Coming Economic Dictatorship
by Bill Sardi: Free
Markets and Blindness
Ho, ho, Janet
in the UK’s Telegraph, predicts the acceleration of what
is already underway – the plunge towards an economic dictatorship.
And her biting article provoked over 250 British readers to respond.
Daly gets right
to the point. She says: "No government in what used to be called
‘the free world’ seems prepared to take the steps that can stop
this inexorable decline. They are all busily telling their electorates
that austerity is for other people (France), or that the piddling
attempts they have made at it will solve the problem (Britain),
or that taxing "the rich" will make it unnecessary for
government to cut back its own spending (America).
Then Daly takes
a bite out of the leg of liberals by saying: "Many on the Left
will finally have got the economy of their dreams – or, rather,
the one they have always believed in. At last, we will be living
with that fixed, unchanging pie which must be divided up ‘fairly’
if social justice is to be achieved."
Daly goes on
to say: "Judgments will, of course, have to be made by the
state since there will be no dynamic economic force outside of government
to enter the equation. Wealth distribution will be the principal
– virtually the only – significant function of political life. Is
this Left-wing heaven," she asks?
her own question, saying: "Well, not quite. The total absence
of economic growth would mean that the limitations on that distribution
would be so severe as to require draconian legal enforcement: rationing,
limits on the amount of currency that can be taken abroad, import
restrictions and the kinds of penalties for economic crimes (undercutting,
or ‘black market’ selling practices) which have been unknown in
the West since the end of the Second World War."
to say that austerity programs will not just be confined to limits
on government spending but "genuine falls in the standard of
living of most working people, caused not just by frozen wages and
the collapse in the value of savings (due to repeated bouts of money-printing),
but also by the shortages of goods that will result from lack of
investment and business expansion, not to mention the absence of
cheaper goods from abroad due to import controls." If true,
Americans had better start stocking up on wine, coffee, bullets,
again, saying: "It is just the logical conclusion of what will
seem like enlightened social policy in a zero-growth society where
hardship will need to be minimized by rigorously enforced equality.
Then what? …. Uniform levels of poverty that are made necessary
by dead economies – will spread throughout the West, and have to
be contained by hard-fisted governments with or without democratic
Recall it was
Winston Churchill who said: "Socialism is a philosophy of failure,
the creed of ignorance, and the gospel of envy. Its inherent virtue
is the equal sharing of misery."
Daly says there
is one last hope. "But reduced government spending accompanied
by tax cuts (particularly on employment – what the Americans call
"payroll taxes") could stimulate the growth of new wealth
and begin a recovery. Most politicians on the Right understand this.
They have about five minutes left to make the argument for it."
What is both
enlightening and alarming are the responses to Daly’s article by
British readers of her column. Some are avowed socialists who are
all too ready to belittle her message. Here are a couple of those
comments, pointed at Daly:
never was your strong point as this hopelessly inadequate piece
suggests. Greece has spent the last five years proving austerity
does not work. So what does Janet call for? Errrr, austerity everywhere.
ever, offers us two choices both of which are barking mad. We
are supposed to plump for the slightly less mad idea. Cutting
government spending in a perma-slump is stupidity beyond belief.
It is time the neo liberal dinosaurs got out of the way to let
the new ideas in. Modern Money Theory leads the way. Austerity
is not necessary and more and more people know this.
quite understood those who oppose efforts to bring government spending
under control. The only alternative to a balanced budget (spending
limited by tax revenues) is the raising of taxes which represents
wealth transfer not wealth creation, or the printing of money, which
does not create wealth it dilutes the value of money for all.
It creates debt that can never be repaid.
tax rates in the US have varied from ~35% to 91% in the past few
decades, government revenue as a portion of the economy has remained
relatively constant – about 7% to 9%. Tax
increases do not lead to higher total income tax receipts.
that responded to Daly’s article was against free-market capitalism.
Here is a typical comment:
have identified the crime, but not the culprit. It is free market
capitalism that has led us to where we are, specifically the economic
policies of Friedman and Hayek gradually introduced following
the upheaval caused by the oil crisis in the 1970s….. The free
market has failed.
But does one
call free market capitalism banks and businesses that are mismanaged
and not allowed to fail? Is free-market capitalism exemplified by
government-guaranteed loans to ventures like Solyndra? Is free market
capitalism represented by Congress, which shuns cheaper alternative
energy sources like natural gas, in favor of petroleum? All the
US need do is pass
proposed legislation that would offer tax breaks for those who
would create natural gas filling stations and this would represent
a trillion-dollar fix to the American economy. No, America is not
a free market country. It is dominated by special interests that
have bought off Congress in what has morphed into crony capitalism
to outright fascism.
rails against capitalism, but correctly fingers corrupt capitalism:
How can the
west thrive, when its corrupt political elite (and their friends
in big business), across these past 30 years, have handed all
our manufacturing jobs to Asia. Western companies make far more
profit, by making their plasma and LED televisions in Korea, for
peanuts, and then selling them for big bucks in the west. It's
totally immoral, on every level….. and to make matters worse,
our big businesses will often avoid paying British taxes, by basing
their headquarters in some tax haven. Janet Daley needs to address
corrupt capitalism, and stop pretending that socialism is to blame.
never quite understood the criticism of globalization, as if it
could have been avoided. Some economy in the world was going to
outsource its labor to Asia and it might as well have been America
and Great Britain before it was some other country. Buying cheaper
goods has spawned the US consumer economy. Buying an item for $1
from China and selling it at $10 retail in the US is $9 value added.
Ralph Nader is urging the President to put a stop to "corporate
welfare," if the US raises tax on corporate profits it
will simply doom American business to failure. Countries that tax
less corporate profits less than the US will prevail. Why do you
think Google, Apple, Microsoft, Amazon were all spawned in America?
(Answer: because of a more favorable business environment.) If the
US doesn’t provide ta breaks for its farms and industries, other
countries will. America has to remain competitive.
got it right, like this one:
capitalist system that we've been laboring under for the past
80 to 90
years has caused nothing but misery for many. It
has destroyed our economy and
monetary system; it has destroyed
the real entrepreneurial small business that
jobs, and as a consequence has led to a collapse in social
and jeopardized the chance of the individual improving their situation.
there would be those who advocate more taxes, like a value-added
tax (VAT) that this blogger proposes.
all tax raised by VAT IS the way to go... we the consumers pay
all the tax income, corporation, value added, it would solve the
problem of companies paying tax abroad.
The VAT would
be like what Japan unofficially had for decades. All retail products
were distributed through layers of vendors who marked up goods at
each level. You couldn’t afford to buy clothing, kitchen utensils,
everyday things. Japan had full employment under this system but
a very poor consumer economy. When they allowed consumer goods to
be sold without having to go through layers of distributor markups,
consumer spending rose but with it came a modicum of unemployment.
critic chimes in:
capitalism implodes because of the greed of bankers and suddenly
it's all the fault of socialism (where, let me see)?
There is some
truth spoken here, but "de-regulated" simply means allowed
to break laws. There are existing laws that could have jailed every
banker at the too-big-to-fail banks, and money-laundering and imprudent
lending practices would be examples.
That the masses
have been lured by welfare to gain votes, at the cost of freedom
and liberty, is the wealth re-distribution game that is currently
being practiced. There is little incentive to work when unemployment
benefits are extended for 2 years and welfare in the form of rent
subsidy, food stamps and Medicaid is handed out willy-nilly.
Judicial Watch, the government spent enough on welfare last year
a check for nearly $60,000 for each impoverished household it
provided with benefits. The problem is that this welfare money is
not coming from the rich. One blogger correctly explained where
the welfare money is coming from:
told the masses that they could get rich people's money. That
someone lied. They are TAKING the money from the MIDDLE class.
Or as another
blogger said it:
right politics has supported the two pillars of state capitalism;
big business and big government. They're not going to change (at
least not without a fight). The system they have created has stripped
us of our liberty, our wealth, and our right to determine our
own lives. It's time the system was put out of our misery!
Yep, we have
the elites who can buy off government to protect their wealth, and
the poor who receive what amounts to government bribes for votes,
leaving middle-class working family in between. After the results
of the last election, I think middle-class Americans are beginning
to realize they have been left holding the empty bag. We have a
President who protects those at the top and the bottom. God help
you if you are in between.
him mail] is a frequent writer on health and political
topics. His health writings can be found at www.naturalhealthlibrarian.com.
latest book is Downsizing
© 2012 Bill Sardi Word of Knowledge Agency, San Dimas, California.
This article has been written exclusively for www.LewRockwell.com
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