Capitalism is the Best? Eh... Not So Much

I was trying to have a conversation with someone about why Capitalism doesn't work as prescribed and this article pretty much sums up that conversation.  There is more I would like to add though.

The Big Flaw in Capitalism 

The problem with free market capitalism is that a very few will amass a large where of the market then use their power to keep smaller businesses from entering the market. This prevents Capitalism from working as prescribed. If a few large corporations join together and buy up all of the businesses so that no new competition can enter the market you no longer have Capitalism but a Corporate Oligarchy. That is what has happened because of the "deregulation" that so many Republicans have worked toward. That is why corporations are now considered people, their money is considered speech, and our votes don't count for squat unless we have the money that the large corporations and the top 2% have. Capitalism is good in theory, like any other system of government, but in practice things don't work the way they are supposed to. If someone tries to offer something new on the market so that people can have an affordable and better alternative, the large corporations either buy the new business and bury the patents or they defame and set up the owner so that the new business fails. Remember DeLorean?  Remember Tucker?  If you haven't seen this movie, I suggest you watch it.  Tucker: The Man and His Dream (1988)  It will show you how major corporations squeeze out the little guy.  I also suggest watching The Corporation, a movie that will show you the legalities that drive them to be the blood suckers that they are.

If everyone was honest, free market capitalism might work, but, as we all know, not everyone is honest.  Someone will always find a way around laws that are supposed to keep the market fair and based upon supply and demand.  Theoretically, the person who makes the best product would rise to the top and people who make poorly crafted items would fall to the bottom.  Advertisement would be to let people know the features and specifications of the item(s) rather than all the glitz and glamor (and sex) that says "Buy!  Buy!  Buy!"  The information would be useful in making an intelligent decision on which product best suits your application and needs.

Since we know that not everyone is honest, the dishonest people will find a way to corner the market, to get around laws, to find loopholes with the help of their corporate lawyers, and end up with monopolies or at least oligarchies of the very few.  Examples are the "Big Three" automakers, Exon Mobil and BP (though BP may have effectively run itself out of the country now), the Sam's Club/Wal-Mart chains, and others.  Since they had enough capital to run the other companies out of business or buy the smaller companies, they can now inflate prices to whatever they want as long as someone can pay for their products.  With the current automotive industry offering few affordable clean energy alternatives and people have to drive to get to work, the oil companies have people over a barrel (excuse the pun).  People HAVE to buy gas to go to work so they can afford gas to keep going to work so they can put aside a meager amount to buy things that were meant only for the rich... like food, shelter, and clothing.  Now that the rich have bought the government, they want to take away our safety nets like Medicare, Medicaid, and Social Security... which, by the way, we paid for in a separate tax so is not part of the regular budget.  I won't even mention how they've already stolen a great portion of the FICA funds and haven't attempted to pay any of it back while they've taken out billions of dollars in loans to subsidize greedy bankers at the taxpayer's expense.  How did the bankers respond?  Why, they were grateful to the taxpayers and foreclosed on all the houses that they could so that the taxpayers wouldn't be burdened with the cost of maintaining a house.  After doing so, they had city governments make it illegal for the poor to camp in public parks because who wants to see poor, unwashed people starving to death?

There once were laws that heavily taxed corporations who sent jobs overseas.  There were once laws that somewhat prevented companies from joining together to overtake small businesses.  All that has been changed now thanks to "deregulation."  Yes, government subsidies helped the corporations, but you have to look at the root cause.  

 "There are a thousand hacking at the branches of evil to one who is striking at the root." ~ Henry David Thoreau

There are a thousand hacking at the branches of evil to one who is striking at the root.
Read more at http://www.brainyquote.com/quotes/quotes/h/henrydavid161709.html#wcO3Ev30X8Yuuoxz.99

There are a thousand hacking at the branches of evil to one who is striking at the root.
Read more at http://www.brainyquote.com/quotes/quotes/h/henrydavid161709.html#wcO3Ev30X8Yuuoxz.99

There are a thousand hacking at the branches of evil to one who is striking at the root.

Henry David Thoreau

Read more at http://www.brainyquote.com/quotes/quotes/h/henrydavid161709.html#wcO3Ev30X8Yuuoxz.99

What few regulations still exist are ever being turned to favor the large corporations.  That is the story of how Capitalism failed.

Cal Jennings