Obama the Corporatist

Socialism vs Corporatism

by Ron Paul

Lately many have characterized this administration as socialist, or having strong socialist leanings. I differ with this characterization. This is not to say Mr. Obama believes in free-markets by any means. On the contrary, he has done and said much that demonstrates his fundamental misunderstanding and hostility towards the truly free market. But a closer, honest examination of his policies and actions in office reveals that, much like the previous administration, he is very much a corporatist. This in many ways can be more insidious and worse than being an outright socialist.

Socialism is a system where the government directly owns and manages businesses. Corporatism is a system where businesses are nominally in private hands, but are in fact controlled by the government. In a corporatist state, government officials often act in collusion with their favored business interests to design polices that give those interests a monopoly position, to the detriment of both competitors and consumers.

A careful examination of the policies pursued by the Obama administration and his allies in Congress shows that their agenda is corporatist. For example, the health care bill that recently passed does not establish a Canadian-style government-run single payer health care system. Instead, it relies on mandates forcing every American to purchase private health insurance or pay a fine. It also includes subsidies for low-income Americans and government-run health care “exchanges”. Contrary to the claims of the proponents of the health care bill, large insurance and pharmaceutical companies were enthusiastic supporters of many provisions of this legislation because they knew in the end their bottom lines would be enriched by Obamacare.

Similarly, Obama’s “cap-and-trade” legislation provides subsidies and specials privileges to large businesses that engage in “carbon trading.” This is why large corporations, such as General Electric support cap-and-trade.

To call the President a corporatist is not to soft-pedal criticism of his administration. It is merely a more accurate description of the President’s agenda.

When he is a called a socialist, the President and his defenders can easily deflect that charge by pointing out that the historical meaning of socialism is government ownership of industry; under the President’s policies, industry remains in nominally private hands. Using the more accurate term – corporatism – forces the President to defend his policies that increase government control of private industries and expand de facto subsidies to big businesses. This also promotes the understanding that though the current system may not be pure socialism, neither is it free-market since government controls the private sector through taxes, regulations, and subsidies, and has done so for decades.

Using precise terms can prevent future statists from successfully blaming the inevitable failure of their programs on the remnants of the free market that are still allowed to exist. We must not allow the disastrous results of corporatism to be ascribed incorrectly to free market capitalism or used as a justification for more government expansion. Most importantly, we must learn what freedom really is and educate others on how infringements on our economic liberties caused our economic woes in the first place. Government is the problem; it cannot be the solution.


  • SS


    • fred the protectionist

      That’s all the Libertarian regressive open-border/free-trade (exploit the cheap foreign labor till they drop) corporatists think about. Money money money. $$$$$$$$$$$$$

  • Obama is a puppet people. Bil Clinton was a puppet. The Bush Men were puppets. They are all blackmailed by snuff films. I would wager that Ron Paul has a snuff film hanging over his head as well. And when the time is right to eliminate him whom ever controls that snuff film will use it. Field McConnell USAF has personally handed a 300 page complaint about Uninterpretable auto Pilot installation into U S Commercial Jets illegally modified by Boeing while under control of the Law frim from Chicago during the move to Chicago.

  • georgia

    As far as I am concerned,Obama is not qualified to be president,he is merely a “BULLY” who is destroying the world.I change the channel when he speaks to the public because I do not like listening to liars.He is constantly poking his nose into other countries business and way of life causing more strife and hardships among their people.
    Ron Paul knows what it takes to bring these damages that Obama has created to a halt.Hopefully, “we the people” will ALL wake up before doom strikes everyone in its path.

    • Tim

      Bully? I thought he was just playing Santa Claus for all his special interests. He definitely did not spew the public money toward the greater good and interests of the general public. Right now he’s working on either causing NWO or WW3 with Zbiggy; Zbiggy wants WW3, he just hates Russians.

      2 years, 9 months to go.

  • JE

    Astonishing that someone as brilliant as Dr. Paul doesn’t know what Corporatism is. Corporatism is Fascism, which Mussolini defined as the merging of state and corporate power…anyway the notion that the US gov’t controls transnational corporations is bass ackwards…I guess it just goes to show no one is right 100% of time…

    That being said he still has much support…

    • BlackOp

      Keynesian Economics is Fascistic, fool, believing in a mixed economy is a merger of a State and Business.

      • fred the protectionist

        Austrian Economics is slaveristic.

        • SS

          How so?

        • fred the protectionist

          How so’istic?


    • Brian

      You’re right. It’s the corporations running the show, not D.C.

      • SS

        It is a team effort.

  • http://www.abeldanger.blogspot.com Field McConnell and David Hawkins have a research site that follows the Forensic Financial trail of the Global warming elitist plan to depopulate the earth as started by Maurice Strong and Kristin Marcy is a key player in this murder for hire using CO2 as the excuse for knocking off people by computer Algorithm created by Barack Obama.

  • mohr4health

    Obama is just the corrupt ‘puppet’ of the completely corrupt Corporate Puppet Masters who are doing everything in their power right now to assure themselves of absolute control over the honest citizens of this country and all other nations. EVEN WORSE than Obamacare, they are also responsible for giving power to the Muslims; not because they believe the religion, but because they see it as an accepted way to control and frighten people, and they know they can use Muslims to distract us from secret government agendas they will be (and are) implementing through their puppets. The Muslims make easy scapegoats for “corporate evils” used on the American people.

    Our government and the governments of other countries are turning a blind eye to the destruction that ‘radical’ Islam has planned for all non-believers (infidels) of their religion. Governments are calling it “political correctness” to allow them to intimidate and threaten non-believers, and yet, they do not hesitate to vilify Christianity. This double standard is not going unnoticed by the radical Muslims and they have been taking full advantage. If we don’t stop this vile group of men and women (see Trilateral Commission) now, they will take away more than our freedoms.

  • Alexandre Di Lolli

    Isn’t that a good thing for the Gov to “force” people to buy a healthcare insurance?! And let the insurance companies compete again each other to provide the best service at the best price! If this is Obama’s plan that does not sound to bad of a plan…as long as of course that the Gov is only policing and not providing health care.
    This said I love Ron Paul he is the perfect example of integrity and honesty!

    • Jeremiah

      Government defines what healthcare insurance is, and then requires you to buy from their “approved” companies. This stymies alternative health options and is fundamentally violative of people’s liberty. You are dealing with three core problems:

      1. Violating people’s liberty

      2. Taking property from people in an unlawful manner and giving it to others

      3. Limiting healthcare options to plans that maximize profits for drug companies and insurance companies while taking away holistic and natural alternatives

      • fred the protectionist

        This debate is moot. The real goal is to give people who can’t afford health insurance tax cuts to the point where it’s free to purchase health insurance; in effect socialized medicine.

        You neocon/Libertarians are in a losing battle.

        • fred the protectionist


          • longshotlouie

            That really means alot coming from you.

            Thx, Fled

        • BlackOp

          Fred you do know Protectionism is a philosophy of war. Favored by Fascist Republicans like Lincoln, using Mercantilism monetary policy at the time, an interventionist policy using tariffs, subsidies, basically Corporatism to the best of its time. Keynesianism is the next level of tyranny we have, more ways the Government can leave its mark on the economy. Lumping in Libertarians, a term you have no clue of, with National Socialists (Neo Cons) aka war hawks, like past Socialists in Wilson’s wing, you aren’t much different than the rest of the trash. Free Trade to them is a buzz word, it sounds good, like Free Market Capitalism, but the problem is like all names the very people stating these labels (like Kudlow) are actually claiming to be something they are not, typical Neo Cons are for managed trade, like you even though you won’t use linguistic tricky so much, and State Capitalism is Corporatism (mixed economies never stay mixed, they fail and the State uses justification of its own failure as an excuse to have even more control), true Free Market Capitalism is Laissez-Faire, and that involves a hands off monetary policy, freedom which you squirm at, because you are for your own little monopoly in your own little industry, no different than any other Corporate prick, whether labor, health-care, doesn’t matter the end result is tyranny all based on coercion. You don’t give a shit about better living conditions for people, you want them dependent slaves to the State. What choice is it to choose between to two forms of coercion? The direct State control over market, or the varying degree of State control over the market, in either case the customer is not the source of the authority and the more control the more a slave they really become.

        • fred the protectionist

          A) You don’t know what mercantilism is. Mercantilism is where a central government’s primary goal is collecting gold, land, silver, and other stuff.

          B) See, told you so, the Libertarians hate Lincoln and love the Confederacy. Libertarians want to bring slavery back.

          C) You should brush up on your Libertarian anti-Lincoln propaganda and rants, Lincoln’s suppose to be a COMMUNIST, not fascist, you dolt.

          D) Free Trade empowers the big international corporations, and you Libertarians are free traders, so it’s your fault.

          E) Libertarians are neocons. NEO-CON simply means New Conservative.

          F) “Boo hoo, managed trade” NAFTA did end Tariffs on half of US exports. Poor baby, NAFTA only destroyed 1 out of 3 manufacturing jobs, you neo-confederate slavers want to destroy 3 out of 3 manufacturing jobs. Poor babies lost the civil war, must be cruising for a bruising again.

          G) You ramble. Do you drool too?

  • Ron Paul’s description of Obama’s governing philosophy is correct. This is the classic definition of Fascism.

    Anyone interested in a professional’s analysis of the hideously misnamed healthcare hijacking law (“The Patient Protection and Affordable Care Act”) is invited to visit our web site where it can be downloaded for free.


  • Damn Yankee

    I disagree that government is running corporate entities, I believe Corporatism is running Government. The huge sums of money in elections are the problem.

    Corporate entities are not people. Does the Health Care Industry like Obamacare? Yes, I believe they helped to write it. What was to be a right of every American, has turned into a Mandate on every American to Pay Up to their Corporate Masters!

  • Rachel

    Totally agree with you Ron Paul.
    I have been watching Pres. Obama and he sadly says what the people want to hear and then gives the power over to the big Corporations.
    1. shortly after Obama because President, Monsanto (creates GMO seeds which cause tumors, cancers and genetic mutations) tried to pass a bill called “Food and Safety” but really it was going to get rid of their competiteion: organic farmers. We heard about it, called our Senators and stopped that bill from being passed. Shortly afterwards, Obama creates a sub-division under the FDA called “Food and Safety” and puts a Monsanto Lobbiest in charge!!!!
    His wife may be growing an organic garden but he is watching out for Monsanto.
    2. I heard Obama’s speech to the African people and I couldn’t believe my ears when I heard him say: the only thing you need is the right seeds. I thought, whys is the President of the USA, telling the African nation, they need seeds? A bit further in his speech, he gave 1.3-6 billion dollars to Africa so they can create a new commodity: they can grow food and send it all over the world!!! Excuse me but why are we giving another nation money when our own financial house is not in order? Also, who do you think is going to receive that money. Monsanto just did their quarterly report and they said: the sales were growing.
    3. Obama ran under greening America but he signed a bill to create more nuclear power plants!!!! Excuse me but nuclear waste can not be contained. They bury it in drums surrounded by very thick concrete walls. France is having a problem with their nuclear waste, leaking. So Obama is giving money to big corporations to build more nuclear power plants. That has to foresight. Also, recently in a speech after he and Russia decided to dis-arm over 2 thousand nuclear bombs (I think it was on both sides), he mentioned wonderful things were being done with the nuclear power and food!!!!!! The plan is the nuclear whatever in the bombs will help power the nuclear power plants but it is a scary thought, they could also be doing something to our food with nuclear energy????
    4. The market is rallying and the big corporations are doing pretty good, they have cut the fat and everytime, the dollar goes down, it is good for those big corporations that are internations so they can sell their goods to other countries. Example Cat which creates big machines to build and dig, is getting money from foreign countries and then lending that money to those who want to buy their machines. They are like Toyota, sell you car and they lend you the money and make more money off of you. THe dollar goes down, their goods are less expensive and developing countries order their goods. Everything the government does and is doing is good for Corporate America not for the US citizen.
    5. Watching the financial committe investigation, I found it very interesting, how a CEO of Goldman Sachs, moves on to be Secretary of Treasure and then moves on to Fannie Mae or Freddie Mac (don’t remember which company he was in). This revolving door of the big Corporations going into government and and such, basically we have had a corporate take over.
    Suggestion: a bill needs to be passed that Big Corporations can not give money to anyone running for office. I think the state or government should provide a depate on TV, paid for by the government and a copy of that can be on the Web also. Each person given room on the internet to lay out their points, heck, like the video we watched of Ron Paul would do. You don’t even have to pay for TV time.
    6. Obama said he was going to lower the amount of lobbiest in Washington, I haven’t seen any sign of it. Why is Goldman Sachs allowed to give 250,000.00 last month to our governmental officials just before looking to come to vote on financial reform?
    This gives their corporation: Goldman Sachs undue advantage.
    People I have talked to, say all the politicians need to be thrown out. Washington is too corrupt. I think we need to create some new playing rules so the people can take back their country because as it stands now, the big corporations are looking out for their interestes: the bottom line and they are like socialopaths: without any moral concousious.
    Keep fighting the good fight Ron Paul.

  • Steve Stacel

    It is time for ordinary Americans to take back our government. We need to fire every incumbent politician come November 4, 2010. These guys have catered to special interests and their own pocketbooks long enough. WE have the power. WE have stopped paying attention and allowed this corruption to become so perverse that it is everywhere in government. WE have the votes. The Tea Parties are on the right track. If we do not do this now there will be a civil war in this country within the next 5 years.

  • fred the protectionist

    So the corporatist calls someone a corporatist. Ho hum.

  • Ron Paul is absolutely refreshing and he cuts right through the crap that the media, congress and lobbyist put out there. I wish the Presidential Election were tomorrow. RON PAUL 2012!

    • Motion to impeach the Obama administration today!

  • 1111cb

    this is why I hate labels- trying to label Obama a Socialist is part of the distraction to avoid looking at the Corporate agendas in Washington. Obama is not in the Congress- our Congress is passing these laws and has been doing so through many presidents. We need to stay focused on the lawmakers and keep on them. All a president can do is suggest and veto.

    • fred the protectionist

      Ron Paul is a corporatist. Corporations just loooove cheap foreign labor.

  • F


    I think the health care system is complicated, and with a large population in a country moved by powerful money groups, like US is, what makes sense to me would be to simplify it. Rather than having too many options and twisted models that would open ways for money waste and trouble.

    So I wonder if the best reform would be that, make it simpler, evaluate effect and adjust the next needed reform.

    The need for reform is more obvious because of the general job situation, and the taxes needed to cover the overload in the care, otherwise most people happily would keep ignoring the situation.

    Just like the politicians and political status.

    Can anyone briefly explain the main difference between the current economical model and the austrian model? I think people now have to become economists, too.

  • Dr. Paul is right Obama is not a Socialist! He’s more of a Corporatist because he acts more like one of them CEO’s from the failed banks which will continue to fail our economy. The government doesn’t do a great job with corporations, instead it makes them more corrupt. That health care bill that passed is not about health care and it’s going to cost us the taxpayers a pretty penny with this government runned bill. Obama is just one big disappointment after another.

  • Citizen

    In the 1930’s FDR created similar Big Business + Big Government relationships. They are called CARTELS

    Take a look at the Blue Eagle of the NRA

    Obama is simply borrowing FDR’s playbook from the 1930’s
    But back then the Supreme Court reversed many of FDR’s big CARTEL deals as being restrictive of competition, but we may not be so lucky today.

    Obama is simply putting Big Labor Unions in control of as much of American businesses as he is able, Government Motors – UAW, ObamaCare- SEIU,
    Cap and Tax will put the Greenies in charge of our energy.

  • jim

    I’m so thankful for Ron Paul. He’s completely correct when he says ideas change countries. But if we don’t know the ideas we are fighting than we can make no progress. It’s easy to claim that Obama is a socialist because that’s what we always associate the democratic party with. But he’s not. He is most definitely a corporatist. Both will lead to tryanny in my opinion but it’s important to know which one Obama is. That way we can predict his mistakes. Ron Paul stated on Hardball he’s not a leader. I think he’s right in some respect. He certainly does not want to lead like Obama. Obama believes in a hands on approach of”HELPING US” manage are lives better FOR us. Ron Paul, if he does lead, leads by example. And if you believe in individual freedom isn’t that the only way to lead in what is suppose to be a free society. He’s like a lens, (at least for me), who has open my eyes and there is no going back. He’s untangled the deception of goverment for me and I will alwawys be thankful. I’m no longer depressed and suffocated by confusion created by politics. The answers he says are necessary seem to be the same ones I believed in as a child. In the 80’s we seem to preach about free markets and democracy all the time in the face of communism. I lost myself in rhetoric until Mr. Paul brought me back. He’s not looking for Utopia. Just what works best at this time of our development. I never understood how being pragmatic could be morally right until now.

  • Rylick

    A real astonishing view of the presidential actions. But I hope people will stop compare Obama with Hitler.

    The audioquality wasn’t that good.

  • Tom Jackson

    I wish the Republican party would make up it’s mind. You said the new health care bill didn’t contain the Canadian single payer clause. Is that a complaint or is that a compliment. The Republican spent countless using the Canadian run health care system as a reason not to have health care reform. What’s your message? I think the health care reform package is very flawed because, instead of staying there and negotiating for a better bill, you and others chose to leave and get involved in Tea party activities. So I believe that you are partially to blame for the bill we have received. Next time, spend the required time in D.C. and do what we, the tax payers, pay you to do.

    • Life & Liberty

      Complaint or compliment? That is a false choice. It’s obvious that he brings up the Canadian healthcare system as an illustration of the fact that Obama is not a socialist. A socialist would have tried to push through the public option. Ron Paul is – and always has been – one of the foremost opponents of both socialist AND corporatist healthcare, not for political/partisan reasons (as most other Republicans are) but for purely ideological reasons.

    • Joan

      People complained so much about a public option, that the Dems had to let it go. There’s no public option in this new health care bill. The Tea Party people are mostly retired people on Medicare, and they found out this health care bill took 500 billion out of Medicare to fund the new bill, that’s why they were all protesting, having all of those townhall meetings, saying “don’t mess with my Medicare.” They want to stop the bill to get the 500 billion back for Medicare. So, now, everyone who is against the bill want to vote all Republicans in, and the Repubs will refuse to fund the bill.

      You are right, the bill is a mess. Once the Dems couldn’t get the public option, they set it up for all systems of health care to fail so people will want universal health care. It takes old people’s health care from them, rations it, the bill puts millions of people on Medicaid, which most doctors don’t take, so they get almost nothing, plus the Medicaid bankrupts the states. It raises premiums for private insurance, has all kinds of different taxes. It’s a play to implode all systems of health care and make everyone so miserable that they will go for universal health care. The Dems want to put a 10 percent VAT tax through, then make everyone so unhappy with this bill that the VAT tax then pays for universal health care Never let a good crisis go to waste.