informationliberation
The news you're not supposed to know...




An Introduction to Austrian Economics: Understand Economics, Understand Everything
The Century of the Self: The Untold History of Controlling the Masses Through the Manipulation of Unconscious Desires
The Disappearing Male: From Virility to Sterility

The Obama Deception: The Mask Comes Off
Operation Gladio: The Hidden History of U.S. Sponsored False Flag Terrorism in EuropeThe New American Century: The Untold History of The Project for the New American Century
(more)
Article posted Jul 01 2011, 10:29 PM Category: Commentary Source: David S. D'Amato Print

What Are We "Investing" In?

by David S. D'Amato

President Obama, CNN reports, is on the road touting his administration's "critical investments in the country's long-term development," trumpeting a desire to see the products of the future "bear the proud stamp that says 'Made in America.'" Meanwhile, the President's agenda for the week also includes meetings with congressional leaders to discuss the possibility of raising the debt ceiling.

While the connection between ballooning government debt and attempts at invigorating American Big Business may not be immediately obvious, the two are very intimately joined. Quite contrary to a free market untouched and unaltered by state intervention, the American economy has been appreciably permuted by government involvement in every area.

Given how heavily the state is invested in business (with our stolen dollars), it would be misleading to say that the government is not itself actively engaged in commercial activities. In 2010 alone, for example, the federal government spent more than $150 billion on research and development, only to turn around and grant monopoly patent privileges to the rich companies whose new inventions we taxpayers footed the bill for.

So when the President starts talking about "investing in development," that's thinly veiled code for privatizing the profits of the common man's funding of some of the biggest companies in the world. The political class can call that whatever they'd like, but it's not the sort of free market that market anarchists advocate for.

The unmistakable truth about the state is that it can't stop spending money it doesn't have. In order to survive in spite of the structural instability of its economic system it must continue to spend. Taken as a whole, the state capitalist model operates in a constant state of loss. Because it is incapable, in the aggregate, of producing things that consumers want, it must seize and deplete ever more resources in order to carry on the illusion of balance.

As Kevin Carson notes, the state's economic system, with its subsidies to elephantine corporations and its pattern of waste, "equates consumption of inputs to creation of value." Absent state intervention to make many of those "inputs" -- which account for the present day corporation's major costs -- available at a discount, it would be impossible to remain "in the black."

The state is primarily a class instrument designed to interfere with the process of voluntary exchange in order to allow elite commercial interests profits that a free market would not. This means, however, that state expenditures must go on bankrolling, through a medley of corporate welfare categories, the expenses of Big Business.

Could we remove both government sponsorship (direct and indirect) and government barriers that empower corporate cartels, the towering structures of the global economy would collapse under their own weight. They are therefore very similar in their functioning and in their economics to the state-owned and -operated pure monopolies that libertarians so steadfastly denounce.

Just as state agencies have no incentive to stay under budget and indeed have every incentive to exceed it, so too do state-protected firms have every reason to dissipate resources. The free market actually does engender all of the discipline and productive efficiency that libertarians say it does, but the statist, corporatist American system is not a free market.

A free market is a system of voluntary exchange where everyone carries her own costs. With the state interrupting that process and stealing from the poor to give to the rich, we get what we have today. If that's what investing in the American economy looks like, count me out.
__
C4SS News Analyst David S. D'Amato is a market anarchist and a lawyer with an LL.M. in International Law and Business. His aversion to superstition and all permutations of political authority manifests itself at www.firsttruths.com.





Latest Commentary
- The Index Card of Allowable Opinion
- Should Government Have the Power to Quarantine?
- Obama Appointee Supports Individual Rights
- Let the Market Contain Ebola
- The State as a Royal Scam
- Glenn Greenwald TED Talk: Why Privacy Matters
- "Crush the Seed of Ishmael": A "Final Solution" to the "Muslim Problem"
- The State Has No Right To Do Anything









Comments Add Comment Page 1 of 1
Dave

Posted: Jul 03 2011, 8:34 AM

Link
the farm is prospering, an internal harvest at almost everyone's expense

from what i read the crown's slave market of US plc is booming with a new gulag opening weekly. from the figures i looked at the number of people kidnapped and currently held by the judicial mafia is a world beating 2.3 million, 700 per 100k people compared with 110 for china.

the system was designed to work against everyone, to do so it had to operate despite reality and couldn't ultimately last.

whilst the judicial system alone could not achieve a global prison system, a mad economic system could approach that goal during expansion. it followed the golden rule, he who has the gold makes the rules.


Add Comment
Name
Comment

* No HTML


Verification *
Please Enter the Verification Code Seen Below
 


PLEASE NOTE
Please see our About Page, our Disclaimer, and our Comments Policy.


FAIR USE NOTICE
This site contains copyrighted material the use of which in some cases has not been specifically authorized by the copyright owner. Such material is made available for the purposes of news reporting, education, research, comment, and criticism, which constitutes a 'fair use' of such copyrighted material in accordance with Title 17 U.S.C. Section 107. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner. It is our policy to respond to notices of alleged infringement that comply with the DMCA and other applicable intellectual property laws. It is our policy to remove material from public view that we believe in good faith to be copyrighted material that has been illegally copied and distributed by any of our members or users.

About Us - Disclaimer - Privacy Policy



Advanced Search
Username:

Password:

Remember Me
Forgot Password?
Register

Mission Creeps: Homeland Security Agents Confiscate Women's Panties For 'Copyright Infringement' - 10/23Chicago Cop Who Assaulted 89-Yr-Old For Requesting He Stop Cursing Gets 3 Years - 10/23Doctor Assaulted by Police at Dying Son's Birthday, Tasered so Many Times He Had a Heart Attack - 10/23The Compassion Of the State: Town Sells Mom's Home At Auction Over Unpaid $95 Tax Bill She Was Never Notified About - 10/23Call the Suicide Prevention Hotline -- Get Killed by a SWAT Team - 10/23Canadian PM Vows To Take Away Citizens' Rights In Response To Parliament Attacker - 10/24Man Brutalized & Stopped Over 20 Times in 5 Weeks by Cops Mistaking Him for Murderer - 10/23Either Praise the Police, or Shut Up - 10/22

Rialto, CA Police Made to Wear Cameras, Use of Force Drops by Over Two-ThirdsCop Who Karate Chopped NY Judge In Throat Gets Off Scot-FreeFlorida Cop Smashes Compliant Woman's Face Into Car -- "Maybe Now You Can Understand Simple Instructions"VIDEO: Lapel Cam Reveals A Day In The Life Of A U.S. Police Officer (Tasing, Beating, Breaking & Entering, Stomping On Heads... and Laughing About It)Caught On Tape: Officer Sucker Punches Inmate In Face, Files Report Claiming 'Self Defense'Insult Person On Twitter, Go To JailSWAT Team Brings TV Crew To Film Raid Against Threatening Internet Critic -- Raids Innocent Grandma InsteadCop Karate Chops NY Judge In The Throat
(more)

 
Top