Time magazine: Why America is in decline
POSTED AT 8:01 PM ON JULY 21, 2015 BY BRUCE MCQUAIN
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My guess is most of us would agree that America seems to be in decline, but not for the reasons TIME magazine does. Much of the decline is centered in the politics and policies of the governing party.
But TIME is pretty sure that, given the study that they cite, the reason is … capitalism. Here’s the “it was great, but” reason:
“We looked at very broad measures, and at individual measures, too,” said co-author Hershey H. Friedman, a business professor at Brooklyn College – City University of New York. The most dangerous sign they saw: rising income and wealth inequality, which slow growth and can spark instability, the authors say.
“Capitalism has been amazingly successful,” write Friedman and co-author Sarah Hertz of Empire State College. But it has grown so unfettered, predatory, so exclusionary, it’s become, in effect, crony capitalism. Now places like Qatar and Romania, “countries you wouldn’t expect to be, are doing better than us,” said Friedman.
I wish those who opine about this sort of thing would begin to delink capitalism and “crony capitalism”. Because as soon “crony” is added, “capitalism” is no longer evident. Instead you have powerful corporate/social/political constituents helping write laws that raise bars to entry in a markets to impossible heights. You have the same entities suggesting regulations which have the same effect. Capitalism, in its barest essence, is a voluntary transaction between two free people which ends profitably for both. That’s it. When government begins intruding with regulations and laws designed to limit and protect certain constituencies, from corporations to unions, that’s not capitalism, whether you stick “crony” in front of it or not.
It is certainly cronyism. The government attacks, for instance, on Uber are rampant cronyism. They’re designed by government to protect an existing constituency that doesn’t like the competition (and has had a government granted monopoly for decades). Of course, in the end, it is the consumer – i.e. the citizen – who is hurt by this sort of cronyism.
And it appears that cronyism has gotten worse and worse over the past few years. So while America may be in decline, it isn’t because of capitalism.
It’s because of cronyism, government favoritism, or whatever catch word or phrase you wish to tag the phenomenon with. But leave capitalism out of it.