12 October 2008

31. True Capitalists vs. Crony Capitalists

This is my discussion regarding the differences between what I call True Capitalists, True Businessmen versus Crony Capitalists, Crony Businessmen. My discussion regarding True Capitalists comes first, followed by my discussion regarding Crony Capitalists.

True Capitalists and True Businessmen.

(The following is my commentary and opinion.)

True Capitalists are businessmen and individuals who take full responsibility for their own decisions and risks. They are businessmen and individuals who work hard and acquire knowledge for success, accept no unearned handouts or welfare (subsidies), and admire the earned success by others. They are people who defend and respect property rights, both physical and intellectual.

I think that True Capitalists are businessmen and individuals who desire free, open, honest, direct, true economic competition unhindered by the state (government). True Capitalists do not want state (government) force, compulsion, intervention, legislation, regulation, market manipulation, corrupt monopoly by mandate, taxation, wealth and property redistribution, and/or any other type of state control.

Laissez-faire Capitalism encourages and promotes integrity, honesty, and honor among businessmen. It also encourages and promotes proper, objective, legitimate business practices and relationships. Under a proper capitalist system – under Laissez-faire Capitalism - government intervention, legislation, regulation, mandates, and force CANNOT be used as part of any business tactics and/or practices against legitimate commerce activities and business competitors.

Under Laissez-faire Capitalism, the government’s only proper functions are (1) provide a proper military to protect a country from foreign invasion, (2) provide law enforcement and police domestically against the initiation of physical force and fraud, and (3) providing a proper, objective justice system (the courts) that makes sure that contractual agreements are proper, legitimate, legal, and honored, and not fraudulent or breached – as well as making sure that disputes are settled peacefully, using objective rules and laws – and as well as providing any other judicial services to properly process and settle any and all other criminal and/or civil trial concerns and legal situations.

Capitalism discourages dishonest, deceiving, fraudulent business activities, practices, trade, agreements, dealings, relationships, and associations. Capitalism prevents economic instability and chaos.

Capitalism encourages and leads to economic stability and harmony throughout the entire free-market process.

Capitalism encourages and leads to economic progress, economic expansion, and economic prosperity.

-- For my discussion regarding Economic Power versus Political Power, see Item No. 19 above.

-- For my discussion regarding a True Economy versus a False Economy, see Item No. 21 above.

Crony Capitalists, Crony Businessmen,
Pseudo-Capitalists, Pseudo-Businessmen.

(The following is my commentary and opinion.)

Crony Capitalists and/or Pseudo-Capitalists are businessmen and individuals who hide behind governments and unions in their business dealings and activities, and blame others for their own incompetence, mediocrity, and lack of business skill. They are businessmen and individuals who deliberately look for ways to cheat in true economic competition by using government manipulation and force, government favoritism, accept government welfare (subsidies), and envy the earned success by True Capitalists. They are people who show disdain and disregard for property rights, both physical and intellectual – as they generally approve of government interference, restriction, manipulation, and force against competitors.

I think that many Crony Capitalists and/or Pseudo-Capitalists justify their “business” approach as just “playing the game,” of just competing in a “mixed” world (a mixed-economy), and they have no choice but to participate in whatever is required to compete under such a system. While some of this may be true, however, their rationalism for their crony business practices and activities can only carry them so far - they only “play the game” until the inevitable happens to them: they themselves become the victims of a mixed-economy, a statist-oriented economy, and they are then sacrificed to the “latest” favored Crony Capitalist and related business. It is my opinion that Crony Capitalists and/or Pseudo-Capitalists try to cheat the forces of true economic competition, that is, they try to cheat reality – and they do so by supporting, encouraging, promoting, and using state (government) intervention, restriction, interference, manipulation, favoritism, regulation, force, and control.

Many Crony Capitalists and/or Pseudo-Capitalists are businessmen and individuals who want control and power over others by supporting, encouraging, promoting, and using state (government) intervention, restriction, interference, manipulation, favoritism, regulation, force, and control. They also include businessmen who despise true economic competition and want a government to establish a “fair” playing field for all (meaning, I think, that they want the government - the tax payer - to pay for and save their own sorry butts from their own laziness, their dishonesty, their cowardliness, their ignorance, their stupidity, their mediocrity, their inability to compete in an unrestricted and unregulated economy, and/or their lack of business and financial skill). Crony Capitalists despise the true free-market.

These type of businessmen and individuals actually desire and support the type of Statism called Fascism, among other types, whether they realize it or not.

Pseudo-Capitalists and/or Crony Capitalists are businessmen and individuals who want to create needs and demands through state (government) force, compulsion, intervention, legislation, regulation, mandates, market manipulation, corrupt government mandated and forced monopoly, taxation, wealth and property redistribution, and/or any other type of state control.

Statism encourages and promotes business fraud, business scoundrels, business dishonesty, and corrupt business tactics using government intervention, legislation, regulation, mandates, controls, and force against proper free-market and beneficial commerce activities and business competitors.

Statism discourages honest, peaceful, voluntarily cooperative, legitimate, and legal business activities, practices, trade, agreements, dealings, relationships, and associations. Statism encourages and leads to government manipulative competition in the market system. Statism destroys economic stability and harmony.

Statism encourages and leads to complete economic instability, economic decay, and economic chaos.

Whether they know it or not, Crony Capitalists and Pseudo-Capitalists only end up supporting, encouraging, and promoting such economic distress just to stay in business long enough before total economic collapse under Statism.

-- For my discussion regarding Economic Power versus Political Power, see Item No. 19 above.

-- For my discussion regarding a True Economy versus a False Economy, see Item No. 21 above.