Market Capitalism is the natural way man interacts with others to satisfy his needs. It is the oldest economic system in existence. Market Capitalism, based on Nature’s Law of “spontaneous order”, has been the dominant economic system in America since its settlement over four hundred years ago. In a spontaneously ordered economy such as ours, millions of people make billions of economic decisions daily, based on their perception as to what is in their own best interest. The principle of spontaneous order arranges these decisions into a natural system that results in the highest possible level of prosperity for the maximum number of people.
The principle of spontaneous economic order is the foundation of our capitalist system. The liberty of individuals to make their own personal economic decisions and live with the consequences is protected by the Constitution in Article I, Section 10 and defended by Jesus in Matthew 20: 1-15. In order for it to function properly requires a relatively honest and moral people. One of the legitimate functions of state and local governments is to establish and enforce laws to protect the public from dishonest, unscrupulous and fraudulent business practices, and little else. At the federal level, the national government is given the power to provide the same protections for buyers and sellers across state lines. That is the primary meaning of the “interstate commerce clause” in Article I, Section 8 of the Constitution.
At the other end of the economic spectrum is the centrally planned economy. A centrally planned economy is absolutely necessary to the existence of a socialist or communist society just as a free market economy is essential to maintaining the freedoms and liberties of a free society. In a centrally planned economy, government bureaucrats attempt to predict needs and organize resources to provide for an equal distribution of goods and services to everyone. The result is inefficiency, shortages, and a general decline in overall prosperity.
Central planning does not and cannot work because no individual or collection of individuals has the intellectual capacity or management skills to anticipate and fulfill the needs of any group of people larger than those of an individual family. Even that does not always result to everyone’s satisfaction. The current trend of the American government away from free market capitalism and toward the socialist ideal of a centrally planned and bureaucratically directed economy is not sanctioned by our Constitution or by the Judeo-Christian traditions of our culture
Crony Capitalism is the “bridge” between a free market economy and socialism or communism. It occurs when there is a “marriage” between the government and the economy. Just as marriage between government and religion always ends in disaster for both, so marriage between government and the economy eventually ends in disaster. Crony Capitalism is a major cause of the unemployment crisis and economic dislocation prevalent in America today.
Crony Capitalism gained its foothold in America at the beginning of the progressive era at the turn of the twentieth century. It has progressed during the last few decades to the point of corrupting both our political and economic systems. Major businesses and entrepreneurs must cultivate the favor of government in order to survive and prosper. One of the most common legal means for accomplishing this is by funneling money into the electoral system via campaign contributions to politicians who make the laws and who still maintain some degree of influence over the bureaucracies that govern our economy.
This tenuous and corrupting state of dependency between government and business was made necessary by the creation of the bureaucratic “shadow government” that governs an ever increasing portion of our personal and economic lives. The bureaucracies that make up this bureaucratic state operate with powers equivalent to those given by the Constitution to the Executive, Legislative and Judicial branches of the federal government. Traditionally they were headed by Cabinet level Secretaries appointed by the President and confirmed by the Senate. None of the officials in the bureaucratic state is accountable to the public through the election process.
In recent years, especially under the Presidency of Barack Obama, the supervision of these agencies has slowly shifted from the Secretaries to Czars appointed by the President, unconfirmed by the Senate and accountable to no one but the President. This arrangement sets up a fertile atmosphere for the establishment of a dictatorial tyranny emanating from the Oval Office itself. As draconian regulations and fines, coupled with exorbitant taxation forces many companies into bankruptcy, those deemed “to big to fail” are bailed out with taxpayer money, making them easy targets for government takeover. The regulatory-taxing-squeeze-play on the economy has two highly negative consequences for the American People. Many companies escape America’s oppressive business climate by moving their operations overseas, eliminating American jobs. Those who do not move, find themselves short of capital for expansion and growth, resulting in fewer jobs being created while increasing job losses.
If progressive Democrats and establishment Republicans retain control of government after the next election, we are in danger of losing forever, any control we have left over the affairs of government. There are less than six months left until Election Day for educating, informing and persuading our friends and acquaintances.