American Capitalism & The Illusion of Laissez Faire
To draw from an opening phrase, in the beginning, there was capitalism. More accurately, at the beginning of our Constitutional Republic, government was committed to limiting – drastically – it’s footprint in the new American marketplace. Americans were free from the tyranny of government interference leveled at the former colonists at the hand of King George III. Our Founders and Framers sought to secure the right of the individual not only to property, but to commerce in a form lightly touched by government. My, how far we have fallen from the Framer’s original intent.
The original intent of the Framers where commerce was concerned – and especially under the Articles of Confederation – was to leave the new American people to reap the benefits of their crafts and labors. The Framers embraced a laissez faire system of capitalism. Laissez faire capitalism is defined as:
“…a doctrine opposing governmental interference in economic affairs beyond the minimum necessary for the maintenance of peace and property rights.”
A system of government’s only responsibility in a laissez faire capitalist system, where commerce was concerned and if adhering to the original intent of the Framers, was:
“…to protect the rights of the individual, by banning the initiation of force, thus making all relations between men peaceful, i.e., free from the threat of violence and fraud…
“…a system of checks and balances so ordered to protect the rights of the individual, from criminals and most importantly from the democratically elected voices who claim to speak for the ‘public good.’”
Today’s American “free market system” is actually anything but a laissez faire capitalist system; a free system.
Starting a small business today requires that the aspiring entrepreneur incur significant start-up costs including fees, costly regulatory acquiescence, licensure requirements, taxes, tariffs, diversity quota hiring and other associated costs, taxes, actions and/or fees. Add to that the impossible task of acquiring necessary to-market development capital from a financial institution – many of which were afforded lifesaving financial infusions of taxpayer dollars, courtesy of crony capitalists in Washington, DC – and you have a formula for a stagnant economy and high unemployment for the “producers,” and the selective enrichment of the connected, the elite and the “chosen few.”
This was not the case so long ago. And as little as 30 years ago, starting a small business meant reaping the rewards of ingenuity and hard work. Someone with a dream; someone with a “good idea,” was able to acquire capital to launch small business initiatives based on that tangible idea; based on a well-crafted business plan and model. Sadly, today, no one “invests in ideas” anymore. Financial institutions and capable venture capitalists balk at the “good idea”; recoil from the uncertainty of start-up entrepreneurship because of the non-guarantee of return on investment, even as many of them have been deemed “too big to fail” when they make bad business decisions of their own, only to receive government-funded (read: taxpayer-funded) bailouts. This all happening while the “good idea” start-up concepts wither on the vine for lack of start-up capital.
Additionally, many a creative entrepreneur is neutered – or hamstrung – by the fact that the “powers that be” have declared they did not jump through the traditional “educational hoops”; did not attain the necessary piece of paper and the required student loan debt to be considered “competent” or “intelligent” enough to conceive of the “next big thing.” Of course, this certainly must come as a surprise to Bill Gates, or to the late Steve Jobs, two pioneers of the computer age who dropped out of college. So, too, must is be shocking news to the many “gangsta” rap moguls who possess a depth of language proficiency usually reserved for those with a single or low double-digit intelligence quotient, and most of whom know the assembly of automatic weaponry better than algebraic theory.
And while the successful navigation of the “educational hoops” does not guarantee entrée into the realm of the financially anointed, sometimes the connections and friendships acquired at many upper-echelon secondary education establishments can serve to circumvent the ties that bind “producer Americans” to the grind of the average. Yes, I am talking about elitist crony capitalism.
Case in point: Toni Townes-Whitley.
According to TheDailyCaller.com:
“Toni Townes-Whitley, Princeton class of ’85, is senior vice president at CGI Federal, which earned the no-bid contract to build the $678 million [failed] Obamacare enrollment website at Healthcare.gov. CGI Federal is the US arm of a Canadian company.
“Townes-Whitley and her Princeton classmate Michelle Obama are both members of the Association of Black Princeton Alumni.”
Coincidentally, George Schindler, the president of CGI Federal’s Canadian parent CGI Group, became an Obama 2012 campaign donor after his company gained the Obamacare website contract. What a coincidence…
What does all of this have to do with laissez faire capitalism? Well, actually, nothing. It has nothing to do with laissez faire capitalism. And that’s the point.
Considering that our economic system has turned into a fiscal bordello of short-cuts for the Progressive chosen few, bailouts for the “too big to fail” financial institutions, and a playground for the crony capitalists, is it any wonder the financial markets have ceased reflecting the health of the American economy? How are investors supposed to know when the next major economic disaster is approaching when risky investments and questionable financial schemes are always rewarded in their failures and losses with government-backed (read: taxpayer-funded) bailouts? For the “chosen ones,” where is the “risk”?
The original intent of the Founders and Framers was to have an “American capitalism”; a system of commerce and investment based on achievement, investment, hard work, production and, yes, failure. The American system of capitalism was designed to leave the evolution of society and the decisions about the “common good” to the people. Today’s “anything but free market system” is a disingenuous scheme establishing pre-determined winners and losers; a manipulation of the laissez faire capitalist purity that promotes equality in outcome over an equality of opportunity: economic and social justice.
In an economic system enslaved by the Progressive ideology, economic and social justice is of a paramount importance, trumping the small business, the innovator, the entrepreneur and the producer; trumping and extinguishing opportunity for all, opportunity guaranteed in the United States Constitution.
An economic system enslaved by the Progressive ideology dictates who will win and who will lose; who will acquire wealth and who will live just above poverty, all according to an oligarchical elites’ idea of what is fair, what is not and who is worthy.
Under a Progressive economic system, opportunity is dead and the American Dream, but for those chosen by the Progressive masters, swings from a rope off a branch of a socially engineered (read: Socialist) tree, long-standing on the Progressive plantation.
“Not houses finely roofed or the stones of walls well builded, nay nor canals and dockyards make the city, but men able to use their opportunity.” – Alcaeus