PART 2 of 2
Coach Mitchell Goldstein
May 16, 2015
Not expressed in Darrow’s essay, and never examined in discussions of economic theory are the very real consequences of removing economic control from private hands and putting the economy into the hands of government officials. Discussions always go from stating the evils of Capitalism - then postulating a socialistic, i.e. government cure – then the result is to go immediately to Nirvana. The presumption is that government is “good” and that the “good intention” of government somehow mitigates the poor results that always occur when government manages the economy. We never get a glimpse of the troubles in Nirvana. However, just ask any émigré of any socialistic state and you will find that Nirvana is no Shangri-La.
The central theme of Socialism as popularized by Marx is: “From each according to his ability, to each according to his needs” The Cuban doctor, under orders to work in East Africa to combat Ebola, is not there voluntarily and is paid $67 per month. I doubt that Fidel or Raul Castro is paid at the same rate. Of course, their “need” is greater. They make the rules so therefore they get the benefits. This system is only different by a few degrees from what we have in the US?
The evils of Rockefeller, Morgan, Ford, the Robber Barons, the Lords of Wall Street, et al., are labeled as proofs of the ruinous effect of capitalism. Yet, the over regulation of commerce by government is not thought of nor labeled as the fascistic monopoly of power that it actually is.
Capitalism has absolutely nothing to do with combines and monopoly. Combines and monopoly have everything to do with Fascism, which, according to Webster’s 1952 New World Dictionary is defined as: that Socialistic variant which controls the economy via “the retention of private ownership of the means of production under centralized government control.” You own the deed, so you get to keep the machinery and since you own it, you keep it in good repair, but the government tells you how to operate all aspects of the business. The government is in total control. You have absolutely no control over your own business or destiny.
Duplicity and Bribery
The worst duplicity of this charade is that we are told that government regulation is for our own benefit, when in fact, most regulation is created to eliminate competition. In our current system, we get the worst of all worlds. Large corporations bribe government to enact regulation that they have influenced or written outright and for which they have pre-planned the ability to contravene. Before a regulation is enacted, the large firm has already created several ways to legally work-around the regulation, which diminish the regulation to an acceptable amount of cost. The banks are especially good at this maneuver.
Little regulation is created with the intent to hobble large concerns. Most regulation is created to further hobble mid-sized concerns, so that they will be forced to sell out to the large concerns, because the mid-sized company cannot compete, due to the high cost of regulation. The small firms are of no concern, yet, until they grow larger, as they will, because they are more efficient and creative. Then these small firms are dealt with in the same manner. Have we not all noticed the trend to larger and larger corporate giants, e.g. the banks that are “too big to fail.” The recent callous behavior of the “big” banks caused 3000 small community banks to shut down. Yet, regulators created carve-outs in the Affordable Care Act for large concerns, which left small business to flounder. Don’t you recall that legislators were not allowed to see the bill prior to voting on it? Speaker Nancy Pelosi famously said, “We have to pass the health care bill so you can find out what's in it.” For those denying the Cabal of Control, this last manipulation should be the proof needed to wake them up, but no, people have an infinite capacity for self-delusion.
What’s the real motive?
Mr. Darrow is neither naïve nor stupid. It appears that he is an advocate of Socialism. Because of his obvious skills, he believes that he will have a seat at the decision making table. Perhaps those who believe socialistic nonsense will have some input, however that input will be limited to what little crumbs The Power decide they shall have. The real power always remains at the top; power is never shared equally. As such, we always have some version of a Mafia type hierarchy. This is the piece of reality or logic that the Darrow’s of the world refuse to understand or internalize.
History shows that men have always been ruled by a small cabal. When the totalitarianism rises to a level that can’t be tolerated, then a dedicated band will overthrow the cabal and institute their own cabal. The reign of terror then continues, with a new leader and a new central committee, but often with the support of the remaining levels of the previous cabal; after all, they have experience in running / controlling systems and they have shown to not have qualms in doing their part to continue the control. Loyalties are easily shifted because, “It’s just business,” and “Everything’s relative.”
False labeling as a tactic
This “business” in the US is mislabeled as Crony Capitalism so that the left has a way to establish themselves as the “right” choice. Wrong – big “business” in the US should be correctly labeled as Fascism. We have been a substantially fascist nation for a long time, certainly since just prior to the Civil War. The effects of Fascism have become more obvious, especially since FDR. Now, everything is government controlled. If you don’t believe me, just try to do anything and see how far you get without Big Brother questioning you and imposing its will.
It is understood by us all that government is actually controlled by The Power, that small plutocratic cabal which operates behind the scenes, known, but never labeled and certainly never challenged. Interestingly, in a speech, JFK did label this cabal and two weeks later he was killed. See for yourself. For those who do not believe in Conspiracy Theories or the Conspiratorial View of History, this clear statement by JFK will hopefully wake you from your self-deluded state.
Men are lazy, venal, greedy, and wanting power. Left unchecked, many of us would just take what we want. In an anarchistic world, power is unchecked and immediately resorts to dictatorship. In a Libertarian world, behavior is self-regulated but there is no moral code. As such, nothing prevents the individual from falling into narcissism and nothing prevents society from falling into barbarism and then dictatorship.
The Answer … I mean, My Answer
I won’t speak to any other area except America. We need to revert to Common Law, which is based on common sense and personal responsibility, and we need to dramatically widen the court system to allow for easy and quick resolution of issues.
Tort Law or the Law of Negligence allows for us to legally confront a firm and, were it made very easy to engage that firm within the legal system, then almost all large firm nonsense would be inundated with legal issues of their own making. Because they could no longer control the entire legislative and judicial process, of necessity, large firms would break themselves up, real competition would be reinvigorated; men would be forced to act responsibly, or be quickly brought to court, resulting in a US that would be back on a better course. Halleluiah!
What would happen if corporate America were actually to be held to a higher standard? What if the Boards of Directors and the senior management of large companies were actually held personally responsible for their actions?
In 1970, Ford decided to not repair known fatal flaws in the Pinto. Using cost-benefit reasoning, which is an analysis in monetary terms of the expected costs and benefits of doing something, Ford calculated to absorb anticipated losses from law suits. Many people died a fiery death because of rear end crashes and gas tank ruptures. Imagine: What if Lee Iacocca, et al. were found guilty of conspiracy to murder and other high crimes?
I suggest that: If corporate board members were held personally responsible for corporate crimes, that corporate oversight would be much more strict and comprehensive. If senior management were held responsible for corporate wrong doing, then there would be many more whistle-blowers, if more CEO’s were sitting in jail for allowing despicable acts, then there would be much less corporate wrong doing.
I further suggest that if there existed a real system to uphold standards for responsibility through Tort Law, that industries would then be forced to self-regulate, or be held accountable to the current well adjudicated standard, i.e. that corporate management is guilty if they knowingly did do or did not do something that was reasonable to do in order to safeguard the public. According to the current standard, corporate management is also guilty if it is reasonable that they should have known to do something to safeguard the public.
How is this done? My Big Idea.
Create the framework to determine the outcome of a non-complicated issue or case within 90 days. Make most issues able to be settled within a Small Claims Court framework. This result can be easily and cost effectively achieved by significantly expanding mediation and arbitration, creating a large number of new judges and greatly expanding the current court system to facilitate a constitutionally mandated speedy trial.
As a landlord I heartily endorse mediation with a tenant. I know that it can work, just as Small Claims Court works.
Example: take a bank or any company to court to get satisfaction for a grievance, e.g. an unjustified service charge. The bank has to show up with an attorney which is usually many times the cost of your grievance. The bank 1. Will not show up and lose automatically (you win), 2. They will settle prior to court (you win), 3. They go to court and win, in which case you are no worse off because the bank has already taken their fee.
Imagine: if it were a real part of the American thought process that almost all grievances would go to mediation, arbitration or to court, sort of like mandatory voting. Imagine if the process was inexpensive and completed within 90 days? Imagine if the American public actually did take big corporations to court to resolve grievances? I expect that big corporations would find it so costly to defend themselves that they would improve their policies quickly. Further, I expect that big corporations would be forced to upgrade their products and services so that grievances would be far fewer and less costly. Imagine if it were always less costly to fix the problem than to go to court. In the Ford case, many people would still be living.
Imagine the effect on corporations if they were to actually be held responsible for their nonsense and bad policy? People at all levels would be more thoughtful before doing anything, knowing that their actions would have consequences. Further, people would naturally start to examine all actions, especially the actions of government. Imagine if lobbyists could be held accountable for pursuing bad regulation? I expect that class action suits would abound. This is the real benefit. Imagine if Monsanto, et al. were held accountable for the harmful food they intentionally ply us with; imagine if “Too Big To Fail” bankers were jailed for purposefully creating underwriting standards which allowed bad loans, which is exactly what they did. If you want to break up the Mega Corporation, or make it more receptive and a better corporate citizen, then sue the hell out of them. Small companies are much more responsible, hospitable, more creative and efficient.
The Big Idea already exists
BTW there already exists the bones of a mediation system throughout the county, usually as an adjunct to the court system. Mediators are usually volunteers. The system merely needs to be expanded and for citizens to plug into this asset on an expanded basis.
The only thing that keeps a society free is for people to be allowed to acquire private property, along with the desire to be moral, usually expressed through religious standards. For freedom to exist, for freedom to be maintained and for a free society to flourish, both private property and moral responsibility must thrive. This Freedom Philosophy is the only paradigm that will allow a high enough percentage of men to prevent an oligarchy or plutocracy from forming and taking over. Sadly, The Power has already engulfed America.
G-d Bless US
� 2015 Mitchell Goldstein - All Rights Reserved
Coach (Mitch) Mitchell Goldstein is a Nationally Recognized Expert in tax delinquent property investing and a Real Estate Investor since 1972 in commercial and residential properties.
Coach Mitch is dedicated to helping would be real estate investors to attain their financial goals through investing in tax delinquent real estate and has created various products and services to facilitate the tax delinquent real estate investor.
Mitchell is a Jewish American of Hungarian and Polish extraction and a fan of Locke, Jefferson, and Madison, whose instincts against accumulated power have proven prescient; and of Washington, and Hamilton, whose notions regarding consolidated power required that honor and the highest moral behavior be the hallmark of those exercising power.