April 26, 2011

Conservative politics - big business capitalism = ?

With all this federal shutdown garbage and now the debt limit crisis and the completely unreasonable and unmoving positions of our elected representatives in our federal government, and in state governments across the country, I have been doing a lot of thinking. I totally agree with the whole fiscal conservatism thing, living beneath our means, paying off the debt, and limiting government... to a point. I completely disagree with subsidies of any kind, apart from the prebate in the FairTax. That should be the primary equalizer our government provides. Oh, and the prebate should be twice as big as in HR 25, and education should be fully taxed, and investment should be taxed on the public exchanges. Well, it should be taxed any time it is required to be registered with any public agency, whether publicly traded or not. I also think we should be transitioning away from Social Security and Medicare and the other social programs.

But, and here is where I part from the traditional cut and slash crowd, I think turning any of this over to big business is a huge mistake. Big companies should be automatically excluded from government contracts and prohibited from buying out smaller companies. Too big to fail is too big to be allowed. We need another round of trust busting, and it should hit any company with revenues over a billion, which means a lot of them. Ok, yeah, some companies by their natures will be bigger than that, only have1 product, and make tons on that 1 product. Great, they need to stick with that 1 product. Companies exist to provide service to the greater good, not for enriching the pockets of investors. I know, sounds really like I am off my rocker. I am all in favor of small business. With this caveat: Businesses of all levels need to be responsible contributors to society and provide solid and fair jobs for their employees. Wages should represent contributions of effort and skill. This whole executive pay garbage where they are making millions and tens of millions, and even sometimes hundreds of millions of dollars, all while paying employees less than subsistence level wages is criminal. And should be treated as such.

Businesses of all level should be highly regulated. Not burdened, but regulated in a way to keep the playing field level and make sure they are being good citizens. I feel that most of our current regulation is either ineffective, or misdirected. Corporations, well, all registered businesses for that matter, should have to regularly report on their activities. Maybe if they cannot show they are being good corporate citizens, then they could be entered into receivership, and possibly dissolved and the liquidated assets distributed to creditors and shareholders. The only question is, how do you keep the regulatory environment from being a bully, and limit interventions to only the truly problem companies?

So, as you can see, conservative politics minus big business capitalism equals ... what? I don't know. Maybe the regulation I dreamed up here as I typed is a bad idea. But, would it be any worse than becoming economic slaves to the Fortune 500?

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