Big business vs. free enterprise

Ezra Klein tells about young conservative think-tanker Derek Khanna, who wrote at his bosses’ behest a paper criticizing the heavy-handed use of copyright law to inhibit competition.  Conservatives praised the paper, but then pushback from corporate funders caused the think tank to pull the paper and fire its author.

Khanna had unwittingly stumbled into a deep fissure in today’s Republican Party. The party sees itself as the champion of private enterprise. But which private enterprises? The ones that exist today? Or the ones that might exist tomorrow?

There’s a difference between being the party of free markets and the party of existing businesses. Excessively tough copyright law is good for big businesses with large legal departments but bad for new businesses that can’t afford a lawyer. And while Khanna, like many young conservative thinkers, believes in free markets, the Republican Party is heavily funded by big businesses. [Read more...]

Another conversation with my brother

In case you missed it on the George Bush & Aids post, my brother and I had another exchange, in the course of which I formulate what I consider a truly conservative economic ideology:

He says: OK. I (“Dr. Veith’s” younger brother who is still and always will be a Democrat) hereby give George Bush credit for saving millions of lives as a result of his AIDS initiative. Hey, that felt kind of good!

Now for you conservatives, isn’t it about time to give President Obama credit for the bailout of General Motors?

I say: Jimmy (my brother) @3: Thank you for that concession. That was all I wanted. But what you want from conservatives shows that liberals do not understand the many different ideologies that they lump together under that label. Most people on this blog, I daresay, are suspicious of BOTH big government AND big business.

We do believe in free markets. To return to your earlier illustration, if doctors and pharmaceutical companies and everyone else in the health care professions could not make a lot of money from their work, we soon would be back to what you decried in the primitive health care endured by Adam Smith back in 1776.

However, the really big companies hate free markets. They don’t want competition that brings prices down and increases supply. This is the lesson of Monopoly, at which I beat you so many times, the object of which is not prosperity and abundance for everybody, but one person putting everybody else out of business and getting–with the state-run socialist bank–ALL of everyone’s money.

And even worse for us crunchy-conservatives or front-porch conservatives or social conservatives or whatever you want to call us than big government and big business is when both of those behemoths combine together into something that so gargantuan that it crowds out everybody! This is why we don’t like Obama’s bailout of the big banks and his merger with General Motors. This is also why we don’t like Obama’s health care system, which is a marriage of big government with the big insurance companies.

Then he says:

To my big brother,”Dr. Veith”. Thanks for reminding me how often you beat me at Monopoly.

I agree with much of what you said in your comments at #26. I agree that the individual can be harmed by both BIG government and BIG business. My question for you is how can we check the powers of BIG business?

Historically, it has been done in two ways, with unions and government. With the decline of unions, government is the principal way we can check the powers of big business. When conservatives reject any government role in a “free market system” as a mater of ideology, they are left with nothing to check the powers of big business.

I don’t think that a corporation should be allowed to make money any way it pleases. Corporations are fictional “persons” created under the law. Corporations exist to serve the people, we do not exist to serve the corporation. It is perfectly appropriate that the government that created corporations can and should regulate its activites. For example, the government should prohibit companies from selling dangerous products to the public, and should protect the safety of the company employees. I acknowledge that rules and regulations imposed by government on business can be too burdensome and heavy handed. So the rules and regulations imposed by government should be smart and pragmatic. But I think it is insane to reject the role of government in a modern free market economy on purely ideological grounds.

This is why I support Obama’s health care, because I think it is perfectly appropriate for government to prohibit insurance companies from denying people coverage for a pre-existing condition. Allowing insurance companies to only insure healthy people is a business model that does not benefit the public and is not sustainable in the long run.

Now I don’t want to start another debate on the wisdom or lack of wisdom of Obama’s health care. Time will tell. My point is that we should not reject the power of government to regulate the health care insurance industry as a matter of principal.

Does this make me a soci@list? I don’t think so.

I repost these exchanges because my brother is actually very perceptive, liberal though he is, and because they demonstrate the lesson I have been trying to impose on you all, that it is possible to disagree without being disagreeable, to remain one big happy family through it all, and that it is possible to use discussions consisting of different opinions to come to actual insights.

Anyway, who is with me in this suspicion of big government and big business and, especially, their marriage with their hideous spawn?

And can anyone answer Jimmy?  What can limit both big government and big business?


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