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applegrove

(118,763 posts) Thu Jul 25, 2013, 10:55 PM Jul 2013

"The Huge Threat to Capitalism That Republicans Are Ignoring"

The Huge Threat to Capitalism That Republicans Are Ignoring

By Conor Friedersdorf at the Atlantic

http://www.theatlantic.com/politics/print/2013/07/the-huge-threat-to-capitalism-that-republicans-are-ignoring/277985/

"SNIP.......................................

Some genius at Goldman apparently had a brainstorm after reading the detailed rules that determine the spot price of aluminum. They figured that if storage times could be artificially lengthened, prices would go up and Goldman could make a killing. So they bought an aluminum storage business with the explicit goal of making customers wait a longer time for their aluminum. And they made a killing. The Times hastens to add that Goldman has done nothing illegal. Of course not. Why bother when "special exemptions" granted by the Federal Reserve and "relaxed regulations" approved by Congress allow you to make billions legally?

Preventing this sort of thing ought to be a high priority for anyone who wants to see free-market capitalism succeed in America. So long as our economic system resembles what Adam Smith described -- the profit motive benefiting everyone, as if by an invisible hand -- much of the American public can be counted on to support politicians who campaign as unapologetic capitalists, even if people are rewarded unequally, based on the value their labor is producing.

But if "capitalism" starts to be associated in the public mind with Wall Street profiting by deliberately slowing down industrial productivity (or with Mitt Romney making millions by buying companies and gaming the tax implications of shuttering them), Americans are not going to support capitalism. They're going to regard it as a rigged system that only profits wealthy insiders.

In the short term, Republicans and Democrats alike benefit by allying themselves with the wealthy insiders. Like the GOP, President Obama has benefited from Wall Street money. But in the longer term, enough stories like this New York Times scoop will destroy Republicans, because rhetorically, they're the ones insisting that the market is beneficial and more or less fair, even as a transparently corrupt financial sector consumes a larger percentage of the overall economy.

.......................................SNIP"

6 replies

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"The Huge Threat to Capitalism That Republicans Are Ignoring" (Original Post) applegrove Jul 2013 OP

I hope Obama is all over this. Hillary Clinton too. applegrove Jul 2013 #1

WTF... Wounded Bear Jul 2013 #2

I posted this because I think crony capitalism is not talked about enough. Occupy has gone applegrove Jul 2013 #3

"Should" is the operative word... Wounded Bear Jul 2013 #5

Confiscate it through eminant domain ErikJ Jul 2013 #4

As Capitalism dies there will be more calls to make it 'friendly' leftstreet Jul 2013 #6

applegrove

(118,763 posts)

1. I hope Obama is all over this. Hillary Clinton too.

Reply to applegrove (Original post)

Thu Jul 25, 2013, 10:59 PM

Jul 2013

Wounded Bear

(58,698 posts)

2. WTF...

Reply to applegrove (Original post)

Thu Jul 25, 2013, 10:59 PM

Jul 2013

The actions described are not "destroying" capitalism. They are capitalism. It's what capitalists do, they find ways to make more money, and pay little attention to ethics. That's why it eventually crashes.

I don't want to 'preserve' free market capitalism. I want to regulate it.

applegrove

(118,763 posts)

3. I posted this because I think crony capitalism is not talked about enough. Occupy has gone

Reply to Wounded Bear (Reply #2)

Thu Jul 25, 2013, 11:01 PM

Jul 2013

silent. And we really need it again. I doubt the Republicans will do anything to try and stop crony capitalism. They like it. But Democrats should be talking about it.

Wounded Bear

(58,698 posts)

5. "Should" is the operative word...

Reply to applegrove (Reply #3)

Thu Jul 25, 2013, 11:09 PM

Jul 2013

The DLC wing of the party has pretty much sold out to it.

ErikJ

(6,335 posts)

4. Confiscate it through eminant domain

Reply to applegrove (Original post)

Thu Jul 25, 2013, 11:05 PM

Jul 2013

Eminent domain -, compulsory purchase (United Kingdom, New Zealand, Ireland), resumption/compulsory acquisition (Australia), or expropriation (South Africa, Canada) is the power to take private property for public use by a state. However, it can be legislatively delegated by the state to municipalities, government subdivisions, or even private persons or corporation when they are authorized to exercise functions of public character.[1]

The property may be taken either for government use or by delegation to third parties who will devote it to public or civic use or, in some cases, economic development. The most common uses of property taken by eminent domain are for government buildings and other facilities, public utilities, highways, and railroads; however, it may also be taken for reasons of public safety, as in the case of Centralia, Pennsylvania. Some jurisdictions require that the condemnor offer to purchase the property before resorting to the use of eminent domain. -- Wikipedia

leftstreet

(36,111 posts)

6. As Capitalism dies there will be more calls to make it 'friendly'

Reply to applegrove (Original post)

Thu Jul 25, 2013, 11:11 PM

Jul 2013

Not possible

That's like trying to lecture your car to use less gas

It's how the system works

Period

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