Explaining Fascism

20130923024635!Hitlermusso2_editThe English speaking world uses the word fascism. Seldom do those who use the word know what it means. Hitler was a fascist and he was belligerent. He was a number of bad things. Fascists are usually belligerent but fascist describes the way an economy functions. Crony capitalism is a popular term and means something close but not the same as fascism.

Leaders do no purposely become fascists, nor do they consider themselves as such. Prior to the advent of democracy, fascism had not evolved. Fascism grows out of democracy and destroys it.

The founding fathers innocently believed the biggest threat to democracy was that the masses would use democratic principles to take assets away from the rich. They were wrong. The poor and middle class do not have the intelligence or political instincts to use government to enrich themselves. True, there are programs for the poor but the rich who administer the programs gain more than the people the programs are designed to help.

Government serves only those with political power. As soon as the Revolutionary war ended, the government was used by anyone with enough political power to gain an economic advantage over all others. At first the process was not even noticeable.

As time goes on more and more people use government to rig markets and force citizens to buy products and services. With every passing day political power becomes more and more consolidated until a few folks at the top get almost all of the benefit of government. Criminals learn that with political power they can live above the law and commit crimes with impunity. In early days every appearance is that the economy is growing by leaps and bounds. It is but the number who benefit from the expansion gets smaller until the economy collapses.  Businesses which initially benefited from the fascist process discover that they have lost the political power they used to count on. In time the general population becomes like automatons with their opinions and spending managed by the media and politically elite. At this point the economy can no longer grow. Often a war starts or a rebellion occurs. This is the point the Unites States is at now.

Fascism is a symbiotic partnership between business and government. Fascists do not think of themselves as fascists and the public does not believe they are being cheated.

Fascism could be avoided if a country’s constitution made it illegal for business to use government as a tool. Our tradition of using the Supreme Court to decide the constitutionality of laws is the equivalent of having a perpetual constitutional convention. The supreme court is a political institution and renders political decisions that always represent the mindset of the group with the greatest political power. There is not much chance the Supreme Court is going do support attempts to rein in fascism. All of the political power is at the top.

 

 

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About Fantasy Free Economics

James Quillian independent scholar,free market economist,and teacher of natural law. Who is James Quillian? Certainly I am nobody special, Just a tireless academic and deep thinker. Besides that, I have broken the code with respect to economics and political science. Credentials? Nothing you would be impressed with. I am not a household name. It is hard to become famous writing that virtually no one in the country is genuinely not in touch with reality. But, if I did not do that, there would be no point in my broking the broken the code. If you read the blog, it is easy to see that there are just a few charts, no math and no quantitative analysis. That is not by accident. Given what I know, those items are completely useless. I do turn out to be highly adept at applying natural law. Natural law has predominance over any principles the social science comes up. By virtue of understanding natural law, I can debunk, in just a few sentences , any theory that calls for intervention by a government. My taking the time to understand the ins and outs of Keynes General Theory is about like expecting a chemistry student to completely grasp all that the alchemists of the middle ages thought they understood in efforts to turn base metals into goal. Keynesian theory clearly calls for complete objectivity. Government can only make political decisions. Keynesian techniques call for economic decisions. So, why go any further with that? Fantasy Free Economics is in a sense a lot like technical analysis. Technical analysis began with the premise that it was impossible to gain enough information studying fundamentals to gain a trading advantage. Study the behavior of investors instead. Unlike technical analysis, I don't use technical charts. What I understand are the incentives of different people and entities active in the economics arena. For example, there is no such thing as an incentive to serve with life in the aggregate. In the aggregate, only self interest applies. It is routinely assumed otherwise. That is highly unappealing. But, I am sorry. That is the way it is. I can accept that because I am genuinely in touch with reality. Step one in using Fantasy Free Economics is for me to understand just how little I really know. A highly credentialed economist may know 100 times what I do based on the standard dogma. Compare the knowledge each of us has compared to all there is to know and we both look like we know nothing at all. There is always more than we don't know than what we do know. I am humble enough to present myself on that basis. Why? That is the way it is. I am not bad at math. I have taught math. What I understand is when to use it and when to rely on something else. Math is useless in natural law so I don't use it. While others look at numbers, I am busy understanding the forces in nature that makes their numbers what they are. That gives me a clear advantage.

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