In 2008 the slogan “Too big to fail” spoken by President Bush’s treasury secretary Henry Paulson was a shocking acknowledgement that the federal elites no longer felt the need to pretend they believed in capitalism. The merging of central government and international corporations through the revolving door process has become undeniable.
A major tenant of capitalism is that any business no matter its size will fail when it is unable to pay back the business’ liabilities. This elimination of non-profitable enterprises cleanses the market of inefficient businesses. In its place, other newer or smaller businesses will expand to more effectively serve the customers of the failed corporation.
“Too big to fail” is antithetical to capitalism and a gateway to a centrally controlled economy and repressive state. It is a corruption of capitalism.
Big government, like large corporations, even with the economy of scale has a difficult time controlling the explosion of bureaucratic expansion and waste. Bureaucrats are incentivized to build their kingdoms rather than be efficient. By restricting capitalistic competition it will blur any strong contrast or highlight the government inefficiencies of inferior service and products.
In America, the laws of a free marketplace are not being allowed to prevail. Our bloated federal government has gained enormous control of the economy through laws and regulation. The government-connected corporations are given special waivers to bypass regulations that other companies have to meet, thus giving them an unfair advantage in the competition. Bundled campaign donations earn ambassadorships or access to the oval office. The offering of top corporate paying positions to political operatives in exchange for preferential legislation is becoming common practice.
The smaller the business the easier it is to monitor and supervise its employees to insure maximum agility. The large, international corporations are on the other side of this continuum and have the most difficulty supervising their complex structure. The diversity of operations and multiple sites all over the world creates an incredible challenge to maintain a streamlined operation.
This same phenomenon takes place in government agencies. We have witnessed this firsthand in Obamacare. Attempting to manage 1⁄6 of the nation’s economy has been a disaster. Even with ordering private insurance companies to artificially lower their insurance rates to cushion their insurance policies, the price and co-pay have risen.
In this symbiotic relationship government winners are chosen by how much support they give the administration. This can be through campaign contributions and lucrative jobs they are offering government operatives. Losers are those who do not pay to play.
This marriage between major corporations and the federal government has recently been called “crony capitalism” and during the WWII period, “fascism.” The National Socialistic German Worker’s Party used corporations to solidify their power.
Every law abiding patriotic citizen should protest the confiscation and mishandling of the people’s money. The fear mongering of a global economy collapse by our D.C. government should have been dismissed as propaganda to protect these corporate and government elites’ special financial and power interests.
Americans should not hand over to our central government the power to pretend to micromanage our economy. The picking of winners and losers and the printing of “stimulus money” by the Federal Reserve does nothing other than increase potential corruption. The devaluation of our currency by “Quantitative Easing” is robbing a percentage of our purchasing power.
Anytime we hear “Too big to fail” we should be aware our D.C. government is selling this phony rationale to justify its expansion into every aspect of our lives. We need to refuse to be robbed by power seeking politicians that are only concerned with their own self-interest rather than the people’s.
This game has become transparent. The “Too big to fail” policy is an attempt to transform the United States from a constitutional republic to a political elite control of the economy and rejection of our Constitutional Republic.
Our founders brilliantly provided us with a constitutional blueprint to prevent us from going down the path of elites controlling the government instead of the people controlling it. As these great men understood, large government siphons off the treasury and the freedom of the people.
Domenick Maglio, PhD. is a columnist carried by various newspapers, an author of several books and owner/director of Wider Horizons School, a college prep program in Spring Hill. Visit him at www.drmaglio.blogspot.com or email him at firstname.lastname@example.org.