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October 20, 2012

First, a brief brain sweep.

If you're like most Americans you falsely associate fascism with racism. This fallacy is so embedded in our national psyche that we consider the two synonymous.

Fascism, however, has nothing to do with ethnicity. The fact that the National Socialists of the 1930s and 40s embraced fascism as their economic preference is coincidental with their racial policies. The two are largely disconnected.

Fascism defines an economic theory that attempts to wed capitalism and socialism. It is a policy of corporatism that was embraced by the government of Benito Mussolini and is sometimes referred to as Italian Fascism.

One basket and a few big eggs

Fascism seeks central government control of privately held corporations and labor unions. It also seeks to limit the spectrum of big corporations to a manageable few.

Is is implemented through hyper regulation, as seen in Jimmy Carter's Community Reinvestment Act in which a peanut farmer from Georgia effectively took the reigns of the nation's banking industry.

Problems arise.

Truly free markets, in which the government assumes the role of referee and not player or coach, tend to thrive in that their competitive nature forces them to adjust positively to adversity as they seek to satisfy the consumers who are, ultimately, in control. Free markets are the ultimate consumer advocacy groups as consumers gravitate towards high quality service and products and, simultaneously, low prices. Markets necessarily deliver the highest possible quality at the lowest possible prices to be profitable.

The advantages of free markets suffer as Big Brother does what it deems best for itself and the economy, with emphasis on the former. That is, the control aspect of fascist economies lends itself to cronyism.

Fascism fails as peanut farmers, like Carter, and community activists like Barack Obama are driven by personal delusions and attempt to implement those delusions upon the nation's economy. Both Carter and Obama possessed an heightened sense of social justice and both attempted to achieve their objectives by tweaking the markets. This they could do because business 'eggs' were in the governments' basket.

The failure of Carter's Community Reinvestment Act is apparent in that it culminated in the real estate crash that forced both the nation's and world's economies over a cliff. Carter's facsist policies forced lending institutions to make bad loans in the form of mortgages to people unable to sustain their payments. Carter's grand delusion was housing equity. But, as evident in today's real estate environment, he failed to achieve his objective. And therein lies the crux of the problem. Neither Carter nor Obama were sufficiently competent to drive the rig and, consequently, ran off the cliff. (There is no human being, nor cartel of individuals, who are as competent as the collective wisdom of free markets.)

What Carter's fascism did to the housing industry and, subsequently, the entire world economy through recession, Obama's fascism may have done to the green energy segment of the economy. In all, Obama's tax investment in a cartel of 34 green energy corporations may have contributed to the demise of all 34 companies. Under the guise of "getting the economy going again," Obama's fascism squandered billions of tax dollars and accomplished the exact opposite of what he promised.

The ultimate solution

The tragedy is that few recognize that the root cause for most economic messes can be traced to government's attempt to be -- at once -- referee, player and coach in the marketplace.

Market regulations should be simple, easily understood, and seldom changed.

While government has a vested interest in smashing Ponzi scams, it has no business (literally) in (1) telling mortgage lenders to whom they may and may not loan money nor (2) investing in green energy.

Free markets are the most efficient drivers of economies, not because they are perfect, but because they are less imperfect than the alternatives.

In free markets the most proficient and competent people find themselves behind the steering wheels. Steve Jobs, Michael Dell and Bill Gates emerged as drivers of the technology revolution. Had a peanut farmer and community activist driven the rig, it never would have left the parking lot.

Free markets are also incredibly efficient at picking winners. That is why Michael Jordan, and not I, excelled  as a professional basketballer. It is also why Michael Jackson is remembered as a basketball legend and a baseball flop.

Examples abound

America and Americans are currently facing a student loan crisis because America's fascist do-gooder politicians implemented Sallie Mae. While spams of altruistic motives may permeate the halls of Congress and flourish in the matrix of Washington's bureaucracy, the outcome is what counts. The proof, as they say, is in the pudding. One may as well place a four-year-old in the pilot's seat of a 747.

The good intentions that launched the Social Security program are questionable. The outcome is apparent. It is worth noting that once a government boondoggle is embedded, it is nearly impossible to manage, let alone amputate. The government has a tendency to confuse malignant economic tumors with economic growth.

The DOE as a classic example

The Department of Education, another ineptitude of the Carter legacy, provides another example. This massive institution does little more than extract huge quantities of tax dollars from the nation's economy. It does almost nothing to advance the learning process of America's children. A free-market educational system in which educators are driven to success through the reward of profit may seem anathema to the American doctrine that education must, somehow, be non-profit. Truth is, free market education is far more efficient than the current welfare model of education.

The entrenchment of this fascist component (read, tumor) upon the body America is made apparent by the opposition to free education via the Internet. The reigns of the education hierarchy are held firmly in the hands of teachers unions that sacrifice education on the altar of members job security. The education business is almost wholly monopolized by government. That reality is so ingrained in America's mindset that almost no one recognizes education as a business.

When I was five years old neither I nor my parents considered my enrollment in a government monopolized school system to be a government handout; a welfare program. The Catholic kids across the street whose parents paid a premium to enroll them in a parochial school may have been more keenly aware of the circumstance, being forced to pay both property tax to fund my education and tuition to fund that of their children. Government schools are no less welfare programs than are public housing and public assistance initiatives such as food stamps. In fact the generic term for government schools is 'public schools'.

Like most Americans, I spent twelve years of my young life in a fascist school system; all along believing the government's monopoly  was the norm because it was preferred. And we wonder why we fail to recognize the fascism of Carter and Obama. Alarming.

  1. Evergreen Solar ($25 million)*
  2. SpectraWatt ($500,000)*
  3. Solyndra ($535 million)*
  4. Beacon Power ($43 million)*
  5. Nevada Geothermal ($98.5 million)
  6. SunPower ($1.2 billion)
  7. First Solar ($1.46 billion)
  8. Babcock and Brown ($178 million)
  9. EnerDel’s subsidiary Ener1 ($118.5 million)*
  10. Amonix ($5.9 million)
  11. Fisker Automotive ($529 million)
  12. Abound Solar ($400 million)*
  13. A123 Systems ($279 million)*
  14. Willard and Kelsey Solar Group ($700,981)*
  15. Johnson Controls ($299 million)
  16. Schneider Electric ($86 million)
  17. Brightsource ($1.6 billion)
  18. ECOtality ($126.2 million)
  19. Raser Technologies ($33 million)*
  20. Energy Conversion Devices ($13.3 million)*
  21. Mountain Plaza, Inc. ($2 million)*
  22. Olsen’s Crop Service and Olsen’s Mills Acquisition Company ($10 million)*
  23. Range Fuels ($80 million)*
  24. Thompson River Power ($6.5 million)*
  25. Stirling Energy Systems ($7 million)*
  26. Azure Dynamics ($5.4 million)*
  27. GreenVolts ($500,000)
  28. Vestas ($50 million)
  29. LG Chem’s subsidiary Compact Power ($151 million)
  30. Nordic Windpower ($16 million)*
  31. Navistar ($39 million)
  32. Satcon ($3 million)*
  33. Konarka Technologies Inc. ($20 million)*
  34. Mascoma Corp. ($100 million)
*Denotes companies that have filed for bankruptcy.

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  1. An excellent essay. The list of failed companies is especially illuminating after your discussion.

    It has been a priority for leftists to characterize fascism as "right wing" to prevent its being located on the left. Thus, even today after the ghastly record of communism in the last century is well known, the only really certified "evil" political regime is fascist National Socialism. It's inherent right-wing pathology is subtly compared to the "nobility" of totalitarian leftist regimes so ardently loved and supported by the beautiful people. If evil can be located exclusively on the right, the left gets a pass and schemes with a whiff of totalitarianism escape scrutiny.

    In reality, to borrow from Mao, Naziism and communism are as close as lips and teeth.


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