“The State has not just fixed markets, but actively created them…”
That’s the claim of Dr. Mariana Mazzucato in “The Entrepreneurial State” published on the Internet by the organization known as Demos. Most of us do not know Demos, but it is a far-left front organization with a board including communists like Van Jones as active members.
Demos is partially funded by George Soros through the Open Society Institute. So it’s no surprise that Demos lobbies federal and state policymakers to “address the economic insecurity and inequality that characterize American society today;” promotes “ideas for reducing gaps in wealth, income and political influence;” and favors tax hikes for the wealthy.
The leftward turn of The Sun News and its parent company McClatchy Newspapers is evident by the constant stream of anti-conservative-Republican-tea-party cartoons it publishes. But the April 6 article by Llewellyn King trumpeting the propaganda started by Dr. Mazzucato compelled me to respond. Like the “global warming hoax,” which emanated from University of East Anglia and spread by Al Gore’s campaign of unsubstantiated claims, this “government as entrepreneur” hoax is based on unsubstantiated claims and faulty logic.
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Mr. Llewellyn’s piece was basically abridged from two sources written by Dr. Mazzucato, the Harvard Blog and The Globalist. The Harvard Blog and The Globalist repeat her claims unchallenged and are an attempt to spread a neo-fascist ideology that the state should direct commercial enterprise. Many of us probably do not know what neo-fascism is in today’s world. Most people also probably do not know the role the state (federal government) plays in different economic systems such as free enterprise, socialism, communism, and fascism.
Benito Mussolini talked of fascism’s purpose as destroying capitalism and socialism through a marriage of corporations with the state. We now seem to have crossed the rubicon from free enterprise into neo-fascism with the marriage of the federal government to GM and Chrysler, as well as the bank bailouts. We are seeing the same thing in the “green energy investments” of Solyndra, A123, Fisker, and GreenTech when the federal government picks the Innovators.
Mr. King and Dr. Muzzacato also claim that we the taxpayers, aka the government, were robbed by Google, Apple and many other technology companies. Mr. King writes, “And the providers of that money – we the taxpayers – get no dividend, no return on our investment, and, as with Apple until recently, no jobs when these grand American-invented technological products are manufactured in Asia. (Apple is making a small effort to make some products in America.).” I guess all the taxes paid by the thousands of employees and the corporations themselves don’t count in their view of government as venture capitalist.
In his extraordinary book “The Road to Serfdom,” Friedrich Hayek noted, “The power which a multiple millionaire, who may be my neighbour and perhaps my employer, has over me is very much less than that which the smallest functionaire possesses who wields the coercive power of the state, and on whose discretion it depends whether and how I am to be allowed to live or to work.”
I am with Hayek, not Dr. Mazzucato. The government rarely gets it right when it gives out money, and when it does, it does not get robbed by successful companies. My answer to Dr. Mazzucato is the state can neither fix nor create markets; it can only destroy value.
The writer lives in Myrtle Beach.