The various philosophies of government and economics rule our daily lives by setting the parameters of what we can do with our lives. Governments regardless of their nature add barriers, some to protect the minority from a majority, others to protect the government from the people.

In Panama we have a republican form of government with a unicameral legislature that has recently been functioning as if it was a private corporation. This is a rapid change from the last government which might have been called a mix of two isms, socialism and capitalism. The two tend mix well because either without the other fails.

In the United States two isms, Socialism and Communism are swear words, this without understanding the sacred talisman, capitalism, unregulated, is not a god to be worshipped.

One definition of Socialism is “any of various economic and political theories advocating collective or governmental ownership and administration of the means of production and distribution of goods” Merriam Webster

In contrast Capitalism is “an economic system characterized by private or corporate ownership of capital goods, by investments that are determined by private decision, and by prices, production, and the distribution of goods that are determined mainly by competition in a free market” Merriam Webster

The role of government is each is very different, in Socialism government runs everything, in capitalism the government is an observer of the economy and the Free Market decides. History in the United States has taught that if government does not act to protect the rights of individuals in a capitalist system, people become one more commodity used by the engine of capitalism. There are few Americans alive today who remember why the labor union movement began and how significant it’s impact was on people who were not the capitalists but the workers who were often abused. But in reality, Capitalism with protection for workers has proven itself to be the best of economic systems.

Human nature creates a hierarchy and in theory those with the best skills who work hardest gain the most. In theory because many do succeed in that manner, some recent names would be Steve Jobs, Bill Gates and Warren Buffet. Others are born into capital and never need to learn to survive, ask GW Bush or Mitt Romney.

The free market is a good thing and it made the United States an economic power. But Capitalism and the free market no longer, mean the same thing. What we have in the United States now in the age of “too big to fail” is Corporatism. According to Merriam Webster “the organization of a society into industrial and professional corporations serving as organs of political representation and exercising control over persons and activities within their jurisdiction”.

In 2010 the SCOTUS decided “Citizens United v. Federal Election Commission, 558 U.S. 50 (2010), was a landmark United States Supreme Court case in which the Court held that the First Amendment prohibited the government from restricting independent political expenditures by corporations and unions.”
Wikipedia

This decision opened the floodgates of Superpacs, now the bigger the money the bigger the voice selling, lying and pandering political views. Corporations or other well heeled groups can shift opinions to protect their positions. Add this to the thousands of lobbyists in Washington who buy “honest” politicians and there is little question who runs the government; not the people. Political corruption is a free market concept.

One of the innate factors of capitalism and the free market is risk. Shareholders in a venture large or small stand to gain or lose based upon the decisions made by their managers. But what happens when there is only an upside, no risk?

“Too big to fail” is a colloquial term in describing certain financial institutions which are so large and so interconnected that their failure will be disastrous to the economy, and which therefore must be supported by government when they face difficulty. wikipedia

As US economy buckled in the last decade in part due to four Trillion dollars borrowed for wars in the Middle East. MarketWatch, in part due to bad economic decisions for decades. The US government stepped in to aid failing banks, auto manufacturers and for some reason AIG Insurance company. They were too big to fail so the taxpayer needed to save them. Many of the same politicians who scream against welfare for people had no problem bailing out mismanaged private companies saving their shareholders untold billions in losses.

This takes me to another quote from another source entirely, about another ism, Fascism a form of government that believed government should let business prosper.

“State intervention in economic production arises only when private initiative is lacking or insufficient, or when the political interests of the State are involved. This intervention may take the form of control, assistance or direct management. (pp. 135-136)”

Benito Mussolini, 1935, Fascism: Doctrine and Institutions, Rome: ‘Ardita’ Publishers.

Too big too fail is by Mussolini’s definition a component of a Fascist state, it is certainly not Free Market nor Capitalist in concept.

Although they are only isms, each does have a meaning and each effects those who live within the bounds of their respective governments. The transition is the United States has been swift from Free Market to mega corporate take over. People voting need to try a see though the lies and billions spent on selling politicians and effect change. When there was a voice, Ron Paul, screaming from the shadows, he was quickly silenced. Even if you disagree with his ideas, much of what he said was true and truth is not something wanted in an election year.

This final quote is one worth some reflection.

“When fascism comes to America, it will be wrapped in the flag and carrying a cross.” Sinclair Lewis.