Capitalists for Corporatism

There is an odd argument from the political right. That is it seems odd to my political left perspective. The argument is intended to rationalize away regulatory capture by big biz. The basic claim is that only those who come from the corporate sector would have the knowledge and experience to effectively regulate corporations.

This is like arguing that only criminals should be hired as police and judges because they need to have firsthand experience of crime. Or like arguing only enemy combatants should be made into generals of the military they were fighting against because generals need to to have direct familiarity with the enemy. Or like arguing that only the working class should be hired as CEOs because they need to know how a business operates from the ground up (actually, that is a decent argument).

It’s hard to know how seriously to take the argument for big biz regulating itself. Political rhetoric rarely is ideologically principled and consistent, more often being conveniently self-serving. Still, for the sake of argument, I like to take such things at face value. Those making this argument don’t seem to take seriously the implications… or else they don’t notice… or don’t care.

What follows from this line of thought is that corporatism is the inevitable result of capitalism. It also indicates that cronyism is inherent to organizing society around capitalism. As Marxists predicted, capitalism if given free reign will always lead to oligopolies and monopolies through concentration of wealth and power. Regulatory capture, of course, will lead to corruption. There is no way of getting around this. So, if the argument is that regulatory capture is the only way regulation can happen, that puts corruption of government squarely within capitalism itself.

As many have argued, capitalism is far from being the same as free markets. Many anti-capitalists, Marx included, have supported free markets. In fact, the anti-capitalist argument for free markets is far stronger and more compelling. But if the reality of capitalism isn’t identical (or even much resembling) the rhetoric of capitalism, where does that leave us? Even the advocates of capitalism sometimes admit this, even if unintentionally.

So, what would an actual free market look like? How could a market be free without embodying, expressing, and defending the freedom of all people involved in and effected by the economic system? How could an economy and government controlled by big biz be free for anyone other than plutocrats? As always, whose freedom are we talking about?