Dangerous Allies: Big Business and Big Government




Dangerous Allies: Big Business and Big Government

by Ron Paul

Last week ended with some promising news on finally stopping the oil spill in the Gulf of Mexico. Unfortunately the administration still seems to believe that shutting down working oil wells is a higher priority than effectively dealing with the broken one. They are again issuing a moratorium on offshore drilling while maintaining a de facto ban on new permits even for shallow water drilling which they previously stated would not be affected. The courts have twice declared this unconstitutional, over 70% of the people see this as unreasonable, yet the administration seems determined to simply end offshore drilling, at least for those producers that cannot afford to sit idle for any unknown period of time until the ban is lifted.

Whether or not this latest effort will hold up in court is yet to be seen. Sadly, many smaller oil producers in the Gulf see the writing on the wall and instead of waiting around and risking their livelihoods on the whims of American politicians and judges, they are leaving for friendlier business climates. What is happening to this country when the Republic of the Congo is better for business than the United States?

One big factor is regime uncertainty. Regime uncertainty is the opposite of the rule of law. It is the rule of the whims of the people who are in charge and what mood they are in on any particular day. It is usually associated with third world dictatorships and plays a major role in why some countries remain poor. When a business cannot predict whether a government will issue a permit, confiscate or nationalize their capital investments, tax them into bankruptcy or arbitrarily stall their operations, they tend to do business elsewhere. This type of government hostility is not conducive to wealth creation and it is tragic to see it chasing away businesses here when wee need the jobs and productivity more than ever.

When the rule of law is respected it provides business with some measure of predictability so they can plan and operate smoothly. When it is not respected there are just too many variables, too much risk of loss or waste. Of course disregard of the rule of law creates other problems, too. For the larger and better connected businesses it creates the opportunity of regulatory capture. If the government becomes too unpredictable, one business survival strategy is to become so involved in government and regulatory bodies that they effectively gain control over the very entities that are supposed to keep them in line. In other words, if you can’t beat the government, become the government.

A business that achieves regulatory capture is also able to write and implement laws and regulations that they can deal with but its competitors cannot. The eventual outcome is that companies use regulation to drive everyone else out of business until a monopoly is achieved, putting consumers at its mercy. Meanwhile, the people develop a false sense of security, assuming that the many regulatory bodies in place are protecting them. Without respect for the rule of law, however, those bodies and their regulations are more likely protecting and enabling big business at the expense of small business and the consumer. We see this not only with big oil, but big banking, big defense contractors, you name it. That is why especially in a crisis we should uphold the Constitution. It is the ultimate consumer protection from crony corporatism.



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152 Comments:

  1. BlastYoPantsOff

    I love Ron Paul, and I watch all of his video's on youtube. I see lots of comments of "why is this man not president?" The answer to that question is simple. The people do not elect the president, a small group of people do. These people are members of the electoral college. We can campaign for Ron Paul all we want in 2012, but the reality of it is, the electoral college, and the ownders of the media, do not want this man in power, and what they want, they get. End of story.

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  2. -Well that's your problem, you learn at a Marxist/Communist Dumbass School. Ignorant Idiot!

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  3. Actually, I learned this in college dumbass it's sad that I have to talk to someone of inferior intellegence.

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  4. I will grow up when your mother stops paying me allowance every week for my cock.

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  5. Interesting how when a ‘purely transparent’ ‘audit the fed’ bill is put on the table, this bill starts out with enough 'yays' for it to pass which very rapidly deteriorates so that it, at best, only gets in as a watered down version! It would appear that this occurs because many of those 'yays' realize that pure transparency of the federal reserve would reveal their own 'pieces of the pie' and after all.....Who would want a bill to pass that would implicate themselves???!!!!

    Rangel and Kerry are not isolated cases, but more like the ‘NORM’!!!! One thing to take note of….is that most of the time when a couple of politician’s corruption is brought out in the open like this, it’s due to someone (perhaps a newscaster, reporter, activist, etc getting too close to one of the (or several of the) ‘BIG BOYS’ ‘behind’ government!!!! The one’s with the real ‘behind the scenes power’!!!! The one’s ‘pulling the strings’ of the politicians (like Kerry, Rangel, and even Bush and Obama!!!!) 'Take note of the 'quickly appearing news items and their even quicker disappearance from the public eye'!!!!
    These are the ones with their mitts into where the federal reserve money disappears to the tune of trillions of dollars that no one is willing to impose enough transparency so that we can see where it went!!!! These are the ones behind the big ‘bribes’ and ‘favors’ issued to the lobbyists and politicians!!!!
    And it’s probably a sure thing that when someone like these politicians are brought out into the open in order to ‘set the public’s attention to other directions’ that those individuals involved (usually politicians) have been set up with a nice little ‘offshore account’ package for their troubles!!!!!
    Unless the federal reserve ‘books’ are brought out into the open, we will probably never know who these ‘BIG GUNS’ are that are really in charge of ‘this severely corrupt’….. ‘THE GREAT UNITED STATES GOVERNMENT ,INC’!!!!! And until this big CRIMINAL ORGANIZATION is ‘brought to its knees and shredded apart’ very little is really going to change in this country for the good of the US citizens!

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  6. - Grow up little boy. Fuken pervert!!

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  7. - ...by Free Market Capitalism. Idiot!

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  8. - ...by Free Market Capitalism. Idiot!

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  9. - You watch a couple of videos video and think you know something. You only embarass yourself, by your ignorance. Get a job, learn how to read and educate yourself! China is an oppressive, communist dictatorship financed by the International Bankers. Moa was responsible for killing at least 6 Million, to 9 million of its citizens.
    Before the Unconstitutional Federal Reserve System was created in 1913 the US was the richest, most powerful country in the world built ...

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  10. It's capitalism we have had for 30 or 40 years now and all it did was ruin our economy and get us into wars we never will win. You need to watch Capitalism: A Love Story because if you did you would shut up right about now because you would know everything I say is backed by facts not just words or thoughts.

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  11. wow dude what America has today isn't capitalism. In a republic there is meant to be a limit to what politicians can do, so regardless of how much a special interest gives to congress they cannot vote in ways which the constitution disallows. No matter how popular the vote is.

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  12. Sorry I thought you said socialism was good, and by saying that here I assumed sarcasm. :D

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  13. But please, continue explaining those conservative values that led us into this economic crisis... Enlighten me. And if when you say conservative, you intend to talk about George Bush... spare yourself the embarrassment and don't call him a conservative because that's blatantly wrong.

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  14. Because business in this country is not about progression, it's about milking each and every product for every single dime you can get out of it. In a real free market, supply and demand would determine the rate of growth in certain field.

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  15. in business. Anyone that considers the US a free market doesn't know anything about economics. If we lived in a real free market, the demand for higher quality products at cost effective pricing would bring manufacturing back to this country, at least partially. Take this for example, America, the super power of the world, we have the greatest technology. So tell me why China and Japan get access to new technology far before the States do?

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  16. Conservative values that led to the economic crash? I don't think so chief. Maybe if you consider pumping money into the system a CONSERVATIVE value, but I don't understand how someone could not see the blatant contradiction between a fiat money system and fiscal conservatism. You sir, are retarded. You can't seem to cite any of the things that capitalism did itself. You're only citing the repercussions of a bureaucracy that came about through government meddling in

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  17. It was a conservative values that led to the economic crash and yes the government.If you did not understand my VALUES let me tell you them I believe in socialism economicallly but not in a government sense that's why I propose a government ran democratically and a economy ran socially. People need to realize capitalism is the reason for the bail outs and your housing collapse. I am not an idiot it seems you must be the one whos lacking mental capacity. I am done talking to you.

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  18. and wah lah, there's the cause of the housing market crash. It has NOTHING to do with evil banks and faulty lending. It is the fault of the federal government... THE SAME PEOPLE YOU WANT TO GIVE MORE POWER. Wake up idiot, you can't rely on a select few to provide you with everything you need for the rest of your life. It's up to the private sector, something that in a free market, tends to be loaded with hard workers passionate about what they're doing.

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  19. to people who normally would not be able to afford them, but because of the new money being pumped into the system these banks feel richer. Eventually the money trickles down to the poorest people and it is no longer worth anything, then suddenly all of those people who bought houses can't afford to pay them because they were never actually ahead, they were only being cheated by a system that let them temporarily get ahead. Feeling richer, they made some bad decisions

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  20. In response to Dfens, Forest and Fred the P.
    I'm responding to their mantra, "defending the virtue of protectionism"

    WE libertarians read and UNDERSTAND the Constitution which states clearly that we have the RIGHT to Life, liberty and the Pursuit of Happiness.
    Fundamental to the exercise of our Liberty is that we are "Free to Choose" (Milton Friedman) which is the polar opposite of YOUR politically filtered choices.

    You three have repeatedly gone off on Libertarians as "Free Traitors", disparaging Libertarians as if we are unpatriotic. NOT SO!

    Ron Paul defends our personal Freedom of Choice, free from government coercions and special interest protectionism. Again, protectionism was, is and will always be, special privileges for politically favored groups in America industries, almost always benefiting the uber-rich at the expense of the middle class. Example: Farm tariffs that protect BIG Agribusiness while simultaneously squashing the small family farmers.

    Freedom means Freedom, not what is selectively permitted by a political regime seeking to "protect" their voting constituents selfish interests. Example: Unions want Card-Check to force foreign auto makers with plants here in America to unionize, to boost their Labor Monopoly. Unions are Protectionism in an industry level. They temporarily raise wages but ultimately push those jobs off shore and make Made In America products uncompetitive, resulting in massive unemployment, hello Flint, Detroit, and Pontiac Michigan!

    Union protectionism has failed world wide, Greece is an extraordinary example of union workers murdering bankers for not being able to keep their unsustainable entitlements going.

    Protectionism is Fantasy Island, its a fun place to visit, but its unsustainable FANTASY!!!
    Go Ron Paul... 2012

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    • fred the protectionist

      "WE libertarians read and UNDERSTAND the Constitution which states clearly that we have the RIGHT to Life, liberty and the Pursuit of Happiness."

      lol, oops, there's no delete button for Joo cause "right, liberty and the pursuit of happiness" is not in the Constitution it's in the Declaration of Independence.

      Nooberonomy.

      When a Libertarian says something is Constitutional or unConstitutional, take it with a grain of salt, they never read the thing. They're too busy reading fiction from former female Communist Jew turned Anarchist what's her name.

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