Thursday, November 6, 2008

2.6 Monopolies and Corporations

2.6 Monopolies and Corporations

We defend the right of individuals to form corporations, cooperatives and other types of companies based on voluntary association. We seek to divest government of all functions that can be provided by non-governmental organizations or private individuals. We oppose government subsidies to business, labor, or any other special interest. Industries should be governed by free markets.

This is another affirmative statement of individual rights, specifically the rights of free association and private property. It also goes so far as to say that the government should get out of all services that can be provided by the free market.

We should really strongly consider the ramifications of such a plank. The presence of the government in any industry is almost characterized by monopoly, or nearly so. We all know the dangers of monopolies, and yet the government wishes you to believe it is somehow above abusing its power. All of this in the face of the history of abuses.

The government doesn't always directly manipulate the markets, sometimes it props up under performing industries with subsidies, and other times it suppresses industries with regulations and taxes. (I do want to note that I do not oppose all subsidies. The only exception is when the government adds some new burden of regulation, then it should be required to pay for those hardships, at least initially.)

The biggest problem with subsidies is that it opens the door to corruption. Yes, it distorts the markets as well, but the corruption is the most dangerous factor. Once the government begins handing out freebie goodies the questions will become, "Who gets them?" and "How much?" and those subsidies become tantamount to corporate welfare, or put in an even worse light, out right bribery. As industries become dependent upon subsidies, which they always will, then the industries will also become dependent upon those who supply them.

This will always have the effect of cementing the support of those who receive the handouts to those who do the handing out. The battle will then turn from "if" there should be a subsidy to "how much?" The various political groups will vye for the support of the dependent with ever increasing promises.

In all of this no one seems to notice or care where the money is coming from in the first place. It will most obviously come from taxes. Thus the government will be happy to steal from one group to pay for the support of another in ever increasing amounts. Those with any mathematical training will see the inductive nature of the problem and will conclude that, as with all economic systems, the demands will outpace the resources. But until such time as economic reality asserts itself the government will continue to victimize its own citizens with corporate welfare.

Those with any sense of history can confirm that this progression has been exactly what has happened.

The party of principle rejects such servitude for its citizens. You should too.

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