Who Broke My Economy?

As the debacle in Washington continues, it is becoming increasingly apparent that our economy is broken. Rather than creating a free market, Capitalism has created a host of monster corporations whose fates affect the entire world economy. The spectre of Socialism looms large in our future. What went wrong? Why can our economy not sustain itself without periodic government bailouts (1970, 1971, 1974, 1975, 1980, 1984, 1989, 2001)? This article gives a compelling answer that is worth a read:

"Given its instabilities, Capitalism must, perforce, find some way of stabilizing itself. Belloc argues that there are only three stable solutions: slavery, socialism, or wide-spread ownership of property, (or some mixture of the three.) “To solve Capitalism you must either get rid of restricted ownership, or of freedom, or of both.” Of the three solutions, slave societies have shown themselves to be highly stable over long periods of time, but this solution is precluded by our Christian heritage. But the third solution, what Belloc calls the “proprietary state,” is regarded as untenable by the intellectual and political elites, which leaves only the second solution, some sort of socialism. Thus in practice Capitalism breeds a collectivist theory which leads to a servile state. The transition to socialism follows the line of least resistance because nothing really changes when the state buys up the waterworks or the rail lines. But socialist practice does not really mean socialism. In practice, socialism merely means increased regulation, a solution that appeals to both corporate interests and socialist “reformers.” Although the rhetoric is different, the results are the same. The “socialist” reformer continues to pile regulations on top of big business, a situation big business is more than content to see, because in return these regulations serve as entry barriers to potential competitors and thereby guarantee greater security from competition and hence greater security of profits. In turn, the capitalist becomes increasingly responsible for the welfare of the workers in return for a greater security of property and profits. In the end, you have neither socialism nor Capitalism, but servility, the servile state. The practical result of all of this is an increasing dependence of workers on the government and corporatist solutions. Health care, unemployment insurance, and retirement benefits pass from control by the individual to control by the corporation or the state."

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