Crony Capitalism … Then and Now

“The mainstream (liberal) historians make much of the working class crisis of the 1870’s – 1890’s, saying that during those decades the federal government was obviously being run to satisfy the selfish interests of the Northern capitalists — and the workers subsequently endured cruel working conditions and bare subsistence. Further, the economy was grinding to a halt because workers and farmers weren’t earning enough to buy the vast array of products being manufactured. And all of that is quite true.

But then historians trot out the Progressive movement cited here to prove that the intrusive, unconstitutional, industrially-oriented big government created by Lincoln and the Radical Republicans in the 1860’s had been justified after all, because under Theodore Roosevelt it could and did react to the needs of the country after the turn of the century by haltering the capitalists. Those historians then have gusty editorial sighs of relief: the system worked! Big government did right, and thereby prevented the class warfare revolution of the poor which otherwise would surely have destroyed the United States. Therefore, they argue, the liberal’s socialistic government of today has precedent and is equally necessary and justifiable.

But in fact, those reform measures from 1887 onward were carefully designed to do very little to restrain the capitalists, even though they expanded the power of the federal government considerably. Viewed close up, they were mostly worthwhile-but-token measures…. None of that (what really turned the US economy around during the early progressive era) resulted from the socialist movement, or from big government per se.”

Frank Conner
The South Under Siege; 1830-2000 — pg. 237-238


A few observations

1.) These united States have been living with Corporatism to one degree or another for over a century and a half now. The “haltering capitalists” that Conner speaks of is the Gilded Age Robber Barons like Morgan, Rockefeller, Carnegie et. al. These men made their fortunes by being in bed with the Federal Government and manipulating it to pass legislation favorable to them at the expense of any potential competition. In point of fact these men were not “haltering capitalists” but “haltering socialists of the Corporatist variety (Crony Capitalism).

The Corporatism that we have today is merely a continuation of the Corporatism that gripped this Nation as a consequence of the War against the Constitution. This war was funded by Northern Crony Capitalists as they funded Lincoln’s war in order to turn the South into a colonial farm to be milked to the profit of the Crony Capitalists of the Railroad, Textile Mills, and Shipping variety.

2.) Note the pattern. The Feds create the problem. Then they decry the problem blaming the problem they created on Capitalism. Then they offer solutions that will enrich themselves and their Crony Capitalists – Socialists partners. Finally, when the Fed’s solution does not work and only magnifies the problem they again raise a hue and cry about the problem blaming their failed policies that have enhanced and magnified the problem to be the fault of Capitalism, when in point of fact, the fault is that free markets have not been allowed the opportunity to address the problem. This program of blame is being repeated right now with Health Care. Health Care has not failed because of Capitalism. Health Care has failed because the Government involved itself. The solution that the Government has created now (Obama-care) is designed to fail so that the Government can come back and blame somebody in the Capitalist tent with the purpose of finally arriving at the Socialist Single payer program.

Which itself will not work.

3.) Court Historians are epic liars. Our court Historian liars are as responsible for this Corporatist cycle of failure as much if not more than the Feds and the Crony Capitalists. The lying Court Historians keep blowing smoke so that the American public never wake up to the fact that the liberal-progressive-leftist-cultural Marxist-Centralized-Omnipresent Government has never succeeded in “fixing an economy.” Naturally, the court Historians always give credit to the Feds for coming through but the credit inevitably really goes to some free market aspect that survived and flourished despite the repeated attempt by the Feds and the Crony Capitalists – Socialists to choke it out.

4.) All of this suggests that today the people exist, as cattle, for the Government and the Crony Capitalists to milk at their leisure. Those who are not of the Politician and the Elite mega Corporatist class exist as grist to enrich them.

The answer to all this is to smash both Centralized Government and the Elite mega Corporatist class because they are both Marxist to the core in their economics. The failure of the rank and file American is that they tend to see one of the other of these players as the problem instead of understanding that they are both the problem. Consequently, some Americans see the Mega Corporatists as a problem and so they offer the answer of bigger Government to control the Corporatists but these Americans don’t realize that the bigger the Feds are made the better it is for the Corporatists. Similarly, other Americans get ahold of the other end of the stick and suggest that the way to end the problem is to empower the Mega-Corporatists as “Capitalists” and to shrink the Feds. However, empowering the Mega-Corporatists as Capitalists is to, at the same time, empower the FEDS. Both the Mega Corporatists and the FEDS have to be broken at the same time.

Author: jetbrane

I am a Pastor of a small Church in Mid-Michigan who delights in my family, my congregation and my calling. I am postmillennial in my eschatology. Paedo-Calvinist Covenantal in my Christianity Reformed in my Soteriology Presuppositional in my apologetics Familialist in my family theology Agrarian in my regional community social order belief Christianity creates culture and so Christendom in my national social order belief Mythic-Poetic / Grammatical Historical in my Hermeneutic Pre-modern, Medieval, & Feudal before Enlightenment, modernity, & postmodern Reconstructionist / Theonomic in my Worldview One part paleo-conservative / one part micro Libertarian in my politics Systematic and Biblical theology need one another but Systematics has pride of place Some of my favorite authors, Augustine, Turretin, Calvin, Tolkien, Chesterton, Nock, Tozer, Dabney, Bavinck, Wodehouse, Rushdoony, Bahnsen, Schaeffer, C. Van Til, H. Van Til, G. H. Clark, C. Dawson, H. Berman, R. Nash, C. G. Singer, R. Kipling, G. North, J. Edwards, S. Foote, F. Hayek, O. Guiness, J. Witte, M. Rothbard, Clyde Wilson, Mencken, Lasch, Postman, Gatto, T. Boston, Thomas Brooks, Terry Brooks, C. Hodge, J. Calhoun, Llyod-Jones, T. Sowell, A. McClaren, M. Muggeridge, C. F. H. Henry, F. Swarz, M. Henry, G. Marten, P. Schaff, T. S. Elliott, K. Van Hoozer, K. Gentry, etc. My passion is to write in such a way that the Lord Christ might be pleased. It is my hope that people will be challenged to reconsider what are considered the givens of the current culture. Your biggest help to me dear reader will be to often remind me that God is Sovereign and that all that is, is because it pleases him.

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