Our power-grubbing politicians never shy away from blaming the shortcomings of capitalism for the “Great Recession” of the 21st Century. The old mantra goes, “Capitalism is a flawed system that requires government intervention to alleviate the suffering caused by its shortfalls.” Supported by their tax dollar dependent cronies in academia and their big government loving mouthpieces in the mainstream media, our ruling elite has been effective in socializing the masses that they know what they are talking about. It is, of course, all an attempt to justify expanding the size of government even more, so there is more for the politicians to give away to their faithful supporters.
Capitalism did not cause the financial crisis that we are still mired in some 29 months after it began; crony capitalism did. Crony capitalism is loathed by every proper capitalist because it is more akin to the corrupt socialist systems of the past than to true capitalism. In true capitalism, the primary responsibility of the government is to protect private property rights and prevent and punish fraud. How can a system that confiscates private property through taxes (income and property) and transfers that property to others (domestic and foreign welfare) be called capitalist? How can a system that takes from one to prop up the failure of another be called capitalist? In terms of fraud, how many bank loan officers and borrowers who provided false information on the mortgage applications that contributed to the crisis have been prosecuted and jailed? Uncle Sam has a weak record at best when it comes to exhibiting the qualities of a government operating in a capitalist system.
Instead, Washington has built a system based on favoritism and patronage. Look at “Too big to fail.” This should be translated into “Our Friends are the best.” Hundreds of billions, if not trillions, of taxpayer dollars, have gone into bailing out companies that in return can be counted on to contribute billions of dollars to Republican and Democratic campaign coffers. The rationale we were told is that if any one company went under our economy would fall off the cliff. Really, I don’t remember being airborne when Lehman Brothers was allowed to go belly up. “Too big to fail” was a hoax perpetrated on the American public so the politicians could repay their campaign benefactors. And they are at it again with their attempt to institutionalize “too big to fail” in financial reform legislation before the Senate.