Thursday, October 3, 2013


Crony Capitalism and the American Welfare state:  joined at the hip
Specific Answers - Gary North – 9/28/2013

This is a very long article that opens your eyes.  Behind closed doors big government and big business work hand in hand to ensure that small business remains small and is unable to compete with big business.

Crony capitalism favors the super rich. The super rich are willing to pay income taxes to fund a small portion of the welfare state, because the bulk of the welfare state is funded by taxes on the middle class. The super rich don't pay much into Social Security and Medicare/Medicaid. The working class pays: "regressive" taxation. These are the largest welfare programs there are. The super rich avoid having to pay much of anything into the two largest welfare state programs there are. It is a sweet deal for the super rich. The federal government's regulatory apparatus keeps growing, and the super rich's balance sheets keep growing.

This is the greatest single irony of the liberal Establishment's version of the welfare state. It was never funded by the rich. It was funded by the working class on a flat-tax basis. The super rich have watched in amusement as the Left invoked wealth-redistribution by the state. The system left the rich untouched.

Social Security and Medicare/Medicaid are guarantees that the welfare state, as proposed by the Democratic Left, will never come into existence. If there is any welfare money left to spend, granny is going to get it, and the working class is going to put up the funds. These were the greatest political bait-and-switch scams in American history. In the name of soaking the rich, the middle class and the poor created a welfare state funded by them. The rich walked away from the trap laid for them by their political enemies. The welfare state is the ally of the super rich. It costs them little. It justifies the federal government. The federal government is the source of the protection that the super rich enjoy. Crony capitalism's ally is the welfare state. 

Northwoods Patriots - Standing up for Faith, Family, Country

No comments:

Post a Comment