The US is a Fascist Economy

March 6, 2012 1:44 PM ~  
Peter Schiff is an excellent economist who appears regularly on national news programs and was one of the very few people who predicted the housing collapse of 2007. He has written an amazing article titled "Why Buy the Cow?" detailing the level of control and ownership the United States government exerts over so-called "private" businesses. The main point of the article is that the United States is not a "free" country, despite what our national anthem and other such silly rituals might claim. Schiff brilliantly outlines the method in which the federal government has pulled an amazing trick that the Communists and the Socialists couldn't pull off: they've nationalized the profits of all companies without assuming any of the risks.
Back in the 19th Century, America really was a capitalist country. We had no corporate tax and no personal income tax. Shareholders got 100% of distributed corporate income. As a result of this structure, U.S. corporations grew rapidly and helped spark the fastest economic expansion the world had ever seen. But that was then, this is now.

Given the current numbers, even if our leaders were dyed-in-the-wool Marxists, what would be their motivation to nationalize Fortune 500 companies? If they already receive the lion’s share of profit distributions, what would be the point? Such a move risks upsetting the management structures and destroying the remaining profit motive. It would risk killing the goose that lays the golden egg. If government nationalized a company, it would also have to manage it. Does anyone think bureaucrats would make better decisions than private owners? What’s worse, if those decisions produced losses rather than profits, the government would have to absorb them. Under the current systems, the government gets the lion’s share of the profits, but private shareholders are stuck with 100% of the losses.

Why Buy the Cow? | Euro Pacific Capital.