When I came across this article on a website called socialistappeal.org, I couldn't help but think of the following given by Congressman Ron Paul in 2002: " Ignorance, as well as disapproval for the natural restraints placed on market excesses that capitalism and sound markets impose, cause our present leaders to reject capitalism and blame it for all the problems we face. If this fallacy is not corrected and capitalism market generates will be destroyed." Ron Paul's point is that because of a large and general misunderstanding of what free-market capitalism is, people have built a habit of blaming all economic and social problems on capitalism and call on the government to rein it in with more regulations and government welfare-ponzi scheme programs.
Another Socialist Myth
The author of the article, Fred Weston, begins the article proclaiming that, "One does not have to be a genius to understand that thirty years or more of cuts in welfare, large scale privatizations and constant pressure on workers in the workplace was sooner or later going to end up with ordinary working people questioning the system that is responsible for these policies, i.e. capitalism." There have been no real cuts into any program of the welfare state. The thirty years he is refering to may be around the time of the Reagan Presidency. It is a myth to believe that President Ronald Reagan was a "small government man" or that his presidency was "a return of free-market capitalism". The great libertarian Murray Rothbard explains some of Ronald Reagan's economic policies during his presidency as follows: "In the late 1970’s, it became obvious even to the man in the street that the Social Security System was bankrupt, kaput. For the first time in fifty years there was an excellent chance to get rid of the biggest single racket that acts as a gigantic Ponzi scheme to fleece the American taxpayer. Instead, Reagan brought in the famed 'Randian libertarian' Alan Greenspan, who served as head of a bipartisan commission, performing the miracle of 'saving Social Security'and the masses have rested content with the system ever since. How did he 'save' it? By raising taxes (oops 'premiums'), of course; by that route, the government can 'save' any program. (Bipartisan: both parties acting in concert to put both of their hands in your pocket.)....The Gipper deregulated nothing, abolished nothing. Instead of keeping his pledge to abolish the Departments of Energy and Education, he strengthened them, and even wound up his years in office adding a new Cabinet post, the Secretary of Veterans Affairs. Overall, the quantity and degree of government regulation of the economy was greatly increased and intensified during the Reagan years. The hated OSHA, the scourge of small business and at the time the second most-hated agency of federal government (surely you need not ask which is the first most-hated), was not only not abolished; it too was strengthened and reinforced. Environmentalist restrictions were greatly accelerated, especially after the heady early years when selling off some public lands was briefly mentioned, and the proponents of actually using and developing locked-up government resources (James Watt, Anne Burford, Rita Lavelle) were disgraced and sent packing as a warning to any future 'anti-environmentalists.'" So as you can see, Fred Weston's assertion that we have had true capitalism for over 30 years is a myth. A Rothbard noted,Reagan did not deregulate, nor did he cut welfare spending, in fact as Ivan Eland has noted: "Despite his rhetoric of limiting government, Reagan presided over an increase in federal spending as a portion of GDP during his two terms. " In order to get his much beloved defense spending to increase, he accepted increases in domestic spending, especially welfare spending which includes but is not limited to Social Security, Medicare, and Medicade. The so-called privatizations have not been genuine either.
The Difference between Crony Capitalism and Laissez-Faire
Fred Weston continues as follows: "The more intelligent strategists of capital look at such polls seriously, and for a very good reason. They understand that if millions of people consider their system a good one, one that 'delivers', i.e. one that provides a reasonable living and one that appears to have a good future, then their system is safe. The capitalist class does not hold onto power merely by controlling the state apparatus, the police, the army and the judiciary, the mass media and the education system. It also needs to keep a grip on the consciousness of millions of ordinary working people and make them believe that in spite of all its vices capitalism is the best of all possible socio-economic systems. However, even control of the state, the media and the education system is not enough for this nice cosy set up to remain unshaken. All these other means of control break down if the system is not capable of providing at least a reasonable, tolerable existence for the majority of the people." First of all, he insinuates that true capitalism requires controlling the apparatus of the state. But this is not true. When companies and businesses align themselves with government, and are given special government grants, privileges, and give-aways, this is not true free-market capitalism. This system can be called many things including crony capitalism, state capitalism, corporatism, mercantilism and economic fascism. True laissez-faire capitalism requires an almost total separation of economy and state, in which the economy is not only free of governmental controls and dictates, but that economic interest have no control over government policy, especially foreign policy. He also asserts that capitalism has certain vices. What vices does he mean? Of course, it is probably the typical Marxist rhetoric about "the capitalists exploit the poor" or "the rich get richer, while the poor get poorer". These Marxist lies have of course been proven wrong (especially the myth that the State under communism will somehow "wither away"). Plus, he asserts that "capitalists" (and by capitalist I assume he means businessmen) somehow controls things like the army, judiciary, and education. The fact is that these things are controlled by the government. But certainly, some special interest can manipulate government policy to their liking. Again, this is not true capitalism. Only politically connected businesses and corporations have access to the powers and privileges of the State.
The Socialist Solution? More Class Warfare
To conclude his article, Fred Weston proclaims that "This sharp turn in opinions in the biggest and most powerful country in the world bodes well for the class struggle in the coming period. Gone are the days when the USA was the country of the 'American Dream' where everyone was supposed to be able to become successful through hard work and effort. Reality has come home to the United States and no amount of 'inspired leadership' will solve this dilemma for the US bourgeoisie. Of course, we can think of another kind of 'inspired leadership' that could make a difference, a genuine socialist leadership of the US labour movement capable of mobilising the immense power of the US workers. That is something we are working on!" The true "American Dream" is that of freedom, of being able to make your own choices without being persecuted by government. Of course, the author of this article says that the only solution to our economic problems is more class warfare. A real solution to the current economic mess we are in should be as follows: government intervention and control over the economy must stop immediately; all government granted monopoly privileges to certain businesses and industries must be eliminated; all government subsidies must be stopped; government regulations on the economy must be repealed; some taxes need to be slashed, and other taxes (like the income tax) need to be abolished; government spending must be dramatically decreased; welfare programs need to begin to be dismantled (in a quick, but gradual fashion where we start weening people of government assistance and get them to a point where they can take care of themselves without government aid); private property rights must be respected and protected by government under a uniform rule of law; and finally, the Federal Reserve System needs to be audited and abolished, and be accompanied by either the establishment of a gold standard, or the legalization of competing currencies. We must come to understand that the natural, peaceful, and voluntary exchanges of individuals or groups of individuals (i.e. capitalism) in a society based on liberty, is a far better economic system for providing for the needs of millions upon millions of people than the coercive and liberty-destroying economic interventionism and control by government.
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