Uncategorized
Capitalism and Corporatism: The Conservative’s Weakness
By AAF | Sep 5, 2024
The United States was built by entrepreneurs, inventors, and business owners. That’s why most conservatives strongly support pro-business policies. Unfortunately, businesses often support government overreach in their efforts to achieve success. The pitfall lies in the subtle distinction between capitalism and corporatism.
Corporatism disguises itself in many ways, appearing to be capitalism on its surface while operating with significant state intervention and collusion between large businesses and governments. This often comes in the form of Chambers of Commerce or business councils/associations. These organizations advocate, often on behalf of big companies, for policies that increase the barrier to entry for small businesses while making it easier for the big companies to succeed.
Corporatist systems often present themselves as capitalist by maintaining the appearance of competition and private ownership. However, behind the scenes, the state heavily regulates and influences market outcomes through close collaboration with select industries and organized interest groups, which often leads to market distortions that favor certain players over genuine competition.
In corporatism, businesses often have a direct line to the government, influencing policy in ways that protect their interests, reduce competition, or secure subsidies. This lobbying and regulatory capture create a system that benefits established firms while making it difficult for smaller businesses to compete, thus mimicking a capitalist environment but operating under corporatist principles.
While public-private partnerships are framed as a capitalist approach to leveraging private efficiency for the public good, they can lead to private businesses gaining undue influence over public resources and decision-making. This creates a scenario where profit motives are blended with state support, blurring the lines between free enterprise and government intervention.
Corporatist systems often will implement regulations that appear to protect consumers or workers but, in reality, are designed in ways that favor large, established businesses over smaller competitors. These regulations can create barriers to entry, reduce competition, and ensure that the interests of big corporations align closely with those of the state, all under the guise of capitalism.
Governments and businesses in corporatist systems often use capitalist rhetoric—emphasizing entrepreneurship, market efficiency, and deregulation—while implementing policies that centralize economic power among a few major players. This rhetorical alignment with capitalism helps maintain public support and the perception of a free market system, even as corporatist practices prevail.
Sadly, this is the system under which the United States primarily operates. True free-market capitalism is a relic of the past. However, it is possible to restore the country to its former glory. By linking arms with the hundreds of thousands of pro-liberty Americans, citizens can influence their elected officials to turn the tide against this big government system in disguise. American Action Fund actively works to mobilize citizens to do just that.
The most powerful way to make a difference would be to eliminate unnecessary regulations that create barriers to entry for smaller businesses. Eliminating Certificate of Need (CON) laws would allow more competition in healthcare and prevent established hospitals from preventing competitors from ever getting started. Eliminating occupational licensing boards would enable professionals like hair braiders and auctioneers to practice their profession without being forced to take state tests and pay a fee.
It is also crucial to eliminate government subsidies for private companies and reduce the tax burden on citizens. States like Georgia use tax dollars to subsidize woke Hollywood elites, hoping to attract them into the state. South Carolina gave $1.3 billion in tax dollars to benefit a foreign-owned company with Green New Deal-Style handouts.
American Action Fund is leading the charge to crack down on big government corporatist policies and restore true capitalism in the states. Join the fight today!
Related Blog Articles