Cronyism, Cronyism, Cronyism.

I think that it is interesting that when Capitalism started in its modern form it was with the aid of the government. One thing that a lot of people dont realize is that Modern Capitalism is more the brain child of Alexander Hamilton !eah" the g#$ on the ten dollar bill% than it had to do with Adam &mith. &mith believed in a market free of an$ hindrances or interference b$ the government. He believed that the onl$ role of the government in the econom$ was to ens#re that there were no interferences" price fixing" or restrictions. Capitalism is part of an idea called 'ational (conomics in which the politicians or r#lers take an active part in the development of the econom$ of the nation thro#gh the #se of protective legislation" restrictive trade" mercantilism" s#bsidies" tax breaks" and anti) labor #nion laws" standardized c#rrenc$" blind nationalism*d#ring this time" we adopt a national anthem and all sorts of patriotic s$mbols s#ch as the +ledge of Allegiance" and a central bank overseeing it all*which doesnt appear #ntil ,-,. b#t is on the table. /he idea is that as the ind#stries develop" the co#ntr$ as a whole wo#ld prosper*i.e. /rickle 0own (conomics. Contracts and special treatment b$ the 1overnment was afforded to individ#als like 2anderbilt" 3ockefeller*in fact" back in their time" it wasnt #n#s#al for the Capitalist to shoot and kill an$ worker who might be brave eno#gh to sho#t fo#l over some of the ab#ses of these b#siness leaders and have no p#nishment for doing it*labor leaders were prosec#ted #nder what was called the Conspirac$ 0octrine. Also to be noted when this adoption of these economic ideas were embraced and placed into practice d#ring the Civil 4ar5 Alexander Hamiltons image starts to appear on the mone$. /he Civil 4ar didnt start beca#se of &laver$ as most are ta#ght. It was started beca#se the government had been filled with eno#gh of these politicians who believed in Capitalism and wanted to p#sh their agenda thro#gh no matter the cost. +art of that plan was the enforcement of tariffs. It seems that the &o#th preferred to b#$ their steel from 6ritain" not from the 'orth beca#se 6ritish &teel was of higher 7#alit$ and cost less at the time. /hese politicians were going to tell people where the$ were going to b#$ from and decide which ind#stries wo#ld be protected and developed*in other words a +lanned (conom$" not a 8ree)Market &$stem as &mith had envisioned. Oh s#re" slaver$ was a thorn and the$ also wanted to get rid of it. 6iggest reason is that things onl$ have val#e and are demanded b$ people who want to b#$ them. If $o# have a nation of slaves" $o# onl$ have people who desire to be free and arent concerned over things so m#ch. 'o demand" no val#e" no mass prod#ction" no need for emplo$ees or the ind#str$. /his is ke$ also" with a slave5 $o# are responsible for that slave twent$)fo#r9seven. 4ith an emplo$ee" that responsibilit$ ends at the end of the da$ and the pa$check. 6esides" as I said" witho#t the demand for cons#mer goods there is no need for the prod#ction and development. Also if the &o#th had ind#strialized with a slave work force" the 'orth wo#ld not be able to compete. 6#t the ke$ is that witho#t the demand of cons#mers $o# dont have a need for this development. +l#s with the pop#lace dependent on these Capitalist for :obs" the$ are kept #nder control of t$rant foremen witho#t the government violating their rights.

'ow this is the interesting part" when the government was aiding these companies and doing ever$thing the$ co#ld to help them get started and grow" it wasnt termed Cron$ Capitalism5 it was :#st Capitalism. Cron$ Capitalism onl$ appears in the c#rrent time" so c#rrent" that when I was st#d$ing economics in college in the earl$ nineties" we never heard of it. It has been applied to the other side of the sit#ation. It is a term being #sed to make capitalism seem to not be inherentl$ wrong. /he problems arise from 1overnment interference not from Capitalism" $et Capitalism was created in this co#ntr$ thro#gh 1overnment interference when it picked and chose what ind#stries to back. Capitalism when I was st#d$ing economics in m$ earliest da$s was defined as the government protection and development of their respective nations capital. 6#t that has changed as if 'ew &peak has totall$ taken over the nation to manip#late. Cron$ Capitalism is applied to the opposite side of the Capitalism (7#ation. In the earl$ ,-;;s things were beginning to come to a boil. /here was a rise in Anarchists" 'ationalists" &ocialists" Comm#nists" and man$ other ists who were all threatening to topple those on top. /he$ were tired of the greed and the ab#se of those on top. +oliticians s#ch as /heodore 3oosevelt recognize the danger that is b#ilding and starts p#shing thro#gh legislation to bleed off the steam and tr$ to calm things down. He r#ns into resistance and is branded a pariah b$ his own class beca#se he is seen as a class) traitor. <aws providing relief to labor from the ab#ses of their ind#strial overlords start appearing and are taken serio#sl$ b$ o#r government following the 3#ssian 3evol#tion in ,-,=. /hose on top are shaken as the$ see that these gro#ps which the$ tho#ght that the$ co#ld b#ll$ with soldiers and police were a bod$ to be taken serio#sl$. /here are all sorts of laws introd#ced to help the working person" to protect the environment" to essentiall$ stop the ab#ses of those on top. (mplo$ees co#ld no longer be legall$ cheated in their pa$" labor #nions were being recognized*altho#gh man$ wo#ld be rife with corr#ption" the$ did help their members at first. 8rom the government" these Capitalist benefited in man$ wa$s" it was onl$ when the$ want to do awa$ with the reg#lations which came abo#t from their ab#se to the labor" the nation" and the environment do $o# see them kicking and screaming and cr$ing Cron$ism. 6#t $et" Cron$ism was not the case when the government aids them onl$ when it tries to restrict them from their greed$ ab#ses.