Wednesday, September 12, 2012

Rule of Law --Essential For Business Health


The American public has unfortunately had little concern for the rule of law when it’s broken and discarded right under their collective noses.

That is why I repeatedly advise a study of Italy’s Benito Mussolini in the 1930s and 1940s and what happens when a left-wing government forms a crony-capitalist state, amid its disregard of the rule of law.

The result is also referred to as “Crony Capitalism” where government bigwigs get cozy with favored giant corpoations, handing out allowances and exemptions in return for “getting along” in payment for directed political contributions.

For more recent illustrations, look at incidents in the U.S. Example: the General Motors “bankruptcy” imposed by the government. It was no bankruptcy in the legal sense but a govenment-imposed settlement at the expense of bondholders and taxpayers, but in favor of auto unions.
(See the Earl J. Weinreb NewsHole® comments.)









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