Kant pointed out a fatal flaw in the USA system that he was observing being formed in the 1780s.. We had a system of checks and balances, but officers of the court were allowed to serve in the other branches. To have a lawyer acting as the executive, or in the legislative branches was to allow a conflict of interest. Disaster would follow.
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Today the lawyers and bankers create projects that cost unbelievable amounts, and finance them with bonds. Credit is created with the bonds, and although credit buys the project (tunnels, stadiums, mass transit) it is actual money earned in the future by workers that is mulcted to pay for it.
The great accomplishment of capitalism was to get beyond the usury laws, and then to fractional reserve on money, then fractional reserve on credit. Slavery was no longer necessary, since slaves died and their value ended, but "the people" and their children and grandchildren can be obliged to work to pay for what was built today.
The politicians and their consultants and the war profiteers who build the stadiums all get wealth and power today, drawn from our grandkids' potential. What cannot go on will end eventually. The crash is relative to the heights achieved.
In 1934, Bill Boeing, as the Government became enamored of Stalin and Hitler, and poiticians envious of his success, sold all but one share of Boeing and retired form the field. World War Two saved Boeing, as it became in essence a State Owned Enterprise.
Get big or get out is the Federal Policy, and pension plans are obliged to buy into big business, what with rating agencies saying what is "investment grade" (as if they would know), the FED making policies that support the big business, subsidies, guaranteed sales and regulations all supporting these "winners."
All of the privileges Boeing, Ford, Google, Gernal Foods, Gernal Mills, Gerenal Motors, General Electric and so on get are mostly in the area of domestic support in the form of crushing domestic competition. Then susbidies to make their products attractive overseas.
What happens is these huge USA corporations spend ever more money on themselves and their employees, becoming ever more bloated. Like a University, they swear their costs are going up, so their fees need to go up. Yes, they spend more, but unnecessarily. Good results do not cost more, these entities just spend more. Because they can. And as they spend more, they insist they must charge more, like a pharmaceutical company. And since the above all live off government (taxpayer) largesse, there is no rational end, except for a crack-up bust. We are on the cusp.
All of the privileges Boeing, Ford, Google, Gernal Foods, Gernal Mills, Gerenal Motors, General Electric and so on get are mostly in the area of domestic support in the form of crushing domestic competition. Then susbidies to make their products attractive overseas.
What happens is these huge USA corporations spend ever more money on themselves and their employees, becoming ever more bloated. Like a University, they swear their costs are going up, so their fees need to go up. Yes, they spend more, but unnecessarily. Good results do not cost more, these entities just spend more. Because they can. And as they spend more, they insist they must charge more, like a pharmaceutical company. And since the above all live off government (taxpayer) largesse, there is no rational end, except for a crack-up bust. We are on the cusp.
Given the patterns and practices of capitalism in USA, these state-owned enterprises share technology in an effort to avoid taxes and launder money. Profits move around but technology tends to settle where it has been introduced. As Drucker said, innovation once introduced becomes the standard.
The problem is not that as State-owend enterprises transfer technology to their competitors for short term gain, it is that they crush domestic competition with all of their state-provided assists. So USA is failing on two fronts: One, the lawyers who run this country have destroyed any hope of business start-up, the innovation we badly need to grow our way out of this problem. So forget about domestic recovery. At the same time, those countries to whom we have transferred technology now out compete us overseas, killing off the export markets.
Our hope is in the bust. When the system crashes, we'll have a chance to revive the economy. But a key change we can make right now is NEVER vote a lawyer into office. it is a self-destructive act.
The problem is not that as State-owend enterprises transfer technology to their competitors for short term gain, it is that they crush domestic competition with all of their state-provided assists. So USA is failing on two fronts: One, the lawyers who run this country have destroyed any hope of business start-up, the innovation we badly need to grow our way out of this problem. So forget about domestic recovery. At the same time, those countries to whom we have transferred technology now out compete us overseas, killing off the export markets.
Our hope is in the bust. When the system crashes, we'll have a chance to revive the economy. But a key change we can make right now is NEVER vote a lawyer into office. it is a self-destructive act.
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