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Showing posts with label crony capitalism. Show all posts
Showing posts with label crony capitalism. Show all posts

Thursday, January 31, 2013

The coproate welfare queen debutante ball


This is the main social vent of the crony capitalism. It's held in Dallas every year.

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Thursday, April 26, 2012


The politics between the Democrats and the GOP has its roots in class warfare that has exited in the US since this nation was founded.

The Republican agenda has been to scale back or eliminate social programs like Social Security, Medicare, food stamps and so forth. At the same time, the GOP has provided tax cuts to Fortune 1000 corporations and to the affluent.

This can be described as crony capitalism or corporatism, but it is essentially the American version of fascism. 

Fascism can take many forms starting with the statist version of Mussolini and the bottom up version of fascism the Catholic church advocated during that era.

The US version assumes that private enterprise should call the shots in government and our corporate leaders like Mitt Romney should be our political leaders as well because government doesn't understand private enterprise. Of course, there is no Constitutional basis any of these ideas.

When the Founders wrote the constitution, there were few corporations and the government restricted them.

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Saturday, February 25, 2012

Corrections Corporation of America has a deal you can't refuse


The ACLU noticed that the Corrections Corporation of America (CCA), the largest private prison company in the country, sent a letter to 48 state governors offering to buy up their state-owned and operated prisons.

It offering cash-strapped states a quick infusion of money by taking control state-owned prisons.

Does this sound too good to be true?

It is.  The state would have to sign a 20-year contract and promise a 90 percent occupancy rate over that period.

In other words, CCA is asking states to commit to maintaining prisons filled to capacity. This makes sense, since CCA is a for-profit business whose success depends on keeping prisons full.

In fact, in a 2010 Annual Report filed with the Securities and Exchange Commission, CCA stated: “The demand for our facilities and services could be adversely affected by

…leniency in conviction or parole standards and sentencing practices.

In other words, CCA has much to gain from policies that lock up people. 

Rightardia has pointed out that privatization may look good in the short term, but in the long term it is more expensive. This is why CCA wants a 20-year contract. 

The state will have to appoint a public services commission to oversee the private prisons and provide and operations and maintenance subsidy to operate the prisons. 

Almost all of the studies that have compared operation of private to public prisons have been inconclusive, although CCA will suggest otherwise. 

Who would be the big losers in prison privatization. 
  1. the taxpayer will end up paying more to operate these prisons because of higher overhead costs. 
  2. the prison staff and guards will see big losses in pay and lose their pensions. 
Who will be he big winners? 
  1. CEOS and top executives will get big salaries and bonuses at the expense of the workers.
  2. shareholders will also benefit. 
Rightardia views the prison privatization scheme as more crony capitalism. 


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Sunday, February 5, 2012

Cryptlogon: US economy is not a free market



Columbia University Professor Edmund S. Phelps, who won the 2006 Nobel Prize in economics, and his coauthor, Saifedean Ammous, assistant professor of economics at the Lebanese American University, write that the U.S. economy ceased to be a free market some time ago.

Cryptlogon points out:


This system . . . is . . . an economic order that harks back to Bismarck in the late nineteenth century and Mussolini in the twentieth: corporatism.

Corporatism is a polite word for fascism. Crony capitalism is another term for corporatism.

In various ways, corporatism chokes off the dynamism that makes for engaging work, faster economic growth, and greater opportunity and inclusiveness. It maintains lethargic, wasteful, unproductive, and well-connected firms at the expense of dynamic newcomers and outsiders, and favors declared goals such as industrialization, economic development, and national greatness over individuals’ economic freedom and responsibility. 

Today, airlines, auto manufacturers, agricultural companies, media, investment banks, hedge funds, and much more has [sic] at some point been deemed too important to weather the free market on its own, receiving a helping hand from government in the name of the “public good.”

Why are businesses "too big to fail?" It's because the US Attorney General's Office, past and present,  is not aggressively pursuing anti-trust prosecution against these corporations that are "too big to fail." 

graphics source:   http://www.the-99-declaration.org and MAC Life

source:  http://cryptogon.com/?p=27405

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Monday, January 9, 2012

He's not a job creator, he's a corporate raider

The one per cent presidential option

Quotes from Think Progress about Mitt Romney:


JON HUNTSMAN: “What’s clear is he likes firing people, I like creating jobs.” [1/9/12]

NEWT GINGRICH: “Those of us who believe in free markets and those of us who believe that, in fact, the whole goals of investment is entrepreneurship and job creation, would find it pretty hard to justify rich people figuring out clever, legal ways to loot out a company.” [1/8/12]

RICK PERRY: “Now, I have no doubt Mitt Romney was worried about pink slips — whether he was going to have enough of them to hand out because his company, Bain Capital, of all the jobs that they killed. I’m sure he was worried that he would run out of pink slips.” [1/9/12]

GINGRICH: Bain Capital was a “small group of rich people manipulating the lives of thousands of people, and taking all the money.” [1/9/12]

PRO-GINGRICH SUPER PAC: “A story of greed, playing the system for a quick buck. A group of corporate raiders led by Mitt Romney, more ruthless than Wall Street. For tens of thousands of Americans, the suffering began when Mitt Romney came to town.” [1/9/12]

GINGRICH: “I would just say that if Gov. Romney would like to give back all of the money he’s earned from bankrupting companies and laying off employees over his years at Bain, that I would be glad to listen to him.” [12/12/11]

Romney is the obvious choice of the one per cent, the Establishment and the country club Republicans. These politicians want to make America more"business friendly."

Of course, this is not the real job of an elected government official. The preamble to the Us Constitution explains:

We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defence, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America. 

Politicians should be catering to Americans citizens, not special interests. What the GOP does when it takes the presidency is predictable. It is rarely about the needs of middle Americans. 

The Washington Post looked at an Office of Management and Budget (OMB) analysis, and a performed a detailed look at specific regulatory decisions, 

The post shows "how an administration can employ this subtle aspect of presidential power to implement far-reaching policy changes. Most of the decisions are made without the public attention that accompanies congressional debate. 

Under Bush, these decisions have spanned logging in national forests, patients' rights in government health insurance programs, tests for tainted packaged meats, Indian land transactions and grants to religious charities."

When Republicans take the White House: 
  1. The National Labor relation Board becomes partisan and ineffective.
  2. During the Bush administration both Department of Labor and Occupational Health and Safety administration (OSHA) inspector positions were eliminated. 
  3. Defense spending greatly increases. The defense one per centers are more wealthy than the bankers because of the government largess,
  4. Jobs are off-shored and the H1-B visa  quota is increased. When Bush was president, he rarely talked about unemployment that was increasing. His emphasis was on worker productivity; i.e., do more with less. 
  5. Environmental regulations are loosened which is why the Bush administration wanted to allow the energy industry to drill in a national Alaskan park.
  6. Antitrust cases are put on the back burner,.The strong antitrust case against Microsoft was dropped. However, In March 2004, the European Commission ordered Microsoft to pay $794 million, the largest fine ever handed out by the EU at the time. In addition, the European Commission imposed a fine of $1.44 billion on Intel Corp. for violating EC Treaty antitrust rules on the abuse of a dominant market position. 
The Bush administration looked the other way at both corporations. Both corporations were too big to fail.

This is why we have crony capitalism which is a polite word for fascism in the US. People like Mitt Romney suggest only one per cent business leader like himself are qualified to run the country . Only corporate raiders like himself understand the economy.

Well, that is the "pious baloney" Mitt would like you believe.

sources:


Wednesday, November 23, 2011

What is crony capitalism?


Republican operatives like to suggest a false duality: if you aren't for capitalism you must be a socialist or a communist. 

The Occupiers aren't against capitalism, per se, they are against the perverted version of capitalism we have in the US. 

Crony capitalism is a term describing a capitalist economy in which success in business depends on close relationships between business people and government officials. It may be exhibited by favoritism in the distribution of legal permits, government grants, special tax breaks, and so forth. Crony capitalism is believed to arise when political cronyism spills over into the business world; self-serving friendships and family ties between businessmen and the government influence the economy and society to the extent that it corrupts public-serving economic and political ideals.

What can be done to curb crony capitalism. We could reform the political system so that there are national plebiscites to make the country more democratic. 

We could tax the income, capital gains and the estates of the affluent to reduce their political influence. 

Of course, we would be in a perpetual cat fight with the GOP. 

Since we are there already, who cares! 

source: Eric Vieth, Dangerous intersection  and Wikipedia


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