There are times when pure theory becomes too abstract for a student of the Austrian School, and concrete examples are needed to solidify understanding of the stupid greed or false philanthropy of policy makers who seek to “protect” the American people. Well, see the info-graphic above!
Here’s a graph showing just a taste of the overlap between Goldman Sachs corporate lobbyists/officials and federal government officials. Remember folks, these are the people writing regulations to reign in those “greedy capitalists”—i.e., their competitors.
Instead of competing to produce the best goods or services to win over consumers, they’re using the law in an unconstitutional manner to give themselves an artificial advantage and fat profits and slant the playing field for everyone else.
Under a truly free market, they would have to compete honestly. The naturally occurring phenomenon of the truly free market would require them to offer goods or services of the highest quality—with a correspondingly high price—or of the lowest price—with correspondingly low quality—or find a healthy balance between quality and low price that makes goods and services universally affordable and with good utility.
One economic insight to keep in mind this election cycle is that both Barack Obama and Mitt Romney are in the pockets of Goldman Sachs, both having received substantial donations from members of the Goldman Sachs executive board. Ron Paul is not in anyone’s pocket, disavows crony capitalism, and is Washington D.C.’s greatest advocate of the free market.
One of the problems in the common mindset is that people see crony capitalism and grievously mistake it for the free market. Clearly there is a difference; the former, wedded to interventionism and eventually socialism, causes society and economy to decay, while the latter enables them to thrive.
Graphic courtesy of AgainstCronyCapitalism.org.