“The myth of socialism is far stronger than the reality of capitalism. That is because capitalism is not really an ism at all. It is what people do if you leave them alone.”~~Arnold Beichman
Speaking recently at a Ford manufacturing plant in Chicago, President Obama made some telling remarks regarding the auto industry and the state of our market economy. To wit:
"The United States does not quit. We always compete...That's what we're doing with the U.S. auto industry."
And later on in the speech: "We are heading in the right direction."
Who is this "we" to whom the president is referring?
Being the government owns the controlling share of GM and has again bailed out Chrysler, the "we" is the government-sponsored monopoly that we call the American auto industry.
Calling it "Government Motors" is no longer a joke.
When large corporations and government collude to control production and the price levels, that is the antithesis of freedom in the marketplace otherwise known as free market capitalism.
In such government-made monopolies, consumer demand--you're choices and preferences in the market and other basic economic considerations--are subordinated to the central planning objectives of the state.
There is no room for competitors in such an economic environment, for the monopoly is established with the coercive power of government. It is a legalized cartel that brooks no pesky little competing businesses seeking the favor of consumers.
For perspective, consider how Mussolini called his government/corporate unholy collaborations "cooperatives" wherein production and planning was controlled by collaborating heads of industry supervised by the government. Call it fascism, corporatism, state-corporatism, socialism, or some variant of central planning authoritarianism if you like. One this is certain, this corporate/government collusion is a rejection of the basic premises of competitive capitalism.
It is interesting this speech was made at a Ford plant, being Ford is the only company that did not take bailout funds. Is the president implying Ford should become part of the corporatist team, to be part of the "we."
"We always compete." Sorry, Mr. President, but it is not competitive to prop up failing companies with tax payer funds, direct production for political and not economic reasons, and prevent would-be competitors from doing a better job in the market.
We the consumers and taxpayers on the short end of this monopolistic stick would prefer real competition in market. Were that to happen, we would have better cars and better government.
