2009-05-02

Big Companies Like Fascism

Fascism is a political and economic system where big government and big business are intertwined, supporting each other to the detriment of the rest of society. Historically fascism has featured charismatic leaders, nationalism, and (to put it mildly) intolerance, as well as extremely effective government propaganda (for example Mussolini didn't actually make the trains run on time). The political aspects of fascism are well known; less well known are the business aspects.

Large corporations like fascism because government rules and regulations can be used to increase their economic dominance. Sometimes it's explicit, in the case of cable television monopolies, and sometimes it's implicit, in the case of licensing requirements that make it more expensive for new competitors to form. Sometimes it's both, in the case of factory regulations that contain grandfather clauses exempting existing facilities.

Nationalism in the general population appeals to businesses because it can be used to promote import tariffs and subsidies of local businesses.

Intolerance in the general population appeals to businesses because it distracts. If Joe Average blames a specific person or group for the current economic slump he's not paying attention.

Whenever you see a big company lobbying for increased regulation, realize that it's not out of any sense of goodness or moral duty. Companies lobby for regulations because they think they will profit. It's not bad for companies to seek profit (profit is why they exist), but their focus on profit gives them tunnel vision. They don't see (and when they do, they don't care about) the negative effects on society of tilting a level playing field in their favor.

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