On State CapitalismPosted: 6 February 2012
College of Political Knowledge
My readers know that I spend an inordinate amount of time trying to explain and make complex theories more palatable to the average working stiff…..and I hope that I succeed in some small way so that we all can make more informed decisions in our political thinking……
State Capitalism? Now there is a subject that would make a person’s eyes bleed or the head explode….we can either look at it as some secret code word for socialism (not necessarily so) or we could talk about the government programs…….it conjurers up some many images for people….but what is it really? State capitalism, that is. I am sure that most people already have a preconceived idea of what socialism is and that is the subject for yet another post….
State capitalism simply put is….the idea of combining state funded projects and state regulation of the market with private ownership and profit taking…..if you think about it it sounds a lot like what we have now only on a limited basis…..
Now with that under our belt….state capitalism can impose regulations on labor and generate a bunch of it, especially when capitalists are reluctant to invest (sound familiar?)…….it can encompass private financial gain with an overview of the needs of the country as a whole….(still sounding familiar?)…..In really bad economic times…it can motivate and stimulate local investment when other markets look more inviting to the private investors…..(once again, familiar?)…..
Let’s be real……state capitalism can be a far more effective way of dealing with a bad recession or depression than traditional liberal capitalism……
And yes, we can associate state capitalism most often with some form of dictatorship….however in dire economic times it may just be the best way to fight a recession or a deep depression….you want an example? Then look no further than Germany after WW1…here we are talking about economics and not the political theory that we all detest……because of direct government spending in infrastructure and industry….Germany was the first country out of the Great Depression…..
You may not like the idea….but think about it hard….how else will we pull ourselves out of the economic funk we live in today? Sorry to pee on their parade….but spending cuts and tax breaks will NOT bring the US out of this making of our demise……and is it not government’s purpose to insure the country has a strong economy?