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Won’t Big Businesses Abuse Their Power in a Free Market?

in Communicating Liberty, Liberator Online Archives, Libertarian Answers on Issues by Mary Ruwart Comments are off

(From the Ask Dr. Ruwart section in Volume 19, No. 21 of the Liberator Online. Subscribe here!)

Big BusinessQUESTION: If you free big businesses from government regulations, how do you keep these same businesses from becoming an aristocracy and turning America into a feudal state?

MY SHORT ANSWER: In a libertarian society, you, the consumer, control businesses by voting to buy or not buy their products. You vote to keep them in business or shut them down. You eliminate the “bad guys” by purchasing only from the “good guys.”

In today’s society, government regulates some companies out of business, leaving a monopoly (like most local utility companies) or a cartel (like the banking industry). Limiting your choices limits your control.

Government doesn’t keep big business in check; government keeps big business big.

Business only has two ways to get big: by serving customers better than the competition or by getting Big Brother to regulate their competition out of business. Keeping government out of the marketplace keeps business in its true service role.

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LEARN MORE: Suggestions by Liberator Online editor James W. Harris for further reading on this topic:

* “Big Business and Big Government“ by Tim Carney, Cato Institute Policy Report, July/August 2006.

EXCERPT: “The history of big business is the history of big government. As the federal government has progressively become larger over the decades, every significant introduction of government regulation, taxation, and spending has been to the benefit of some big business. …big business and big government prosper from the perception that they are rivals instead of partners (in plunder). The history of big business is one of cooperation with big government. Most noteworthy expansions of government power are to the liking of, and at the request of, big business.”

* “The Only Way to Get Money Out of Politics“ by Sheldon Richman, Future of Freedom Foundation.

EXCERPT: “It’s a great myth that businesses, especially big prominent corporations, want less government intervention in the economy. On the contrary, they love government power because it provides things they can’t achieve in a freely competitive marketplace where force and fraud are barred. Corporations support and lobby for interventions that benefit themselves by hampering their competitors, both foreign and domestic. You often find companies asking for tariffs and other restrictions on imports that compete too effectively with their products. Agribusinesses welcome government (taxpayer) help in selling their products abroad; they also love subsidies, price supports, and acreage allotments. … In American history big companies were behind virtually ever advancement of the regulatory state.”


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Gallup Poll: Nearly 3 in 4 Americans Say “Big Government Is Our Greatest Threat”

in Liberator Online Archives by James W. Harris Comments are off

(From the Intellectual Ammunition section in Volume 19, No. 1 of the Liberator Online. Subscribe here!)

For nearly 50 years Gallup has polled the American public on this question: “In your opinion, which of the following will be the biggest threat to the country in the future — big business, big labor, or big government?”

In mid-December Gallup announced this year’s result: Fully 72 percent of Americans now say big government is a greater threat to the U.S. than either big business or big labor.

That’s an all-time record — and by a sizeable margin.

A majority of Americans have always chosen “big government” when asked this question. But the 72% choice of big government as the biggest threat is the largest ever, far surpassing the prior record of 65% in 1999 and 2000.

(For comparison, when the poll was first taken in 1965, only 35% of Americans thought big government was the greatest threat.)

This year just 21% named big business as the greatest threat, and only 5%, a record low, said big labor.

Further, the response is consistent across party lines. Gallup notes: “Each party group currently rates big government as the greatest threat to the country, including a record-high 92% of Republicans and 71% of independents, as well as 56% of Democrats.”

Concludes Gallup: “This suggests that government policies specific to the period, such as the Affordable Care Act — perhaps coupled with recent revelations of government spying tactics by former NSA contractor Edward Snowden — may be factors.

“Americans have consistently viewed big government as a greater threat to the United States than either big business or big labor, but never more than they do now. That may be partly a reaction to an administration that favors the use of government to solve problems. Also, the revelation of widespread government monitoring of U.S. Internet activity may be a factor in raising Americans’ concern about the government. …

“In the future, Americans likely will continue to view big government as the greatest threat of the three, partly because of Republicans’ reluctance to rely on government to solve problems, and because Democrats and independents are also inclined to view big government as a greater threat than big business or big labor.”