Should Occupy Use Violence? I Dunno — Should the Cops?

From c4ss.org:

Back in the mid-1980s, when the African National Congress was still fighting the South Africa’s apartheid regime, I recall Secretary of State George Schultz testifying before some Senate committee. He clutched his pearls at the appearance that “some members of this body are speaking in favor of violence.”

Even then, when I wasn’t an anarchist or anything approaching it, I laughed myself silly. Just what, exactly, did he imagine those American troops were doing in Grenada? “We’re here from the Western Hemisphere Ladies Auxiliary, and here’s a fruit basket with some coupons for discounts at local merchants?” For that matter, what did he think those guys with the flintlocks were doing on Lexington Green?

In the official narrative, the question always concerns whether anyone and everyone but the state should engage in violence. The question of whether the state should engage in violence, or whether state violence should be evaluated in terms of the same standards of reasonableness as violence by nonstate actors, never crosses the threshold of visibility. The legitimacy of violence by the state is never even articulated as an issue.

That’s a shame. The state is not a mystical entity, a sum greater than the human beings making it up. The state is simply a group of human beings cooperating for common purposes — purposes frequently at odds with those of other groups of people, like the majority of people in the same society. And violent actions by an association of individuals who call themselves “the state” have no more automatic legitimacy than violent actions by associations of individuals who call themselves “the Ku Klux Klan” or “al Qaeda.”

The violent actions of the state deserve to be evaluated using the same criteria by which we judge the morality of the violent actions of any other grouping of individuals. Alexander Berkman, in “The ABC of Anarchism,” argued that the death and destruction caused by the institutionalized violence of the state was many times greater than that caused by anarchists or other revolutionaries. Who do you think has thrown more bombs — anarchists, or government military forces?

Despite all the mystification of “national security” and “national interest,” the interests served by the state’s military violence are every bit as particular as those served by any other violent actions carried out by other groups of individuals. The state is nothing but an association for armed violence on the part of those who make money at the expense of other people. As Howard Zinn said:

“In the history of secrets, withheld from the American people, this is the biggest secret: that there are classes with different interests in this country. To ignore that — not to know that the history of our country is a history of slaveowner against slave, landlord against tenant, corporation against worker, rich against poor — is to render us helpless before all the lesser lies told to us by people in power.”

So it is with all the hand-wringing over “violence” in recent confrontations between Occupy Portland and the Portland police.

Andy Robinson, a professor at Cambridge who specializes among other things in networked resistance movements, argues that there’s a very pernicious framing going on in news coverage of the issue. “There’s no mention of the fact that police have repeatedly, violently attacked Occupy protests which consisted simply of sit-downs and camp-outs. … The fact that police use violence routinely and with impunity is not mentioned.  In fact, police violence as such (as opposed to excessive brutality) is treated as uncontroversial. …  Protective moves such as using shields and face coverings are portrayed as proactively aggressive.”

Or as anarchist Occupy activist David Graeber says in response to Chris Hedges’ recent clueless attack, “the US media is simply constitutionally incapable of reporting acts of police repression as ‘violence.’ If the police decide to attack a group of protesters, they will claim to have been provoked, and the media will repeat whatever the police say … as the basic initial facts of what happened. This will happen whether or not anyone at the protest does anything that can be remotely described as violence.”

We saw Oakland mayor Jean Quan, with a straight face, quacking about protestors alleged to have violently invaded a YMCA building, when in fact they were desperately trying to escape through the building after police had “kettled” them and begun the wholesale use of chemical weapons upon them.

Such official lies by politicians and cops, Robinson argues, are a “psyop designed to conceal their own repeated use of violence. … People are quoted as being against ‘all violence’ without the implications for police violence being examined. It’s basically a double standard — we never see it questioned whether supporters of the status quo have a right to use violence (only whether the violence they use is excessive) … a bit like starting a debate, ‘should an invaded country use violence against the invaders,’ without mentioning the violence of the invaders or the act of invasion.”

This last comparison is telling, given the farcical entertainment we get every night on CNN. Iran, a country ringed by military bases garrisoned by a global superpower that spends nearly as much on its military forces as all the other countries in the world combined, constitutes a military “threat” to the country which is besieging it. And the beseiging country, which has military bases in half the countries of the world and has overthrown more governments than any previous empire in human history, is “defending itself.”

What’s more, if you look at the American “Defense” Department’s planning documents, the main “threat” presented by Iran is the horrifying possibility that it might be able to successfully defend itself against an American attack. Which attack, of course, would be entirely justified by the “aggressive” act of defying a direct order by the U.S. (or its UN Security Council proxy).

In this Orwellian conceptual world, the question of whether the state has the right to use violence doesn’t bear looking into. But in the real world, it does. The state is by far the greatest concentration of organized violence, and it almost always employs such violence for evil purposes — whether at Tahrir Square, Hama, or Oakland.

So if you’re arguing over whether Occupy should “use violence,” you’re asking the wrong question.

Anonymous Cash = Freedom

From Stowe Boyd:

Since terrorists and drug lords take advantage of anonymity of cash, Jonathan Lipow argues for a transition from cash to smart cards or other digital solutions:

Jonathan Lipow, Turn In Your Bin Ladens

From a technical point of view, such an initiative is entirely feasible. The trick is to lower the cost of making transactions to the point where even the smallest payments can be executed efficiently. For example, a Twitter application known as TwitPay allows you to use your cellphone and a PayPal account to transfer money. In Kenya, a mobile banking system known as M-Pesa allows six million people to execute small payments using SMS messages.

Unfortunately, cellular-based systems are unsuitable as a complete replacement for physical money, particularly in the developing world. Cellphone coverage doesn’t yet extend to many rural regions or small urban centers; in addition, such systems remain too vulnerable to cybercrime and power grid or mobile service disruptions.

A better approach would be to use smart cards with biometric security features, like the Universal Electronic Payments System. In South Africa, the technology company Net1 now distributes social welfare grants to almost four million people. It’s simple: with a battery-operated, point-of-sale device akin to a credit-card terminal, money is transferred from one person’s card to another; during the process, the cards download and record each other’s transaction records.

Every few days, employees from the payments system head out to the villages and make their own money transfers, downloading the transaction histories of the cards they come into contact with, which contain the histories of the cards they interacted with, and so on. That data is then downloaded into the company’s mainframe, as a way of monitoring the flow of funds across the cards.

Best of all, the system can function offline and off the power grid, providing a secure means of payment under all conditions and without any geographic limitations. And the incremental cost of executing a transaction via this system is essentially zero. It is a promising model for the global economy.

In a cashless economy, insurgents’ and terrorists’ electronic payments would generate audit trails that could be screened by data mining software; every payment and transfer would yield a treasure trove of information about their agents, their locations and their intentions. This would pose similar challenges for criminals.

And Big Brother would know how much you are spending on cigarettes, booze, dirty magazines, and betting with your bowling team.

I will leave aside the obvious — the ubiquity, convenience and flexibility of paper money — and the more philosophical questions of the benefits to society that anonymous money brings, for a moment, although I think these are the right points to discuss.

What about the costs of transitioning to a smartcard-system system of this sort? At least with cell phone-based approaches people generally have pay phones already. But if billions of people are coaxed to switch to smartcards to buy their daily bread, won’t it cost a fair bit to get up and running? Like hundreds of billions of dollars?

And who does such a system benefit? Not the part-time sex worker, trying to make ends meet in a down economy. Not the bellman at the airport, whose tips might disappear after the transition to cards. Not the homeless guy I gave $2 to the other day, or the busker playing guitar in the train station. Or the Green Peace folks collecting coins at the park.

The ones that benefit are the those selling the cards and the readers. And the policy-makers who want to see the flow of cash to find — supposedly — drug lords and terrorists, but secretly want to know everything about everybody.

But this is the argument for pervasive surveillance again. In the name of security and safety, they say we should all accept the intrusion of the government into our private lives so that the state can be protected from its enemies. After all, they say, if we aren’t doing anything illegal, why should we care? What have we got to hide?

But we have the right to privacy in our doings. We don’t have to say why we want privacy: it is our right.

And the shadowy doings at the margins of people’s lives are exactly the point of privacy. The man funneling money to a child born to his mistress without his wife’s knowledge, or a woman loaning money to her brother without her husband knowing: they want anonymous cash. The rich golfer that takes a woman not his wife out on the town has a right to privacy, even if a narrow-minded and moralistic society doesn’t think so.

We have known for years — decades — that pot is no more (and perhaps less) dangerous than alcohol, but the laws are slow to change. And in the meantime, millions of people are buying pot. At some point in the near future, the prohibition will end, and it will then become a regulated and taxed commodity, like alcohol. In the meantime, people slip into the shadow world to buy a bag. And they are justified, since laws that are enacted without regard to science and health — that are ideological and repressive — are illegitimate, and the people have the right to run around them.

Historically, tyrannical governments have attempted to raise taxes to unsupportable levels, and cash money could change hands without the government being aware: the gray economy. While today’s government may not be engaged in this sort of economic control, the use of traceable digital money would certainly be the sort of economic foundation a tyranny would want.

The advocates of total intelligence as a way to catch the bad guys are going down the wrong path. To counter the drug lords, we simply have to make pot legal. And if we contort our free and open societies to counter terrorists’ use of cash, they have won.

This is similar to the ‘security theater’ that goes on in our airports: where techniques that do not work are employed to convey a sense of security, and unobtrusive techniques that do work — like the Israelis’ airport security — are not used because of the politics around ‘profiling’. In order to meet some hypothetical threat from terrorists, our personal privacy and free movement are held hostage. At what cost? Who benefits from all the back scatter scanners being bought?

I maintain that cash is a prerequisite of a free society. If the authorities start rounding up all the money, and begin distributing smartcards, it’s time to rally in the streets.

Cash is not a metaphor for freedom, it is a requirement of freedom. A strong society that accepts human nature without moralizing will always have anonymous cash. Only totalitarian governments — where everything not expressly required is illegal — would want to monitor the flow of every cent.

Technically, it would be possible to design and deploy anonymous digital money, just like we could be encrypting all telephone calls. But governments always want to reserve the right to listen in on our conversations secretly, so the phone systems are inherently insecure. But cash predates the notion of modern nation states, and even our modern currencies are unbugged.

We shouldn’t let the government be a party to every transaction, gift, or exchange we engage in. And if we let them, they will want to, and once they get that ability, we might never be able to go back.

 

“My gang is bigger than yours…”

The 2013 Mazda CX-5 I Won’t Be Seeing

From epautos.com:

I just got invited by Mazda to attend a press event for the 2013 CX-5 in CA. I used to attend such events regularly, and I’d love to attend this one- but am pretty much decided against because of the prospect of being handled by some TSA cretin (because I won’t be scanned). I feel obliged to stand on principle, but there’s also the practical reason that I know myself – and know I might mouth off or maybe even hit one of those sons-of-bitches. And I don’t want to end up in jail (or worse). I’m still trying to practice avoidance. I know someday this will probably no longer be possible. But for now, I am trying to stay out of harm’s way – even though I know harm is not looking to stay out of my way.

This is the dilemma of living in America, post 911.

If it can be called living.

It is no longer possible to travel by air without submitting to degradations unimaginable just 10 years ago. All of us are faced with the horrid choice: Either we constrict our lives as a form of quiet protest against those who are trying to degrade us  – no more travel by air, which in addition to everything else also means not being able to see friends/family who live more than a few hundred miles distant without an arduous journey by car. Or we bow our heads (and spread our legs) and become complicit in establishing the new normal – and acceptance of those who degrade us.

They’ve got us cornered – again.

As has been noted by others, “the enemies of freedom” are right here – not in Iraq, or Afghanistan or Iran. Saddam Hussein did not take away my Fourth and Fifth Amendment rights. George W. Bush did. Achgezundheit (or however he spells his name) has never said he may target me for murder at his whim. The president of the United States has.

We think we have freedom (well, some of us do) because we’re still allowed to wear a green T-shirt vs. a red one (for now) or buy a Chevy rather than a Ford. But even here, our choices are narrowly defined by the government – which won’t allow just anybody to make a T-shirt or build a car. One must have permission (licenses) and submit to close and endless monitoring, as well as abide by a very long and detailed rule book (regulations).

Freedom my ass. You can’t even get firecrackers anymore in most states.

But now, tyranny is out of the closet. Its infringements are no longer subtle. Yet most Americans are still asleep – or so medicated and conditioned that they’re no longer capable of seeing.

How much worse does it have to get?

Will it literally take a bayonet shove in the back as they are directed to the trucks that will take them to the camps? I think it will.

We marvel at the passivity of (most) Jews in WWII Germany. The way hundreds – even thousands – of people accepted the barking orders of a handful of guards telling them to disrobe and then, in orderly groups, line themselves up for shooting (or gassing).

Americans are like that now.

They do what they are told. They Submit and they Obey. Even now, when the price of resisting  is minimal. They could walk away from the airports – and the worst that would happen is they’d have to drive to get where they needed to be. Or maybe postpone that trip. They could decide it’s not worth the indignity – the challenge to their status as free men, as human beings  – to attend the Stupor Bowl if it means being scanned and groped. Imagine an empty (or even half-empty) stadium this weekend – and what a devastating protest that would be.

Imagine empty airports – or even half-empty airports.

Imagine people putting their cars in Park, turning off the engine and turning on their flashers – and just sitting there at East German style “safety” checkpoints. Masses of them. Passively refusing to participate. Forcing the system to confront itself – or at least, making it plain what the system has become. And what it is going to be - very soon.

Instead, most Americans will gape at the Stupor Bowl, adjusting themselves after their groping. They will continue to fly – doing whatever is required of them first. They will “Yes, Sir” the flak jacket-wearing thug who arrests them for no reason at all, merely because they happen to be on a given road at a given moment in time. (And yes, a “random stop” is an arrest, by definition. You are detained by threat of force. The duration of the detainment – 5 minutes or five years – does not change the essential nature of the thing.)

Continue reading…

System D – The Informal Economy

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How the Swiss Opted Out of War

From AntiWar:

by , February 02, 2012

Switzerland has not been in a foreign war of any kind since 1815. This would be astounding, even miraculous, for any nation. But Switzerland borders Germany. And France. And Italy. And Austria. And Liechtenstein. Now the Vaduz regime has rarely lashed out in blitzkrieg in a desperate bid to reign über alles, but all of Switzerland’s other neighbors have spent their histories invading other countries.

In addition to the encircling foreign marauders, Switzerland itself is composed of four different language groups (German, French, Italian, and Romansh) that get along as well as, well, Germans and French.

The Swiss finalized their no-wars policy of armed neutrality in 1815. Their decentralized citizen army was good enough to keep them out of the Franco-Prussian War of 1870, World War I, and other European gang fights. In 1934, they addressed the looming threat of aerial bombing by starting a massive civil-defense effort. They maintained their citizen army and kept out of World War II, even while provoking Hitler by letting Jews hide their assets in secret Swiss bank accounts. Many Jews only escaped the Holocaust because they had their money where Nazi tax authorities couldn’t get it.

Hitler was in fact very provoked by the Swiss. His generals even got as far as giving the invasion of Switzerland the name “Operation Tannenbaum” and drawing lines on maps for it. However, no matter how they drew the lines, they couldn’t overcome the reality that there were no critical central targets for mechanized blitzkrieg to disrupt. Every house in Switzerland was a center of resistance. The Wehrmacht paratroopers couldn’t beat a defense that covered every square centimeter of the country with accurate rifle fire, and they knew it.

At the end of World War II, some Russian refugees took shelter in Liechtenstein. The Soviets demanded they be turned over to the NKVD, and Liechtenstein blocked them (so occasionally the fury of Liechtenstein is unleashed, after all). While the United States and Britain helped the Soviets herd millions of people onto trains to Siberian death camps, the citizens of Liechtenstein (and its ally Switzerland) faced down Stalin.

In 1962, noticing that the Cold War world was not getting any safer, the Swiss started building nuclear shelters. By the early 1990s, the program was complete. Every home, school, and business in Switzerland has a blast shelter in the basement, with a filtered air system. Hospitals have fortified wards, and local governments have underground command centers. Every citizen is trained in civil defense and knows where to find a radiation meter and/or gas mask. If the rest of Europe turns itself to glowing rubble, the Swiss will spend two weeks playing cards underground and then get back to work.

All this defensive infrastructure also limits the destructive potential of terrorist attacks. Dirty bombs are useless against people with shelters and fallout meters. Every citizen has anti–chemical weapon masks and equipment. Even nuclear bombs would only kill people in the immediate blast area; survivors would escape to the shelters. Any attempt to terrorize citizens with Mumbai-style attacks would be met with the assault rifles and rocket launchers of every Swiss household.

How much does all this security cost the Swiss? Not very much. In the 1980s the Swiss spent about $33 per capita annually on civil defense. Since the completion of the shelter program, they spend less; in fact the Swiss federal government now leaves all civil defense spending to the cantons. Estimates put total Swiss military spending at 0.9% of GDP. The US spends 5–6% of our much larger GDP to achieve almost total vulnerability.

The Swiss solution makes Swiss society more resilient against other natural or man-made disasters as well. A reactor meltdown is trivial to a nation that is built to withstand direct nuclear bombardment. Even asteroid strikes or megavolcanoes are less threatening to a nation only steps away from shelter and stockpiles. Whatever the future brings, the Swiss people will face it squarely and deal with it.

The American Way: Permanent War and No Defense

As Jon Huntsman said before dropping out of the primary race, the United States spends about as much as the rest of the world put together on “defense.” Our on-budget military spending is around 45% of world defense expenditure. But then we have a ~$75 billion black budget, a Veterans Administration budget of $132.2 billion, on-budget foreign aid of $53.3 billion, and off-budget Federal Reserve foreign aid in frankly unbelievable amounts. So a hundred billion here, a hundred billion there, and we end up spending as much as all the rest of the world’s armies and air forces put together.

The United States has military programs to address threats that don’t even exist. We have the F-35 to face the now-defunct Soviet air force, Trident submarines to launch missiles at now-friendly Russian cities, and aircraft carriers to fight no one, as no other country is dumb enough to pile $20 billion onto one fragile, indefensible “missile magnet.”

So we must be pretty safe, right? We must have really good anti-aircraft defenses — oops, no, even civil airliners can just fly right into the Pentagon, even with lots of warning time. But we must have missile defense, after all the money we’ve spent? Not so much. We have around 30 interceptor missiles that protect Alaska and Vandenberg Air Force base — as long as the enemy promises not to use any decoys or electronic countermeasures. U.S. cities are wide open to attack by any nuclear power, including the French.

But the only military threat recognized by mainstream media nowadays is terrorist bombs, delivered by Chevy Suburbans or the UPS man. So the United States must have a really well-developed civil defense system to protect citizens against fallout, nerve gas, or biological agents. All citizens must be well-trained in nuclear, biological, and chemical defense and have their radiation meters, masks, and protective suits in their car trunks.

Maybe in some alternate universe. In the 2012 United States, the only civil defense is whatever people provide for themselves. Our trillion dollars or so of “defense” money is spent mainly on serving as mercenaries to the various warlords that we support around the world. Meanwhile, America herself is the most vulnerable target in history, full of single-point failure modes, glass cities, and panicky “Homeland Security” bureaucrats.

A few guys with box cutters caused us to attack ourselves with “security” measures that cost us many times the expense of the physical damage of the 9/11 attacks. Then we made a follow-up strike on ourselves by launching several wars, which cost another $4 trillion or so. That was our response to losing two buildings.

A serious terrorist attack wouldn’t involve suicide bombings with hijacked airliners. There would be far more dangerous non-suicide bombings using nerve gas, Ebola, flu, or nuclear bombs.  Or bargain-basement terrorists could simply make simultaneous conventional explosive attacks on dams (at flood stage), refineries and chemical plants (during smog-weather inversions), the Internet backbone (anytime), etc.

Americans have to be honest with ourselves. If there were a real attack against the United States, would we bravely handle it with a stiff upper lip and recover? Or would our “Homeland Security” apparatus choke the economy of our country to death in panic, with crazy travel restrictions and nonsensical strip searches of old women and children? I think the answer is clear: the United States would cease to exist in anything resembling a functional state if even one city were seriously attacked.

America Could Be Safer Than Switzerland

Switzerland, of course, is a small, landlocked among other nations with long criminal records, and it has a smaller military budget than any one of its potential attackers. The United States has none of these problems. If we applied the Swiss model, we could ensure that our society, our Constitution, our freedoms, and most of our people would survive even a major attack. And if someone thinks you’re certain to survive and hunt them down, they’re less likely to attack in the first place.

We have technical advantages the Swiss do not. We could expand our missile defense program and help the other powers to do so as well. No decent person wants to see the children of Kiev, Mumbai, or Beijing burn in nuclear fire for some politician’s agenda. A thin defense shield against rogue missiles for every country that wants it should be encouraged.

We could also have a real air defense against bombers or drones tomorrow. All we have to do is fly our F-15s home from Saudi Arabia and use them to guard Washington, D.C., and Peoria instead of Riyadh. Our Patriot missiles could be placed around U.S. cities instead of scattered around the Middle East. (Those who doubt the Patriot missile’s effectiveness should note that it has confirmed kills in 2003 against an RAF Tornado and an F-18 Hornet — by accident, of course, but there’s no doubt they can shoot down planes.)

If our Navy weren’t busy blockading Iran to raise the price of oil, it could add its Aegis cruisers to defend our coastal cities. Our naval forces would still fight piracy and maintain freedom of the seas, but we don’t need Cold War–size forces in expensive Bahrain bases for that. As far as pirates go, all we really have to do is allow the merchantmen to arm themselves.

Of course, if we applied a noninterventionist foreign policy, the number of groups motivated to attack us would be greatly reduced. Right now, we are involved in most of the ethnic and religious conflicts around the world. Far too many political factions would benefit from a distracted and damaged United States. If an attack were anonymous, how would we retaliate? Last time, we “retaliated” against a nation (Iraq) that wasn’t even involved in the attack. They didn’t have WMDs, but what if our next president accidentally lies us into attacking someone who does? Like France?

This brings up another Swiss policy: their president can’t launch wars by executive order. In theory, neither can ours, and we need to start applying that theory (and the rest of the rule of law) in practice again.

The Swiss recipe for peace is simple, but it requires all elements in order to work.

1. Power must be decentralized so that your own politicians cannot aggress against other nations. It’s too obvious to need stating, but you can’t stay out of wars if you keep starting them.

2. Defense must be decentralized as well. The Norwegians also had a militia system in World War II, but the weapons were piled in central armories. The Wehrmacht paratroopers dropped right on the armories and used the Norwegians’ own artillery against them.

3. Defense must be focused on defense and protection of civil society. Adding your troops to every ethnic and religious conflict on earth is not going to make your society safer.

Refusing to Face the Real Threat: Bankruptcy and Monetary Collapse

Our national defense debate is taking place in Media Wonderland, where the United States has infinite resources and there are no costs or consequences for any action. According to Newt, it’s time for us to spend a few trillion on a government-run moon base, while Mitt just wants to spend those trillions on new Mideast wars. These are supposedly the “mainstream” views. The only noninterventionist candidate is summarily ignored.

Back on planet earth, the United States has an on-budget debt that is larger than our GDP, and government accountants don’t count Social Security, Medicare, the prescription-drug benefit, or Federal Reserve bank bailouts. Professor Laurence Kotlikoff, using CBO figures, calculates the real U.S. debt at more than $200 trillion. Our huge “defense” budget is borrowed month by month from foreign powers, hardly a sustainable situation.

If we eliminate corporate welfare and bailouts, get out of our illegal undeclared wars, reduce and redirect military spending to actual defense, and free the U.S. economy to recover, the 21st century could see an American Renaissance. Otherwise, our economy’s fall is inevitable, and all the king’s tanks and all the king’s planes won’t put it together again. An America involved in every conflict, with no resources to support any of them, is the legacy we have given our children.

I’m Allowed to Rob You

http://www.youtube-nocookie.com/embed/ngpsJKQR_ZE?rel=0

Blaming Capitalism for Corporatism

From project-syndicate.org:

2012-01-31

NEW YORK – The future of capitalism is again a question. Will it survive the ongoing crisis in its current form? If not, will it transform itself or will government take the lead?

The term “capitalism” used to mean an economic system in which capital was privately owned and traded; owners of capital got to judge how best to use it, and could draw on the foresight and creative ideas of entrepreneurs and innovative thinkers. This system of individual freedom and individual responsibility gave little scope for government to influence economic decision-making: success meant profits; failure meant losses. Corporations could exist only as long as free individuals willingly purchased their goods – and would go out of business quickly otherwise.

Capitalism became a world-beater in the 1800’s, when it developed capabilities for endemic innovation. Societies that adopted the capitalist system gained unrivaled prosperity, enjoyed widespread job satisfaction, obtained productivity growth that was the marvel of the world and ended mass privation.

Now the capitalist system has been corrupted. The managerial state has assumed responsibility for looking after everything from the incomes of the middle class to the profitability of large corporations to industrial advancement. This system, however, is not capitalism, but rather an economic order that harks back to Bismarck in the late nineteenth century and Mussolini in the twentieth: 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 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.”

The costs of corporatism are visible all around us: dysfunctional corporations that survive despite their gross inability to serve their customers; sclerotic economies with slow output growth, a dearth of engaging work, scant opportunities for young people; governments bankrupted by their efforts to palliate these problems; and increasing concentration of wealth in the hands of those connected enough to be on the right side of the corporatist deal.

This shift of power from owners and innovators to state officials is the antithesis of capitalism. Yet this system’s apologists and beneficiaries have the temerity to blame all these failures on “reckless capitalism” and “lack of regulation,” which they argue necessitates more oversight and regulation, which in reality means more corporatism and state favoritism.

It seems unlikely that so disastrous a system is sustainable. The corporatist model makes no sense to younger generations who grew up using the Internet, the world’s freest market for goods and ideas. The success and failure of firms on the Internet is the best advertisement for the free market: social networking Web sites, for example, rise and fall almost instantaneously, depending on how well they serve their customers.

Sites such as Friendster and MySpace sought extra profit by compromising the privacy of their users, and were instantly punished as users deserted them to relatively safer competitors like Facebook and Twitter. There was no need for government regulation to bring about this transition; in fact, had modern corporatist states attempted to do so, today they would be propping up MySpace with taxpayer dollars and campaigning on a promise to “reform” its privacy features.

The Internet, as a largely free marketplace for ideas, has not been kind to corporatism. People who grew up with its decentralization and free competition of ideas must find alien the idea of state support for large firms and industries. Many in the traditional media repeat the old line “What’s good for Firm X is good for America,” but it is not likely to be seen trending on Twitter.

The legitimacy of corporatism is eroding along with the fiscal health of governments that have relied on it. If politicians cannot repeal corporatism, it will bury itself in debt and default, and a capitalist system could re-emerge from the discredited corporatist rubble. Then “capitalism” would again carry its true meaning, rather than the one attributed to it by corporatists seeking to hide behind it and socialists wanting to vilify it.

Question of the day

Does a civil society force its opinions on others?

In response to acting manager of the Queensland Home Education Unit, Hanne Worsoe who stated:

“That’s why we live in a civil society that provides that capacity to represent children and to monitor their educational needs. If people aren’t registered I’d say you’re breaking the law, and if you’re doing the right thing by your kids you’ve got nothing to hide.”

Story:

Thousands of parents illegally homeschooling

The “unintended consequences” of Australia’s grafitti ban

A good example of how legislation tends to promote the very activity it is trying t restrict. Here is the key quote:

The laws are harsh, Doyle agrees, but it does not stop the artists, who appear in greater numbers every day to make their mark on the city. “This kind of art has to have an illegal element to it,” he said before flashing a toothy grin. “In the end, you’ve got to have your street cred, you know?”

Full Story…