Protectionism is the embodiment of the Large and Nefarious Government
Originally Published by Data Driven Investor
The history of corporations reaches back to the medieval era when the state would authorize a group of people or a company to act as a single entity and be recognized as such in law to carry out specific tasks. Since- constitutions and policies around corporate formation have changed.
Registered corporations possess legal identities, and their shares are owned by shareholders whose liability is generally limited to their investment. Hence, they do not actively manage a corporation. Shareholders instead- elect or nominate a board of directors to control the corporation in a fiduciary breadth.
Because of their given structure and personhood status, corporate entities have grown into the political arena. Hence- the combination of having personhood privilege, limited liability of its stakeholders, and the collective state of the corporation has placed it at a significant advantage.
Over the past few decades, large companies have discovered ways to play the political game. Today, Companies dedicate massive reserves to politics, and their large-scale involvement increasingly redirects and cramps the functions of political conformity. The outgrowth of such compliance has paralyzed democracy and has created an environment that remunerates lobbying over innovation.
Before the 1970s, only a handful of corporations had their lobbyists. But today, almost every corporation has put aside humongous funds for political lobbying purposes.
In the 1960s and the early 1970s, when United States Congress enacted a series of new social regulations to address a spectrum of environmental and consumer safety interests, the business community lacked political will and the political aptitude to stop that movement.
The new social regulations, together with the plummeting economy, triggered corporate involvement in politics. After that, corporations hired lobbyists and began paying attention to politics. Still, the entity’s political engagement and lobbying practices in the 1970s were primarily reactive, as they were trying to stop the sustained progress of the regulatory state. They were fighting a proposed consumer protection agency, trying to stop labor law reform. Today corporate lobbyism has taken a proactive form as they are actively seeking legislative change, which is at large fiscally driven.
Today corporate lobbyists have conquered American democracy.
The Concept of Corporatocracy and Corporate Liberalism
Corporatocracy is the term used for an economic and political system merely controlled by corporations or corporate interests. The notion describes practices such as bank bailouts, excessive pay for corporate executives, and objections such as the exploitation of national treasuries, people, and natural resources. It propagates globalization, unfair lending practices by banks, and biased “free trade” agreements. All said have evolved over the last few decades as the upshot of utter occupation of corporations in the political stage.
In the United States, corruption has become widespread, while business executives spend notable amounts of money, ensuring that the government does not regulate their ventures. Corporations have a significant weight on the regulations and regulators that monitor them.
Lately, we can take the corporate involvement in politics even one step further and witness the corporate elite serving both as the chief beneficiaries for the corporations and the top lobbyists for the supposedly anti-business regulations. The idea, also called Corporate liberalism, is when owners of corporations and high-up government officials become the class of elites. For instance, today, it is widespread for governments to partner with large entities under social welfare programs like the Affordable care Act, Medicare Part C, and D.
Corporate liberalism is a principle that opens the door to imperialism. The elite class then conspires or less maliciously; the system inspires the elite to diverge power away from the low or middle class. That is, to avoid the risk of revolution from the poor and powerless and prevent the realization of class conflict, the elite has the working-class pick sides in a mock conflict between business and state. The latter is the basis for some liberal democrats being against large corporations. However, practically despite the ideological disparity, most liberal policies, at least in the United States, have been pro-corporate liberalism. The Affordable Care Act in the healthcare system is one clear example of subsidizing managed care systems and Insurance industries, which have a clear track record of lobbying history.
America is becoming a Liberal State.
Over the past century, the United States has become more and more liberal. Although the underlying shift is still a matter of controversy, it is my personal belief that such a change is the product of continual immigration from socialist countries or even oppressive nations. In addition to immigration, particular left-wing populist rhetoric over the years has played a significant role in swaying citizens’ minds into a liberal state.
Today America’s Political realm Is liberal more than ever before. The country that was constitutionally almost intolerant towards any form of big government and or government takeover of social issues now is riddled with left-wing statism.
Indeed- The American populace is in the spirit of “big government.” The U.S. constituency is more sensitive to left-wing economic policy now than in the past 68 years.
Interestingly to note amid the paradigm shift is that as the corporate influence increases and small businesses suffer a setback due to the lack of competitive edge, so are increasing social issues such as unemployment and healthcare costs. Of course, the conservative constitutionalist is not passive amidst all the shifts. That is why corporations find a way to adapt, as they have for the last few decades. That is, corporations, with the help of their power and money, have had to go beyond adapting themselves to the situation by clasping left-wing politics.
Corporations are becoming more than ever Liberal.
It is the common notion that Democrats are against big corporations and Republicans protect the corporate interest. Although there may have been some truth to that in the past, it is no longer valid. Contemporary politics is invariably overtaken by corporate liberalism, with only one difference: they have become industry-specific. For instance, healthcare, environmental agencies, and unions are left-wing supporters, whereas energy, financial sector, and insurance industries are typically right-wing. We can all watch and listen to politicized topics around these issues in public media almost daily. Generally, corporations are leaning liberal, merely because the corporate sector is striving to make itself popular enough with each political faction so that politicians will implement pro-corporate policies when in power or do not implement anti-corporate plans.
Also- taking on hot social issues at the core of the left-leaning bottom line seems to be an excellent strategy to please customers and workers. To the same extent, Companies also realize that being openly conservative Is not to their long-term benefit. Therefore, although their original plan may prevail as a business tactically, their strategy focuses first on maximizing their public support. Surveys suggest- that people prefer the type of brands that embrace liberal ideals like “LGBTQ rights” and “anti- Republican companies,” “Black lives matter,” or “ME TOO movement.”
It was not long ago when anti-corporate sentiment in the U.S. was most energetic on the left. We all caught corporations denounced as being ruthless globalists. And it was plausible to be a liberal saying it or organizing a protest over it.
Today, while anti-corporatism still has a niche in extreme liberal rhetoric, it has also become a significant component of Republican and conservative discourse.
Corporations and Politics are bad Businesses.
Mixing business with politics is a high-profile and explosive endeavor, as mentioned earlier. Companies face an increasingly polarized political atmosphere with scrutiny, a social-media outrage culture, and activists eager to impact corporate eminences. That is also one of many reasons why more and more businesses are adapting political identities of their own and responding to social issues. For instance, when Chick-fil-A founder publicly upheld gay marriage, it led to boycotting Chick-fil-A, and the other side reacted by Supporting it. Today the fast-food restaurant has one of the most extended drive-thru lines in California one can imagine. Or Apple declared it would not sponsor Republican National Convention in 2016, and reportedly Google and Walmart did the same.
Corporations are inherently Globalists.
Globalization is the process of expanding connectivity amongst people from across the globe. The term represents no claims whether globalization is beneficial to society, even though adopted by supposedly famous global philanthropists such as Bill Gates of Microsoft, Warren Buffett, and George Soros.
Over decades after the fall of the communist iron wall, socioeconomic globalization took a steep rise. And it would not have been conceivable without the lordship of the corporate cartel and serfs of the populace. Amidst this speedy extension remains a simultaneous concentration in market power. The world’s 1,000 most prominent companies in 1980 represented only about 30% of the GDP of the OECD nations. By 2010, that number rose to 72%. Today large corporations have captured almost every aspect of the global economy. This trend has Pressured to create some form of relentless consolidation among technology, pharmaceuticals, airlines, and other sectors, reflecting investor pressure to achieve growth through organic expansion and acquisitions.
Consequent to the rapid expansion of globalization, A wave of anti-globalist protectionism by radical populist factions has evolved, giving rise to extreme Political volatility as one we are witnessing today within the USA and across the world. One prominent indicator is- “We will no longer surrender this country, or its people, to the false song of globalism — Donald J. Trump, President of United States.”
The anti-globalization movement is a social movement against economic globalization, which is in contrast to neoliberal globalization.
The Hypocrisy of Globalization, Politics, and Corporatism
The irony of what is described within the context of this article is the utter discrepancy between the average citizen's understanding of the corporate and liberal mindset. People today hate corporations yet are pro-globalization at the hands of the corporate cartels. They are pro middle class and helping the needy, yet turn to politicians who have liberally subsidized corporations that they lousy-mouthed in the first place. — It simply doesn’t make sense!
Corporations are like wolves disguised under the sheepskin. To persuade us further, they switch between the black and white color of the skin.
We are supposedly living in a globalized society. However, the most apparent global phenomenon we witness is the resurgence of nationalism. Some rephrase the latter as protectionism; nonetheless, protectionism is nothing but crony capitalism. Well-connected corporations, through corporate liberalism, request shields from the competition, which the government often awards. The transfers above wealth from all consumers to a few corporations and expands the power and role of government.
“Protectionism is the embodiment of the large and nefarious government.”
We need to allocate the balanced power grid to the local, national, and global levels. Concomitantly a discussion around the proper role of global governance and institutions with more emphasis on control over communities’ towns, counties, cities, states, and much less on countries is a fundamental necessity.