Political and Market Entrepreneurs

Path: mv.asterisco.pt!mvalente
From: mvale…@ruido-visual.pt (Mario Valente)
Newsgroups: mv
Subject: Political and Market Entrepreneurs
Date: Fri, 14 Mar 08 00:26:21 GMT


“The iron law of oligarchy is a political theory,
first developed by the German syndicalist sociologist
Robert Michels in his 1911 book, Political Parties.
It states that all forms of organization, regardless of
how democratic or autocratic they may be at the start,
will eventually and inevitably develop into oligarchies.”


The end result? A mixed economoy, a false and stunted mix
of socialism and capitalism… A gray consensus between black
and white that, being gray, satisfies neither those who prefer
black nor those who prefer white. The result of taking the
“best” from each side? Crony capitalism, an oligarchy of
corrupt businessmen and corrupt politicians…

Crony capitalism

Capitalists generally oppose crony capitalism as well,
but consider it an aberration brought on by governmental favors
incompatible with true capitalism. In this view, crony capitalism
is the result of an excess of socialist-style interference in the
market, which requires active corporate lobbying to reduce red tape.
They point to the relatively higher levels of interaction between
corporations and governments that are considered more socialist,
taken to its maximum in the form of nationalization of industries.
Even if the initial regulation was well-intentioned (to curb actual
abuses), and even if the initial lobbying by corporations was
well-intentioned (to reduce illogical regulations), the mixture of
business and government eventually proves poisonous.

Burton W. Folsom, Jr., in his book The Myth of the Robber Barons,
distinguished those that engage in crony capitalism – designated by
him “political entrepreneurs” – from those who compete in the marketplace
without special aid from government, whom he calls “market entrepreneurs”.

— MV

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