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Monday, December 3, 2018

Trump is Not Economic Fascist but Is Government Overall?

A week or two ago we wrote a post defending Trump against all those deranged dumdums who pretend he's some fascist despot akin to Hitler and break down in detail the definition of 'fascism' to make our case

Now while Trump is not fascist in any way, shape or form as we thought about that definition, we could see the Federal government as a whole being fascist-like in now it deals with companies and controls privately owned business
For those who might not remember or have read that posting, fascism in its most basic definition is merging of governance and free market where government controls business

On the other extreme is a term called laissez-faire where government takes a fully hands-off posture and lets free market decide how a national economy will go and believes when there's a recession or worse, it will correct itself

Now that we got those definitions out of the way, let's see how government controls privately owned business and to do this, we will use the example that you own a grocery store in a very populous part of town
First question..  Who is in control of your pricing of the goods you sell - you the owner or the government?

If it is within a certain range, then you are..  Otherwise no

Let's say a major hurricane or blizzard is approaching that will knock out power for some time and people obviously will need to buy batteries..

If a pack of 2 D batteries normally sells for $4, no one will care if you charge $5 or even $6.. 
God knows that's the philosophy of 7-11 and Wawa: take something someone needs then add an additional 20% to the price

But if you charged $10 based on supply/demand, some government entity even if its on a state or local level will punish you hard if they find out it

Now let's say weather conditions are normal and you wanted to sell those $4 batteries along with everything else in your store at 50% less than what prices should be because you're willing to take short term losses to drive the competition into matching and ultimately closing their stores..

Government in some form would punish you as well
Next.. Are you as owner as a private business allowed to hire who you want to fill the roles needed in your store?

Once again depends..

Theoretically you can choose who you wish to fill a specific job but ultimately you're forced to have a certain percentage of blacks even if you really don't want or wish

And if someone gay or disabled or Muslim applies, you have to be careful because they and others who fit the Equal Opportunity' umbrella will look for any excuse to sue for discrimination and of course the government will get involved too
When it comes to wages, can you pay an employee whatever you wish?

Here comes that D word again..  depends

Want to pay someone $50 an hour for a job that should be $12/hr, then sure.. no one will stop you

Want to pay someone $5 an hour and it doesn't involve tips to supplement the income and you find someone willing to accept (illegal immigrants) ? 

Nope..
Now understand we're not making judgments as to right or wrong - sometimes government involvement in the private sector can be a positive thing but just showing based in the basic definition of fascism where it applies to economics, we're not all that different

So then beyond all we've expressed, you have endless regulations that government imposes on business from environmental issues and any other concern that may or may not affect the public

Then there's the stock market -  Does government control the stock market in any way?

Once again it depends
If markets gain 200 points or drop 400 points, government generally doesn't care.. It's the ebb and flow of free market capitalism and every day some investors will benefit, others will lose their undies

But if the market drops by a substantial number it can step in and close the stock market for a day or longer to 'calm' things down

Also when the government meddles when the market is lower than it wishes by continually pumping money into it, like the Treasury did when it gave the Fed free reign to pump in over $1 billion a year during the Obama years so the wealthy could get wealthier and everyone was too busy watching football to notice
And if you lose your job - are you stranded?

Nope, the government steps in with assistance for a period of time while forcing the employer to pay into it.. 

As we said we're not talking good or bad here.. just showing how we are not as capitalist a nation as the original intent of form of economics as created by Adam Smith
The definitions of free market along with individual freedom have changed drastically since the inception of our nation..

And from the days of Washington crushing the Whiskey Rebellion because they didn't want government controlling them to all the laws and regulations at present, it is the nature of government to want to dictate terms to private business and overall populace more and more

Now we have a nation that accepts bailouts of corporations and banks as par for the course because we've all been conditioned by the 2008 crash and accepting of 'Too big to fail'
Because of it, we now celebrate our government bailing out corporate entities for billions so we can resume our lives of making 30-70 thousand a year and knowing nothing will happen to the few hundred we have in our banks

The government in 2009 created an auto 'czar' that wrongly bailed out the auto industry instead of forcing them to lower their car prices - GM got billions, then opened a new plant in China with that money and now want to lay off US autoworkers when they never paid the taxpayers back

Prior to that, we gave every bank billions of dollars through $700 billion TARP bailout even if the banks didn't need it and told them to keep quiet because this way the public couldn't identify which backs were solvent and which were ready to collapse
Government intervention upon intervention upon intervention

We as people, generation upon generation get more conditioned and accepting and dependent on government to control business and our lives - its a basic psychological theory called operant conditioning

Are we better or worse for it?   

We believe yes but if you believe different, we're sure you have your reasons.