Recognizing a Corporate State

           

American politicians will strongly deny accusations of any fascistic offense. Yet they are often  guilty of corporate state politics.

                               

Their argument is that super financial regulation, such as Dodd- Frank, is the answer to stopping bubbles and financial risk. More regulation, they say, will reduce financial meltdowns. That same financial risk that past regulation failed to catch.

                       

And if large companies “too big to fail” look ready to do so, the U. S. ought to be the employer of last resort, to bail them out. While government, in effect, operates them. In the past, the bankruptcy laws remedied the problem without political input.

                       

Well, that action is corporate statism, pure and simple. That was the road taken by the administration with autos, banks and insurance in 2009, and it is now a permanent fixture.

                       

There were alternatives. Actions that would have been better solutions and less destructive to our long-term economy.(See the Earl J Weinreb NewsHole® comments and @BusinessNewshole tweets.)