

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.

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

    Latest Poll

    Do you think the FAA ban on US flights to Israel is political?






    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: