Corporate Socialism in America
Making America great again?
Introduction
Because of bad loans to government cronies, the Chinese banking system is eternally insolvent, but it is always rescued with new money created by the central bank. State-owned enterprises have used stimulus program funds, which were generated in large part by the central bank, to acquire private rivals.
In South America, corporate socialism is firmly rooted. Argentina may be the most devastating example. The government defaulted on its worldwide debts in 2002. It confiscated private pension funds in 2010 and reportedly funnelled some of them to private-sector allies to build homes. It changed central bank rules in 2012 to allow unfettered access to national reserve funds.
In Africa, Zimbabwe began to suffer from mass hunger in the 2000s. The main reason was that President Robert Mugabe promised land reform but instead granted his cronies control of the once-rich farms. During the same period, everything was price restricted, frequently below the cost of manufacturing. The Central Bank was printing infinite amounts of Zimbabwean dollars, causing prices to rise at a rate of 98% per day by 2008.
The type of political and economic system exhibited by these nations has strong origins in Mussolini’s “national socialism” in Italy…
