Capitalism is Great

Capitalism is a great economic system. It can foster a better life. Chemotherapy is a great medical advancement that has prolonged life. But we clearly are aware Chemotherapy is also extremely hazardous, can be a killer and must be closely managed.

 

The problem with Capitalism is that political systems are ill equipped to manage it. Inevitably the captains of Capitalism will acquire control of the mechanisms of government. Once in control they will amass greater wealth and power in arithmetic proportions.

Capitalism works best as small businesses of single proprietor Mon and Pa operations. It even works well in medium size businesses of a few hundred employees. It breaks down in terms of real social value as larger corporations, conglomerates, and consortiums. Governments cannot effectually manage these entities for any length of time. That is when capitalism is the like Chemotherapy to society. Often the constraints we see government enact on them is really a power struggle among themselves. It is a case of to one entity or industry using government influence to victimize another for advantage.

In America there are some gapping mistakes made in government management of capitalism. At the top of the list is granting corporations the legal standing of a person. It dilutes responsibility for actions and makes it extremely difficult to hold individuals accountable. It also allows corporations to use their wealth and power to a disproportionate advantage in the legal system. Similar magnitude of leverage can only be achieved through class actions or unionization. It is no accident that class actions and unions are under attack by the politicians and judges. They owe their office to business and industry.

Second is not requiring all candidates for presidential and congressional elections to use public funds. This will lessen the influence of special interests. Unrestricted use of money in elections is not free speech.

 

Next on the list is not allowing campaign money to be given anomalously nor in any quantity by wealthy individuals, business and industry. In one recent California ballot initiative most of the campaign money was from outside the State.

Require investors in mergers and acquisitions to retain their holdings for at least 4 years. This will stop the “flipping” that has occurred with corporate America chasing instant Wall Street gratification.

Regulate hedge funds, CDCs and exotic financial schemes.

Divest investment banking from investor banking.

Make Credit Bureaus and the businesses that use their information fully libel for the information they provide or use.

Return the personal bankruptcy laws back to pre-2000. Usury lending schemes by banks and credit card companies would be much less attractive if they were more at risk.

Do not allow credit cards and other businesses to base their acceptance or rates on the actions of an individual with another company. They themselves must be victimized. This is another financial scheme that is used purely to drive up rates and profits.

Cap credit card interest rates at an absolute rate of 10%. This will help prevent credit bubbles and speculation. 

Require all mortgages, that the holders wish to do so, to be recast at current market value plus 10%. This will be like putting a stake in the heart of the banking industry vampire spectators that caused the mortgage crisis.

Require all government Defense and Black Opts contracts to have to be re-approved and funded each year on an individual basis with public debate. Each year that a government contract is over budget and behind schedule, the Contractor should be penalized 10% of the contract value. Do not allow the Pentagon to manage this process. Have it in a fully open public forum. Do not allow claiming State Secrets to cloak spending in darkness. Reduce Defense spending to the military industrial establishment by half immediately [primarily speculative weaponry which uses the lion’s share of the budget].

Do not allow lobbyist to write legislation, like they did with the Medicare Act in 2003. It is unbelievable that the legislation bars government from using its purchasing power to lower pharmaceutical prices to recipients.

Businesses should have a life cycle. We have allowed businesses and whole industries to avoid a normal life cycle through patents and copyrights. We have cemented their continued existence and froze out incumbents that may have new and better business models for the public. The most dramatic case is the Patriotic Act. It is granting business and industry unprecedented power to control technology. If today’s laws were in place at the time the telephone was invented, we would still be using Western Union telegraphs for the bulk of communication. Each telephone would have to be registered with Western Union and pay them an operating fee. The telephone, and not to mention the television, would be a narrow niche market. Do you realize that if DVRs [Digital Video Recorders] such as TIVO and VCRs were invented after the Patriot Act they would be effectively barred from public use?

Never forget Capitalism is to serve the people and not the other way around. Treat capitalism like a two year old in an antique ceramics shop. The child will likely grab at everything within reach. The results will be disastrous.