Many Americans confuse corporatism with capitalism
December 3, 2008 · 9:20 AM
It seems that many people in our society have confused corporatism with capitalism. This is unfortunate because it has mislead many socialists into thinking that more government regulation can repair the problems that corporatism has created. True capitalism can only work well in a free market economy. Our corporate manipulated market is far from a free market economy.
Corporatism is where corporations manipulate the marketplace through laws which they often write. These laws give certain corporations an unfair advantage in the marketplace. They manipulate legislators through lobbyists and campaign contributions getting them to sponsor laws that tip the table in their favor. Thus, the people’s government is being used by private corporations who are large enough to fund lobbyists and campaigns, to destroy the free market.
Laws have been written to break up monopolies because such monopolies have proven to destroy the free marketplace. Capitalism can not work where there is no competition. Corporatism is even more sinister than private monopolies because it uses the people’s legislators to make laws that essentially give monopoly powers to certain companies. This is why so many small business owners see government regulation as the problem. Corporatism destroys the free market place, while Capitalism needs it to survive. The two are at odds, just as corruption is at odds with freedom.